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ECONOMIC REPORT 2015
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6.1 Gross Value Added
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
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.
0.0
0.5
1.0
1.5
2.0
2.5
1990
1994
1998
2002
2006
2010
2014
Contribution to 2014 GVA
(%)
Source: ONS
Figure 18: Contribution to UK Gross Value Added by Extraction of Oil and Gas