Aberdeen and Houston have been closely linked through the oil industry for more than four decades.
Relationships between service and technology companies in these two leading oil cities continue to develop and grow, helped by the sustained high oil price.
Mergers, acquisitions and partnerships drive growth in two of the world’s most mature basins – the North Sea and the Gulf of Mexico – as well as aiding entry to new markets around the planet.
There are numerous oil service and technology firms who have expanded from Aberdeen across the Atlantic, and vice-versa.
Examples include Probe Holdings of Texas, who acquired Aberdeen firms Sentergy and Isle Tools, while big north-east businesses EnerMech and Wood Group have both invested to expand their presence in Houston.
Also looming on the horizon is one of the biggest cross-Atlantic deals there has ever been in the oil service and technology sector – the expected £3billion takeover of Aberdeen-based well-flow management group Expro by US industrial conglomerate GE.
This transaction will serve to highlight tempting opportunities for American companies in the UK and could lead to a fresh wave of acquisitions.
David Thomas, a partner at Aberdeen-based executive search firm Diamond Cooper, said yesterday: “There are a number of reasons for this long-standing UK-US relationship in oil service and technology firms still being so successful.
“Houston and Aberdeen are both home to a number of common and major vendors who play a huge part in the oil and gas supply chain.
“For Aberdeen companies investing in a presence in Houston, they will open up quick and accessible links to the rest of the Americas which contains several significant global energy hubs.
“They will also be incentivised by a low tax and low regulation environment.
“The benefits to Houston-based companies investing in a presence in Aberdeen include excellent access to Europe, Middle East and Africa markets and a highly-skilled talent pool to recruit from.
There is no doubt that the investment between Aberdeen and Houston will remain high for the medium term.
“Events such as OTC and Offshore Europe will continue to provide a platform and forum for oil service and technology companies to come together and secure opportunities to grow. Undoubtedly, we will see many more deals in 2014 and beyond.”
But Mr Thomas said the movement of UK and US oil industry workers, at all levels, between Aberdeen and Houston was much more difficult than for companies.
He explained: “Although internal transfers within oil companies and service and technology companies is common to allow progression and new challenges, to headhunt professionals from different companies and relocating them is made much more difficult due to visa restrictions in the UK and US.
“Instead, companies tend to focus on attracting local talent from external sources.”
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