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What trends have you seen in the Middle East upstream business?
I would say that for the oil and gas sector the market is pretty stable here. The national oil companies obviously have a role in bringing revenues to the Gulf states, so independent of the oil price, activities continue to be extended. Also, the international companies here are engaged in truly mega-projects. I don’t see a dip in that industry.
Where can oil and gas companies save money?
Having generators and compressors on a platform is not very efficient. We offer a solution which provides a link to the shore – and we are talking with customers in the Gulf area now about this. We have a DC link from the shore to a platform, and then AC distribution to the other platforms. Essentially one cable extends from the shore, and then distributes the energy from a hub platform. That’s much more efficient because you can generate the electricity from a power plant, instead of a generator. Some local firms are looking at this with interest.
How are you approaching the Iraq upstream market?
We have the strategy in place, and we will be doing some business there this year, but safety is still an issue. We need to be cautious. The first phase is going to be rebuilding the power infrastructure. When that is in place we expect the industrial plant business to take off.
What’s your 2010 forecast?
I think that the market for oil and gas in 2010 will be roughly the same. My expectation is that we will grow in oil and gas, because that has been our trajectory for several years.
How often are you in the Middle East?
I am in the Middle East at least once or twice a year, but I often have the regional and local managers over to Houston for group meetings. I’m primarily here to meet the customers and catch up with the managers. It’s important for me that we are still in dialogue with our customers even when orders aren’t necessarily coming. It’s important to stay in touch and visit them. It’s also polite!
How has Houston been affected by the credit crunch?
Houston is of course an energy town, but it didn’t go through the same bubble as many American cities.
House prices remained steady and didn’t shoot through the roof. Houston was hit of course, but it’s still better than the US average. There are some signs of general recovery in sight now.
