80% of UK offshore energy suppliers eye overseas growth as domestic projects stall

Four out of five UK offshore energy supply chain companies expect their future investment and growth to come from international markets, not Britain, according to Offshore Energies UK's Supply Chain Report 2026. Just 35% of the 60 firms surveyed said they were confident about their UK business prospects over the next 12 months.

The numbers land at a delicate moment. OEUK identified approximately £123bn ($165.5bn) of potential UK offshore energy capital investment between 2026 and 2035, but warned that many of those projects remain uncertain — and that uncertainty is now shaping commercial decisions across engineering firms, manufacturers, vessel operators and logistics providers.

Why are suppliers looking abroad?

The core problem is schedule visibility. Without commercially viable contracts and predictable project timetables, suppliers risk redirecting personnel, equipment and capital to countries offering greater certainty, OEUK said. That's not a hypothetical: 95% of surveyed companies believe they could expand capacity if domestic offshore activity picked up, which means the capability exists in the UK but the order book doesn't back it.

For logistics and vessel operators, the consequence is concrete. Equipment and crews follow contracts. If those contracts land in Norway, the Middle East or Asia, the UK's specialist offshore fleet and engineering base will follow, and rebuilding it later will cost far more than retaining it.

How exposed is the oil and gas base?

Heavily. Nine in ten surveyed companies derive more than 20% of their revenue from oil and gas, making the sector the financial backbone of the entire offshore supply chain. OEUK's warning is blunt: offshore wind, carbon capture and other emerging energy markets have not yet generated sufficient activity to replace traditional oil and gas work at scale.

That gap creates a squeeze. Legacy hydrocarbon work is winding down faster than renewable and low-carbon projects are scaling up, leaving suppliers with capacity but insufficient viable domestic demand to fill it.

Katy Heidenreich, OEUK's supply chain and people director, called for continued investment in domestic oil and gas alongside renewable energy developments. The trade body also urged project developers to engage contractors earlier in the project cycle and publish clearer procurement schedules.

What does the UK risk losing?

Specialist capability, permanently. OEUK cautioned that losing specialist offshore capabilities now could leave the UK increasingly dependent on overseas suppliers when future energy projects — including wind and carbon capture schemes — finally move into construction.

The report's survey base spans the full breadth of the offshore support ecosystem: engineering companies, manufacturers, vessel operators, logistics providers and other businesses serving offshore energy developments. Their collective verdict — 80% looking internationally for growth — signals a supply chain already repositioning itself before the UK's investment pipeline firms up.

The stakes run beyond commercial outcomes. OEUK flagged threats to investment, jobs and specialist engineering capacity as domestic project uncertainty persists, framing the next 12 months as a critical window for retaining the industrial base.

Whether the £123bn pipeline converts into firm contracts, and how quickly developers commit to transparent procurement timelines, will determine whether the UK offshore supply chain stays anchored at home or continues drifting toward more predictable markets abroad.