It’s hard to believe that four years ago, I stepped into the role here at Step Change in Safety. Like my New Year’s resolutions, my hopes and the reality didn’t always align. Since day one, there have been many successes and Step Change’s strategic priorities have evolved. But, sadly, there have been tragic and stark reminders of just how much is still to be done.
There is little doubt that the ongoing period of low global prices poses significant challenges for the oil and gas sector and our thoughts remain with the workers, such as those facing redundancy at BP, who have been affected.
One of the buzz phrases that’s going around just now is ‘lower for longer’.
Last week, the SNP’s Dennis Robertson claimed there was no crisis in the North Sea. I doubt if he will say anything like that now.
The Offshore Contractors Association and the oil and gas industry breathed a sigh of relief on Friday, when the long awaited outcome of the trade union ballot on the latest and what was reported to be final offer on terms and conditions of employment for offshore workers, was finally approved.
Few will have missed the jubilation that greeted the news of the first truly global climate change agreement agreed in Paris on December 12. This is a milestone in that 195 countries agreed a deal which recognises that climate change is an issue and set a framework by which to address it.
Well, here we all are . . . another year dawns over the chill, grey wastes of the ever restless North Sea.
I see the future of Aberdeen: a post-apocalyptic wasteland of flash cars sitting abandoned and rusting on Union Street, clubs turning back in to churches and office blocks colonised with seagulls.
Scotland’s tides are among the most powerful in the world. With an estimated 25% of Europe's tidal potential, it is no surprise that Scotland reigns supreme in attracting international project developers and major OEMs looking to tap into this vast resource.
As director of an Iraqi security services company, I am often asked by energy companies what the key issues are that are currently affecting security for their operations in Iraq and how I see these trends developing in 2016. Unsurprisingly, most trends impacting the energy sector are strongly influenced by the sharp drop in oil prices. In particular, we are concerned about increasing price pressure on security provision from international energy companies. Those who make senior policy decisions on security matters know that the probability of attacks does not change with oil prices. If the risks were there on a $100-dollar barrel, then you can make a safe assumption they are still there in a $40-dollar barrel. However, our industry is being asked to reduce costs by up to 20%. As security operators don’t have such margins to begin with, this is causing real difficulties, and we advise energy companies that security in high-risk areas is an essential: it’s vital to think very carefully about the impact of reducing security budgets.
Dennis Robertson this week told the Scottish Parliament that there was no crisis in the oil and gas industry.
The latest Adzuna jobs report confirms what many in the energy, oil and gas industry have suspected – there are fewer jobs available today than a year ago, and the jobs that are available aren’t paying as much as they used to.
As 2015 draws to a close, we are on track to see the first annual rise in oil production for 15 years. This fact may seem strange to those who have only considered the sustained low oil price that has dominated the headlines in 2015, but it is a positive sign from an important industry that is adapting to a changed landscape. DECC statistics show that production of petroleum is 32% higher and natural gas production is 8.6% higher in the three months June to August 2015, compared to the same period in the previous year.
Developing political tensions between Iran and Saudi Arabia have resulted in fluctuating oil prices, with the price of Brent crude having risen to $38.50/bbl, its highest level for three weeks.
Oil gained for a second day as Saudi Arabia cut ties with Iran a day after its embassy in Tehran was attacked to protest the Saudis’ execution of a prominent Shiite cleric.
On the last afternoon of 2015, an oil tanker filled with light, sweet crude from South Texas’ Eagle Ford Shale formation eased out of NuStar’s North Beach terminal in Corpus Christi, and headed for Trieste, Italy.
Lower for longer’ – is the mantra many people in oil and gas circles are now adopting, as we move in to 2016 and beyond.
Whilst the recent oil and gas decline is having a considerable impact on the local and national economy with employment and business confidence levels in particular taking a hit, this slump is also having detrimental consequences to the industry’s finances.
At the start of 2015, the North Sea oil and gas sector was staring into the eye of a perfect storm - a slump in oil prices, the cancellation of new projects, high costs of production, an unfavourable tax regime and a regulator that was not in place to maximise economic recovery. And as we approach the end of the year, the cold wind of low oil prices continues to batter the industry.
2015 was unquestionably the UK North Sea’s “Annus Horribilis”, or at least thus far.
Resilience was the word of 2015 amongst the oil and gas sector. It’s been hard to stay positive, stay focused and to consider growing the business when it’s felt for many like a daily battle of challenges and stresses. So how as leaders do we work to continue to grow our businesses when everything around us seems so problematic.
For better or worse every successful business leader has made decisions based on gut instinct. Most company founders in the North East of Scotland have an anecdote about the time it went sour. At business functions, we've all heard leaders express their pride at turning around a seemingly lost cause.
The employment landscape in the North-east has changed dramatically over the last couple of years.
At the start of the year there was a growing sense of trepidation as to what the next 12 months may hold for the sector due to an acceleration of the downward trajectory of the oil price in the second half of 2014.