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Review of the UK oilfield services industry

EY’s review of the UK oilfield services (OFS) industry analyses 2017’s trading information – turnover, growth, EBITDA and exports – of UK registered OFS companies in five subsectors: reservoirs; wells; facilities; marine & subsea; and support & services.

Download the full UK report

Profitability

As upstream company margins and capital structures improve, will this increase OFS margins?

Technology

Which opportunities present the best bet to secure a definitive competitive advantage?

Sustainability

How much of the structural cost savings are sustainable?

Skills

What is the skills profile and composition of the workforce of the future?

UK oilfield services: can the industry secure a successful future?

EY - Derek Leith Derek Leith
Global Oil & Gas Tax Leader

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Despite there being a general sense of gradual recovery in the oil and gas sector, our eighth annual review of the UK’s OFS industry highlights that 2017 continued to be a tough year, and we expect that trend to continue into 2018.

While the OFS sector has most probably come through the bottom of the cycle, in 2017 there is clearly no let up in the pressure on costs. Therefore the strategy for the sector remains broadly the same: focus on competitive advantage; obtain pricing uplift through integrated service offerings; achieve economies of scale and have a clear commitment to technological innovation aligned with the agendas of the E&P companies. Of course the sector must also maintain a focus on people — the downturn saw a significant reduction in headcount and the consequent loss of a great deal of skill and experience from the OFS sector.

The UK OFS industry generated
£26.9bn turnover in 2017 and employed more than
109,000 people.

The revenue from exports generated £10.5/bn in 2017.

The operating costs per barrel in the UKCS stabilised at around US$15/boe in 2017, after halving between 2014 and 2016.

EY Review of the UK Oilfield Services Industry – January 2019

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Andy Brogan, EY Global O&G Leader for Transaction Advisory Services, and Celine Delacroix, EY Global Oilfield Services Transformation Leader and EY EMEIA Head of Oilfield Services, discuss the transition process in the global oilfield services market.

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Are green shoots appearing?

Stuart White, Transaction Advisory Director, shares his views on the slow return of confidence to the UK OFS industry, and where companies should focus to remain competitive and develop a critical differentiator.

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Contact us

EY - Derek Leith

Derek Leith

Partner, Tax
Global Oil & Gas Tax Leader
+44 (0)1224 653 246
EY - Andy Brogan

Andy Brogan

Partner
Global Oil & Gas Leader for Transactions Advisory Services
+44 (0)20 7951 7009
EY - Jon Clark

Jon Clark

Partner
EMEIA Leader for Oil & Gas Transaction Advisory Services
+44 (0)20 7951 7352
EY - Celine Delacroix

Celine Delacroix

Executive Director
Global Oilfield Services Transformation Leader and EMEIA Head of Oilfield Services
+44 (0)20 7806 9204
EY - Stuart White

Stuart White

Director
Transactions Advisory
+44 (0)1224 653 199
EY - Andrew Deane

Andrew Deane

Executive Director
Advisory
+44 (0)131 777 2226
EY - Adam Holden

Adam Holden

Media enquiries
Media Relations Senior Manager
+44 (0)121 535 2128
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Jill Simpson

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