Reputation in Oil, Gas and Mining 2014: Public perceptions


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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.

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Reputation in Oil, Gas and Mining 2014: Public perceptions

  1. 1. Public Perceptions of the UK offshore oil and gas industry Ashley Shackleton, Oil & Gas UK 11 June 2014
  2. 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. 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. 4. Oil & Gas UK portfolio
  5. 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. 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. 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. 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. 9. Where does the UK’s oil and gas come from?
  10. 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. 11. An industry with a long term future
  12. 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. 13. UKCS Fiscal Regime: Current arrangements
  14. 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. 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. 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. 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. 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. 19. Any Questions ? Contact Ashley Shackleton (