North Sea firms expect a big increase in non-fossil fuel business, a report finds

The survey found the majority of companies in the sector expect revenue to rise in 2022

North Sea firms expect to see their share of business outside oil and gas more than double by 2030, according to a new report.

Aberdeen and Grampian Chamber of Commerce (AGCC) said its survey findings suggested companies predicted 47% of business would come from outside the sector, compared with 21% now.

More than half aim to increase headcount in the next three years.

The findings came in the 34th AGCC Oil and Gas Survey.

However, the Oil and Gas Transition Survey warned a lack of skilled talent could be an obstacle to transition.

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The survey was carried out in partnership with the Fraser of Allander Institute and KPMG UK.

It found 69% of companies in the sector expected revenue to rise in 2022.

Aberdeen is seen as being at the heart of the oil and gas industry

And three quarters reported being either moderately or extremely optimistic about Aberdeen, Scotland and the UK playing a leading role as a future energy hub.

The survey found two in five companies in the sector had not yet committed to carbon neutral targets.

'Clear fork in road'

Martin Findlay, senior partner at KPMG in Aberdeen, said: "As we cautiously emerge from the pandemic, the direction of travel is clear amongst oil and gas companies who are gearing up for a decade of rapid sustainable transformation.

"Most oil and gas firms are now doing far more than paying lip service to sustainability with the vast majority believing that strong sustainability credentials are critical to their long-term success."

He said firms now faced "a clear fork in the road - evolve and thrive or be left behind".

Mr Findlay added: "It's clear the industry is on the cusp of transformation, and with many businesses having already chosen their path - and heading towards a greener future, the question is how many more will follow and how quickly."

Russell Borthwick, chief executive at AGCC, said the results illustrated that firms in the sector envisage the transition "picking up pace rapidly over the next decade".

He said: "The industry is clearly committed to taking a leading role in delivering the UK's net-zero ambitions."

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