The legacy of the Chancellor’s 2011 Budget lingers on in the oil and gas sector – despite increased optimism in the industry following the 2012 budget – according to the findings of the latest Aberdeen & Grampian Chamber of Commerce Oil and Gas Survey.
The continuing concerns focus particularly on perceptions in the industry as to the potential instability of the UK’s fiscal regime following last year’s unexpected announcements.
On a more positive note however, the survey also shows that the UK oil and gas sector continues to outperform the rest of the Scottish economy; the outlook remains positive with increased activity planned and demand for employment remaining strong. Within the UKCS optimism continued to recover although confidence in international markets is even higher.
Sponsored by law firm Bond Pearce and conducted by the Fraser of Allander Institute, the survey is the 16th in the series and draws on responses from oil and gas operators and contractors to identify trends in several areas including investment, exploration and employment. It also focussed on the competitiveness of the UKCS and business constraints. The findings are used to identify how the performance of this sector might impact on the wider business community.