As we look towards the 2013 PILOT Share Fair the UK oil and gas industry is in good health.
With investment at an all-time high of £13.5billion this year and companies planning to invest £100billion on the UK Continental Shelf (UKCS) over the next decade, the future looks positive.
This good news needs, however, to be understood within the context of the shifting dynamics of the UKCS as it matures, and the industry’s challenge is to sharpen its focus to ensure that the basin continues to be productive beyond 2050.
Across the sector we need to collaborate to find ways of reducing costs and optimising resources to ensure that maximum economic recovery of oil and gas is achieved from our indigenous reserves.
As such we have a number of PILOT workgroups focusing on addressing the challenge and the Share Fair, which takes place on November 6 at Aberdeen’s Exhibition and Conference Centre, is a key mechanism to help us achieve this goal.
Those who attend will be among the first to hear presentations from major operators and contractors regarding their plans for a huge range of diverse projects scheduled to take place on the UKCS over the next 18 months.
Supply chain companies also gain invaluable access to key decision makers such as client contract and purchasing teams from more than 20 major players by participating in the extremely popular one-to-one meetings.
Armed with this valuable information, supply chain businesses can demonstrate to operators and major contractors how their expertise and services could play a part in the stream of oil and gas projects planned for the future.
Through understanding the requirements for the projects ahead, they can also prepare to increase capacity, deliver key equipment, expertise and skilled personnel in a timely manner.
For operators, Share Fair is an opportunity to identify innovative value-adding technologies aimed at improving efficiency through the life cycle of oil and gas fields.
With discoveries becoming more technically challenging to locate and develop, it is vital to encourage the development of new technologies in areas such as seismic acquisition, exploration and enhanced recovery so that our industry can realise the full potential of the UKCS.
A key tool to help the industry work together more effectively is the Supply Chain Code of Practice, a PILOT initiative, which aims to heighten the efficiency of the UKCS supply chain by improving performance, eliminating unnecessary costs, adding value and boosting competitiveness.
At Share Fair, Oil & Gas UK will be recognising those companies that have demonstrated their commitment to complying with the Code in terms of speed of invoice payments, transparency of forward work planning and the use of standard contracts.
The Code plays a valuable role in Oil & Gas UK’s strategy to ensure the long term future of the UK supply chain. The diverse and versatile oilfield services sector is a priority for both the UK and Scottish Governments, both of whom have launched strategies aimed at creating the right conditions to maximise opportunity and investment in the industry.
As a remarkable industrial asset, the supply chain is a vital engine for growth in Britain. This is why Oil & Gas UK has appointed EY to conduct further research into the economic contribution of Britain’s oil and gas supply chain to the nation – believed presently to be worth in the region of £27billion per annum.
The project, launched last month, aligns with the Government’s industrial strategy which seeks to gain deeper insight into the strengths and capabilities of the sector to determine where there are areas of constraint and potential opportunities for effective additional support.
While these initiatives and strategies are crucial to maintaining and growing the capability of our world-class supply chain, Share Fair is all about providing the ideal arena for exploring business opportunities with a huge variety of industry professionals and I believe the event will prove to be a stimulating and productive day for all participants. We look forward to seeing representatives from both established oil and gas companies and new entrants at the event.
Oonagh Werngren is Oil & Gas UK’s operations director
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