Oil & Gas UK Economic Report 2014

Figure 40: Supply Chain Categories and Sub-Sectors

1

Tier 1: E&P Companies (End User)

Integrated Majors Large/Small Independents

Energy Utilities Companies

Non-Operating Companies

Exploration Companies

Supply Chain Categories

Reservoirs

Wells

Facilities

Marine and Subsea Support and Services

2

Tier 2: Main contractors and consultants

  Seismic data acquisition

  Well services contractors   Drilling contractors   Well

  Engineering, operation,

  Marine/subsea contractors   Heavy lift/pipe lay contractors   Floating, production, storage units

  Catering/facility management   Sea/air transport   Warehousing/ logistics   Communications   Recruitment   Training   Health, safety and environmental services   Energy consultancies   IT Hardware/ software

and processing contractors

maintenance and decommissioning contractors

3

engineering consultants

  Engineering consultants   Structure and

topside design and fabrication

4

Tier 3: Product and services suppliers

  Geosciences consultancies   Data

  Drilling

  Machinery/

  Subsea

and well equipment design and manufacture

plant design and manufacture

manifold/riser design and manufacture   Marine/subsea equipment   Subsea inspection services

interpretation consultancies

  Engineering support contractors   Specialist engineering services   Specialist steels and tubulars   Inspection services

Components

  Seismic

  Laboratory services

5

Sub-contractors and sub-suppliers

instrumentation

6

7

The EY report analysed the oil and gas industry’s supply chain in five categories and 32 sub-sectors, as detailed in Figure 40. Of the 1,585 companies included in the analysis, over 80 per cent generated turnover of less than £20 million in 2012, while 83 companies generated turnover in excess of £100 million and were responsible for over 60 per cent of the total 2012 turnover. The supply chain is fragmented, with many of the smaller companies specialising in a specific sub-sector and many of the larger ones typically operating across the supply chain.

Figure 41: Supply Chain Revenues and Number of Companies by Sub-Sector

8

14

600

2012 Revenue (Left Hand Scale) Number of Companies (Right Hand Scale)

12

500

10

400

8

300

6

Revenue (£ Billion)

200

4

Number of Companies

100

2

0

0

Reservoirs

Wells

Facilities

Marine and Subsea

Support and Services

Source:EY,Oil&GasUK

83

ECONOMIC REPORT 2014