Wednesday, 13 June 2012

Aggressive oil and gas strategy aims to drive up sales

Image courtesy of Scottish Enterprise.
An aggressive new Scottish oil and gas industry strategy aims to boost exports and drive annual sales of £30 billion by 2020.

The strategy, which builds on 40 years of North Sea oil and gas expertise and success, was developed by the industry itself, along with the Scottish Government and public sector partners, and follows latest figures for 2010-11 which show rising exports of 4.5 per cent.

According to the figures, published by Scottish Enterprise and the Scottish Council for Development and Industry (SCDI), international sales for the year stood at £7.6 billion, a record 46.4 per cent of total Scottish supply chain sales. This compared to a 2002 figure of 31 per cent, indicating international markets were driving growth.

The survey figures also showed total oil and gas supply chain sales from the Scottish market increased by 2.1 per cent, reaching £16.3 billion. North America remained top for Scotland’s supply chain exports, with £2.6 billion of sales targeted into this region.

As part of the survey, sales activity from the Scottish oil and gas supply chain was recorded in 100 different countries. Strongest regional growth was in the Australasian market followed by the African region. Greatest growth in the major markets was to Canada and Australia, with markets such as Ghana, India, Brazil and Qatar as the new markets of greatest interest.

Oil and gas is the largest industry sector in the UK, contributing almost one-fifth of all corporate taxes. The sector supports 440,000 jobs, of which around half are in Scotland. More than 40 billion barrels of oil equivalent have been recovered from the North Sea, to date, delivering £300 billion in revenues to the UK Government.

Scotland's First Minister Alex Salmond said oil and gas was one of Scotland's greatest industrial success stories. It had transformed the economic well-being of the UK over the last 40 years.

He said, "With as much as £1.5 trillion of oil remaining to be extracted from reserves around these islands, the strategy identifies key actions which can maximize future opportunities, by helping the industry secure the necessary human capital and skills, and supporting innovation and technology deployment."

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