Scottish oil and gas chain sales rise 10% to £22bn – before slump in N. Sea crude prices

Oil barrel symbolNew government figures show that Scotland’s oil and gas supply chain delivered a record £22.2 billion of supply chain sales during 2013, 11% more than in 2012.

The latest annual survey of international activity of the Scottish oil and gas supply chain, highlights the sector increased its domestic sales to £11 billion from £9.9 billion in 2012. International sales rose by 12% to £11.2 billion in 2013 of which £4.2 billion came from Scottish based direct exports and £7 billion of sales via international subsidiaries.

Welcoming the results ahead of his visit to Houston to meet with a number of companies that have a presence in Scotland, Energy Minister Fergus Ewing said: “Scotland has established a global reputation within the oil and gas sector and I am delighted to see that these figures once again show the strength of the industry both at home and internationally.

“Scotland continues to lead the way in the world of oil and gas. As a country that boasts a strong engineering and manufacturing skills base which is recognised globally across the oil and gas industry, we have a clear competitive advantage.

“There are huge opportunities open to us internationally and we are determined to make the most of those through continued support and development of our domestic supply chain, enabling it to maintain and strengthen its competitiveness internationally.”

Some other key findings include:

  • North America remained the top region for international sales with sales rising by over a third to £4.1 billion, followed by the Middle East and Asia Pacific which rose by 18 per cent and 15 per cent respectively.
  • he USA continues to be the number one market for international sales, achieving £3.07 billion. A number of new entrants, however, joined the top 10 country rankings including Singapore, Qatar, the Netherlands, Iraq and the UAE.
  • As a total percent of international sales, the USA took top position, followed by Singapore and Canada.
  • The Middle East, Africa, North America and Asia pacific are the most reported regions in terms of immediate growth opportunities.

A Scottish government spokesman added: “Our annual supply chain survey clearly demonstrates the importance of the oil and gas sector to the Scottish economy.

“Although the figures predate the recent sharp fall in crude  oil prices, it’s important to highlight that the sector successfully delivered another record performance in 2013. This is a real endorsement of the industry’s world-renowned reputation, built up over 50 years in one of the world’s most demanding environments.

“Looking ahead the sector faces some considerable challenges. Cost efficiency and collaboration will be key in helping to address these, as well as focussing on our competitive advantage internationally, in decommissioning and emerging areas such as Digital Offshore.

“Underpinning all of this, however, is innovation and leadership – that’s what will make the biggest difference of all. We are a global hub and we want to remain so for many years to come.”

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed