Energy Voice has launched the latest wave of its research aimed at gauging global sector perceptions.
The latest installment of ‘Energy 2050: Securing our future’ takes aim at the sector’s international ambitions .
The groundbreaking research led by Energy Voice, and done in partnership with EY, Robert Gordon University, FifthRing, Burness Paull and Douglas Westwood, is part of a year-long global initiative.
Energy Voice editor Rita Brown said: “This wave of the research will gauge the industry’s perception of what today’s new frontiers are – whether it’s the unknown of the Arctic, the emerging Asian production market, the African subcontinent or the UK’s own onshore potential. Energy 2050 will delve into the challenges, rewards and most importantly the tools needed to ensure the UK supply chain can export its abilities to the global market.”
The research will also examine the short and long terms effects robust internationalisation, the fall-out of a dipped oil price, motivations for expansion and hurdles to entry.
Brown added: “The response we’ve had to the previous two surveys, which tested confidence levels and attitudes towards technology, has been fantastic.
“Energy 2050 has always been about generating sector-wide discussion at a time when it needs it most – it’s about ensuring the sector’s longevity. It’s also about facing-up to hard truths and having the courage to innovate beyond current marketplace challenges.
“Ultimately, the findings will be a marker of what we do well and help identify the opportunities of what we can do better.”
A total of 44% respondents thought oil would recover to more than $100 by 2020, 48% said it would sit within the $60 to $100 range and only 7% expect oil price to fall below $60.
The oil price dropped 50% between June 2014 and March.
In the UK, a high cost base was deemed the number one challenge facing the industry, followed by global economics and the oil price.
Between 2000 and 2013, the global oil price grew by 14% and gas production by 40%, while E&P Capex soared by 374%, in real terms, to $682billion, according to the research.
Energy 2050, also tackled issues surrounding the sector’s perception of technology development and adaptation.
Wave two of the findings revealed total of 41% of respondents admitted to not wanting to be first adopter of technology. Other primary factors limiting current technology implantation included a reduced appetite for R&D investment (31%), access to finance (19%), the length of field trials (6%) and regulations and safety cases (2%).
The majority of respondents (41%) said technology development needed to be driven by exploration and production companies.