International oil & gas supply chain grow to

record levels
Scotlands Energy Minister Fergus Ewing has welcomed the latest figures from the annual oil and
gas survey of international activity, published today, which show that total international sales from
Scotlands oil and gas supply chain grew to 10 billion in 2012-13, an increase of 22 per cent on the
previous year.
The new figures from Scottish Enterprise show that international activity now accounts for over half
of total oil and gas supply chain sales from Scotland at a record 50.2 per cent. By comparison, in
2002 this was 31 per cent.
The companies surveyed also forecast that total export sales would grow by 32 per cent and Scottish
sales via international subsidiaries would grow by 29 per cent over the next five years.
The latest figures were announced by Mr Ewing at the Offshore Technology Conference in Houston,
Texas where he is leading a trade delegation of 63 companies from Scotland working in the oil & gas
services sector.
Welcoming the new figures, Mr Ewing said:
Scotland has established a global reputation within the oil and gas sector and I am delighted that
these latest figures show an increase in international sales, which now account for more than 50 per
cent of total sales.
The value of this activity to the economy and exchequer is substantial. International sales by
Scotlands oil and gas supply chain rose by 22 per cent in 2012-13, to 10 billion.
Scotland is leading the way in the world of oil and gas and has a clear competitive advantage in this
truly global industry. There are huge opportunities open to us internationally and we are determined
to make the most of them.
The Scottish Government recognises the substantial contribution that the oil and gas industry
makes to our economy. Our objective is to make clear that Scotlands oil and gas wealth is not just
the resources that we extract but the expertise that we have built up. We are working with the
industry to continue to strengthen Scotlands position as a global leader in the sector and these
figures mark further growth in this important part of our economy.
In addition to the overall export figures, key findings include:
North America remained the top region for international sales with sales up by a third to 3.6
billion, followed by Africa where sales almost doubled to 2.3 billion.
The USA remained the main international market for international activity with Angola and Norway
rising to become the second and third largest markets.
Over the next five years the USA will continue to be a key country alongside Angola, Norway,
Nigeria, Brazil, Australia, the UAE, and Malaysia. Africa, the Middle East and the Asia Pacific region
are forecast to provide the most opportunities.
Contractors operating mainly in the wells sub-sector were most likely to export, with 30% of UK
Oil & Gas revenue being generated from export sales in this area. This was followed by the marine
and subsea sub-sector which reported that around 20% of its UK Oil & Gas revenue was generated
from exports.
David Rennie, head of oil & gas at Scottish Enterprise said: Scotland has built up a global
reputation in oil & gas expertise over the past 40 years, and these latest results clearly indicate that
our skills and expertise remain in growing demand across the globe.
Helping our supply chain to develop opportunities in new markets is a key focus of Scotlands
industry-led oil & gas strategy, and our attendance at OTC this week is a further opportunity for us
to showcase our strengths in this sector to the global marketplace.
The Survey of International Activity in the Oil & Gas Sector has been developed by the Aberdeen &
Grampian Chamber of Commerce on behalf of Scottish Enterprise.
In response to the survey findings James Bream, Research & Policy Director at Aberdeen &
Grampian Chamber of Commerce said:
The findings are great news for the Oil & Gas sector in Scotland and mirror what AGCC members
are telling us about the increasingly important role international activity has in their business. The
sector is not only an economic driving force domestically with record investment in recent years but
is now a critical part of our export driven economy.