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New study will investigate long and short term impact of Covid-19 on oil and gas industry

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A study looking at the impact of coronavirus on the oil and gas sector will be carried out.

The Aberdeen and Grampian Chamber of Commerce-run survey will be taken by oil and gas firms, contractors and operators.

It will focus on a wide range of topics, including revenue, recruitment and business optimism alongside domestic and international activity.

The study will also try to create an accurate picture of how hard firms have been hit by Covid-19, including looking at furloughing of staff, redundancies and the cancellation of projects.

There will also be a focus on how the pandemic has influenced future business decisions and diversification plans.

The survey comes on the back of the most dramatic fall in oil prices in 30 years and the halving of gas prices, hitting firms only just starting to recover from one of “the most prolonged and severe downturns” in the sector’s history.

The chamber has been carrying out twice-yearly industry surveys in partnership with Fraser of Allander Institute and sponsored by KPMG, with the aim of monitoring trends since 1996.

Recent surveys have presented a positive outlook, with growing confidence and production levels across the oil and gas sector with a deep focus on innovation.

Last year’s autumn survey, which looked at staff recruitment and retention showed recruitment had been on the rise, with 54% of contractors increasing their total workforce, an increase on the 40% recorded in 2018.

Understanding what is driving the decision-making process for business leaders will provide vital intelligence for the industry”

Shane Taylor, research and policy manager at Aberdeen and Grampian Chamber of Commerce, said: “The coronavirus, the resulting drop in demand, the most dramatic fall in oil price in almost 30 years and the halving of gas prices has posed some very serious questions for an industry which was only just beginning to emerge from one of the most prolonged and severe downturns in its’ history.

“Understanding what is driving the decision-making process for business leaders will provide vital intelligence for the industry as a whole but previous surveys have also been used by both the Scottish and British Chambers of Commerce to develop a national energy policy so the results are sure to be closely scrutinised and we would encourage all energy firms to contribute and make their voice heard.”

We’ve witnessed greater innovation and a focus on ensuring businesses aren’t overstretching themselves and have the right manpower in the right areas”

Martin Findlay, senior partner at KPMG in Aberdeen, said: “2020 has been an overwhelmingly challenging year for the energy sector and the wider economy in Aberdeen, which relies so heavily on the success of oil and gas. We’ve often spoken about the resilience of the industry, and it’s clear that many businesses are demonstrating their determination to succeed throughout this latest crisis.

“We’ve witnessed greater innovation and a focus on ensuring businesses aren’t overstretching themselves and have the right manpower in the right areas. That said, there’s a growing sense of acceptance that the combination of oil price fluctuations and the coronavirus pandemic will lead to even more difficult decisions on headcount and strategic directions of travel in the coming months. Our latest survey should help to guide some of the industry’s thinking and help ensure such a vital sector’s voice is heard by political leaders.”

Companies interested in taking part should contact research@agcc.co.uk