LONDON – Gross revenue generated from the UK oil and gas sector rose 28% last year to $2.8 billion, according to a report by industry association Oil & Gas UK.
The number of highly skilled jobs throughout the sector also increased by 10% to 13,000, and included 2,000 graduate engineers and 1,500 technicians.
Investment in future capacity rose by 20% to $178 million, of which half was directed at capital equipment, and the other half in new technologies.
“This latest report illustrates how the £57 billion [$91.7 billion] wave of spending on UK oil and gas projects in 2011-13 that was highlighted in our activity survey is boosting activity and jobs in the well services business,” said Ken Cruickshank, Oil & Gas UK’s supply chain manager.
In 2012, the association forecasts a 6% increase in gross revenue. However, the UK industry has to contend with equipment shortages, reluctance among clients to trial new technologies and challenges in recruiting, training, and retaining skilled personnel.
Cruickshank said: “With strong spending on UK oil and gas projects forecast to continue, the well services sector has the potential to grow even further and of course, we are yet to see the effects of the measures announced in the 2012 Budget to stimulate investment in UK oil and gas projects.
“Oil & Gas UK will work with its members to ensure the challenges of growth are addressed so that the well services sector can maximize its contribution to British employment and technology.”