Survey warns UK offshore energy supply chain may shift overseas amid project delays

(WO) - A new industry survey warns that persistent delays across UK offshore oil, gas and wind projects are creating a widening activity gap that threatens the long-term viability of the nation’s underwater supply chain. 

According to the Global Underwater Hub’s (GUH) Business Survey 2025, nearly all respondents (96%) said offshore energy and infrastructure work is progressing too slowly, while 81% warned that project development is not keeping pace with the country’s needs. The slowdown is prompting concerns that companies may shift assets and personnel overseas, with 82% of firms saying current UK supply chain capacity is no longer aligned with demand.

GUH CEO Neil Gordon said the data confirms long-standing concerns that declining oil and gas activity and delayed renewables timelines are creating a “vacuum of inactivity” in the domestic market.

“Our latest business survey shows this is already playing out,” Gordon said. “There is a real possibility this gap will be filled by fast-moving international projects, drawing away our assets, facilities and skilled personnel. A return to the UK will be incredibly unlikely, even when our own projects eventually begin.”

Despite the uncertainty, the study found the UK underwater market has grown modestly from £9.2 billion in 2024 to £9.4 billion in 2025, driven largely by international construction and export opportunities. Exports now account for 43% of total revenue across the underwater supply chain.

Gordon said the sector increasingly sees stronger prospects overseas, citing shorter project timelines, more supportive policy frameworks and higher activity levels in international markets. Without action, he warned, the UK risks losing a globally competitive supply chain that has underpinned decades of subsea innovation.

Ahead of the Autumn Budget, GUH is urging government action to accelerate project approvals, provide policy certainty, strengthen workforce development and support diversification. Gordon said decisive steps are needed to close the “energy transition gap” and ensure UK offshore and underwater companies remain globally competitive.

“The UK has the capability and capacity to lead,” he said. “But confidence is eroding. This is a pivotal moment—policy, investment and project flow must align with the supply chain’s readiness and ambition.”