The oil & gas industry will remain the most important sector to the UK supply chain during the next five years despite the market’s challenging environment, according to new research by NOF Energy.
However, as a result of the steep fall in the oil price and subsequent reduction in offshore activity, the study also reveals the growing diversification among the business development organisation’s more than 450 members.
Released on the eve of NOF Energy’s National Conference and Exhibition, Energy: A Balanced Future, which takes place at the Sage in Gateshead on 8 March, the research reveals that 45 percent of its members’ business is focused on oil & gas. This is a reduction from 50 percent the year before.
This is reflected in the growing diversification among NOF Energy members with the research highlighting sectors such as Offshore Wind, Wave and Tidal, Tidal Lagoons, Power Generation and Waste to Energy joining Oil & Gas in the top ten target sectors for the next five years.
Upstream Oil & Gas remains the priority sector with sub-sectors including subsea, decommissioning, downstream and midstream also featuring in the top ten.
The Top 10 of target sectors are:
1. Oil & Gas – Upstream
2. Renewables – Offshore Wind
3. Oil & Gas – Subsea
4. Renewables – Wave and Tidal
5. Power: Power Generation
6. Oil & Gas: Downstream
7. Oil & Gas: Midstream
8. Oil & Gas; Decommissioning
9. Power: Waste to Energy
10. Renewables: Tidal Lagoon
Other markets, which were outside of the top ten included Power Transmission and Distribution, Shale Gas, and Nuclear new build, life extensions and decommissioning.
All of these sectors will feature heavily in the debates and presentations at Energy: A Balanced Future, highlighting the challenges and opportunities for supply chain companies serving the energy industry and the role they play in delivering a balanced energy mix.
The national conference and exhibition, which is in its seventh year, provides a platform to debate the integral role of a technology-led supply chain in achieving efficient onshore and offshore operations in the changing economics of the international energy market.
Attended by around 450 energy sector professionals and more than 60 exhibitors in 2016, the event features high calibre speakers and panellists from across the key energy sectors and offers important networking opportunities for supply chain businesses.
George Rafferty, Chief Executive of NOF Energy, said: “The past couple of years have been tough for companies operating in the oil and gas sector, but this study shows there is some cautious optimism among the supply chain. The oil price has risen from its lowest ebb last year to currently around the $55 mark, with predictions of further increase. This, coupled with the significant operational and cultural changes that are taking place in the sector, which are reducing costs and increasing productivity, is creating opportunities for technology-led suppliers.
“It is also encouraging to see the increasing cross-section of energy sectors being targeted by our members, which reflects the transferable and innovative skills, products and services developed and deployed by the UK supply chain. This will also be evident at our national conference this week where the importance of diversification in securing the future of the supply chain and the energy industry will be a core part of discussions.”