Scottish oil and gas sales grow globally
A 5.8 percent increase sees oil and gas supply chain sales hit a record £17.2 billion with international trade now accounting for almost 50 percent of total sales.
Scotland’s oil and gas supply chain sales rose by 5.8 percent to £17.2 billion in 2011-12 as the industry enjoyed a fourteenth consecutive year of rising sales.
International activity continued to play a key role in the success of the industry, with Scottish firms active in over 100 markets across the globe and global sales increasing by 8.4 percent to reach £8.2 billion.
The latest figures, released by Scottish Enterprise and the Scottish Council for Development and Industry (SCDI), show international activity accounting for 47.6 percent of total sales, an increase from 31 percent in 2002.
Strongest international growth was reported in the Middle East, but the African region remained the second most important with a 5.9 per increase in sales. New markets of the greatest interest included Brazil, the USA and Australia, with sales in the rapidly growing Australian market increasing by 9.4 percent.
With £2.6 billion of sales and growth of 2.8 percent North America remains the top region for exports while the services sector, including project management, consultancy, construction and maintenance, remains dominant in terms of sales.
The Middle East region saw the biggest increase in Scottish oil and gas supply chain exports in 2011-2012, according to new figures published by Scottish Enterprise and the Scottish Council for Development and Industry (SCDI).
Scotland’s oil and gas sector exports to the region now account for $710 million (£457m), having risen by 82 per cent since 2010.
Total sales of supply chain exports, both direct and through subsidiaries, increased by 5.8 per cent to reach $26.72 billion (£17.2 bn). International sales rose by 8.4 per cent to $12.74 billion (£8.2 bn), exporting to over 100 markets around the world. North America was the largest market, importing $4 billion (£2.6bn) of supply chain exports from Scotland.
Based on a 2010/2011 to 2011/12 comparative, sales within the Middle East increased in the UAE from $190 million (£122m) to $196 million (£126m); Oman $81 million (£52m) to $89 million (£57m); Qatar $22 million (£14m) to $45 million (£29m) and Saudi Arabia from $20 million (£13m) to $42 million (£27m).
David Rennie, Scottish Enterprise’s international head of oil and gas, said: “Growing export levels is a key priority in Scotland’s industry-led Oil & Gas Strategy, because we know that this type of activity has the potential to make the biggest impact on Scotland’s long-term economic growth.
“This latest figures are outstanding, particularly at a time when many regional economies have been stagnating. They show that our expertise in oil & gas remains in increasing demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland.
“We’ll continue to work closely with companies across the oil and gas supply chain to help identify new opportunities for growth at a global level, particularly in our priority markets such as West Africa, the Middle East, Australia and Brazil.”