New figures released as part of Scottish Development International’s Survey of International Activity in the Oil & Gas Sector show international activity now accounts for more than half of total Oil & Gas supply chain sales from Scotland, totalling a record 50.2%.
By comparison, in 2002 it was 31%. The companies surveyed also forecast that total export sales would grow by 32% 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, 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. 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, followed by Africa where sales almost doubled to £2.3billion.
- 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% of UK Oil & Gas revenue being generated from export sales in this area. Next was the marine and subsea sub-sector, which reported that around 20% of its revenue was generated from exports.
Mark Hallan, Senior Director, Europe, Middle East and Africa for Scottish Development International 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 are increasingly in demand across the globe. “Africa is a region of tremendous growth and development and the role that Scottish business can play in supporting that growth is evident. It has consistently been a top export destination for the Scottish oil & gas sector and the continued growth in our trade partnerships gives us confidence about our collective future success.”
The Aberdeen & Grampian Chamber of Commerce, on behalf of Scottish Enterprise, developed the Survey of International Activity in the Oil & Gas Sector.
