Home / Blog

They think its oil over!


The last few months have led some to question the long term future of certain career paths in the Oil & Gas sector. What many don’t know is that the North Sea basin is one of the most expensive places to extract crude oil in the world.  Partly due to the technical challenges of extracting, and partly due to the cost of the very highly skilled and trained labour force. All this was sustainable with a high barrel price, but the drops in price and in production have led to many fields becoming unprofitable. Some operators are even selling fields in the hope of better returns from other sites globally. All of which is bad news for Scotland’s hard hit Oil & Gas industry.

After trading at around $120 a barrel just 18 months ago, the oil price has now tumbled dramatically to its lowest level in 12 years (it dropped to just over $28 a barrel on January 20th). Of course the oil price shall rise again; the only unanswered question is when? One recent report suggested that 96% of senior executives believe the oil and gas industry will recover to “peak” levels of profitability, with one-quarter of them expecting it to happen within three years. Many of our clients cite a barrel price of $60 as the magic number to trigger positive growth.

As consumers, we see the immediate impact of the falling oil barrel price at the petrol station when we fill up, and it is obviously good news for drivers in the short term, but it helps no one in the long run. The drop in price leads directly to a rise in operating costs, a fall in profits and a program of cost reduction. Or to put it simply, job losses.

Some reports claim that over 5,500 people have been directly impacted by the slump, and many of these would be considered to be high earners. With so many high earners entering the employment market we have seen the balance of power shift to employers, where we had a sellers’ market 2 years ago, it is well and truly a buyers’ market now.

As a result, competition becomes fiercer, and salary levels reduce as the need to work overrides previous monetary requirements. Another affect is that with so many high earners being directly affected, there will be less spending, which means less contribution to the broader economy, more relocating for work meaning a possible drop in house prices. So whilst we delight in a lower pump price, we would perhaps all be better off if we had to pay a little more.

Having said all that, amidst the gloom, there are some who are doing rather well from the downturn. One area of growth is in the field of asset management and integrity. Many firms are reluctant or unable to spend money on new plant & equipment; they have invested more in maintaining and prolonging the life of their existing asset base. We have seen an increase in the demand for experienced field service personnel, asset integrity professionals and maintenance professionals. For those considering a change in direction, they could do worse than looking in that direction.

So is it oil over? Not quite. It’s essentially a waiting game– a case of sitting tight and waiting patiently for the price to climb back up to where it needs to be. The jobs will then gradually return, but we should hope that when they do return, that we have learned the lessons from the last few years and adopt a more conservative approach to growth. 


Written by: Colin McKee, Director


GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AT THE LOWEST RATES AVAILABLE. OTHER FINANCIAL INSTRUMENTS SUCH AS MTN, CD, DLC, PB ARE ALSO AVAILABLE. I am direct to a provider who has recently issued banking instruments for a couple of my clients the provider is 100% check-able you can do your due diligence on them. I personally know the provider. Our instruments are only from triple 'a' rated banks and we issue from $1M to $5B . The provider is 100% verifiable. If you are genuinely seeking bank instruments. Contact me and i will furnish you with details. They deal with issuing of instruments such as Bank Guarantee and Standby letters of credit also Letters of credit. I only want serious buyers then i will put you in touch with the provider directly. - Bank Guarantee (BG) - Standby Letter of Credit (SBLC) - Direct Line of Credit (DLC) - Medium Term Note (MTN) - Letter of Credit (LC) I will be glad to share with you our working procedures. Contact :Robert Glen Email: Skype: BROKERS ARE WELCOME & 100% PROTECTED!!!
Posted on 2 May 2018 by Robert Glen
Project Funding and Banking Instrument Such As {(BG/SBLC/LC/DC/MTN)} for lease and purchase Sir I am a financial consultant and have a very good and reputable Provider of some bank instruments we can only deliver fresh cut cash backed lease bank instrument (BG/SBLC et al.) to you in accordance to our terms and condition. Our bank instruments can serves as collateral as the case may be, which will enable you get loans from your bank so as to embark on any projects such as Aviation, Agriculture, Petroleum, Mining, Telecommunication, Construction of Dams, Real estate, Bridges, Trading, Importing and exporting and Other Turnkey Project (s) etc. Also these instruments can be put in PPP, etc. Please do let me know of your willingness to proceed and I will email you our terms and condition upon request. Contact :Robert Glen Email: Skype: BROKERS ARE WELCOME & 100% PROTECTED!!!
Posted on 2 May 2018 by Robert Glen
Dear Buyer/ Buyer mandate We currently have Available FOB Rotterdam/Hosuton for JP54,D2, D6, JetA1 with good and workable procedure, whereby buyer will dip test in seller tank with proof of product. Kindly Contact us via ( for SCO as soon as possible, so we can move to the next step. Regards Anatoly Vyacheslav Email: skype:anatolyvyacheslavoil
Posted on 24 April 2018 by Anatoly Vyacheslav
RUSSIAN PETROLEUM PRODUCT AVAILABLE ON FOB AND CIF BASIS. We are an official Oil & Gas Trading Company / Mandate working with Russian Petroleum Refinery which deals on Russian Petroleum Product Service such as JP54, D2, D6, JA-1 with good and workable procedure.. We are expert in exportation of Russian Petroleum Product around the globe. Are you tired of time waste and fake seller or brokers? look no further contact us today for best and quality product available in seller's tank in Rotterdam. Maksim Yaroslav (Mr.) EMAIL: EMAIL: Skype: neftegazconsultant TEL: +7 9265036551
Posted on 29 March 2018 by Maksim Yaroslav
We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam only, serious buyer should contact or if you have serious buyers my seller is ready to close this deal fast contact us below:now base email us ( PRODUCT AVAILABLE IN ROTTERDAM/ CI DIP AND PAY IN SELLER EX-SHORE TANK. Russia D2 50,000-150,000 Metric Tons FOB Rotterdam Port. JP54 5000,000 Barrels per Month FOB Rotterdam. JA1 Jet Fuel 10,000,000 Barrels FOB Rotterdam. D6 Virgin Fuel Oil 800,000,000 Gallon FOB Rotterdam. E-mail: E: E: Best Regards (Mr.) Vladislav Yakov Skype: neftegazagent Thank You
Posted on 28 March 2018 by Vladislav Yakov

Post Comment