The offshore oil and gas industry has grown and evolved for over 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 2016, capital investment in the UK offshore oil and gas industry was £8.3 billion.
- The industry spent £7 billion operating its assets.
- In the face of lower oil prices, the industry reduced unit operating costs by 48 per cent from almost $30 in 2014 to around $16 by the end of 2016.
- 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 Business Outlook 2017
A source of income for the UK
- Since 1970 the industry has paid almost £330 billion in production tax, the equivalent of around three years of NHS bills for England in today’s money.
- 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
- Over 300,000 jobs in the UK continue to be supported by oil and gas production.
- The UK oil and gas supply chain spans the length and breadth of the country, servicing both domestic activities and exporting almost £12 billion of goods and services to other basins around the world.
- 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 2017