Scottish oil & gas exports increase by 4.5% in 2010 - 11

International sales for the year stood at £7.6bn, accounting for a record 46.4 per cent of total Scottish supply chain sales. In 2002, the international share was 31 per cent of total sales, indicating that growth in international markets has been driving growth overall.

Total oil and gas supply chain sales from the Scottish market also increased by 2.1 per cent, reaching £16.3 billion.

The survey also found that North America remains top for Scotland’s supply chain exports, with £2.6 billion of sales targeted into this region.

In addition, sales activity from the Scottish oil and gas supply chain was recorded in 100 different countries. Strongest regional growth was in the Australasian market followed by the African region. Greatest growth in the major markets was to Canada and Australia, with markets such as Ghana, India, Brazil and Qatar as the new markets of greatest interest.

The results were published at the same time as a delegation of nearly 50 Scottish companies are exploring potential global business at this year’s Offshore Technology Conference (OTC) in Texas.

The conference, which is attended by 70,000 delegates and 2,000 exhibiting companies from over 110 companies, represents a huge opportunity for Scottish companies to take advantage of business opportunities at a global level.

Commenting on the results Scottish Enterprise chief executive Lena Wilson, who is attending OTC with the Scottish delegation, said:

“These results show the huge importance oil and gas continues to play in Scotland, and in particular how our skills and expertise in this area are in increasing demand worldwide. The steady growth in sales at a time of a global economic downturn is particularly encouraging.

“The continuing challenge will be to capitalise on our strengths and build on Scotland’s international capabilities - both in the oil and gas industry itself and in the application of our expertise in this area in the fast-growing renewables sector. That’s why the Offshore Technology Conference is such a fantastic opportunity for our companies, enabling them to make new contacts and develop new business opportunities with partners from across the globe.”

SCDI Regional Director, Ian Armstrong, said:

“The latest survey results back up the anecdotal perception that Scotland’s oil and gas sector has weathered the global downturn relatively well. Whilst recovery in the world economy continued to be slow in 2010 the rising oil price has enabled exploration and production activities to continue across the globe and the Scottish supply chain has been able to maintain growth during this period.

“With data from the International Energy Agency (IEA) predicting a 40 per cent rise in global energy demand by 2035, of which oil and natural gas will continue to be the key components, the export outlook for the Scottish supply chain remains very positive. Anchoring the supply chain in Scotland is critical to gaining maximum economic benefit from these opportunities and to that end the recent announcements in the UK Budget regarding an extension of field allowances and greater certainty around decommissioning tax relief is most welcome”.

Energy Minister Fergus Ewing added:

“With more than half of the value of the North Sea's oil and gas reserves yet to be extracted these results highlight the fact that oil and gas remain an enormous economic resource for Scotland's long-term benefit. Continued and sustained investment is needed in order to maximise recovery of the remaining 24 billion barrels with a wholesale value of £1.5 trillion.

"We will shortly launch a new strategy developed by our oil and gas leadership group. By working together within a stable, supportive tax regime to develop Scotland's rich natural resources, we will continue to be the energy powerhouse of Europe. And with the powers of an independent nation we can ensure that the next four decades of oil and gas production in Scotland yield even greater benefits than the last four decades.”