Oil & Gas UK Economic Report 2015

6.1 Gross Value Added

oil and gas extraction) is typically captured by the Office for National Statistics (ONS) within a category termed ‘mining support activities’. From 2008 to 2013, the ONS’ annual business survey approximates almost 100 per cent of GVA in this category as attributable to support activities for petroleum and natural gas extraction. This infers that the wider supply chain made a contribution of 0.2 per cent to total UK GVA in 2014. Data from the first two quarters of 2015 show GVA from oil and gas extraction down over 40 per cent compared to the same period in 2014 when oil prices were over $100/bbl.

Despite strong performance in the early 2000s, extraction of oil and gas contributed just 1.1 per cent to total UK gross value added (GVA) in 2014, the lowest rate since 1990. Performance in 2014 was significantly affected by the decline in oil price during the latter half of the year, although offshore oil and gas extraction was still the sixth largest contributor to GVA among the 37 production, manufacturing and construction sectors in the UK economy. The wider contribution from the oilfield services sector (companies that are not solely licensed and engaged in

Figure 18: Contribution to UK Gross Value Added by Extraction of Oil and Gas

2.5

2.0

0.5 Contribution to 2014 GVA (%) 1.0 1.5

0.0

1990

1994

1998

2002

2006

2010

2014

Source: ONS

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ECONOMIC REPORT 2015