Allister Langlands

“Companies are pulling back on their spending. We will see reduced spending in 2009, of about 10 to 15 per cent. Majors, like BP and Shell, will hold their capital expenditure at 2008 prices.”

“Fifty-five per cent of Wood Group’s sales come from continuing operations, wells already in production. The remaining 45 per cent of its turnover comes from capital spending projects”

“£65m acquisition of IMV in 2007”

“Capital spending is usually based on prices of around $60 to $65 a barrel.”

“In 1988 the business was 95 per cent based in the North Sea, but now, after a number of US and other acquisitions, 80 per cent of its sales come from abroad.”

“carrying only $250m of debt and renewing its $950m bank facilities in March.”

“No one based their spending on an oil price of $147.”

“oil price of $147 actually came and went pretty quickly.”

“An oil price of over $60 is good for the industry as it allows room for exploration.”