The offshore oil and gas industry has grown and evolved for 50 years. To date, this sector has paid more to the Treasury than most other industrial sectors, generated hundreds of thousands of skilled jobs, formed a vibrant supply chain servicing oil and gas activity at home and abroad, and made a key contribution to the UK’s security of energy supply.
Investing in the UK
- In 2015, capital investment in the UK offshore oil and gas industry was £11.6 billion.
- The industry spent £8.2 billion operating its assets.
- In the face of lower oil prices, the industry reduced unit operating costs by 45 per cent from almost $30 in 2014 to around $16 by the end of this year.
- The sector is working with the Government and Oil and Gas Authority to maximise economic recovery of the UK’s substantial remaining oil and gas reserves.
Find out more in our Economic Report 2016
A source of income for the UK
- Since 1970 the industry has paid more than £300 billion in production tax, the equivalent of more than three years of NHS bills for England in today’s money (the NHS budget in England was set at £100 billion for 2015).
- The industry paid £2.2 billion in production tax in 2014/15 and several billion more in corporate and payroll taxes through the supply chain.
- The tax rate on oil and gas production of 40 per cent is double that paid by other UK industries.
Find out more about the industry through this short film
More than just monetary value from production
- In 2016, just over 330,000 jobs in the UK will be delivered through or supported by oil and gas production.
- Around 200,000 people now work in the supply chain on UK oil and gas projects and in exporting oilfield goods and services.
- UK-wide, the supply chain generates £30 billion of revenue a year made up of domestic sales and export of goods and services overseas.
- The supply chain is active throughout the UK with contracts being won from the north of Scotland to southern England.
Find out more in the Economic Report 2016