The Banchory-based consultancy found that there is too little focus on diversification – particularly in Aberdeen and the North East.
In its study – Oil and Gas Diversification – Pale Blue Dot Energy has highlighted the opportunity for Scotland to deploy surplus oil and gas capability on emerging future energy sectors including wave and tidal power, carbon capture, hydrogen and heating.
Oil and gas businesses should develop diversification strategies in order to manage the long-term decline in oil and gas driven by price uncertainty and the low carbon transition.
The study considered opportunities within 24 other sectors, the potential for oil and gas capability within those sectors and the expected scale of growth in each. In addition, the work considered cultural aspects and business models associated with oil and gas supply chain market entry into alternative sectors.
Consultant Sam Gomersall said: “Organisations need to wake-up to the opportunities that diversification can offer and take the time and effort required to prepare, plan and deliver a diversification strategy.
“Diversification is about much more than selling existing products into a different sector and organisations need to research and develop a diversification strategy.
“Now is an ideal time to establish a position in the emerging, high growth, low carbon energy space. Whilst not always apparent inside the oil and gas ‘bubble’, the world is in an Energy Revolution of which the current low oil price is just a small part. We are in the midst of a transition to a low carbon economy.”
The study also identified early diversification opportunities in offshore wind and N. Sea decommissioning, both of which have direct crossover of existing oil and gas services. Other early opportunities exist in nuclear and water sectors.
He added: “There is potential to deploy surplus oil and gas capability on emerging future energy sectors such as wave and tidal, carbon capture and Hydrogen and heat. Doing so now would ensure that Scotland can continue to be a global leader in energy projects and services.
“If Scottish oil and gas supply chain businesses engage with diversification opportunities, potential exists to exploit the business opportunities in these high growth sectors.
“In the medium term this would enable Scotland to become a global leader in low carbon energy in addition to being a global leader in oil and gas.”