A word from the chairman
As Chairman of IRO - The Association of Dutch Suppliers in the Oil and Gas Industry, I am proud to announce the celebration of our 40th Anniversary by the end of this year.
40 years of experience, expertise and knowledge has brought us to the point where we are now. The main minerals of the Netherlands are natural gas and petroleum. Annual production in 2009 was 74 billion m3 of natural gas and 1.6 million m3 of oil. In the Netherlands and the Dutch sector of the continental shelf a total of 20 mining companies are operating at about 800 locations on land and around 150 at sea. Since the discovery in the sixties of the large gas field in Groningen, the Netherlands is one of the largest gas producers in the world and gives the Netherlands a leading position in Europe. Many new techniques have been developed since then. Also the Dutch oil industry has experienced major developments. The reopening of the Schoonebeek oilfield in the beginning of this year, is a great example of that. Due to new techniques, the oilfield will produce 125 million barrels of oil in the coming 25 years, which brings new perspectives.
The need for oil and gas will only grow, due to fast growing welfare societies. Not only in Europe and the United States, but also in upcoming industrialized countries like China, India, Brazil and other countries in Latin America. To this growing demand for oil and gas, companies react by investing in new projects, techniques and material. So do the Dutch suppliers and service companies.
A survey held by Ernst & Young in December 2010 among Dutch oil and gas supply and service companies, learned that the Dutch oil & gas services industry has a strong position, which is expected to hold for the next coming years. Compared to the situation in 2009, one is more positive on market developments, individual position and potential for growth. For many Dutch supply and service companies the recent worldwide recession has not been a major crisis. The majority sees recovery and expects an upturn within a year. The local market for suppliers is expected to develop for the better over the next 5 years and international market conditions for both service and other contractors are clearly expected to strengthen over the coming years. Concerns about bringing in enough orders have been replaced by that of the shortage of technically trained people.
A lot of work has to be done and demand for offshore companies will grow. A major challenge for the Dutch offshore industry is working in very deep water and arctic areas. Since the first drilling in 1947 (5,5 meters waterdepth) in the Gulf of Mexico, one worked at a water depth of 300 meters until around 1980. But now, thanks to ROV's (Remotely Operated Vehicles), it is possible to work at 3,000 meters below sea level. This is just another example of developments in the industry.
Another important market for the Dutch supply industry will be the decommissioning of abandoned oil and gas platforms at sea. This will become a gigantic market for the future, the only uncertainty is when this will happen. Thanks to their high standards in innovation and technology the Dutch suppliers are capable of meeting any challenge now and in the future.
A clear overview of the activities, products and services of the Dutch suppliers can be found in the Netherlands
Oil & Gas Catalogue 2011. The catalogue has been compiled with great care and can also be found online at www.iro-noc.nl.
Gert-Jan Kramer
Chairman, IRO
Association of Dutch Suppliers
in the Oil and Gas Industry.
