Economic Report 2020

Leading energy transition: a UK supply chain perspective

A thriving UK supply chain will be crucial in ensuring we achieve our net-zero ambitions. The transition creates a unique opportunity for sector growth through embracing emerging opportunities and continuing to support oil and gas production. Many OGUK members, who have traditionally focused on the oil and gas industry, are already looking to wider opportunities in the energy sector. In a sentiment survey of OGUK supply chain members in the third quarter of 2020, more than 75 per cent of respondents said they are already providing some services to industries other than oil and gas, and 85 per cent expect to increase their diversification efforts further over the next two years due to the current market conditions.

The pioneering steps being taken by the UK to lead net- zero will help develop unique and marketable skills that will also allow the sector to drive new exports. Greater diversification of companies has the potential to create multiple skilled jobs in energy communities which are often in traditional industrial heartlands andwill be critical in achieving net zero ambitions. This is already seen in the NorthEast of England throughNet-ZeroTeesside regarding CCUS and hydrogen and Grimsby where offshore wind is creating new business opportunities. We can see examples of this diversification from OGUK members overleaf.

CCS and Hydrogen

Reducing emissions from power generation

Electrification

Operational Improvements

Reducing venting and flaring

UK supply chain companies

35