Business Electricity Meter Types
There is a wide range of electricity meters that your business may have installed, depending on your electrici...Read More
Scottish Government tax earnings from North Sea oil and gas dropped 75% to a record low in 1Q15, according to the latest figures. What does this mean for you?
Much of the current pain is due to low oil prices, which “will continue to have a material bearing on economic conditions in Scotland”, in the words of the latest State of the Economy report. As doubts over the Chinese economy have contributed to global economic fears, oil prices (which are closely related to gas prices) have slipped to around $40 a barrel.
For Scotland, low prices have both positive and negative impacts, as the report explains: “lower oil prices boost consumption as well as production in energy-intensive sectors, but squeeze investment and profitability in the oil and gas sector and the wider supply chain.”
Despite this attempt at a positive spin and the growing contribution of renewable energy, the importance of North Sea oil and gas to the Scottish economy (more pronounced if the country had voted to become independent) means the country will suffer in the short term unless commercial gas prices rebound.
A big part of the problem is the dwindling output of ageing North Sea oil and gas fields, squeezing earnings of business gas suppliers, just as expensive infrastructure reaches the end of its life.
Cost cutting, consolidation within the industry and a more collaborative approach championed by the new industry regulator, the Oil and Gas Authority (OGA), is helping. Indeed, a “particularly strong performance in the construction sector underpinned by infrastructure investment” is noted in the Government report.
That may already be bearing fruit: the report notes that the ONS Index of Production reports that UK oil and gas production in 2Q15 was up by 9% year-on-year: “Several factors were behind this, including production in some fields coming back online after closure for maintenance, and the high levels of North Sea investment in recent years resulting in new fields coming on-stream or ramping up production.”
Yet, as the Scottish Government themselves admit, “at this stage any specific impacts are difficult to quantify and will depend on this trend being maintained”.
Business gas prices could be on a downward trend. But, with so much instability – including in important gas producing areas such as Russia and the Middle East – prices could quickly increase. Now is the time to lock in current low prices or at the very least see if a better deal is available.
This doesn’t have to be onerous: just 20 minutes is enough for us to quickly compare business gas suppliers and switch you to a new deal (with us taking care of the paperwork). Give us a call on 0330 0100 251 (or request a call back using our form).
Find out more about business gas at our dedicated page.
"Fantastic! Very happy with the service received Would definitely recommend"This review was posted by Room 305 on the 06th of December 2017
I've used Switch My Business for a few …
"I've used Switch My Business for a few years because they literally do everything for you with no fuss. Mark Weeks was incredibly helpful, friendly and understood how busy I was. He explained everything simply, clearly and found rates that matched my needs perfectly (needed a 0 fee standing rate gas supply). He prepared all the paperwork so all I had to do was print, sign and scan. Highly recommended!"This review was posted by Jay Grocott on the 06th of December 2017
Mark Weeks is very informative of the …
"Mark Weeks is very informative of the current market and helped us change our utility provider effortlessly on an attractive contract"This review was posted by Alex Slee on the 05th of December 2017
"It was a seamless switch and Mark Weeks was extremely helpful and knowledgeable. I will be using SMB again on the next renewal date."This review was posted by Marc Hesford on the 05th of December 2017
Mark Weeks provided quotations for my …
"Mark Weeks provided quotations for my search for alternative electricity supplier which were competitive though not significantly better than our current supplier. Very useful however."This review was posted by john barrus on the 05th of December 2017