Industry Analysis & Industry Trends
For a number of years, declining reserves and falling production from the UK’s oil and gas fields have led to less oil and gas drilling, reducing demand for the industry’s services. UK sources of oil and natural gas are becoming scarcer, causing a drop in the exploration activity that the industry largely depends on. Falling oil prices since 2014 exacerbated the downturn in exploratory drilling. Overall, the maturity of North Sea oil reserves is a problem that is likely to damage the industry indefinitely.
Rigs operating on the UK continental shelf are involved in drilling exploration, appraisal and digging development wells. Although wells are drilled onshore, the main focus of drilling activity is offshore... purchase to read more
Industry Report - Starting a New Business Chapter
Substantial amounts of capital are required to establish operations providing oil and gas extraction support services. Firms need to invest heavily in large-scale equipment, such as offshore drilling rigs of various sizes.
Work tends to be won by firms offering not only a competitive price, but also having an established track record, making it difficult for new entrants to establish themselves. This is particularly true for contracts relating to ongoing well maintenance. The industry also has substantial working capital requirements. Firms need to be able to fund their activity until day-rate or progress payments (in the case of a lump-sum contract) are made. Non.. purchase to read more