The majority of North Sea oil and gas operators are are considering diversifying into new activities, a survey has found.
The survey was conducted by the Aberdeen and Grampian Chamber of Commerce (AGCC) with the Fraser of Allander Institute and KPMG. A total of 90 firms, employing 55,000 people took part.
The results have been announced as more than £15bn is to be spent on North Sea decommissioning and demand for alternative energy sources, including offshore wind, is set to grow.
Half of respondents reported growing demand for their products and services in non-oil and gas projects, with a quarter actively seeking work outside oil and gas, such as decommissioning and renewables. More than half expected the value of their work to increase. Only 11% said they were not planning further diversification.
Decommissioning was the most popular alternative, favoured by 91% of firms. Of those firms that considered diversification, a third indicated concerns on profitability as the main barrier. A quarter identified recruitment challenges in finding employees non-traditional roles.
Shane Taylor, AGCC research and policy manager commented that the energy mix of the future would be far more diverse than now, providing new opportunities for existing supply chains. He urged industry players to engage with initiatives such as Roadmap 2035 to help them upskill workers and attract the diverse workforce that the industry would need.
Roadmap 2035 is a UK Oil and Gas Industry Association website supporting Vision 2035. Vision 2035 expressed the industry’s ambition to meet as much of the UK’s oil and gas needs from domestic resources as possible, achieve security of supply and transition to a lower carbon future.