Energy Transition Outlook 2021

ENERGY TRANSITION OUTLOOK 2021

Traditional oil and gas supply chain

Figure 13: Supply Chain Capabilities

Reservoir and Wells • Seismic data and processing • Geoscience consulting • Data analysis

Facilities • Equipment manufacture • Topside design/fabrication • Asset operations and maintenance • Engineering support • Specialist steel/tubular • Specialist engineer (other) • Inspection services

100%

90%

80%

70%

• Seismic instruments • Drilling contractors

60%

• Well engineering services • Drilling and well equipment • Laboratory service

50%

40%

30%

20%

100% 49% 49% 73% 29% 16% 78% 33% 22% 27% 7% 85% 15% 7% 0% 10%

Marine and Subsea • Heavy lift/pipe cable lay • Floating production units • Subsea manifold • Marine/subsea equipment • Inspection services

Support and Services • Catering/facility management • Sea/air transport • Logistics • Communications • Recruitment/training • Health/safety/environment • Consultancy/legal • IT

source: OGUK

At present, OGUK represents over 300 businesses across the energy supply chain and who provide support across all these categories. The energy transition is creating numerous opportunities for growth across the sector. Many OGUK members, who have traditionally focused on the oil and gas industry, are already looking to diversify in pursuit of wider opportunities in the energy sector both in the UK and globally, building on their North Sea heritage. Based on a detailed survey of OGUK members, many have already started to re-orient their businesses around new opportunities as shown in Figure 13.

It is therefore clear there is a strong alignment between the traditional activities of the oil and gas supply chain and the new skills and capabilities that will be implemented as we decarbonise the UK economy. The pioneering steps being taken by the UK to lead net zero is encouraging the growth of a unique and marketable skillset that will also allow the sector to drive new exports, building on their achievements in the domestic market.

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