78% of UK companies reported growth in 2024, with revenues climbing 16% on average. Yet beneath the surface, frustration is boiling over. Executives describe a sector succeeding despite the government, not because of it. This is according to the UK’s largest energy trade association.
The Energy Industries Council’s (EIC) latest Survive & Thrive report, based on interviews with 140 global energy firms, reveals a stark disconnect. While the UK industry is technically thriving, 77% of local respondents cite incoherent policy as their top concern. One CEO’s blunt quote captures the mood: "Get a grip – stop tweaking and messing around and start developing a proper strategy and be fast about it."
Nearly 28% of respondents criticised UK policy "short-termism" that prioritises electoral wins over energy security. Project approval delays – flagged by 8% of firms – compound the problem. "There is supply chain fatigue working on projects that aren’t reaching FID [Final Investment Decision]," one executive noted.
Stuart Broadley, EIC’s CEO, put it plainly: "The UK’s supply chain is delivering growth, but it’s doing so despite policy chaos. Without a 20-year vision, we risk losing talent and investment to markets like the Middle East." He points to a recurring theme in the data: skilled workers are eyeing exits. "Don’t stifle the industry, as we will lose talented people," warned another survey participant.
Companies in the Americas grew by an average of 20%, while those in Continental Europe reached 13% and Asia Pacific just 8% - all trailing well behind the Middle East’s remarkable 68% surge.
Stuart Broadley, EIC’s CEO
Energy Insecurity
Here’s the reality check: 57% of UK supply chain revenues still come from oil and gas.
While renewables dominate headlines, the transition’s funding relies heavily on hydrocarbon profits. When the government slaps windfall taxes on producers or signals hostility toward the sector, it destabilises the very engine financing its net-zero ambitions.
"Don’t turn oil and gas off overnight. That’s not transition; it’s energy security suicide," argued one respondent. Broadley echoed this, noting: "Optimism about 2025 growth is high – 87% of UK firms forecast it – but targets are fragile. If policy instability continues, we’ll see cost-cutting and job losses by year-end."
Beyond balance sheets, the report uncovers a raw nerve: perceived disrespect. Oil and gas professionals, in particular, feel demonised despite driving the transition. "Why must we ‘beg’ for legitimacy?" one asked. This sentiment fuels talent flight. "Capability will leak slowly, and when you look up, it will be gone," cautioned another.
Broadley warned: "The UK needs a joined-up energy plan incorporating grid, oil, gas, renewables, and skills. Regions with stable policies are magnets. Uncertainty is an export."
The UK isn’t lacking ideas or ambition. It lacks consistency. With 42% of firms citing fiscal uncertainty (like the windfall tax) and 25% highlighting recruitment challenges, the warning lights are flashing. The sector’s 2025 growth forecasts rely on fragile assumptions – chiefly, that policy turbulence eases.
One message rings clear from the supply chain: "There needs to be a UK energy strategy." Until Westminster delivers it, the boom may come with an expiration date.
Across the 140 global energy firms surveyed across five regions (Americas, UK, Europe, Middle East and APAC), 2024 was a record-breaking year for energy firms, with 77% of companies reporting growth and an average surge of 24% in revenue - matching last year’s record. But that momentum came with blind spots.
Only 6% of companies, across all regions, pursued new export markets, energy transition revenues dropped from 9% to 5%, and 91% of firms stayed focused on oil and gas. Even digital strategies fell short: 60% used AI, but just 9% linked it to growth.