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Publish Date : 17-Mar-2015

The Onshore Energy Services Group (OESG) has released a new policy paper, saying that, the right support could help shale gas supply chain SMEs and their workers generate over Ł1.49bn in taxes for the Government one day to spend on key public services. Chief executive Lee Petts was presenting the paper, which was released before the Budget on Wednesday, to the UK Shale Gas and Oil Forum.

The Preston-based CEO, was expected to say : "British SMEs in the existing onshore oil and gas supply chain have both the capabilities and the appetite to play a big role in making shale gas a truly British success story. If they could replicate the success of their aerospace counterparts and claim 55 per cent of the prize predicted by EY last year, supply chain SMEs could one day be responsible for tens of thousands of jobs, with the workforce alone contributing a staggering Ł1.33bn to the economy through their taxes. Taxes on business profits could yield a further Ł0.16bn. That’s badly needed money, enough to pay for 21,716 GPs, or 50,011 nurses, or 55,657 teachers."

He added: "But unless the operators and Government do more to create the conditions for SMEs to thrive, there’s a real risk the supply chain will come to be dominated by foreign interests and an imported workforce." The OESG is asking the Government to introduce a requirement for compulsory supply chain strategies, and to expand the Advanced Manufacturing Supply Chain Initiative to include shale gas operations.

It is also creating procurement guidelines with the aim to boost the opportunities for smaller enterprises when bidding for contracts, and hopes that the onshore sector will implement these principles as standard. Boss of Remsol, Mr Petts, is also expected to say: "Whilst we welcome the work Government has been doing to create a policy environment that favours onshore oil and gas development as part of the UK energy mix, we hope the Chancellor will use the Budget Statement to announce specific measures aimed at safeguarding the future of home-grown supply chain SMEs."

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