‘Tyne can echo to industry again’
Oct 3 2008 by Peter McCusker, The Journal
THE growth of the region’s oil and gas sector may lead to levels of industrial activity on the Tyne not witnessed since the heyday of shipbuilding.
Subsea North East – companies which recover underwater oil and gas – says recent record growth will continue as energy demand surges.
Within five years the sector is predicted to double, with firms increasing to 100 and jobs doubling to 10,000.
Chris Braithwaite, chief operating officer of Wellstream at Newcastle, who chairs Subsea NE, said: “It’s a remarkable story. This sector is growing at 15% a year. It’s a phenomenal growth rate and despite the general economic conditions, this sector is relatively insulated.
“Assuming that growth continues, new companies will be coming in with similar capabilities.
“It will happen in much the same way as with the automotive industry in the region. It attracted satellite companies to its supply chain and the subsea sector will have a similar impact. If we have the collective will, I am sure we can industrialise the River Tyne again.
“But this is not just about subsea – although it will be a big part of it – there could also be renewable energy developments. We could transform the waterfront and stop the march of housing developments.”
Some subsea companies are clustered on the Tyne, with Wellstream near Duco at Walker. SMD, Shepherd Offshore, Bel Valves and the Engineering Business all have a River Tyne presence. But Mr Braithwaite believes subsea’s growth is a regional success story with the Wear and Tees also having a big part to play.
Mr Braithwaite’s views are shared by the Engineering Business MD Dr Tony Trapp. He said: “These are uncertain times – possibly the worst times I have seen. However, the basic fundamentals that have underpinned the search for oil will continue for some time and the North East subsea sector is well placed to build upon our success.”
NOF Energy chief executive George Rafferty said: “The industrial heritage and technological innovation that exists in the region is riding the crest of a wave created by the global demand for fossil fuel and energy in general.
“This region leads the field in subsea exploration and development.”
