Energy Minister Fergus Ewing will champion Scotland’s trouble-hit offshore industry on a trade mission to the heart of the US oil and gas sector this week.
There are still “huge opportunities” despite significant challenges, he said as he prepared for his trip to Houston to meet key figures from a number of companies.
The visit comes at a time when the industry globally has been hit by a slump in oil prices.
The downturn has already caused thousands of job losses, including many in the North Sea.
But there are also positives for the UK sector to take comfort from, with figures last week showing the Scottish supply chain notched up record sales of £22.2 billion in 2013 – an increase of 11% from the previous year.
There is also the recent Bank of Scotland (BoS) oil and gas sector report, which said a vast majority of UK oil and gas firms – more than nine out of every 10 – plan to expand in the next year.
BoS found in its survey that companies expected the price of Brent crude to stick at around $55 a barrel for at least a year, but believed it was “not necessarily the most significant challenge facing the industry as a whole”.
Despite the current job cull, firms expected nearly 8,000 jobs to be created over the next two years.
Nearly three-quarters of firms expected to increase their workforce, with only nine expecting this to fall and 19 not anticipating any change in headcount.
Scottish energy consultancy Wood Mackenzie (WoodMac) said last week it expected oil exploration costs to fall by a third by 2016, allowing firms to keep pursuing projects despite the lower oil prices.
If WoodMac’s forecast proves accurate, then any current fears about cuts to future production are hugely exaggerated.
Mr Ewing said his trip to the US, the top market for Scottish supply chain exports, was all about “championing Scotland’s excellent oil and gas expertise, workforce and companies”.
He added: “The international oil sector is currently facing significant challenges but I believe firmly in the value that Scottish businesses deliver to partners, particularly in deepwater and offshore exploration areas, and their ability to overcome those challenges.
“Decades of research and development has been cultivated in the North Sea and is now being deployed globally, transferring to new and emerging exploration and production locations around the world.
“Scotland is leading the way and has a clear competitive advantage in this truly global industry.
“There are huge opportunities open to us both at home and abroad, and we are determined to make the most of them.”
Recommended for you
