OTC’s stats are impressive by any standards for a ‘trade show’. The largest annual energy industry showcase in the world pulls in audiences of more than 80,000, from more than 120 countries and representatives from more than 2700 companies.
The Offshore Technology Conference in Houston was established 45 years ago and in the 18 years I have been attending I have witnessed a subtle shift of emphasis as geopolitics and technical prowess exert greater influence.
The impact of the Arab Spring, fears of a US fuel deficit and subsequent rise of shale production, the drive to build global LNG import terminals, events post Deepwater Horizon and even the Ukraine-Russia stand off on the Crimea, all shake down to OTC and shape the conference content and range of delegates attending.
Whilst the Russians have never been high profile at OTC and will no doubt be thinner on the ground with US-led sanctions limiting their involvement abroad, it is the rise of China and the wider Asian manufacturing industries which can be seen to be having the greater influence at OTC.
A quick look at OTC’s demographics reveal that 79% of last year’s audience was US based while 21% came from overseas. But significantly, by international attendee numbers, China was second with Korea and Singapore also featuring in the top 12 (UK was third).
This picture of a global energy industry, which has many mutual dependencies, is perhaps best illustrated with massive increase in vessel and rig construction in the Korean and Chinese yards where, once quality control is established and consistent, a formidable manufacturing capability will be established.
This growing Asian influence extends closer to home as across the North Sea our Norwegian counterparts favour South Korea as the destination of choice for its substantial hull and rig construction requirements. On our own doorstep new entrant investors from China and South Korea have made valuable contributions to the ongoing development of UKCS assets.
From a UK perspective OTC is a vital showcase which attracts strong support from multiple Government agencies and industry bodies and it is an excellent platform to establish new trading partners and relationships across the globe.
As a lawyer representing an international legal firm, I can see where value can be added or lost at OTC. For all delegates, a healthy cultural awareness, strong listening skills, and a good grasp of key legal issues in international trade (sanctions, import/export controls, anti-money laundering, bribery and corruption ect) will smooth the process of firming up new opportunities and opening new chapters in the history of your respective business.
It goes without saying, back home and post OTC, effective and thorough diligence of those newly formed partnerships, should be undertaken to avoid any unwelcome surprises further down the line.
Bob Ruddiman is head of energy and natural resources at Pinsent Masons.
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