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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (49893)	8/26/1999 7:28:00 AM
From: Tomas	Read Replies (1) \| Respond to of 95453

Diversify to prosper, oil and gas firms told - Aberdeen Press & Journal, August 26 COMPANIES operating in the oil and gas industries were yesterday urged to find new markets, amid warnings that a higher oil price would not spark large-scale investment by oil companies. Kerst Troost, chairman of the Cost Reduction In the New Era (CRINE) Network and finance and commercial director of Shell Expro, advised firms to reduce their reliance on one industry. "It is unlikely that, even with the current oil price, there is going to be much of an increase in investment. It is important for suppliers and contractors to find alternatives....or they will be in trouble," said Mr Troost. He was speaking after addressing a seminar at Carnoustie Golf Course Hotel aimed at providing over 100 delegates with ideas for developing alternative markets for their firms. The event was organised by Angus Council in conjunction with Tayside oil industry partnership Dundee & Angus Oil Venture Group (DAOVG), a public-private sector alliance offering support to oil and gas sector companies. Aberdeen-based oil and gas majors and contractors and London-based oil and gas companies were also represented. Mr Troost said: "Oil and gas sector firms based in Angus and Dundee have a long track record of producing high quality, innovative products designed to reduce costs offshore. "Products developed for use in the demanding environment of the North Sea oil can easily be transferred to alternative markets such as the electricity and water industries." Mr Troost said support was available from organisations such as Scottish Enterprise, but a successful transition would depend on entrepreneurial zeal. He advised firms against straying too far from their core skills. "The risk attached to diversifying is greater the more they shift from their existing skills base." DAOVG oil development manager Ed Smith said: "Fluctuation in oil prices have led to significant disruptions within the UK oil and gas industry. These changes mean that new markets and opportunities are continually being sought." John Beaton, chairman of DAOVG, said the seminar was not a panic move. "The situation is not desperate," he said. pressandjournal.co.uk