Economic Report 2013

Ernst & Young’s Oil Field Services Report 2012

Many of these actions are underway, each being led by more than one council champion. As part of the council’s work, the government has agreed to consider its role in improving the public’s perception of the industry. A pilot project, ‘Energising the Nation’s Future’, 10 has been initiated by Oil & Gas UK to raise awareness of the industry and the positive case studies from the sector. Other actions underway include co-operative work by government and industry to help stimulate student demand for engineering careers and mapping of the work carried out by BIS to address the uptake of STEM (Science, Technology, Engineering, and Mathematics) subjects. All actions arising from both the Scottish and British strategies are in place to help work towards the ultimate goal of maximising economic recovery of oil and gas from the UKCS.

Thesupplychainsupportstheindustryacrossall its requirements, from the seismic acquisition of reservoir data, through exploration and appraisal drilling, field developments and production operations, to decommissioning at the end of field life. According to Ernst & Young’s 2012 Oil Field Services Report 11 for the UK, the combined activity of 390 companies generated £27 billion of revenues in 2011 for their goods and services; this was 17 per cent more than the previous year. In terms of jobs, these companies provided direct employment for almost 93,000 people in 2011, a seven per cent increase on 2010, reflecting the increased activity in the industry and its supply chain. Figure 34 suggests that revenues have risen steadily since data were first collected in 2008.

Figure 34: Profits and Revenues for the Supply Chain

-21%

-16%

-

-

27%

2009 2010

2011

Profits fi

Revenues s

Costs t

2%

15% 17%

2009

2010

2011

Source: Ernst & Young

10 See http://www.energisingthenationsfuture.co.uk

11 Ernst & Young only include companies where at least 50 per cent of their turnover is in the oil and gas sector, are UK registered and have annual revenues exceeding £10 million. E&Y identified another 720 companies involved in the sector, but with annual revenues of less than £10 million.

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ECONOMIC REPORT 2013