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Oil & Gas Report Reflects Increase in Job Opportunities
According to a new report by the Oil and Gas Authority (OGA), years of intense cost cutting by the Oil & Gas industry have come to an end; good news for both clients and candidates within the industry.
The report said that last year total operating expenditure for the UK Continental Shelf (UKCS) was £6.9 billion. This was £120 million and 2% higher than the previous year, indicating the recent years of sharp cost reductions are over.
Looking forward, production is expected to rise in 2018 which, if true, will be the fifth consecutive year without a significant drop in Oil & Gas production.
Oil price recovering
The OGA say the stabilisation of the Unit Operating Cost (UOC) is a positive sign at a time when the oil price is recovering and operating costs are expected to increase. These indicators are expected to continue with predictions showing a small rise in UOC over the next two years.
Investments had previously dried up, particularly after oil prices fell in 2014, leading to the plugging of wells and dismantling of fields. Fast forward to today, and the worlds biggest Oil & Gas companies are under growing pressure to loosen the purse strings to replenish reserves, halt output declines and take advantage of a crude price rally after years of austerity.
Hedvig Ljungerud, OGA director of strategy, said: “This report shows the significant progress industry has made towards sustaining efficiencies and the operational cost base in the UKCS.
“With the significant upturn in the oil price it’s vitally important that industry does not revert back to inefficiencies or cost inflation.”
Drilling job opportunities starting to increase
First Recruitment Group’s Oil & Gas Business Manager, Mark Wallace said, “A steady improvement in the oil price coupled with an increase in exploration work has resulted in an improved demand for Drilling professionals particularly. In addition, a number of our clients are starting to invest in productivity increases in existing assets. This is positive news for candidates as we have an increase in job opportunities for discipline engineers, project controls staff and HSE and professionals specifically with experience in brownfield projects.”
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This article is based on a report by the OGA.
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