Survey sees optimism in UK offshore industry

The business confidence of UK offshore independent oil and gas producers increased in the third quarter, while that of contractors fell, according to a survey.

By OGJ editors
HOUSTON, Nov. 17
-- The business confidence of UK offshore independent oil and gas producers increased in the third quarter, while that of contractors fell, according to a survey.

Confidence of major-company producers, says the trade group Oil & Gas UK, which conducts the survey, didn’t change between the second and third quarters of 2010. In general, the industry’s outlook remains positive, in contrast with last year’s third quarter, when it was neutral.

OGUK measures business confidence of the offshore industry with a 100-point index in which 50 is neutral and numbers above reflect a more positive outlook than those below. It calculates the index from a survey of nine questions about economic indicators.

Overall UK offshore industry confidence fell in the third quarter to 57 on the index from 62 in the second quarter.

The confidence index for independent producers increased to 61 from 58 and for majors remained at 58.

Confidence of service firms, which OGUK calls supply-chain companies, fell to 55 from 61 between the second and third quarters.

Indexes in the third quarter of 2009 were independent producers 67, major producers 57, and supply-chain companies 50. The weighted average overall industry index in last year’s third quarter was 50.

Questions in the survey address business confidence and optimism, business activity and levels, business revenue and sales, investment, operating and running costs, manpower and day rates, research and development spending, employment, and training.

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