Increased drive for new business

Apr 7 2009 By The Journal

AS THE oil & gas sector begins to feel its first effects of the global economic downturn, NOF Energy, the business development organisation for the energy sector, is experiencing an increased drive for new business from among its members.

"The sector is reacting to the current economic situation in the most positive way possible," said George Rafferty, chief executive of NOF Energy.

"NOF Energy has seen an increase in membership recently because businesses are looking at every opportunity in these uncertain times to get themselves in front of potential customers and seek new business leads," said Mr Rafferty.

"The majority of operators and key supply chain businesses have experienced tough times in the past and know what they have to do to prepare themselves for the arrival of an upturn."

Based in the North East, NOF Energy is a leading business development organisation in the UK and represents more than 300 companies from the oil, gas and energy sectors.

The organisation works to promote UK suppliers to the global energy market, through comprehensive business support services for its members.

"Membership of NOF Energy delivers tangible benefits to businesses," continued Mr Rafferty.

"Direct intervention by NOF Energy has secured over £40m worth of additional business for our members."

NOF Energy’s calendar of networking events in the North East provides a key opportunity for the supply chain to interact with key players within the sector as well as the opportunity to understand their procurement needs and practices.

Companies including Wood Group and Doosan Babcock have worked closely with NOF Energy to devise informative events that provide supply chain companies with a valuable insight into the opportunities that exist in the energy sectors.

"Inter-trading and collaboration between members is also continuing to grow," said Mr Rafferty.

"NOF Energy operates its Member-to-Member Business service, which helps identify opportunities from within the membership through direct referrals and introductions made by our team."

Through this service NOF Energy members have successfully added to their supply chain as well as forming collaborations that have delivered solutions to the global energy market.

Wallsend-based Barrier Ltd is experiencing continued growth, but is prepared for changes in the sector and the requirement to prepare for new opportunities.

The company delivers painting, pipe coating, scaffolding, insulation, subsea insulation and rubber lining services to the oil, gas, marine and petrochemical markets.

"We introduced a passive fire protection division two years ago, which, after a lot of hard work, is now bearing fruit and we are picking up work worldwide," said Robert Bowles, managing director of Barrier Ltd.

"There is still considerable offshore construction taking place, which we are heavily part of. However, there is the potential for this to tail off as investments are pulled back by operators."

"We are continually looking at other markets where we can apply our expertise and products and NOF Energy plays an important role in that preparation.

"NOF Energy provides a voice for the region’s supply chain that is heard globally and encourages operators to look to this region for its expertise," he added.

Based upon findings in the 2007 Energy White Paper, oil & gas will still provide almost 80% of the UK’s energy needs by 2020.

However, NOF Energy is fully aware of the roles nuclear and renewable energy such as offshore wind power, play in offering alternative power sources and maintaining security of supply.

"We painted Sizewell B, which was the last nuclear power station to be built in the UK, and we are preparing for a growth in nuclear generation," said Mr Bowles.

"This maybe a few years away, but we have to get ourselves in a position to be part of that supply chain now. NOF Energy is helping us do that through its industry intelligence and contacts within the sectors."

Mr Rafferty said: "There is a wealth of companies that have successfully developed skills, technology and products for the oil & gas sector, which can be easily transferred and applied to the emerging energy sectors, particularly in the nuclear industry."

"The energy requirements of the future will be dominated by a blend of oil, gas and nuclear power. Therefore, the industry requires a supply chain with synergy across sectors."