WIRELINE ISSUE 31 SPRING 2015

COST EFFICIENCY

OPERATIONS

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Oil & Gas UK’s Cost Efficiency Task Force aims to tackle the fundamental behaviours driving cost escalation on the UK Continental Shelf

The case for change Improving the industry’s cost efficiency is essential to secure the long-term future of the UK Continental Shelf. Wireline provides an insight into the sector’s proposals to achieve this step change through collaboration across the board. O il & Gas UK’s recent Activity Survey report revealed 2014 as yet another challenging year now facing a very different combination of factors that mean the UK Continental Shelf (UKCS) is costing more money than it generates. As a maturing

Achieving cost efficiency is not about halting expenditure, it’s about changing organisational behaviours to improve the efficiency of business models and working collaboratively. “

for the UK offshore oil and gas industry. Rising operating costs, high taxes and inadequate regulation have taken their toll on the industry’s international competitiveness, a situation that was exacerbated by the collapse in oil price. While the industry has weathered the oil price peaks and lows of the past, it is

province, the basin was already high cost, characterised by a large number of complex, technically challenging fields, as well as ageing platform and pipeline infrastructure. But this has been compounded by significant inflation in the cost of goods and services required to produce oil and gas.

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