Contractors predict oil and gas industry will contribute to 68% of their activity by 2025, according to survey

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9th July 2021 10:50 - Oil and Gas

Contractors predict oil and gas industry will contribute to 68% of their activity by 2025: A survey by the Fraser of Allender Institute and KMPG has revealed that contractors predict the oil and gas industry could take up 68% of their time by 2025; a decrease from the current average of 86%.

The research polled 100 contractors and operators who employ tens-of-thousands of people in the UK.

The impact of the coronavirus pandemic has been felt in every industry, with the oil and gas industry being no exception. It is estimated that in the nine months from March to December 2020, 12,000 people lost their jobs in the industry.

Nearly two-fifths (39%) of participants said they are more confident about their industry compared to a year ago; in comparison to a third who said they are less confident and 78% who were less optimistic in December 2020.

When asked questions about their workforce, almost 50% of contractors said they intend to hire new talent over the next 12 months. Furthermore, the majority of firms (83%) stated they would consider a more flexible working policy.

Over the next three to five years, three-quarters of oil and gas supply chain firms stated they expect to move towards a more renewable source of energy, according to the poll. This could be because 37% of firms are expecting to evaluate their suppliers carbon footprint over the next year. However, 38% of participants indicated their commitment to becoming carbon neutral without setting a deadline; with a further 30% not having any carbon neutral goal.

John McColl, supply chain manager at OGUK, said: ‘It’s encouraging to see growing confidence in our supply chain particularly at a time when many people remain worried about their future.’

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