A comprehensive report into the changing energy landscape has called for urgent action to progress low carbon technologies critical to the UK and Scottish Government’s net zero ambitions.

It says government and industry must work together to progress to the next stage five key projects across the UK which look to capture, transport and store carbon dioxide from heavy emitting industrial processes including power plants. It also calls for joint action to increase the potential for low carbon hydrogen to be used as a fuel to heat homes and power cars.

The policy recommendations are published today by the leading representative body for the oil and gas sector, OGUK, in its second Energy Transition Outlook Report. The document considers the changing energy landscape in the UK and outlines progress achieved by the UK’s oil and gas sector over the past year to provide industry and economy-wide solutions towards reducing emissions.

However, the report authors warn that the sector will need to earn its position in the changing energy world, with rapid action required to ensure the sector transforms over the next 30 years while continuing to meet as much of the UK’s oil and gas needs from domestic resources.

The report findings show:

  • The UK’s oil and gas industry is in a unique position to lead in the development of Carbon Capture Usage and Storage, with 5 projects situated across the country currently being explored
  • UK energy sector investment will need to double in order to achieve a decarbonised economy

Commenting on the report, OGUK Chief Executive Deirdre Michie said:

“Our Energy Transition Outlook report shows the changing energy landscape in the UK and the opportunities and challenges it presents all industries, businesses and people, our own included.

“With the launch of Roadmap 2035: a blueprint for net zero, we were one of the first industrial sectors to set out credible plans to support the UK and Scottish Government net zero emissions. Yet the oil and gas sector will have to earn its position in this new energy world, cutting its own emissions and working with governments and regulators to progress the five CCUS projects which now need to move forward into the next phase and developing hydrogen.

“As our report shows, there is lots of work to be done in a huge market which is only getting bigger as global demand for energy continues to grow. The Climate Change Committee report published at the beginning of this year noted CCUS was critical to our net zero ambitions. Our challenge, working with others including the OGTC’s Net Zero Solutions Centre, is to realise CCUS and other low carbon technologies as an opportunity for British businesses.”

 

 

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The UK’s decommissioning sector’s growing competitiveness is revealed in the 2019 Decommissioning Insight report launched by OGUK today at the Offshore Decommissioning Conference held jointly with Decom North Sea. Now in its tenth year of publication, the report forecasts the UK’s decommissioning activity and expenditure over the next decade,  revealing that while activity on the UK Continental Shelf (UKCS) is expected to increase, expenditure will remain consistent at around £1.5 billion per annum, demonstrating the sector’s improving efficiency performance.

The report findings show:

  • Decommissioning now represents just under 10 per cent of the oil and gas industry’s overall expenditure
  • Pace of decommissioning expenditure remains steady at around £1.5 billion per year
  • Over the next decade, forecast expenditure for UKCS decommissioning remains constant at £15.2 billion
  • M&A activity in some areas of the North Sea is extending the life of offshore assets and moving decommissioning activity to the future
  • Within the next ten years $85 (£67) billion will be spent decommissioning oil and gas assets in the global market
  • To date, nine per cent of all the platforms installed on the UKCS have been decommissioned

Operators across the sector contribute data for OGUK’s Decommissioning Insight, which plays a fundamental role in providing market intelligence that highlights predicted activity and cost trends.

Commenting on the report, OGUK’s decommissioning manager Joe Leask said:

“With a firm grip on cost management, environmental and safety standards, our tenth annual Decommissioning Insight shows a healthy sector well-positioned to realise some £15bn of opportunities over the next decade.

“Our report underlines the significant intellectual capital anchored here in the UK. Ensuring this is shared is key to maintaining the competitiveness of the sector, enabling this homegrown industry to capture the lion’s share of an emerging global market some four times greater.

“We’re already seeing exciting new companies emerging as specialists in decommissioning, either offering full-scope solutions or focusing on specialising in areas including offshore well decommissioning and onshore dismantling and disposal. These innovative business models offer industry real choices whether operators carry out decommissioning themselves or pass the scope to those companies offering increasingly competitive solutions,

“Decommissioning is not the end of our industry; it offers a new beginning. Four years ago, industry stepped up to the challenge to cut decommissioning costs by 35 percent and we are well on the way to achieving that. We must apply the same collective determination and pioneering capabilities to deliver the net zero carbon challenge. This includes the re-use of old facilities for carbon capture and storage, presenting new opportunities to generate new value from old assets and help deliver the net zero future that industry has made to commitment to deliver.”

Download your copy of the Decommissioning Insight Report:

A fledgling industry star who unlocked £20 million of additional value for her company and a business that is using pioneering 3D printing to champion improved safety and environmental performance were among those to be crowned winners last night at the OGUK Awards 2019, sponsored by Shell U.K. Limited.

Over 550 guests gathered at the P&J Live to recognise the standout out achievements of businesses and high-performing individuals from across the industry. 30 finalists were in contention for ten awards, including excellence in decommissioning, business innovation and energy transition, a new award for 2019.

OGUK Graduate of the Year Erin Ingram, Apprentice of the Year Ashley Thomas and Mentor of the Year Teresa Waddington 

Praising the winners, Deirdre Michie, Chief Executive of OGUK, said:

“OGUK’s annual awards ceremony is a highly regarded event within the UK oil and gas industry calendar and this was one of the most competitive years yet.

“The success of our industry is down to the talent, ingenuity and skill of our people and that’s what these awards celebrate. A huge congratulations to our winners and a sincere thank you to all our finalists, whose dedication and expertise help us continually raise the bar on industry excellence.”

Steve Phimister vice president of event sponsor Shell’s UK upstream business said:

“It has been hugely rewarding to celebrate the talents and achievements of all the people who help the UK oil and gas industry make such a vital contribution to today’s energy sector. These are also the people who will play a key role in shaping the future success of the industry, as the UK navigates the energy transition.”

The winners across the ten categories are as follows:

OGUK Apprentice of the Year (sponsored by OPITO)

Ashley Thomas, BP

OGUK Graduate of the Year (sponsored by ECITB)

Erin Ingram, TAQA

OGUK Mentor of the Year Award 2018

Teresa Waddington, Shell U.K. Limited

Workforce Engagement

PD&MS GROUP

OGUK Business Innovation Award (SME)

WFS Technologies Limited

Business Innovation – Large Enterprise

TOTAL E&P UK

Diversity and Inclusion (sponsored by Spirit Energy)

CNR International (UK) Ltd

MER UK (sponsored by the Oil & Gas Authority)

Neptune Energy – BP – Japex UK E&P Ltd

Excellence in Decommissioning

Repsol Sinopec Resources UK

Energy Transition (sponsored by Fairfield Decom Limited)

BP

The chief executive of the leading representative body for the UK’s offshore oil and gas industry has today urged Aberdeen to grab the £1trillion of business opportunities presented by moves to net zero.

Speaking at the State of the Cities Conference today in Aberdeen, OGUK Chief Executive Deirdre Michie said

“Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

“And meeting as much of this from domestic resources is therefore crucial.

“At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

“To put the size of that prize in context, oil and gas companies currently support CCUS schemes at only 18 sites across the world,

“But we know that 10,000 will be required globally by 2070.

“It’s an exciting proposition because as we look to become a smart net zero energy industry we will need a smart net zero energy Aberdeen and shire to help us do this.

“Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

“The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital.”

Ends

 The full speech is below:

Good afternoon ladies and gentlemen and thank you to you DJ for your kind introduction and Aberdeen City Council for inviting me to speak today,

Can I add my congratulations to Hanan, Dougie and Graeme on their insightful and thoughtful and helpful report,

And to the city council for the progress made – the overview that Councillor Laing gave this morning is very impressive and as I said to Angela Scott – examples like the TECA are real triumphs for the city and her team.

I’ve really enjoyed the insightful sessions so far and it’s an honour to follow you Sir Howard,

I absolutely support that a joined up – collaborative public private approach is key and so today I’d like to talk about areas where, working together, we can realise a successful future for this region and for our industry.

These are:

1 – Attracting and retaining talented people here,

2 – Improving our international competitiveness,

And 3- enhancing our global reputation,

Aberdeen city and shire are considered by many to be the engine room of the UK’s offshore oil and gas industry,

We have a truly special relationship that has been built up over the last 50 years or so,

Our histories are intertwined as will be our futures and so

Looking ahead to the energy transition and delivery of the net zero ambitions, I believe there is a huge opportunity for us to go after together.  

We are an international industry and an international city and so staying competitive and attracting investment is key,

And it’s great that our 2019 Economic Report, shows, that as a sector, we’ve significantly improved efficiency and are fitter and more competitive than we have been for years.

As a result, investment is returning, and activity is picking up.

We have increased production by 20 percent over the last 4 years –as Hanan said an extraordinary achievement for a mature industry like ours and a reinforcement of our resilience and ability to keep on reinventing ourselves.

Utilising technology, introducing smarter and more efficient ways of working have helped to improve our competitiveness as we continue to emerge from one of the most challenging downturns in our history,

And while significant pressures remain on the supply chain here in the north east, staying competitive, working co-operatively with a fair sharing of risks and reward, need to be the cornerstones to unlocking more activity across the whole sector

The economic impact of getting this right for the local and UK economy is considerable –

Production of oil and gas accounted for 1.2 percent of UK GDP – equal to around £24bn

The industry continues to invest around £15bn per annum across the oil and gas lifecycle and has over the years contributed more than £350bn in production taxes alone.

And looking ahead, the OBR forecasts that production tax payments by this industry will amount to more than £8.5bn over the next five years,

When it comes to employment – so important for the north east – this sector supports 270,000 jobs across the UK,

The economic impact is clearly a positive one – but we recognise that with the challenges of climate change – we have to be better at communicating the positive contribution that this industry makes – and needs to continue to make if we are to ensure a fair and managed transition to a net zero future.

And just as we’ve heard today how Aberdeen is a city with a firm eye on the future,

You should be in no doubt that we are also an industry in action,

Because we too are part of a society which wants change, and we are confident that as the UK’s offshore oil and gas industry  – we can play a key role in being part of the solution – helping to drive change that can contribute to a net zero economy  which can then be exported to the rest of  the world.

We are moving forward positively and constructively, and we must continue to do so and at pace.

And so, what are we doing as an industry to be part of what will be a challenging but exciting, refocused energy future?

Well this year we published Roadmap 2035: A Blueprint to Net Zero,

It is one of the first major industrial responses to government commitments to deliver net zero carbon emissions by 2045 in Scotland and 2050 in the UK.

It sets out five key themes requiring tripartite action of industry, BOTH governments and regulators to ensure delivery. Support from them is crucial to our industry and to this city.

One – Helping meet the UK’s needs for energy and industrial products

Two – Driving technology and innovation and the launch of OGTC’s – that came out of the city deal and its Net Zero Solutions Centre is a great example of the kind of action that is needed and is happening

Three -Growing the economy and exports,

Four – developing our people, our skills and a collaborative culture

 And Five – Supporting net zero, because the UK needs our oil and gas products as part of an increasingly diversified energy system if it is going to deliver its net zero ambitions,

 The roadmap was developed out of over 2,500 conversations that continue today with people from across the sector and our stakeholders – many of whom are in this room today,

Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

And meeting as much of this from domestic resources is therefore crucial.

At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

To put the size of that prize in context – oil and gas companies currently support CCUS schemes at only 18 sites across the world,

But we know that 10,000 will be required globally by 2070

It’s an exciting proposition because as we look to become a smart net zero energy industry – we will need a smart net zero energy Aberdeen and shire to help us do this.

Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital,

So why is place important to the energy transition?

Surely every city could be and indeed should be a net zero energy city?

But the granite city like our industry has the skills, the experience and the ability to reinvent itself, as it has in the past, from ship building to fishing to the early oil industry founded on whale oil!

Building on our expertise as a global oil and gas hub, and with the right support,

Aberdeen’s future potential as an energy city is limitless,

We’re already seeing the real benefits that this expertise can bring,

We have the European Offshore Wind Deployment Centre directly visible from the coast (when there’s no har..!) and we have , Hywind – the world’s first floating offshore wind development, as well as RGU’s Energy Transition Institute – taking insights and learnings to countries like Mexico, and Columbia to name but a few.

Many of our companies operating in Aberdeen are already leading the way –and we should be especially proud of our supply chain companies like Wood and Global Energy Group which have expanded their footprint over the years into other parts of the energy sector,

And while yes, every economy should have a diverse ecosystem of businesses and industries to ensure it is sustainable,

We should also embrace the enormous value this industry has added and can continue to add as we look to the future. It’s a USP to be treasured.

Place is important and it’s why we are so pleased to see the progress being made here in recent  years in relation to  infrastructure -like, the Harbour –  AWPR  and the fibre network as well as  amenities like TECA, the art gallery and Music hall that are so key  to  establishing  this city as a great place to work and live and so helping us to secure the talent we need.

But more than this, projects like the hydrogen bus project and Hydrogen Aberdeen – reinforce the ambition and drive which will ensure Aberdeen can enjoy more success.

Aberdeen has, as we are all saying – a golden opportunity to claim the mantle of being a global net zero energy capital,

Grasping a healthy portion of the £1 trillion spend the UK Government estimates will be required to meet the challenging targets.

So, my ask of you today is to help champion Roadmap 2035,

In Developing a diverse energy workforce with transferable skills, that’s renowned globally for finding solutions to some of the world’s most challenging problems,

Helping to bring to life CCUS, hydrogen and low carbon technologies by encouraging innovation and establishing Aberdeen as a global hub for low carbon technologies.

And in so doing, realising Aberdeen’s full potential in the transition,

So, looking to the future, I’m confident we have the ingredients for success and that there should be no limits to our ambitions.

It’s an exciting time for this industry and I know you will agree, an exciting time for Aberdeen and the shire.

Thank you. I’d now like to hand over to Chris Murray, director of core cities UK.

The increasing importance of digitalisation was put under the spotlight today at a breakfast briefing event, sponsored by Deloitte, held by the leading representative body for the UK’s offshore oil and gas industry, OGUK.

An audience of over 150 industry professionals heard about the benefits that could be realised in safety, efficiency and financial through the digital transformation of the North Sea sector.

Keynote speaker Marc O’Connor, Consulting Leader – Energy, Resources & Industrials, Deloitte, who said that digitalisation provided real opportunities for people to be released from routine type jobs, freeing them up to focus on value-added tasks that will provide the innovation solutions of the future.

Reflecting on the speech, expert panellists Alan Muirhead, Director of Projects & Engineering, Neptune Energy UK, Stephen Sheal, External Relationship Director, Oil & Gas Technology Centre and  Jared Owen, Director – Digital & Entrepreneurship, Opportunity North East, discussed how industry can ensure it has the skills and expertise needed to help deliver Roadmap 2035.

Speaking after the event, panel chair OGUK Stakeholder and Communications Director Gareth Wynn said:

“Digitalisation isn’t just the future, it’s the here and now. Today’s event showed that while this industry has a firm grasp on the opportunities digital transformation could bring, we must continue to collaborate and share good practice.

“From setting up an agile culture which removes barriers to decision making, to ensuring colleagues have fit-for-purpose skills and technologies, there are changes both big and small that this industry could make which could have a real impact on the safety, efficiency and competitiveness of our sector.

“This is an industry shaping up for the future and the delivery of Roadmap 2035 – our blueprint to a net zero future. It’s clear from today’s event that how we choose to embrace digitalisation could make or break our ability to be part of the low carbon economy we all want to see.”

Marc O’Connor, Consulting Leader – Energy, Resources & Industrials at Deloitte said: “Deloitte has extensive experience of digital transformation, and while the journey can be complex, we know that a successful outcome can be characterised very clearly and simply. When integrated and used effectively, digital has the potential to add value throughout a project’s lifecycle and those who invest with a data from day one approach can realise significant benefits.

“It was great to share our perspective on digital capital projects at this morning’s OGUK breakfast meeting. As well as covering real-world examples of how digital initiatives are being used on capital projects, I discussed a way forward for how businesses can navigate their own digital transformation journey and outlined the various opportunities that exist for operators and suppliers working in the UK’s oil and gas sector.”

The next generation of the UK’s oil and gas industry are being called upon to make their voices heard on key issues including the energy transition and climate change at a new event being held in Aberdeen on Thursday 24 October.  

Leading representative body for the sector OGUK today announced a second industry insight event aimed at graduates, young professionals and those starting out their career. It follows the success of an intern event in July attended by over 100 young people with placements in operator, service and supply chain companies.

The event sponsored by Spirit Energy will provide attendees with the opportunity to shape the future of their industry through direct involvement in Roadmap 2035: industry’s blueprint for a net zero future.

The audience will take part in an interactive workshop looking at the five key themes from Roadmap 2035 before hearing from a diverse panel chaired by OGUK Supply Chain Director Matt Abraham.

  • Sophie Guy-Pearson, Lead Business Advisor, OGUK
  • Guiseppe Tizzano, OGUK Mentor of the Year 2018, BP
  • Trevor Thomson, Director, Technical Function, Spirit Energy
  • Ryan Fernando, OGUK Apprentice of the Year 2018, Aker Solutions

Commenting on the event, OGUK Supply Chain Director Matt Abraham said:

“The people joining our industry today are among the most important voices in shaping the industry of tomorrow. The world of work is changing at a time when our industry is also looking to the future through the energy transition.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate about ensuring the voice of the next generation is not only heard but acted upon. This event is a great opportunity for people starting out their careers to drive the future of the sector and make a valuable contribution on our journey to becoming a net zero basin.”

Get your tickets for OGUK Insights for Young Professionals 

 

Commenting on reports that Greenpeace has ended its protest in the North Sea, OGUK Stakeholder and Communications Director Gareth Wynn said:

Gareth Wynn – Stakeholder and Communications Director

“There are no winners as a result of this stunt, which both put safety at risk and failed to produce any solutions to how we can achieve the net zero future we all want to see. The arguments from Greenpeace are fundamentally flawed and sadly fail to recognise the reality that prematurely shutting down the North Sea will only increase the UK’s reliance on imports from across the world.

“We live in a world with ever-growing demand for energy which at the same time needs an ever-reducing carbon footprint. Our industry is committed to help find practical solutions to one of the biggest challenges we will face. It’s time for deeds not words and we’d encourage anyone with a serious interest to work with us.”

READ NEXT: OGUK Energy Transition Outlook 2018

A key industry report detailing the cost of decommissioning on the UK Continental Shelf and the progress being made by industry, government and regulators to reduce costs by more than 30 per cent will be unveiled at OGUK’s upcoming business breakfast in London.

The annual UKCS Decommissioning Cost Estimate Report, published by industry regulator the Oil & Gas Authority (OGA), will give a deeper insight into the landscape of the sector as well as highlight the opportunities and challenges currently facing the market.

Sponsored by White & Case LLP, the event will be held on Tuesday, July 2, at 5 Old Broad Street, London.

Commenting, Joe Leask, Decommissioning Manager at OGUK, said:

“We’re delighted to host the launch of this vital piece of research from the OGA and I look forward to hearing more about the progress industry has made in achieving the 35 per cent cost reduction target.

“The UK is a first mover in the decommissioning of complex, deep-water oil and gas assets and the industry must seize future opportunities in the global decommissioning market.

“This includes the development and deployment of CCUS (carbon capture, usage and storage), building on the re-use of offshore infrastructure, industry geological expertise, and utilising the skills and knowledge of our supply chain.”

 

The leading representative body for the UK’s offshore oil and gas industry has today reinforced the role the industry can play in supporting the UK to meet its climate change ambitions.

Speaking in response to the Prime Minister’s commitment to deliver net zero emissions by 2050, OGUK Chief Executive Deirdre Michie set out the role industry can play to enable the energy systems of the future and to help the development of technology that can mitigate carbon from other heavy emitting industries.

Commenting, Deirdre Michie said:Deirdre Michie

“Achieving net zero is a huge challenge that will affect all industries, businesses and people. Our sector needs to be involved in this agenda, work to realise the opportunities it presents and be an essential partner in supporting the UK to achieve its climate change ambitions.

“We can help design the diverse energy system we need for the future, and through our knowledge and experience can be a central part of developing some of the technology needed to mitigate carbon from other heavy emitting industries through for example, Carbon Capture Usage and Storage.

“We have already welcomed the Climate Change Committee report and are engaging with our members on the practical steps we need to take to in relation to continuing to manage and reduce the emissions from our own activities, to play our part in achieving net zero.

“With world-leading engineering skills, infrastructure and energy expertise, our industry stands ready to work with sectors across the UK economy to enable the UK to achieve its climate change goals.”

Speaking to over 400 delegates at the OGUK Industry Conference in Aberdeen this morning, OGUK Chief Executive Deirdre Michie said:

Ladies & gentlemen, good morning and welcome, to OGUK’s conference and exhibition for 2019: An Industry in Transition

I’m very pleased that so many of you have joined us here for what I hope will be an interesting and insightful 36 hours, where we consider the progress industry is making as it continues to emerge from one of the most challenging downturns, while positioning itself for a sustainable future that supports a lower carbon economy.

Four years ago, when I addressed this conference for the first time, before the possibility of Brexit or Trump had registered with anyone, none of us had any idea of the challenge and change that was to test us all at every level,

And that would take this industry to the point from which many thought it couldn’t return.

But the sector’s “come back” is very much in progress,

Thanks to the resilience, courage and can-do attitude that has typified its success over the years and will be key to its sustainability going forward.

To help us consider all of this and more, I’m delighted to be joined in this opening session by Sam Laidlaw of Neptune Energy, Torgrim Reitan of Equinor and Jean-Luc Guiziou of Total,

Sam, Torgrim and Jean-Luc are three excellent leaders of companies epitomising this industry’s transition whether it’s because they are attracted to the competitiveness of the basin or are embracing and taking the lead in the energy transition,

Their thought-provoking views will lay the foundations for the focused and interactive programme that we have ahead of us with compelling and insightful industry leaders speaking and chairing our sessions throughout our time together.

I’d also like to thank Jean Luc and Total as our principal sponsor, for supporting us once again as well as of course all our other sponsors

Your backing for this key industry event is very much appreciated.

Ladies and gentlemen, ensuring we sustain our licence to operate while we transition to a lower carbon economy are key challenges for us.

I believe that there are three tests that we need to satisfy if we want to protect our licence to operate as well as simply do the right thing as responsible UK and global citizens.

One- Are we ensuring safe operations for our people and our organisations?

Two – Are our business models geared towards sustainability through thick and thin?

And three – do we proactively meet the expectations of the society we work in and for?

Indeed, as we look back over the last 4 years – the pace of change has been extraordinary and as we look ahead we need to stay focused on the things we can influence, deliver or change.

Because as Benjamin Disraeli said – when you are finished changing – you are finished -and this industry certainly is not.

  So, when thinking about the society we live in and its expectations, another quote comes to mind,

(“Until you start focusing on what needs to be done rather than what is politically possible, there is no hope. We can’t solve a crisis without treating it as a crisis. We need to keep the fossil fuels in the ground, and we need to focus on equity. And if solutions within the system are so impossible to find, maybe we should change the system itself.”)

These are the words of Greta Thunberg – an impressive young woman we can all take inspiration from.

A woman who wants to change the world.

I would like to reassure Greta- we are listening, because we want the world to be a better place too.

And while we believe that our industry’s global contribution has improved the lives of billions of people, we are clear that climate change is a real and present danger that we must deal with together.

When Greta says, “If solutions within the system are so impossible to find, maybe we should change the system itself.”

I would like to suggest that as the UK’s offshore oil and gas industry has so many talented people, engineers, data scientists, remote vehicle operators, technologists and more

We can find and deliver the solutions needed while at the same time positioning ourselves to be at the heart of an energy system that also needs to change.

Whether it is by the sector working to reduce its operational emissions as well as supporting the advancement of low carbon and abatement technologies.

Indeed, along with our sector delivering from exploration through to decommissioning, it’s already unlocking the energy transition with some operators extending their portfolios into other energies – Equinor –Total, Shell and BP.

And of course, the downstream and utilities sectors are doing a lot of work in this too.

This is why we welcomed the Climate Change committee report last month

Where it recommended that the UK set a net zero target for GHG by 2050 and by 2045 for Scotland.

This report provides a balanced and thoughtful blueprint towards a lower carbon future and I would commend it to those of you who haven’t read it yet.

Its recommendations are rooted in practical and societal choices that we need to embrace as an industry and as individuals if we are truly to make a leading and constructive contribution to the future of our industry, our economy and our society generally.

The climate change committee also recognised that the indigenous offshore oil and gas industry needs to be a key part of a diverse energy mix going forward and is therefore not in competition with renewables.

Official figures show that production from our offshore industry will be needed to meet two thirds of the UK’s oil and gas energy needs, while the gap between what we produce and what we need to heat our homes and fuel our cars is made up from imports, shipped from across the world often with a bigger carbon footprint,

It’s why the Climate Change Committee report talked about “energy sovereignty” and the need to make up that demand from domestic resources while we transition to a lower carbon future.

And our supply chain is already very much in action, using its transferable skills and expertise to service the needs of alternative energy companies from Global Energy to Wood to Aker Solutions.

So, while we continue to advocate with facts and evidence I appreciate that it can sound like corporate speak that doesn’t have the emotion or the urgency that society and we, as part of society, are all feeling.

This is why Vision 2035, and Our Vision, Our Future campaign is set in the context of energy transition and not in isolation

It’s about our industry supporting an accelerating energy transition through our people, expertise and infrastructure, while meeting as much of our country’s oil and gas needs from home produced resources,

Where our world-class supply chain, anchored in the UK and with its international reach, adds value across the energy sector at home and abroad, developing technologies which help to decarbonise the economy

Delivering a diverse energy mix which can help us meet the UK’s dual challenge of satisfying ongoing supply demands with a lower carbon footprint

Powering your iPhone- heating your shower – providing the screens for your computers or TVs or the glue to stick yourself to doors- unless you used a plant-based glue of course!

Indeed, anyone and everyone who wants to change the world for the better can work with us to help ensure a fair and just and managed transition and at a pace that will also be required.

And so today I can confirm that later this year we’ll publish the road map which will set out how we can successfully deliver the vision and our industry’s sustainable future, to ensure it continues to contribute to the country  in terms of hundreds of thousands of jobs, security of energy supply, billions of pounds in taxes and investment levels, for decades to come.

So, if I have one ask of you today ladies and gentlemen, it is that you get behind our campaign – Our Vision Our Future and support our industry in delivering a sustainable lower carbon future.

So, if this is where we are heading, where are we now?

Well as we continue to emerge from the downturn our businesses are adapting to the new reality where an ongoing volatile commodity price,

Back down to between $60 and $70 with an outlook that remains in the $50 to $60 range means retaining a tight focus on budgets and looking for innovative ways of working that unlock opportunities across the basin.

It means sustaining and deepening the competitiveness that this industry has achieved through its own focus and endeavours as well as working well with both governments, regulators and the OGA to ensure a cohesive and comprehensive approach that is delivering results.

Production is up 20 percent over the last 5 years – costs are being contained at an average of $15 per barrel and production efficiency is up to 75% from the low 60s.

Our fiscal regime continues to be one of the most globally competitive and capital is being attracted back into the basin,

Over £3.2bn for 13 projects in 2018 with the same anticipated this year too.

The deals that are continuing to be done, Delek and Chryasor’s being such recent examples of companies considering this to be a great place in which to do business

The momentum around exploration is building,

Although drilling continues to be at an all-time low.

Many E&P operators are cash flow positive for the first time in years – rebalancing their books and yes paying off debt and giving back to shareholders but also increasing their activity too.

Parts of the supply chain are starting to see the benefits but not all.

With margins remaining under pressure the sustainability of some areas of our supply chain is challenged and so some operators do have a choice.

And that is to ensure a better share and more balance in terms of the risk and return now or find yourselves and industry as a whole or paying for it sooner rather than later.

The supplier principles that we drew up earlier this year can be a key enabler to companies throughout the supply chain, addressing some of the issues that continue to challenge our industry in a constructive and mature way.

We will be encouraging our members to embrace them, and I urge everyone to get behind them and use them- what do you have to lose?

No one wants to see a return to boom and bust,

And this is where innovative projects and ways of working including the use of new technologies can unlock activity in a sustainable way and this industry has some great and increasing examples of this happening today.

And as we focus on our sustainability there will of course continue to be an important role for our politicians and regulators in ensuring a competitive and sustainable business environment,

Yes, indeed Brexit – no speech is complete these days without some sort of reference no matter how brief or colourful!

Our message to political parties of all persuasions remains the same – when it comes to Brexit, like every other industry, we need clarity and predictability, we need it sooner rather than later and we consider, that a deal outcome is in the best interests of this industry and the UK economy and society as a whole.

And so, ladies and gentlemen, those are two of our three tests – a sustainable industry, meeting the expectations of society, but what about safety?

 When it comes to safe operations OGUK’s most recent HS report shows a continuing improvement in people and process safety with record low numbers of reportable incidents 67% lower than 2001.

Concerted action to reduce hydrocarbon releases together with the HSE key programme initiatives has resulted in a continued decrease but the number of major releases while very small, appear to have plateaued.

Any release is one too many and the HSE rightly continue to challenge the industry and we are committed to working with them on this key area through process safety, audit and sustainable learning.

I’m pleased to announce today that we will host an HS and E conference in November and I hope you can join us

I’m sure you will agree that last year’s successful Safety30 was also a very poignant reminder of why we must be constantly vigilant about the safety of our operations and our people.

Reflecting on the three tests I’ve outlined today,

Are we upholding safe operations for our people and our businesses? Yes, but we cannot and will not take this for granted.

Are our business models geared towards sustainability through thick and thin? Yes, indeed firmer foundations are in place – but there is always more to be done.

Are we proactively meeting the expectations of the society we live and work in?

No not really. We do need to step up and show leadership and this is why we need your active support for our vision our future campaign and the actual delivery of Vision 2035,

And so, ladies and gentlemen, we have much to be proud of and nothing to be complacent about given the journey we are on and our commitment to seeing it through

Wisdom is of course about knowing the right path to take, and Integrity is about following it.

And when it comes to safety, sustainability and our society we should be proud about what we can offer and humble in how we deliver it,

Thank you for listening to me – and now it gives me great pleasure to introduce our first speaker of the morning

Sam Laidlaw is a well kent face to this industry and his impressive bio is in the conference app that I would encourage you to download to get all information about the conference  from the agenda to the delegate list to asking questions of your speakers and details of how to do this are in the programme.

Ends

Ministers from the UK and Scottish Governments and a leading strategist on sustainability and climate change are revealed as the final trio of speakers to join an impressive line-up for OGUK’s 2019 Industry Conference taking place this week from 4-5 June.

Scottish Government Cabinet Secretary Michael Matheson MSP will give a speech to delegates on the morning of the first day of conference. Lord Duncan, Parliamentary Under Secretary of State for Scotland and Parliamentary Under Secretary of State for Northern Ireland, will give a speech on the morning of the second day, Wednesday 5 June.

Dr Gabrielle Walker, a keynote speaker, author and advisor on sustainability and climate change, will bring conference to a close with her reflections on the changing industry.

The full conference agenda can be found here.

Speaking ahead of the two-day industry event, OGUK Chief Executive Deirdre Michie said:

“I’m delighted to reveal an impressive trio of speakers which concludes the line-up for our OGUK Industry conference 2019. With the theme of an industry in transition, delegates will have a valuable opportunity to hear insights from key speakers on the big issues affecting the sector.

“Cabinet Secretary for Transport, Infrastructure and Connectivity Michael Matheson has significant knowledge and experience from the forefront of Scottish politics.

“Lord Duncan brings a wealth of experience from his time in Europe and maintains impressive knowledge and links across many countries. His insight will be invaluable, particularly his environmental credentials, as we look to the big issues for our industry and our country.

“I’m also delighted to have Dr Gabrielle Walker bring conference to a close with her reflections on the energy transition.”

Industry leaders have come together to develop the roadmap which will steer the UK’s offshore oil and gas sector towards achieving Vision 2035.

This compelling, national vision is a shared intent by the industry and stakeholders, including government, to ensure industry can deliver as much of the UK’s oil and gas needs, expand supply chain opportunities at home, abroad and in other sectors, while supporting the accelerating transition to a lower carbon future up to 2035 and beyond.

A task force of senior industry figures has been formed to help develop a roadmap of what needs to be done and by when to deliver Vision 2035. The plan will follow one of the biggest ever engagement campaigns in the sector to ensure everyone in the industry understands the aims of the vision and joins a conversation as to how it can be achieved.

The task force members will pull together specific and measurable deliverables under the key areas of skills, technology, exports, diversification and culture.

OGUK Chief Executive and Task Force chair Deirdre Michie said: “There has never been a more important moment for us all to come together to collectively consider what our future could or should look like. Later this year we’ll publish a roadmap which will signpost how we can continue to meet as much of the UK’s oil and gas demand from home-produced resources, expand supply chain opportunities at home, abroad and in other sectors, while supporting an accelerating transition towards a lower carbon future.

“The Our Vision Our Future campaign is important for industry because we all have a role and a voice in the future of this industry, which is why we need everyone to join the conversation and think about how we can continue to make sure this industry remains a dynamic and exciting place to work as we move through the transition.”


The Our Vision. Our Future campaign will engage people across the industry in a shared understanding of Vision 2035 and how they can innovate and collaborate to make it a reality. By signing up to the campaign, organisations and individuals will be joining a conversation about what needs to be done in the industry and then committing to playing their part in making it happen.

The task force members will be collectively responsible for developing the road map, tracking its progress and making any interventions to challenge progress. Each member will have an action plan for their area of focus that will feed into the overall plan.

The members and their areas of focus are:

  • Steve Phimister (Shell U.K. Ltd) – culture and behaviours
  • Andy Samuel (OGA) – maximising economic recovery
  • Stuart Payne (OGA) – exports
  • Colette Cohen (OGTC) – technology
  • Andy McDonald (Scottish Enterprise) – diversification
  • Matt Abraham (Oil & Gas UK) – supply chain
  • John McDonald (OPITO) – skills
  • Trevor Garlick (ONE) – oil and gas sector deal

Photo caption (L-R): Trevor Garlick (ONE), Deirdre Michie (Oil & Gas UK), Stuart Payne (OGA), Andy McDonald (Scottish Enterprise), Andy Samuel (OGA), Colette Cohen (OGTC) and Steve Phimister (Shell U.K. Ltd)

David Rennie, head of Oil and Gas at Scottish Enterprise, said: “Delivery of Vision 2035 will make sure that in the next 15 years we will still support fulfilling jobs and prosperity for our supply chain, our people and our country. There is a potential £920 billion to be won, but the greater prize will be providing secure, affordable energy, as part of a lower carbon economy.

“By engaging through this campaign, we aim to inspire people, to spark ideas and ignite the passion to drive change and come up with the solutions required.”

Companies and employers are being urged to join the conversation by displaying Our Vision. Our Future branded material in their workplaces, sharing their ideas about how Vision 2035 will be achieved on the dedicated microsite www.energyvision2035.com and on social media using the hashtag #ourvisionourfuture or #jointheconversation and nominating individuals to become “Visionaries” – ambassadors for the campaign.

For more information about the Our Vision. Our Future campaign please visit: www.energyvision2035.com

 

 

 

The leading representative body for the UK’s offshore oil and gas industry has today (Friday, March 8) announced plans to ramp up efforts to maintain and encourage a diverse and inclusive workforce as it marks International Women’s Day.

OGUK will launch an industry network to highlight efforts to encourage diversity and inclusion, and identify collaborative approached to encourage talent through the sector’s doors. The announcement comes as OGUK Chief Executive Deirdre said fostering a diverse workforce was critical to business success and ensuring a competitive position for the UK Continental Shelf.

According to the Workforce Dynamics Review conducted by OPITO in partnership with RGU’s Oil and Gas Institute, the industry will have to recruit and retain over 40,000 people between 2018 and 2035 – this includes 10,000 new roles in areas such as data science, robotics, material science, nano-technology and cyber security.

Katy Heidenreich joins an all-female crew to visit Equinor’s Mariner platform as part of IWD 2019

 

OGUK Chief Executive Deirdre Michie with Dame Cilla Snowball at the launch of Katy Heidenreich’s book

Commenting, OGUK Chief Executive Deirdre Michie said:

“For the UK’s offshore oil and gas industry, International Women’s Day helps to celebrate the progress that has been made. It is a welcome reminder that more needs to be done to ensure a better balance in our industry, ensuring that it is and will continue to be a great place to work.

“OGUK is proud to champion industry’s efforts to date to improve diversity, not only today but throughout the year. The moral and business cases for better balance are clear and well-established and we need to embrace them if we are to ensure this sector sustains and improves its competitiveness.

“Our industry supports over 280,000 skilled jobs, but with women representing only one in four of the sector’s talent pool, there is clearly still work to be done.”

To mark International Women’s Day, OGUK Operations Optimisation Manager and author of “The Oil Industry’s Best Kept Secret” Katy Heidenreich joined an all-female offshore visit recently to the Mariner field with CHC, Aker, OGUK, and Equinor.

Commenting after the visit, Katy Heidenreich said:

“This trip underlines the power of visible role models. If even one girl sees this picture and believes this industry is for her then we’ve made an impact.

“Gender diversity, and diversity in a broader sense, is about ensuring equality of opportunity. Provided you are willing to work hard and keen to learn, the offshore oil and gas industry offers valuable and rewarding careers.”

Commenting on the findings of the Scottish Affairs Committee inquiry into the future of oil and gas, OGUK Chief Executive Deirdre Michie said:

“This was a considered inquiry into the future of the UK’s offshore oil and gas industry and we welcome the rounded support provided by the Scottish Affairs Committee in its final report today. It confirms the value our sector provides for energy security, jobs and contributing to the economy, both now and as we prepare to meet the challenges of the future.

“Industry has been unequivocal in its support to this inquiry and we will continue to work with governments, politicians and our members in forming our detailed response to the report’s conclusions.

“What is clear is that there is a recognition of our value and a collective will to realise the full potential of our industry. This is a solid founding block on which to realise Vision 2035, adding a generation of productive life to the UK Continental Shelf and expanding opportunities for our world class supply chain.”

 

ENDS

 

Notes to Editors

 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 07531407007 / ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

December 2018

2018 Collaboration Survey Results

The results of the Collaboration Survey were launched on 12th December 2018 by Nick Clark & Mariesha Jaffray at a dedicated Oil & Gas UK Event also featuring an overview of the work of the Efficiency Task Force and industry case studies from Subsea 7 and Nexen. You can see some of the presentations here:

  • Nick Clark, Director, Deloitte LLP
  • Scott Cameron, Business Unit Director, Subsea 7
  • Mariesha Jaffray, Continuous Improvement Manager, Oil & Gas UK
  • Scott McGinigal, Vice President Business Services, Nexen Petroleum U.K. Limited

and a PDF of the final report .

If you want to discuss the survey results in more detail, please contact the Efficiency Task Force efficiency@oilandgasuk.co.uk

 

View 2018 Report

Learn more about cultural change

 

 

2018 Collaboration Survey Launch

It’s that time of year again! Oil & Gas UK will shortly be launching the 2018 Upstream Supply Chain Collaboration Survey; please keep an eye out for emails with links to the survey as many of you will have been selected to provide input.

This year’s survey is the fourth edition and we are hoping to build on last year’s momentum by getting even more responses that in previous years. Your support is crucial to the success of the survey so please do fill it out if you receive a link.

Over the last three years the supply chain collaboration survey has provided valuable insight that has helped our industry take steps to demonstrate the right behaviours and improve performance. This is then reflected in the results. We want to continue that with this year’s survey and so we need as much feedback as possible.

The survey will be launched on Monday 13th August and will be open until 14th September. We will collate results and then conduct initial interviews with operators and OFS firms, which will feed into the creation of this year’s report to be launched in the first week of December.

We really value your input and look forward to receiving your completed surveys.

Best regards,

Oil & Gas UK

Efficiency Task Force

View 2017 Results 

Oil & Gas UK’s 2018 Decommissioning Insight Report, which provides a fresh insight of the market over the next ten years (2018–27), reveals that decommissioning expenditure is expected to run at about £1.5 billion per annum over the next decade, 20 per cent lower than forecast in 2017.

The report shows:

  • The UK is expected to spend £15.3 billion on decommissioning over the next decade
  • The rate of decommissioning expenditure is forecast to stabilise at around £1.5 billion per year, this is about 20% lower than forecast in 2017
  • 1465 wells are expected to be decommissioned over the next ten years, representing 1/5th of total UKCS well stock
  • Over 950,000 tonnes of topsides are scheduled for removal across the North Sea – of which just over 605,000 tonnes will be from the UKCS
  • UK is the largest market for decommissioning spend over next decade, representing one-third of expenditure across the top 12 markets [Wood Mackenzie];
  • Decommissioning on the UKCS offers first-mover advantage, which the UK’s supply chain can capitalise on, with the correct help

Oil & Gas UK Decommissioning team: Joe Leask, Sam George, Richard Heard

Unveiling the report findings to industry experts at the conference in St Andrews today, Joe Leask, Decommissioning Manager Oil & Gas UK and author of the report, said:

“As the decommissioning sector matures, we’re becoming more efficient and our growing expertise is enabling us to plan projects more cost-effectively. Our knowledge is continuously expanding and contributing to competitive decommissioning delivery. Data from projects to date reveals the scale of progress achieved in recent years. Forecast unit well decommissioning costs are reducing across all areas of the North Sea, and have fallen by an average of 26%.

“The efficiency improvements we see in decommissioning reflect what is being achieved across the oil and gas lifecycle and attracting fresh investment in the basin, to extend the life of many assets and increase economic recovery.

“The sector’s cost leadership demonstrates we have the capacity and capability to deliver the 35 percent cost reduction target set by the Oil and Gas Authority. Meeting and then beating this target will be key to unlocking the global market, allowing the UK to reinforce its position as world-leading.

“Oil & Gas UK is pleased that these capabilities are recognised by the UK government through its call for evidence in the 2018 Budget. This will, supported by the Scottish Government’s Decommissioning Challenge Fund, help establish the UK as centre for global decommissioning excellence.”

“Our focus now needs to be on identifying the areas we excel in, strengthening the share of our local market and then exporting those skills and capabilities into the global market.”

The report also notes:

Over the next decade

  • The spend over this next decade is almost 20% lower than forecasts made last year would have suggested. Reductions have been driven by improved productivity (including cost reduction, efficiency improvement and deflation) coupled with the movement of activity beyond 2027. This demonstrates that the decommissioning market is maturing and making significant inroads to deliver on its 35% cost reduction target
  • Cumulative expenditure up until 2027 has reduced by £4 billion in comparison with previous estimates
  • Some individual projects have seen the average amount of days spent on well decommissioning halve throughout the lifecycle of a project
  • Forecast costs per tonne for the removal of topsides in the central and northern North Sea have fallen by 13%, while the cost of removal per tonne for a substructure in this area has fallen by just over 16%

Notes to Editors:

 

  1. The report can be found on Oil & Gas UK’s website. Infographics for your use can be found here: http://bit.ly/2FHhDTx
  2. Oil & Gas UK’s upstream policy director Mike Tholen, and Joe Leask, Oil & Gas UK’s decommissioning manager, will be available for interview on Tuesday November 27 between 13.00- 13.45 at the conference, following the launch of the 2018 Decommissioning Insight at 11am. To book an interview, please contact Natalie Coupar.

 

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager on 01224 577343 or 07531 407007/ ncoupar @oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Oil & Gas UK has praised news that Azinor Catalyst has struck oil at Agar-Plantain as promising proof of industry’s competitive approach to exploration activity.

The discovery, located in the Viking Graben area in the Northern North Sea, contains 15-50 million barrels of recoverable resources.

Six exploration wells have been spudded so far in 2018, including Total’s Glendronach discovery and Apache with its discovery at the Garten prospect. Amidst continued concerns about low drilling levels, Oil & Gas UK today reaffirmed the importance of maintaining strong investment conditions.

Commenting, Oil & Gas UK Market Intelligence Manager Ross Dornan said:

“This is further evidence that the improved competitiveness of the industry, alongside the constructive regulatory and fiscal environment, is encouraging a pick-up in investment. This successful exploration project is very welcome and we need more of this to help keep production levels up. Agar-Plantain is a sizeable discovery, in an area with good access to infrastructure.

“This project shows the type of approach required to maximise economic recovery from the basin which still has 10-20 billion barrels of remaining potential. This is a further sign of growing confidence in the basin after the increase in applications to the 31st Licensing Round.

“Harnessing seismic data, new technologies and industry knowledge are all critical to unlocking further success and helping to realise Vision 2035.”

ENDS

An inspirational new book which shines a light on leading women in the UK’s offshore oil and gas industry will be published this week.

Titled “The Oil Industry’s Best Kept Secret: A book full of inspiration and advice”, the project, penned by Oil & Gas UK Operations Optimisation manager Katy Heidenreich, aims to encourage more girls to pursue careers in the critical energy sector.

It includes profile pieces and advice drawn from interviews with high profile women across the sector. Profiled interviews include Dame Judith Hackitt, chemical engineer and leading health and safety expert who most recently led the UK Government’s independent review into building regulations and fire safety following the Grenfell Tower fire, lead geologist at Shell UK Ltd, Caroline Gill, and Baker Hughes, a GE Company, Wireline Field Specialist, Lauren Adams.

Oil & Gas UK today revealed the book will be launched on November 2, where Katy Heidenreich will give her thoughts on its findings.

It will be followed by a panel discussion with Katy Heidenreich. Women’s Business Council chair, Dame Cilla Snowball, Oil & Gas UK Chief Executive Deirdre Michie, Premier Oil North Sea Director Robin Allan and chaired by Axis network chair Jenny Junnier. Dame Cilla Snowball will provide an insight on the work the Women’s Business Council has done to progress the diversity and inclusion agenda.

Speaking in advance of the launch, Katy Heidenreich said:

“The UK’s offshore oil and gas industry is a fast-moving and innovative place, with career opportunities all over the world. At the heart of this project is a shared love for an exciting industry and a desire to celebrate what a great place it is for both men and women to work.

“The process of writing the book was hugely empowering. I’m extremely grateful to the inspirational women who shared a window into their diverse professional lives, showing how they have successfully managed their careers and the fun that they have had along the way.

“From Chief Executives of global organisations to young engineers, it shows that while women represent one in four of the workforce, we already make an incredible impact. I hope that by reading it, more young women will have the confidence and feel encouraged to join our ranks.

“I would like to take this opportunity to thank our key sponsors BP, the Oil & Gas Technology Centre, Shell and BH GE. They have helped not just to make this book a reality but also to ensure the material reaches as many people as possible.”

Praising the book, Oil & Gas UK Chief Executive Deirdre Michie said:

“There are many women leading the way across our sector and this book shines a light on their stories. We know that role models are critical to enabling greater diversity in the workforce.

“By sharing their stories and giving advice, Katy provides us with a great insight into the positive opportunities that are offered by our industry. I’d encourage every girl thinking about her future to give it a read.”

Ends

Notes to Editors

About the author

Katy Heidenreich is Upstream Operations Optimisation Manager at Oil & Gas UK, joining the organisation after spending most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy has championed equality in the oil and gas industry throughout her career.

Oil & Gas UK has welcomed the UK Government’s commitment to maintain fiscal conditions in recognition of industry’s hard work in improving its competitiveness, following the publication of the government’s 2018 Budget this afternoon.

Chancellor Phillip Hammond announced that the current headline tax rate will continue.  He also stated that the UK government will launch a call for evidence on its plans to make Scotland a global hub for decommissioning.

It comes after Oil & Gas UK recently revealed that 11 projects have been announced by companies this year – more than the last three years combined, with more expected in the coming months.

Speaking in response to the Budget, Oil & Gas UK Chief Executive Deirdre Michie said:

“The Chancellor’s commitment to fiscal stability is welcome recognition of the hard work by industry to encourage recovery following one of the most testing downturns in its history.

“With reduced costs, competitive fiscal terms and improved operational performance, the UK Continental Shelf is becoming an attractive investment proposition. These conditions are delivering a tentative recovery, with more projects approved so far this year than in the last three years combined.

“It’s important that this stability is sustained for the longer term, encouraging further investment and much needed new business for the supply chain, which continues to be under pressure.

“Essential for security of supply, supporting hundreds of thousands of highly skilled jobs and contributing billions to the economy, the UK’s offshore oil and gas industry will continue to play a vital role in the economy for many years to come.”

The decommissioning market in the North Sea is forecast to grow steadily and is likely to be worth £1.8 billion per annum on average over the next decade.

Commenting on the call for evidence on decommissioning, Deirdre Michie added;

“As decommissioning activity is predicted to grow, the UK supply chain has a major opportunity to develop world-class decommissioning capabilities. We look forward to informing this exercise with our expertise and ensuring that we can maximise opportunities in decommissioning while continuing our focus on maximising economic recovery.”

ENDS

Notes to Editors 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224  577343/ 07531407007/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

The UK’s offshore oil and gas industry continued to see improvement across a broad range of health and safety indicators last year, according to a key insight into the health and safety landscape published by Oil & Gas UK today (Wednesday 3 October).

Findings from the leading representative body’s Health and Safety Report 2018 showed a continued downward trend in reportable incidents, with 255 such incidents reported to the health and safety regulator in 2017 – 67 percent lower than in 2000-01. This is the lowest on record.

With no work-related fatalities recorded in 2017, the non-fatal injury rate also continued to decrease across the UKCS.

The report gives an overview of the offshore oil and gas industry’s performance in health and safety in 2017 and a summary of activities undertaken by industry groups to protect people working in the sector in 2018.

Despite the continued improvements in the areas of process safety, personal safety, aviation and health, Oil & Gas UK today said there was no room for complacency.

The report notes that major hydrocarbon releases, whilst reduced since 2012, are plateauing at around two per year in the last few years. Industry efforts to drive concerted action in this area are being steered by Oil & Gas UK in partnership with Step Change in Safety.

Commenting on the report findings, Oil & Gas UK Health and Safety Manager Trevor Stapleton said:

“As a major hazard industry, the UK’s offshore oil and gas sector has a clear duty to protect the health and safety of our people.

“Oil & Gas UK’s Health and Safety 2018 report provides an informed view of health and safety performance in the UK’s offshore oil and gas industry in 2017.  The data shows that while we continue to see improvements across a range of trends, there can be no room for complacency.

“That’s why Oil & Gas UK is co-ordinating industry action to reduce the number of major hydrocarbon releases. In a year where we marked 30 years since Piper Alpha, we’re all too aware of the personal and long-lasting consequences if things go wrong.

“We’ve committed to working with the regulator, industry and, in collaboration with Step Change in Safety, to help steer efforts in the areas of process safety leadership, audit, self-verification and sustainable learning.

“As our industry emerges from a sustained downturn, the health and safety of our people remains a core value and is at the heart of all that we do. “

 

Industry report calls for urgent action to progress UK carbon capture and storage

A comprehensive report into the changing energy landscape has called for urgent action to progress low carbon technologies critical to the UK and Scottish Government’s net zero ambitions.

It says government and industry must work together to progress to the next stage five key projects across the UK which look to capture, transport and store carbon dioxide from heavy emitting industrial processes including power plants. It also calls for joint action to increase the potential for low carbon hydrogen to be used as a fuel to heat homes and power cars.

The policy recommendations are published today by the leading representative body for the oil and gas sector, OGUK, in its second Energy Transition Outlook Report. The document considers the changing energy landscape in the UK and outlines progress achieved by the UK’s oil and gas sector over the past year to provide industry and economy-wide solutions towards reducing emissions.

However, the report authors warn that the sector will need to earn its position in the changing energy world, with rapid action required to ensure the sector transforms over the next 30 years while continuing to meet as much of the UK’s oil and gas needs from domestic resources.

The report findings show:

  • The UK’s oil and gas industry is in a unique position to lead in the development of Carbon Capture Usage and Storage, with 5 projects situated across the country currently being explored
  • UK energy sector investment will need to double in order to achieve a decarbonised economy

Commenting on the report, OGUK Chief Executive Deirdre Michie said:

“Our Energy Transition Outlook report shows the changing energy landscape in the UK and the opportunities and challenges it presents all industries, businesses and people, our own included.

“With the launch of Roadmap 2035: a blueprint for net zero, we were one of the first industrial sectors to set out credible plans to support the UK and Scottish Government net zero emissions. Yet the oil and gas sector will have to earn its position in this new energy world, cutting its own emissions and working with governments and regulators to progress the five CCUS projects which now need to move forward into the next phase and developing hydrogen.

“As our report shows, there is lots of work to be done in a huge market which is only getting bigger as global demand for energy continues to grow. The Climate Change Committee report published at the beginning of this year noted CCUS was critical to our net zero ambitions. Our challenge, working with others including the OGTC’s Net Zero Solutions Centre, is to realise CCUS and other low carbon technologies as an opportunity for British businesses.”

 

 

.

 

Report shows rise in UK’s decommissioning competitiveness

The UK’s decommissioning sector’s growing competitiveness is revealed in the 2019 Decommissioning Insight report launched by OGUK today at the Offshore Decommissioning Conference held jointly with Decom North Sea. Now in its tenth year of publication, the report forecasts the UK’s decommissioning activity and expenditure over the next decade,  revealing that while activity on the UK Continental Shelf (UKCS) is expected to increase, expenditure will remain consistent at around £1.5 billion per annum, demonstrating the sector’s improving efficiency performance.

The report findings show:

  • Decommissioning now represents just under 10 per cent of the oil and gas industry’s overall expenditure
  • Pace of decommissioning expenditure remains steady at around £1.5 billion per year
  • Over the next decade, forecast expenditure for UKCS decommissioning remains constant at £15.2 billion
  • M&A activity in some areas of the North Sea is extending the life of offshore assets and moving decommissioning activity to the future
  • Within the next ten years $85 (£67) billion will be spent decommissioning oil and gas assets in the global market
  • To date, nine per cent of all the platforms installed on the UKCS have been decommissioned

Operators across the sector contribute data for OGUK’s Decommissioning Insight, which plays a fundamental role in providing market intelligence that highlights predicted activity and cost trends.

Commenting on the report, OGUK’s decommissioning manager Joe Leask said:

“With a firm grip on cost management, environmental and safety standards, our tenth annual Decommissioning Insight shows a healthy sector well-positioned to realise some £15bn of opportunities over the next decade.

“Our report underlines the significant intellectual capital anchored here in the UK. Ensuring this is shared is key to maintaining the competitiveness of the sector, enabling this homegrown industry to capture the lion’s share of an emerging global market some four times greater.

“We’re already seeing exciting new companies emerging as specialists in decommissioning, either offering full-scope solutions or focusing on specialising in areas including offshore well decommissioning and onshore dismantling and disposal. These innovative business models offer industry real choices whether operators carry out decommissioning themselves or pass the scope to those companies offering increasingly competitive solutions,

“Decommissioning is not the end of our industry; it offers a new beginning. Four years ago, industry stepped up to the challenge to cut decommissioning costs by 35 percent and we are well on the way to achieving that. We must apply the same collective determination and pioneering capabilities to deliver the net zero carbon challenge. This includes the re-use of old facilities for carbon capture and storage, presenting new opportunities to generate new value from old assets and help deliver the net zero future that industry has made to commitment to deliver.”

Download your copy of the Decommissioning Insight Report:

Success for future industry leader and innovative technology venture at annual awards

A fledgling industry star who unlocked £20 million of additional value for her company and a business that is using pioneering 3D printing to champion improved safety and environmental performance were among those to be crowned winners last night at the OGUK Awards 2019, sponsored by Shell U.K. Limited.

Over 550 guests gathered at the P&J Live to recognise the standout out achievements of businesses and high-performing individuals from across the industry. 30 finalists were in contention for ten awards, including excellence in decommissioning, business innovation and energy transition, a new award for 2019.

OGUK Graduate of the Year Erin Ingram, Apprentice of the Year Ashley Thomas and Mentor of the Year Teresa Waddington 

Praising the winners, Deirdre Michie, Chief Executive of OGUK, said:

“OGUK’s annual awards ceremony is a highly regarded event within the UK oil and gas industry calendar and this was one of the most competitive years yet.

“The success of our industry is down to the talent, ingenuity and skill of our people and that’s what these awards celebrate. A huge congratulations to our winners and a sincere thank you to all our finalists, whose dedication and expertise help us continually raise the bar on industry excellence.”

Steve Phimister vice president of event sponsor Shell’s UK upstream business said:

“It has been hugely rewarding to celebrate the talents and achievements of all the people who help the UK oil and gas industry make such a vital contribution to today’s energy sector. These are also the people who will play a key role in shaping the future success of the industry, as the UK navigates the energy transition.”

The winners across the ten categories are as follows:

OGUK Apprentice of the Year (sponsored by OPITO)

Ashley Thomas, BP

OGUK Graduate of the Year (sponsored by ECITB)

Erin Ingram, TAQA

OGUK Mentor of the Year Award 2018

Teresa Waddington, Shell U.K. Limited

Workforce Engagement

PD&MS GROUP

OGUK Business Innovation Award (SME)

WFS Technologies Limited

Business Innovation – Large Enterprise

TOTAL E&P UK

Diversity and Inclusion (sponsored by Spirit Energy)

CNR International (UK) Ltd

MER UK (sponsored by the Oil & Gas Authority)

Neptune Energy – BP – Japex UK E&P Ltd

Excellence in Decommissioning

Repsol Sinopec Resources UK

Energy Transition (sponsored by Fairfield Decom Limited)

BP

Aberdeen can position itself as global net zero energy capital

The chief executive of the leading representative body for the UK’s offshore oil and gas industry has today urged Aberdeen to grab the £1trillion of business opportunities presented by moves to net zero.

Speaking at the State of the Cities Conference today in Aberdeen, OGUK Chief Executive Deirdre Michie said

“Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

“And meeting as much of this from domestic resources is therefore crucial.

“At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

“To put the size of that prize in context, oil and gas companies currently support CCUS schemes at only 18 sites across the world,

“But we know that 10,000 will be required globally by 2070.

“It’s an exciting proposition because as we look to become a smart net zero energy industry we will need a smart net zero energy Aberdeen and shire to help us do this.

“Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

“The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital.”

Ends

 The full speech is below:

Good afternoon ladies and gentlemen and thank you to you DJ for your kind introduction and Aberdeen City Council for inviting me to speak today,

Can I add my congratulations to Hanan, Dougie and Graeme on their insightful and thoughtful and helpful report,

And to the city council for the progress made – the overview that Councillor Laing gave this morning is very impressive and as I said to Angela Scott – examples like the TECA are real triumphs for the city and her team.

I’ve really enjoyed the insightful sessions so far and it’s an honour to follow you Sir Howard,

I absolutely support that a joined up – collaborative public private approach is key and so today I’d like to talk about areas where, working together, we can realise a successful future for this region and for our industry.

These are:

1 – Attracting and retaining talented people here,

2 – Improving our international competitiveness,

And 3- enhancing our global reputation,

Aberdeen city and shire are considered by many to be the engine room of the UK’s offshore oil and gas industry,

We have a truly special relationship that has been built up over the last 50 years or so,

Our histories are intertwined as will be our futures and so

Looking ahead to the energy transition and delivery of the net zero ambitions, I believe there is a huge opportunity for us to go after together.  

We are an international industry and an international city and so staying competitive and attracting investment is key,

And it’s great that our 2019 Economic Report, shows, that as a sector, we’ve significantly improved efficiency and are fitter and more competitive than we have been for years.

As a result, investment is returning, and activity is picking up.

We have increased production by 20 percent over the last 4 years –as Hanan said an extraordinary achievement for a mature industry like ours and a reinforcement of our resilience and ability to keep on reinventing ourselves.

Utilising technology, introducing smarter and more efficient ways of working have helped to improve our competitiveness as we continue to emerge from one of the most challenging downturns in our history,

And while significant pressures remain on the supply chain here in the north east, staying competitive, working co-operatively with a fair sharing of risks and reward, need to be the cornerstones to unlocking more activity across the whole sector

The economic impact of getting this right for the local and UK economy is considerable –

Production of oil and gas accounted for 1.2 percent of UK GDP – equal to around £24bn

The industry continues to invest around £15bn per annum across the oil and gas lifecycle and has over the years contributed more than £350bn in production taxes alone.

And looking ahead, the OBR forecasts that production tax payments by this industry will amount to more than £8.5bn over the next five years,

When it comes to employment – so important for the north east – this sector supports 270,000 jobs across the UK,

The economic impact is clearly a positive one – but we recognise that with the challenges of climate change – we have to be better at communicating the positive contribution that this industry makes – and needs to continue to make if we are to ensure a fair and managed transition to a net zero future.

And just as we’ve heard today how Aberdeen is a city with a firm eye on the future,

You should be in no doubt that we are also an industry in action,

Because we too are part of a society which wants change, and we are confident that as the UK’s offshore oil and gas industry  – we can play a key role in being part of the solution – helping to drive change that can contribute to a net zero economy  which can then be exported to the rest of  the world.

We are moving forward positively and constructively, and we must continue to do so and at pace.

And so, what are we doing as an industry to be part of what will be a challenging but exciting, refocused energy future?

Well this year we published Roadmap 2035: A Blueprint to Net Zero,

It is one of the first major industrial responses to government commitments to deliver net zero carbon emissions by 2045 in Scotland and 2050 in the UK.

It sets out five key themes requiring tripartite action of industry, BOTH governments and regulators to ensure delivery. Support from them is crucial to our industry and to this city.

One – Helping meet the UK’s needs for energy and industrial products

Two – Driving technology and innovation and the launch of OGTC’s – that came out of the city deal and its Net Zero Solutions Centre is a great example of the kind of action that is needed and is happening

Three -Growing the economy and exports,

Four – developing our people, our skills and a collaborative culture

 And Five – Supporting net zero, because the UK needs our oil and gas products as part of an increasingly diversified energy system if it is going to deliver its net zero ambitions,

 The roadmap was developed out of over 2,500 conversations that continue today with people from across the sector and our stakeholders – many of whom are in this room today,

Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

And meeting as much of this from domestic resources is therefore crucial.

At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

To put the size of that prize in context – oil and gas companies currently support CCUS schemes at only 18 sites across the world,

But we know that 10,000 will be required globally by 2070

It’s an exciting proposition because as we look to become a smart net zero energy industry – we will need a smart net zero energy Aberdeen and shire to help us do this.

Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital,

So why is place important to the energy transition?

Surely every city could be and indeed should be a net zero energy city?

But the granite city like our industry has the skills, the experience and the ability to reinvent itself, as it has in the past, from ship building to fishing to the early oil industry founded on whale oil!

Building on our expertise as a global oil and gas hub, and with the right support,

Aberdeen’s future potential as an energy city is limitless,

We’re already seeing the real benefits that this expertise can bring,

We have the European Offshore Wind Deployment Centre directly visible from the coast (when there’s no har..!) and we have , Hywind – the world’s first floating offshore wind development, as well as RGU’s Energy Transition Institute – taking insights and learnings to countries like Mexico, and Columbia to name but a few.

Many of our companies operating in Aberdeen are already leading the way –and we should be especially proud of our supply chain companies like Wood and Global Energy Group which have expanded their footprint over the years into other parts of the energy sector,

And while yes, every economy should have a diverse ecosystem of businesses and industries to ensure it is sustainable,

We should also embrace the enormous value this industry has added and can continue to add as we look to the future. It’s a USP to be treasured.

Place is important and it’s why we are so pleased to see the progress being made here in recent  years in relation to  infrastructure -like, the Harbour –  AWPR  and the fibre network as well as  amenities like TECA, the art gallery and Music hall that are so key  to  establishing  this city as a great place to work and live and so helping us to secure the talent we need.

But more than this, projects like the hydrogen bus project and Hydrogen Aberdeen – reinforce the ambition and drive which will ensure Aberdeen can enjoy more success.

Aberdeen has, as we are all saying – a golden opportunity to claim the mantle of being a global net zero energy capital,

Grasping a healthy portion of the £1 trillion spend the UK Government estimates will be required to meet the challenging targets.

So, my ask of you today is to help champion Roadmap 2035,

In Developing a diverse energy workforce with transferable skills, that’s renowned globally for finding solutions to some of the world’s most challenging problems,

Helping to bring to life CCUS, hydrogen and low carbon technologies by encouraging innovation and establishing Aberdeen as a global hub for low carbon technologies.

And in so doing, realising Aberdeen’s full potential in the transition,

So, looking to the future, I’m confident we have the ingredients for success and that there should be no limits to our ambitions.

It’s an exciting time for this industry and I know you will agree, an exciting time for Aberdeen and the shire.

Thank you. I’d now like to hand over to Chris Murray, director of core cities UK.

Industry grasps digital opportunities

The increasing importance of digitalisation was put under the spotlight today at a breakfast briefing event, sponsored by Deloitte, held by the leading representative body for the UK’s offshore oil and gas industry, OGUK.

An audience of over 150 industry professionals heard about the benefits that could be realised in safety, efficiency and financial through the digital transformation of the North Sea sector.

Keynote speaker Marc O’Connor, Consulting Leader – Energy, Resources & Industrials, Deloitte, who said that digitalisation provided real opportunities for people to be released from routine type jobs, freeing them up to focus on value-added tasks that will provide the innovation solutions of the future.

Reflecting on the speech, expert panellists Alan Muirhead, Director of Projects & Engineering, Neptune Energy UK, Stephen Sheal, External Relationship Director, Oil & Gas Technology Centre and  Jared Owen, Director – Digital & Entrepreneurship, Opportunity North East, discussed how industry can ensure it has the skills and expertise needed to help deliver Roadmap 2035.

Speaking after the event, panel chair OGUK Stakeholder and Communications Director Gareth Wynn said:

“Digitalisation isn’t just the future, it’s the here and now. Today’s event showed that while this industry has a firm grasp on the opportunities digital transformation could bring, we must continue to collaborate and share good practice.

“From setting up an agile culture which removes barriers to decision making, to ensuring colleagues have fit-for-purpose skills and technologies, there are changes both big and small that this industry could make which could have a real impact on the safety, efficiency and competitiveness of our sector.

“This is an industry shaping up for the future and the delivery of Roadmap 2035 – our blueprint to a net zero future. It’s clear from today’s event that how we choose to embrace digitalisation could make or break our ability to be part of the low carbon economy we all want to see.”

Marc O’Connor, Consulting Leader – Energy, Resources & Industrials at Deloitte said: “Deloitte has extensive experience of digital transformation, and while the journey can be complex, we know that a successful outcome can be characterised very clearly and simply. When integrated and used effectively, digital has the potential to add value throughout a project’s lifecycle and those who invest with a data from day one approach can realise significant benefits.

“It was great to share our perspective on digital capital projects at this morning’s OGUK breakfast meeting. As well as covering real-world examples of how digital initiatives are being used on capital projects, I discussed a way forward for how businesses can navigate their own digital transformation journey and outlined the various opportunities that exist for operators and suppliers working in the UK’s oil and gas sector.”

New starts urged to drive industry future

The next generation of the UK’s oil and gas industry are being called upon to make their voices heard on key issues including the energy transition and climate change at a new event being held in Aberdeen on Thursday 24 October.  

Leading representative body for the sector OGUK today announced a second industry insight event aimed at graduates, young professionals and those starting out their career. It follows the success of an intern event in July attended by over 100 young people with placements in operator, service and supply chain companies.

The event sponsored by Spirit Energy will provide attendees with the opportunity to shape the future of their industry through direct involvement in Roadmap 2035: industry’s blueprint for a net zero future.

The audience will take part in an interactive workshop looking at the five key themes from Roadmap 2035 before hearing from a diverse panel chaired by OGUK Supply Chain Director Matt Abraham.

  • Sophie Guy-Pearson, Lead Business Advisor, OGUK
  • Guiseppe Tizzano, OGUK Mentor of the Year 2018, BP
  • Trevor Thomson, Director, Technical Function, Spirit Energy
  • Ryan Fernando, OGUK Apprentice of the Year 2018, Aker Solutions

Commenting on the event, OGUK Supply Chain Director Matt Abraham said:

“The people joining our industry today are among the most important voices in shaping the industry of tomorrow. The world of work is changing at a time when our industry is also looking to the future through the energy transition.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate about ensuring the voice of the next generation is not only heard but acted upon. This event is a great opportunity for people starting out their careers to drive the future of the sector and make a valuable contribution on our journey to becoming a net zero basin.”

Get your tickets for OGUK Insights for Young Professionals 

 

No winners from Greenpeace stunt

Commenting on reports that Greenpeace has ended its protest in the North Sea, OGUK Stakeholder and Communications Director Gareth Wynn said:

Gareth Wynn – Stakeholder and Communications Director

“There are no winners as a result of this stunt, which both put safety at risk and failed to produce any solutions to how we can achieve the net zero future we all want to see. The arguments from Greenpeace are fundamentally flawed and sadly fail to recognise the reality that prematurely shutting down the North Sea will only increase the UK’s reliance on imports from across the world.

“We live in a world with ever-growing demand for energy which at the same time needs an ever-reducing carbon footprint. Our industry is committed to help find practical solutions to one of the biggest challenges we will face. It’s time for deeds not words and we’d encourage anyone with a serious interest to work with us.”

READ NEXT: OGUK Energy Transition Outlook 2018

UKCS decommissioning costs unveiled in flagship industry report

A key industry report detailing the cost of decommissioning on the UK Continental Shelf and the progress being made by industry, government and regulators to reduce costs by more than 30 per cent will be unveiled at OGUK’s upcoming business breakfast in London.

The annual UKCS Decommissioning Cost Estimate Report, published by industry regulator the Oil & Gas Authority (OGA), will give a deeper insight into the landscape of the sector as well as highlight the opportunities and challenges currently facing the market.

Sponsored by White & Case LLP, the event will be held on Tuesday, July 2, at 5 Old Broad Street, London.

Commenting, Joe Leask, Decommissioning Manager at OGUK, said:

“We’re delighted to host the launch of this vital piece of research from the OGA and I look forward to hearing more about the progress industry has made in achieving the 35 per cent cost reduction target.

“The UK is a first mover in the decommissioning of complex, deep-water oil and gas assets and the industry must seize future opportunities in the global decommissioning market.

“This includes the development and deployment of CCUS (carbon capture, usage and storage), building on the re-use of offshore infrastructure, industry geological expertise, and utilising the skills and knowledge of our supply chain.”

 

Industry can be an essential partner to UK climate ambitions

The leading representative body for the UK’s offshore oil and gas industry has today reinforced the role the industry can play in supporting the UK to meet its climate change ambitions.

Speaking in response to the Prime Minister’s commitment to deliver net zero emissions by 2050, OGUK Chief Executive Deirdre Michie set out the role industry can play to enable the energy systems of the future and to help the development of technology that can mitigate carbon from other heavy emitting industries.

Commenting, Deirdre Michie said:Deirdre Michie

“Achieving net zero is a huge challenge that will affect all industries, businesses and people. Our sector needs to be involved in this agenda, work to realise the opportunities it presents and be an essential partner in supporting the UK to achieve its climate change ambitions.

“We can help design the diverse energy system we need for the future, and through our knowledge and experience can be a central part of developing some of the technology needed to mitigate carbon from other heavy emitting industries through for example, Carbon Capture Usage and Storage.

“We have already welcomed the Climate Change Committee report and are engaging with our members on the practical steps we need to take to in relation to continuing to manage and reduce the emissions from our own activities, to play our part in achieving net zero.

“With world-leading engineering skills, infrastructure and energy expertise, our industry stands ready to work with sectors across the UK economy to enable the UK to achieve its climate change goals.”

OGUK Industry Conference: Deirdre Michie speech

Speaking to over 400 delegates at the OGUK Industry Conference in Aberdeen this morning, OGUK Chief Executive Deirdre Michie said:

Ladies & gentlemen, good morning and welcome, to OGUK’s conference and exhibition for 2019: An Industry in Transition

I’m very pleased that so many of you have joined us here for what I hope will be an interesting and insightful 36 hours, where we consider the progress industry is making as it continues to emerge from one of the most challenging downturns, while positioning itself for a sustainable future that supports a lower carbon economy.

Four years ago, when I addressed this conference for the first time, before the possibility of Brexit or Trump had registered with anyone, none of us had any idea of the challenge and change that was to test us all at every level,

And that would take this industry to the point from which many thought it couldn’t return.

But the sector’s “come back” is very much in progress,

Thanks to the resilience, courage and can-do attitude that has typified its success over the years and will be key to its sustainability going forward.

To help us consider all of this and more, I’m delighted to be joined in this opening session by Sam Laidlaw of Neptune Energy, Torgrim Reitan of Equinor and Jean-Luc Guiziou of Total,

Sam, Torgrim and Jean-Luc are three excellent leaders of companies epitomising this industry’s transition whether it’s because they are attracted to the competitiveness of the basin or are embracing and taking the lead in the energy transition,

Their thought-provoking views will lay the foundations for the focused and interactive programme that we have ahead of us with compelling and insightful industry leaders speaking and chairing our sessions throughout our time together.

I’d also like to thank Jean Luc and Total as our principal sponsor, for supporting us once again as well as of course all our other sponsors

Your backing for this key industry event is very much appreciated.

Ladies and gentlemen, ensuring we sustain our licence to operate while we transition to a lower carbon economy are key challenges for us.

I believe that there are three tests that we need to satisfy if we want to protect our licence to operate as well as simply do the right thing as responsible UK and global citizens.

One- Are we ensuring safe operations for our people and our organisations?

Two – Are our business models geared towards sustainability through thick and thin?

And three – do we proactively meet the expectations of the society we work in and for?

Indeed, as we look back over the last 4 years – the pace of change has been extraordinary and as we look ahead we need to stay focused on the things we can influence, deliver or change.

Because as Benjamin Disraeli said – when you are finished changing – you are finished -and this industry certainly is not.

  So, when thinking about the society we live in and its expectations, another quote comes to mind,

(“Until you start focusing on what needs to be done rather than what is politically possible, there is no hope. We can’t solve a crisis without treating it as a crisis. We need to keep the fossil fuels in the ground, and we need to focus on equity. And if solutions within the system are so impossible to find, maybe we should change the system itself.”)

These are the words of Greta Thunberg – an impressive young woman we can all take inspiration from.

A woman who wants to change the world.

I would like to reassure Greta- we are listening, because we want the world to be a better place too.

And while we believe that our industry’s global contribution has improved the lives of billions of people, we are clear that climate change is a real and present danger that we must deal with together.

When Greta says, “If solutions within the system are so impossible to find, maybe we should change the system itself.”

I would like to suggest that as the UK’s offshore oil and gas industry has so many talented people, engineers, data scientists, remote vehicle operators, technologists and more

We can find and deliver the solutions needed while at the same time positioning ourselves to be at the heart of an energy system that also needs to change.

Whether it is by the sector working to reduce its operational emissions as well as supporting the advancement of low carbon and abatement technologies.

Indeed, along with our sector delivering from exploration through to decommissioning, it’s already unlocking the energy transition with some operators extending their portfolios into other energies – Equinor –Total, Shell and BP.

And of course, the downstream and utilities sectors are doing a lot of work in this too.

This is why we welcomed the Climate Change committee report last month

Where it recommended that the UK set a net zero target for GHG by 2050 and by 2045 for Scotland.

This report provides a balanced and thoughtful blueprint towards a lower carbon future and I would commend it to those of you who haven’t read it yet.

Its recommendations are rooted in practical and societal choices that we need to embrace as an industry and as individuals if we are truly to make a leading and constructive contribution to the future of our industry, our economy and our society generally.

The climate change committee also recognised that the indigenous offshore oil and gas industry needs to be a key part of a diverse energy mix going forward and is therefore not in competition with renewables.

Official figures show that production from our offshore industry will be needed to meet two thirds of the UK’s oil and gas energy needs, while the gap between what we produce and what we need to heat our homes and fuel our cars is made up from imports, shipped from across the world often with a bigger carbon footprint,

It’s why the Climate Change Committee report talked about “energy sovereignty” and the need to make up that demand from domestic resources while we transition to a lower carbon future.

And our supply chain is already very much in action, using its transferable skills and expertise to service the needs of alternative energy companies from Global Energy to Wood to Aker Solutions.

So, while we continue to advocate with facts and evidence I appreciate that it can sound like corporate speak that doesn’t have the emotion or the urgency that society and we, as part of society, are all feeling.

This is why Vision 2035, and Our Vision, Our Future campaign is set in the context of energy transition and not in isolation

It’s about our industry supporting an accelerating energy transition through our people, expertise and infrastructure, while meeting as much of our country’s oil and gas needs from home produced resources,

Where our world-class supply chain, anchored in the UK and with its international reach, adds value across the energy sector at home and abroad, developing technologies which help to decarbonise the economy

Delivering a diverse energy mix which can help us meet the UK’s dual challenge of satisfying ongoing supply demands with a lower carbon footprint

Powering your iPhone- heating your shower – providing the screens for your computers or TVs or the glue to stick yourself to doors- unless you used a plant-based glue of course!

Indeed, anyone and everyone who wants to change the world for the better can work with us to help ensure a fair and just and managed transition and at a pace that will also be required.

And so today I can confirm that later this year we’ll publish the road map which will set out how we can successfully deliver the vision and our industry’s sustainable future, to ensure it continues to contribute to the country  in terms of hundreds of thousands of jobs, security of energy supply, billions of pounds in taxes and investment levels, for decades to come.

So, if I have one ask of you today ladies and gentlemen, it is that you get behind our campaign – Our Vision Our Future and support our industry in delivering a sustainable lower carbon future.

So, if this is where we are heading, where are we now?

Well as we continue to emerge from the downturn our businesses are adapting to the new reality where an ongoing volatile commodity price,

Back down to between $60 and $70 with an outlook that remains in the $50 to $60 range means retaining a tight focus on budgets and looking for innovative ways of working that unlock opportunities across the basin.

It means sustaining and deepening the competitiveness that this industry has achieved through its own focus and endeavours as well as working well with both governments, regulators and the OGA to ensure a cohesive and comprehensive approach that is delivering results.

Production is up 20 percent over the last 5 years – costs are being contained at an average of $15 per barrel and production efficiency is up to 75% from the low 60s.

Our fiscal regime continues to be one of the most globally competitive and capital is being attracted back into the basin,

Over £3.2bn for 13 projects in 2018 with the same anticipated this year too.

The deals that are continuing to be done, Delek and Chryasor’s being such recent examples of companies considering this to be a great place in which to do business

The momentum around exploration is building,

Although drilling continues to be at an all-time low.

Many E&P operators are cash flow positive for the first time in years – rebalancing their books and yes paying off debt and giving back to shareholders but also increasing their activity too.

Parts of the supply chain are starting to see the benefits but not all.

With margins remaining under pressure the sustainability of some areas of our supply chain is challenged and so some operators do have a choice.

And that is to ensure a better share and more balance in terms of the risk and return now or find yourselves and industry as a whole or paying for it sooner rather than later.

The supplier principles that we drew up earlier this year can be a key enabler to companies throughout the supply chain, addressing some of the issues that continue to challenge our industry in a constructive and mature way.

We will be encouraging our members to embrace them, and I urge everyone to get behind them and use them- what do you have to lose?

No one wants to see a return to boom and bust,

And this is where innovative projects and ways of working including the use of new technologies can unlock activity in a sustainable way and this industry has some great and increasing examples of this happening today.

And as we focus on our sustainability there will of course continue to be an important role for our politicians and regulators in ensuring a competitive and sustainable business environment,

Yes, indeed Brexit – no speech is complete these days without some sort of reference no matter how brief or colourful!

Our message to political parties of all persuasions remains the same – when it comes to Brexit, like every other industry, we need clarity and predictability, we need it sooner rather than later and we consider, that a deal outcome is in the best interests of this industry and the UK economy and society as a whole.

And so, ladies and gentlemen, those are two of our three tests – a sustainable industry, meeting the expectations of society, but what about safety?

 When it comes to safe operations OGUK’s most recent HS report shows a continuing improvement in people and process safety with record low numbers of reportable incidents 67% lower than 2001.

Concerted action to reduce hydrocarbon releases together with the HSE key programme initiatives has resulted in a continued decrease but the number of major releases while very small, appear to have plateaued.

Any release is one too many and the HSE rightly continue to challenge the industry and we are committed to working with them on this key area through process safety, audit and sustainable learning.

I’m pleased to announce today that we will host an HS and E conference in November and I hope you can join us

I’m sure you will agree that last year’s successful Safety30 was also a very poignant reminder of why we must be constantly vigilant about the safety of our operations and our people.

Reflecting on the three tests I’ve outlined today,

Are we upholding safe operations for our people and our businesses? Yes, but we cannot and will not take this for granted.

Are our business models geared towards sustainability through thick and thin? Yes, indeed firmer foundations are in place – but there is always more to be done.

Are we proactively meeting the expectations of the society we live and work in?

No not really. We do need to step up and show leadership and this is why we need your active support for our vision our future campaign and the actual delivery of Vision 2035,

And so, ladies and gentlemen, we have much to be proud of and nothing to be complacent about given the journey we are on and our commitment to seeing it through

Wisdom is of course about knowing the right path to take, and Integrity is about following it.

And when it comes to safety, sustainability and our society we should be proud about what we can offer and humble in how we deliver it,

Thank you for listening to me – and now it gives me great pleasure to introduce our first speaker of the morning

Sam Laidlaw is a well kent face to this industry and his impressive bio is in the conference app that I would encourage you to download to get all information about the conference  from the agenda to the delegate list to asking questions of your speakers and details of how to do this are in the programme.

Ends

Trio of VIP speakers mark final conference line up

Ministers from the UK and Scottish Governments and a leading strategist on sustainability and climate change are revealed as the final trio of speakers to join an impressive line-up for OGUK’s 2019 Industry Conference taking place this week from 4-5 June.

Scottish Government Cabinet Secretary Michael Matheson MSP will give a speech to delegates on the morning of the first day of conference. Lord Duncan, Parliamentary Under Secretary of State for Scotland and Parliamentary Under Secretary of State for Northern Ireland, will give a speech on the morning of the second day, Wednesday 5 June.

Dr Gabrielle Walker, a keynote speaker, author and advisor on sustainability and climate change, will bring conference to a close with her reflections on the changing industry.

The full conference agenda can be found here.

Speaking ahead of the two-day industry event, OGUK Chief Executive Deirdre Michie said:

“I’m delighted to reveal an impressive trio of speakers which concludes the line-up for our OGUK Industry conference 2019. With the theme of an industry in transition, delegates will have a valuable opportunity to hear insights from key speakers on the big issues affecting the sector.

“Cabinet Secretary for Transport, Infrastructure and Connectivity Michael Matheson has significant knowledge and experience from the forefront of Scottish politics.

“Lord Duncan brings a wealth of experience from his time in Europe and maintains impressive knowledge and links across many countries. His insight will be invaluable, particularly his environmental credentials, as we look to the big issues for our industry and our country.

“I’m also delighted to have Dr Gabrielle Walker bring conference to a close with her reflections on the energy transition.”

Roadmap to set out industry future

Industry leaders have come together to develop the roadmap which will steer the UK’s offshore oil and gas sector towards achieving Vision 2035.

This compelling, national vision is a shared intent by the industry and stakeholders, including government, to ensure industry can deliver as much of the UK’s oil and gas needs, expand supply chain opportunities at home, abroad and in other sectors, while supporting the accelerating transition to a lower carbon future up to 2035 and beyond.

A task force of senior industry figures has been formed to help develop a roadmap of what needs to be done and by when to deliver Vision 2035. The plan will follow one of the biggest ever engagement campaigns in the sector to ensure everyone in the industry understands the aims of the vision and joins a conversation as to how it can be achieved.

The task force members will pull together specific and measurable deliverables under the key areas of skills, technology, exports, diversification and culture.

OGUK Chief Executive and Task Force chair Deirdre Michie said: “There has never been a more important moment for us all to come together to collectively consider what our future could or should look like. Later this year we’ll publish a roadmap which will signpost how we can continue to meet as much of the UK’s oil and gas demand from home-produced resources, expand supply chain opportunities at home, abroad and in other sectors, while supporting an accelerating transition towards a lower carbon future.

“The Our Vision Our Future campaign is important for industry because we all have a role and a voice in the future of this industry, which is why we need everyone to join the conversation and think about how we can continue to make sure this industry remains a dynamic and exciting place to work as we move through the transition.”


The Our Vision. Our Future campaign will engage people across the industry in a shared understanding of Vision 2035 and how they can innovate and collaborate to make it a reality. By signing up to the campaign, organisations and individuals will be joining a conversation about what needs to be done in the industry and then committing to playing their part in making it happen.

The task force members will be collectively responsible for developing the road map, tracking its progress and making any interventions to challenge progress. Each member will have an action plan for their area of focus that will feed into the overall plan.

The members and their areas of focus are:

  • Steve Phimister (Shell U.K. Ltd) – culture and behaviours
  • Andy Samuel (OGA) – maximising economic recovery
  • Stuart Payne (OGA) – exports
  • Colette Cohen (OGTC) – technology
  • Andy McDonald (Scottish Enterprise) – diversification
  • Matt Abraham (Oil & Gas UK) – supply chain
  • John McDonald (OPITO) – skills
  • Trevor Garlick (ONE) – oil and gas sector deal

Photo caption (L-R): Trevor Garlick (ONE), Deirdre Michie (Oil & Gas UK), Stuart Payne (OGA), Andy McDonald (Scottish Enterprise), Andy Samuel (OGA), Colette Cohen (OGTC) and Steve Phimister (Shell U.K. Ltd)

David Rennie, head of Oil and Gas at Scottish Enterprise, said: “Delivery of Vision 2035 will make sure that in the next 15 years we will still support fulfilling jobs and prosperity for our supply chain, our people and our country. There is a potential £920 billion to be won, but the greater prize will be providing secure, affordable energy, as part of a lower carbon economy.

“By engaging through this campaign, we aim to inspire people, to spark ideas and ignite the passion to drive change and come up with the solutions required.”

Companies and employers are being urged to join the conversation by displaying Our Vision. Our Future branded material in their workplaces, sharing their ideas about how Vision 2035 will be achieved on the dedicated microsite www.energyvision2035.com and on social media using the hashtag #ourvisionourfuture or #jointheconversation and nominating individuals to become “Visionaries” – ambassadors for the campaign.

For more information about the Our Vision. Our Future campaign please visit: www.energyvision2035.com

 

 

 

IWD 2019: OGUK announces key network to drive industry diversity

The leading representative body for the UK’s offshore oil and gas industry has today (Friday, March 8) announced plans to ramp up efforts to maintain and encourage a diverse and inclusive workforce as it marks International Women’s Day.

OGUK will launch an industry network to highlight efforts to encourage diversity and inclusion, and identify collaborative approached to encourage talent through the sector’s doors. The announcement comes as OGUK Chief Executive Deirdre said fostering a diverse workforce was critical to business success and ensuring a competitive position for the UK Continental Shelf.

According to the Workforce Dynamics Review conducted by OPITO in partnership with RGU’s Oil and Gas Institute, the industry will have to recruit and retain over 40,000 people between 2018 and 2035 – this includes 10,000 new roles in areas such as data science, robotics, material science, nano-technology and cyber security.

Katy Heidenreich joins an all-female crew to visit Equinor’s Mariner platform as part of IWD 2019

 

OGUK Chief Executive Deirdre Michie with Dame Cilla Snowball at the launch of Katy Heidenreich’s book

Commenting, OGUK Chief Executive Deirdre Michie said:

“For the UK’s offshore oil and gas industry, International Women’s Day helps to celebrate the progress that has been made. It is a welcome reminder that more needs to be done to ensure a better balance in our industry, ensuring that it is and will continue to be a great place to work.

“OGUK is proud to champion industry’s efforts to date to improve diversity, not only today but throughout the year. The moral and business cases for better balance are clear and well-established and we need to embrace them if we are to ensure this sector sustains and improves its competitiveness.

“Our industry supports over 280,000 skilled jobs, but with women representing only one in four of the sector’s talent pool, there is clearly still work to be done.”

To mark International Women’s Day, OGUK Operations Optimisation Manager and author of “The Oil Industry’s Best Kept Secret” Katy Heidenreich joined an all-female offshore visit recently to the Mariner field with CHC, Aker, OGUK, and Equinor.

Commenting after the visit, Katy Heidenreich said:

“This trip underlines the power of visible role models. If even one girl sees this picture and believes this industry is for her then we’ve made an impact.

“Gender diversity, and diversity in a broader sense, is about ensuring equality of opportunity. Provided you are willing to work hard and keen to learn, the offshore oil and gas industry offers valuable and rewarding careers.”

Inquiry findings on oil and gas future confirm value of sector

Commenting on the findings of the Scottish Affairs Committee inquiry into the future of oil and gas, OGUK Chief Executive Deirdre Michie said:

“This was a considered inquiry into the future of the UK’s offshore oil and gas industry and we welcome the rounded support provided by the Scottish Affairs Committee in its final report today. It confirms the value our sector provides for energy security, jobs and contributing to the economy, both now and as we prepare to meet the challenges of the future.

“Industry has been unequivocal in its support to this inquiry and we will continue to work with governments, politicians and our members in forming our detailed response to the report’s conclusions.

“What is clear is that there is a recognition of our value and a collective will to realise the full potential of our industry. This is a solid founding block on which to realise Vision 2035, adding a generation of productive life to the UK Continental Shelf and expanding opportunities for our world class supply chain.”

 

ENDS

 

Notes to Editors

 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 07531407007 / ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Upstream Supply Chain Collaboration Survey

December 2018

2018 Collaboration Survey Results

The results of the Collaboration Survey were launched on 12th December 2018 by Nick Clark & Mariesha Jaffray at a dedicated Oil & Gas UK Event also featuring an overview of the work of the Efficiency Task Force and industry case studies from Subsea 7 and Nexen. You can see some of the presentations here:

  • Nick Clark, Director, Deloitte LLP
  • Scott Cameron, Business Unit Director, Subsea 7
  • Mariesha Jaffray, Continuous Improvement Manager, Oil & Gas UK
  • Scott McGinigal, Vice President Business Services, Nexen Petroleum U.K. Limited

and a PDF of the final report .

If you want to discuss the survey results in more detail, please contact the Efficiency Task Force efficiency@oilandgasuk.co.uk

 

View 2018 Report

Learn more about cultural change

 

 

2018 Collaboration Survey Launch

It’s that time of year again! Oil & Gas UK will shortly be launching the 2018 Upstream Supply Chain Collaboration Survey; please keep an eye out for emails with links to the survey as many of you will have been selected to provide input.

This year’s survey is the fourth edition and we are hoping to build on last year’s momentum by getting even more responses that in previous years. Your support is crucial to the success of the survey so please do fill it out if you receive a link.

Over the last three years the supply chain collaboration survey has provided valuable insight that has helped our industry take steps to demonstrate the right behaviours and improve performance. This is then reflected in the results. We want to continue that with this year’s survey and so we need as much feedback as possible.

The survey will be launched on Monday 13th August and will be open until 14th September. We will collate results and then conduct initial interviews with operators and OFS firms, which will feed into the creation of this year’s report to be launched in the first week of December.

We really value your input and look forward to receiving your completed surveys.

Best regards,

Oil & Gas UK

Efficiency Task Force

View 2017 Results 

Growing expertise and cost leadership help deliver stabilisation in decommissioning market

Oil & Gas UK’s 2018 Decommissioning Insight Report, which provides a fresh insight of the market over the next ten years (2018–27), reveals that decommissioning expenditure is expected to run at about £1.5 billion per annum over the next decade, 20 per cent lower than forecast in 2017.

The report shows:

  • The UK is expected to spend £15.3 billion on decommissioning over the next decade
  • The rate of decommissioning expenditure is forecast to stabilise at around £1.5 billion per year, this is about 20% lower than forecast in 2017
  • 1465 wells are expected to be decommissioned over the next ten years, representing 1/5th of total UKCS well stock
  • Over 950,000 tonnes of topsides are scheduled for removal across the North Sea – of which just over 605,000 tonnes will be from the UKCS
  • UK is the largest market for decommissioning spend over next decade, representing one-third of expenditure across the top 12 markets [Wood Mackenzie];
  • Decommissioning on the UKCS offers first-mover advantage, which the UK’s supply chain can capitalise on, with the correct help

Oil & Gas UK Decommissioning team: Joe Leask, Sam George, Richard Heard

Unveiling the report findings to industry experts at the conference in St Andrews today, Joe Leask, Decommissioning Manager Oil & Gas UK and author of the report, said:

“As the decommissioning sector matures, we’re becoming more efficient and our growing expertise is enabling us to plan projects more cost-effectively. Our knowledge is continuously expanding and contributing to competitive decommissioning delivery. Data from projects to date reveals the scale of progress achieved in recent years. Forecast unit well decommissioning costs are reducing across all areas of the North Sea, and have fallen by an average of 26%.

“The efficiency improvements we see in decommissioning reflect what is being achieved across the oil and gas lifecycle and attracting fresh investment in the basin, to extend the life of many assets and increase economic recovery.

“The sector’s cost leadership demonstrates we have the capacity and capability to deliver the 35 percent cost reduction target set by the Oil and Gas Authority. Meeting and then beating this target will be key to unlocking the global market, allowing the UK to reinforce its position as world-leading.

“Oil & Gas UK is pleased that these capabilities are recognised by the UK government through its call for evidence in the 2018 Budget. This will, supported by the Scottish Government’s Decommissioning Challenge Fund, help establish the UK as centre for global decommissioning excellence.”

“Our focus now needs to be on identifying the areas we excel in, strengthening the share of our local market and then exporting those skills and capabilities into the global market.”

The report also notes:

Over the next decade

  • The spend over this next decade is almost 20% lower than forecasts made last year would have suggested. Reductions have been driven by improved productivity (including cost reduction, efficiency improvement and deflation) coupled with the movement of activity beyond 2027. This demonstrates that the decommissioning market is maturing and making significant inroads to deliver on its 35% cost reduction target
  • Cumulative expenditure up until 2027 has reduced by £4 billion in comparison with previous estimates
  • Some individual projects have seen the average amount of days spent on well decommissioning halve throughout the lifecycle of a project
  • Forecast costs per tonne for the removal of topsides in the central and northern North Sea have fallen by 13%, while the cost of removal per tonne for a substructure in this area has fallen by just over 16%

Notes to Editors:

 

  1. The report can be found on Oil & Gas UK’s website. Infographics for your use can be found here: http://bit.ly/2FHhDTx
  2. Oil & Gas UK’s upstream policy director Mike Tholen, and Joe Leask, Oil & Gas UK’s decommissioning manager, will be available for interview on Tuesday November 27 between 13.00- 13.45 at the conference, following the launch of the 2018 Decommissioning Insight at 11am. To book an interview, please contact Natalie Coupar.

 

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar, Communications Manager on 01224 577343 or 07531 407007/ ncoupar @oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Azinor Catalyst well success promising proof of industry approach

Oil & Gas UK has praised news that Azinor Catalyst has struck oil at Agar-Plantain as promising proof of industry’s competitive approach to exploration activity.

The discovery, located in the Viking Graben area in the Northern North Sea, contains 15-50 million barrels of recoverable resources.

Six exploration wells have been spudded so far in 2018, including Total’s Glendronach discovery and Apache with its discovery at the Garten prospect. Amidst continued concerns about low drilling levels, Oil & Gas UK today reaffirmed the importance of maintaining strong investment conditions.

Commenting, Oil & Gas UK Market Intelligence Manager Ross Dornan said:

“This is further evidence that the improved competitiveness of the industry, alongside the constructive regulatory and fiscal environment, is encouraging a pick-up in investment. This successful exploration project is very welcome and we need more of this to help keep production levels up. Agar-Plantain is a sizeable discovery, in an area with good access to infrastructure.

“This project shows the type of approach required to maximise economic recovery from the basin which still has 10-20 billion barrels of remaining potential. This is a further sign of growing confidence in the basin after the increase in applications to the 31st Licensing Round.

“Harnessing seismic data, new technologies and industry knowledge are all critical to unlocking further success and helping to realise Vision 2035.”

ENDS

New book set to ignite girls’ energy ambitions

An inspirational new book which shines a light on leading women in the UK’s offshore oil and gas industry will be published this week.

Titled “The Oil Industry’s Best Kept Secret: A book full of inspiration and advice”, the project, penned by Oil & Gas UK Operations Optimisation manager Katy Heidenreich, aims to encourage more girls to pursue careers in the critical energy sector.

It includes profile pieces and advice drawn from interviews with high profile women across the sector. Profiled interviews include Dame Judith Hackitt, chemical engineer and leading health and safety expert who most recently led the UK Government’s independent review into building regulations and fire safety following the Grenfell Tower fire, lead geologist at Shell UK Ltd, Caroline Gill, and Baker Hughes, a GE Company, Wireline Field Specialist, Lauren Adams.

Oil & Gas UK today revealed the book will be launched on November 2, where Katy Heidenreich will give her thoughts on its findings.

It will be followed by a panel discussion with Katy Heidenreich. Women’s Business Council chair, Dame Cilla Snowball, Oil & Gas UK Chief Executive Deirdre Michie, Premier Oil North Sea Director Robin Allan and chaired by Axis network chair Jenny Junnier. Dame Cilla Snowball will provide an insight on the work the Women’s Business Council has done to progress the diversity and inclusion agenda.

Speaking in advance of the launch, Katy Heidenreich said:

“The UK’s offshore oil and gas industry is a fast-moving and innovative place, with career opportunities all over the world. At the heart of this project is a shared love for an exciting industry and a desire to celebrate what a great place it is for both men and women to work.

“The process of writing the book was hugely empowering. I’m extremely grateful to the inspirational women who shared a window into their diverse professional lives, showing how they have successfully managed their careers and the fun that they have had along the way.

“From Chief Executives of global organisations to young engineers, it shows that while women represent one in four of the workforce, we already make an incredible impact. I hope that by reading it, more young women will have the confidence and feel encouraged to join our ranks.

“I would like to take this opportunity to thank our key sponsors BP, the Oil & Gas Technology Centre, Shell and BH GE. They have helped not just to make this book a reality but also to ensure the material reaches as many people as possible.”

Praising the book, Oil & Gas UK Chief Executive Deirdre Michie said:

“There are many women leading the way across our sector and this book shines a light on their stories. We know that role models are critical to enabling greater diversity in the workforce.

“By sharing their stories and giving advice, Katy provides us with a great insight into the positive opportunities that are offered by our industry. I’d encourage every girl thinking about her future to give it a read.”

Ends

Notes to Editors

About the author

Katy Heidenreich is Upstream Operations Optimisation Manager at Oil & Gas UK, joining the organisation after spending most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy has championed equality in the oil and gas industry throughout her career.

Commitment to maintaining fiscal conditions welcomed by industry

Oil & Gas UK has welcomed the UK Government’s commitment to maintain fiscal conditions in recognition of industry’s hard work in improving its competitiveness, following the publication of the government’s 2018 Budget this afternoon.

Chancellor Phillip Hammond announced that the current headline tax rate will continue.  He also stated that the UK government will launch a call for evidence on its plans to make Scotland a global hub for decommissioning.

It comes after Oil & Gas UK recently revealed that 11 projects have been announced by companies this year – more than the last three years combined, with more expected in the coming months.

Speaking in response to the Budget, Oil & Gas UK Chief Executive Deirdre Michie said:

“The Chancellor’s commitment to fiscal stability is welcome recognition of the hard work by industry to encourage recovery following one of the most testing downturns in its history.

“With reduced costs, competitive fiscal terms and improved operational performance, the UK Continental Shelf is becoming an attractive investment proposition. These conditions are delivering a tentative recovery, with more projects approved so far this year than in the last three years combined.

“It’s important that this stability is sustained for the longer term, encouraging further investment and much needed new business for the supply chain, which continues to be under pressure.

“Essential for security of supply, supporting hundreds of thousands of highly skilled jobs and contributing billions to the economy, the UK’s offshore oil and gas industry will continue to play a vital role in the economy for many years to come.”

The decommissioning market in the North Sea is forecast to grow steadily and is likely to be worth £1.8 billion per annum on average over the next decade.

Commenting on the call for evidence on decommissioning, Deirdre Michie added;

“As decommissioning activity is predicted to grow, the UK supply chain has a major opportunity to develop world-class decommissioning capabilities. We look forward to informing this exercise with our expertise and ensuring that we can maximise opportunities in decommissioning while continuing our focus on maximising economic recovery.”

ENDS

Notes to Editors 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar on 01224  577343/ 07531407007/ ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

No room for complacency despite industry health and safety improvements

The UK’s offshore oil and gas industry continued to see improvement across a broad range of health and safety indicators last year, according to a key insight into the health and safety landscape published by Oil & Gas UK today (Wednesday 3 October).

Findings from the leading representative body’s Health and Safety Report 2018 showed a continued downward trend in reportable incidents, with 255 such incidents reported to the health and safety regulator in 2017 – 67 percent lower than in 2000-01. This is the lowest on record.

With no work-related fatalities recorded in 2017, the non-fatal injury rate also continued to decrease across the UKCS.

The report gives an overview of the offshore oil and gas industry’s performance in health and safety in 2017 and a summary of activities undertaken by industry groups to protect people working in the sector in 2018.

Despite the continued improvements in the areas of process safety, personal safety, aviation and health, Oil & Gas UK today said there was no room for complacency.

The report notes that major hydrocarbon releases, whilst reduced since 2012, are plateauing at around two per year in the last few years. Industry efforts to drive concerted action in this area are being steered by Oil & Gas UK in partnership with Step Change in Safety.

Commenting on the report findings, Oil & Gas UK Health and Safety Manager Trevor Stapleton said:

“As a major hazard industry, the UK’s offshore oil and gas sector has a clear duty to protect the health and safety of our people.

“Oil & Gas UK’s Health and Safety 2018 report provides an informed view of health and safety performance in the UK’s offshore oil and gas industry in 2017.  The data shows that while we continue to see improvements across a range of trends, there can be no room for complacency.

“That’s why Oil & Gas UK is co-ordinating industry action to reduce the number of major hydrocarbon releases. In a year where we marked 30 years since Piper Alpha, we’re all too aware of the personal and long-lasting consequences if things go wrong.

“We’ve committed to working with the regulator, industry and, in collaboration with Step Change in Safety, to help steer efforts in the areas of process safety leadership, audit, self-verification and sustainable learning.

“As our industry emerges from a sustained downturn, the health and safety of our people remains a core value and is at the heart of all that we do. “