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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (48939)	8/6/1999 7:55:00 AM
From: Tomas	Read Replies (1) \| Respond to of 95453

Boost for North Sea oil industry - "the service sector will have to wait until next year" BBC, August 6 The North Sea oil and gas industry has shown signs of recovery with new figures indicating revenues went up by a third in June. And on the back of price increases, North Sea output was at an all-time year-on-year high. The monthly Royal Bank of Scotland Oil and Gas Index shows there was a 34% increase in oil revenues in June. And annual average production levels for the year June 1998 to June 1999 were the highest yet. 'Stronger cashflow' The revenue boost is likely to mean increased investment, according to bank analyst Stephen Boyle. Oil prices averaged $15.91 a barrel in June, up 31% on last year, while prices were continuing to rise in July and early August, after breaching the $19 mark last month. And combined oil and gas revenues were up by 24%, receiving a double boost from the strong pound and rising oil prices. Mr Boyle, the bank's head of business economics, said prices were increasing because of production cuts internationally enforced by OPEC and its allies. "Higher prices are good news for the operators, bringing improved profits and stronger cashflow," he said. 'Investment to rise' "However, the service and supply sector will have to wait until next year to see any benefits flow through to the them. "For investment to happen, operators need confidence that prices will remain above certain critical levels. "If prices remain comfortably above 14 into the fourth quarter of this year - and they are expected to stay here - investment next year should be higher than in 1999," he added. Other figures in Friday's report show a 12% year-on-year increase in gas output and a 3.4% increase in oil production from June last year to the equivalent of 3.4 billion barrels of oil per day. news.bbc.co.uk