Well Services Contractors Report 2015

6. Operational Issues

1

Well services contractors were asked to provide an insight into the operational issues that they faced in 2014. All companies reported a reduced demand for their services, compared to 75 per cent reporting an increased demand in 2013. This reduction was especially pronounced in the final quarter of 2014. Sixty-seven per cent of companies reported difficulty in recruiting skilled staff and half reported a current shortage in skilled staff. Both these figures have reduced from 88 per cent in 2013, with companies commenting that the downturn will lead to more skilled personnel becoming available. Companies report that environmental and safety issues, as well as equipment shortages, are not creating operational constraints. Anticipated lower activity levels will cause a decline in equipment usage, leading to a reduction in equipment shortages. Increasing activity levels in oil and gas provinces other than the UK created a shortage of equipment and personnel for 17 per cent of companies in 2014 compared to 75 per cent the previous year, suggesting a global slow down of activity.

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Figure 6: Operational Issues

6

Is increasing activity outside the UK creating a shortage of equipment and personnel within your organisation?

83%

17%

Do you experience operational problems as a result of environmental constraints?

100%

7

Do safety requirements cause any detrimental operational issues?

100%

Do you suffer due to a low availability of equipment?

100%

8

Do you have difficulties recruiting skilled staff?

67%

33%

Do you have a current shortage of skilled staff?

50%

50%

9

Was there increased demand for your services in 2014 compared to 2013?

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2014 Yes 2013 Yes

2014 No 2013 No

Percentage Yes or No

Source: Oil & Gas UK

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