‘Negative’ outlook for Oil and Gas

Written by Tom Freeman on 26 November 2015 in News

OBR forecast the price of oil down 94 per cent

There is little confidence in the future of the oil and gas industry in Scotland, according to a new survey by Aberdeen Chamber of Commerce.

Four fifths of firms surveyed said they were less confident about their prospects than a year ago, compared with just 1 per cent who were more confident.

Eighty-five per cent think job losses in the sector will continue over the next year.


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Nearly half of contractors said they expected to be involved in more work in renewable energy.

Uisdean Vass of law firm Bond Dickinson said the industry could survive at $50 a barrel.

“This is probably the most negative survey we have ever had and while there is little to be positive about in the short term, there are some glimmers of hope.

"Over the next three years 28% of contractors expect their numbers of core staff to increase. Neither contractors nor operators see the North Sea disappearing,” he told the BBC.

Yesterday the OBR forecast the price of oil down 94 per cent to £130m, something Chancellor George Osborne mentioned in his Autumn Statement.

“Of course, if Scotland had voted for independence, they would have had their own Spending Review this autumn. With world oil prices falling, and revenues from the North Sea forecast by the OBR to be down 94 per cent, we would have seen catastrophic cuts to Scottish public services,” he said.

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