UK Oil and Gas well services contractors report steady but slowing demand in 2014
05 June 2015
Demand for the expertise of well services contractors operating in UK waters remained steady according to figures in the Oil & Gas UK Well Services Contractors Report published on June 3 which looks back at how the sector fared in 2014. These companies, which support the UK offshore oil and gas industry throughout the life cycle of well operations, reported gross revenue of £1.97 billion.
This is an increase of 1% on the 2013 figure. The information contained in the 2015 report represents around 85% of well services contractors.
Oonagh Werngren, Oil & Gas UK’s operations director, said: “Throughout the first half of 2014, it was clear that well services contractors continued to benefit from the high level of investment in the UK continental shelf (UKCS) which occurred in 2013. In the latter half of 2014, however, a number of companies reported a slow-down in the demand for their services and expect this trend to continue in 2015, with respondents predicting that the oil price fall will have a negative impact on drilling activity.”
The report confirms that along with the rest of the UK oil and gas industry, well services contractors face a challenging business environment and therefore recruited fewer staff during 2014. However, the sector highlighted its intention to encourage broader commitment to shared industry tools including standard contracts which would contribute to the industry’s cost and efficiency efforts and help both operators and supply chain companies become more competitive.
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