UK-based oilfield service companies have come through the financial turmoil of the past few years but have seen their margins squeezed, according to a report on the state of the sector published today.
Ernst and Young’s first UK oilfield service annual review says the sector, worth more than £25billion a year to the UK economy and employing 100,000 people, has enjoyed rising revenue over recent years despite the economic turmoil, with the largest growth area in operations – production and maintenance – from 2008-10.
Aberdeen-based E&Y partner Ally Rule said global growth would be key for UK firms’ longer-term success.
The report noted the number of global firms with UK businesses, suggesting this was due to the skill base developed in the UK, however, Oil and Gas UK chief executive Malcolm Webb said there needed to be a steady pipeline of work to keep UK businesses anchored here and that the 2011 Budget had not helped this.
In addition to production and maintenance and subsea services, the report suggested decommissioning work would also offer a significant prize, while renewables was a possible area of diversification.
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