The industry is more positive about employment and the report notes that more than 300,000 people still work in and support the sector across the UK.

More than half of companies surveyed expect to take more workers this year.

The report comes just a day after French oil giant total announced up to 250 job cuts following last year’s acquisition of Maersk’s North Sea operations.

Graham Hollis, senior partner for Deloitte in Aberdeen, below.  For context, Deloitte is sponsor of Oil & Gas UK’s Aberdeen Breakfast Briefings in 2018.

He said: “Oil & Gas UK’s new Business Outlook is well timed following some uptick in the confidence of the UK’s oil and gas industry in recent months. 

“Reflecting this confidence, some of the Outlook’s key findings are encouraging, not least the increase in production forecast for 2018, and level of investment expected in the UKCS.  These clearly tie back to the efficiencies and improvements that have been put in place during the last few years. 

“However, some fundamental challenges remain, particularly the need for new, successful, exploration and maximising the potential of existing fields.  It is in these areas that all parts of the industry need to embrace transformative change – collaboration, innovation and new technology will all be critical to assuring the long term future of the UKCS.”