The North Sea oil and gas industry needs to take advantage of a “two-year transformation window” if it wants to ensure a “strong, productive and profitable future”, a PwC report says.
According to the report entitled “A Sea Change”, any lack of action may lead to an exponential decline, despite the progress made to date.
“The North Sea still has a strong couple of decades ahead of it, but the decisions to sustain it in that period need to be taken quickly”, PwC’s Office Senior Partner in Aberdeen, Kevin Reynard, said.
Report: North Sea Needs To Take Window Of Opportunity
According to the survey, which included interviews with 37 senior executives in the UK, Holland and Norway, 58% feel positive about the future of the region, but see a window of opportunity in terms of the transformation of the North Sea that “is slowly closing”.
In all three countries, the main focus areas identified by the respondents were technology, innovation, collaboration and government. In Holland, however, decommissioning was identified as a key point, with low prices accelerating the demise of the basin within the next 5-15 years.
Call For Urgent Action In The North Sea
PwC UK and EMEA’s oil and gas leader, Alison Baker, said the survey showed “a real sense of urgency” in terms of jobs, growth and security of supply.
According to Reynard, collaboration is key. “It is vital that governments and industry come together and agree a blueprint for action. No one company standing alone can weather this, but if all interested parties join forces to address the issues, then there is hope for the North Sea”, he stated.
“It’s clear that with the right momentum the industry can secure a sustainable future and successfully manage the transition to a lower carbon economy in the years ahead, which can benefit not just the North East of Scotland but the wider North Sea basin,” he added.
To read the report, click here.