Firms delivering well services in the UK North Sea generated record gross revenue of £1.9billion in 2012, a survey has found.
Industry body Oil and Gas UK (OGUK) said yesterday its latest study of companies responsible for drilling, completion, testing and maintenance also showed growing employment.
The number of technicians and graduate engineers employed in the UK by well service contractors rose to 2,200 and 1,700 respectively last year, with new recruits in both groups also increasing, OGUK said.
It also said the sector continued to invest in future capacity during 2012, with spending on equipment and technology rising by around 5% to £123.3million.
Last year’s gross revenue total was the highest since records began in 1996 and a 5% increase on the £1.81billion recorded in 2011.
Business Secretary Vince Cable said the figures underlined the value of UK oil and gas expertise, adding: “They also emphasise the value and potential growth of the industry to make a stronger UK economy.”
OGUK said the higher-than-expected rise in gross revenue could be attributed to a variety of factors, including the growing number of technically complex wells needing the specialist knowledge of well service contractors.
Oonagh Werngren, the group’s operations director, added: “Once again, well service contractors have achieved robust growth.
“They are contributing significantly to the economy and innovation, while creating new jobs for highly skilled people.”
But she warned that the UK sector was facing intense competition from other booming oil and gas regions around the world.
The survey showed a 19% rise in the number of UK employees working overseas to deliver well services outside the UK.
Ms Werngren said: “Attracting, retaining and engaging skilled personnel here in the UK represents a challenge to the industry, one which is being addressed, together with government, to ensure that this sector, alongside others, can continue to flourish.”
The well service firms surveyed forecast that gross revenue would rise by about 5% this year, but they expected growth to be hindered by continuing concerns about the limited supply of skilled workers and the availability of equipment.
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