The confidence of the industry keeps increasing | Rigzone

The confidence of the industry has further increased, according to a new report released Tuesday by the technical advisor of the oil and gas sector, DNV GL.

The confidence of the industry has further increased, according to a new report released Tuesday by the technical advisor of the oil and gas sector, DNV GL.

The company's latest annual report, which surveyed nearly 800 industry professionals and executives, revealed that overall industry confidence was 76 percent, up from 63 percent last year, 32 percent in 2017, and 30% in 2016.

According to the report, 70% of senior oil and gas professionals are looking to maintain or increase their capital expenditures this year. This represents an increase from 66% in 2018 and 39% in 2017. More than a third (34%) plan to increase their workforce in 2019, compared with 20% last year and 10%. is four years old.

DNV GL's latest report also stated that companies "could soften their costs" in 2019. Twenty-one percent of respondents said cost reduction would be a top priority in 2019, which represents a drop from 31% in 2018. 41% in 2016.

"The global oil and gas industry is approaching 2019 with a renewed sense of optimism and a heightened sense of resilience," said Liv A. Hovem, CEO of DNV GL – Oil & Gas, in a company release .

"Despite the increased volatility of oil prices in recent months, our research shows that the sector looks confident in its ability to better deal with market instability and lower long-term oil and gas prices." . For the most part, industry leaders now seem convinced that growth can be achieved after several difficult years, "added Hovem.

"If optimism and expectations for increased spending are to be welcomed, there will also be new challenges for the sector this year. The determination of the sector to maintain the efficiency established during the recent market downturn will be tested as the sector shifts its attention to cost control and signs of inflation in the supply chain. supply and labor shortage will emerge, "continued Hovem.

Forty-one percent of survey respondents said they experienced cost inflation among their suppliers in 2018, reaching more than 50% in the Middle East and North Africa, as well as in Asia-Pacific. Skills shortages were one of the main concerns of survey respondents among the key barriers to growth in 2019.

DNV GL's latest research was conducted in late October and early November 2018. Respondents were from across the oil and gas value chain, including listed companies. stock market and private companies. They represent a range of functions within the industry, ranging from senior executives to experienced engineers.

Generated by readers, the comments herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial control. Off-topic, inappropriate or insulting comments will be removed.