Standing still is not an option when there is still a substantial oil prize worth fighting for, panelists argued at Energy Voice’s business breakfast.
More than 150 people attended the sell-out event at this year’s Offshore Technology Conference (OTC).
Panellist James Crawford, Wood Group PSN’s managing director for UK and Africa:”Standing still is not an option. We have taken a proactive approach to supporting the long-term sustainability of the industry, we have listened to what our customers need and we’re leading the way in transformation, adapting and changing not just for the present but for the future.
“Collaboration is key to success and we are working closely with partners across the sector to realise cost efficiencies by identifying innovative solutions and new opportunities to work together that we believe can become best practice for the industry in the long-term.”
James was joined by fellow panelists Paul de Leeuw, director of the Oil & Gas Institute at Robert Gordon University (RGU); Paul Latiolais, director of the Innovation and Commercialization Center at Lamar University; Jamie Stark, oil and gas partner at Burness Paull and Jeremy Cresswell, the Press and Journal’s energy editor.
More than 500 people participated in the research, which analysed the challenges and opportunities the sector faces.
66% of respondents said there would be more cuts to come in the coming year.
The chief executive of Vepica International, Derek Blackwood, attended the event.
He said: “Outlook is still mixed but some early signs of US onshore clients are ready to invest again and start new projects. Challenges and opportunities relate to bringing new ideas, methodologies and technologies to improve efficiencies.
“The business breakfast was very good. There was an excellent range of topics discussed and different perspectives.
“Company leaders need to take any and all actions internally to survive the downturn and be stronger when we come out if it.”
Despite the confidence in continued cuts, panelist Paul de Leew said the North Sea prize was still too big to neglect.
He said: “Despite the ongoing tough challenges in the North Sea, it is encouraging to see that some of this more positive sentiment is echoed by the 2016 Energy Voice survey. Almost 75% of those completing the survey expect oil prices to be in excess of $60/bbl by 2020. Combined with a sharp focus on managing cost and efficiency, as supported by 70% of those surveyed, and improved incentives for exploration, supported by over 30% of the respondents, there clearly is a recognition that the remaining prize in the North Sea is worth fighting for.
“Macroeconomics and politics created the down cycle. It will be the North Sea’s track record of resilience and innovation, which can help the region to be successful again.”
To read more about the research results click here.