Energy suppliers boost exports but cautious over new markets

Energy supply chain companies are generating a record proportion of their revenue from overseas markets, yet many remain reluctant to expand into unfamiliar territories as uncertainty continues to shape investment decisions.

That is one of the key findings from the latest Survive and Thrive report published by the Energy Industries Council (EIC), which surveyed 136 companies operating across the UK and Ireland, Europe, the Middle East, Africa, Asia-Pacific and the Americas.

According to the report, exports accounted for an average of 57% of company revenue in 2025, up from 49% the previous year and the highest level recorded in four years.

However, most of that growth has come from strengthening business in established international markets rather than entering new countries.

THE EIC found that in place of expansion strategies, companies are focusing on resilience, which accounted for 18% of business strategies. That’s up eight percentage points from the previous year.

Diversification 

Similarly, optimisation jumped to 19% from 12%, while diversification remained the most common strategic response at 25%. The findings suggest growing confidence in existing operations rather than confidence in the wider investment environment.

The report also highlights 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.

Predictably, 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.

Renewables' decline

Meanwhile, participation in renewables declined to 49% from 59%, although renewables’ average contribution to revenue increased modestly to 13%.

“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,” said EIC CEO Stuart Broadley.

Broadley explained that the EIC has tracked this data for 10 years, “and what we’re seeing is that developing a genuinely new market remains the least-used strategy”.

He added: “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.”

No to targets

And Rebecca Groundwater, EIC’s Global Head of External Affairs, confirmed that these sentiments are being echoed throughout the industry.

“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 highlights increasing diversification beyond the energy sector. On average, 32% of company revenue now comes from non-energy markets, with respondents in Europe, Asia-Pacific, the Middle East and Africa identifying industrial sectors outside energy as growing areas for future investment.