A few years ago, many thought the North Sea to be in terminal decline – at least from the point of view of the Supermajors as they looked to manage their exit from the North Sea. A new breed of low cost operators had begun to move in and take on this ageing asset base which was failing to attract the level of investment required to sustain production. In the simplest of terms, the higher price oil environment has given the North Sea a new lease of life, and the Supermajors are understandably keen to capitalise on their dominant position in terms of both licensed acreage and subsea infrastructure. However, given the global portfolio of development opportunities, and a limited (although nonetheless increased) Capex budget, in many ways it is more difficult for the Supermajors to survive in the North Sea than the small independents who don’t have the same portfolio of options. They will need to focus on becoming more efficient through leaner processes, better use of technology, and smarter deployment of people. The alternative may be a faster withdrawal from the North Sea sector than the price of oil might indicate.  | | Capabilities to exploit the 21st century North Sea - Back to the future
The rise in the oil price in recent years does mean that there is generally more capital available for field investment, but the mature North Sea must still compete with other potentially more attractive opportunities around the world. The Capex available is certainly not unconstrained, yet the return of capital to shareholders happening across the industry suggests that there are not enough projects to invest in with the required returns. This means that despite an oil price several times higher than the historical lows of recent times and the consequential high returns associated with the industry, the focus on keeping costs under control, and minimising development and lifting costs has never been higher.
Read more |  | | Security options for the Digital Oil Field - The future is digital
Information Technology (IT) has always been a key component of the upstream oil and gas business, however, the upstream oil and gas industry is under continuing pressure to reduce costs, increase productivity and ensure efficient use of resources, particularly skilled human resources. To this end, companies have been focusing on core business activities, developing production capacity to match demand and using technology as a business enabler.
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