he sight of some 14 rigs currently parked in the Cromarty Firth is an eloquent testimony to just how deep the protracted low price of oil has cut into the ordinary work life of the North Sea oil and gas sector. Bob Buskie, CEO of the Port of Cromarty Firth reckons that if the price of oil, which has been mostly creeping upwards since its sub-$30 low point, could just gain a few additional dollars, things could start to get interesting.

"Right now it is still largely a case of ‘batten down the hatches’. We think somewhere around $60 a barrel is the number that might put people back to work in the oil and gas sector. If we could get the price to stick at that level by mid-2017 there could be some renewed vigour in the market," he says.

However, Buskie points out that for the price to rise to that level OPEC would have to show an altogether uncharacteristic ability to hold to its production agreements. The recent agreement among OPEC members and some non-OPEC members to reduce production to combat the glut of oil on the market was a hopeful sign, since that kind of agreement has been conspicuous by its absence for a long while.

But OPEC members have a long history of pleasing themselves when faced with quota reductions.

"If it does look as if OPEC really is serious about production cuts, then we could see some of the rigs currently stacked in the Port going back out to work by or before the end of the year. We get parking fees from them being in the Port, but it is only £420 a day. In operation those rigs lease out at between £300,000 and £500,000 a day and generate far more revenue for the supply chain," he notes. "When the rigs are operational and they come in here for service and repair that generates a lot of jobs and at the moment those jobs are just not there," he comments.

Oil and gas continues to make up the bulk of the port’s revenues. "To support the industry and create more local jobs we have reduced our prices to make the Port a more attractive destination. We also have to look at diversifying. The cruise sector has seen a lot of growth, so that is very interesting for us. Cruise ship visits are up 35 per cent year on year, and with bigger ships the growth in passenger numbers is impressive. More passengers means more revenue for the Highland economy and is very welcome," he comments.

The Port is also setting out its stall to attract decommissioning work once decommissioning starts in earnest.

"We are applying for a decommissioning license, officially called a Pollution Prevention Control Permit, that will make us site-ready to handle any oil and gas related decommissioning," he comments. The Port’s role in decommissioning goes back to 1987 and 1993.

"Legislation has moved on a long way in the interim. These were the first semi-submersible rigs in the UK to be decommissioned and there were no permits required to do the job. We are working closely with the supply chain to get ourselves site ready to try to accommodate the opportunities out there, as and when they arise," he comments. "We aim to have a facility here that is fit for purpose and this will allow the supply chain to flourish, which will be great both for the port and for the economy of the Highlands," he comments.

Buskie is also looking forward to the start of the Beatrice 84-turbine offshore wind farm, scheduled to begin at the end of 2017.