March 2015

The Budget: A step in the right direction

"The Budget contained some good news for an oil and gas industry that’s been operating under dark clouds for several months."

“It didn’t exactly herald blue skies and sunshine, but it did suggest brighter days ahead.

“The double-digit cut in the supplementary charge and the reduction in the Petroleum Revenue Tax (from 50% to 35%), among other measures, injected some welcome positivity into things.

“So a fair bit of good news – but it would have been pleasing to hear even more. Certainly it signals that the Government is finally recognising the industry’s value to the country.

“We like to think we’re doing our bit to keep the industry on the path to sustainable growth. Our long-term commitment to innovation and quality is reaping rewards as customers look to companies with a track record of delivery and invention.

“We’re looking for opportunities to collaborate – a key element of the Wood Review into maximising economic recovery. In fact we’ve already done so, forging a partnership with Magma Global to create a unique well intervention solution. In addition, we’re looking to make a significant investment in our Peterhead facility.

“The current low oil prices – and the uncertainty over how long they will prevail – will continue to place a question mark against the sustainability agenda for the industry as a whole.

“The Budget measures, although steps in the right direction, don’t fix everything. They provide some fresh confidence and some breathing space, but the industry collectively needs to take the opportunity to shape, define and deliver a plan – a strategy – that secures a long-term future.

Mike Gaskin, commercial director