How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

40% cost cuts needed in North Sea oil and gas industry


Unlocking the North Sea’s remaining potential oil and gas reserves in the current low price energy environment will require a 40% cut in industry costs.

The UK Continental Shelf (UKCS) reserves have been a valuable contributor to the economy for decades. But the industry has suffered rising costs, low oil prices and a plateau in production. Still, reserves of up to 23 billion barrels of oil and gas equivalent are thought to remain.

Changes are urgently needed: to remain competitive, cost and efficiency improvements equivalent to a 40% reduction in the industry’s cost base will be needed to unlock the North Sea’s remaining potential, said Oil & Gas UK’s operations director Oonagh Werngren.

Encouragingly, progress is being made through coordinated efforts to improve cost efficiency, the 450 strong audience heard at a recent Oil & Gas UK breakfast briefing. Efficiency improvement, logistics collaboration, simplification and standardisation and late life asset management are all hoped to make the difference to UK oil and gas.

“There is also now a concerted effort to work together to tackle the fundamental behaviours that have driven cost escalation on the UKCS. The goal is to achieve a more internationally competitive oil and gas province and attract the fresh investment needed.”

Related Articles

how business leaders avoid burnout

How business leaders avoid burnout

When you’re a small business owner the buck stops with you, which can make it incredibly difficult to sw...

Read More
how to make 2017 your best year ever

How to make 2017 your best year yet

Whether you heaved a sigh of relief when 2016 ended, or said goodbye to the year with sadness, we have some ti...

Read More
tidal power

Energy News – 13/01/2017

This week has seen big news about the National Grid, a concerning report from The World Economic Forum, and th...

Read More
Excellent, 9.6 / 10

Thanks Mark...

"Mark was very helpful and had all the answers to the questions I had - would go back to him time and time. Thanks Sir"

This review was posted by Wayne Nugent - Mailing Guy on the 20th of January 2017

Switch Business Electricity Contract

"Very good & efficient service - good range of prices offered from variety of suppliers"

This review was posted by SALLY DOLMAN on the 20th of January 2017

Cheerful, helpful service.

"Aaron Gallagher was my contact at SwitchMyBusiness.com. Aaron was cheerful and helpful he made switching our electricity supply easy and painless giving an understandable explanation each step of the way. I would quite happily recommend this company and Aaron Gallagher to anyone given the task of arranging a new energy contract."

This review was posted by Pam Johnson on the 19th of January 2017

Kyle Wright - Excellent Service

"Dealt with the above on two occasions now and has made the process of switching energy suppliers very easy. Very Polite and helpful person, will defiantly want to deal with again."

This review was posted by Skyline32 on the 19th of January 2017

Made this a very simple transaction!

"Aaron was polite, friendly and extremely helpful, making this potential chore a very easy transaction. He explained everything thoroughly and answered all my questions and I feel very confident that the whole transition will go very smoothly and I am aware of what to expect as the process moves forward. Thanks Aaron!"

This review was posted by Lesley Clayton on the 18th of January 2017