OREANDA-NEWS. Contractors' confidence in the UK North Sea has reached its lowest level since business organisation the Aberdeen and Grampian Chamber of Commerce (AGCC) started its Oil and Gas Survey 11 years ago.

The survey comes at a time when oil prices have fallen to around $45/bl, from $65/bl in early summer this year, and from year-highs last year of more than $115/bl.

Just 1pc of contractors surveyed were more confident about their activities in the North Sea than they were a year ago, while 79pc were less confident. The net balance of -78pc is the lowest to date. Respondents were slightly more optimistic about international activity compared with the North Sea, although confidence in current activity internationally is still firmly in negative territory and has fallen to -38pc from -26pc. Survey respondents' confidence in the industry over the next year also declined, to -17pc from -14pc.

Around 78pc of contractors surveyed said they would definitely or possibly be more involved in decommissioning in the next 3-5 years, broadly unchanged from a year earlier. But the 33pc that said they would definitely be involved in decommissioning represents the highest proportion since the survey question was added in 2010.

Just under half of contractors are either definitely or possibly going to be more involved in renewables activity in the next 3-5 years, largely unchanged from the previous survey in June. Oil and gas firms are adopting a "wait and see" approach, AGCC said today, as many companies see the costs of gaining a market share in the industry as too great.

AGCC estimates there has been a 6pc fall in the UK oil and gas workforce from September 2014 to September this year. And the data collected led AGCC to expect a 1.8pc fall in employment during the next 12 months. Just 24pc of contractors were hiring in the last 12 months, another record low in the history of the survey.