Scotland is at the forefront of the energy industry with a global reputation for excellence in the oil & gas sector.
The North Sea is one of the most hazardous and technologically complex places in the world to extract oil, and this has paved the way for our firms to innovate and push the limits of technology.
We’ve been doing this consistently since the 1970s and in that time we have established ourselves as a global centre of advanced industry expertise and experience.
Now, with oil prices under sustained downward pressure and no obvious rebound in sight, that knowledge has the potential to prove an especially valuable commodity.
Going global
Exporting our insight can hold the key to unlocking new and underdeveloped oil and gas reserves around the world, and selling Scottish skills overseas is a strategy that government is keen to support too.
This year has seen trade missions to China, Vietnam and the USA, with more planned for the rest of the year, including Mexico next month, in a move to facilitate opportunities for Scottish firms.
The visit to Mexico will include visits to two most important energy hubs in the country, Ciudad del Carmen and Villahermosa. It has been opened up to international investment and looks to hold particular potential as the UK Trade & Investment, in partnership with the Aberdeen & Grampian Chamber of Commerce, the Energy Industries Council, Scottish Development International and Subsea UK all come together to showcase the industry.
At Bank of Scotland, we certainly welcome these efforts to showcase Scotland’s know-how, both in new territories and to new industries.
Hard-won know-how
We know from Re-evaluating Strategies, the fifth annual Bank of Scotland report on the oil and gas industry, published in June, that falling income has meant some Scottish firms have pulled back from their international expansion plans.
Our research found that, while just over two thirds of firms (67%) are still looking at international opportunities, this is down from 91 per cent last year.
That is probably largely due to the oil price fall affecting the profitability of unconventional oil production, such as onshore shale extraction, which has slowed in North America.
Tellingly, though, there was a marked growth in interest in speculative territories including Africa, the Mediterranean and South America.
Applying Scottish expertise in other countries, as well as in complimentary sectors such as decommissioning, utilities and renewables, will only help create a domestic industry that is far more efficient and resilient for the future.
Our expertise has been hard won on the challenging North Sea oil fields.
Let’s make sure it keeps paying dividends for Scottish firms, helping to identify and unlock opportunities in all corners of the globe.
Stuart White is the area director of commercial banking for the Bank of Scotland.
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