VOLATILE oil prices and fears of falling demand and oversupply has not deterred the North-East energy industry from issuing a bullish statement about the challenges ahead.

The tumbling oil price has led to a trebling of insolvencies among UK oil and gas services companies so far this year, while £55bn of further oil projects are reportedly under threat.

But 92 per cent of NOF Energy’s membership, believe that the oil and gas sector will remain the most important part of their business in 2015.

The annual NOF survey charts the activities and views of the industry from the organisations almost 500-strong UK and international membership along with their opinions of the organisation’s business development services.

The survey also reveals members’ views on the nuclear, renewables and shale gas sectors. Offshore wind has become more of a focus as some work is starting to filter through to the supply chain, but so much more remains to be done to secure UK content on these projects.

Interest in the nuclear sector remains unchanged, but the development of shale gas, both in the UK and overseas remains key to the future plans of 60 per cent of members - some of whom have already established links with operators in the US shale gas industry.

Remaining on the international theme, the United States has overtaken Norway as the primary export market for NOF Energy members with 46 percent trading with America. The other leading export markets for NOF Energy members include United Arab Emirates, Brazil and Australia.

George Rafferty, the chief executive of NOF Energy, said: “The ongoing importance of oil & gas to our members is clearly reflected in our survey, but the current challenges facing the industry have not dampened our members’ ambitions. Their innovative, technology-led products and services and considerable industry experience will enable them to meet and exceed operator and lead contractor supplier requirements.

“NOF Energy is working with the industry through our network of partners and contacts to facilitate a greater awareness of our members’ capabilities within the sector to ensure they are in a prime position to play a key role in future offshore activity.”

Mr Rafferty added: “With exports forming a substantial element of our members’ operations and the increased interest in onshore gas developments, particularly in the United States, international trade will remain a core element of the support services provided by NOF Energy.

“Our annual survey has demonstrated the value of our services to our members and the role NOF Energy has to play in supporting the supply chain. In the last year more than half reported that they’ve received valuable business leads through their membership, which are essential if they are to succeed in the increasingly competitive and cost-driven market.

“Therefore, while they overcome the current challenges in the oil & gas sector in particular, NOF Energy will be freezing its membership costs for 2015 to show that it appreciates the challenging times ahead but at the same time boosting the resource to ensure we can meet the demand from members who may need our business development support more than ever.”