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UK: Oil & gas industry needs to reimagine its business and models to maximise energy transition opportunities

UK: Oil & gas industry needs to ‘reimagine’ its business and models to maximise energy transition opportunities 28 Jan 2021 Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future. Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published today (January 28). Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support t

Collaboration key to North Sea recovery

OGUK Supply chain and Operations Director Katy Heidenreich NORTH Sea oil and gas companies must collaborate more to help the industry cope with the fallout from the coronavirus crisis, specialists have said. A report by Deloitte and OGUK (Oil and Gas UK) found that collaboration appeared to have increased slightly in the North Sea last year, during which the oil price plunged. However, the pandemic and consequent economic downturn also led to “disadvantageous commercial behaviours” such as cancelled or modified contracts. The report s authors appear to believe firms will have to embrace collaboration with greater enthusiasm to help them respond to both the challenges posed by the pandemic and opportunities associated with the transition to a cleaner energy system.

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