The chief executive of helicopter operator Bristow has said the oil market will remain “gradual” for years to come.
Bristow has released a video of the President and CEO Johnathan Baliff, who said the firm has flown 10,000 more hours this year than in 2017 due to a rise in oil price.
However, he said many firms are still operating at $50 oil prices, rather than the higher value of crude we have today.
Mr Baliff expects activity to increase slowly over the coming years.
“Most of our clients are operating today as if the oil price was closer to $50, as opposed to $80 a barrel, which means that most of their planning has been devoted to moving monies onshore where their cost structures are at their lowest.
“So much of the offshore work that’s getting done today is still being done in areas where the cost structure is very low for them.
“However, the longer oil stays in the 70 to 80 dollar range, the more we’re starting to see our flight hours go up in the regions.
“It’s early days yet, but in FY (fiscal year) 18, we flew 10,000 more hours than we did in FY 17.
“It’s gradual, it’s not all of a sudden. We’re going to face this gradual market, which is both short-cycle in nature, very dynamic and local for a few more years to come.”