NOF Energy: Offshore Wind Needs More Work on Securing UK Content

The energy sector supply chain remains positive about facing the challenges of a changing UKCS landscape in 2015 and beyond, according to NOF Energy 2014 annual survey of its members.

The annual survey charts the activities and views of the industry of its almost 500 UK and international members along with their opinions of the organisation’s business development services. NOF Energy works closely with its members to provide industry intelligence, market knowledge and networking opportunities that can lead to new business.

Despite the recent softening of the oil price and a substantial programme of cost control by operators and contractors on offshore projects, 92 percent of NOF Energy’s membership, believe that the oil & gas sector will remain the most important part of their business going forward.

The survey also reveals members’ views on the nuclear, renewables and shale gas sectors. Offshore wind has become more of a focus as some work is starting to filter through to the supply chain, but so much more remains to be done to secure UK content on these projects.

Interest in the nuclear sector remains the same, but the development of the shale gas industry, both in the UK and overseas remains key to 60% of members going forward. Interestingly some already have established links with the sector, particularly in the US shale gas market.

Remaining on the international theme, the United States has overtaken Norway as the primary export market for NOF Energy members with 46 percent trading with America. The other leading export markets for NOF Energy members include United Arab Emirates, Brazil and Australia.

NOF Energy members also took the opportunity through the survey to highlight four key challenge areas facing the supply chain in 2015, aside from the already highlighted cost reduction expectations.

Firstly was the ability to access decision makers in Tier 1 and 2 contractors and operators followed by raising awareness of products and services to target markets. The other two challenges are the recruitment of qualified personnel and the increase in competition from within the UK and overseas supply chain.

In terms of the performance of the NOF Energy team, members gave an 85 percent approval rating of NOF Energy’s range of services and an 80 percent approval rating on the value for money membership of the organisation offers.

These results offer a fantastic endorsement of an organisation that has generated over £100 million worth of new business for members in the last few years.

George Rafferty, Chief Executive of NOF Energy, said: “The ongoing importance of oil & gas to our members is clearly reflected in our survey, but the current challenges facing the industry have not dampened our members’ ambitions. Their innovative, technology-led products and services and considerable industry experience will enable them to meet and exceed operator and lead contractor supplier requirements.

“NOF Energy is working with the industry through our network of partners and contacts to facilitate a greater awareness of our members’ capabilities within the sector to ensure they are in a prime position to play a key role in future offshore activity.”

George added: “With exports forming a substantial element of our members’ operations and the increased interest in onshore gas developments, particularly in the United States, international trade will remain a core element of the support services provided by NOF Energy.

“Our Houston network, established this year, is already encouraging new opportunities for trade between the UK and the US; alongside the work we are doing in a number of other international markets where we are supporting our members’ business development plans.”

George concluded: “Our annual survey has demonstrated the value of our services to our members and the role NOF Energy has to play in supporting the supply chain. In the last year more than half reported that they’ve received valuable business leads through their membership, which are essential if they are to succeed in the increasingly competitive and cost-driven market.

“Therefore, while they overcome the current challenges in the oil & gas sector in particular, NOF Energy will be freezing its membership costs for 2015 to show that it appreciates the challenging times ahead but at the same time boosting the resource to ensure we can meet the demand from members who may need our business development support more than ever.” 

Press release; Image: NOF Energy