With $14 billion of commitments before 2024, according to Rystad, decommissioning costs have long been a risk to and blocker in transactions, especially portfolio and corporate deals. The sector has moved a long way since early stage bilateral decommissioning agreements as sellers sought to navigate Section 29 of the Energy Act 2008 and other commercial risks in pursuit of the “clean break”.
At a time when many lenders are closing their doors to new customers, Close Brothers Asset Finance continues to provide vital financial support to SME business owners in the oil and gas sector.
Without a doubt, it’s been a hard year for the oil and gas industry. We have seen the first ever negative oil price, when on April 20, WTI plummeted to -$37 per barrel. At one point, the North Sea’s workforce fell by 40%, with more than 4,000 crew stood down due to the impact of Covid-19.
As we come to the end of a torrid year, business leaders in the north-east’s oil and gas industry breathed a collective sigh of relief on news that coronavirus vaccines look imminent. Oil prices rose around 8% globally following news that three Covid-19 vaccines both showed high efficacy and will be available next year.
I wouldn’t expect many to challenge the view that the energy sector encountered a “perfect storm” in 2020 with the Covid-19 pandemic causing global upheaval, financial markets’ nervousness and geo-political challenges.
Perhaps more than any year in living memory, it is hard not to reflect on 2020 and wish for its speedy passing - to look forward to 2021 and the hope on the horizon.
Twelve months ago, we were looking ahead with a sense of optimism to a new year and a new decade, and all that they bring. We could not envisage then what the first year of the twenties would deliver.
Take it from someone who has spent 20 years in oil and gas, “pretty much nobody has thought about it or done anything about it” when it comes to long-term financial planning.
Boris Johnson's Ten Point Plan for a Green Industrial Revolution sets out how the UK looks to "build back better" from the impact of coronavirus by creating green jobs and accelerating the transition to net zero emissions by 2050.
UK Prime Minister Boris Johnson’s 10-point plan put hydrogen at number two on the list, but panellists at session four of Energy Voice’s ETIDEX event wanted more clarity.
Achieving net-zero carbon emissions by 2050 is an ambitious and deliverable goal, but on current trajectory it is unlikely to be realised without rapid acceleration of key energy transition projects.
Reused and repurposed products and materials are concepts associated with a circular economy, and a circular economy is associated with the green recovery of our nation following the challenging events of this year. If we, as a nation and as an industry, are to meet our carbon emission reduction targets in the coming years, then we must act now.
As more fields wrap up production platforms, many of which have been operational far beyond their expected lifespans, the team at DYNAMIX One is finding that the decommissioning industry is in desperate need of cost-effective solutions to return the surrounding area to its natural state.
Genny Hire is a well-established plant hire company which has continued to develop and expand since first opening its doors in 2008.
Times are tough. We are now more than eight months into the Covid-19 pandemic and most people I speak to have had enough. It is hugely sad that people have lost their lives and it’s terrible on a personal level that birthdays, weddings, deaths and funerals have been missed and lost forever.
As I reach my first anniversary in the role of Head of Waste and Decommissioning with ASCO, it seems like a good time to take stock of our decommissioning capabilities, reflecting on what has been and what is to come. There’s quite a bit to reflect on, as ASCO has been active in decommissioning for over 10 years, having been involved in over 50 separate projects – but have we really promoted that fact enough? Possibly not yet…
It’s not long before we host our first ever digital decommissioning conference on November 24-25 and with the aim of creating a dynamic, international and interactive online experience, it’ll be like no other event we’ve ever hosted before.
The events of 2020 require no explanation. They have changed life for the last seven months and continue to do so.
It’s fair to say 2020 has been an unprecedented year. Imagine how unlikely it would have seemed this time last year if someone had said wearing masks in a shop would now be essential, handshakes a distant memory and that we would need to brave the October chill outside the Chester Hotel and Dutch Mill to enjoy a drink?
Hydrogen will play a key role in our transition to clean energy over the coming decades as it takes a priority position in the oil and gas industry’s decarbonisation efforts. In 2020, we have seen slower industry activity and a reduced oil price, but net-zero carbon targets and broad societal support for them remain.
The recent announcement by the Prime Minister Boris Johnson on his plans to drive renewable growth and make the country a world leader in offshore wind may be a turning point for the UK in seizing the opportunity to lead a low-carbon transition.
Hoover Ferguson stepped up decommissioning activity this year, securing a contract with leading Celtic-basin operator, PSE Kinsale Energy (KEL), for the supply of temporary accommodation units on the Kinsale Bravo platform. The Bravo platform originally operated as a manned facility, but was converted to an NUI in 2001 and the redundant platform accommodation was not suitable for remanning.
A series of significant milestones - shaping the next generation of deep-water infrastructure developments at Lerwick Harbour - are expanding capability and competitiveness for the offshore decommissioning and renewables industries.
Aberdeen-based GDi is pioneering a number of technologies with a focus on driving efficiencies through big data, machine learning and enhanced visualisation.
The universal "pause" brought on by Covid-19 has been overridden by the realisation that this pandemic and its repercussions are challenges we have to deal with and adapt to if we are to survive and thrive.