OGUK: Industry confidence rises

Business confidence has increased generally in the UK oil and gas industry but is down among producers, according to a survey by the trade group Oil & Gas UK.

Sept. 21, 2010

By OGJ editors
HOUSTON, Sept. 21 -- Business confidence has increased generally in the UK oil and gas industry but is down among producers, according to a survey by the trade group Oil & Gas UK.

The quarterly OGUK Index increased to 62 for May-July from 61 in the first quarter. The index measures industry confidence on a 100-point scale, with scores above 50 indicating a positive outlook and below, negative.

Among exploration and production companies, the index dropped from 65 in the first quarter to 58 in the second. The index for major companies dropped from 61 to 58. For independent producers, the index dropped from 68 to 58 after a large jump in the first quarter.

Contractors are more optimistic. The index for drilling and well services increased from 60 to 70 between the first and second quarters after a 10 point rise between fourth-quarter 2009 and the first quarter this year.

Other index increases among contractors: marine and subsea, 9 points; facilities engineering and operations and maintenance, 1 point; and support services, 4 points.