'Strong Opportunities' Available for Innovative Engineering Firms
There are still ‘strong opportunities’ available for engineering firms in the offshore oil and gas sector with the capacity to deliver fast, innovative projects, according to UK engineering services firm RED Engineering.
“As reserves become more difficult and costly to recover, the opportunity is there for those companies developing innovative engineering solutions, which cut lead times on subsea developments,” said Toby Bailey, RED Engineering business development director, in a company statement.
“We will see strong opportunities in areas such as subsea vehicles, pipe and cable lay systems, subsea infrastructure and hardware while other knowledge-intensive services remain strong in the face of a continued focus on costs,” he added.
Despite the volatility of oil markets, continuing uncertainty over Brexit and pressure on costs, Bailey predicts that demand for ‘leading-edge’ subsea technologies will remain robust over the next 12 months.
Bailey also predicts that Latin America, the Gulf of Mexico and West Africa will remain the focus for deep water activity, but a declining North Sea sector will also herald additional work.
“We will see over the longer term an increase in the number of North Sea decommissioning projects. These will benefit regional offshore oil and gas service providers possessing the technical expertise and experience to meet operators’ shorter lead times,” said Bailey.
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