WIRELINE ISSUE 28 SUMMER 2014

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.

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.

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

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

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

“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.”

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.

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.

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

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