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together. Some 70 people attended and generated hundreds of ideas. Centrica is now helping EnQuest run a hackathon with its suppliers. Centrica also has a “save $100 million in 100 days” cam-

Focusing on paign internally.

One of the questions the industry has to ask itself is how it became so inef? -

High oil prices in a mature basin

Northwest Europe cient and unsustainable. It’s a combina- ef? ciency led to a tight market and cost tion of things, Michie says. “We had a hot market with the high oil price driving escalation. With low oil prices, certain behaviors. It is also a mature the industry is working hard to rein in spending. Elaine Maslin spoke to basin and things are more complicated and more challenging than a green? eld

Oil & Gas UK CEO Deirdre Michie on some of the initiatives underway. site,” she says. “The combination of these factors drives behaviors and we have woken up to the fact that this is take out costs relatively overnight, and But, undoubtedly, more needs to be aking over the reins of the UK not a sustainable way to go about. Even we have seen that. Where we are seeing done. “Our focus is on cost ef? ciency,” North Sea’s leading industry with a high oil price, it would still be

T more and more sustainable changes com- Michie says. “The regulator has been body at a time when depressed inef? cient. ing through is on ef? ciency.” set up, Treasury and the ? scal piece is oil prices are exacerbating the already “Whatever happens, we need a

In this area, Oil & Gas UK is building happening and they are committed to price-pressured sector may seem an more sustainable ef? cient model,” she a “box of stories,” or good examples, working with us. unwelcome task to many. continues. “It’s all about optimizing the

Oil & Gas UK to share with the engineering, rather than what a commer-

CEO Deirdre Michie industry. For exam- cial barrel is. The industry is very good appears up for ple, Nexen studied at engineering, but it is about applying an “It’s all about optimizing the challenge. Up the Tour de France innovative approach to standardization the engineering, rather until 1 May, when winning Sky Team’s and thinking about that.” she took over from marginal improve-

Oil & Gas UK has a tranche of projects than what a commercial long-standing CEO ments ethos. The barrel is. The industry is

Malcolm Webb, Sky cycling team

Michie was work- made gains because very good at engineering, ing for supermajor they focused on

Shell, where the every way possible but it is about applying graduate in Scots they could make an innovative approach

Law had a 30-year marginal improve-

Custom REPRINts career in senior UK ments. By following to standardization and

Use reprints to maximize your marketing initiatives and strengthen your brand’s value.

and global upstream this ethos, Nexen and downstream reduced wrench thinking about that.” management time in one shift positions. from 8, down to

When she took 5.5 hours. “That’s a

Dierdre Michie over, WTI crude huge improvement was US$55/bbl, half and the fact they

RepRints aRe ideal foR: that from just under got the workforce a year before, after involved in the pro- n New Product Announcements n Sales Aid For Your Field Force falling from a four- cess really helped,” year steady high at

Michie says. n PR Materials & Media Kits n Direct Mail Enclosures

French oil major around $100. But,

Photo from Oil & Gas UK. n Customer & Prospect Communications/Presentations

Total is working even at that high, with its technicians and operators to the North Sea was under pressure – with “Our piece is cost and ef? ciency, n Trade Shows/Promotional Events n Conferences & Speaking Engagements use visualization technology when cost escalation and skills shortages. recognizing we have become incred- use this logo on white or lighter backgrounds they are putting a job in place to look

Before the price collapse, government ibly inef? cient and that costs got out of n Recruitment & Training Packages at what they need to do. It helps them and industry had already recognized the control,” she says. “Production ef? - create a more ef? cient process – cut- situation was unsustainable, not if the ciency had dropped from 80% to 60%, ting 10-12% of the time it previously

UK’s resources were to be “maximized.” and lifting costs were $30/bbl. That’s not

For additional information, please contact took them to do a particular job, Michie

Some key recommendations from Sir Ian sustainable. Companies where looking

Foster Printing Service, the official reprint provider for OE.

adds. In another example, Centrica

Wood’s Maximising Recovery report have at this at $110/bbl, before the [low] oil

Energy held a hackathon – an event already been put in place, including set- price, recognizing the cost base was not use this logo on black or darker backgrounds. The Printing bringing together contractors to see ting up a new regulator (the Oil and Gas sustainable and something needed to be

Call 866.879.9144 or [email protected]

Service is in white.

what the operator and they could do to

Authority) and government support for done.” generate ideas on how they can work new seismic. But, she says: “It takes time. You can

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