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14MTRNovember/December 2011?Despite a long-term decline in oil & gas production in the North Sea, its services and support industry has a bright future,? said John Westwood, Chairman of energy business advisors Douglas-Westwood, in Aberdeen recent- ly. Addressing a major event organized by the Norwegian British Chamber of Commerce on opportunities and challenges for the industry in the North Sea area, Westwood noted that the North Sea is a major world-class basin that for the past 40 years has delivered huge eco- nomic benefits to Norway and The UK. ?However, oil and gas production is in decline,? he said. From its peak a decade ago Norwegian total production is down some 32% and the UK 46%. Despite recent dis- coveries and development announcements it will not recover to historic highs. ?Norway is of course in a better position than the UK due to its slower depletion policy, recent significant finds and also it has the ?High North? ? the Arctic promises major opportunities, but at a price. ?The continuing challenge for both countries is to greatly slow production decline by focusing on maximizing recovery from existing fields and the multitude of small fields that remain untapped and extensively explore the northern & western frontiers.? OFS Boom ?But in the decades ahead it will be the support indus- try that has developed to serve North Sea oil and gas, that will ultimately deliver greater economic benefit than the oil & gas itself,? Westwood continued. Both nations have built major oil & gas services industries and developed world-class technologies and this combination is the lega-cy that will outlive local reserves. Large volumes of prod- ucts and services are already exported and both Aberdeen and Stavanger have become world-class industry centers. ?As evidence of this, consider the reason we are all here today ? the Offshore Europe Conference & Exhibition. At the peak of North Sea production a decade ago the show attracted some 24,000 people. In 2009 it was 48,565 and this week it may exceed 50,000 people from 110 countries. ?So while oil & gas production in the region is slowly declining the international importance of the oilfield service industries that have evolved here in the North Sea is increasing.? People problems ?The most significant problem both nations? industries face is people,? said Westwood. ?The baby-boomers are retiring, many young people are under-educated or have zero-value qualifications and those that are capable are often reluctant to enter an industry perceived as lacking in green credentials. The oil and gas industry clearly offers our young people a fantastic future, but is anyone in the education system telling them?? ?Pulling together operators & OFS companies to force an education & training culture is essential to assure the future. Undoubtedly the training sector is a great com- mercial opportunity. ? newsWestwood N.Sea Future is ?Bright? John Westwood, pictured addressing delegates at OceanTech Expo. MTR#9 (1-17):MTR Layouts 11/29/2011 10:22 AM Page 14