New dawn should double our oil jobs

Mar 26 2008 by Peter McCusker, The Journal

SURGING oil prices and the voracious global demand for energy is helping fuel a new North East oil boom which is expected to create thousands of jobs and bring millions of pounds into the regional economy.

The price of oil has trebled in the past few years and it is currently being traded at about $100 a barrel.

With oil companies pouring cash into exploiting new reserves, the expertise of North East companies in subsea exploration is helping the region develop a reputation as a world leader.

One of the region’s leading oil and gas experts, George Rafferty of NOF Energy, formerly the Northern Offshore Federation, said: “This is a new dawn for the oil industry in the North East. We are witnessing a boom and the region is playing a major part in this global boom. North East firms and experts have been involved in all major global explorations, bar China, in recent years.

“We are a world-leading centre for subsea exploration and with demand set to remain high, we expect to see a doubling in the number of jobs in the region.”

With most of the so-called easy oil now extracted, the challenge the oil industry faces is reaching the more difficult reserves.

This is where North East companies – such as Wellstream and Duco – are leading the field.

Mr Rafferty said: “This is not the sunset industry that many predicted a few years ago. There is no doubt that oil will provide the main focus to meet the world’s need for energy over the coming years.

“The quest in finding the oil means new technologies and methods are being developed.

“The skills of the companies who have worked in the harsh environment of the North Sea are now valued across the globe. The subsea sector in the North East grew by 30% last year and will continue at that pace for many years to come. The opportunities are immense.”

Experts say 50 North East firms are currently involved in the subsea oil sector in the region, employing 5,000 people and contributing £500m to the local economy.

One NorthEast’s energy and environment manager Ray Thompson said: “There is opportunity for the North East to become a world leader in some of the new technology. In 10 years’ time the number of people employed in this sector could easily have doubled to 10,000.”

There are even signs the North East is beginning to emerge as a rival to the UK oil capital of Aberdeen. David Pridden, chief executive of industry body Subsea UK, at Aberdeen, recently praised the development of the North East oil and gas industry.

“You can see what Newcastle is doing. And it’s growing all the time in the North East. I think you have a larger workforce there to tap into opportunities. I’m being controversial, but I think there’s also an entrepreneurial spirit there that is absent in Aberdeen.”

More evidence of this emergence comes next month with a visit to the region of more than 30 Norwegian companies armed with cheque books. It will be the first visit of its kind in 30 years.

The subsea sector in the North East grew 30% last year and will go on at that pace for many years