Oil & Gas UK Economic Report 2014

Figure 42: Supply Chain Revenues – UK Continental Shelf and Exports from 2008 to 2012

1

25

UKCS

Exports

2

20

3

15

4

10

Revenue (£ Billion)

5

5

0

2008

2009

2010

2011

2012

6

Source: EY, Oil & Gas UK

Market Intelligence EY’s market intelligence report provides additional information on the size and composition of three selected sub-sectors, namely the future demand for products and services, threats and barriers affecting these sub-sectors and actions to address these. The three sub-sectors are: engineering, operations, maintenance and decommissioning contractors (EOMD); drilling and well equipment design and manufacture (DWEDM); and marine and subsea contractors and equipment (MSCE). In 2012, across the three sub-sectors, there were 368 companies based in the UK with combined revenues of £14.1 billion (which included export revenue of £5.7 billion). The companies provide products and services to the domestic oil and gas market and also compete with regional and international

competitors in the global market. These businesses are well positioned to compete internationally as the UKCS’ maturity and international reputation, combined with the UK’s reputation for high quality engineering, provide broad and in-depth technical capability and are key points of differentiation from international competitors. The UKCS is considered a mature market, albeit with some significant frontier and technically driven opportunities, such as EOR. As a result, future domestic demand offshore is expected to be predominantly driven by brownfield developments, but will also include some new greenfield activity. There is also significant potential demand for productsandservicesintheEOMDandDWEDM sub-sectors from UK onshore activity (for example, shale developments).

7

8

87

ECONOMIC REPORT 2014