1.1 Operational Efficiencies Through Co-Operation
Progress to date: achievements and difficulties encountered
Development of a framework of industry institutions
Following the work of the Oil and Gas Industry Task Force (OGITF) in 1999, we have developed a framework of organisations to support the competitiveness of the UK oil and gas industry, including Leading Oil and Gas Industry Competitiveness (LOGIC), the Industry Technology Facilitator (ITF), the National Training Organisation (NTO) Group and the industry-government Economic Advisory Group (EAG). These will be monitored through PILOT which in 2000 succeeded OGITF.
Using the infrastructure
The extensive infrastructure on the UKCS has been developed through co-operation between North Sea oil and gas producers and a self-regulated access regime has already enabled new, smaller and otherwise uneconomic reserves to be brought on-stream. As production from older fields declines, the infrastructure capacity thus becoming available will ensure continuation of this co-operative process among operators.
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Focus on recovery efficiency
Our plan for 2001 is to assess and, if practicable, develop an industry-wide measurement to track progress in increasing the percentage of recoverable reserves from existing fields (the total reservoir recovery factor). This indicator will be reviewed probably every three years. (see also 4.1 Overall Impacts)
Undeveloped discoveries: the satellite accelerator
We will support, through LOGIC, the satellite accelerator trial aimed at developing technically and/or commercially challenging marginal discoveries by harnessing the combined expertise of the wider industry in identifying creative and innovative solutions.
Undeveloped discoveries: clustering
We are evaluating the potential of clustering undeveloped discoveries within a number of areas. These are trial projects to see if critical mass can be created to enable economic development. Champions for the six areas initially identified have been appointed and will be working in close collaboration with DTI.
Shared Logistics
We are examining opportunities for inter-company sharing and cross-industry agreements in the area of logistics. Our initial focus is on helicopter and supply-boat operations, with helicopter terminals and supply bases also to be considered.
Decommissioning: operational efficiencies through co-operation
The whole upstream sector is represented in the North Sea Decommissioning Group (NSDG), which is facilitating communication among all parties with an interest in decommissioning, mapping best practice and addressing identified gaps in knowledge. We are also investigating a co-operative approach to abandoning over 300 suspended wells. Over 100 have recently been abandoned in an industry initiative to reduce numbers. (See also 1.3 and 4.4 for other actions relating to decommissioning.)
North Sea economic co-operation
We are holding talks with the Norwegian Oil and Gas Industry and our respective Government trade and industry departments on potential benefits of managing the northern North Sea as a single area of operation. Issues for discussion include harmonisation of standards, co-operation over research and development, operational synergies, joint branding of North Sea technology overseas and greater use of combined infrastructure for gas transport. We plan to widen this discussion in 2001-02 to include other countries, particularly the Netherlands, in investigating potential synergies across the southern North Sea.
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Striking a Balance Index
