ETF is led by John Pearson, group president Northern Europe and CIS, AMEC Foster Wheeler, and also Oil & Gas UK co-chairman.
The ETF will focus on three themes:
- Cooperation, Culture, and Behaviors, with the aims of delivering the behavioral change needed for the sector to compete in a lower oil price world, and implementing an Efficiency Charter before the end of the year.
- Standardization: the goals are to simplify business approaches and propel standard solutions in order to lower costs, accelerate delivery and reduce operational complexity. Early analysis suggests simplification and standardization in well P&A could deliver significant savings.
- Business Process: ETF will review the day-to-day operations of the offshore oil and gas industry, exploring how companies can work together to share resources and good practice.
As an example, it is already working to help companies rationalize their inventories, exploring opportunities for pooling and sharing of items of high value equipment.
Currently ETF holds a dataset of 10 operators’ stock listings, containing more than 165,000 items, and is working with the operators to rationalize and reduce their inventory holdings in order to cut costs associated with storage and maintenance of materials.
In addition, the task force is also aiming to tackle the efficiency of compression systems, which have been identified as a cause of at least 20 MMboe/yr of production losses.
Oil & Gas UK’s CEO Deirdre Michie said: “Becoming more efficient is the most critical challenge we face today. The oil price has more than halved – from over $100 per barrel in September last year to close to $50 today, whilst the cost of oil and gas operations more than doubled since 2014.
“Companies have already started on the difficult road to reduce costs and become more efficient. Early signs show this concerted effort is paying off, as production from our sector has increased this year and the cost of operating on the UK continental shelf is expected to fall by the end of 2016. There is, however, still much more to do. It is imperative we pull together to achieve even greater strides forward.”
In addition to pan-industry action, some companies are addressing costs individually by working smarter and more efficiently, Oil & Gas UK adds. Total, for example, has improved the completion of planned tasks by 12% over three months by encouraging offshore teams to use visualization techniques to help improve the process of planning operations and maintenance activities.
BP has reviewed its inventory management process, halving the number of storage locations, halving the number of inventory items and generating around $32 million by disposing of scrap and materials identified as surplus to its needs.
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