Tis the season to be jolly, but for many of us in the oil and gas industry recent headlines haven’t been bringing us any cheer.
At the end of last week oil prices fell below $70 a barrel for the first time since 2010 and over the course of this week there has not been a significant increase in the cost. The Chancellor to the Exchequer announced in his autumn statement on Wednesday that the oil industry’s supplementary charge will immediately be reduced from 32% to 30%, but many companies are already feeling the effects and talks of cutbacks and reorganisation have many people concerned.
With average unit operating costs at around £17 a barrel, efficiency is vital to make sure businesses can turn around and thrive in challenging times. A plummet in oil prices is an issue that affects all of the industry. We are truly facing this challenge together, and the only real way out of it is to collaborate on solutions and challenge conventions.
Now is the time to ensure we create new solutions to old problems and ensure we minimize risk and potential future difficulties. Training staff and developing skills should continue to be a top priority to businesses across the sector, as people are the greatest resource in the oil and gas industry. We must not allow ourselves any future gaps as a result of decisions made now.
We at Cortez Subsea have seen how close relationships with our collaborative partners have spearheaded a path into new and exciting systems and technologies to strengthen our future in the sector.
Full collaboration is needed across the industry to provide open and efficient services and production in the year ahead. Operators and contractors need to share information and build their strategies together. Services companies need to work hard to provide new and forward thinking solutions in a time where an end to this problem is not clearly in sight.