Industry

Oil and gas continues to underpin much of the industry's revenue base.

Companies supplying the global energy industry are earning a record share of their revenue overseas, but they continue to avoid expanding into new export markets, according to the latest Survive and Thrive report by the Energy Industries Council (EIC)

Developing business in new countries was the least-deployed business strategy for the 10th consecutive edition of the report, according to the EIC, the world-leading energy trade association. This is despite the average share of revenue from exports increasing to 57% in 2025 from 49% in the previous year, its highest level in four years. But this growth is coming primarily from established markets.

The report is based on interviews and case studies from 136 energy supply-chain companies based in the UK and Ireland, Europe, the Middle East and Africa, Asia-Pacific, North America and South America. It shows that 75% of companies made record revenues in 2025, while 91% expect continued growth this year, forecasting average revenue growth of 32%.

Rather than pursuing expansion strategies, companies are pivoting in 2026 towards resilience, which accounted for 18% of business strategies, up 8% from the previous year. In a similar vein, optimisation jumped to 19% from 12%, while diversification remained the most common strategic response at 25%.

The findings point to growing confidence in existing operations rather than confidence in the wider investment environment.

Gap between ambition and execution

The report also reveals a gap between announced energy ambitions and projects reaching construction. Around one-quarter of upstream, midstream and downstream projects under development have reached final investment decision, compared with 13% in renewables, 10% in hydrogen, 8% in carbon capture and 8% in offshore wind. Less than 1% of floating offshore wind projects have secured final investment decision.

Oil and gas continues to underpin much of the industry’s revenue base. The majority of respondents, 94%, are active in the sector, which generates an average of 59% of company revenue. Meanwhile, participation in renewables declined to 49% from 59%, although renewables’ average contribution to revenue increased modestly to 13%.

EIC CEO Stuart Broadley commented, “The supply chain is becoming much more selective about where it takes risk. Companies are growing internationally, but they’re doing it where they already understand the market, the customers and the regulatory environment.”

“We’ve tracked this for 10 years, and what we’re seeing is that developing a genuinely new market remains the least-used strategy. The supply chain follows certainty. Give companies a bankable pipeline, stable rules and customers ready to buy, and they will invest. Without those conditions, they will protect the balance sheet and stay close to the markets they know.”

Rebecca Groundwater, EIC’s Global head of External Affairs, said, “Wherever companies operate, they’re saying the same thing, which is that businesses don’t need more targets. What they really need is stable policy, faster decision-making and a pipeline of projects that actually reaches final investment decision. That’s what gives companies the confidence to invest, recruit and export.”

The report also found that companies are spreading commercial risk amid uneven project delivery across parts of the energy transition by diversifying their activities beyond energy. Average non-energy revenue reached 32%, while non-energy sectors ranked among the leading investment priorities in Asia-Pacific, the Middle East and Africa, and Europe.

Blue Ocean Decom has officially launched to provide engineered, specialist subsea removal solutions for the offshore energy sector.

Blue Ocean Decom has officially launched to provide engineered, specialist subsea removal solutions for the offshore energy sector.

The offshore energy sector faces a monumental shift. Operators must dismantle and safely remove decades of ageing infrastructure from the ocean floor. Regulators increasingly demand timely compliance. Environmental responsibility now dictates every operational move. Decommissioning no longer represents a simple back-end obligation. The industry now treats it as a top strategic priority. Operators face immense pressure to execute these complex projects with absolute precision. Blue Ocean Decom has officially launched to address this exact challenge. The new business operates as a specialist subsea removal and decommissioning solutions provider.

Alfie Cheyne backs this new enterprise. Cheyne stands as one of the most recognised figures within the offshore industry. He holds a proven track record as a builder of successful international service companies. His impressive portfolio includes the creation and rapid growth of ACE Winches. Managing Director Ross Anderson leads Blue Ocean Decom on an operational level. Anderson brings an incredible amount of field and project leadership experience to the table. He has previously directed major offshore decommissioning campaigns around the world. His extensive background includes highly complex operations within the Middle East.

Strategic Global Expansion
The company seeks aggressive international growth immediately following its launch. Leadership has identified the Middle East as a key priority region. They have also named the Asia Pacific region and the UK offshore sectors as primary operational targets. Global decommissioning activity continues to accelerate at an unprecedented pace. Operators desperately seek out dependable partners to handle this massive workload. Clients require dedicated experts who can deliver engineered decommissioning solutions. They need specialist firms capable of mobilising highly tailored equipment packages quickly. Operators must also deploy deeply experienced technicians to the field. These technical specialists must fundamentally understand the schedule-critical nature of subsea removal operations. The leadership team built Blue Ocean Decom specifically to meet this exact operational requirement.

Chairman Alfie said: "I've spent my career backing and building specialist service businesses in the offshore sector, and the pattern is always the same: the market rewards focus. As decommissioning activity grows, subsea removal deserves the same level of specialist attention as any other critical path discipline. That's the gap Blue Ocean Decom has been built to fill, with Ross leading a team whose entire attention is on doing this one thing extremely well."

Ross added: "The subsea removal phase is a defining element of any decommissioning campaign, influencing safety, schedule and overall project performance. As the industry scales up, it needs partners who treat this scope with the focus and precision it demands. That's exactly the focus we've built this business around."

Specialist Decommissioning Solutions
Ageing offshore infrastructure drives a massive surge in global decommissioning demand. Regulators push operators hard to remove redundant assets quickly. Energy companies face intense scrutiny regarding their planning certainty. Execution discipline remains paramount throughout the entire removal process. Environmental responsibility remains a constant requirement for all offshore operators. Blue Ocean Decom responds directly to this industry-wide shift.

The new company focuses exclusively on specialist decommissioning solutions. The firm provides specialised equipment packages to support complex platform and well cutting operations. The operational team handles the safe subsea asset removal of pipelines and risers. They also offer comprehensive services for seabed preparation and subsequent clearance. Subsea asset recovery represents another core component of their extensive service offering. The business delivers this highly focused approach through advanced engineering practices. The team consistently creates tailored project solutions to meet specific client needs. A dedicated group of professionals executes these complex offshore decommissioning projects.

Blue Ocean Decom places its equipment and personnel strategically across key global hubs. This international footprint allows the company to execute rapid mobilisation. The firm can guarantee project-specific deployment regardless of the geographic location. Effective subsea decommissioning must return the seabed to a completely safe and compliant condition. The team removes redundant structures efficiently. They ensure their work produces minimal environmental impact. Delivering this safe outcome remains central to the overarching purpose of the company.

Ross added: "A dedicated decommissioning partner to operators and Tier 1 contractors fits where the industry is heading. We've built this company to be exactly that."

Oil prices have risen again following the recent escalation. (Image source: Adobe Stock)

The oil price has risen further with the escalation of hostilities between the US and Iran, with Brent crude standing at around US$86/bbl on Tuesday 14 July

Recent days have seen renewed US attacks on Iranian infrastructure, and Iranian attacks on US bases in the region as well as ships and oil tankers, along with President Trump’s announcement of a 20% fee on cargo transiting the Strait and a renewed blockade of Iranian ports.

Brent crude had fallen to around US$70/bbl earlier this month following the announcement of the ceasefire, and the IEA had predicted in its July monthly oil market report that the market could return to surplus by the end of the year. This prediction looks to have been upended by recent events, with the risk to disruption to shipping once again raising the prospect of supply shortages.

“The escalation disrupts global energy supplies, with a near halt in ship navigation in the Strait of Hormuz, and heightens the risk of further escalation, including targeting oil production and refining infrastructure in the region, which could make the damage structural rather than temporary,” noted Samer Hasn, senior market analyst at XS.com. “…we saw widespread targeting of the Iranian mainland and islands and targeting of American bases at several points in the region, in addition to targeting ships and oil tankers, and these events are still recurring until the time of writing. To make matters worse, we saw an unexpected and sudden return of escalation between Saudi Arabia and the Houthis in Yemen.

“With this stormy series of events, we must calmly rearrange our hypotheses. I believe we are now in a round of negotiating under fire, following the failure at the table after the signing of the recent memorandum of understanding. The major obstacle lay in reaching an understanding regarding the implementation of the fifth article of the signed memorandum of understanding, which concerns the management of the Strait of Hormuz.”

“The latest developments have shifted market focus from oversupply concerns to the risk of prolonged disruptions to Gulf energy exports, with the duration of US enforcement measures and the security of Hormuz now likely to determine whether oil prices remain elevated,” commented MUFG Research.

Crispus Nyaga, research analyst at Empire FX, said, “Looking ahead, prices could extend their climb, potentially nearing previous highs, should shipping through the Strait of Hormuz come under severe restrictions and regional security deteriorate further. However, efforts by Gulf oil exporters to circumvent the waterway could help ease the upside pressure to some extent. A return to diplomatic talks and a formal end to military operations could support a recovery in maritime traffic, allowing energy exports to normalise and prices to ease gradually, although this scenario could remain unlikely over the short term.”

Tolls in the Strait now look impossible to avoid, commented deVere Group’s CEO Nigel Green. “Investors keep treating Hormuz disruption as a spike that fades once the fighting stops. This time, for me, looks different,” he said.

“Once a toll exists in practice, taking it away again becomes its own political fight. I would price this as a permanent cost of moving global energy, not a headline that blows over.”

Also read: https://oilreviewmiddleeast.com/industry/oil-prices-spike-again-on-renewed-us-iran-hostilities

The agreement will allow ZL Chemicals to commercialise Chevron’s advanced surfactant technology. (Image source: Adobe Stock)

Chevron’s chemical surfactant technology is set to be deployed more widely thanks to a technology licensing agreement between Chevron Technical Center, a division of Chevron U.S.A. and ZL Chemicals Ltd, a global leader in enhanced oil recovery chemistry

The agreement will allow ZL Chemicals to commercialise Chevron’s advanced surfactant technology which improves resource recovery in unconventional reservoirs, providing an opportunity for broader commercial deployment of this technology. ZL will commercialise and market products and services under the Vantis brand utilising the licensed technology. The Vantis product offering is expected to support applications in shale and tight reservoirs, including base well enhanced oil recovery programmes and new well-optimisation efforts.”

”Technology creates more value when it can be applied broadly,” said Ryder Booth, chief technology and engineering officer of Chevron Corporation. “Advanced chemicals are one of Chevron’s areas of differentiation and have supported innovation in our own operations. Through this licensing agreement, we’re creating a pathway for ZL to bring this technology to a broader market, and at scale.”

“We are pleased to work with Chevron to expand access to this technology across a broader customer base,”said Echo Liu, president of ZL Chemicals. “At ZL Chemicals, we are focused on delivering enhanced oil recovery chemistry and field services designed to support operators’ production and reservoir management objectives. Vantis represents the type of technology our customers are seeking, and we are positioned to deliver it as a scalable, turnkey service - from lab evaluation and QA/QC through application design, on-site deployment, and field execution. We look forward to supporting operators in their efforts to enhance recovery and extend the productive life of their assets across shale and tight reservoirs.”

The agreement combines Chevron’s technology development expertise with ZL’s commercial capabilities and customer relationships. Chevron will continue developing next-gen advanced surfactant technology for its business, while ZL will commercialise products and services using the technology licensed under this agreement.

The Middle East would seem to be a good potential market for Chevron’s surfactant technology given the focus on gas and the development of unconventional resources in the region, an example being Saudi Arabia’s Jafurah unconventional gas project. The largest liquid-rich shale gas play in the Middle East, Jafurah contains an estimated 200 trillion standard cubic feet (scf) of natural gas.