Offshore opinions study

Barney Parsons Associates recently completed a global study on the current challenges affecting the offshore oil and gas sector. The main findings of the study are:

• Brent oil prices are expected to be unchanged at $65/b at end of 2015 – well below the price range thought ‘best’ ($80 to $100) for the offshore sector.

• Low prices for oil have put supplier/client relationships under strain.

• More mergers and acquisitions activity is expected in 2H2015 in the offshore sector – weaker companies will be subject to consolidation pressures, especially vessel companies.

• Costs can be driven out through greater cooperation in the supply chain, more standardisation and better technology with faster implementation.

• Collaborative cross-industry groups, as favoured by the Wood Review, can provide a focus for generating cost reductions.

• Involvement from a regulator, as suggested in the Wood Review, could provide focus, especially for longer term projects, by encouraging participation, openness and change.

• Reducing R&D and maintenance expenditure are deemed counter-productive in the longer term. 

The full report can be downloaded from www.bpassociates.eu/surveys.html