M
uch has been spoken of regarding the dearth of
upstream activity in the North Sea following the decline
in the oil price in late 2014. From the high of US$115/bbl
in June 2014 to a low of around US$45/bbl by the end of the
year, the oil price decline has led to a number of well publicised
ramifications – job cuts, cancelled projects and severe delays – as
many major companies (both operators and contractors) strive
to make their developments economic. The oil price has since
recovered somewhat, but many projects in the North Sea are still
not profitable – around 10% of production on the UK Continental
Shelf (UKCS) is struggling to make money – and the industry must
adjust accordingly.
Productivityandefficiencychallenges
A lot of talk has been focussed on low productivity and
inefficiency. Offshore installations, for example, are working
only around 60% of the time on the UKCS, due largely to poorly
planned maintenance, while, when compared to other industries,
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