THE 71 per cent increase in first quarter profits achieved by BP provides a further sign the rise in oil prices since late 2016 has given a big boost to the oil majors.

Last week Royal Dutch Shell posted a 42% increase in first quarter earnings.

Both firms noted the part North Sea operations had played in their recent success.

Investors in the majors can expect to benefit from the oil price effect, with Shell and BP emphasising their priorities include increasing distributions to shareholders.

Such largesse will be regarded with mixed feelings in Scotland.

The North Sea supply chain has faced huge challenges amid retrenchment moves made by BP and Shell following the plunge in the oil price from 2014 to 2016.

Both shed hundreds of jobs.

With capital investment budgets set to remain under pressure, what the improvement in the oil firms’ trading fortunes will mean for the North Sea remains to be seen.

It is notable that Shell and BP approved their first North Sea projects for years in the first quarter.

But the projects look likely to be on a smaller scale than the giant developments West of Shetland the firms approved before the crude price slumped.

The last of these developments, Clair Ridge, is due to come onstream in the second half of this year.