Ashley Shackleton, external affairs Officer, Oil & Gas UK The oil and gas industry is by some margin the single largest industrial contributor to the UK economy. In addition to its economic contribution, and its role in protecting energy security, the industry is a world class driver of innovation in UK science and technology. The oil and gas industry also creates and sustains an impressive number of skilled and valued jobs. Unfortunately these facts are not well known or understood. By proudly and consistently telling our story we will raise awareness about our contribution, improve understanding of what we contribute, and ensure we attain the support and recognition we need to thrive as an industry. This session will explore the public’s perceptions of the UK oil and gas industry and how we may hope to change them.

1. Public Perceptions of the UK
offshore oil and gas industry
Ashley Shackleton, Oil & Gas UK
11 June 2014

2. Oil & Gas UK – the voice of the UK’s offshore industry
• Leading representative body
• 40 year heritage
• Embracing the whole of the E&P (Exploration and
Production) supply chain
• The definitive source of information about the UK
upstream
• The gateway to industry networks and expertise

3. Oil & Gas UK - Strategic Objectives
• Maximise recovery of oil and gas reserves from the UKCS
• Ensure a sustainable long term future for the UK supply
chain
• Raise the positive profile and reputation of the industry,
highlighting the contribution it makes

4. Oil & Gas UK portfolio

5. This afternoon’s objectives
• Why do public perceptions matter?
• What do the public think about us?
• How do we overcome these challenges?
• What are our key messages?

6. Why are perceptions for the UK oil and gas industry
important?
• Politicians listen to the public – they determine our
licence to do business
• Now is the moment to tell our story
• Some momentum behind us and a great prize within our
grasp
• Creating tomorrow’s skilled workforce

7. What are the publics perceptions of Oil and Gas?
• The contribution of oil and gas in the UK energy mix is undervalued
• Don’t we import most of it from overseas
• Number and types of jobs available are not widely known
• Long term sustainability questioned
• Safety concerns
• Not taxed enough
• Economic benefits the UK reaps from the sector are undervalued
• Its major engineering and technology achievements are not known

8. UK Energy: Looking at the big picture
Electricity
Heat
Transport
~1/3
~1/3
~1/3
Predominantly
oil products
(also world-wide)
Coal, gas, nuclear,
renewables plus some
inter-connection (F, NL)
Mainly gas, e.g.
80% of homes
Gas is the largest source of primary energy in the UK, followed by oil, then coal

9. Where does the UK’s oil and gas come from?

10. The Oil and Gas industry is a major employer in the UK
+36,000 (employed by operating companies)
+200,000 (employed in the supply chain)
+112,000 (in jobs induced)
+100,000 (in the exports of goods and
services)
=450,000

11. An industry with a long term future

12. 750
280
470
579
670
900
980
990
1090
1670
All Industries
Finance/Business
Education
Offshore Oil & Gas
Wholesale/Retail
Public Admin
Health/Social Work
Manufacturing
Construction
Transport/Storage
Estimated Rate of Reportable Nonfatal injury to workers by SIC Industry Sector, per 100,000 workers
Source: HSE
Non Fatal Injury Rate by Industry Sector- Average 2008/09- 2010/11
Outstanding HSE performance is imperative

13. UKCS Fiscal Regime: Current arrangements

14. Economic Contribution
• A major industrial success
– Recovered 42 billion barrels of oil and gas
– Invested £ 320+ billion
– Paid £ 300+ billion in production taxes and due to pay another
£6.5 billion this year
– The supply chain pays around another £5 billion a year in
corporation and payroll taxes

15. The benefit of the UKCS supply
chain is felt across the UK
UK oilfield services sector:
• £35 billion turnover
• £14.7 billion in exports of goods
and services to more than a 100
countries
• Turnover increased by £11.4bn
between 2008 and 2012
• Global leader in sub-sea, deep
water, reservoir management
and technology, engineering
management and project
execution

16. The UK Offshore Oil and Gas Industry Today
Global
Leader
in
Subsea
Britain’s
Best Kept
Industrial
Secret
£14
Billion
pa
ExportsLargest
Industrial
Investor
Largest
Corporate
Tax Payer
Supports
employment
for 450,000
people
Supply
Chain -
Centre of
Excellence
£40 Billion
pa Support
for UK BoT
Producing 50%
of UK Total
Energy
Requirement

17. Lessons learned - summary
• The more people know and understand, the more positive their perceptions of the
industry become
• The messages of economic contribution, innovation and skilled, well paid jobs works
well in improving industry
• Communicating the facts and human stories of industry shifts perceptions for the
better.
• Building relationships amongst stakeholders is important
• Demonstrate the breadth and global expertise of our supply chain
• Tell the story with the theme most relevant to the particular company
• Great history but must be forward looking
BUT
• Energy policy is complicated
• Public find it hard to differentiate between upstream, downstream and utility
companies
• Current environment around energy companies is hostile

18. Our story: The UKCS in 2014
• A challenging province, too often ignored,
yet truly a national treasure
• Providing the UK with
– Energy security
– Economic value
– Employment, skills and technology
• A great prize remains …… but cannot be taken for granted

19. Any Questions ?
Contact Ashley Shackleton
(ashackleton@oilandgasuk.co.uk)