25.04.2014 UK’s upstream offshore supply chain employs 200,000 people
As a result of a project to map the UK oil and gas supply chain, Oil & Gas UK this week released two reports. The first report: the economic contribution of the UK upstream oil and gas supply chain shows that the UK supply chain is a £35 billion industry, based on 2012 figures from businesses registered with Companies House.
The second report: the UK upstream oil and gas supply chain – market intelligence provides additional information on the size and composition of three selected sub-sectors namely: engineering, operations, maintenance and decommissioning contractors (EOMD); drilling and well equipment design and manufacture (DWEDM) and marine and subsea contractors and equipment (MSCE).
Oil & Gas UK, with the support of the Department for Business Innovation and Skills (BIS), the Department for Energy and Climate Change (DECC) and the Scottish Government, last year commissioned professional services firm EY (formerly known as Ernst & Young) to undertake this project. EY examined over 3,000 companies actively involved in the supply chain, with over half (1,585) of those companies identified as UK registered, with at least 50 per cent of turnover generated in the oil and gas sector and with 2012 accounts filed with Companies House. Those 1,585 companies form the basis of both reports. Given the range of sources consulted in this process, this is believed to be a strong representation of the UK’s upstream offshore supply chain.
The economic contribution of the UK upstream oil and gas supply chain report also reveals a strong export market, with a rise in the export activity of UK businesses. In 2012, exports made up 42 per cent of the £35 billion turnover for the upstream supply chain, a percentage which has remained fairly constant over the last five years.
Additionally, the reports outline that the number of people directly employed by the supply chain increased by over 21,000 between 2008 and 2012, with the supply chain sector now employing some 200,000 people in total.
The announcement coincides with the one year anniversary of the UK Government’s Industrial Strategy for the oil and gas sector.