The strength of the UK’s upstream oil and gas supply chain is highlighted in a new report from Scottish Enterprise that shows exports reached a record level in 2013, supporting thousands of jobs in Oil & Gas.
The survey comes two weeks after a report from Oil and Gas UK showed that the upstream UK oil and gas supply chain was worth £35Bn and employs some 200,000 people. Attracting and retaining skilled personnel was identified as a key constraint to further development.
Scotland’s oil and gas supply chain exported a record £10Bn of goods and services in 2013, a 22% increase on the previous year, according to the new figures released by Scottish Enterprise at the Offshore Technology Conference in Houston, Texas.
The companies surveyed saw exports grow to represent just over half of total sales, to 50.2%. Ten years previously exports represented only 31% of sales and the UK figure for exports has been at around 42% for the past five years.
The annual survey of international activity shows that the main export market was North America, where sales were up by over 30% to £3.6Bn. Africa was a rapidly growing market with exports almost doubling to £2.3Bn. The United States provided the single biggest market, which is expected to continue for the next five years.
Angola and Norway were the next biggest markets. Other key markets for the future will include Nigeria, Brazil, Australia, the UAE and Malaysia. Opportunities will also be growing elsewhere in Africa, the Middle East and the Asia Pacific region.
Some 30% of UK oil and gas exports are generated from sales in the ‘wells’ market which is the one contractors are most likely to be active in. The marine and sub sea sector generates about 20% of its revenues from exports.
Scottish Enterprise Head of Oil and Gas David Rennie said: "Scotland has built up a global reputation in oil and gas expertise over the past 40 years, and these latest results clearly indicate that our skills and expertise remain in growing demand across the globe.
"Helping our supply chain to develop opportunities in new markets is a key focus of Scotland's industry-led oil and gas strategy, and our attendance at OTC this week is a further opportunity for us to showcase our strengths in this sector to the global marketplace."
