Firms 'optimistic about future of Aberdeen as energy hub'

Oil and gas firms have huge faith in Aberdeen's ability to adapt and become a worldwide energy hub, according to a new survey.

Aberdeen and Grampian Chamber of Commerce (AGCC) reported that 90% of firms were optimistic about the city's long-term future.

The study said more than 70% of firms expected to make a profit this year.

It comes after a period of challenge for the sector in the wake of the global economic downturn.

The 30th Oil and Gas survey was carried out by the Fraser of Allander Institute.

The report said firms were set to invest more in research and development than at any time since 2007.

Shane Taylor, research and policy manager at AGCC, said: "Our survey paints a picture of an optimistic industry, investing to deliver the opportunity of a productive UKCS (The UK Continental Shelf) and a vibrant future for Aberdeen as an all energy hub.

"The levels of optimism reported in our survey are encouraging.

"But for those of us passionate about the future of the region, it's excellent to see an overwhelming majority of firms are optimistic about the long-term future of Aberdeen as not just Europe's oil and gas capital, but as an all-energy hub which will be relevant long after the UKCS comes to the end of its operational phase."

In March, a report said a total of £200bn needed to be spent by exploration and production companies to fully exploit the UK oil and gas sector's remaining potential.

Industry body Oil and Gas UK (OGUK) said its Business Outlook Report 2019 showed the need for a focus on cost and efficiencies was the "new reality".

The study revealed production had increased by 20% over the past five years, following 14 years of decline.

The report found 62% of contractor companies had an improved outlook for 2019, but that many areas of the supply chain were still facing challenges.