Offshore Energies UK’s (OEUK) 2025 Supply Chain Report highlights the need to build on the UK’s industrial strengths in energy production to drive economic growth and secure the future of the North Sea.

With over 50 years of expertise in North Sea oil and gas, the offshore energy supply chain is crucial to the UK’s ambitions for secure, sustainable, and cleaner energy. However, OEUK’s sentiment survey shows that nine out of 10 companies see greater opportunities abroad due to uncertainty and a challenging domestic business environment.

The report identifies barriers to growth, including low revenues from renewables and declining investor confidence, while outlining key actions industry and government can take to strengthen the UK’s energy sector. Recommendations include fostering collaboration across the supply chain and ensuring government backing for UK capabilities in offshore wind, hydrogen, and carbon capture and storage (CCS).

The UK’s offshore energy supply chain spans the country, from Shetland to Southampton and Morecambe Bay to England’s Eastern Seaboard. It consists of hundreds of businesses, from FTSE 100 firms to small and medium enterprises developing new technologies. This network provides essential services, from designing mooring systems and installing subsea cables to decommissioning offshore structures and maintaining pipelines. Many firms are developing world-leading expertise in floating offshore wind and decommissioning.

Katy Heidenreich, OEUK’s supply chain and people director, said:“he UK is competing internationally for energy investment so it’s concerning that many offshore energy supply chain firms see more attractive opportunities to grow their business overseas. We’ve set out key steps industry and government can take to position the UK as first choice for the offshore energy supply chain companies.

“To grow the whole UK’s economy, we need energy policy that supports continued investment in homegrown oil and gas alongside an acceleration of renewable energy.

"Around 60% of companies surveyed for the report are diversifying into offshore wind, hydrogen, and carbon capture and storage, but business revenues from renewables and CCS still represent a relatively low proportion as they make up between zero and a fifth of their turnover.

“OEUK is currently engaging with critical government consultations on future of our North Sea from industrial strategy to oil and gas licensing, environmental impact, and a new fiscal regime. It’s vital we get this right to create a positive business environment in the UK for our supply chain.

“The offshore energy sector underpins industries vital to Britain’s future, including steel, cement, shipbuilding, and automotive manufacturing. Carbon capture will also be crucial in helping these industries transition. With 60-80% of the capabilities needed to lead the net-zero transition, our companies and highly skilled workforce are committed to delivering secure and affordable homegrown energy.

"The UK government is rightly ambitious to develop the clean power capabilities to support its industrial strategy, but this goal must be delivered in a way that builds our supply chain capability. The prize is a homegrown energy future, not one that is imported.”

The report emphasises the importance of harnessing revenues from the UK’s remaining oil and gas reserves to support supply chain businesses. It also highlights collaborative initiatives such as alliance contracting, shared inventory systems, and improved procurement practices that are helping to create a more attractive commercial environment for operators, developers, contractors, and suppliers.

OEUK’s report comes as pivotal decisions in the coming months will shape the future of the North Sea. The findings stress the need for collective action to ensure companies can remain anchored in the UK while adapting and thriving in the transition to new energy opportunities.