Workforce Report 2019

Industry Expenditure Total industry expenditure was £15.4 billion in 2018 (£14.3 billion pre-tax), in line with levels seen in 2017 and prior to 2010. Expenditure levels are expected to remain relatively stable in 2019. The decline in capital expenditure in recent years has been driven by capital efficencies in development projects, cancelled or deferredwork scopes and fewer newproject approvals. OGUK expects that levels of capital investment will stabilise in 2019 and 2020, with the potential for marginal increases to £5–5.5 billion this year, driven by a wave of new project approvals in 2018. Thirteen new fields gained approval last year, with a steady stream of new projects being crucial to supporting the supply chain and employment levels. Operating expenditure has also been reduced by almost 30 per cent during the recent downturn, from £10 billion in 2014 to £7.1 billion in 2018. OGUK expects that operating expenditure will also stabilise around £7–7.5 billion through to 2020, as new fields come onstream.

1

2

3

4

Figure 10: Number of Offshore Workers Versus Total Expenditure

Total Expenditure Core Workforce

30

35,000

5

30,000

25

6

25,000

20

20,000

7

15

15,000

Total Personnel

10

10,000

8

£ Billion (2018 Money)

5

5,000

9

0

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Vantage POB, OGUK

10

OGUK estimates that there is a £200 billion investment opportunity to develop and maintain the resources required to realise the potential outlined in Vision 2035. In order to achieve this, it is crucial that the UKCS remains as competitive as possible to ensure that new investment opportunities are progressed and that the potential remaining within existing assets is maximised.

11

21