OTC 2014: Scotland’s Oil & Gas skills and expertise in high demand globally
- Business & Finance
New figures released today as part of Scottish Development International’s Survey of International Activity in the Oil & Gas Sector show that international activity now accounts for more than half of total oil & gas supply chain sales from Scotland, totalling a record 50.2 percent.
The companies surveyed also forecast that total export sales would grow by 32 percent over the next five years.
The latest figures were launched by Energy Minister Fergus Ewing at the Offshore Technology Conference in Houston, Texas where he is leading a trade delegation of 63 companies from Scotland working in the oil & gas services sector.
Welcoming the new figures, 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 percent 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 percent in 2012-13, to £10 billion ($16billion).
“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 recognizes 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 £3.6billion ($5.8billion), followed by Africa where sales almost doubled to £2.3billion ($3.7billion).
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 core country of focus, alongside Angola, Norway, Nigeria, Brazil, Australia, the UAE and Malaysia. Africa, the Middle East and Asia Pacific regions are forecast to provide the most opportunities.
Contractors operating mainly in the wells sub-sector were most likely to export, with 30 percent of UK oil and gas revenue being generated from export sales in this area. Next was the marine and subsea sub-sector, which reported that around 20 percent of its revenue was generated from exports.
Danny Cusick, President, Americas of Scottish Development International said: “Scotland has built up a global reputation in oil and gas expertise over the past 40 years, and these latest results clearly indicate that our skills and expertise are increasingly in demand across the globe.
“OTC is an appropriate location for the announcement of these new findings, being as it is, the major industry hub in our largest export destination. The parallels between Houston and Aberdeen as centres of oil and gas excellence are strong and both cities boast incredible track records of development and innovation. We are excited about the opportunities that continue to be explored with our North American partners.
The Aberdeen & Grampian Chamber of Commerce, on behalf of Scottish Enterprise, developed the Survey of International Activity in the Oil & Gas Sector.
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 and 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.”
Read a full copy of the report here