UK energy industry’s resilience to headwinds is unmatched
The energy industry in the United Kingdom has emerged as one of the most resilient to challenges, according to observations from the Chief Executive Officer of Oil and Gas UK (OGUK).
In the past 18 months the industry has encountered challenges that could have easily crashed it, but it has emerged stronger with signs of vibrancy reverberating from within. OGUK CEO Derdre Michie observed that few other industries could have remained on their knees had they been subjected to the same headwinds.
Revealing the secret behind the resilience, Michie said that it was achieved through increased production and cost reduction. Increasing production comes after a 15 year hiatus.
The industry also withstood the tempestuous times due to the willingness and cooperation of companies on projects such as the standardization of subsea projects and inventory management, according to Michie.
She acknowledged that tough times have had their toll on workers’ morale, though, and noted that unless the supply chain receives immediate support it will eventually vanish.
“Knowing that we can’t control the oil price, we have shown leadership and focused our energies on areas we can influence,” Michie said. “Improving our efficiency and reducing our cost base has seen us increase production and reduce our unit operating cost by a remarkable 40%.” She added.
Acknowledging the progress made by the Efficiency Task Force, the CEO observed that the observable levels of delivery would have been unimaginable a year and a half ago.
Stimulating activity did more than provide immediate relief, she noted. It also supported the supply chain. She added that unless something is done urgently the prevailing hiatus in exploration and appraisal won’t abate, and the basin’s focus on production and decommissioning will be the norm. As a result, energy supply chains in the UK would relocate, with businesses turning elsewhere.
According to Michie, industry stakeholders have been in talks with the treasury and the Oil and Gas Authority in search of an urgent solution to the hiatus.
Published by Green Jobs Online - 17th June, 2016