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Oil supply chain sales reach record levels
Latest figures from the annual oil and gas survey of international activity, published recently, show a 5.8 per cent increase in total sales from the sector to reach £17.2 billion, with international sales rising by 8.4 per cent in 2011-12, reaching a record 47.6 per cent of total sales. Scottish companies now operate in over 100 markets across the world.
Combined UK and International sales figures show overall growth for the 14th year in a row, and come as Scotland’s Energy Minister, Fergus Ewing, travels to take part in the Offshore Technology Conference in Houston, Texas, where he will lead a trade delegation of over 50 Scottish companies working in the oil and gas services sector.
Commenting on 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 almost 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 8.4 per cent in 2011-12, to £8.2 billion – almost double the growth from the previous year.
“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 recognises the substantial contribution that the oil and gas industry makes to our economy. 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.”
Strongest growth was reported in the Middle East, but the African region remained the second most important with a 5.9 per cent increase in sales. Brazil, the USA and Australia were new markets of the greatest interest – with sales in Australia alone increasing by 9.4 per cent.
North America remained the top region for international sales with £2.6 billion of sales targeted into this region, an increase of 2.8 per cent since 2010.
The figures are from the latest annual survey of international activity in the sector from Scottish Enterprise and the Scottish Council for Development and Industry (SCDI).
Welcoming the results, David Rennie, Scottish Enterprise’s international head of oil & gas said:
“Growing export levels is a key priority in Scotland’s industry-led Oil & Gas Strategy, because we know that this type of activity has the potential to make the biggest impact on Scotland’s long-term economic growth.
“These latest figures are outstanding, particularly at a time when many regional economies have been stagnating. They show that our expertise in oil & gas is in increasing demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland.
“We’ll continue to work closely with companies across the oil & gas supply chain to help identify new opportunities for growth at a global level, particularly in our priority markets such as West Africa, the Middle East, Australia and Brazil.”
Ian Armstrong regional director, Scottish Council for Development and Industry, added:
“The global nature of Scotland’s oil and gas supply chain is once again illustrated by this latest set of figures. The international expertise and success of the industry is built on outward looking and innovative companies based in the North East, Highlands & Islands and other parts of our country, who consistently proved themselves to be world leading in identifying and capitalising upon business opportunities in oil and gas provinces around the world. As energy expertise in Scotland continues to build across other sectors, SCDI anticipates this trend will continue to benefit Scotland for many decades to come.”