Rising number of North Sea oil and gas firms engaged in Energy Transition

Almost 40% of North Sea operators and contractors are concerned about diversification and energy transition with around half (49%) working to reduce their carbon footprints or develop low carbon solutions, according to an industry report.

The findings of the 31st Oil and Gas survey, conducted by Aberdeen & Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute and KPMG UK, reveal that more than half (52%) of respondents report an increasing demand for their products and services in non-oil and gas projects, with a further 25% actively pursuing work outwith oil and gas, and only 11% planning no further diversification.

A growing number of businesses are seeing opportunities in less traditional activities such as decommissioning and renewables. A total of 86% of firms expressed some likelihood of engaging in decommissioning activity in the medium term, the highest result since the question was introduced in 2010.

The survey also shows the highest proportion of contractors since 2016 indicating expected involvement with renewables work in the near future, showcasing the changing nature of opportunities across the supply chain.