OIL and gas firms, operators and contractors are being asked for their views on how Covid-19 has affected the industry.
The Aberdeen & Grampian Chamber of Commerce survey will focus on a number of topics including business optimism, revenue, recruitment and domestic and international activity.
The study will also seek to capture an accurate picture of how hard firms have been hit by the Coronavirus, from furloughing, redundancies and project cancellations to how the impact of CV-19 may influence their future decisions, such as the potential acceleration of diversification plans.
The biannual survey, which is the longest running industry survey in the UK, is conducted in partnership with the Fraser of Allander Institute and sponsored by KPMG.
It has monitored trends in the industry since its inception in 1996, looking at business optimism and activity both in the UK Continental Shelf and beyond.
Recent surveys have, overall, painted a positive picture for the oil and gas sector with growing confidence and production levels driven by a deep sense of resilience and an increasing focus on innovation.
The autumn survey also historically looks at staff recruitment and retention. Recruitment had been on the rise with last autumn’s survey showing that 54% of contractors had increased their total workforce in 2019 (compared to 40% in 2018) and 43% of contractors were reporting an increase in the value of production-related activity with more than half expecting the value of work to continue to increase.
Shane Taylor, Aberdeen & Grampian Chamber of Commerce research and policy manager, said: “The coronavirus, the resulting drop in demand, the most dramatic fall in oil price in almost 30 years and the halving of gas prices has posed some very serious questions for an industry which was only just beginning to emerge from one of the most prolonged and severe downturns in its’ history.
“Understanding what is driving the decision-making process for business leaders will provide vital intelligence for the industry as a whole but previous surveys have also been used by both the Scottish and British Chambers of Commerce to develop a national energy policy so the results are sure to be closely scrutinised and we would encourage all energy firms to contribute and make their voice heard.”
Martin Findlay, senior partner at KPMG in Aberdeen, said: “2020 has been an overwhelmingly challenging year for the energy sector and the wider economy in Aberdeen, which relies so heavily on the success of oil and gas.
We’ve often spoken about the resilience of the industry, and it’s clear that many businesses are demonstrating their determination to succeed throughout this latest crisis.
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“We’ve witnessed greater innovation and a focus on ensuring businesses aren’t overstretching themselves and have the right manpower in the right areas. That said, there’s a growing sense of acceptance that the combination of oil price fluctuations and the coronavirus pandemic will lead to even more difficult decisions on headcount and strategic directions of travel in the coming months. Our latest survey should help to guide some of the industry’s thinking and help ensure such a vital sector’s voice is heard by political leaders.”
The results will be published in November.
