Scottish Oil & Gas Supply Chain Posts Record Revenues

BOSTON and EDINBURGH, Scotland, June 20, 2011 /PRNewswire/ -- Scotland's oil and gas supply chain continued to post record revenues during the recent global recession, with total sales rising by 3.7% to 15.9 billion pounds sterling (approximately $26.1 billion dollars) in 2009, according to a new survey published jointly today by Scottish Enterprise, Scottish Development International and the Scottish Council for Development and Industry (SCDI).

This was driven by international sales which increased by 10.4% to 7.2 billion pounds sterling (approximately $11.8 billion dollars). Sales to the UK, the largest market, were resilient during the year and stood at 8.7 billion pounds sterling (approximately $14.3 billion dollars).

The Scottish Enterprise survey of International Activity in the Oil and Gas Sector, which was carried out by SCDI, showed:

• North America remained the top international market, accounting for almost a third of total international sales with 2.3 billion pounds sterling (approximately $3.7 billion dollars) of sales targeted into this region.. The African market showed strong growth, with total international sales into the area rising by 17.9% from 1 billion pounds sterling (approximately $1.6 billion dollars) in 2008 to 1.2 billion pounds sterling (approximately $1.97 billion dollars) in 2009. Sales into countries of the former Soviet Union and Eastern European markets showed growth of 3.6%, from 580 million pounds sterling (approximately $951 million dollars) to 601 million pounds sterling (approximately $986 million dollars)

• The top five total international markets, combining direct and subsidiary exports, were the United States, Canada, Angola, Norway and Australia. International sales into Australia rose by 83% from 276 million pounds sterling (approximately $452 million dollars) in 2008 to 504 million pounds sterling (approximately $806 million dollars) in 2009. The largest international markets for direct exports were Angola, Norway, the USA and Nigeria

• International activity accounted for 45.4% of the Scottish supply chain sales total at 7.2 billion pounds sterling (approximately $11.8 billion dollars).This figure was comprised of sales from subsidiary companies, 4.7 billion pounds sterling (approximately $7.7 billion dollars), and direct exports from Scotland, 2.5 billion pounds sterling (approximately $4.1 billion dollars). International sales activity was reported in 107 different country markets

• In 2009, Scottish-based service / supply companies generated a record 15.9 billion pounds sterling (approximately $26 billion dollars) in domestic and international sales. This compares with total sales of 15.4 billion pounds sterling (approximately $25.3 billion dollars) in 2008

• Supply chain sales to the domestic market remained resilient during the year, standing at 8.7 billion pounds sterling (approximately $14.2 billion dollars) in 2009 compared with 8.8 billion pounds sterling (approximately $14.4 billion dollars) in 2008

• In terms of supply chain sales into non oil and gas sectors, the power generation sector dominated accounting for 669.4 million pounds sterling (approximately $1.1 billion dollars). Sales into the renewable energy sector increased from 17.9 million pounds sterling (approximately $29.3 million dollars) to 23.3 million pounds sterling ($38.2 million dollars) in 2009, an increase of 31%, and are anticipated to grow as business opportunities, particularly in the offshore wind sector, emerge and develop in the next five years.

"The results of the survey clearly establish North America as a top international market for Scotland's oil and gas global sales," said Danny Cusick, President of the Americas for Scottish Development International.  "The increase of Scotland's North America sales will further Scotland's global reputation for dynamism, drive, vision and innovation while opening doors of future opportunity for emerging markets, such as renewable energy."  

The full report can be found at the following link:

http://www.scottish-enterprise.com/~/media/SE/Resources/Documents/MNO/Oil-and-gas-sector-report-0910.ashx

About Scottish Development International

Scottish Development International (SDI) is a government agency which helps overseas businesses tap into Scotland's key strengths in knowledge, high level skills, technology and innovation. SDI also works to help Scottish companies do more business overseas and to promote Scotland as a good place to live and work. SDI has six offices in North America including Boston, New York, Chicago, Houston, San Jose and Toronto.  Its work is guided by the Scottish Government's strategy for economic development in Scotland

For more information regarding Scottish Development International contact Kathleen Tepfer (617) 692 7362 or visit our website at www.sdi.co.uk

SOURCE Scottish Development International