Economic Report 2018

Figure 17: Vision 2035 – Increased Revenue from UKCS Production

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£420 billion

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£280 billion

Baseline Gross Production Revenue

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Vision Gross Production Revenue

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Revenue from Production (£ Billion - 2016 Money)

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2035

Source: OGA

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4.3 Doubling the Long-Term Opportunities for the Supply Chain Vision 2035 aims to assist the UK supply chain in delivering on its full potential for the UK economy, helping to grow revenue from new sources – whether from exports or diversification – as well as making the most of opportunities on the UKCS. Central to the Vision is the aim of doubling the supply chain’s share of the global oilfield services market, from 3.7 per cent to 7.4 per cent, by 2035. However, exports of oilfield services are not the only source of revenue growth, and the UK’s oil and gas supply chain should be encouraged to diversify into new markets at home and abroad, and to make the most of existing markets within the UK. This strategy will also help make up for any reduction in business from the UKCS, whilst reflecting the changing energy market and a shift to a low-carbon economy. Embracing this shifting business dynamic and the opportunities it presents is key to the supply chain’s future success. Its strong skillset, vast expertise and unrivalled resources are highly sought-after and extremely valued across the global energy industries. Success will see total supply chain revenues generated fromnon-UKCS business over the period between 2016-35 increase from £350 billion to £500 billion. It will require concerted effort across industry, government and regulators to help achieve this. The aspirations of the Vision for the supply chain are challenging, but there are signs of increased optimism and positivity. Oil & Gas UK’s Business Outlook 2018 demonstrated that supply chain companies are feeling more optimistic than they have in recent years about their future prospects, with companies targeting growth and anticipating an increase in revenues this year.

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