The head of industry body Oil and Gas UK (OGUK) has challenged companies to prove cynics wrong by showing they have learned the lessons of the downturn.
OGUK chief executive Deirdre Michie said “bold steps” had been taken over the last two years to increase efficiency and lower project costs.
But there are concerns that a recovery in crude prices could lead to a return to the wasteful ways of the past.
At OGUK’s annual conference in Aberdeen today, Ms Michie is expected to urge companies to keep their eye on the ball and focus on efficiency.
She said oil firms had cut average unit operating costs to $15 from $30 over the last two years, and that development budgets for projects had been halved since 2013.
Ms Michie said the sector was moving forward with “cautious optimism”, but acknowledged the industry’s ability to sustain improvements was “always under scrutiny”.
She said some of the improvements had been achieved through tough rate reduction, job losses, retendering and putting “severe pressure” on the supply chain.
But Ms Michie insisted efficiency and better ways of working were to thank for “up to two thirds” of the gains.
She will also use today’s event to highlight the potential for Vision 2035 to deliver a positive future for the UKCS.
She said: “Vision 2035 − conceived by the Oil and Gas Authority and shared by industry and other stakeholders − states that we can be a global energy industry, anchored in the UK, powering the nation and exporting to the world.
“This vision is underpinned by the aspiration to add an additional £290billion to the UK economy over time.
“We can deliver this by extending the life time of the basin through halving the rate of production decline and doubling the supply chain turnover – through extra domestic activity and raising the bar in terms of exports.”