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Amid its faded granite glamour, Aberdeen feels the sharp chill of tumbling oil prices Aberdeen feels the sharp chill of tumbling oil prices
(6 days later)
On Union Street, Aberdeen rises to meet you, grey in all its granite rectitude. But two years ago its citizens basked in the glory of an unexpected accolade, when it was named one of the three happiest places to live in the UK.On Union Street, Aberdeen rises to meet you, grey in all its granite rectitude. But two years ago its citizens basked in the glory of an unexpected accolade, when it was named one of the three happiest places to live in the UK.
It’s not that Aberdonians are regarded as joyless people; it’s simply that happiness and joie de vivre are not attributes most commonly associated with the place. It’s sturdy, robust and upstanding certainly, but gaiety and a carefree attitude might once have been considered too frivolous in this place of serious money and stony facades.It’s not that Aberdonians are regarded as joyless people; it’s simply that happiness and joie de vivre are not attributes most commonly associated with the place. It’s sturdy, robust and upstanding certainly, but gaiety and a carefree attitude might once have been considered too frivolous in this place of serious money and stony facades.
You didn’t have to look far to see the source of the locals’ happiness: an unemployment rate of 1%, two fine universities and oil money – oodles and oodles of it. Aberdeen, it seemed back then, was recession-proof, having sailed through the credit crunch and subsequent recession of 2008 untouched by the storms and upheavals that had buffeted the rest of western Europe.You didn’t have to look far to see the source of the locals’ happiness: an unemployment rate of 1%, two fine universities and oil money – oodles and oodles of it. Aberdeen, it seemed back then, was recession-proof, having sailed through the credit crunch and subsequent recession of 2008 untouched by the storms and upheavals that had buffeted the rest of western Europe.
But now the old city is gathering its skirts about itself for an economic hurricane that once would have seemed as unlikely as snow in St Tropez. Following the global collapse in oil prices, North Sea oil revenues have been in freefall. In the first three months of this year they fell by 75%, continuing the downward spiral from the middle of last year. The downturn seemed to have justified the fears expressed by No campaigners in the referendum on Scottish independence. Indeed, tax receipts from oil accruing to Scotland between January and March this year were £168m, down from the £742m gathered in the final quarter of 2014. And nowhere is the economic wind-chill factor being more sharply felt than in Aberdeen.But now the old city is gathering its skirts about itself for an economic hurricane that once would have seemed as unlikely as snow in St Tropez. Following the global collapse in oil prices, North Sea oil revenues have been in freefall. In the first three months of this year they fell by 75%, continuing the downward spiral from the middle of last year. The downturn seemed to have justified the fears expressed by No campaigners in the referendum on Scottish independence. Indeed, tax receipts from oil accruing to Scotland between January and March this year were £168m, down from the £742m gathered in the final quarter of 2014. And nowhere is the economic wind-chill factor being more sharply felt than in Aberdeen.
Amid tens of thousands of job layoffs in a region long regarded as Scotland’s Klondike, the big oil operators are putting an end to the longstanding “two weeks on, three weeks off” working model for oil-rig workers. Crews are being pressured into signing up to a “three weeks on, three weeks off” equal-time rota. This is a tougher regime than in Norway, but is comparable with working practices in regions such as the Gulf of Mexico.Amid tens of thousands of job layoffs in a region long regarded as Scotland’s Klondike, the big oil operators are putting an end to the longstanding “two weeks on, three weeks off” working model for oil-rig workers. Crews are being pressured into signing up to a “three weeks on, three weeks off” equal-time rota. This is a tougher regime than in Norway, but is comparable with working practices in regions such as the Gulf of Mexico.
In the city itself the previously unthinkable has happened. Once it was almost impossible to secure a room in a decent hotel for less than £100 a night and the airport, the business gateway to the city, thrummed with commerce and workers. Now both these barometers of Aberdeen’s once bountiful economy have seen pronounced drop-offs.In the city itself the previously unthinkable has happened. Once it was almost impossible to secure a room in a decent hotel for less than £100 a night and the airport, the business gateway to the city, thrummed with commerce and workers. Now both these barometers of Aberdeen’s once bountiful economy have seen pronounced drop-offs.
Figures published last month by Aberdeen international airport show that passenger numbers in May took a hit of 8.1% against the same month last year. The occupancy rate for city hotels, meanwhile, was 68.9% in April, down from 77.9% in April 2014. More than 1,200 oil workers have been laid off in the region since the downturn began last year, while local businesses – minicab firms, hotels and restaurants – are reporting fewer customers. The property market, once seen as the most buoyant outside London, has begun to retreat, with worse expected.Figures published last month by Aberdeen international airport show that passenger numbers in May took a hit of 8.1% against the same month last year. The occupancy rate for city hotels, meanwhile, was 68.9% in April, down from 77.9% in April 2014. More than 1,200 oil workers have been laid off in the region since the downturn began last year, while local businesses – minicab firms, hotels and restaurants – are reporting fewer customers. The property market, once seen as the most buoyant outside London, has begun to retreat, with worse expected.
Eight bookies, six charity shops … it was like finding your maiden aunt was selling the candlesticks on eBayEight bookies, six charity shops … it was like finding your maiden aunt was selling the candlesticks on eBay
And so, on grey, wet Union Street last week, I felt impelled to conduct my own somewhat rudimentary survey of Aberdeen’s economic health. First, I began to count the number of empty shopfronts. For those who have never been there, an empty shopfront amid the granite splendour seems like a violation. By the time I’d stravaiged up and down it twice, I’d counted 18 empty facades, their windows disfigured by swirls of grey polish. Adding to the creeping sense of faded glamour were eight betting shops, six charity shops and around a dozen fast-food emporiums. No one is suggesting there isn’t a place for these outlets, but in Union Street, Aberdeen, and in such numbers? It was like visiting your formidable but beloved maiden aunt in the Cotswolds and discovering that she’d been taking in lodgers and selling the candlesticks on eBay.And so, on grey, wet Union Street last week, I felt impelled to conduct my own somewhat rudimentary survey of Aberdeen’s economic health. First, I began to count the number of empty shopfronts. For those who have never been there, an empty shopfront amid the granite splendour seems like a violation. By the time I’d stravaiged up and down it twice, I’d counted 18 empty facades, their windows disfigured by swirls of grey polish. Adding to the creeping sense of faded glamour were eight betting shops, six charity shops and around a dozen fast-food emporiums. No one is suggesting there isn’t a place for these outlets, but in Union Street, Aberdeen, and in such numbers? It was like visiting your formidable but beloved maiden aunt in the Cotswolds and discovering that she’d been taking in lodgers and selling the candlesticks on eBay.
Standing tall among Union Street’s economic tumbleweed is Eclectic Fizz, the city’s premier champagne bar. On a Thursday lunchtime there were fewer than a handful of customers in a space heavy with the promise of wasted afternoons amid elegance and cocktails. The manager, Stuart Cooper, is a local lad who’s worked all over the UK and is compellingly upbeat about how his beloved Aberdeen is coping with the storm. “There’s still a lot of money in this place. You might ask yourself where it’s coming from, but it’s still there and it’s still evident.Standing tall among Union Street’s economic tumbleweed is Eclectic Fizz, the city’s premier champagne bar. On a Thursday lunchtime there were fewer than a handful of customers in a space heavy with the promise of wasted afternoons amid elegance and cocktails. The manager, Stuart Cooper, is a local lad who’s worked all over the UK and is compellingly upbeat about how his beloved Aberdeen is coping with the storm. “There’s still a lot of money in this place. You might ask yourself where it’s coming from, but it’s still there and it’s still evident.
“Of course, the falling oil prices have had an adverse effect, but that’s happened all over the world. If this is what it’s like when money is supposed to be scarce, I’d love to see this place when the good times roll.”“Of course, the falling oil prices have had an adverse effect, but that’s happened all over the world. If this is what it’s like when money is supposed to be scarce, I’d love to see this place when the good times roll.”
Sales of Moët, the house champagne, remain healthy, he says, while prosecco and cava are still sold in high numbers for those who want as close an approximation of the high life as they can get.Sales of Moët, the house champagne, remain healthy, he says, while prosecco and cava are still sold in high numbers for those who want as close an approximation of the high life as they can get.
The Enid Hutt art gallery at the other end of Union Street is showcasing original work by a galaxy of local talent amid prints by Jolomo and Jack Vettriano. It’s the sort of shop where you rebuke yourself if you depart without making a purchase. On my visit, several others evidently thought so too. Eileen from Bridge of Don was similarly robust about the challenges facing her city. “I keep waiting to see the effects of the recession, and I don’t disbelieve what you’re telling me, but we still have two great universities here.”The Enid Hutt art gallery at the other end of Union Street is showcasing original work by a galaxy of local talent amid prints by Jolomo and Jack Vettriano. It’s the sort of shop where you rebuke yourself if you depart without making a purchase. On my visit, several others evidently thought so too. Eileen from Bridge of Don was similarly robust about the challenges facing her city. “I keep waiting to see the effects of the recession, and I don’t disbelieve what you’re telling me, but we still have two great universities here.”
But what about all those empty shopfronts and betting shops? She was dismissive. “Have you not seen the new shopping mall down by the station? That’s where all the smart shops have gone. They’re not far away, you know.”But what about all those empty shopfronts and betting shops? She was dismissive. “Have you not seen the new shopping mall down by the station? That’s where all the smart shops have gone. They’re not far away, you know.”
Worse may yet befall Aberdeen, but rarely have Ladbrokes and Subway looked more splendid in this, their silver, granite raiment.Worse may yet befall Aberdeen, but rarely have Ladbrokes and Subway looked more splendid in this, their silver, granite raiment.