Oil & Gas UK Economic Report 2015

Meanwhile, the Efficiency Task Force intends to consider the savings to be achieved from a shared and common approach to routines and the supply of equipment. A key focus will be to review specifications of valves and piping classes, processes for routine well P&A and subsea technology.

with the rest of the industry is great and will require a very different approach from all players. To succeed, the approach needs to involve everyone in the workforce. The Efficiency Task Force will consider the merits of an Efficiency Charter and efficiency sharing events to achieve this. The automotive industry demonstrates what can be achieved through concerted action to tackle costs and improve efficiency within a high technology sector. Vehicle manufacturers recognised that standalone cost improvement programmes would not deliver the necessary cost reduction to sustain their market growth, while outsourcing and operational improvement programmes such as ‘Lean’ could help but were insufficient. In response, collaboration across the sector, both regionally and globally, was pursued to good effect. Strategic alliances emerged between leading manufacturers and with key equipment suppliers; support and logistic processes were shared across the industry. Shared manufacturing facilities, standard components, sub-frames and model architecture are increasingly the norm while retaining strong and separate brand identities.

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CO-OPERATION, CULTURE AND BEHAVIOURS

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Behaviour Change – Co-operation, Culture and Behaviours

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The longer-term transformational change (referred to in Figure 13 previously) can only come about with true co-operation and cultural change in the shape of collaborative working between operators, major contractors and SMEs, harnessing the energy, insight and innovation that each participant can bring to embed new ways of working and create new business models. Such an approach will continue to be a fundamental requirement to secure the industry’s future. There are already bright spots emerging where companies are taking the initiative and working with natural competitors for better outcomes. One specialist in developing marginal fields is leading a consortium of companies so that those with additional technology and expertise in this discipline can come together to offer more cost-effective ways for clients to overcome technical challenges. A major operator has joined forces with the operator of neighbouring acreage to use seismic data enhancement techniques and drill a well on a prospect thought to stretch across both blocks. As a result, a commercial discovery has been made. Furthermore, logistics companies are offering shared services of supply vessels, all in the name of using available resources more efficiently and at lower cost. The challenge of seeing beyond traditional methods and finding ways to share innovative working practices

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ECONOMIC REPORT 2015