UK engineering services firm RED Engineering sees ‘strong opportunities’ in the offshore oil and gas sector for firms with capacity to deliver innovative fast track projects.
Despite the volatility of oil markets, continuing uncertainty over Brexit and pressure on costs, business development director Toby Bailey predicts that demand for leading-edge subsea technologies will remain robust over the next 12 months.
“As reserves become more difficult and costly to recover, the opportunity is there for those companies developing ‘innovative’ engineering solutions, which cut lead times on subsea developments.
“We will see strong opportunities in areas such as subsea vehicles, pipe and cable lay systems, subsea infrastructure and hardware while other knowledge-intensive services remain strong in the face of a continued focus on costs.”
His view is supported by an economic report* which cites technological advancement and the development of new skills as critical to securing the energy sector’s long-term future.
The so called ‘golden triangle’ of Latin America, Gulf of Mexico and West Africa will remain the focus for deep water activity, says Toby Bailey, but a declining North Sea sector will also herald additional work.
“We will see over the longer term an increase in the number of North Sea decommissioning projects. These will benefit regional offshore oil and gas service providers possessing the technical expertise and experience to meet operators’ shorter lead times.”
Toby Bailey also sees the emergence of new technologies in the coming months and points to digital – the fourth industrial revolution – and composites as areas to watch.
He says: “The effective use of digital technologies in the oil and gas sector will continue to improve efficiency, while composite technologies are already gaining traction in areas such as pipeline construction.”
Established in 2008, RED Engineering (formerly RED Marine) has rebranded in a move that reflects growing demand for its expertise beyond the offshore oil and gas marine sector. Services include consultancy, supply of bespoke equipment and qualification testing.