North ‘could be next oil capital’

Apr 3 2008 by Andrew Mernin, The Journal

THE North East has the potential to become a global oil and gas hub to rival Aberdeen, according to business leaders who gathered at a major industry conference on Tyneside.

However, industry experts at the Rediscover North East England event at the Gateshead Hilton Hotel, also warned that poor transport links with Norway could hinder the region’s progress in the sector.

Yesterday saw more than 200 oil industry executives from 83 UK and 26 Norwegian companies and organisations descend on Newcastle to discuss growing trade links between the two areas.

The event was seen as a networking opportunity for North East companies looking to exploit the Norwegian oil and gas boom, and for the visiting Norwegian companies with bulging order books looking to fill their strained capacity.

Guy Adams, sales executive at oil and gas publisher Oilinfo, which helped organise the event, said the North East could one day match Aberdeen in the oil and gas stakes.

He said: “There are amazing opportunities and an amazing supply chain in the North East for the oil and gas industry and also for the marine sector. The North East is going to be the next boom town and it’s less than an hour away on a plane from Norway so it’s crazy not to be doing business with Norway. I think the potential is there for the North East to become an oil capital like Aberdeen if we get it right at this stage and we do it as well as we have done so far.”

However, Mr Adams also warned that the region could be held back by a lack of efficient transport links with Norway.

“The only problem we have now is transport but once we get more regular links between the two areas, there’s absolutely no reason why people from Norway would not come here.”

Catherine Gjertsen, of Norwegian regional development agency Greater Stavanger Economic Development, also highlighted the importance of better transport links.

She said: “The ferry is very important to Newcastle but direct flights would help people get to know the city, and when they know a city, they want to do business and collaborate with it.”