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T H E M A G A Z I N E F O R T H E U K O F F S H O R E O I L A N D G A S I N D U S T R Y
Q: Can you tell us about the objectives of this project?
A: It is one of the key outputs of the industry-government
Oil and Gas Industrial Strategy launched in March 2013 to
maximise economic production of the UK’s offshore oil and
gas resources; to sustain and
promote growth of the UK supply
chain; and to promote purposeful
collaboration across industry and
between industry and government.
Offshore oil and gas has made an
immeasurable contribution to the
British economy. The industry
remains the country’s largest
industrial investor, paying more tax into the Exchequer than any
other corporate sector and with the potential to deliver continued
economic benefits over the coming decades.
Despite these facts, the economic contribution of the thousands
of companies in the supply chain that support the industry is not
well understood.
Oil & Gas UK, with the support of the Department for Business
Innovation & Skills (BIS), the Department of Energy & Climate
Change (DECC) and the Scottish Government, commissioned
EY to quantify the supply chain’s economic importance and its
potential for growth.
EY has produced two reports,
the first measures the sector’s
economic contribution based
on 2012 figures, while the
second is a market intelligence
report providing additional
information on the size and
composition of three selected
sub-sectors, namely: engineering,
operations, maintenance and
decommissioning contractors; drilling and well equipment
design and manufacture; and marine and subsea contractors
and equipment.
The completion of this project is a real milestone, as it is the first
ever piece of work to quantify the economic contribution of the
oil and gas supply chain in the UK.
Chain reaction
Our industry encompasses a world-class UK-based
supply chain. Fact. A new project to map this
sector now sheds light on its immense contribution
to the British economy.
Wireline
catches up with
Oil & Gas UK’s business development director
Stephen Marcos Jones to find out more.
“The completion of this project
is a real milestone, as the first ever
piece of work to quantify the
economic contribution of the oil and gas
supply chain in the UK.”
The EY reports on the UK upstream oil and gas supply chain were released on 23 April at an event in Aberdeen.
Presenters included Mike Tholen of Oil & Gas UK (far left), with the panel comprising (L-R) Alex Milward of EY; UK business
and energy minister Michael Fallon MP; Gordon Ballard of Schlumberger and Chairman of the Oil and Gas Industry Council;
and Scottish Energy Minister Fergus Ewing MSP
