Scotland’s oil and gas supply chain sales top £10bn with 22% annual increase – with five years of further growth forecast

oil rig

Latest figures from the annual oil and gas survey of international activity, published yesterday, show that total international sales from Scotland’s oil and gas supply chain grew to £10 billion in 2012-13 – an increase of 22% on the previous year.

And the future looks bright, with positive forecasts for at least another five years of growth, as detailed below in the summary of main findings:


Export and international activity

The sector delivered £3.7bn of direct exports from Scotland in 2012. This equates to growth  of 53% since 2011 (£2.4bn)

The sector delivered sales of an estimated £6.3bn via international subsidiaries. This equates to growth of 9% from 2011 (£5.79bn)

In total, international sales (exports plus subsidiaries) for Scottish based supply chain companies in 2012 was an estimated £10.0bn, an increase of 22% since 2011 (£8.2bn)


Total sales

Total Scottish based sales were £13.6bn, of which £3.7bn were export sales (see above)  and £9.9bn were domestic UK based sales; therefore:

Total Oil & Gas supply chain sales from the Scottish based supply chain in 2012 were £19.9bn, an increase of 15.4% since 2011 (£17.2bn) made up of direct exports (£3.7bn) + international subsidiaries (£6.3bn) + sales to domestic market (£9.9bn)

International activity in 2012 accounted for a record 50.2% of total Scottish supply chain sales – up from 47.6% in 2011


Respondents expect significant growth over the next five years

Total Scottish domestic Oil & Gas sales are forecast to grow by 18% over the next five years

Total Scottish Oil & Gas export sales are forecast to grow by 32% over the next five years

Total Scottish sales via international subsidiaries are forecast to grow by 29% over the next five years.


The latest figures were welcomed Scottish Energy Minister Fergus Ewing. Speaking 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 – he said: “The Scottish Government recognises 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 also 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.”

Maureen Watt, SNP MSP for Aberdeen South and North Kincardine, also welcomed the report. She said: “It confirms that North Sea resources are a massive asset and an industry with a supply chain that is experiencing growth and is anticipated to go form strength to strength.

“The number of people in jobs in the wider supply chain increased by over 21,000 between 2008 and 2012 and this number is expected to continue increasing.”

* The official unemployment rate on Orkney and Shetland is 0.5%

In total, respondents to the survey – carried out by Scottish Enterprise and Aberdeen Chamber of Commerce – accounted for around 50% of domestic employment in Scotland’s Oil & Gas supply chain. And Tier 2 and 3 businesses (contractors and sub-contractors) – which employ more than 23,000 people in Scotland – responded to the survey.

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