Following the news of the merger of Chrysaor with Premier Oil today, OGUK’s chief executive Deirdre Michie, said:

“Chrysaor and Premier Oil are great stewards, contributors and champions of this industry so this investment is encouraging news for the UK Continental Shelf. 

“With companies increasingly looking to see how they can work together to meet as much of our oil and gas demand from domestic resources instead of imports, this merger will help to stimulate further activity for our hard-pressed supply chain and contribute to an inclusive transition towards a low carbon economy.”

The leading representative body for the UK’s offshore oil and gas industry has hailed the grit and resilience of the thousands of people working for the critical sector as it opened nominations for its annual awards.

Throughout the coronavirus pandemic, key workers both on and offshore continued to safely operate installations around the UK Continental Shelf, supporting the UK’s security of energy supply.  While seeking to deal with the economic fall-out of the  low oil and gas prices brought about by the pandemic, the industry continued with its work on Roadmap 2035, making  major commitments to halve emissions from the production of oil and gas in the next decade as well as progressing its plans to support carbon cutting solutions including carbon capture usage and storage and hydrogen.

Industry body OGUK will hold its annual awards, sponsored by Shell,  on 10 December this year, with hopes that its virtual format will make it more accessible not only to the industry workforce, but to family, friends and anyone with an interest in how the sector is shaping up as part of a low carbon future.

Commenting as nominations open, OGUK chief executive Deirdre Michie said:

“This has been extraordinary year in which our industry, only just beginning to recover from the last downturn, finds itself facing more dark days ahead. Yet, in spite of the personal and professional challenges the coronavirus pandemic brought on all industries, companies and people, our key workers ensured our critical industry never stopped operating.

“This is the North Sea spirit and grit we are known for, working in tough circumstances to provide affordable energy to millions across the UK. It is this same resilience which should give confidence that our changing industry is and will continue to step forward by cutting its emissions and in using its skills and expertise to develop the solutions needed to meet our country’s climate ambitions. We remain on track to deliver our ambitious plan to realise the full potential of our sector through the energy transition, Roadmap 2035.

“With a new virtual format, OGUK’s annual awards are an opportunity to tell our positive story to more people than ever before. Whether it’s family, friends, or you  want to know more about how our industry is changing andabout the people who make this sector the amazing industry that it is, we hope everyone will enjoy taking part in acknowledging and celebrating inspirational and impressive contributions.”

Nominations close on 2 October and companies are being encouraged to champion talent and innovation, with nine awards up for grabs this year.

Shell UK upstream vice president Steve Phimister said:

“2020 has thrown down challenge after challenge for the sector. But our people have stepped up and met it, maintaining the critical energy supplies that the UK relies on, as well as starting to address the all-important subject of Energy Transition. We can all be proud of our huge efforts right across the industry, and I look forward to seeing our most important asset – our people – celebrated at these awards.”

Ends

Notes to Editors:

  1. Categories include:
Individual Awards

 

  • Award for Apprentice of the Year
  • Award for Graduate of the Year
  • Award for Mentor of the Year
Company Awards

 

  • Award for Excellence in Decommissioning
  • Award for Energy Transition
  • Award for Diversity and Inclusion
  • Award for Workforce Engagement
  • Award for Business Innovation
    – SME and Large Enterprise
  1. Further information about OGUK’s Annual Awards can be found here:

 

Issued by the Communications Team, OGUK.  Contact Communications Manager Natalie Coupar, 07531407007 / [email protected],uk

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

More than 200 people joined OGUK’s Industry Insights webinar for young professionals today (Thursday, September 17) to hear how the sector is working to advance new technologies on the route to net zero. 

The free event, sponsored by Halliburton, centred around the skills required for the future in reaching net zero carbon emissions by 2050 in the UK and by 2045 in Scotland, and how important the next generation of talent will be in realising the full potential of the UK’s oil and gas industry through the energy transition.

The audience also heard from a panel of speakers including Ryan Fernando, workshop supervisor at Aker Solutions (2018 winner of OGUK apprentice of the year), Martin White, vice president at Halliburton, Alix Thom, workforce engagement and skills manager at OGUK, Francesca Bell, business advisor at OGUK, and Paul de Leeuw, director of the RGU Energy Transition Institute, Robert Gordon University.

The webinar was chaired by OGUK’s continuous improvement manager, Emily Taylor, who said:

“We are delighted with the success of this third virtual Industry Insights event, which centred around skills for the future, taking a deep dive into Geosciences before looking at the entire industry. The session also gave the audience insights into the energy transition and allowed them to voice their personal experiences of the industry.

“Through the energy transition, we have a once in a lifetime opportunity to show how we can build a more diverse and lower carbon energy mix in a way that embraces the skills and talents of our people, and young professionals will have a huge part to play in helping drive that forward.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate about ensuring everyone can make a valuable contribution on our journey to becoming a net zero basin.”

The webinar follows the success of three Industry Insight events hosted by OGUK over the past year, including one focused solely on interns which was attended by over 100 young people with placements in operator, service and supply chain companies.

OGUK has welcomed the final report released by Climate Assembly UK today (Thursday, September 10), which states that the country’s path to net zero must be underpinned by education, choice, fairness and political consensus.

OGUK is already discussing a transformational North Sea Transition Deal with the UK Government, which will also set out how the country’s oil and gas industry will play its part in supporting a green recovery that attracts investment, jobs and boosts the supply chain.

Commenting, OGUK’s chief executive Deirdre Michie said:

“The Climate Assembly UK report is welcome and picks up on a number of areas that we as an industry are already driving forward in support of the country’s climate ambitions.

“We already know the powerful combination of this sector’s skills, capabilities and infrastructure are advancing new technologies on the road to net zero, with some key projects already underway. At the same time, our changing industry can help to keep costs low for households, support highly skilled jobs while also developing cleaner energy for the future.

“Industry’s Roadmap 2035 offers a sensible blueprint with a progressive net zero agenda, supporting energy communities to embrace new opportunities – including hydrogen. Despite the pressures experienced by the sector, a number of identified actions have already been delivered, including our commitment to halve emissions from the operational production of oil and gas over the next decade.

“Through the energy transition, we have a once in a lifetime opportunity to show how we, as an oil and gas producing country, can successfully build a more diverse and lower carbon energy mix in a way that embraces the skills and talents of our people, provides secure and affordable energy to all, and unlocks thriving energy communities both now and in future.”

The leading representative body for the UK’s offshore oil and gas industry has embraced a UK government review into future licensing rounds as an opportunity to shine a light on how the sector is changing to support the country’s climate ambitions while still ensuring it contributes to the UK’s ongoing security of energy supply.

Speaking in response to the announced review, OGUK Chief Executive Deirdre Michie OBE called for a constructive and open discussion about how the UK will continue to meet its energy needs while delivering consumer affordability and jobs, optimising indigenous energy sources in a way that ensures the UK doesn’t offshore its emissions to other countries.
The industry is currently working with the UK Government on a North Sea Transition Deal which will look to harness the full potential of the sector in developing cleaner energy solutions including carbon capture usage and storage and hydrogen.

The announcement comes as the UK oil and gas industry marks a year since it published its response to climate commitments, Roadmap 2035, which identified over sixty actions required to support a fair and managed transition to a lower carbon future.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The UK offshore oil and gas industry has the essential expertise to help the UK meet its climate ambitions by 2050 while at the same time providing affordable energy for households and families, supporting jobs, and creating exciting energy jobs of the future.

“This review is an opportunity to shine a light on how our industry is changing. With commitments to halve emissions in the next decade and committed investment in exciting low carbon solutions, the changing UK oil and gas industry is stepping up to the climate change challenge.

“Throughout the coronavirus pandemic we have not stopped working, and our people have continued to work in difficult circumstances to meet as much of the UK’s oil and gas needs from domestic resources. The reality is that oil and gas will continue to be part of a diverse energy mix for years to come.

“We now need a constructive and open conversation about how our oil and gas producing country can transition fairly to a lower carbon future. Working with governments, regulators and through sensible debate, we can protect jobs and affordability while being ultimately accountable for the emissions associated with the oil and gas we use.”


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Over eight actions identified by the UK’s offshore oil and gas industry as essential if it is to realise a successful future in a lower carbon future have already been delivered, with a further 20 underway, despite the pressures heaped on the sector by the coronavirus pandemic.

Progress against an ambitious industry roadmap was confirmed by representative body OGUK, noting it as further evidence that the UK sector is embracing change.

Roadmap 2035: a blueprint for net zero, was one of the first UK industry responses to government commitments to achieve net zero carbon emissions by 2050 in the UK and 2045 in Scotland. Published at Offshore Europe in 2019, the substantive document commits the sector to a range of actions to help meet the UK’s energy needs, support jobs, develop new technologies, cut emissions, and expand export opportunities.

The challenges and opportunities facing the sector a year on from the Roadmap will be the focus of an industry webinar, sponsored by Deloitte, to be hosted by OGUK on Tuesday 8 September 2020.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The UK offshore oil and gas industry has the essential expertise to help the UK meet its climate ambitions by 2050 while at the same time providing affordable energy for households and families, supporting jobs, and creating exciting energy jobs of the future.

“Despite the challenges heaped on the sector by the coronavirus pandemic and low oil and gas prices, a number of actions of Roadmap 2035 have already been delivered and many more are underway. This progress is testament to the fact that our industry is changing and is committed to positive change for the long term.

“As we look to further challenges ahead, support of government and regulators remains critical if we are to be able to realise our full potential through the energy transition. The North Sea Transition Deal can be a catalyst in delivering Roadmap 2035 and supporting the green recovery, as well as specific recognition from governments and politicians of the positive role we can play in our economy and society.”

Graham Hollis, office senior partner for Deloitte in Aberdeen commented:

“There is no doubt that the sector is under immense pressure as businesses grapple with the challenges posed by the coronavirus pandemic as well as the fallout from the Saudi-Russia price war. Despite this, it is promising to see the strong progress being made and the sector’s willingness to enact positive change while continuing its important role in maintaining jobs and affordable energy.

“It is crucial that this momentum is maintained, and businesses must continue to innovate and collaborate to deliver on the ambitions of Roadmap 2035 and ensure the country’s future, sustainable energy mix.”

Commenting on the OGA’s Decommissioning Cost Estimate report published today (Wednesday, August 19), Joe Leask, decommissioning manager at OGUK, said:

“The OGA’s report on decommissioning cost trends for the UK industry shows the challenges we face.

“While significant progress has been made over the years, new ways of working will be critical to ensure we stimulate activity in the supply chain, keep skills and infrastructure in the UK, and meet our savings target. OGUK continues to work with industry, government and regulators to understand how we can bring innovative ideas to life, such as multi-operator campaigns, which ultimately will help position the UK sector as a global leader in decommissioning.”

 

 

A new forum dedicated to helping small and medium-sized businesses navigate the downturn has been launched by OGUK as it continues to help the sector stimulate a recovery.

The leading representative body’s Continuous Improvement team is launching a new SME forum this month amid concern that a growing number of smaller companies may not survive the current economic pressures and the fallout from the Covid-19 pandemic.

As part of industry’s Efficiency Task Force, which aims to promote a positive and progressive business culture, the SME forum will give participants access to OGUK’s existing business support guidance and initiatives, as well as an opportunity to shape the agenda.

The forum will provide an opportunity to identify and address issues in the SME community, and offer the chance for participants to collectively develop solutions which work for them and support individual needs.

Emily Taylor, OGUK’s continuous improvement manager, said:

“With the oil and gas industry entering yet another downturn so soon after the last, and as we work towards the energy transition, we’re particularly worried about the impact this will have on our small businesses.  The SME forum will bring the community together to create a shared voice and identify business opportunities across the sector.

“The new forum will deliver a platform to share and engage, as well as showcase the work OGUK is doing to support smaller businesses and stimulate a recovery. This will give our members the chance to keep their finger on the pulse and offer solutions to challenges industry is facing.”

Items on the agenda for the first forum on August 18 include an update on Brexit and its impact on the industry, plus input from OGUK’s external affairs team on political developments and their impact on the oil and gas supply chain.

The new forum will be chaired by Catriona Stevenson, business manager at Ecosse IP Ltd, who commented:

“Working for a small business and having founded an oil and gas networking group during the last downturn has made me very aware of the struggles that these companies face, and now more than ever I feel they need our support. 

“As we move into the energy transition and with Brexit upon us, I feel that the SME community need to come together with one voice to be heard and be better supported across the sector.”

To join the forum, which takes place on August 18, please contact Emily Taylor, OGUK’s continuous improvement manager, at [email protected]

 

The leading representative body for the UK’s offshore oil and gas sector will reflect on lessons learnt from the coronavirus pandemic as it reveals suspected covid-19 cases offshore continue to decrease due to “effective industry-wide measures” to protect the sector.

OGUK will host a free webinar ‘Covid-19: A retrospective and look ahead’ to provide insight into the industry’s response, where a panel of experts will outline their experiences of the pandemic and its impact.

The event, to be held on Thursday, July 30, from 2pm to 3.30pm, will be hosted by Trevor Stapleton, OGUK’s HSE director.

It comes as the industry body confirms that the number of Category C flights has continued to decrease and was made up of just 0.03% of total persons on board (POB) offshore installations for the week ending July 26 – allowing the sector to continue providing secure and affordable energy in support of the energy transition.

Trevor Stapleton, OGUK’s health, safety and environment director, said: “The reduction in c-med flights is a recognition of both industry-imposed barriers and UK measures being effective.

“As we move into the recovery phase – which will mean increasing POB offshore – a  missing piece of the jigsaw is still  asymptomatic testing for our offshore workforce,  carried out using the NHS UK test centres and we continue to make the case for this with both the UK and Scottish governments.

“It is worth noting that a Cat-C passenger is only symptomatic of Covid-19 and may not be a positive case, therefore the percentage figure is the worst-case scenario.

“However, now is not the time for us to become complacent and we will be paying close attention to the figures going forward.

“The coronavirus pandemic is of a scale and severity which none of us have seen before, but we shouldn’t take for granted the true value of the UK’s offshore oil and gas industry’s culture of safety.”

As well as a look back on how the industry has responded to the crisis, the event will also look ahead to the next six months to consider what steps could be taken in terms of navigating  the operational impact of COVID-19, preparations for winter flu season and the foreseen impacts.

The webinar is open to all industries, companies and individuals, where attendees will have the opportunity to learn more about the emergency preparedness and response in the UK’s offshore oil and gas industry, hear first-hand insights from professionals at the frontline of coordinating an industry-wide response.

Mr Stapleton added: “The open and continuous sharing of our experiences within our industry, with other sectors and with government will be critical as we look to the future. While we must now start working on how to bring this essential industry back on its feet, we must also take the time to learn and reflect.

“The upcoming webinar will give an opportunity to understand potential future risks and how this could impact business and allow us to further improve workforce safety and engagement.”

The event – where delegates will also learn about the challenges and lessons in protecting a diverse workforce in both on and offshore environments – will also include comment from Natalie Coupar, communications manager, OGUK, Chris Flint, HSE director Energy Division, Health and Safety Executive, Matt Rhodes, director UK & Turkmenistan Oil and Gas, Bristow Helicopters Ltd, and Mike Killeen ,VP Operations at Serica Energy.

For more information and to register for the webinar please visit here.

 

 

The leading representative body for the UK oil and gas industry, OGUK, has appointed a new vice co-chair to its board as the sector makes moves to recover from the impact of the coronavirus pandemic and low oil and gas prices.

Sian Lloyd Rees, UK country manager and SVP of customer management at Aker Solutions, has been appointed as OGUK’s new contractor vice co-chair.

With over 25 years’ experience, Sian Lloyd Rees joined Aker Solutions following several key leadership roles in blue chip and start-up companies and joined the board of OGUK in 2018.

Her career began in the oil and gas industry at Stena Offshore and Halliburton before progressing into the IT industry with positions at Petrocosm and Oracle. In her current role, Sian is country manager for the UK and leads the customer management function for Europe and Africa as senior vice president.

Commenting on her position, Sian Lloyd Rees said:

“I’m delighted to assume this role at a time when the supply chain needs additional focus and support, for both the challenges we face today and the transition of our long established skills and technology to underpin the ongoing energy transition.”

OGUK’s chief executive Deirdre Michie said:

“Our talented and diverse supply chain is essential for the UK’s energy needs and in developing solutions to meet our climate ambitions. I’m really pleased to welcome Sian as OGUK’s vice co-chair as she brings a wealth of knowledge and experience to the board – particularly in the digital sphere.

“The ongoing challenges we face from the coronavirus pandemic and low oil and gas prices continue to put pressure across the whole of the UK’s offshore oil and gas industry. Having Sian in this role will be key to ensuring we steer a path that supports the supply chain as we seek to protect the sector, spur its recovery and support an accelerated transition to net zero.”

The UK’s offshore oil and gas industry has today welcomed the Chancellor’s announcement of support for employers, including the Job Retention Bonus and moves to support more traineeships and jobs for young people.

The leading representative body for the sector OGUK said that the UK faces a once-in-a-lifetime opportunity to deliver moves to a lower carbon and more diverse energy mix, reinforcing the importance of the sector deal currently being discussed with the UK Government.

OGUK Chief Executive Deirdre Michie said:

“The Chancellor’s announcement provides welcome support for companies in the UK’s offshore oil and gas industry affected by the immediate impact of the coronavirus pandemic. The continued volatility facing our sector however underlines the need for long-term and targeted support. In devastating circumstances the UK now faces a once-in-a-lifetime opportunity to realise an energy transition which delivers affordable energy, supports jobs and enables our industry to put our skills to work to help cut emissions.

“Industry’s Roadmap 2035 offers a sensible blueprint which keeps net zero firmly on the agenda while also supporting energy communities to embrace new opportunities including carbon capture and hydrogen.

“Today’s funding for Direct Air Capture of CO2  is a welcome step in the right direction as part of the wider development and roll-out of Carbon Capture and Storage, and we look forward to continuing our work with government to realise the full potential of our sector in delivering the UK’s energy future.”

 

The leading representative for the UK’s offshore oil and gas industry has welcomed the Committee on Climate Change report to parliament today, calling for energy communities like the North East of Scotland and the East of England to be put at the heart of plans to transition to a lower carbon future.

OGUK recently set out industry commitments to halve operational emissions in the next decade, with a target of 90 percent reductions by 2040. The sector was one of the first to respond to the Committee on Climate Change report in May last year which called for governments to reach net zero emissions by 2050 in the UK and 2045 in Scotland, with its Roadmap 2035: a blueprint for net zero.

With formal talks now underway on a transformational sector deal, the industry body today said a green recovery is an opportunity to accelerate critical solutions including carbon capture usage and storage, and hydrogen, while the sector should continue to meet as much of the UK’s oil and gas needs from domestic resources.

OGUK Chief Executive Deirdre Michie said:

“The Committee on Climate Change report offers a measured and thoughtful view on how we can stimulate a truly fair transition towards a lower carbon future.

“We can’t afford for communities like the North East of Scotland or the East of England to be left behind. We urgently need a green recovery which enables our industry to meet as much of the UK’s oil and gas demand from domestic resources while developing the critical solutions which will help reduce emissions in other industries and wider society. This is the fair, sustainable and inclusive transition which will allow the UK to meet its climate ambitions in a way which supports jobs, skills and energy communities.”

More than 300 people have signed up to attend OGUK’s first-ever D&I webinar to further explore opportunities to improve diversity and inclusion in what remains a challenging landscape for the UK oil and gas industry.

The free webinar ‘An opportunity in the disruption’ offers a virtual chance to network and hear first-hand from industry’s D&I Task Group as they reflect on the current situation and seek out prospects to build on the work that has been achieved to date – shaping a stronger, diverse and inclusive culture across the sector.

The event, to be held on Thursday, May 28, from 2.30pm to 3.30pm, will be hosted by Craig Shanaghey, D&I Task Group chair and president operations services (Europe & Africa) at Wood, who will give an overview of the current D&I landscape and the cross-industry approach to driving greater diversity and inclusion. Karen Blanc, operations director and AXIS Network chair will be moderating throughout the session.

The event will also include comment from D&I Task Group members Findlay Anderson, vice president and general counsel oilfield equipment at Baker Hughes, Ollie Folayan, co-founder of AFBE-UK, Mavis Anagboso, business and strategy director at Kalor Consultancy, and Susan Brimmer, people and organisation development manager for the OGTC.

Craig Shanaghey, president, operations services (Europe & Africa) at Wood and D&I Task Group chair, said:

“Once again, the energy industry is going through an important period of transition. To make the most of the opportunities presented, we need to develop a diverse workforce with different perspectives and ideas. Importantly, we need to make sure that we access 100% of the talent within our businesses and unlock the potential that everyone has to offer.

“This free webinar is a great opportunity to connect and get involved. It will allow people to share experiences and understanding of the current D&I landscape, whilst ensuring their voices are heard.

“It is that diversity of thought, brought together in an inclusive and empowering context that will allow us to thrive in a changing environment.”

There will be the opportunity for questions and the speakers will also be offering their insight into how the industry can unlock its full potential to ultimately meet the sector’s net zero ambitions, and how new ideas and technology will be key to shaping this future.

For more information and to register for the webinar please visit here.

Commenting on the Chancellor’s announcement today that that furlough scheme will be extended for four months until October, OGUK’s chief executive Deirdre Michie said:

“OGUK welcomes the Chancellor’s announcement today to extend the furlough scheme until October this year.

“Across the country, this industry has been deeply impacted by low oil and gas prices as well as COVID-19 and we will continue to see the compounding effects on people’s jobs and livelihoods.

“We are now working to gather details of what this announcement will mean for our members post-July, and how we can support them through what remains an undoubtedly difficult period.

“The latest announcement is recognition of how long some sectors will take to recover from this crisis and the support they will need – the collapse in commodity prices means the oil and gas industry’s recovery will inevitably be prolonged.

“The added flexibility of the scheme is welcome as it provides a vital lifeline to thousands of workers in our industry whose skills and capabilities we need now and in the future as we transition to net zero.”

The leading representative body for the UK’s offshore oil and gas industry has repeated its calls to accelerate moves to net zero as part of efforts to support the sector’s recovery.

Speaking in response to advice issued to governments by the Committee on Climate Change today, and confirmation by Prime Minister Boris Johnson that the UK Government is working with OGUK on a sector deal, the body’s chief executive today said the sector remains committed to a three-stage framework published earlier this month.

The framework sets out specific steps to support the sector during the immediate coronavirus pandemic, to aide its recovery to meet as much of the UK’s oil and gas needs from domestic resources, and ultimately to deploy the sector’s skills, capabilities and infrastructure to develop the critical net zero infrastructure of the future.

Commenting, OGUK Chief Executive Deirdre Michie said:

“The UK’s offshore oil and gas industry is under enormous pressure and we’re already seeing the direct impact of this on companies, jobs and the communities we work in up and down the country.

“This is an industry which can play a critical role in the UK’s transition to net zero, but it is not a given. Utilising our skilled people, capabilities and infrastructure means we can meet as much of the UK’s oil and gas needs from domestic resources while also stepping up to support the delivery of key low carbon technologies including CCUS at scale.

“We’ve welcomed the support from both the UK and the Scottish Government and can confirm we are working on a sector deal proposal. We need to keep working together with governments, regulators and indeed anyone interested in a fair, inclusive, and sustainable transition to deliver what is needed for the sector and the country.”

The leading representative body for the UK’s offshore oil and gas industry has warned that up to 30,000 jobs could be lost in the sector as it called for the transition to net zero to be put at the heart of recovery plans.

The stark warning comes as companies in the sector report an increasingly grim outlook as they deal with the fallout from the coronavirus pandemic and a 20 year low in oil prices and a 14 year low for gas.

The industry is expected to see a dramatic reduction in revenue, sparking concerns about the ability of some companies to survive a downturn that is likely to be even more severe than the one in 2015 which the sector is just emerging from.

The figures are published in a report issued today by OGUK following a survey of its membership.

The Business Outlook: Activity and Supply Chain report, calls for urgent action to protect energy security, jobs, and energy regions. OGUK has asked governments and regulators to support a three-stage framework to support the sector in dealing with the immediate crisis while positioning it to play a key role in the UK’s transition to a net zero future.

The report notes:

  • The average oil price for March was $22.5/barrel, a 65% decrease compared to January 2020. This trend has continued in April with Brent price falling to its’ lowest point for 20 years to $16/bbl on April 22nd.
  • For the first time, WTI became negative in the US following an over-capacity and lack of local storage. (WTI is a crucial regional benchmark for North America).
  • There is now a stark contrast in sentiment compared to the beginning of the year with all E&P companies and 93% of supply chain firms reporting a worse or significantly worse outlook for 2020.
  • OGUK anticipate that CAPEX could fall to between £3.5-4 billion, the lowest investment since 2000 and amongst the lowest levels of investment since the early 1970s. OGUK also anticipates that OPEX will be reduced by 10-20%, compared to expectations at the start of the year, to around £6-7billion
  • OGUK also warns that drilling activity this year could be down by 50% on 2019 levels – pushing activity levels to record lows.
  • The position of many areas of the supply chain is increasingly fragile. Revenues and margins across the supply chain are expected to fall by 20-30 per cent, on top of reductions seen during the last downturn. The impact on businesses will vary depending on their position in the industry, with some areas of the supply chain expected to see greater reductions.
  • Although there is still a significant degree of uncertainty in estimates affecting the next 12-18 months, based on company feedback, OGUK currently anticipates that the level of direct and indirect jobs supported by the industry could contract by up to 30,000 during this period.
  • The survey feedback also indicates that as part of their response to the crisis more than three-quarters of supply chain companies plan to increase their non-oil and gas work this year.
  • Around 30% of respondents to the recent business survey identified that they were successful in securing funding through government COVID-19 financial packages, with over 40% sounding out the different options as this report went to release.
  • The three-stage framework proposed by OGUK covers: immediate needs, industry recovery and accelerating to a net zero future. It includes recommendations to improve current COVID-19 financial packages, retaining a sector leading and progressive regulatory, fiscal and policy framework, as well as the development of a sector deal which will support the supply chain and accelerate the UK towards a net zero future.

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

“Like so many industries, our members have been profoundly impacted by COVID-19.

“With historic low oil and gas prices coming so soon after one of the most severe downturns our sector has experienced, these findings confirm an especially bleak outlook for the UK’s oil and gas industry. If the UK is to maintain its supply of domestic energy, protect jobs and build the critical infrastructure it needs to transition to a net zero future, ours is an industry worth fighting for.

“It’s why OGUK is today outlining a three-stage framework with a range of measures for governments and regulators to support industry now, stimulate a recovery and accelerate the transition to a net zero future.”

The leading representative body for the UK’s offshore oil and gas sector has warned the latest oil price developments could fundamentally undermine the ability of the industry to recover and serve the energy transition.

It comes as US crude oil prices continued to drop this evening while the international benchmark Brent crude traded at just over $25 a barrel. While WTI is a localised trading market in the US, OGUK this evening warned it remains concerned about the continued low prices of Brent crude.

OGUK Chief Executive Deirdre Michie said:

“While we have anticipated continued pressures on oil markets, there’s no getting away from the fact that this situation is a body blow for an industry already creaking under the strains of the impact of COVID-19 and sustained low commodity prices.

“The dynamics of this US market are different from those directly driving UK produced Brent, but we will not escape the impact. Ours is not just a trading market; every penny lost spells more uncertainty over jobs, our contribution to public services and to the just transition we all want to see. OGUK will be pressing the case for a COVID-19 resilience package to governments in the coming days which will focus on protecting the supply chain, jobs and our ability to continue to reposition ourselves for the future.”

 

 

As we know, the NHS and care providers across the country are in working in very uncertain times and facing unprecedented challenges due to the COVID-19 pandemic. This is coupled with the ongoing demand for PPE equipment to protect not only key workers and staff, but hospital patients and care home residents.

PPE is widely used across many industries in the UK, including the UK offshore oil and gas sector. We’re supporting a grassroots campaign with TSG Marine to encourage everyone to check what they have and donate it or lend it to those that need it the most; our heroic key workers on the frontline, putting themselves at risk to keep us safe.

We know many of you are already doing this with spare or legacy inventory. We hope you can support and share the campaign, and let us know if you are donating or have already donated PPE to local NHS boards and trusts, care homes and charities.

Whether its face masks, gloves, chemical suits or shoe covers, do let us know if you can help and help spread the word.

We know of companies within the oil and gas industry already donating spare PPE equipment that they are not using and would ask that others do the same and get behind this great cause if possible. Equipment such as facemasks, goggle or other masks, are widely needed by healthcare workers across the UK and would be greatly appreciated. Other items including chemical protection suits, paper coveralls, overshoes and contact safety gloves may also be helpful to those putting their own health at risk for the good of others.

If you can share any good examples or contributions that we can highlight, we can promote positive stories of how this industry is supporting those on the frontline. Please send these to [email protected].

The government has an updated statement on appropriate PPE so it’s worth checking the latest information here.

Pass on the PPE #passontheppe

More than 250 people have signed up to attend OGUK’s first-ever Industry Insights webinar for young professionals as the sector continues to provide a secure and affordable energy supply in the face of economic challenges.

The free webinar on April 22 offers a virtual opportunity to network and learn from industry leaders amidst unprecedented times due to a turbulent oil price and the COVID-19 pandemic.

A panel session will be hosted by Emily Taylor, OGUK’s continuous improvement manager, and will include speakers Deirdre Michie, OGUK’s chief executive, Jennifer Craw, chief executive of Opportunity North East (ONE), as well as Ashley Thomas from BP, OGUK’s Apprentice of the Year 2019.

Ross Dornan, OGUK’s market intelligence manager, will outline the current market conditions and give an overview of the industry landscape.

Commenting, he said: “It remains uncertain as to how the market is going to develop in the coming months as the coronavirus impact evolves each day. However, the people coming into our industry now are among the most important voices in shaping its future—and this is particularly key as we transition to a low carbon economy.

“This free webinar is a great opportunity to connect and get involved. It will allow people to develop their understanding of the current landscape, whilst ensuring their voices are heard when they are needed more than ever.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate ensuring young professionals can make a valuable contribution on our journey to becoming a net zero basin.”

The webinar follows the success of two Industry Insight events hosted by OGUK over the past year, including one focused solely on interns which was attended by over 100 young people with placements in operator, service and supply chain companies.

For more information and to register for the webinar please visit here.

 

OGUK, the leading representative body for the UK’s offshore oil and gas industry has teamed up with Step Change in Safety, the industry’s recognised safety organisation to offer support to the tens of thousands of workers keeping the UK running with secure and affordable energy during the coronavirus pandemic.

A new dedicated online hubs with guidance, videos and FAQs has been launched to provide everyone involved in the industry, and their families, with a “one stop shop” to address concerns on the prevention and protection against coronavirus in around 150 manned installations across the UK Continental Shelf (UKCS) and the substantial onshore workforce. Both organisations are working jointly to provide the most accurate information about topics and services such as offshore helicopter travel, health screening and training re-certification. It is available on Step Change in Safety and OGUK websites

In a joint statement published today, OGUK Chief Executive Deirdre Michie and Step Change in Safety Executive Director Steve Rae said:

“Our industry workforce plays a critical role in providing the energy and products the UK needs to power hospitals and make essential trips. Our message to our people is clear: you are doing an essential job in keeping us safe and warm, and we need to work together to keep you safe at work.

“Working tirelessly with governments, regulators and our industry we have secured clear arrangements on the safe removal of suspected cases from offshore, on establishing our workforce as key workers so they can continue to send their children to school if they have to and to continue to travel to work and on temperature testing as standard at all heliports.

“We continue to work with governments to make the case for testing of offshore personnel, and now, more than ever before, we will be supporting our workforce to feel and be safe as they carry out their essential work. It’s why today we are combining strengths in launching a dedicated online hub with guidance, videos and FAQs. We will continue to encourage the participation of the unions, the regulator, and our members to work together in circumstances that are completely unprecedented.”

OGUK comments on the merger of Chrysaor with Premier Oil

Following the news of the merger of Chrysaor with Premier Oil today, OGUK’s chief executive Deirdre Michie, said:

“Chrysaor and Premier Oil are great stewards, contributors and champions of this industry so this investment is encouraging news for the UK Continental Shelf. 

“With companies increasingly looking to see how they can work together to meet as much of our oil and gas demand from domestic resources instead of imports, this merger will help to stimulate further activity for our hard-pressed supply chain and contribute to an inclusive transition towards a low carbon economy.”

Nominations opportunity to highlight true North Sea spirit

The leading representative body for the UK’s offshore oil and gas industry has hailed the grit and resilience of the thousands of people working for the critical sector as it opened nominations for its annual awards.

Throughout the coronavirus pandemic, key workers both on and offshore continued to safely operate installations around the UK Continental Shelf, supporting the UK’s security of energy supply.  While seeking to deal with the economic fall-out of the  low oil and gas prices brought about by the pandemic, the industry continued with its work on Roadmap 2035, making  major commitments to halve emissions from the production of oil and gas in the next decade as well as progressing its plans to support carbon cutting solutions including carbon capture usage and storage and hydrogen.

Industry body OGUK will hold its annual awards, sponsored by Shell,  on 10 December this year, with hopes that its virtual format will make it more accessible not only to the industry workforce, but to family, friends and anyone with an interest in how the sector is shaping up as part of a low carbon future.

Commenting as nominations open, OGUK chief executive Deirdre Michie said:

“This has been extraordinary year in which our industry, only just beginning to recover from the last downturn, finds itself facing more dark days ahead. Yet, in spite of the personal and professional challenges the coronavirus pandemic brought on all industries, companies and people, our key workers ensured our critical industry never stopped operating.

“This is the North Sea spirit and grit we are known for, working in tough circumstances to provide affordable energy to millions across the UK. It is this same resilience which should give confidence that our changing industry is and will continue to step forward by cutting its emissions and in using its skills and expertise to develop the solutions needed to meet our country’s climate ambitions. We remain on track to deliver our ambitious plan to realise the full potential of our sector through the energy transition, Roadmap 2035.

“With a new virtual format, OGUK’s annual awards are an opportunity to tell our positive story to more people than ever before. Whether it’s family, friends, or you  want to know more about how our industry is changing andabout the people who make this sector the amazing industry that it is, we hope everyone will enjoy taking part in acknowledging and celebrating inspirational and impressive contributions.”

Nominations close on 2 October and companies are being encouraged to champion talent and innovation, with nine awards up for grabs this year.

Shell UK upstream vice president Steve Phimister said:

“2020 has thrown down challenge after challenge for the sector. But our people have stepped up and met it, maintaining the critical energy supplies that the UK relies on, as well as starting to address the all-important subject of Energy Transition. We can all be proud of our huge efforts right across the industry, and I look forward to seeing our most important asset – our people – celebrated at these awards.”

Ends

Notes to Editors:

  1. Categories include:
Individual Awards

 

  • Award for Apprentice of the Year
  • Award for Graduate of the Year
  • Award for Mentor of the Year
Company Awards

 

  • Award for Excellence in Decommissioning
  • Award for Energy Transition
  • Award for Diversity and Inclusion
  • Award for Workforce Engagement
  • Award for Business Innovation
    – SME and Large Enterprise
  1. Further information about OGUK’s Annual Awards can be found here:

 

Issued by the Communications Team, OGUK.  Contact Communications Manager Natalie Coupar, 07531407007 / [email protected],uk

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

OGUK Industry Insights webinar inspires next generation on route to net zero

More than 200 people joined OGUK’s Industry Insights webinar for young professionals today (Thursday, September 17) to hear how the sector is working to advance new technologies on the route to net zero. 

The free event, sponsored by Halliburton, centred around the skills required for the future in reaching net zero carbon emissions by 2050 in the UK and by 2045 in Scotland, and how important the next generation of talent will be in realising the full potential of the UK’s oil and gas industry through the energy transition.

The audience also heard from a panel of speakers including Ryan Fernando, workshop supervisor at Aker Solutions (2018 winner of OGUK apprentice of the year), Martin White, vice president at Halliburton, Alix Thom, workforce engagement and skills manager at OGUK, Francesca Bell, business advisor at OGUK, and Paul de Leeuw, director of the RGU Energy Transition Institute, Robert Gordon University.

The webinar was chaired by OGUK’s continuous improvement manager, Emily Taylor, who said:

“We are delighted with the success of this third virtual Industry Insights event, which centred around skills for the future, taking a deep dive into Geosciences before looking at the entire industry. The session also gave the audience insights into the energy transition and allowed them to voice their personal experiences of the industry.

“Through the energy transition, we have a once in a lifetime opportunity to show how we can build a more diverse and lower carbon energy mix in a way that embraces the skills and talents of our people, and young professionals will have a huge part to play in helping drive that forward.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate about ensuring everyone can make a valuable contribution on our journey to becoming a net zero basin.”

The webinar follows the success of three Industry Insight events hosted by OGUK over the past year, including one focused solely on interns which was attended by over 100 young people with placements in operator, service and supply chain companies.

OGUK’s response to Climate Assembly UK report

OGUK has welcomed the final report released by Climate Assembly UK today (Thursday, September 10), which states that the country’s path to net zero must be underpinned by education, choice, fairness and political consensus.

OGUK is already discussing a transformational North Sea Transition Deal with the UK Government, which will also set out how the country’s oil and gas industry will play its part in supporting a green recovery that attracts investment, jobs and boosts the supply chain.

Commenting, OGUK’s chief executive Deirdre Michie said:

“The Climate Assembly UK report is welcome and picks up on a number of areas that we as an industry are already driving forward in support of the country’s climate ambitions.

“We already know the powerful combination of this sector’s skills, capabilities and infrastructure are advancing new technologies on the road to net zero, with some key projects already underway. At the same time, our changing industry can help to keep costs low for households, support highly skilled jobs while also developing cleaner energy for the future.

“Industry’s Roadmap 2035 offers a sensible blueprint with a progressive net zero agenda, supporting energy communities to embrace new opportunities – including hydrogen. Despite the pressures experienced by the sector, a number of identified actions have already been delivered, including our commitment to halve emissions from the operational production of oil and gas over the next decade.

“Through the energy transition, we have a once in a lifetime opportunity to show how we, as an oil and gas producing country, can successfully build a more diverse and lower carbon energy mix in a way that embraces the skills and talents of our people, provides secure and affordable energy to all, and unlocks thriving energy communities both now and in future.”

Government licensing review is opportunity to shine a light on changing industry

The leading representative body for the UK’s offshore oil and gas industry has embraced a UK government review into future licensing rounds as an opportunity to shine a light on how the sector is changing to support the country’s climate ambitions while still ensuring it contributes to the UK’s ongoing security of energy supply.

Speaking in response to the announced review, OGUK Chief Executive Deirdre Michie OBE called for a constructive and open discussion about how the UK will continue to meet its energy needs while delivering consumer affordability and jobs, optimising indigenous energy sources in a way that ensures the UK doesn’t offshore its emissions to other countries.
The industry is currently working with the UK Government on a North Sea Transition Deal which will look to harness the full potential of the sector in developing cleaner energy solutions including carbon capture usage and storage and hydrogen.

The announcement comes as the UK oil and gas industry marks a year since it published its response to climate commitments, Roadmap 2035, which identified over sixty actions required to support a fair and managed transition to a lower carbon future.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The UK offshore oil and gas industry has the essential expertise to help the UK meet its climate ambitions by 2050 while at the same time providing affordable energy for households and families, supporting jobs, and creating exciting energy jobs of the future.

“This review is an opportunity to shine a light on how our industry is changing. With commitments to halve emissions in the next decade and committed investment in exciting low carbon solutions, the changing UK oil and gas industry is stepping up to the climate change challenge.

“Throughout the coronavirus pandemic we have not stopped working, and our people have continued to work in difficult circumstances to meet as much of the UK’s oil and gas needs from domestic resources. The reality is that oil and gas will continue to be part of a diverse energy mix for years to come.

“We now need a constructive and open conversation about how our oil and gas producing country can transition fairly to a lower carbon future. Working with governments, regulators and through sensible debate, we can protect jobs and affordability while being ultimately accountable for the emissions associated with the oil and gas we use.”


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Roadmap 2035 on course despite industry challenges

Over eight actions identified by the UK’s offshore oil and gas industry as essential if it is to realise a successful future in a lower carbon future have already been delivered, with a further 20 underway, despite the pressures heaped on the sector by the coronavirus pandemic.

Progress against an ambitious industry roadmap was confirmed by representative body OGUK, noting it as further evidence that the UK sector is embracing change.

Roadmap 2035: a blueprint for net zero, was one of the first UK industry responses to government commitments to achieve net zero carbon emissions by 2050 in the UK and 2045 in Scotland. Published at Offshore Europe in 2019, the substantive document commits the sector to a range of actions to help meet the UK’s energy needs, support jobs, develop new technologies, cut emissions, and expand export opportunities.

The challenges and opportunities facing the sector a year on from the Roadmap will be the focus of an industry webinar, sponsored by Deloitte, to be hosted by OGUK on Tuesday 8 September 2020.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The UK offshore oil and gas industry has the essential expertise to help the UK meet its climate ambitions by 2050 while at the same time providing affordable energy for households and families, supporting jobs, and creating exciting energy jobs of the future.

“Despite the challenges heaped on the sector by the coronavirus pandemic and low oil and gas prices, a number of actions of Roadmap 2035 have already been delivered and many more are underway. This progress is testament to the fact that our industry is changing and is committed to positive change for the long term.

“As we look to further challenges ahead, support of government and regulators remains critical if we are to be able to realise our full potential through the energy transition. The North Sea Transition Deal can be a catalyst in delivering Roadmap 2035 and supporting the green recovery, as well as specific recognition from governments and politicians of the positive role we can play in our economy and society.”

Graham Hollis, office senior partner for Deloitte in Aberdeen commented:

“There is no doubt that the sector is under immense pressure as businesses grapple with the challenges posed by the coronavirus pandemic as well as the fallout from the Saudi-Russia price war. Despite this, it is promising to see the strong progress being made and the sector’s willingness to enact positive change while continuing its important role in maintaining jobs and affordable energy.

“It is crucial that this momentum is maintained, and businesses must continue to innovate and collaborate to deliver on the ambitions of Roadmap 2035 and ensure the country’s future, sustainable energy mix.”

OGUK response to OGA’s Decommissioning Cost Estimate report

Commenting on the OGA’s Decommissioning Cost Estimate report published today (Wednesday, August 19), Joe Leask, decommissioning manager at OGUK, said:

“The OGA’s report on decommissioning cost trends for the UK industry shows the challenges we face.

“While significant progress has been made over the years, new ways of working will be critical to ensure we stimulate activity in the supply chain, keep skills and infrastructure in the UK, and meet our savings target. OGUK continues to work with industry, government and regulators to understand how we can bring innovative ideas to life, such as multi-operator campaigns, which ultimately will help position the UK sector as a global leader in decommissioning.”

 

 

OGUK launches new SME forum to support smaller businesses under pressure

A new forum dedicated to helping small and medium-sized businesses navigate the downturn has been launched by OGUK as it continues to help the sector stimulate a recovery.

The leading representative body’s Continuous Improvement team is launching a new SME forum this month amid concern that a growing number of smaller companies may not survive the current economic pressures and the fallout from the Covid-19 pandemic.

As part of industry’s Efficiency Task Force, which aims to promote a positive and progressive business culture, the SME forum will give participants access to OGUK’s existing business support guidance and initiatives, as well as an opportunity to shape the agenda.

The forum will provide an opportunity to identify and address issues in the SME community, and offer the chance for participants to collectively develop solutions which work for them and support individual needs.

Emily Taylor, OGUK’s continuous improvement manager, said:

“With the oil and gas industry entering yet another downturn so soon after the last, and as we work towards the energy transition, we’re particularly worried about the impact this will have on our small businesses.  The SME forum will bring the community together to create a shared voice and identify business opportunities across the sector.

“The new forum will deliver a platform to share and engage, as well as showcase the work OGUK is doing to support smaller businesses and stimulate a recovery. This will give our members the chance to keep their finger on the pulse and offer solutions to challenges industry is facing.”

Items on the agenda for the first forum on August 18 include an update on Brexit and its impact on the industry, plus input from OGUK’s external affairs team on political developments and their impact on the oil and gas supply chain.

The new forum will be chaired by Catriona Stevenson, business manager at Ecosse IP Ltd, who commented:

“Working for a small business and having founded an oil and gas networking group during the last downturn has made me very aware of the struggles that these companies face, and now more than ever I feel they need our support. 

“As we move into the energy transition and with Brexit upon us, I feel that the SME community need to come together with one voice to be heard and be better supported across the sector.”

To join the forum, which takes place on August 18, please contact Emily Taylor, OGUK’s continuous improvement manager, at [email protected]

Industry body reveals continued fall in covid-19 offshore cases ahead of upcoming event

 

The leading representative body for the UK’s offshore oil and gas sector will reflect on lessons learnt from the coronavirus pandemic as it reveals suspected covid-19 cases offshore continue to decrease due to “effective industry-wide measures” to protect the sector.

OGUK will host a free webinar ‘Covid-19: A retrospective and look ahead’ to provide insight into the industry’s response, where a panel of experts will outline their experiences of the pandemic and its impact.

The event, to be held on Thursday, July 30, from 2pm to 3.30pm, will be hosted by Trevor Stapleton, OGUK’s HSE director.

It comes as the industry body confirms that the number of Category C flights has continued to decrease and was made up of just 0.03% of total persons on board (POB) offshore installations for the week ending July 26 – allowing the sector to continue providing secure and affordable energy in support of the energy transition.

Trevor Stapleton, OGUK’s health, safety and environment director, said: “The reduction in c-med flights is a recognition of both industry-imposed barriers and UK measures being effective.

“As we move into the recovery phase – which will mean increasing POB offshore – a  missing piece of the jigsaw is still  asymptomatic testing for our offshore workforce,  carried out using the NHS UK test centres and we continue to make the case for this with both the UK and Scottish governments.

“It is worth noting that a Cat-C passenger is only symptomatic of Covid-19 and may not be a positive case, therefore the percentage figure is the worst-case scenario.

“However, now is not the time for us to become complacent and we will be paying close attention to the figures going forward.

“The coronavirus pandemic is of a scale and severity which none of us have seen before, but we shouldn’t take for granted the true value of the UK’s offshore oil and gas industry’s culture of safety.”

As well as a look back on how the industry has responded to the crisis, the event will also look ahead to the next six months to consider what steps could be taken in terms of navigating  the operational impact of COVID-19, preparations for winter flu season and the foreseen impacts.

The webinar is open to all industries, companies and individuals, where attendees will have the opportunity to learn more about the emergency preparedness and response in the UK’s offshore oil and gas industry, hear first-hand insights from professionals at the frontline of coordinating an industry-wide response.

Mr Stapleton added: “The open and continuous sharing of our experiences within our industry, with other sectors and with government will be critical as we look to the future. While we must now start working on how to bring this essential industry back on its feet, we must also take the time to learn and reflect.

“The upcoming webinar will give an opportunity to understand potential future risks and how this could impact business and allow us to further improve workforce safety and engagement.”

The event – where delegates will also learn about the challenges and lessons in protecting a diverse workforce in both on and offshore environments – will also include comment from Natalie Coupar, communications manager, OGUK, Chris Flint, HSE director Energy Division, Health and Safety Executive, Matt Rhodes, director UK & Turkmenistan Oil and Gas, Bristow Helicopters Ltd, and Mike Killeen ,VP Operations at Serica Energy.

For more information and to register for the webinar please visit here.

 

 

OGUK board appoints leading voice as new vice co-chair

The leading representative body for the UK oil and gas industry, OGUK, has appointed a new vice co-chair to its board as the sector makes moves to recover from the impact of the coronavirus pandemic and low oil and gas prices.

Sian Lloyd Rees, UK country manager and SVP of customer management at Aker Solutions, has been appointed as OGUK’s new contractor vice co-chair.

With over 25 years’ experience, Sian Lloyd Rees joined Aker Solutions following several key leadership roles in blue chip and start-up companies and joined the board of OGUK in 2018.

Her career began in the oil and gas industry at Stena Offshore and Halliburton before progressing into the IT industry with positions at Petrocosm and Oracle. In her current role, Sian is country manager for the UK and leads the customer management function for Europe and Africa as senior vice president.

Commenting on her position, Sian Lloyd Rees said:

“I’m delighted to assume this role at a time when the supply chain needs additional focus and support, for both the challenges we face today and the transition of our long established skills and technology to underpin the ongoing energy transition.”

OGUK’s chief executive Deirdre Michie said:

“Our talented and diverse supply chain is essential for the UK’s energy needs and in developing solutions to meet our climate ambitions. I’m really pleased to welcome Sian as OGUK’s vice co-chair as she brings a wealth of knowledge and experience to the board – particularly in the digital sphere.

“The ongoing challenges we face from the coronavirus pandemic and low oil and gas prices continue to put pressure across the whole of the UK’s offshore oil and gas industry. Having Sian in this role will be key to ensuring we steer a path that supports the supply chain as we seek to protect the sector, spur its recovery and support an accelerated transition to net zero.”

Oil and gas industry welcomes job support and underlines need to remain focused on delivering successful transition

The UK’s offshore oil and gas industry has today welcomed the Chancellor’s announcement of support for employers, including the Job Retention Bonus and moves to support more traineeships and jobs for young people.

The leading representative body for the sector OGUK said that the UK faces a once-in-a-lifetime opportunity to deliver moves to a lower carbon and more diverse energy mix, reinforcing the importance of the sector deal currently being discussed with the UK Government.

OGUK Chief Executive Deirdre Michie said:

“The Chancellor’s announcement provides welcome support for companies in the UK’s offshore oil and gas industry affected by the immediate impact of the coronavirus pandemic. The continued volatility facing our sector however underlines the need for long-term and targeted support. In devastating circumstances the UK now faces a once-in-a-lifetime opportunity to realise an energy transition which delivers affordable energy, supports jobs and enables our industry to put our skills to work to help cut emissions.

“Industry’s Roadmap 2035 offers a sensible blueprint which keeps net zero firmly on the agenda while also supporting energy communities to embrace new opportunities including carbon capture and hydrogen.

“Today’s funding for Direct Air Capture of CO2  is a welcome step in the right direction as part of the wider development and roll-out of Carbon Capture and Storage, and we look forward to continuing our work with government to realise the full potential of our sector in delivering the UK’s energy future.”

 

Don’t leave energy communities behind in green recovery plans

The leading representative for the UK’s offshore oil and gas industry has welcomed the Committee on Climate Change report to parliament today, calling for energy communities like the North East of Scotland and the East of England to be put at the heart of plans to transition to a lower carbon future.

OGUK recently set out industry commitments to halve operational emissions in the next decade, with a target of 90 percent reductions by 2040. The sector was one of the first to respond to the Committee on Climate Change report in May last year which called for governments to reach net zero emissions by 2050 in the UK and 2045 in Scotland, with its Roadmap 2035: a blueprint for net zero.

With formal talks now underway on a transformational sector deal, the industry body today said a green recovery is an opportunity to accelerate critical solutions including carbon capture usage and storage, and hydrogen, while the sector should continue to meet as much of the UK’s oil and gas needs from domestic resources.

OGUK Chief Executive Deirdre Michie said:

“The Committee on Climate Change report offers a measured and thoughtful view on how we can stimulate a truly fair transition towards a lower carbon future.

“We can’t afford for communities like the North East of Scotland or the East of England to be left behind. We urgently need a green recovery which enables our industry to meet as much of the UK’s oil and gas demand from domestic resources while developing the critical solutions which will help reduce emissions in other industries and wider society. This is the fair, sustainable and inclusive transition which will allow the UK to meet its climate ambitions in a way which supports jobs, skills and energy communities.”

First virtual D&I event to highlight sector opportunities  

More than 300 people have signed up to attend OGUK’s first-ever D&I webinar to further explore opportunities to improve diversity and inclusion in what remains a challenging landscape for the UK oil and gas industry.

The free webinar ‘An opportunity in the disruption’ offers a virtual chance to network and hear first-hand from industry’s D&I Task Group as they reflect on the current situation and seek out prospects to build on the work that has been achieved to date – shaping a stronger, diverse and inclusive culture across the sector.

The event, to be held on Thursday, May 28, from 2.30pm to 3.30pm, will be hosted by Craig Shanaghey, D&I Task Group chair and president operations services (Europe & Africa) at Wood, who will give an overview of the current D&I landscape and the cross-industry approach to driving greater diversity and inclusion. Karen Blanc, operations director and AXIS Network chair will be moderating throughout the session.

The event will also include comment from D&I Task Group members Findlay Anderson, vice president and general counsel oilfield equipment at Baker Hughes, Ollie Folayan, co-founder of AFBE-UK, Mavis Anagboso, business and strategy director at Kalor Consultancy, and Susan Brimmer, people and organisation development manager for the OGTC.

Craig Shanaghey, president, operations services (Europe & Africa) at Wood and D&I Task Group chair, said:

“Once again, the energy industry is going through an important period of transition. To make the most of the opportunities presented, we need to develop a diverse workforce with different perspectives and ideas. Importantly, we need to make sure that we access 100% of the talent within our businesses and unlock the potential that everyone has to offer.

“This free webinar is a great opportunity to connect and get involved. It will allow people to share experiences and understanding of the current D&I landscape, whilst ensuring their voices are heard.

“It is that diversity of thought, brought together in an inclusive and empowering context that will allow us to thrive in a changing environment.”

There will be the opportunity for questions and the speakers will also be offering their insight into how the industry can unlock its full potential to ultimately meet the sector’s net zero ambitions, and how new ideas and technology will be key to shaping this future.

For more information and to register for the webinar please visit here.

OGUK response to Chancellor’s announcement to extend furlough scheme

Commenting on the Chancellor’s announcement today that that furlough scheme will be extended for four months until October, OGUK’s chief executive Deirdre Michie said:

“OGUK welcomes the Chancellor’s announcement today to extend the furlough scheme until October this year.

“Across the country, this industry has been deeply impacted by low oil and gas prices as well as COVID-19 and we will continue to see the compounding effects on people’s jobs and livelihoods.

“We are now working to gather details of what this announcement will mean for our members post-July, and how we can support them through what remains an undoubtedly difficult period.

“The latest announcement is recognition of how long some sectors will take to recover from this crisis and the support they will need – the collapse in commodity prices means the oil and gas industry’s recovery will inevitably be prolonged.

“The added flexibility of the scheme is welcome as it provides a vital lifeline to thousands of workers in our industry whose skills and capabilities we need now and in the future as we transition to net zero.”

Industry restates call to support recovery framework as it warns net zero role is not a given

The leading representative body for the UK’s offshore oil and gas industry has repeated its calls to accelerate moves to net zero as part of efforts to support the sector’s recovery.

Speaking in response to advice issued to governments by the Committee on Climate Change today, and confirmation by Prime Minister Boris Johnson that the UK Government is working with OGUK on a sector deal, the body’s chief executive today said the sector remains committed to a three-stage framework published earlier this month.

The framework sets out specific steps to support the sector during the immediate coronavirus pandemic, to aide its recovery to meet as much of the UK’s oil and gas needs from domestic resources, and ultimately to deploy the sector’s skills, capabilities and infrastructure to develop the critical net zero infrastructure of the future.

Commenting, OGUK Chief Executive Deirdre Michie said:

“The UK’s offshore oil and gas industry is under enormous pressure and we’re already seeing the direct impact of this on companies, jobs and the communities we work in up and down the country.

“This is an industry which can play a critical role in the UK’s transition to net zero, but it is not a given. Utilising our skilled people, capabilities and infrastructure means we can meet as much of the UK’s oil and gas needs from domestic resources while also stepping up to support the delivery of key low carbon technologies including CCUS at scale.

“We’ve welcomed the support from both the UK and the Scottish Government and can confirm we are working on a sector deal proposal. We need to keep working together with governments, regulators and indeed anyone interested in a fair, inclusive, and sustainable transition to deliver what is needed for the sector and the country.”

Call for three-stage framework to help head off thousands of job losses in oil and gas industry

The leading representative body for the UK’s offshore oil and gas industry has warned that up to 30,000 jobs could be lost in the sector as it called for the transition to net zero to be put at the heart of recovery plans.

The stark warning comes as companies in the sector report an increasingly grim outlook as they deal with the fallout from the coronavirus pandemic and a 20 year low in oil prices and a 14 year low for gas.

The industry is expected to see a dramatic reduction in revenue, sparking concerns about the ability of some companies to survive a downturn that is likely to be even more severe than the one in 2015 which the sector is just emerging from.

The figures are published in a report issued today by OGUK following a survey of its membership.

The Business Outlook: Activity and Supply Chain report, calls for urgent action to protect energy security, jobs, and energy regions. OGUK has asked governments and regulators to support a three-stage framework to support the sector in dealing with the immediate crisis while positioning it to play a key role in the UK’s transition to a net zero future.

The report notes:

  • The average oil price for March was $22.5/barrel, a 65% decrease compared to January 2020. This trend has continued in April with Brent price falling to its’ lowest point for 20 years to $16/bbl on April 22nd.
  • For the first time, WTI became negative in the US following an over-capacity and lack of local storage. (WTI is a crucial regional benchmark for North America).
  • There is now a stark contrast in sentiment compared to the beginning of the year with all E&P companies and 93% of supply chain firms reporting a worse or significantly worse outlook for 2020.
  • OGUK anticipate that CAPEX could fall to between £3.5-4 billion, the lowest investment since 2000 and amongst the lowest levels of investment since the early 1970s. OGUK also anticipates that OPEX will be reduced by 10-20%, compared to expectations at the start of the year, to around £6-7billion
  • OGUK also warns that drilling activity this year could be down by 50% on 2019 levels – pushing activity levels to record lows.
  • The position of many areas of the supply chain is increasingly fragile. Revenues and margins across the supply chain are expected to fall by 20-30 per cent, on top of reductions seen during the last downturn. The impact on businesses will vary depending on their position in the industry, with some areas of the supply chain expected to see greater reductions.
  • Although there is still a significant degree of uncertainty in estimates affecting the next 12-18 months, based on company feedback, OGUK currently anticipates that the level of direct and indirect jobs supported by the industry could contract by up to 30,000 during this period.
  • The survey feedback also indicates that as part of their response to the crisis more than three-quarters of supply chain companies plan to increase their non-oil and gas work this year.
  • Around 30% of respondents to the recent business survey identified that they were successful in securing funding through government COVID-19 financial packages, with over 40% sounding out the different options as this report went to release.
  • The three-stage framework proposed by OGUK covers: immediate needs, industry recovery and accelerating to a net zero future. It includes recommendations to improve current COVID-19 financial packages, retaining a sector leading and progressive regulatory, fiscal and policy framework, as well as the development of a sector deal which will support the supply chain and accelerate the UK towards a net zero future.

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

“Like so many industries, our members have been profoundly impacted by COVID-19.

“With historic low oil and gas prices coming so soon after one of the most severe downturns our sector has experienced, these findings confirm an especially bleak outlook for the UK’s oil and gas industry. If the UK is to maintain its supply of domestic energy, protect jobs and build the critical infrastructure it needs to transition to a net zero future, ours is an industry worth fighting for.

“It’s why OGUK is today outlining a three-stage framework with a range of measures for governments and regulators to support industry now, stimulate a recovery and accelerate the transition to a net zero future.”

Oil price drop is body blow for industry already creaking under COVID-19 pressure

The leading representative body for the UK’s offshore oil and gas sector has warned the latest oil price developments could fundamentally undermine the ability of the industry to recover and serve the energy transition.

It comes as US crude oil prices continued to drop this evening while the international benchmark Brent crude traded at just over $25 a barrel. While WTI is a localised trading market in the US, OGUK this evening warned it remains concerned about the continued low prices of Brent crude.

OGUK Chief Executive Deirdre Michie said:

“While we have anticipated continued pressures on oil markets, there’s no getting away from the fact that this situation is a body blow for an industry already creaking under the strains of the impact of COVID-19 and sustained low commodity prices.

“The dynamics of this US market are different from those directly driving UK produced Brent, but we will not escape the impact. Ours is not just a trading market; every penny lost spells more uncertainty over jobs, our contribution to public services and to the just transition we all want to see. OGUK will be pressing the case for a COVID-19 resilience package to governments in the coming days which will focus on protecting the supply chain, jobs and our ability to continue to reposition ourselves for the future.”

 

Blog: Pass on the PPE

 

As we know, the NHS and care providers across the country are in working in very uncertain times and facing unprecedented challenges due to the COVID-19 pandemic. This is coupled with the ongoing demand for PPE equipment to protect not only key workers and staff, but hospital patients and care home residents.

PPE is widely used across many industries in the UK, including the UK offshore oil and gas sector. We’re supporting a grassroots campaign with TSG Marine to encourage everyone to check what they have and donate it or lend it to those that need it the most; our heroic key workers on the frontline, putting themselves at risk to keep us safe.

We know many of you are already doing this with spare or legacy inventory. We hope you can support and share the campaign, and let us know if you are donating or have already donated PPE to local NHS boards and trusts, care homes and charities.

Whether its face masks, gloves, chemical suits or shoe covers, do let us know if you can help and help spread the word.

We know of companies within the oil and gas industry already donating spare PPE equipment that they are not using and would ask that others do the same and get behind this great cause if possible. Equipment such as facemasks, goggle or other masks, are widely needed by healthcare workers across the UK and would be greatly appreciated. Other items including chemical protection suits, paper coveralls, overshoes and contact safety gloves may also be helpful to those putting their own health at risk for the good of others.

If you can share any good examples or contributions that we can highlight, we can promote positive stories of how this industry is supporting those on the frontline. Please send these to [email protected].

The government has an updated statement on appropriate PPE so it’s worth checking the latest information here.

Pass on the PPE #passontheppe

First-ever Industry Insights webinar to inspire next generation

More than 250 people have signed up to attend OGUK’s first-ever Industry Insights webinar for young professionals as the sector continues to provide a secure and affordable energy supply in the face of economic challenges.

The free webinar on April 22 offers a virtual opportunity to network and learn from industry leaders amidst unprecedented times due to a turbulent oil price and the COVID-19 pandemic.

A panel session will be hosted by Emily Taylor, OGUK’s continuous improvement manager, and will include speakers Deirdre Michie, OGUK’s chief executive, Jennifer Craw, chief executive of Opportunity North East (ONE), as well as Ashley Thomas from BP, OGUK’s Apprentice of the Year 2019.

Ross Dornan, OGUK’s market intelligence manager, will outline the current market conditions and give an overview of the industry landscape.

Commenting, he said: “It remains uncertain as to how the market is going to develop in the coming months as the coronavirus impact evolves each day. However, the people coming into our industry now are among the most important voices in shaping its future—and this is particularly key as we transition to a low carbon economy.

“This free webinar is a great opportunity to connect and get involved. It will allow people to develop their understanding of the current landscape, whilst ensuring their voices are heard when they are needed more than ever.

“Understanding how we can meet the ambitions outlined in Roadmap 2035 will require fresh thinking and OGUK is passionate ensuring young professionals can make a valuable contribution on our journey to becoming a net zero basin.”

The webinar follows the success of two Industry Insight events hosted by OGUK over the past year, including one focused solely on interns which was attended by over 100 young people with placements in operator, service and supply chain companies.

For more information and to register for the webinar please visit here.

 

Industry offers support to critical workers keeping UK running

OGUK, the leading representative body for the UK’s offshore oil and gas industry has teamed up with Step Change in Safety, the industry’s recognised safety organisation to offer support to the tens of thousands of workers keeping the UK running with secure and affordable energy during the coronavirus pandemic.

A new dedicated online hubs with guidance, videos and FAQs has been launched to provide everyone involved in the industry, and their families, with a “one stop shop” to address concerns on the prevention and protection against coronavirus in around 150 manned installations across the UK Continental Shelf (UKCS) and the substantial onshore workforce. Both organisations are working jointly to provide the most accurate information about topics and services such as offshore helicopter travel, health screening and training re-certification. It is available on Step Change in Safety and OGUK websites

In a joint statement published today, OGUK Chief Executive Deirdre Michie and Step Change in Safety Executive Director Steve Rae said:

“Our industry workforce plays a critical role in providing the energy and products the UK needs to power hospitals and make essential trips. Our message to our people is clear: you are doing an essential job in keeping us safe and warm, and we need to work together to keep you safe at work.

“Working tirelessly with governments, regulators and our industry we have secured clear arrangements on the safe removal of suspected cases from offshore, on establishing our workforce as key workers so they can continue to send their children to school if they have to and to continue to travel to work and on temperature testing as standard at all heliports.

“We continue to work with governments to make the case for testing of offshore personnel, and now, more than ever before, we will be supporting our workforce to feel and be safe as they carry out their essential work. It’s why today we are combining strengths in launching a dedicated online hub with guidance, videos and FAQs. We will continue to encourage the participation of the unions, the regulator, and our members to work together in circumstances that are completely unprecedented.”