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Contractors in the oil & gas sector remain confident

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The latest Oil & Gas Business Confidence Index has revealed that high levels of job opportunities for freelancers has continued into the second quarter of the year.

The key findings taken from the report based on the UK’s oil and gas sector, were that overall, the Oil & Gas UK index measured 65, which was an increase of one point from 64 in Q1 and the highest amount since the series began in 2008.

The confidence of the contractor sector remained at the same level as Q1 at 66, which was measured three months ago, and all four sub-sectors were well within the 60s range.

For example, facilities engineering, operations and maintenance rose from 63 to 66, and the marine and subsea sectors remained well up in the high 60s with 67 points.

David Ripley, Oil & Gas UK’s supply chain director, said: “The general confidence level is similar to the previous quarter with activity remaining high which is encouraging. Operators are busy with a number of major projects, including several sanctioned last year, and appear buoyed by the tax changes aiming to promote investment that were announced following constructive dialogue between the Government and industry.

Contractors continue to enjoy high activity levels fulfilling existing contract commitments in the UK as well as expanding the export of their services and products to clients around the globe. They have, however, become increasingly aware of the challenge of sourcing skilled personnel and equipment, for example drilling rigs, in a tight market, with operating and manpower costs rising and margins being squeezed.”

Please visit our Contractor News page for all other news. To discuss this story further visit our SJD Accountancy Blog.

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