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Companies “My personal view is that deepwater developments with marginal this year is going to remain economics would bene? t from similar tough and [given the time bid- improvements in standardization and ding activity takes to translate ef? ciency.” into real activity] it is going to Technology which can extend, enhance remain so for the remainder and increase recovery rates, cost effec- of this year and well into next tively, is also high on the agenda, such as year. At the back end of this more cost effective subsea interventions year and in to next year, there and more economical well construction, could be some rebalancing of Woodburn says. supply and demand, which For Woodburn, while it could be should give some form of con? - easy to say, that ‘despite the challeng- dence around a recovery going ing back drop, SPE Offshore Europe is into 2017. But, crystal ball an excellent opportunity,’ it is because gazing is never easy and there of the challenging back drop, it is a is wide debate about what the great opportunity, “to get the industry new normal will be.” together to have a constructive debate

The challenge around being and discussion about all the issues we the right size at the right time are facing, like the timing of a healthy will be one of many to be recovery and how to recruit and attract discussed at Offshore Europe. the talent we know we are going to need

Others include how to ? nd again.” ef? ciencies and standardiza- “Most commentators say that mid this tion, and where lessons can be century, three quarters of our energy learned from other industries will come from hydrocarbons – oil, gas

Charles Woodburn, Expro Group CEO.

Photo from Expro Group or even different segments and coal – still. We have a tremendous of the global exploration and responsibility for energy security and production business. in point is the rapid development of supply, which in turn impacts global “The industry has a huge capacity unconventional and tight oil and gas. A economics. It is a huge challenge for us to reinvent and innovate, especially in lot of lessons were learned there that can all and we need everyone to be aware of challenging environments. But, at the be applied in the offshore industry, such the key elements of that. Getting young- same time, there are plenty of areas for as standardization and ef? ciency. Having sters to appreciate that and the longevity improvement,” Woodburn says. “A case seen the oil price come down, a lot of of this industry is key.” ? nancial backing from various houses, who have been discussed for some time by the it is hoped that, with the government industry. Reductions of costs, ? scal sta- fronting up £20 million (US$31 million) have started to look at cutting costs and bility, government support, collaboration, for a new seismic survey to be shot in the improving ef? ciency while maintaining, and in some cases, increasing production.

and standardization have all been topics North Sea, exploration drilling rates will and concerns aired publicly by operators, Throughout the supply chain and increase in the mid-term. The drop in contractors and the various trade associa- amongst operators, there is a requirement the oil price has seen a drop in rig costs

Graph 1 – UK upstream contractor activity tions involved in the sector. for new thinking in the current climate and it could be an opportune moment 25 120

The UKCS is well known for being an and the opportunity to begin to look in for operators to start up new drilling expensive place to do business. Operators more detail at the standardization of campaigns.

100 in the region had been wrestling with the developments. The industry from the While times are undoubtedly dif? cult 20 issues of costs well before the drop in majors down to the small operators have for all involved in the upstream oil and the price of oil and this saw a number of a role to play in establishing standards gas sector, in the current climate oppor- 80 projects suffer delays in moving forward. that are used throughout the sector. The tunities still exist for the supply chain. 15

These increasing costs, which inevitably establishment of uniform standards Encouraging news is coming from the 60 led to smaller margins, saw the operator would cut costs and save time for the Culzean development (Maersk Oil) with landscape change in the early part of the supply chain, especially if the operators the ? nal investment decision expected by 10 40 decade where some of the major play- standardised tender documentation. year end, while work on Mariner (Statoil) ers divested assets to smaller companies The establishment of the Oil & Gas continues at pace. The decommissioning

Price of oil per barrel ($) 5 (ExxonMobil and Apache, for example). Authority (OGA) in the UK is a positive market is also set to grow in the coming

Number of contract awards 20

These smaller players looked at ways move and it would be expected that its years and will provide the UK supply of increasing and enhancing production establishment will improve working chain with the opportunity to establish 0 0 of these assets and with some success. We practices in the industry and increase itself as a world leader by using the

Q2 Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2 2011 2012 2013 2014 2015 are again beginning to see the emergence ef? ciencies. Opportunities will emerge in UKCS as a learning ground before export- of new smaller players, with signi? cant the sector for enhanced recovery while ing this knowledge globally.

EPCFeedSubsea / SURF Average price of crude oil per barrel (US$) oedigital.com August 2015 | OEoedigital.com August 2015 | OE 6161 060_OE0815_Activity.indd 61 7/21/15 7:02 PM