UK oil and gas sector spend on upward path
Britain’s drilling, completion, testing, and well maintenance sector generated gross revenue of £1.9 billion ($3.05 billion) in 2012.
LONDON – Britain’s drilling, completion, testing, and well maintenance sector generated gross revenue of £1.9 billion ($3.05 billion) in 2012.
According to industry association Oil & Gas UK, which compiled the data for a survey, this was the highest figure since records started in 1996. It reflects increasing oil and gas activity throughout theUK continental shelf.
The number of technicians and graduate engineers employed by well services contractors also rose to 2,200 and 1,700, respectively.
The association added that the sector lifted its investment in equipment and technology by around 5% to $186 million, with some well services contractors allocating up to 90% of their annual capital investment on developing new technologies.
Oil & Gas UK operations director Oonagh Werngren said: “The higher than expected rise in gross revenue could be attributed to a number of factors ranging from increased exploration and production activities since 2011 to the growing number of technically complex wells that require the specialist knowledge of well services contractors.
“The sector is, however, competing with other booming oil and gas provinces around the world with respondents reporting a 19% rise in the number of UK employees working overseas to deliver well services outside the UK.”
UK well services providers expect gross revenue to rise by around 5% this year, the survey found, although growth may be hindered by the limited supply of skilled personnel and availability of equipment.