Supporting economic activity
Shell commissioned the University of Strathclyde’s Fraser of Allander Institute and Aberdeen & Grampian Chamber of Commerce to analyse the contribution our Upstream business makes on supply chains and the wider UK and Scottish economies.
Shell’s impact on UK and Scottish economies
In 2018, our UK Upstream business spent around £1.5 billion with suppliers in order to operate our North Sea facilities and projects, with around 90% of our spending made directly in the UK. These are figures from research carried out by the University of Strathclyde’s Fraser of Allander Institute and Aberdeen & Grampian Chamber of Commerce. The analysis found that this direct spending supports more than £2.35 billion in additional economic output across the UK, resulting in a total effect on UK output of £3.86 billion.
Scotland is home to our UK upstream operations. We spend approximately £880 million with direct suppliers in Scotland. With this direct spending and taking into account supply chains and wages, this activity supports around 11,700 full-time equivalent jobs and £775 million gross value add across the Scottish economy. The spending of wages across the supply chains linked to our activity supports more than 3,000 jobs in the Scottish services sector alone.
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Shell plays a vital role in powering the UK and keeping people and business moving. Across all of our business activities, we focus on being a safe and sustainable business. Our people often work in demanding roles and extreme conditions so ensuring they go home safely every day is our number one priority. One of the most demanding environments is the North Sea where we have been exploring for and producing oil and gas for more than 50 years.