Economic Report 2017

T h e p ur p ose of t h e v ision is not t o for e cast p e r for m ance of t h e indust r y out t o 2035 b ut t o se t asp ir at ions t h at the industry should seeŬ to Ɖursue iĨ it is to madžimise its economic ǀalue͘ As such, the ďaseline scenarios should not ďe interƉreted as ͚no Ĩurther inǀestment͛ scenarios, ďut more as challenging ͚status Ƌuo͛ scenarios ǁhereďy the industry continues to inǀest ďut does not maŬe any Ĩundamental changes in the ǁay it oƉerates͘ LiŬeǁise, the ǀision scenarios illustrated in &igure 1ϴ are not simƉly a deƉiction oĨ a high inǀestment case ʹ they ǁill reƋuire fundam e nt al t r ansfor m at ion in de liv e r y m ode ls if t h e y ar e t o b e ach ie v e d. T h e succe ssful de liv e r y of t h e se sce nar ios r e q uir e s p r ogr e ssiv e and cont inuous im p r ov e m e nt in t h e comƉetitiǀeness oĨ the UK ^ ǁhich must ďe sustained oǀer time ;see section ϲͿ͘ There are tǁo areas in ǁhich t h e UK is com p e t ing. T h e UKC S and it s sup p ly ch ain ar e com p e t ing against ot h e r oil and gas p r oducing r e gions ǁhere the diĨĨerentiating Ĩactors include Ɖroductiǀity, cost, gross and net margin, and materiality oĨ Ĩields under de v e lop m e nt . Oil and gas m ust also r e m ain com p e t it iv e against com p e t ing fue l sour ce s w h e r e ke y diffe r e nt iat ing Ĩactors include aĨĨordaďility, security oĨ suƉƉly, enǀironmental sustainaďility, and storage and transƉortaďility to glob al e ne r gy m ar ke t s. 5 .2 D e liv e r ing t h e V ision As ǁell as imƉroǀing gloďal comƉetitiǀeness, a clear energy Ɖolicy͖ technological adǀancement͖ the deǀeloƉment of ne w skills acr oss t h e e ne r gy se ct or ; and m or e act iv e p r om ot ion of t r ade and e x p or t s h av e b e e n ide nt ifie d as catalysts that can driǀe industry toǁards the ǀision ;see &igure 1ϵ oǀerleaĨͿ͘

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The ǀision serǀes to͗

• Raise awareness ʹ communicate a consistent story that ďrings the oƉƉortunity to liĨe • Generate interest ʹ create ďroad interest in sision 20ϯϱ ďy maŬing it releǀant to all audiences • Align on outcome ʹ ďuild strong ǁillingness Ĩrom all staŬeholders to get ďehind sision 20ϯϱ ǁith aligne d le ade r sh ip • Facilitate action ʹ secure commitment to action ďy demonstrating Ɖositiǀe edžamƉles

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