NOF Energy believes 2017 will prove a turning point for the North East offshore oil and gas sector. The business development organisation for the oil, gas, nuclear and offshore renewables sector, says business will spring from a landmark agreement which caused the price of oil to finally rise.
Pivotal price rise
The Organization of the Petroleum Exporting Countries (OPEC) recently agreed to reduce production, which led to the price of oil rising to more than $50 per barrel with predictions it will remain above that level.
Positive messages from INEOS and Hurricane Energy, both North Sea oil and gas operators, suggest UK production will increase.
Enhanced efficiency in supply chain
Beyond these developments, NOF is also confident 2017 will be a better year thanks to supply chain efforts to reduce costs and become more flexible and efficient.
It believes these efficiency improvements place supply chain businesses in a good position as investors’ confidence in the North Sea oil and gas sector grows.
‘Boon for the industry’
George Rafferty, NOF Energy CEO, said: “2017 should bring a period of stability for the North Sea, which will lead to an improved picture and the emergence of new prospects later in the year.
The low oil price has driven some much needed transformational change within the industry and it’s also presented opportunities for some of the more entrepreneurial businesses across the supply chain.”
“The interest in the North Sea from new, smaller operators such as INEOS and Hurricane is also a boon for the industry and, with the support of an innovative and technology-led supply chain, can help the Government deliver on its Maximising Economic Recovery strategy for the UK Continental Shelf.”