Tees Valley Unlimited response to
Oil and Gas Sector Strategy
The following response has been pulled together by Tees Valley Unlimited, the Local
Enterprise Partnership for Tees Valley, in response to the Government’s consultation on an
Oil and Gas Sector Strategy for the UK. We welcome the opportunity to respond and have
taken evidence from
private sector firms and industry representative body NOF
Energy in the process.
If you require any clarification or further information, p
Parkin, Business Research Officer, Tees Valley Unlimited. DD: 01642 632 004.
MAINTAINING AND IMP
ROVING THE SUPPLY CHAIN
What are the areas where the UK oil and gas supply chain excels?
In Tees Valley, a key advanced manufacturing and engineering hub for the UK, a significant oil
and gas supply chain exists, providing a multitude of services. Tees
Valley is a key entry point
from the Central North Sea for the BP CATS pipeline and a key receiver of imported LNG,
processed at the Teesside Gas Processing Plant. This facility processes gas for a number of
oil and gas majors and is currently constructing
facilities to allow them to receive gas from the
Breagh RWE development in the Southern North Sea.
Conoco Phillips’ Norsea crude oil
terminal is also based in Tees Valley.
Hartlepool Docks and Seaton Port, combined with
Teesport, the largest exporting por
t in England, offer direct access to service installations in the
The oil and gas supply chain in Tees Valley directly supports over 400 companies and
indirectly over 3,000.
In fact, the wider North East provides 15% of the 440,000 jobs suppo
across the UK.
And since 2011, Tees Valley companies operating in the oil and gas sector have created over
1,000 new jobs, predominately through contract wins to service projects across the globe.
From this position and the engineering legacy of th
e area, Tees Valley has honed particular
expertise in offshore fabrication
both jacket and modular
engineering design, subsea
services and support services for the oil and gas industry. The Tees Valley is home to a
number of oilfield service companies
providing services directly to the oil majors. These include
Aker Solutions, AMEC, RDS Oils (part of KCA Deutag) and Traceco, as well as key
engineering fabrication firms Wilton Group, Heerema, Able UK, Hertel and
. Oil and gas, therefo
re, is an essential part of Tees Valley’s export
NOF Energy, 2013
The Tees Valley has a renowned reputation for engineering design, home to the likes of
Faithful and Gould, Seimens VAI, K Home International and Foster Wheeler.
The area is also growing a reputation for subsea excellence, helping to enhance an industry
which is one of the UK’s best performing, growing 40% over three years and providing an
economic impact to the country of £5.9bn.
Housing leading industry names
VSMC, Tekmar, Global Marine Energy and JDR Cables
amongst others, this cluster already employs over 1,500 people.
In the North East, the
subsector contributes over £1bn annually to the economy.
Tees Valley su
bsea businesses are securing contracts across the world; for instance
DeepOcean winning work to provide subsea trenching for Chevron in Australia and a Statoil
scheme in the Norweigen North Sea, plus Subsea Innovation providing subsea equipment for
These include Heerema (build
platforms for a Centrica project in the North Sea), PD & MS
Energy (engineering services for contracts in Brazil),
TAG Energy Solutions
(Total project in
the North Sea), Francis Brown (BP project in the North Se
a), Nortech Solutions (engineering
design to extend the life of an offshore platform off the Scottish Coast) and
(supplying software for a Chevron contract off the Australian cost).
A study of the sector in Tees Valley
found that the strengths of the area were felt to be its
industrial heritage, skilled workforce, location, infrastructure and support network, including the
expertise of Teesside and Durham Universities in this field.
Who are the major international com
petitors to the UK?
Major competitors in the oilfield services supply chain, particularly competing with Tees Valley,
are the long
standing oil and gas locations of expertise in Texas in the USA, Alberta in Canada
and Stavanger in Norway, along with newer
market entrants in Indonesia, Malaysia and
Singapore. Rotterdam and its associated facilities are also difficult to compete with.
However, the main competitors in terms of oil and gas exploration and production are the USA,
particularly with the revolut
ion in shale gas lowering prices in the States, and the growth of
China, particularly with their increasing use of coal power.
These two moves will position such locations as centres of expertise for energy, offering cheap
export prices to the UK and givi
ng the US a lead in advanced manufacturing due to their low
cost of gas underpinning the sector. Such knowledge and expertise being built up in both
countries will, unless acted upon, reduce the ability of the UK to export knowledge and
expertise and devel
op its own supply chain, with potentially severe implications upon the UK’s
chemical and advanced manufacturing industries, of which Tees Valley is at the forefront.
NOF Energy, 2013
Such international competition has
due to two factors; the initial low pri
competitors of their fabrication offer and the lack of investment in the UK for the supply of
equipment. This will become increasingly important if we are to compete in forthcoming
alternative energy markets such as shale gas, offshore wind, tidal
energy and CCS.
What factors are restraining the development of the UK supply chain?
There is a real opportunity for the UK to exploit the unconventional gas reserves, particularly
syn gas, shale gas and coal
bed methane, off the North East coast. With
available through hydraulic fracturing and vertical drilling and the core infrastructure in place,
such activity can reduce the cost of gas and thus underpin the sustainability of the chemical
Tees Valley’s process sector is one of
the biggest clusters in the world and a key example of
led activity, generating £26bn of sales, employing 190,000 people and exporting
£12bn every year.
Affordable gas is a key feedstock of the process industry in Tees Valley
and critical to th
e sustainability and viability of the petrochemical and polymer sectors not just
in Tees Valley, but in the UK as a whole. Such industries underpin all advanced manufacturing
sectors, providing feedstock for the aerospace, automotive, offshore wind and con
sectors amongst many others.
The UK therefore has a major opportunity to exploit such reserves in a sustainable manor to
secure the future of the oil and gas, chemical and advanced manufacturing sectors,
safeguarding hundreds of thousands of jo
bs. There is potential in fact for, if sufficient energy
reserves are recovered, the Tees Valley and the UK to be at the forefront of advanced
manufacturing activity as more affordable energy prices will attract major investment by
industry, allowing the U
K to compete with China and the USA (see above).
According to the British Geological Survey there are significant reserves in the Northern,
Southern and Eastern North Sea.
However, while the technology to exploit these opportunities
is fast becoming ava
ilable through hydraulic fracturing and vertical drilling techniques,
government support is needed to join up and invest in infrastructure taking a holistic approach
to unconventional gas recovery.
Tees Valley is ideally placed to take advantage of these
moves given the engineering
expertise, logistics infrastructure and multinational companies based here. In fact, the supply
chain for oil and gas in Tees Valley is wide, incorporating design, construction, operation,
maintenance, decommissioning, marine,
subsea and support services, such as logistics and
health and safety.
House of Commons Energy and Climate Change Select Committee Report, 2012,
Aside from exploiting unconventional energy sources, the other factors re
development of the UK supply chain f
rom a Tees Valley perspective are
finding skilled personnel and young entrants to the industry,
(see answers to questions below); the availability of bank finance;
the difficulties of
SMEs accessing major contracts
; need for technology innovation
; and the perception of the
Firstly, many firms in Tees Valley, both large and small, have found it difficult to access bank
finance to enable investment in key infrastructure enabling business growth. In addition, banks
are making it more diffi
cult to obtain performance guarantees that are required by clients,
particularly on key projects with the likes of BP, Chev
on or ExxonMobil.
There is a need for the
UK supply chain to identify client requirements and for the government, LEPs and the priva
sector to assess gaps in these supply chains which could be plugged either through new
investment or the encouragement of growth in existing SME capability.
Secondly, procurement is an obstacle, making it difficult for SMEs to access major contracts
particularly those relatively inexperienced in the market place
or be aware of such contracts
being made available. Such a situation is heightened by the growth of National Oil Companies,
such as in Russia, Venezuela and China, and projects in volatile
regions such as Nigeria and
the Middle East. State interference, combined with incoherent rules and regulations, clearly
heightens the risk for investors.
There is clearly also a need
for more innovative technology solutions to enable enhanced oil
a factor restraining the development of the UK supply chain. However,
SNF Oil and Gas
are bucking the trend
. Currently investing in
, SNF employ over
3,000 people worldwide and are the global leader in producing water
olymers used in
enhanced oil recovery. The firm are doing so, and creating 250 new jobs, due to feedstocks
available from the chemical industry
in the area
There is also a clear need for government and industry to talk up the opportunities remaining in
the UKCS, with further recovery estimated at 15 to 24 billion barrels of oil equivalent (boe) and
current investment plans to deliver around 12 billion boe. With new developments, such as
West of Scotland, there are significant opportunities for the UK sup
ply chain to exploit, far
removed from the perception of managed decline.
Are there any areas where the UK industry is losing out to lower cost solutions elsewhere?
The UK supply chain does come under competitive pressure from lower c
ost solutions across
the globe, including China and the USA (see above), with the exploitation of affordable
unconventional energy sources, such as shale gas, and will continue to do so.
In fact, it is not always the case that the solution is at a lower
cost, but that the tender prices is
low and may not reflect the final price. Government needs to ensure that a level
playing field operates so that UK firms can continue to compete on a global scale.
How can we improve confidence and visibil
ity of the supply chain in the UK?
A number of measures could be put in place to improve the confidence and visibility of the oil
and gas supply chain in the UK and the significant critical mass built up in Tees Valley.
urety in the tax syste
is critical to encourage major oil companies to invest in
exploration, production and decommissioning (see more below). Secondly, f
encourage the development of smaller oil fields following the extension of the Small Fields
would be welcomed
Thirdly, strengthening the visibility of key oil and gas supply chain locations, such as Tees
Valley, would help further place the industry and the area on the map for major firms when
making investment decisions. Promoting the strengt
hs of Tees Valley’s offshore fabrication,
engineering design and subsea sectors, for example, could help encourage more inward
investment to the UK. It is essential that UKTI fully engages with Local Enterprise Partnerships
to achieve this.
discussed above, providing more clarity over shale gas and the exploration and
recovery of unconventional energy sources to foster growth in the UK sector, particularly in the
North Sea. Providing government support for research and development into new te
as well as to improve and adapt existing infrastructure could start to catalyse growth in this
area and help maintain Tees Valley and the UK’s position as a leader in export
In the same way, enhancing the assistanc
e to UK companies, particularly SMEs, to access
export markets across the globe
through finance guarantees, market intelligence,
procurement advice, joint venture opportunities and trade shows
would improve the
confidence of the supply chain.
rtnership working between LEPs and industry
representative bodies, such as NOF Energy in the North East, are key to this.
In this regard
, there is a need to ensure that the size of supply chains in the UK are adequately
reflected. For example,
Tees Valley’s oil and gas expertise is underestimated within statistics
from the ONS. This is due to a large number of companies providing key services from Tees
Valley having headquarters located in London or their oil and gas operation not appropriately
reflected in Standard Industry Classification (SIC) definitions. A more comprehensive way of
representing the industry is thus needed to enhance the visibility of key clusters of economic
Where are the synergies with other sectors?
clearly synergies between the oil and gas sector and the growing renewable energy
industry, principally offshore wind. Tees Valley is ideally placed to take advantage of these new
opportunities given its expertise in engineering and manufacturing, particu
larly in fabrication,
subsea trenching and cabling and engineering design.
For instance, Dutch engineering firm Heerema, who have had a base in Hartlepool employing
over 500 people for a number of years, are servicing both the offshore oil and gas sector
moving into the offshore wind industry. A specialist constructor of oil and gas platforms and
substations, the firm recently completed work for the Sheringham Shoal offshore wind farm off
the coast of Norfolk.
This is just one example of a number of
firms established to supply the oil and gas sector from
Tees Valley who are successfully growing through exploiting offshore wind opportunities.
These include firms with headquarters in Tees Valley, such as Francis Brown, Hertel and
MechTool who have expa
nded and taken on over 50 new staff over the past year as a result.
Massive capital expenditure has and is taking place in the area, with JDR Cables having
doubled the size of their factory in a £11m project, AV Dawson investing £6m in new logistics
astructure and T
AG Energy Solutions
opening a £20m centre to manufacture tower
for offshore wind turbines and oil and gas structures.
The potential supply
chain for offshore wind in Tees Valley is more than 300 companies,
employing over 20,00
0 people. 160 tees Valley firms are already directly involved (or actively
doing so) in the offshore wind
sector, the vast majority of whom have built up their
expertise and experience in oil and gas.
What could government d
o to provide more information and support to the industry and in
particular your sector?
A key ask of government is to provide fiscal certainty around decommissioning.
Decommissioning in the North Sea should be seen not as a negative, something which wi
divert resources from exploration and production, leaving many oil fields redundant, but as an
opportunity to extend the life of existing fields and infrastructure, building up skillsets which can
be exported around the world, and generate jobs and econ
omic impact in key centres of
activity, such as Tees Valley.
companies such as
a key player in this market, specialising in the
dismantling of offshore platforms, the area is ideally placed to take advantage of these growing
portunities. NOF Energy estimate that
there are over 600 offshore oil and gas installations in
the North Sea, 470 of which are in UK waters, including platforms, pipelines and subsea
opportunities for engineering firms, ship opera
and logistics and port
related services, the latter of which Teesport and firms such as Svitzer
Marine in Tees Valley would be in prime position to exploit
. More certainty from government is
required around the tax regime for decommis
sioning and government should work with industry
to promote the opportunities and export value, to the likes of Norway, Holland the Far East, of
decommissioning, potentially a very valuable sector for areas such as Tees Valley.
As described above, both
promoting the UKCS as a real opportunity for foreign direct
investment, and supporting export opportunities for the UK supply chain in developing oil and
gas hotspots, will help support the industry.
To further strengthen the UK supply chain, Government
can influence companies operating in
the UK to maximize the use of indigenous companies, particularly through DECC, with the
opportunity to give the department more powers of influence based on the former Offshore
Supplies Office (OSO).
To derive maximum v
alue from the oil and gas sector for the benefit of
the UK, government should put more pressure on the oil and gas majors
benefiting from a
rable tax regime and incentives in the UK
to use UK content.
In addition, government could facilitate par
tnerships between key UK oil and gas locations,
such as Aberdeen and Tees Valley. The two have close links and closer partnerships can aid
the growth of joint ventures allowing UK firms to compete on a more level footing across the
ortunities exist for Tees Valley to provide a
location for Aberdeen, which
is becoming increasingly oversaturated and will continue to be so for the foreseeable future.
Taking pressure off Aberdeen through the provision of a closer, experienced o
ffshore base, will
further enable the exploration and production of energy off the North East coast.
Therefore, a holistic, bold and innovative forward
looking strategy for the UK oil and gas sector,
incorporating certainty on taxation, decommission
ing, shale gas, enhanced oil recovery, skills
and technology transfer, is essential.
EXPLOITING INTERNATIONAL OPPORTUNITIES
What are the barriers to companies exploiting overseas opportunities?
The UK is a key exporter of oil and gas services, annual
ly exporting $10bn in oil and gas
equipment and services
A survey of Tees Valley oil and gas companies found that over 30%
said more than half their turnover was export related. The study al
t Tees Val
companies that have prospered have emb
raced the international aspect of the market by
forming joint ventur
es and collaborative partnershi
The main issues to companies
enhancing this and exploiting overseas opportunities are, as outlined above, around
procurement, bond guarantees, completio
n and state involvement.
On the latter,
the extent of collaboration between international oil companies and national oil
companies (NOCs) is growing. Joint ventures are becoming more and more commonplace.
The Tees Valley companies that have prospered in t
he oil and gas market are those that have
embraced the international potential of their business and who have established overseas
branches, joint venture companies or other ventures in order to maintain the provision of their
services to their customers a
nd to provide such service regardless of the market location.
Examples include PD & MS Energy, part of Wilton Group, who have set up operations in Brazil.
Tees Valley has looked to take an innovative approach to bond guarantees, with a successful
l Growth Fund Round 3 application to create a Contract Catalyst bond scheme.
designed to assist Tees Valley’s manufacturing base who are looking to grow and bid on large
contracts, but may be limited on being able to provide the security required t
o set up the bond
facility required. At present companies are often shortlisted on technical capability; however
when looking to enter new international markets can be deemed as higher risk and as such are
required to provide higher bonds than existing com
petitors in the market
them uncompetitive. This is especially true for offshore oil and gas and new sectors such as
offshore wind. Bonding is also a major problem for companies looking to increase their existing
bond facility to account
for increased project scope from existing clients or contracts. £10m has
been awarded by the UK Governments Regional Growth Fund to assist with the provision of
performance and warranty bonds to unlock private sector growth and create jobs in Tees
What more could government do to support the sector in this area?
In order to support the growth of the Tees Valley oil and gas supply chain, government could,
through a stronger, more proactive approach from
, work to identify global opp
the sector which local companies, particularly SMEs, can access and build such businesses
capacity to do so. More localised events looking at international trends would also be
Major opportunities which could be highlighted includ
e those around shale and natural gas and
called ‘tight oil’ being developed across the world through innovative techniques like
horizontal drilling and hydraulic fracturing, including in the USA, China and Russia.
to lower barriers to entry in
to these growing markets can spur high value manufacturing export
activity in the UK.
Government should w
ork through the LEPs
in engaging with large
firms, particularly those with
headquarters overseas, to promote the opportunities in the UK to exploit o
il field opportunities.
For example, Heerema in Hartlepool won a contract in the North Sea in 2011 to construct a
2,700 tonne platform for Centrica’s York Field Development gasfield in the North Sea. This
safeguarded over 230 jobs and created 190. Heerema’
s Vice President said that; “The good
relationship with our client Centrica and the ongoing investments of Centrica for the UK sector
of the North Sea create an excellent opportunity for our fabrication facility in Hartlepool for
continued employment condi
tions and additional supply chain jobs in the region.”
A clear action plan is needed, developed with industry and key local bodies such as LEPs and
NOF Energy, to enhance the ability of UK firms to access new markets.
What markets should UK based suppl
y chain companies focus on?
According to a 2012 survey by industry representative body NOF Energy of their over 400
members involved in the oil and gas sector, the top export markets
were the United States,
Brazil, Holland and Australia. The latt
er is now one of the biggest growth markets,
alongside India, Venezuela, Kazakhstan and South Africa.
The Far East, Middle East and
Africa (including Nigeria, Egypt, Libya and Angola) are also viewed as big growth areas.
Furthermore, there have been large
increases in the number of operators venturing into new
markets in shale gas and deep water, plus heightening demand for LNG, with huge potential
reserves identified in the likes of Colombia, Angola,
the Arctic Circle and the Gulf of Mexico.
QA WeldTech, a SME in Middlesbrough, is an excellent example of where the UK supply chain
should be focused. It has invested £500k in machining and fabrication equipment to service the
export market, with over 50% of the complex pipework they produce exp
orted. QA say that;
“we used to work heavily in the North Sea but in the last 24 months we have broken into new
worldwide markets in the likes of Malaysia, Australia and the Gulf of Mexico. We are currently
looking at a couple of ventures out in Brazil whi
ch is great news for a Middlesbrough company
What are the sectors which have synergies with the oil and gas supply chain?
Please see answer above in relation to synergies with other sectors. Alongside offshore wind,
gas skills are transferrable to the likes of carbon capture and storage, wave and tidal
TECHNOLOGY DEVELOPMENT AND TRANSFER
What specifically can industry and government do to incentivise the development and
plementation of new technology?
To promote further knowledge transfer, government could establish a specific Oil and Gas
Catapult Centre to spur research and innovation in fields such as enhanced oil recovery,
technology for the separating oil and water,
remote sensing for leak detection, horizontal
drilling, fracking, data ana
ysis, surveillance tools and intelligent valves.
It could also work with the Technology Strategy Board to promote more competitions to
developing innovation and new technologies i
n the sector that extend the life of offshore
installations, develop processes for further enhanced oil and recovery and provide innovative
solutions for exploration and production.
An example of such research and development includes
Aker Solutions in S
services group Aker Solutions is set to create up to 100 jobs in its new Stockton
engineering office by increasing the drilling technologies side of the business. The
been chosen for investment by the company because of its in
dustrial tradition and skilled
engineering base. The office will house product engineers who will be working on topside
drilling equipment for the company, which supplies deepwater drilling packages for offshore
drilling rigs and drillships around the worl
academia collaboration through Knowledge Transfer partnerships and
other mechanisms would also be extremely beneficial. Tees Valley’s oil and gas sector is
strengthened through the expertise of Teesside and Durham Universities i
n the area. The
former, through Teesside University Open Learning (Engineering) provides flexible learning
opportunities across the globe and has done so for 30,000 students and employers in the
offshore oil and gas industries over the past 25 years. Teess
ide University works closely with
local oil and gas firms, such as helping MechTool Engineering to develop their management
An opportunity exists for new technology to be developed through greater cooperation between
academia, such as Teesside U
niversity in Tees Valley, and new sources of energy
requirements. LEPs can play a crucial role in creating a joined up approach.
How can industry work together to retain experienced mid
career engineers and retrain
those looking for
career changes from other industries for the benefit of the whole sector?
New opportunities in the oil and gas sector, including exploring deeper water, looking at
enhanced oil recovery and shale gas, brings a
clear need for people with specific experien
particularly in the fields of specialist engineering and in the subsea sector. It also requires
career engineers to enter the sector from other industries.
Tees Valley research did find that companies were happy with the levels of ski
lls available in
the area, given the North East’s reputation for engineering excellence and residents of the area
working on offshore projects across the globe.
As Regional Manager of Aker Solutions described
when announcing new investment in the drilling
technologies division in Tees Valley: "The North
East region has a proud industrial heritage with a huge engineering competence base. Additionally,
it contains several excellent educational institutions that produce exactly the type of competence
for example structural and mechanical engineers. We also know that many engineers
commute from the North
East to other parts of the UK. Hopefully our plans will make some of them
Tees as an even more attractive option."
age profile of the workforce
in Tees Valley
is increasing, however, and there is a
clear need to encourage young people into the industry and develop management skills within
companies, particularly SMEs.
Furthermore, according to industry research by sec
body SEMTA, the industry will require more than 20,000 new personnel in the next four years
to address issues such as an aging workforce and the emergence of new energy sectors
(offering potentially higher pay).
Key training programmes are nee
ded to ensure pathways between industries. NOF Energy are
leading the way on this, having joined forces with the
British Forces Resettlement Services on
creating a Military2Energy Careers Service. As NOF
ach year, more than
duals leave the Armed Forces. This figure is set to dramatically increase as the
MoD plans to make 54,000 additional redundancies before 2015. Many of these Service
leavers are equipped with specialist skills that are perfectly transferrable to roles in th
The Military2Energy Careers service offers NOF Energy members a direct pipeline to
this untapped skills resource.” Oil and gas firms are clearly well placed to use the engineering
of armed forces personnel.
lley is also leading the way in developing the engineering workforce of the future. Our
first class colleges and universities specialize in engineering courses, with a network of local oil
and gas training providers including TTE, NETA, The Faraday Centre,
Solutions, TWI and Falck Nutec providing comprehensive, industry
How can we ensure we use the expertise and skill of the Oil and Gas Industry in building
offshore wind, wave, tidal power and in making Carbon Captur
e and Storage a reality?
To a certain extent, this is already happening with Tees Valley training providers such as Falck
Nutec and Hartlepool College investing in facilities and equipment to allow learners to operate
in the offshore wind market.
ditional steps can government and industry take to address the skill gaps?
Work to promote the sector for women to enter the oil and gas industry, where they are
encouraging firms to adopt more flexible working arrangements.
ore apprenticeship programmes for the oil and gas industry. Stakeholders in the
Tees Valley are actively promoting apprenticeship training programmes, with recent examples
include Modus Seabed Intervention joining forces with training provider TTE to provi
skills to young people via electrical apprenticeships. Tasks includes working on the rebuilding
and maintenance of Modus’ remote operated vehicles.
Government can do this by building on the example of the Darlington Foundation for Jobs. This
aunched by Darlington Partnership in January 2012, with representatives from Darlington
Council, local businesses, schools, colleges and Teesside
and the patron is the Rt Rev Justin Welby, now Archbishop of C
Darlington’s local newspaper, the Northern Echo, has committed to run a yearlong campaign
showcasing young people who are eager to work and examples of companies who are putting
Many private sector firms, AMEC, MechTool an
already come forward in support of the Foundation for Jobs, which aims to create
(100 created so far)
and internships for the under
(over 100 and
Encourage UK residents working on projects around the world
to come back to the UK.
According to Oil and Gas UK, Tees Valley residents make up one of the largest employment
bases of offshore oil and gas workers. Alongside Scotland, the wider North East and East
of Tees Valley residents work in the i
PERCEPTION AND PROMOTION OF THE INDUSTRY
What additional steps can government and industry take to promote the sector?
Increase the visi
bility of major clusters of the oil and gas supply chain in the UK. For example,
in the same wa
y as highlighted by CORE status for offshore wind.
economic impact of the oil and gas sector upon the UK economy and upon economic areas
such as Tees Valley in order to make people aware of the importance of the sector to
nd energy security in the UK.
The Tees Valley is very aware that, because the exploration and production of hard to recover
and unconventional energy sources will be carbon and energy intensive,
research is required to look at how to c
onvert emissions into vehicles such as carbon capture
and storage to reduce global warming. This can also help support Tees Valley’s process
industry, part of the area’s drive to move from a high value high carbon to a high value low
an area with skills, experience and a workforce that is willing to work and there
are people from the area working in the oil and gas sector all over the world. With excellent
river frontage facilities with a deep sea port allowing direct, unres
tricted access to the North
Sea, it is a location ideal for offshore oil and gas. The growing supply chain can provide local
economic growth if the opportunities are promoted. Oil and gas offers people exciting,
paid careers and that mess
age should be further challenged to young people
via schools and colleges.
Work with all relevant stakeholders, including industry, local enterprise partnerships, local
authorities and member bodies, to promote the expertise, impact and exciting opportun
the sector. As the Chief Executive of Oil and Gas UK explains; “If people don’t know about us,
if they don’t understand what a great industry this is and what great prospects it’s got, that it’s
not on its last legs, that it’s got many decades yet
to go, they might make the wrong decisions
with regard to career options.”