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Hope in The Pipeline for North Sea Oil and Gas firms

After years of turmoil, a new report shows there are signs of a slowdown in job losses in the North Sea oil and gas industry. The 25th Oil and Gas survey by the Fraser of Allander Institute for the Aberdeen & Grampian Chambers of Commerce found that two thirds (67 per cent) of all firms have reduced staff numbers in 2016.

 

But just under a third (29 per cent) believe that the sector has now reached the bottom of its current cycle. A further 36 per cent felt that it would bottom out within a year. A quarter expects the bottom of the cycle to occur within the next one to two years and 10 per cent felt that this would take more than two years.

 

Uisdean Vass, oil and gas partner at Bond Dickinson, said: “The green shoots of recovery may be beginning to push through. People are slightly more optimistic about the future for both the UKCS and the international oil industry, but the improvement is from a very low point. The industry has had to adapt and embrace change … and companies are emerging from the oil slump as far leaner operations that are more competitive on price and performance.”

 

There was further positive news for the oil industry recently with the Opec group of oil producing nations agreeing to cut output. If the countries involved stick to the agreement, it could help oil prices to rise and the oil and gas industry to recover.

 

Meanwhile, research conducted by the oil and gas recruitment specialists NES Global Talent has found that 63 per cent of oil and gas contractors believe the result of the US election will be positive for the industry.

 

Further, while companies taking part in the oil and gas survey don’t report many current problems in finding the right staff, a number of firms report that they foresee future recruitment problems with talented and qualified individuals leaving the industry altogether. If that is the case, that could well mean additional opportunities for contractors.

 

If you’re a contractor in the oil and gas sector and you’re keen to capitalise on these green shoots of recovery by securing a new role, please take a look at our jobs board.