According to a recent industry report, improvements in oil and gas contractor confidence — both in the UK Continental Shelf (UKCS) and internationally — suggest that some businesses are seeing signs of recovery and are focused on the future.

The findings of the 26th Oil and Gas survey, conducted by Aberdeen & Grampian Chamber of Commerce (www.agcc.co.uk) in partnership with the Fraser of Allander Institute, show that 38% of the contractors surveyed are more confident about business on the UKCS , while just 10% are less confident.

This is a significant rise from historic lows six months ago, when only 12% of contractors were more confident and 47% were less confident.

However, 52% report no change in their outlook, indicating that significant challenges still remain in the market-place and that it is too early to say a recovery is being universally felt.

More than half of contractors and operators believe that the sector has already reached the bottom of the current cycle, while 26% consider it will do within the next year. When asked what position businesses expect to be in by 1 January 2018, 42% expect their business to be growing (up from the 16% last year who expected their business to be growing by 1 January 2017), while only 2% anticipate further decline.

James Bream, research and policy director at Aberdeen & Grampian Chamber of Commerce, said: “We’re seeing some signs of recovery for the industry, and the global outlook is certainly more positive than it was six months ago, but most companies are still suffering.

“It seems clear that many believe we won’t return to previous levels of activity and that perhaps we shouldn’t call this a downturn. This isn’t a ‘new norm’, it is just normal.”