:00:07. > :00:17.more for attacks when they hold senior positions. Now, it is time
:00:17. > :00:30.
:00:30. > :00:35.for leading questions. For centuries, Aberdeen looked to
:00:35. > :00:40.the North Sea for fishing and trading. Four decades ago, it began
:00:40. > :00:47.a radical transformation. Well was discovered under the sea. One local
:00:47. > :00:53.family firm spotted the opportunity to carve a niche in the new
:00:53. > :00:57.industry under its young Chief Executive. Four decades later, the
:00:57. > :01:07.company is a global leader in engineering services for oil and
:01:07. > :01:14.gas fields. After all these years at the top, Sir Ian Wood has just
:01:14. > :01:21.retired. Just before he stood down, he took time to reflect and told me
:01:21. > :01:27.candidly about himself and how it all began.
:01:27. > :01:36.At the back to 1969. The first major find of oil. You were in your
:01:36. > :01:46.20s. One was in your mind? Had made a reasonably successful start in
:01:46. > :01:53.
:01:53. > :02:01.the family business. I had no idea them, but enough interest to want
:02:01. > :02:11.to understand the business. We were faced with fairly and patronising
:02:11. > :02:21.Texas cowboys, which made us more motivated. I had no concept of what
:02:21. > :02:22.
:02:22. > :02:28.might happen. I had a real eye- opening visit to Houston, when I
:02:28. > :02:38.visited this completely different environment with acres of borewell
:02:38. > :02:40.
:02:40. > :02:44.manufacturing and open stores and pipes. I remember coming back on
:02:44. > :02:50.the plane and wondering how I would explain to my colleagues would we
:02:50. > :03:00.had to do. That was the first time I realised my family business had
:03:00. > :03:02.
:03:02. > :03:09.to change. He say the Americans irritated you a bit at that time.
:03:09. > :03:16.Was that the case across Aberdeenshire? Some people in
:03:16. > :03:23.Aberdeen did not want oil at all. I heard a really -- local people
:03:23. > :03:32.really annoyed and I said, let's try and take some control. There is
:03:32. > :03:41.still a dichotomy but now it is 90% positive and 10% negative. How did
:03:41. > :03:51.you go about growing become -- company? People say, did you know
:03:51. > :03:51.
:03:51. > :04:01.then what he would become? It was seeing the horizon change each year.
:04:01. > :04:03.
:04:03. > :04:11.We started in a joint venture with the Weir Group. We bought a
:04:11. > :04:17.shipyard in Aberdeen in 1972. There was a brave stab. People said, how
:04:17. > :04:27.one of can a small company did this? We set up an oil field based
:04:27. > :04:28.
:04:28. > :04:38.in Aberdeen. It was a bit of foresight. It turned out to be a
:04:38. > :04:38.
:04:38. > :04:48.very good acquisition. My father said, did -- do you know what
:04:48. > :04:51.
:04:51. > :04:56.you're doing? I did not really but I had enough confidence. I have
:04:56. > :05:01.never been a risk-taking buccaneer. I have always taken a calculated
:05:01. > :05:04.risks and thought things through carefully, mitigating the risks. I
:05:04. > :05:11.think we could have grown a lot faster if we had been very
:05:11. > :05:21.aggressive. There was going to ask you, what about the missed
:05:21. > :05:24.
:05:24. > :05:30.opportunities? Do you have any regrets? There is a company that is
:05:30. > :05:35.now a major public company and we could have bought it for about �2
:05:35. > :05:45.million in 1976. We were in negotiations to buy it then and I
:05:45. > :05:45.
:05:45. > :05:55.thought was too expensive. We made some mistakes. As chairman of a
:05:55. > :06:05.company with 43,000 employees, it must require a lot of delegating.
:06:05. > :06:09.
:06:09. > :06:15.Is that a top in to do? Not at all. -- a toff thing to do it. We have
:06:15. > :06:23.quality people at all levels of the organisation. We try and get the
:06:23. > :06:28.best people. We have had a really good team of people for a long time.
:06:28. > :06:32.One of the most satisfying things is seeing how you do delegate and
:06:32. > :06:42.how successful it is. And how you can delegate things to people who
:06:42. > :06:43.
:06:43. > :06:53.do a lot better job than you would have. When you cease to be chairman,
:06:53. > :06:57.how easy will it be to give up? big step was giving up the Chief
:06:57. > :07:06.Executive's role. Giving up the chairman roar, the biggest change
:07:06. > :07:16.there will be trying to get away from my mind so of thinking about
:07:16. > :07:21.
:07:21. > :07:26.the company all the time. Is it emotionally wrenching? Yes. But I
:07:26. > :07:34.have gotten used to work for a long period of time. I'm 70 years old, I
:07:34. > :07:44.think it is good to move on when things are going well. I will have
:07:44. > :07:44.
:07:44. > :07:49.a difficult period when I will have withdrawal symptoms. Looking at the
:07:49. > :07:59.ore industry in north-east Scotland, what obstacles stand in the way of
:07:59. > :08:03.
:08:03. > :08:11.its continued success? I guess one of the few regrets I have is the
:08:11. > :08:21.complete failure of the rest of the country to realise what a major
:08:21. > :08:24.
:08:24. > :08:29.impact this had. I think for as far back as you can remember, in terms
:08:29. > :08:39.of contribution to UK industrial activity, oil and gas has been way
:08:39. > :08:47.ahead then every other industry. We produce 41 billion barrels. We
:08:47. > :08:55.could produce another 25 billion. At $100 a barrel, that is 2000 $500
:08:55. > :09:05.billion. The figures are staggering. If you don't get it right, you will
:09:05. > :09:08.
:09:08. > :09:15.produce about half of that. There is still a massive amount of
:09:15. > :09:25.contribution to come, a huge prospects, and we really need the
:09:25. > :09:32.
:09:32. > :09:42.UK government focused on maximising what is to come. There has been a
:09:42. > :09:44.
:09:44. > :09:49.change and we have to ask, how do we get the industry to invest? If
:09:49. > :09:54.the investment is delayed for ten years, what will happen? We can't
:09:54. > :10:01.afford new infrastructure. We have talked before about the mindset
:10:01. > :10:11.been too parochial. Why is it that for decades, it has been
:10:11. > :10:13.
:10:13. > :10:17.underestimated, the importance of this? I think the context here is
:10:17. > :10:22.that it has not affected people. People knew it as something that
:10:22. > :10:28.was happening. I do not think there has been any real understanding of
:10:28. > :10:34.how big an impact it has had. Generally, people do not like to be
:10:34. > :10:41.associated with oil and gas and hydrocarbon. It is not necessarily
:10:41. > :10:49.seen as environmentally sensitive. Right back over the years, big ore
:10:49. > :10:57.was seen as bad. I hope they since the industry is paying more
:10:57. > :11:06.attention to its image now, there might be a rethink. When you think
:11:06. > :11:13.of the huge potential of shale gas opportunity in England, that is a
:11:13. > :11:22.life-changing issue for the UK. The industry has to be understood and
:11:22. > :11:29.able to engage with the local community. As it suffered from
:11:29. > :11:39.being at the end of the line in Aberdeen? We have been out of the
:11:39. > :11:42.
:11:42. > :11:50.way. We had a dreadful incident and the bad news is a massive
:11:50. > :11:55.disproportionate impact over a long period of time. This concerns me
:11:55. > :12:03.because it is important that the government understand the
:12:03. > :12:13.importance of this industry. We need to get close to communities
:12:13. > :12:16.
:12:16. > :12:25.and help them understand what we can do. When the pipeline blew up
:12:25. > :12:35.in 1988, how much to that change the industry? Usually. -- it
:12:35. > :12:36.
:12:36. > :12:39.changed it hugely. There was a shock. I don't think anyone believe
:12:39. > :12:49.that kind of incident could happen. It was a dreadful time for the
:12:49. > :12:51.
:12:51. > :13:01.industry. I visited 25 families. It was very tough. The result of that
:13:01. > :13:01.
:13:01. > :13:11.with the inquiry was a complete rethink in change of attitude.
:13:11. > :13:11.
:13:11. > :13:17.There was not in the single huge thing that led to it, it was just a
:13:17. > :13:27.whole lot of slackness but it led to a huge rethink. Lord Cullen came
:13:27. > :13:28.
:13:28. > :13:34.along with some very firm recommendations. Safety is court to
:13:34. > :13:38.everything we do in the industry. Let's go back to where you got
:13:39. > :13:45.started. You had a first-class degree in psychology and was about
:13:45. > :13:55.to become -- were about to become a lecturer. How important was that
:13:55. > :13:55.
:13:55. > :14:00.psychology training? It is very difficult to discern. The wisdom of
:14:00. > :14:10.hindsight, I guess and interesting people has always been a prime
:14:10. > :14:10.
:14:10. > :14:16.injured -- interest of mine. I have an intense interest in people and
:14:16. > :14:21.getting teams to give fans walk -- supporting them. That is what I
:14:21. > :14:30.have done over the years. I can't tell you to what extent that
:14:30. > :14:33.interest has driven me. I think what psychology dollars is that it
:14:33. > :14:43.gives a good insight into yourself and into what the people's
:14:43. > :14:45.
:14:45. > :14:49.No regrets about not becoming an academic? That would have been
:14:49. > :14:57.disastrous. As a young person you think you know what your strengths
:14:57. > :15:05.and weaknesses are. So there was the family firm and there was
:15:05. > :15:10.pressure to conform. My father had a small fishing business. His
:15:10. > :15:17.father had been a fisherman. He seemed to have done pretty well. He
:15:18. > :15:22.was not enjoying the best of health. I said to him and my mother, I
:15:22. > :15:29.would like to come in for three months and see if I can help a bit.
:15:29. > :15:35.When it came to the end of the three months, it was not difficult
:15:35. > :15:45.to improve the business. The simple thing was to put a secret code in
:15:45. > :15:51.all catch the same fishers and share information. I said to my
:15:51. > :15:58.mother, I hate to tell you this, but I would like to leave. That is
:15:58. > :16:07.not what she wanted to hear. She wanted a lawyer and a professor.
:16:07. > :16:12.She was a lovely lady. She did not apply pressure often. She wanted
:16:12. > :16:18.her son to become a professional. It was a difficult time for a
:16:18. > :16:24.couple of months after that. remain very much rooted in academia.
:16:24. > :16:34.You are very passionate about Aberdeen as well. Do you think it
:16:34. > :16:35.
:16:35. > :16:39.is underrated? Let me correct you. It is a different company. A
:16:39. > :16:46.different business. I am not sure people know what a global business
:16:46. > :16:54.it is. A global business does not have a star business model. It does
:16:54. > :17:01.not have tentacles. It is a matrix. Scotland does not completely
:17:01. > :17:09.understand what globalisation is. I am a British Cristobal, but her
:17:09. > :17:13.love Scotland. -- Brit, first of all, but I love Scotland. We spend
:17:13. > :17:21.too much time and analysing it. We create too many internal
:17:21. > :17:26.disagreements. We should be looking to move ahead. If you look at the
:17:26. > :17:34.real competition, it is over there, not over here. In regards to the
:17:34. > :17:38.question of Aberdeen, my real concern about Aberdeen, and I
:17:38. > :17:44.wasn't the right place at the right time and had some of the right
:17:44. > :17:53.skills, my concern is how it is managed. I mean in about 30 years'
:17:53. > :17:59.time. My father and his father and his father lived here. The last
:17:59. > :18:03.thing I would like to see his future generations looking back and
:18:03. > :18:09.saying, they did very nice for themselves. That is the great
:18:09. > :18:16.danger. Aberdeen has a massive number of advantages. It is in
:18:16. > :18:23.enterprising City. Cosmopolitan. A good quality of life. Two great
:18:23. > :18:31.universities. But it has a major Achilles heel. It is involved in a
:18:31. > :18:37.single depleting industry. Without over dramatising that, I believed
:18:37. > :18:44.that we could not be in shape in 30 years' time. We must not wait for
:18:44. > :18:51.25 years' time when it starts to go down. We need to invest in Aberdeen
:18:51. > :19:01.in the next five, 10, 15 years. pretty much and the standard you
:19:01. > :19:02.
:19:02. > :19:11.have become fabulously rich. You are worth over �5.2 billion. People
:19:11. > :19:20.will be cynical about my answers. My primary interest his business
:19:20. > :19:25.achievement. I am going to spend a lot of time in the next two years
:19:25. > :19:32.giving away money. I will give people satisfaction and achievement
:19:32. > :19:38.from that. The whole approach revive the Prix has been as a
:19:38. > :19:48.business. I want to get people together and opportunity together.
:19:48. > :20:01.
:20:01. > :20:11.You are also famous for the way the to spend your money. 70 years old.
:20:11. > :20:11.
:20:11. > :20:21.I am careful. I do not like seeing money spent poor relief. -- chorale.
:20:21. > :20:22.
:20:22. > :20:32.You are focusing on sub-Saharan Africa. Rwanda, Tanzania. Is that
:20:32. > :20:32.
:20:32. > :20:39.appropriate for a teetotaller? philanthropy came about, it is
:20:39. > :20:44.difficult to explain this. People can be very cynical. I cannot tell
:20:44. > :20:53.you exactly where the interest came from. I have been incredibly lucky
:20:53. > :20:56.in making money. Secondly, as I went around the world, we have the
:20:57. > :21:04.benefits of being a global company. We are a global company with the
:21:04. > :21:11.benefits of that. You cannot not see the kind of black holes of
:21:11. > :21:14.poverty and despair and inequality that exist. I fundamentally believe
:21:14. > :21:21.that if you are getting the benefits of being a global citizens,
:21:21. > :21:30.you also have a responsibility. The second point, which people say is
:21:30. > :21:40.even more corny, I do not know how it came about. Just look around the
:21:40. > :21:45.world. We are privileged to be here. I think part of that is handing
:21:45. > :21:50.over something better then you have. Reading into how you are going
:21:51. > :21:56.about, building tea marketing businesses in Africa, you approach
:21:56. > :22:02.it in quite a distinctive style. You are a businessman and Engineer
:22:02. > :22:09.getting into development. We do not give money. We invest money to help
:22:09. > :22:15.people build themselves. We look at what we can do to significantly
:22:15. > :22:24.improve productivity, yield, quality, price as ticket for the
:22:24. > :22:28.tea. A lot of them operate in a monopoly environment. How can we
:22:28. > :22:37.work constructively to persuade them it is in their interest to
:22:37. > :22:43.give more help to small farmers. It is a business approach. Coming back
:22:43. > :22:47.to Aberdeen. A lot of success and get out and go built around gas.
:22:47. > :22:57.You have also dealt with development across the Scottish
:22:57. > :23:01.
:23:01. > :23:05.economy. Why is it so poor across international standards? I do not
:23:05. > :23:12.want to run down Scotland. As a global citizens, Scotland is one of
:23:12. > :23:18.the nicest place in the world. The second thing I'll say is that
:23:18. > :23:22.Scotland and Scottish industry is a thousand miles better than it was
:23:22. > :23:31.20 years ago. In terms of identifying companies and its
:23:31. > :23:39.entire approach and attitude. The problem Scotland has is that far
:23:39. > :23:46.too much of the economy is focused on the public sector. We can point
:23:46. > :23:54.to a lot of areas where there is a lot of improvement needed. But it
:23:54. > :23:59.has improved vastly. We are still seen as, not identified as a
:23:59. > :24:08.successful nation in the world. I believe that oil and gas is an
:24:08. > :24:18.exception to that. Do you think the prospect of independence could
:24:18. > :24:20.
:24:20. > :24:26.helped or hindered Scotland? might help or hinder? Might use and
:24:26. > :24:32.independence, it is incredibly political. I would like to see a
:24:32. > :24:38.lot more rationality apply to this. Junior when attempts made to look
:24:38. > :24:45.at the benefits of continuing with the union for the benefits of
:24:45. > :24:50.independence. What we must ensure is that if you take a business like
:24:50. > :25:00.mine but the uncertainty caused by the debate does not cause a pause
:25:00. > :25:04.and investment. If you start talking about how you divide up the
:25:04. > :25:09.reserves between England and Scotland, the new tax regime that
:25:09. > :25:16.we might have, my plea to both sides would be to police have this
:25:16. > :25:23.debate in such a way they to do not cause a pause and investment. It is
:25:23. > :25:29.an important decision for Scotland. I would really like it focused away
:25:29. > :25:34.from the emotion and on the rational. It is a massive impact on