The Oil and Gas Authority (OGA) aims to leverage technology to shave 50% off overall industry costs, according to its latest strategy.
The industry regulator published its technology strategy yesterday, outlining its short and long-term objectives.
The regulator aims to achieve a 30% to 50% reduction in costs from technology by the first quarter of 2021.
It’s also targeting an additional three billion barrels of oil equivalent (boe), to at least double the supply chain exports and reduce import by 15% by the start of 2021 through technology.
The OGA, headed by Andy Samuel, would transfer best practices from other industries to achieve the various KPIs, according the strategy.
It read: “Technology can help the industry achieve efficiencies in maintenance and integrity costs and improve production uptime by over 10%.
“For example, it is possible to introduce more effective inspection and corrosion-monitoring technologies, at lower cost, by transferring best practices from other industries, such as the construction and the nuclear sectors. Technologies tested in the UKCS would attract significant interest from other international offshore basins, stimulating export prospects.”
The new framework described the UKCS as the ideal “test bed” for new technology.
It added: “In addition, the UKCS represents an ideal ‘test bed’ for novel technologies given the scale of the industry, diversity of development concepts and operating conditions and the deep technical skills and experience available. It is crucial that export opportunities are targeted and promoted with the service sector.
“This should be done jointly by the OGA with DIT, Scottish Development International (SDI), Oil & Gas UK, other trade associations and the Energy Industries Council (EIC) working together with the MER UK Supply Chain, Exports and Skills Board. The OGA will ensure that efforts in oil and gas technology development are aligned and optimally support the export agenda.”
The industry has invested £1billion per year from 2010 to 2014, according to the strategy.
However, UK oil and gas research and development spend has accounted for less than 0.5% of turnover – significantly lower than Norway’s 4%. Other technology-driven industries, including automotive, aerospace and defence, typically invest between 2% and 4%, according to the framework.
Read the strategy here.
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