Oil and Gas UK (OGUK) has warned North Sea industry against complacency after a new report heralded the end of the downturn.
Deirdre Michie, OGUK chief executive, said the results of Aberdeen and Grampian Chamber of Commerce’s survey were “heartening” and that the upturn in merger and acquisition activity reflected increased optimism.
But Ms Michie warned the sector against resting on its laurels, saying: “We can’t be complacent as there are parts of the supply chain still finding it very tough.
“So that’s why we must maintain our focus on sustaining our efficiency improvements and making the North Sea as competitive as it can be. We must attract more fresh investment into the basin to drive new activity and ensure we can recover the billions of barrels of oil and gas it still holds.”
Paul de Leeuw, director of the Oil and Gas Institute at Robert Gordon University, said it was “helpful” to have another report which shows the situation is improving.
But Mr de Leeuw said the supply chain had to “broaden its spectrum” as low carbon targets highlight the need for oil and gas to “co-exist” with other types of energy.
Survey respondents said 82% of their business is focused on oil and gas, but they expect the figure to fall to 72% by 2025.
Chamber research and policy director James Bream said oil companies “may need to be more ambitious around diversification”.