Industry body Oil & Gas UK has appointed finance and accounting firm EY to undertake further research into the economic contribution of Britain’s oil and gas supply chain to the UK – believed presently to be worth £27 billion.
Using data from over 1000 companies, the study will give an economic snapshot of the contribution of the oil and gas supply chain in the UK, across 42 sub-sectors and looking at factors including skills and exports.
This information will in turn be used to develop three market intelligence reports on those sub-sectors identified as offering high growth, profitability and capability for UK companies. The results of these reports will give government and industry an indication of prospects available, enabling them to work to access opportunities.
The UK oil and gas industry is growing, with record investment at an all-time high of £13.5 billion this year. Many companies in this industry, producers of both the oil and gas itself and the technology and expertise so vital in the exploration and production process, are strategizing about how to ride on the wave of this success. This study will aim to outline the opportunities available to all sizes on company in Britain, from small enterprises to super majors, and to pinpoint to value of these companies to the UK economy.
Business and Energy Minister Michael Fallon said: "The UK’s oil and gas supply chain is highly robust with the potential to contribute significantly to economic growth over the coming decades.
“Gaining even further insight into its strengths and capabilities will only help to support the ongoing work of our joint oil and gas industrial strategy to create new jobs, encourage investment and increase exports.”
Oil & Gas UK’s Business Development Director, Stephen Marcos Jones, added: “We have a world-leading global supply chain based here in the UK which we believe contributes £5-6 billion every year to the Exchequer and exports £7 billion worth of goods and services and it is important we continue to make the UK an attractive place for these companies to stay. Over 300 supply chain companies now make up over 80 per cent of our membership, a number which has increased by more than a third in the past year. Now, more than ever, we’re committed to promoting and working in their interests.”
The outcomes will be realised publically in March 2014, marking the one year anniversary of the launch of the UK Government’s industrial strategy.