Offshore Energies UK (OEUK) has released its Supply Chain Report 2026, highlighting growing scepticism among UK offshore energy suppliers and a pronounced shift toward international markets. The survey, which gathered responses from 60 companies across engineering, manufacturing, vessel operations and logistics, reveals that just 35% of participants are confident about their domestic outlook over the next twelve months.
Key Survey Findings
While confidence in the UK market wanes, optimism about overseas opportunities is strong: 80% of respondents expect the majority of future investment and growth to originate outside British waters. The report identifies roughly £123 bn (US$165.5 bn) of potential offshore energy capital spending between 2026 and 2035, yet many of these projects remain uncertain in terms of timing and commercial viability.
Capacity to Expand – If Only the Work Materialises
A striking 95% of firms believe they could increase capacity should domestic offshore activity pick up. However, without reliable contracts and predictable procurement schedules, companies risk diverting staff, equipment and capital to regions offering greater certainty.
Oil & Gas Still Dominates Revenue
Traditional oil and gas operations continue to underpin the sector, with nine in ten surveyed companies deriving more than 20% of their turnover from these activities. Emerging markets such as offshore wind, carbon capture and other renewables have yet to generate sufficient work to replace the scale of oil‑and‑gas contracts.
Calls for Balanced Investment
Katy Heidenreich, OEUK’s Supply Chain and People Director, stressed the need for sustained investment in domestic oil and gas alongside renewable projects. She urged developers to engage contractors earlier in the project lifecycle and to provide clearer, more transparent procurement timetables.
Implications for the UK and the Wider Region
If specialist offshore capabilities migrate abroad, the UK could become increasingly dependent on foreign suppliers for future energy infrastructure. This risk is particularly relevant for maritime hubs such as Cyprus, where the local shipping and logistics community could benefit from an influx of UK‑origin expertise and equipment, provided the right contractual frameworks are established.
Strategic Outlook
The OEUK report serves as a cautionary signal to policymakers and project developers: securing commercially viable contracts and delivering predictable schedules are essential to retain the UK’s offshore supply chain strength. Failure to do so may accelerate the sector’s geographic diversification, reshaping the global landscape of offshore energy procurement.