Two-thirds of North Sea oil and gas industry operators have been forced to cancel projects because of the recent fall in oil price.
That is the stark finding in a report from the 22nd Oil and Gas Survey, conducted by Aberdeen and Grampian Chamber of Commerce in partnership with law firm Bond Dickinson.
It concluded that plunging oil prices have reduced confidence levels to an ‘all time low’ for companies that serve the oil and gas sector, some of which are Sheffield-based.
The report said contractors’ confidence in the UK Continental Shelf (UKCS) is at its lowest point since 2004. Only seven per cent of contractors are more confident about their UKCS activities than a year ago, compared to 76 per cent who are less confident. James Bream, research and policy director at Aberdeen and Grampian Chamber, said: “We are now experiencing our first ‘recession of confidence’.”