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Oil and gas firms’ US trip will generate £100m in sales

Oil and gas firms’ US trip will generate £100m in sales

Energy minister Fergus Ewing expects Scottish firms attending the world’s top oil and gas show to grow revenues by £100m over the next three years.

More than 60 companies and organisations from across the country are in Texas for the Offshore Technology Conference this week an event attended by more than 100,000 people from 40 countries.

And government business development agency Scottish Enterprise, which is supporting the trip alongside Scottish Development International, said the success of last year’s crop of attendees suggested the economic benefits of this year’s instalment could run to nine figures.

Mr Ewing said the OTC, in Houston, acted as the best “shop window” for promotion of the products, services, skills and expertise offered by Scottish companies.

“As these forecasts from Scottish Enterprise suggest, Scottish companies are increasingly successful in securing major opportunities in the offshore supply chain and lucrative contracts,” he said.

“Scotland has built a global reputation with many creative and innovative companies capable of identifying growth opportunities in overseas markets and making a significant contribution to such business for many years to come.”

Scottish Enterprise head of oil and gas David Rennie said firms were bound to reap the rewards.

“Increasing international activity in the oil and gas sector is a key priority for us and attending events such as OTC offers us a great platform for doing this,” he said.

“OTC is a world-class event and as popularity grows, so do the benefits of attending.”

Almost half the 63 attendees are in Houston for the first time, with many hoping to emulate the success of three supply chain firms which have already expanded into the US market.

Aberdeen-based trio Houlder, AEL Specialist Electrical Distributors and Magma Products have all opened new operations in the American oil capital this year recognising the growth opportunities offered by the US market.

”OTC offers some really exciting opportunities for our companies it’s a place where new contacts are forged, existing ones strengthened and new business is done,” Mr Rennie added.

“I can’t stress enough the importance of expanding into new overseas markets to grow the sector.

“Houlder, AEL and Magma Products are fantastic examples of ambitious Scottish companies which are seeing real growth as a result of their successful exporting activities and I wish them every success with their new operations in the States.”

New Magma vice president Rachel McIntyre, who expects to create 10 new jobs in Houston by the end of this year, said she believed there was scope for “strong growth” in the market.