Report on reduced subsea earnings

A report by Subsea UK claims that delays in activities to recover the remaining oil-and-gas reserves have led to a reduction in earnings in the sector.

The organisation, which was set up to champion Britain’s subsea sector, claims that subsea developments are a cheaper and more environmentally friendly way to tap new oil-and-gas reserves.

Alistair Birnie, Subsea UK’s chief executive, said: ‘Given the efforts to bring down costs in a mature basin such as the UK Continental Shelf, subsea developments are critical to sustaining production here and increasingly around the world. Indeed, 43 per cent of UK production is now accounted for by subsea wells and subsea goods and services are exported to the value of £2bn per year.’

Subsea UK’s report reveals that the recession has weakened confidence in the sector, with increasing uncertainty across the supply chain. While tendering activity continues to remain high, the study also notes a growing evidence of pressure on prices.