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21 October 2013 | Will Green
The economic contribution of the oil and gas industry’s supply chain to the UK is to be the subject of a study.
Oil & Gas UK, which represents the industry, has asked Ernst & Young to carry out the work using data from more than 1,000 companies, covering 42 sub-sectors and including factors such as skills and exports.
The information gained will be used to develop three market intelligence reports on those sub-sectors identified as offering “high growth, profitability and capability for UK companies”.
Currently, it is believed the industry contributes £27 billion to the British economy and the research will “give government and industry an indication of prospects available”.
Stephen Marcos Jones, business development director at Oil & Gas UK, said: “We have a world-leading global supply chain based here in the UK, which we believe contributes £5 billion to £6 billion every year to the exchequer and exports £7 billion worth of goods and services and it is important we continue to make the UK an attractive place for these companies to stay.
“Over 300 supply chain companies now make up over 80 per cent of our membership, a number which has increased by more than a third in the past year. Now, more than ever, we’re committed to promoting and working in their interests.”
Business and energy minister Michael Fallon said: “The UK’s oil and gas supply chain is highly robust with the potential to contribute significantly to economic growth over the coming decades.
“Gaining even further insight into its strengths and capabilities will only help to support the ongoing work of our joint oil and gas industrial strategy to create new jobs, encourage investment and increase exports.”
The results of the research will be published in March 2014.