Oil & Gas: Growth at Home and Abroad
Oil and gas firms have their sights firmly set on international expansion, while also keeping a close eye on rapidly emerging domestic opportunities.
That’s according to Bank of Scotland’s sixth annual oil and gas sector report, which surveyed companies of all sizes throughout the supply chain to get their insight into what the future holds.
It found an industry that is increasingly looking to the UK Continental Shelf (UKCS) for growth, spurred on by new discoveries and the falling cost of production.
- 54 per cent of all firms see new growth opportunities inside the UK
- 70 per cent of all firms see new growth opportunities outside the UK
- Overseas opportunities being pursued by firms include new contracts (46 per cent), exporting opportunities (33 per cent) and diversification (33 per cent)
The report found an industry returning to what it knows best – assessing opportunities for overseas growth while also exploiting the oil and gas reserves of the North Sea.
Large firms told us that their top targets for international expansion in the next 12-24 months are South America, the Middle East, Australasia, West Africa and the Gulf of Mexico, while recent developments on the UKCS, such as the billion barrel oil find in the Greater Lancashire area, have increased the opportunities available to them at home too.