Back in April 2017 the price of crude oil fell by 50%, reducing many business and transportation costs; good news for oil importers and consumers but a falling oil price is bad news for oil exporters and those companies in the supply chain.
Across Europe falling oil prices are generally seen as positive but low oil prices reflect a weak global demand, reflecting weak global growth which is holding back consumer demand and business investment which could, ultimately, lead to deflation.
The worst news is for businesses working in the oil and gas supply chain who receive little or no support from the Government, or significant media attention like the recent crisis in the British steel industry. Many businesses are struggling to survive, such as Cordell Steel who sadly went into administration in March, later closing with the loss of hundreds of jobs in Teesside.
Newspaper reports suggested Cordell had already cut jobs when the falling oil price hit the confidence of some of its clients leading to further uncertainty over contracts.
The best way to predict the future is to engineer it
Strata believes the key to survival in the face of falling oil prices is diversification into other markets, something it was able to implement well ahead of the oil price drop. This has included diversification into the Nuclear sector where its specialist engineering skills combined with high standards of quality and safety are highly valued, as well as and forging new working relationships and partnerships across industry and academia.
Strata Technology is an approved Fit for Nuclear SME, a member of the Nuclear Industry Association and a signatory of the NDA Supply Chain Charter. Strata is accredited to Investors in People and ISO 17020:2012 standard and operates an approved Business Management System which integrates ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 standards.