Oil & Gas UK Economic Report 2015

Figure 13: Transforming the UKCS’ Cost Structure

1

Efficiency Improvement

Transformational Change

Cost Reduction

2

25-40% • Asset/service/

10-15% • Spend reduction • Tactical process

15-25% • Activity reduction

3

12 – 36 months geographic restructure • M&A + network integration • Operating model

5 – 18 months • Consolidation • Organisation design • Technology

4

3 – 9 months improvements • Cost avoidance

5

Source: Deloitte LLP

6

Figure 14: Oil & Gas UK’s Efficiency Task Force – Objective and Workstreams

7

Efficiency Task Force

The objective of the Efficiency Task Force is to drive a pan-industry improvement in efficiency over the next two years and beyond, creating a sustainable industry

8

9

Efficiency Task Force

10

Co-operation, Culture and Behaviours

Business Process

Standardisation

27

ECONOMIC REPORT 2015