North Sea Jobs: Reasons for Optimism amid the Gloom

In the European oilfield services sector much comfort can be taken from the fact that important European offshore services companies – such as Aker Solutions ASA and Technip S.A. – increased their order books last year. In Technip's case its backlog of orders achieved a record level of $23.8 billion by the end of 2014.

North Sea Work: Reasons for Optimism amid the Gloom
Cygnus Gas Project Facts. Source: GDF Suez, Johan Sverdrup Project Facts. Source: Statoil Clair Ridge Project Facts. Source: BP

Meanwhile, after decades of producing oil and gas from the North Sea, Scotland is now an important global hub for oilfield skills and know-how. This is reflected by a 2014 report from Scottish Development International that showed exports by Scotland's oil and gas supply chain companies had grown to almost $17 billion annually – accounting for around half of the supply chain sector's total revenue. While North America remains the main region for exports by the Scottish oil and gas supply chain sector, Africa is catching up fast as demonstrated by sales to the region doubling to $3.9 billion between 2012 and 2013.

This opportunity to increase Scotland's share of the global oil and gas supply chain is why Rennie believes it is important to keep the domestic market strong – so that the UK industry retains and develops the skills that will be needed elsewhere in the world.

"In times of downturn or slowdown that international element becomes even more important," he said.

Over in the Netherlands, the Dutch oilfield services sector is still doing well. Figures from the Netherlands Maritime Technology trade association show that Dutch shipyards and equipment suppliers (which get a significant amount of business from the offshore oil and gas sector) generated some $9 billion last year, compared to $7.8 billion in 2013, with order books currently stable. The Dutch industry recognizes it will begin to hurt in 2016 if oil prices remain the same, however.

Back in the UK, Rennie believes it is important to maintain a focus on the future.

"It's hard to look beyond the short term but you've got to get that balance. We can't talk ourselves into a pit of gloom. There has to be recognition of what's happening right now and dealing with it and helping companies get through it, but we also have to keep an eye on the long term," he said.


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