Three Years and Subsea Energy Rockets
By Anne Lewis-Schneider
Talk about really fast growing sectors, and Subsea, a UK oil and gas sector is one of the fastest growing of these sectors, and this trend is set to continue to spiral upward. This is according to the leading trade body, which states that the UK Subsea sector has grown in leaps and bounds by a whopping 50 % over the last three years, putting its worth currently estimated at £8.9 billion. On the global front, the UK is a front-runner in the oil and gas energy sector with a 45 % share in this £20 billion market.
In a survey conducted on more than 750 companies, over the full length of the chain of supply, overall 66 000 jobs are supported by this sector, a figure which will most likely keep growing. 53 000 people are directly employed and a further 13 000 benefit from employment indirectly. This makes Subsea of vital importance to the UK economy, with 16 000 jobs created in the past three years. Almost 40 % of those companies that were polled said that they were not supplying to the renewables sector, with less than 9 % of turnover among 28 % of the companies.
Growth over the next three years is expected to be in the region of 20 % and if these predictions bear fruit then the Subsea sector could rise to a staggering £11.1billion by 2016. Neil Gordon who is the chief executive of Subsea UK has said that it is not a surprise that such a small percentage of turn-over is in renewables. He went on to add that the demand for Subsea is destined to most likely grow in the foreseeable future. Umbrella contractors will see a forward knock-on effect throughout the oil and gas energy sector. Some companies have not yet expanded to include catering for the renewables sector.
In conclusion it would appear that the growth of Subsea can only be seen as a positive indicator for the future economic wellbeing of the UK with both employment opportunities in the future and growth of the UK oil and gas sector overall.
Neil Gordon predicts that the demand for Subsea is likely to expand in the future, with nearly 45 % of the UK Continental Shelf production coming from Subsea wells, and 70 % coming from future developments and expansion.
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