BP was the subject of better headlines recently with its announcement that safety measures would be the sole means of determining Q4 bonuses for many of its staff. The recent events in the Gulf of Mexico have again heightened the focus on safety and operational standards in the industry around the world, quite rightly in my view.

While the approach varies between territories, improving standards often means looking to the North Sea and adopting its working practices and regulations. The North Sea has had some of the most challenging conditions in the world, both in terms of technical and regulatory conditions. This means that our oil and gas companies and those in their supply chains work to the most advanced and most rigorous standards, which are generally regarded as global best-practice. As the search for oil & gas leads to even more challenging environments in terms of depth of drilling and offshore drilling conditions, I firmly believe that there is a window of opportunity for our oil and gas businesses to exploit a global demand for their services. I thought I would take this chance to reflect on this opportunity.

I see three main factors which justify my belief that our indigenous companies should be looking to move into new regions.

• the technical advantages they often have
• the networks of contacts across the world
• the sheer size of the markets in question

I also believe that the opportunity will pass, and so timing is also important.

Understanding Technical Advantages

The challenges of operating in difficult conditions have meant that North Sea operators have always had to be innovative. The technology which has been developed and used for many years in the North Sea is cutting-edge and new elsewhere. Sometimes this advantage is not fully appreciated. I believe that one reason why some firms have not yet exploited international opportunities is that they simply do not realise the quality of the products or services that they are supplying. As I spend time in different locations with my clients, I see clearly the ways in which what we regard as normal practice would represent a huge leap forward elsewhere. As the world moves towards adoption of improved technology, our companies should be looking to take advantage.

Using the Expatriate Network

A challenge in any sector when selling into a new market is getting the message across about the benefits of a product or service. In this case, the task is considerably easier due to the expatriate network I’ve mentioned. Companies looking to move into new regions will usually find familiar faces now working in those areas, often in key decision making positions. These people will be used to working to North Sea standards, and partnering with them to introduce these standards into new areas is an excellent way to increase the geographic spread of a business beyond its traditional base. Developing these contacts should be one of the first stages of any development strategy.

Targeting Growing Markets

The sheer size of the potential revenues is the third of my reasons why the global opportunity is so exciting. The North Sea is now a mature market, and the contrast with the developing regions, such as Brazil, could not be greater. From a UK perspective, it is easy to see oil and gas extraction as a declining industry with limited prospects. The key then is to target activity on those areas where the opposite is the case.

Time Is Of The Essence....

Many businesses and their managers understand the points above and are well advanced with their internationalisation strategy. For the others the opportunity remains but the time to take advantage may be limited. As a territory develops and matures, working practices and technologies become ingrained. It is absolutely vital for a new entrant with new technology or methods to be involved as early as possible to maximise the chances of these being adopted as standard practice. In addition, local players will also appear to fill any gaps in the market, and an early presence and influence is vital to ensure that this risk can be minimised.

In conclusion, awareness of the difficulties and dangers of offshore exploration has rarely been higher. As the focus intensifies on the prevention of future accidents, no-one is better placed to benefit than those with North Sea experience. The decision to become a global business is not one to be taken lightly. For those who have already moved to do so, the potential benefits are enormous. For those who haven’t, I believe that there will never be a better opportunity to do so.