The UK risks losing the skills and industrial capability needed to deliver its offshore energy projects unless potential demand becomes a sustained programme of commercially viable work. OEUK’s 2026 Supply Chain report finds that just 35% of the 60 companies surveyed are confident about their UK business outlook over the next 12 months, while 8 in 10 expect a greater share of future investment and growth overseas. The findings underline the urgent need to keep competitive offshore energy supply chain capability anchored in the UK.
Comprising a broad cross-section of the offshore energy supply chain, companies surveyed included engineering firms, manufacturers, vessel operators, logistics providers and professional services. Forming the backbone of the industry, they provide the expertise, goods and services that operators and developers need to deliver homegrown energy, supporting skilled jobs in communities across the country, reindustrialisation and lasting UK economic value.
Oil and gas remain the financial foundation of much of the offshore energy supply chain: 9 in 10 companies surveyed derive more than 20% of their revenue from the sector. Expansion into other sectors, including renewables, is underway, but these markets are not yet generating enough work or revenue to replace oil and gas activity at scale. More viable UK oil and gas projects are needed to sustain the people, assets and expertise required across offshore energy while other markets develop.
OEUK has identified £123 billion of potential UK offshore energy capital investment between 2026 and 2035. These projects are not guaranteed to go ahead. Uncertainty over whether and when they will proceed makes it harder for suppliers to commit investment at home.
The risk is that investment, skilled jobs and equipment follow work overseas as companies pursue firmer workloads and stronger returns. International demand offers a major export opportunity, but a loss of UK-based supply chain capacity could leave fewer resources to deliver the country’s homegrown energy projects, including renewables, while also creating bottlenecks and increasing reliance on overseas suppliers.
Success in international markets remains closely intertwined with sustained domestic activity, which enables businesses to further nurture and develop the skills and experience needed to compete on a global scale. Crucially, the greatest benefit is retained when overseas work is delivered from a UK base.
Katy Heidenreich, OEUK’s supply chain and people director, said:
“Oil and gas activity and the revenue it generates remain crucial to sustaining the UK’s offshore supply chain, supporting skilled jobs and giving businesses the means to invest in the energy transition. We cannot afford to lose the people, expertise and industrial capability needed to build our energy future before those new markets can sustain them. A strong UK supply chain is fundamental to delivering homegrown energy, supporting reindustrialisation and capturing the economic value of the energy transition.
That’s why we need continued investment in homegrown oil and gas alongside the expansion of renewables. It must be a managed transition that keeps businesses working, retains value in the UK and supports secure, affordable, lower-carbon energy.”
The findings call for action from both industry and government. Project owners and customers need to provide clearer schedules, earlier commitments and commercially sustainable contracts so suppliers can plan and invest. Government needs to provide greater certainty over regulation, taxation and approvals, unlocking viable UK oil and gas projects alongside long-term investment in offshore wind and carbon capture and storage. Together, these conditions would help retain competitive UK capability and build capacity for future energy demand.
The report can be found at this link here.
