Oil and gas industry maintains ‘stable and positive outlook’

Britain’s upstream oil and gas industry is maintaining a stable and positive outlook according to the business confidence index for the second quarter of 2012, published today by Oil & Gas UK.

The overall index reportedly rose from 64 to 65 on a 100-point scale — the highest since the series began almost four years ago. The modest increase in confidence was driven by the operators.

Meanwhile, the outlook of contractors — who have raised concerns over manpower, cost inflation and tightening margins — remains unchanged.

According to David Ripley, Oil & Gas UK’s supply chain director, operators are busy with a number of major projects, including several sanctioned last year, and appear to buoyed by the tax changes aimed at promoting investment that were announced following constructive dialogue between the government and industry.