Well Services Report 2014

WELL SERVICESCONTRACTORSREPORT2014

9. TheFutureOutlook 9.1. DegreeofOptimism

In2013,well servicescontractors reportedhigh levelsofoptimism for the future.Despiteanexpected reduction in overall levelsof optimism in2014, there remains a significant degreeof confidence in the sector. This reflects the high levels of activity on theUKCS and thebelief that the WoodReview 6 will result inoperational improvements across thebasinandwill stimulatean increase in the currently lowexploration rates. The forecast decrease in optimism in 2014 is in linewith the trend identifiedwithin the quarterly Oil &Gas UK Business Sentiment Index . This is largely being driven by high operating costs on theUKCS, a shortage of skilled personnel and the current low levelsof explorationdrilling.

Figure11:DegreeofOptimismabout theFutureof theUKWell ServicesContractor Sector

Very Optimistic

Optimismfor theFuture

Optimistic

Neutral

AverageRating

Pessimistic

Very Pessimistic

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source:Oil &GasUK

2014Forecast

Source:Oil&GasUK

6 TheWoodReview ‘UKCSMaximisingEconomicRecovery: Final Report’ is available todownloadat www.woodreview.co.uk

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