An article in
World Oil magazine highlighting the findings of the 30th Oil and Gas survey shows that, in sharp contrast to the wider UK economy, North Sea operators and contractors are investing in people, R&D, technology and new markets to support continued growth.
The survey (conducted by Aberdeen and Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute and KPMG UK) reveals that around 45% of contractors have increased their investment spend in the UK Continental Shelf (UKCS) in the past 12 months, and that 47% have either started to use artificial intelligence or will do so in the next five years.
The survey highlights “a welcome trend” in R&D investment, with the highest proportion of firms since 2006/07 reporting an increase in spend and indicating that they anticipate further increases over the next few years.
That said, investment is not going into technology alone, as 40% of firms have increased their workforce in the last year, and a net balance of 52% expect to increase their spend in staff training between now and 2021.
Furthermore, contractors in the UKCS are reporting healthy results, with some 49% of firms working at or above optimum levels (the highest figure recorded in the survey since 2014), and 72% of firms forecasting an increase in profits in 2019.
Moray Barber, a partner at KPMG (
www.Kpmg.com/uk), said: “It is extremely welcome to see the results pointing to increased investment in staff training, developing new markets and maintenance of infrastructure; and while the report tells us that there has been investment pick-up, we need to be cognisant of the fact that this is starting from a relatively low base — from the challenging times the industry was facing four or five years ago.”