Oil and Gas Asia (OGA) is a 3-day exhibition convention that brings together all the important members and companies of the oil and gas industry in Asia.
OGA 2015 happened in early June, and Oakley Steel exhibited by having a stand there. We would like to sincerely thank everyone who came and visited us. We hope that you enjoyed the Turkish pastries Senay made for you and that you managed to gain first-hand experience of thickness of the steel plates that we keep in stock.
Oakley Steel Stand at Oil and Gas Asia 2015
Companies at exhibitions either make themselves a pretty stand (one company paid $200k just for the stand) or they bring along some of their products to show customers. We were next to one company that sold flexible pipes and one that sold valves. Both had physical products on display, and that’s something we’ve always wanted to do.
The limitation is that steel plates are heavy: many of ours are over 20 tonnes each. We know a lot of our customers are mechanical engineers.
So here’s a quick test: What happens if you load a concrete floor with 2 cubic metres of steel per square metre – assuming 8g cm3?
The quick and easy answer: You will have some problems with the structural integrity of the building as the weight of the plates rapidly exceeds the design load of the structure.
It’s the same problem if you put the plates in the basement – here’s usually a car park underneath – but even so, most steel stockholders either have much more robust foundations than are typical for a warehouse, or strict limits on the height that the plates can be stacked to.
So what we did is to make some mockups of the plates, based on actual plates we have in stock. We used high resolution photos of the actual plates to print stickers to make them look lifelike. We even managed to show the mill scale on some of the plates!
The result? Around 50% of visitors came up and tapped the display with their knuckles to see if it was wood or steel. They then looked at the plates and said ‘Wah!’ when told that they were actually this thick.
Great show. Great people. Thank you.
Our Take on OGA
OGA in Malaysia is very different to OSEA in Singapore. To a large extent, the show revolves around Petronas. None of the large oil majors exhibit but you get a lot of visitors from them – especially from Petronas and Exxon (the convention centre is between their office blocks). You then get a fair number of EPCs. They usually have large stands on the ground floor. Most are regulars but you will typically see several new entrants at each show (I’ve been going to it now for over a decade).
Visitor numbers are about the same as OSEA normally but the quality is a bit lower. With the manufacturing base less concentrated than in Singapore, you tend to get a lower percentage of executive level visitors and a lot more non-procurement staff coming from the nearby head office buildings.
Our Take on Market Sentiment
Malaysia is certainly a lot happier than Singapore. There’s still work even if some projects are coming to completion, and even if RAID isn’t delivering jobs as quickly as expected. Overall, we think people had priced in the low oil price to their business expectations and whilst times are hard, they don’t see them as disastrous. Some were even cautiously optimistic. No one was happy.