Oil & Gas UK Economic Report 2014

Infrastructure Rejuvenation

Technology

In 2012 PILOT’s Infrastructure Access Group commissioned a study by consultants to consider the remaining oil and gas potential of the UKCS and identify infrastructure critical for its development. This work verified that issues related to infrastructure threaten that future potential and highlighted the need for the industry to move to a “new level of collaboration” to secure maximum economic recovery of the remaining oil and gas. This analysis outlined the need to identify ‘areas of special economic interest’ aroundcritical hubs. Over the past 18 months, three infrastructure rejuvenation work groups have been established to focus on certain areas of special economic interest within the NNS, CNS and SNS.

Industry and government both accept that technology will have a major influence on the future of the UKCS and will be necessary for MER UK. The Wood Review recommended that the new, independent oil and gas regulator should focus on technology as one of its priorities. Over the past 18 months, the industry has identified a need to transform its use of technology. One of the main actions in the joint government-industry industrial strategy, published in March 2013, was to develop and deliver a coherent strategy for technology that centres on specific geographic areas and technical aspects, as defined by PILOT.

Figure 31: Oil and Gas Infrastructure Hubs, 2014 and 2025

Today

2025+

Current Trajectory

Oil Hub Gas Hub

Source: Hannon Westwood Analysis

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ECONOMIC REPORT 2014