UKCS upstream supply chain collaboration survey 2020

Re-energising collaboration to deliver greater value

What is the UKCS collaboration survey 2020?
The oil and gas industry has had an extraordinarily challenging year. The ability for suppliers and operators to support one another has been crucial. In this sixth edition of the report, produced in partnership with OGUK, we examine the impact of COVID-19 on collaborative relationships, gain an understanding of the key drivers behind collaboration and what the benefits are. In addition, we explore the adherence to OGUK’s Supply Chain Principles, internal collaboration and energy transition.

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Previous years

The UKCS upstream supply chain collaboration survey 2019

From strategy to action – overcoming barriers to change
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The UKCS Upstream Supply Chain Collaboration Survey 2018
Collaboration at a crossroads – Which way next?
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The UKCS Upstream Supply Chain Collaboration Survey 2017
Real progress – now let’s go faster!
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The UKCS Upstream Supply Chain Collaboration Survey 2016
The time for radical change is now
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The UKCS Upstream Supply Chain Collaboration Survey 2015
The oil and gas fiscal framework: Is it fit for purpose?
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What is the UKCS collaboration survey 2020?
Insight Leader Netti Farkas-Mills discusses what the UKCS collaboration survey 2020 is, and the key themes in this year’s report.

How will collaboration change as the oil and gas sector moves towards energy transition?
Our UKCS Collaboration survey 2020 explores how collaboration will change as the oil and gas sector moves towards energy transition. Graham Hollis, Deloitte UK Managing Partner for Aberdeen, provides his insights.

What words describe the findings of this year’s UKCS collaboration survey?How does our Insight Leader Netti Farkas-Mills describe the findings of the UKCS Collaboration survey 2020?

What is collaboration? UKCS collaboration survey 2020
Collaboration in the oil and gas industry is often talked about, but what does it really mean? Graham Hollis, Deloitte UK Managing Partner for Aberdeen provides his insights on collaboration in the UKCS collaboration survey 2020.

Recommendations

COVID-19 impact and the Collaboration Index

The challenging operating environment created by COVID-19 led to a wide range of business reactions and behaviours in the UKCS. Overall, the headline Collaboration Index figure rose slightly to 7.1 in 2020 from 7.0 in 2019. The improvement was driven by the higher scores suppliers received from operators.

Successful collaboration creates value for all

The focus on cost reduction continues to drive collaboration. In 2020, 30 per cent of respondents, up from 26 per cent in 2019, said they collaborated to reduce cost. As the industry looks at the year ahead, it’s time to consider how companies can shift focus from cost reduction, to more value-enhancing activities.

Supply Chain Principles are key to recovery

Protecting the health of the supply chain will be vital for efficient delivery of projects and continuous improvement of operations. With 27 per cent of suppliers in the survey reporting that their contracts are not, or only rarely cash positive, increasing industry adherence to OGUK’s Supply Chain Principles must be prioritised.

Collaborating internally

Siloed company structures and bureaucracy were identified as a barrier to collaboration last year. This year’s results show that progress has been made on internal collaboration. Approximately 90 per cent of both supplier and operator respondents said that internal collaboration exists in their companies and shared that agile, team-based, cross-functional collaboration is the norm within their organisations.

Collaborating for energy transition

The right collaborative behaviours need to be demonstrated in the growing energy transition market to support the government’s net zero target. While suppliers already offer a wide range of energy transition-related services, three-quarters of operators say that operational efficiency improvements and carbon emissions management are the two main areas suppliers can help them reach their 2035 objectives.

Webinar

In this webinar, Deloitte and OGUK panellists discuss the key findings in the 2020 UKCS Upstream Supply Chain Collaboration report.

Watch the webinar

UKCS upstream supply chain collaboration survey 2020

Re-energising collaboration to deliver greater value

Let’s make this work.

Let’s make this work.

Let’s make this work.