Purpose. Suppor%ng the UK Industrial Strategy. What. Why. Who. How. When

Transcription

1 Crea%ng the future

2 Purpose What Why A single, compelling, na/onal vision for the UK oil and gas industry to 2035 that everyone can iden/fy with, support and deliver To provide direc%on and ins/ll confidence To inspire transforma%on and drive collabora%on To create compe%%ve advantage To secure investment and drive value Who Workforce Current and future Investors Public and private Policy makers Na/onal and local How When Small, diverse, representa/ve team led by the OGA and Oil & Gas UK Involvement at all levels and from every part of the industry Organic, bofom-up approach strong communica/on & engagement Create: June to September 2016 Refine: October to November 2016 Communicate: H Suppor%ng the UK Industrial Strategy

3 Core audiences Audience What would success sound like? Workforce 1. I see the poten/al for growth and a posi/ve future 2. I understand why change and transforma/on is needed 3. I know how I can contribute and I m excited to be part of it Investors 1. I see the poten/al for growth and a posi/ve future 2. I understand what is being done to increase compe/veness 3. I regard the UKCS as an afrac/ve place to invest Policy makers 1. I see the poten/al for growth and a posi/ve future 2. I understand what needs to be done to support this 3. I am commifed to crea/ng the right condi/ons We ve got to make it relevant

4 Where we are we now Infrastructure Production (boepd) Production efficiency 5,000+ wells 250+ subsea systems 3,000+ pipelines 250 fixed installations million million million Source OGA and Oil & Gas UK % % 2015 range 30%-90% Source OGA Resources Development Exploration & appraisal Produced 43bn Remaining potential 10bn 20bn 6.3bn boe in production or under development WOS SNS NNS CNS 2014 wells wells wells (est) Source OGA Source OGA Source OGA and Oil & Gas UK Costs Supply chain Jobs Unit costs down by nearly 30% c. 30bn turnover 330,000 jobs in the UK Average unit operating costs have fallen from 18 per barrel in 2014 to an estimate of 13 per barrel in % through exports and supporting 80% of UK oil and gas jobs Delivered through or supported by upstream oil and gas activity Source OGA Source Oil & Gas UK and EY Source Oil & Gas UK Adap%ng to new opera%ng condi%ons

5 The big opportunity 496bn Revenue/Turnover ( billion, 2016 prices) bn Additional turnover 137bn Additional gross revenue Baseline supply chain turnover from exports Vision supply chain turnover from exports Baseline gross production revenue Vision gross production revenue 418bn 348bn 281bn Total value added Increased UK supply chain turnover from capturing larger share of exports markets MER UK Increased gross revenues from UKCS oil and gas production Increase the prize by half again over the next 20 years

6 Immediate next steps The immediate steps Efficient decom Digital Simplification Use it or lose it Consolidation Collaboration Transparency Jobs and skills Halve well costs Technology 8 Exports A picture of the future Extend life

7 How it might sound Home to a global energy industry anchored in the UK, powering the na%on and expor%ng to the world People Energy security Technology Exports An exci%ng place for energy people to live and work Maximising economic recovery from the UKCS Becoming a global leader in mature basin solu%ons Leveraging our exper%se, innova%on and technology Securing sustained investment from a diverse range of companies AFrac/ng the next genera/on of talented people Being the most efficient basin in the world Having an extraordinary knowledge of our geology Anchoring capability and exper/se in the UK Delivering sustained investment in technology through the cycle Crea/ng a sustainable energy service and technology sector long a\er the final economic reserves have been produced Enabling people to transfer between different parts of the energy sector Crea/ng a safe and sustainable low-cost opera/ng model Being a test bed for the development and deployment of technology Maintaining our posi/on as a world-leader in subsea engineering One vision mul%ple dimensions

8 Your ideas Is this the right vision? What does it mean to you? How can you help achieve it? What behaviours are required? What ac/ons are required? How should it communicated? Your feedback We d welcome you re feedback and ideas Please contact: Mike Tholen mtholen@oilandgasuk.co.uk or Andrew McCallum andrew.mccallum@ogauthority.co.uk Help shape the vision for the future

9 Crea%ng the future