Scotland business

Further decline in North Sea offshore supply work

Aberdeen harbour Image copyright Thinkstock
Image caption A falling oil price hit demand for offshore supply companies

A new study has confirmed the UK's oil and gas supply chain saw its turnover decline in 2015.

The report by business advisers EY indicates the fall in the price of oil led to a fall in business activity for firms serving North Sea producers.

They anticipate the international price of oil will mean 2016 saw a continuation of the downward trend.

But its authors said the industry still makes a significant contribution to the UK economy.

EY's Review of the UK oilfield industry will be launched formally in Aberdeen later.

It is expected to show the overall turnover of the UK oil and gas industry was £36bn - the third-highest annual level on record.

Part of that has been attributed to firms winning work internationally as the North Sea declined.

EY's analysts will indicate room for optimism, with oil prices becoming more stable and takeover deals stimulating new investment.

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