Survey of oil industry chiefs shows confidence in North Sea doubling in one year

February 3, 2018

By John Robertson - Scotland

Reported in Oil & Gas People, on 1st February 2018, a survey of more than 800 executives found 63% confident of growth in 2018 compared with only 32% last year. According to the report:

‘A new optimism is now emerging, driven from a common understanding that cost levels are under control and operators can make reasonable margins from an oil price that is expected to stay lower for much longer.’

I presume they meant ‘higher’ not ‘lower’ and by ‘reasonable margins’, they meant ‘healthy margins’ with crude selling at $70pb and costing only $12-15pb to extract. Given the many reports of increased and stable prices along with major discoveries already reported here, I’m surprised the number expressing confidence was not higher. See these:

Scottish oil price rises are unstoppable as hedge funds pile in to invest and put ‘the oil crash behind us.’ Also, Sterling’s surge is being fuelled by oil, not a Brexit bounce .

As profits double will Royal Dutch Shell start paying taxes for Scottish oil again?


Is a third forecast that Scotland’s oil will hit $100 per barrel again, a sure sign?

I suppose industry chiefs are not going to want to appear too bullish in case we start thinking we should be taxing them more.

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