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Global offshore capital investment to grow
Expected offshore growth of 73% in next five years.
Scotland’s oil and gas industry has enormous potential for the future creating significant opportunities for the sector Energy Minister Fergus Ewing said today.
The global spends & trends reports on a number of key markets, show that total offshore capital investment is expected to grow by 73 per cent in the next five years to 2017 to US$614billion.
In the same period global operational expenditure (opex) is estimated to increase by 55 per cent to reach a total of US$640bn.
The reports, published by Scottish Enterprise, focus on the key markets of North & South America, Asia-Pacific, the Middle East & North Africa, other African markets, the Former Soviet Union and Europe - and contain detailed information on opportunities for the Scottish supply chain.
The Asia-Pacific region is expected to attract the greatest share of global capital investment, accounting for a quarter of offshore capital expenditure, followed by South America and Africa.
The reports also reveal that while the development of deepwater reserves is a key global trend, the majority of industry operational expenditure is on projects in shallow waters. However, deep and ultra deep water sectors are expected to grow over the forecast period as total opex increases from US$63bn to US$126bn.
Welcoming the reports Energy Minister Fergus Ewing said:
“Throughout the world many offshore companies are facing tough times in challenging climates and waters. Scotland is leading the way in the world with strong reputation in working in these challenging conditions.
“We recognise the importance of supporting the industry to create new investment and jobs. The series of reports out today is welcome news for the industry and a look forward to the potential growth open to them.
“Scottish companies are continuing to work together on an international scale in cementing Scotland’s global reputation within the oil and gas sector.
“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 from Angola to Brazil and we are determined to make the most of them.
“Decades of experience recovering oil and gas from the challenging North Sea has given Scottish companies the expertise needed for oil and gas production and exploration – expertise which is helping our companies gain contracts in countries around the world.”
The spends & trends reports were launched at Offshore Europe in Aberdeen, where Scottish Enterprise and its international arm Scottish Development International, are showcasing 47 Scottish supply chain companies to an expected 50,000 delegates.
David Rennie, Scottish Enterprise’s head of oil & gas said:
“Encouraging more companies to look at how they can develop trade opportunities in new markets overseas is one of the key priorities of Scotland’s industry-led oil & gas strategy. Our figures on international activity by the Scottish supply chain show a 5.8 per cent increase in total supply chain sales from the sector to £17.2 billion in 2011-12, with almost half of that total - £8.2 billion - going to international markets. Scottish companies now operate in over 100 markets across the world.
“We know that exporting is a key route for growth for companies, and these spends & trends reports highlight the huge scale of the international opportunities for Scottish businesses in the field of offshore operations.”
Notes to editors
For further information visit: www.scottish-enterprise.com/spendsandtrends