Economic Report 2013

7. The Supply Chain, Employment and Skills

A healthy supply chain is integral to the success of the UKCS. Industry and government recognise that supporting the domestic supply chain has positive effects on employment, Gross Domestic Product (GDP), taxes, the development of technology, exports and, ultimately, the recovery of oil and gas reserves. Both the Scottish and British governments have published oil and gas sector strategies, the former in the summer of 2012 8 and the latter in the spring of 2013 9 jointly by the Department for Business, Innovation and Skills (BIS) and DECC. Both documents cover similar themes, focus on the upstream oil and gas supply chain and are jointly owned by government and industry. Industrial Strategies

BIS andDECC’s strategy has three underpinning aims: • To maximise the economic production of the UK’s offshore oil and gas resources • To sustain and promote the growth of the industry’s supply chain, in both domestic and international markets • To promote purposeful collaboration across industry and between industry and government An industry council has been formed to advise BIS and DECC. Of the 42 actions that have come from the council, mapping the supply chain represents one of the biggest challenges. Once complete, the map will identify where best to promote growth and further expand the oil and gas supply chain’s capabilities, both domestically and internationally.

8 See http://www.scottish-enterprise.com/your-sector/energy/oil-and-gas/strategy.aspx 9 See https://www.gov.uk/government/publications/uk-oil-and-gas-industrial-strategy-business-and-government-action-plan

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ECONOMIC REPORT 2013

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