Aberdeen occupies an exciting position as the acknowledged Offshore Energy Capital of Europe. Indeed, it has become a major player on the global stage since the arrival 25 years ago of the oil and gas industry, which now spends #9bn a year in the North Sea.

In and around the city a generation of companies has grown alongside the developments taking place offshore, allowing Aberdeen to build up enormous expertise in exploration and production. Some of the most advanced technology has been brought to the fore in Aberdeen, such as downhole technology, subsea location and tracking systems, hydrographic survey and the design and manufacture of oilfield instruments. These technologies have been refined to a point where fields which are more remote, more marginal and located in harsher environments can be considered commercially viable.

Though there are always problems to contend with - like the soft oil price, over-production world-wide and a mild winter in the northern hemisphere - the industry continues to show its adaptability. There are at present more than 90 fields in production, with 20 under development and an expectation that a further 80 will come on-stream by 2111.

Direct oil-related employment in north-east Scotland is now of the order of 45,000 and expected to remain at that level for many years. More than 60 young companies, many of which started life in the oil industry, have now diversified into other business areas, such as forming the nucleus of an information and communication technology industry.

According to Rita Stephen, assistant director of economic development with Aberdeen City Council, there is ''still room for niche companies which would work alongside the innovative technology-based firms. I can see a place for companies operating in IT and biotechnology''.

The picture is of a thriving and prosperous city, with its own airport and harbour offering access to international markets, which enjoys high levels of economic activity and the lowest unemployment rate in Scotland.

Naturally enough, Aberdeen has seen advantage in building up a range of strategic alliances with partners abroad. In fact, its trading links with Canada stretch back for centuries, with many families from the North-east settling around Toronto in particular.

Today there are strong cultural bonds and a regular exchange of information on IT and oil and gas, with many business partnerships being formed in the process.

''We are co-hosting a Softworld 98 business show in St John's, Newfoundland, later this month,'' said Aberdeen City marketing officer Ivor Smith. ''This is Canada's foremost software event and it is the first time a British city has been involved to this extent in an event across the Atlantic.

''The background is a Memorandum of Understanding on business co-operation we signed with Newfoundland and Labrador - we have another one with Nova Scotia - and Softworld will be very much a working event, with every company given the chance to make a presentation. We are taking 30 local companies over with us and it will open up a raft of opportunities, both for exporting and inward investment.''

Aberdeen's strategic alliances are customer-led, said Stephen. ''Our priority is to create them in areas which are compatible with our economy and which local companies are targeting.

''One of those we attach great importance to is Baku, the capital of Azerbaijan, which has staggering oil reserves. Because it is a difficult market to access, we have worked hard to develop civic links right to the mayor's office.

''We have conducted two trade missions to Baku and we shall be signing a Memorandum of Understanding. We have companies out there doing business and we hope to develop the export potential.''

Aberdeen and Baku are both members of the World Energy Cities Partnership, along with Houston, Stavanger, Perth (Western Australia), Calgary and Vung Tau in Vietnam. The partners explore world markets and seek to develop world-wide networking opportunities to mutual benefit.

Before the heady days of North Sea exploration, Aberdeen's strength was based on fishing, food processing, textiles, granite and paper making. It remains the principal fish processing centre in Scotland, as well as the commercial, retail and administrative hub of the North-east.

Tourism continues to occupy a central role in the city's economy. ''We help different sectors to come together and market themselves as a group,'' said Smith. ''A good example of this is the Aberdeen Beach Consortium, where a lot of hard work was involved but proved very effective.

''Now we have a unique collection of attractions, from dodgems to Scotland's biggest roller coaster to family restaurants, plus the Beach Leisure Centre which offers a gym, family leisure pool and a high class ice skating arena.''

Aberdeen City Council has also been the catalyst for the Tartan Collection, a grouping of hotels, restaurants and sports marketing companies intent on attracting more tourism. ''We funded the promotional literature,'' said Stephen. ''The response has been tremendous.''

Despite the presence of so many multinational companies, she sees the health of small and medium-sized businesses as central to the Aberdeen economy. ''The council has set up the Aberdeen Business Enterprise Scheme,'' she said, ''which offers advice and financial assistance to new and existing businesses. We also work with Aberdeen Enterprise Trust to encourage business start-ups.''

The council has conducted a skills analysis with The Robert Gordon University. Based on this, it can offer tailor-made training packages. ''We can provide SVQ courses in areas like marketing,'' said Stephen, ''and can also offer qualifications in innovative subjects where there is a genuine demand, such as bed and breakfasting. We are even moving into the business of selling training packages to our alliance partners in Canada.''

The unemployed and those seeking a change of job are not overlooked. ''We have made technology available to the unemployed at our new Skills Bank,'' said Stephen. ''Under one roof we offer them access to photocopiers and fax machines. We help them with their CVs and provide them with telephones for job inquiries.

''This applies to those already employed as well - right up to the level of bank managers, we have clients who would like a new job start. We have people referred to us by the Employment Centre.

''Going further, we shall be able to extend a service to companies. We are setting up a ''virtual trade centre'' where firms can find out about partners elsewhere.''

As for the future, the area is open to big ideas. ''This would be an ideal location for the department of agriculture and fisheries under the new Scottish Parliament,'' said Smith.

Stephen goes further. ''It would make sense for the new UK food agency proposed by the Government to have its headquarters here.'' Aberdeen is certainly not slow at coming forward.

n