North-east subsea sector to make waves

Feb 12 2010 by Kelley Price, Evening Gazette

Among the North-east companies exhibiting at the conference were Stockton engineering firm Cordell Group and subsea trenching and installation company CTC Marine. The Darlington company plans to double its revenues after clinching a seven-figure deal to work on the largest power cable ever laid in the Persian Gulf.

Last month the Government announced a generous tax allowance of up to £160m per oil field to entice companies to explore as-yet untapped frontiers, including the UK’s last remaining field, west of Shetland.

French giant Total is leading the way with the £2bn Laggan-Tormore gas project, and engineering companies on Teesside are already gearing up to bid for the work.

Meanwhile, business leaders including Richard Branson have this week warned the UK risks being racked by painful hikes in the cost of food, heating and travel because it is unprepared for surging oil prices. Their report, entitled “The Oil Crunch - a wake up call for the UK economy”, warns the world is running out of oil and predicts shortages and price spikes as soon as 2015.

It said the challenges facing the UK would exceed those presented by the financial crisis - and the poorest in society were most vulnerable. The report said Government must acknowledge the risks to the economy and produce contingency plans for transport, retail, agriculture and alternative power.

The report was compiled by the Industry Taskforce for Peak Oil and Energy Security, a private consortium whose members also include Brian Souter, chief executive of Stagecoach, and Philip Dilley, chairman of Arup.