ECONOMIC REPORT 2013
33
•
Exports
– there have been more exports by
the industry than anticipated and the UK’s
subsea sector is renowned for its excellence
around the world
•
Investment
– investment has exceeded
expectations in recent years, because of
higher oil prices and the remaining potential
of the UKCS.
The matters addressed by PILOT are aimed at
the overall objective of recovering the maximum
amount of the UK’s oil and gas resources that can
be economically achieved. However, the specific
matters being addressed do change as the years
go by. Currently these are:
•
Decline in exploration
In response to the sharp decline in
exploration drilling in 2011 (see page 28),
PILOT’s Exploration Task Force was created
to identify the main obstacles to exploration
drilling and to determine what government
and industry could do to increase activity.
•
Improved/enhanced oil recovery (IOR/EOR)
As oil and gas become more difficult and
costly to extract, the industry is investing in
improvedmethods of extraction. As a result,
IOR and EOR work groups were created to
undertake a formal analysis of the benefits of
using new technologies to increase recovery
from the UKCS.
•
Infrastructure access
PILOT’s Infrastructure Access Group
was formed in 2012 and has three areas
of work: the Infrastructure Code of
Practice
5
(ICoP), criticality of infrastructure
and transformational
options for
critical infrastructure.
One of the recommendations of this
group was to establish areas of ‘special
economic interest’ on the UKCS to
encourage greater co-operation between
parties, targeting critical infrastructure
hubs to promote maximum economic
recovery. Work groups have been
established that are looking at specific
infrastructure issues in the northern and
central North Sea.
•
Production efficiency
As a result of the rapid decline in production
efficiency (see page 21), PILOT has launched
a Production Efficiency Task Force that
is challenging the industry to increase
efficiency from 60 per cent to nearer
80 per cent.
•
Technology
Technical innovation and application can
and will play a major part in enhancing
the future of the UKCS by improving
exploration success, increasing recovery
and safely extending the lives of fields. The
range of technologies required is broad
with the required funding, policy and
supply mechanisms complex. Therefore,
PILOT has commissioned the creation of a
Technology Strategy to help establish the
UK as a leader in selected areas of oil and
gas technology, thereby strengthening the
supply chain.
The success of past PILOT initiatives
has demonstrated the willingness of
government and the industry to find solutions
to difficulties in a co-operative manner.
There will be a continuing need to
work together to ensure that the productive
life of the UKCS stretches to at least 2050.
5
To ensure that new and smaller companies can develop and bring on-stream discoveries which require use of others’ infrastructure, the industry
developed a Code of Practice for third party access to infrastructure, known as ICoP. Adopted in 2004 and updated since, the ICoP outlines the
best practice and expected behaviour of those who conduct negotiations for access to infrastructure. More information about ICoP may be
found at
