CATHIE: A Case Study in diversification

At the time I joined Cathie in 2010, over half of our turnover was in the oil & gas market, and the business had maintained this position since its formation a few years earlier.

But that same year witnessed the Round 3 tendering of offshore wind developments in the UK, and the colossal scale of the exercise changed the strategic thinking of many supply chain companies. We were also beginning to consider our firm's sustainability and the sectors we worked in.

Moving into renewable energy

Offshore renewable energy projects became part of the natural flow of opportunities into Cathie, and our involvement with the sector grew. That was the case in the UK, Europe and internationally, where our network of offices exposed us to opportunities in several markets. The shift towards offshore renewable energy was particularly noticeable during the downturns we have witnessed in the oil & gas market. During these periods, falls in market activity in oil & gas were more than compensated by opportunities in offshore wind.

Renewables developers were keen to bring oil & gas knowledge and experience on board, and we were well positioned in that respect. Many of the principles and practices of subsea geotechnics and geophysics – as they relate to issues such as foundations, cabling and other infrastructure – are broadly applicable across both sectors.

And the European market – characterised by a sympathetic policy framework, development-friendly marine areas close to high populations and good wind resources – was a natural place for offshore wind to grow.

The benefits of oil and gas expertise

As the renewable energy industry has taken off globally, an oil & gas background is still a key advantage for prospective supply chain companies – and not just strictly technically. Many of the new developments are in historically oil & gas regions, such as Brazil, Vietnam and Australia, and we are now putting our long-standing knowledge and experience of such locations to work on behalf of renewables-focused clients. 

We still have a strong interest in the oil & gas sector and continue to support major operators worldwide. Oil & gas has faced tough times and acute cost pressures, but offshore wind – as a nascent industry – has faced not dissimilar challenges to become established as a viable sector. It has required a great deal of honest assessment and supply chain innovation to support cost reductions, and applying some of those learnings within the modern-day oil & gas environment is possible. Indeed, we're now at a stage where it's a two-way street in knowledge transfer.

At Cathie, we've now developed our market offering to the point where we don't have discrete oil & gas and offshore wind services; in effect, it's an offshore proposition that operates fluidly across both arenas. It mirrors a strategic trend that's also evident among major energy operators, who are increasingly extending their activities and rebalancing their portfolios into the realm of renewables. The oil & gas supply chain could take note of that direction of travel.

For companies looking to enter the global offshore wind market, big opportunities are looming, not least in areas such as floating developments where enterprises with an oil & gas background can make significant contributions. However, there are also challenges to bear: a market presence and local content are still seen as important, contracting and commercial conditions can be challenging, and there's an unrelenting focus on costs.

But the rewards are worth the effort for those who succeed in creating long-term relationships and becoming established in the supply chain.

Increasing diversity

Recognition as a renewable player can also yield benefits in attracting and retaining talented people and in supporting diversity. The oil & gas industry has worked hard to be more attractive to young people and women, but I believe companies embracing renewables and the wider theme of sustainability will be particularly successful. As an engineering consultancy, our organisation has increased its number of women employees in recent years; women now represent 30% of our workforce, and we anticipate that figure will continue to rise.

With over three-quarters of our turnover now derived from offshore wind and a track record of project delivery in marine energy, we're proud to be supporting the energy transition, becoming more sustainable – and promoting diversity as we do so.

 Contact: Gareth Ellery, Gareth.Ellery@cathiegroup.com