Going global - how to reduce the risks involved in exporting

Exporting oilfield expertise and technology overseas to new markets can be risky, a lesson that the company Fracmaster Ltd. learned the hard way when it lost investment in the former Soviet Union. The company's demise illustrates some of the risks inherent in conducting business in a foreign country. To be successful at this Canadian oilfield service and supply companies must not only know how to recognize opportunities but also to recognize the possible pitfalls and learn how to avoid them. Before looking at the export market, oil and gas service and supply companies should first ensure that they have not missed any opportunities at home. Canada is the second largest market in the world after the U.S. But companies should approach the American market with caution. The rule that companies should approach the U.S. first does not necessarily hold in the oil and gas industries. Mexico is another country where Canadian companies should use caution. The current hotspots in exporting are countries in the Middle East and the Latin American countries. Saudi Arabia is interested in technology and expertise. although political factors in Iran will have to improve before commitment to that market is advisable. Industry Canada has a wealth of information and services available to companies interested in exporting. There are a number of government programs to help companies finance efforts to enter the export market. Industry Canada also offers a capital projects bidding program for Canadian companies bidding on projects greater than $1 million