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W I R E L I N E
- I S S U E 3 1 S P R I N G 2 0 1 5
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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
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
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
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.
COST EFFICIENCY
OPERATIONS
Oil & Gas UK’s Cost Efficiency Task Force aims to tackle
the fundamental behaviours driving cost escalation on
the UK Continental Shelf
Achieving cost
efficiency is not about
halting expenditure,
it’s about changing
organisational behaviours
to improve the efficiency of
business models and working
collaboratively.
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