Companies in the UK oil and gas industry are becoming more optimistic about the sector, according to Oil & Gas UK’s latest Business Sentiment Index (BSI).
Published Wednesday, the BSI for the second quarter of 2015 reveals that respondents returned a score of minus 27 on a -50/+50, which marked a four point increase from the minus 31 figure reported by the survey in the first quarter of the year. Oil & Gas UK’s BSI measures a number of economic indicators including business confidence, activity levels, business revenue, investment and employment.
Oonagh Werngren, Oil & Gas UK’s operations director, commented in an organization statement:
“While the overall index remains in negative territory for the fourth quarter in a row, this slight improvement in mood is the first upward movement we have seen since 1Q 2013. On one hand, a large number of companies are concerned about a further decline in activity, the challenge of managing costs and how these factors will impact employment. On the other hand, a few respondents have reported higher activity than in the first quarter which may be due to preparations for the annual summer maintenance programs when activity levels traditionally increase on the UK Continental Shelf.
“Another reason for the modest improvement in mood is that a number of companies have already put significant effort into tackling cost and improving efficiency and are beginning to see the impact of these efforts. While contractors cite uncertainty regarding future orders as a concern, they also highlight improvements in how their clients engage with them to identify cost-effective ways to address the current business climate. For small to medium enterprises the main issue is ensuring they are paid in a timely manner, a principle enshrined in the industry’s supply chain code of practice, a key tool for the industry to help ensure its cost base remains competitive.”