It’s not all bad news in the oil and gas industry! Despite the recent downturn in the market, Nigg Energy Park has just completed a twenty million pound expansion. The ribbon was cut and the facility located in Inverness was opened by the Chief Executive of the Oil and Gas Authority.
Recently the oil and gas market has suffered and around sixty five thousand people have lost their jobs over the last two years. But, Global Energy Group’s new facility is a great sign that many of those organisations and people that still remain in the industry will make it through this turbulent time.
The expansion of the facility started back in March 2014. This was a time when the price of oil was more than double the price it is today. To put this into perspective for you, back then the price of a barrel of oil came in at one hundred and one united states dollars, today the same barrel would cost forty five united states dollars.
As the industry has seen such a huge drop, many organisations have cut spending and jobs in order to survive. But, Global Energy Group have spent over forty five million pounds on the expansion since the project began. The company have been questioned on whether this was a good idea and they have stated that they are confident that the company will be able to reach and attract both existing and new customers thanks to this expansion.
Vice Co-Chairman of Oil and Gas UK, Terry Savage explained why this expansion was a good idea. Terry explained that even though the industry is going through a hard time, expanding facilities is a great way for companies to invest. By modernising and improving its assets or by adding to its current capabilities, businesses can become more sustainable and get through any future economic challenges.
Leading industry body, Oil and Gas UK, have predicted that those employed in the oil and gas industry in the UK has seen a drop of around fifteen per cent. At the beginning of 2014, the industry had roughly four hundred and forty thousand employees and now the industry only employs around three hundred and seventy five thousand. Scotland has unfortunately suffered the most.
Roy MacGregor, GEG Chairman explained: “This additional £20m spend in these world-class facilities at Nigg Energy Park highlight to our customers, the provision of a 1000 meters deep-water quayside space, in addition to our dry dock facility with supporting fabrication facilities and lay down areas.”
The oil and gas industry is estimated to contribute close to forty billion pounds to the UK economy every single year. Despite the cuts and loses, 2015 is set to be the first year in a very long time that a production increase is going to take place.