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WHOI-90-52

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Even with a lack of industr data on production, consumption, and trde, qualitative indicators<br />

drawn from primar marne end use setors suggest that the Europe MEI industry has the<br />

potential for growth.7 First, pressures are building for a reduction of the U.S. milta presence<br />

in Europe (Morrson, 1989). Although the effect of these pressures are uncertn, there are<br />

movements toward increase Europe independence from a defense seurity stadpoint. This<br />

alone could improve the market for MEI tehnologies, which are predominantly defense related,<br />

as Europe nations, parcularly members of the Western Europe Union (WU), sek to<br />

position their defense institutions to fill potential future gaps. It may also work to support loc<br />

MEI producers, to the plausible exclusion ofU.S firms. For example, since 1983 the U.S. trade<br />

surplus with Europe in defense manufactures has been dwindling. (Tota U.S.-Europe trade<br />

in defense manufactures has been declining as well.)<br />

Secondly, even with the recnt world hydrocbon market production surpluses, offshore oil and<br />

gas production in the Unite Kingdom and Norway are ecnomicaly importt and together<br />

surpass the tota value of U.S. offshore production. Forecsts for Nort Sea offshore oil and gas<br />

exploration, development, and production have begun to brighten. Although many factors ca<br />

influence Nort Sea hydrocbon potential, LeBlanc suggests that, in comparson with older<br />

producing regions worldwide, "the North Sea wil have the reserves to support a strong<br />

exploration and development pace far into the next century." Parcular emphasis wil be placed<br />

on the development of natural gas fields offshore, even in light of current pipeline transmission<br />

inadequacies. Offshore discovery costs are competitive with major onshore fields. Offshore<br />

drillng is expeted to continue strongly unless prices soften considerably below their present<br />

levels (about $18-20 per barel). Both Norway and the United Kingdom have institute national<br />

policies of support for offshore development and associated service industres.<br />

Thirdly, the commercial fisheries setor in Europe remains strong. Although no individual<br />

Europe countr ranks with the majors, combined Europe fish catches have been level at<br />

about 12 milion metric tons annually, exceing those individually of Japan, the Soviet Union,<br />

or China. Marne transporttion,too, is importt to the Europe economy, and Rotterdam and<br />

Antwerp are two of the world's busiest ports, makng the Netherlands and Belgium major world<br />

entrepots. In numbers of registres, the combined merchant fleets of Norway, the United<br />

Kingdom, France, Itay and Spain rival the flags of convenience: Liberia, Panama, and Gree.<br />

Europe countres have remained steadfast in their subsidization of the shipbuilding industr,<br />

as they consider it a source of genera public benefits. Europe even has develope its own<br />

discipline, "hydrography", concerned with mapping and navigational problems of the oceas.<br />

7 For example, a recnt study conducted for the U. K. ' s DTI on international programs and<br />

markets in oc technology has concluded that, worldwide, even the most mature oc<br />

tehnology industries, such as marculture and submarne cables, are growing strongly<br />

(Westwoo et al., 1989). The DTI study is a survey of oc technology in ten "setors" but<br />

does not focus speificaly on MEI. All ten setors employ MEI technologies, and the authors<br />

suggest that there is potential for future growth in oc tehnology.<br />

17

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