“It’s an exciting time. With growing emphasis on subsea-based production . . . currently around 40% (in the North Sea) but predicted to reach 70%, the message we’re receiving from subsea firms is that their order books are looking very good for the next couple of years.”
So says Neil Gordon, CEO of Subsea UK.
“Obviously there was the debacle of the North Sea tax grab and how that affects things short-term, but longer term . . . two or three years ahead . . . things should settle as the Government seeks stability.”
However, there is the rest of the world to go at, but where exactly does the British/British-based subsea capability jigsaw fit into that marketplace?
“That’s something that I’m keen to find out,” said Gordon. “A key differentiators in our favour is that we have a tremendous knowledge base here; and the technology. The trick is to exploit that to the full.”
Despite all the economic problems, his view is that the UK remains one of the best places of all for the subsea industry to trade globally; not just offshore oil and gas, but other subsets like maritime renewables, defence and civils.
| Neil Gordon Q & A: |
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Age: 49 Education: Aboyne Academy, Aberdeen College of Commerce (Business Studies), commercial diver training – The Underwater Centre Fort William Main roles in career and dates: Commercial diving 1982 – 1992 (Various companies but started with Oceaneering); AVC – business development director 1994 – 2005; National Hyperbaric Centre – general manager 2006 – 2011 What has been the hardest decision you have made in business? Selling the family business (Gordon’s Restaurant/Bakery, been in Braemar for four generations), a decision that had heart and head in conflict! Who do you admire in business? When I worked with Shell corporate communications team, I was always impressed with Malcolm Brinded’s inspirational leadership. What do you regard as being your greatest success to date? Difficult to pick from two achievements while with the National Hyperbaric Centre. One was developing a JV with an organisation in Brazil and the other creating the internationally recognised OGP Client / Dive Representative Course. What do you do to relax? I love to watch my sons play rugby and help with coaching Deeside Rugby Club U16’s. Where is your favourite holiday destination? Skiing in Tignes and Val D’Isere, staying in a chalet with a log fire and fine wine. What is your favourite gadget? My Blackberry Bold (great for comms on the move, photography and HD video) What charity do you support? Save the Children & Unicef If you were not in the job you are in, what job would you like? Fighter pilot Where would you like to retire to? I would stay close to my roots in Deeside and hopefully watch my children and grandchildren grow up, but travel to and explore new countries and cultures with my wife. |
“We have to ensure this experience, knowledge and technology base is maintained for the future . . . and that means keeping a grip on 70% or so of the global subsea construction fleet that operates out of, principally, Aberdeen,” he says.
“And don’t forget, diving operations globally are all English language.”
Gordon should know as he started his professional career as a North Sea diver and so has a practical grip on many of the issues and opportunities faced by the UK subsea capability today. This includes ensuring Aberdeen’s pre-eminence as the number one subsea operations hub anywhere.
In the early 2000s, just after the oil price slump of late 1997 through 1999, the long-term future of subsea and Aberdeen seemed uncertain. In the event, it came as huge encouragement that big brands like Technip, Subsea 7 and Acergy decided to stay and invest in new facilities, systems, training and ships.
“Of course there are other centres of subsea expertise in the UK, but Aberdeen is the main centre,” says Gordon.
“What I’m trying to do is make sure that’s all connected. A strong, cohesive (pan-UK) supply chain means that we can have a very robust North Sea and international capability.
“A part of that process includes setting up regional branches of Subsea UK.”
Recently, with Scottish Enterprise, Subsea UK carried out a supply chain mapping exercise to look at the strengths and weaknesses and identify where it might be possible to reinforce. One weakness is cost-competitiveness.
Of course, governments elsewhere will be keen to emulate what has happened in the North Sea and seek to attract investment. This includes Brazil.
Gordon: “That’s potentially a real threat. I’ve been to a number of events with the Brazilian Embassy and Petrobras to learn about their five and 10-year plan. They are working hard to pull in a lot of the knowledge they need.
“The key difference between where Brazil is currently and where we are is that we have this cluster of knowledge, the kind of thing that it will take them a long time to build up.”
Like his Subsea 7 hot-seat predecessors David Pridden and Alistair Birnie, Neil Gordon understands the need for UK universities to be properly engaged with the subsea brigade.
While there is the NSRI (National Subsea Research Institute) based in Aberdeen, it has yet to achieve real traction.
There is still a need for North Sea operators and government to put their shoulders behind British subsea success so that success begets more success. But that’s not how it is.
“We hear that some of our smaller companies struggle to get the funding necessary to enable them to conduct relevant research and development and get new technologies/products to market,” warns Gordon.
He agrees that the risk is that we will lose this spirit of enterprise and that others will capitalise on the failure of successive governments to get behind an industry that is clearly a winner and merits backing. And he seems to subscribe to the view that the current Government displays a truly strange attitude to the oil and gas industry, even though there have been visits to Aberdeen by high profile politicians, particularly David Cameron and Vince Cable.
“We suffer from having government that takes a short-term view of an industry that it doesn’t really understand. There’s a lack of a long-term policy that recognises that nurturing this industry is what needs to be done.
Former Offshore Supplies Office supremo, Norman Smith, says in his book The Sea of Lost Opportunity that the London view has always been short-term and that the supply chain is secondary to getting oil and gas out of the ground.
Gordon agrees: “The cash-grab mentality that (successive) governments have is something that needs to be put to bed.
“There really is a need for everyone to sit down, agree that this is an important industry which is going to be around for at least the next 30, 40, 50 or more years and then act accordingly. That means not just production but nurturing the supply chain too.
“When I talk about subsea I mean seabed to surface. And it covers not just oil and gas but renewable too, and defence and other marine-based industries.”
“In the UK we generally do not realise the value of our offshore industry. We’ve been doing it for a helluva long time and have built up a huge knowledge; but I don’t think the message is getting out.”
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