Economic Report 2023 - Offshore Energies UK (OEUK)

Figure 8 UK offshore energy expenditure

Hydrogen production capital investment & operating expenditure CCS transport and storage capital investment & operating expenditure Offshore wind operating expenditure Offshore wind capital investment Oil and gas decommissioning expenditure Oil and gas operational expenditure Oil and gas capital investment

35

30

25

Renewables expenditure represents 74% of total offshore energy expenditure in 2030

20

15

10

Offshore energy expenditure (£bn)

5

0

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: NSTA, Rystad, OEUK

from offshore wind projects is likely to be accessible to, and reliant on, the same capabilities that exist now. It also found that 90% of existing oil and gas capabilities map well to carbon transport and storage. This provides a huge advantage for the development of projects and for the wider economy. OEUK estimates that the supply chain opportunity from these areas could be worth almost £100bn this decade if they progress in line with government targets,

which would mark a 50% annual revenue increase on current levels. However the supply chain must have the confidence to expand capacity as demand rises. Concerted policy support, stable and competitive fiscal conditions and improved planning and regulatory timelines are all key parts of realising this energy supply and economic opportunity.

ECONOMI C REPORT 2023

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