Introduction

Current key challenges for our industry

Alongside the normal business challenges of operational process, technical development and regulatory compliance, the UK offshore oil and gas sector is currently facing the sustainable development challenges of maturity; sustaining its economic contribution to the UK and setting its potential legacy.

• Sustaining the economic contribution to the UK: for primary energy supply by extending recovery from existing fields and finding and developing new fields; as a major source of industrial investment and employment
• Managing the sector's legacy: concerning the skills and technology developed here but applicable elsewhere e.g. in renewables; the use of infrastructure for further developments and possibly carbon sequestration and the decommissioning footprint

At the operational level there are a number of challenges, some of which reinforce those above and some which can be contrary. These include:

• global competition for resources, investment and people
• attracting a diversity of organisations to further invest in this sector, which will also maintain operating standards
• maintaining ageing infrastructure and asset integrity
• being cost effective i.e. controlling overall costs of production, as the province matures
• maintaining investment impetus through large price volatilities (in the last 5 years oil price has moved between $10 and $60 /bbl)
• getting the right balance of reinvestment, reward and taxation
• ensuring a working environment where people are not hurt
• workforce demographics; attracting and retaining new talent
• reducing marine discharges without signifi cantly increasing atmospheric emissions

Overall the external perception of the industry, although it may have changed in recent years, is still thought to be poor. This has an impact on political decisions that affect us, our ability to recruit and the capability of the sector to respond to these challenges. The industry is aware of the tensions in decision making and the different perspectives of the global issues which exist and will attempt to address the issues in a robust and responsible way. However, the industry needs a regular check-in with its broader range of stakeholders, both on how it is doing and where its priorities should lie.