Oil and Gas UK seeks MER information on level of oil industry collaboration in cutting costs

collaboration2A new research project could help the oil and gas industry understand and implement greater collaboration in the North Sea, has been launched as the sector continues to manage lower oil prices.

Business advisory firm Deloitte has launched its inaugural oil and gas collaboration survey, with support from Oil & Gas UK.  

The research will assess the level and quality of collaboration currently taking place across the N. Sea basin, as well as how companies across the supply chain could work together in new ways.  

The research, which has comparisons with a Deloitte study carried out in the US looking at the automotive industry, will survey participants on: 

  • What collaboration means;
  • What constitutes effective collaboration;
  • How companies view themselves and each other as collaborators.

 Collaboration has been a consistent industry theme since the publication of Sir Ian Wood’s eponymous review – ‘UKCS Maximising Economic Recovery’.  

Collaboration is a central recommendation in the Wood Report, but there is currently little data available on what it means and how it might benefit the upstream oil and gas industry on the UKCS. Justin Watson, a partner in Deloitte’s consulting practice, said:

“With subdued oil prices set to continue, it’s more important than ever that operators look at what could be gained by working more closely together to bring down costs, reduce complexity and boost efficiency.

“However, what collaboration means for the oil and gas industry is not well understood. Our research aims to help define what collaboration is, how it looks in practice and how companies can better collaborate with one another.

 “We would encourage anyone operating in or providing services to the UKCS to take part in this research.  We hope a better understanding of collaboration could help companies in the North Sea improve productivity and efficiency, cut costs, adopt new ways of working and make the most of what remains in the basin.”

Stephen Marcos Jones, Oil & Gas UK business development director, said: “Whilst tough decisions on people and projects are being taken by individual companies, there is a growing effort to work together to make the industry more efficient and attractive for investors in a $60-barrel world.

“Any work looking at collaboration in our sector, and specifically how companies can work together in new ways, is therefore of real benefit and will be warmly welcomed by the UK’s offshore oil and gas industry.”

Meanwhile, N. Sea offshore safety and oil leak rates continues to improve according to the latest annual figures.

Based on incidents reported to the Health and Safety Executive for April 2014 to March 2015 and shared with UKOG, the total number of hydrocarbon releases – oil and gas leaks – has gone down and is at its lowest level ever.

Offshore oil and gas has a lower personal injury rate than many other sectors including construction, transport, manufacturing, health, retail and education, the report reveals. The non-fatal injury rate for offshore workers also continues to show a declining trend.

Securing continued effective search and rescue helicopter cover for offshore workers in the Central North Sea was a major milestone for the sector. The industry remains focused on aviation safety, with the launch of measures such as a new emergency breathing system for offshore flying and changes to helicopter seating allocation based on passenger size.

Preparing for the introduction into UK law of the EU Offshore Safety Directive – the single biggest shake-up of offshore health, safety and environment management for a decade – has also been a key focus for the industry.


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