International oil & gas supply chain grow to record levels

Welcoming the new figures, Mr Ewing said:

“Scotland has established a global reputation within the oil and gas sector and I am delighted that these latest figures show an increase in international sales, which now account for more than 50 per cent of total sales.

“The value of this activity to the economy and exchequer is substantial. International sales by Scotland’s oil and gas supply chain rose by 22 per cent in 2012-13, to £10 billion.

“Scotland is leading the way in the world of oil and gas and has a clear competitive advantage in this truly global industry. There are huge opportunities open to us internationally and we are determined to make the most of them.

“The Scottish Government recognises the substantial contribution that the oil and gas industry makes to our economy. Our objective is to make clear that Scotland’s oil and gas wealth is not just the resources that we extract but the expertise that we have built up. We are working with the industry to continue to strengthen Scotland’s position as a global leader in the sector and these figures mark further growth in this important part of our economy.”

In addition to the overall export figures, key findings include:

• North America remained the top region for international sales with sales up by a third to £3.6 billion, followed by Africa where sales almost doubled to £2.3 billion.



• The USA remained the main international market for international activity with Angola and Norway rising to become the second and third largest markets.



• Over the next five years the USA will continue to be a key country alongside Angola, Norway, Nigeria, Brazil, Australia, the UAE, and Malaysia. Africa, the Middle East and the Asia Pacific region are forecast to provide the most opportunities.



• Contractors operating mainly in the ‘wells’ sub-sector were most likely to export, with 30% of UK Oil & Gas revenue being generated from export sales in this area. This was followed by the marine and subsea sub-sector which reported that around 20% of its UK Oil & Gas revenue was generated from exports.

David Rennie, head of oil & gas at Scottish Enterprise said: “Scotland has built up a global reputation in oil & gas expertise over the past 40 years, and these latest results clearly indicate that our skills and expertise remain in growing demand across the globe.

“Helping our supply chain to develop opportunities in new markets is a key focus of Scotland’s industry-led oil & gas strategy, and our attendance at OTC this week is a further opportunity for us to showcase our strengths in this sector to the global marketplace.”

The Survey of International Activity in the Oil & Gas Sector has been developed by the Aberdeen & Grampian Chamber of Commerce on behalf of Scottish Enterprise.

In response to the survey findings James Bream, Research & Policy Director at Aberdeen & Grampian Chamber of Commerce said:

“The findings are great news for the Oil & Gas sector in Scotland and mirror what AGCC members are telling us about the increasingly important role international activity has in their business. The sector is not only an economic driving force domestically with record investment in recent years but is now a critical part of our export driven economy.”