The UK offshore energy supply chain faces growing uncertainty over future domestic contracts, with most surveyed companies expecting greater investment and business growth overseas, according to a new report from Offshore Energies UK (OEUK).
The industry association’s Supply Chain Report 2026 found that only 35% of 60 companies surveyed were confident about their UK business outlook over the next 12 months. Eight in ten expect a greater share of future investment and growth to come from international markets.
The survey covered engineering contractors, manufacturers, vessel operators, logistics providers and other businesses serving offshore energy developments.
Investment Pipeline Remains Uncertain
OEUK identified £123 billion of potential capital investment in UK offshore energy projects between 2026 and 2035. However, the organisation stressed that these projects are not guaranteed to proceed.
Uncertainty over whether and when planned projects will proceed makes it difficult for suppliers to commit investment and resources to the UK market.
According to OEUK, nine in ten surveyed companies generate more than 20% of their revenue from oil and gas activities. Although suppliers are expanding into offshore wind and other emerging energy sectors, these markets have yet to generate sufficient business to replace traditional oil and gas activity at scale.
Risk to Offshore Capabilities
The findings highlight concerns for the wider offshore supply chain, including specialist engineering businesses, vessel operators and logistics contractors.
OEUK warned that companies pursuing more predictable workloads overseas could also relocate equipment, investment and skilled personnel. This could reduce the UK’s domestic capacity to support future offshore energy projects.
The organisation said international business remains important to British suppliers, particularly when overseas contracts can be delivered from UK facilities.
Katy Heidenreich, OEUK’s supply chain and people director, called for continued investment in domestic oil and gas alongside the development of renewable energy projects.
In its official statement, OEUK urged project owners to provide clearer procurement schedules, earlier commitments and commercially sustainable contracts.
It also called for greater regulatory, tax and project approval certainty to support investment decisions.
Why This News Matters
For offshore vessel operators and marine service contractors, the report highlights the importance of converting planned energy developments into confirmed work.
OEUK’s findings show that a substantial potential investment pipeline does not necessarily provide the contract certainty required to maintain domestic equipment, engineering capability and skilled personnel.
The report identifies continuity of offshore activity, predictable procurement schedules and commercially viable contracts as key conditions for retaining the UK supply chain’s capacity to support future energy projects.
