This month marked a historical shift in the UK Oil & Gas Industry which was faced with the UK’s exit from the European Union. Brexit marks an uncertain future for the UK’s economy and trade deals, but it is unlikely to have a big impact on the nation’s Oil & Gas Industry because of its large market. In an attempt to improve the state of their national industries, countries such as Indonesia are investing in digital technologies to improve how operations are managed. Meanwhile BP has made headway off of the Egyptian coast, discovering natural gas and adding to a list of recent discoveries in the area.
Creating a digital advantage in Oil & Gas Industry
The Oil & Gas Industry is responding to an increased use of technology by experimenting with digital innovation. Indonesia’s Oil & Gas Industry has faced challenges in recent years: volatile crude prices and dramatic changes in the regulatory landscape. In an attempt to improve operational management, Indonesia is investing in digital technologies. Digital technologies provide the opportunity to cut costs and redesign businesses to thrive in volatile market conditions. In the recent “2016 Upstream Oil and Gas Digital and Technology Trends Survey”, cost reduction was identified as the most important business challenge that digital tools can help address (by 72 percent of respondents) and 91 percent said that they were already getting value from their digital initiatives.
BP makes natural gas discovery off the Egyptian coast
Oil and gas company BP has struck natural gas off the coast of Egypt, adding to a number of recent finds in the area. BP has made a series of discoveries in Egypt including Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus, Salamat and Atoll. Along with BP, Eni SpA – an Italian multinational oil and gas company headquartered in Rome – holds a 50 per cent stake in region’s licence.
‘Brexit’ unlikely to have big impact on UK oil and gas market
Following the UK’s exit from the European Union, industries faced immediate uncertainty. However, the UK is too large a market for European oil and gas sellers to be marginalized much by its exit from the EU. Simon Flowers, Chairman and Energy Chief Analyst at global oil consultancy Wood Mackenzie said the UK could be subject to some tariffs on oil and gas from the EU as part of any new trade deal. However, global markets for both resources are oversupplied and there is enough competition for the UK to ensure it still gets a good deal. The UK “buys a lot of energy from Europe, especially gas, and there is no question it is one of Europe’s largest markets,” Mr. Flowers said. “But, it can just as easily buy liquefied natural gas from the US or elsewhere if any proposed tariffs prove to be too high.”
North East subsea sector weathering the worst of the oil and gas crisis
While the UK Oil & Gas Industry has lost a quarter of its workforce in the past two years, the UK subsea industry has not suffered so severely, say the findings of a new survey. The recent oil and gas crash resulted in the cancellation and postponement of more than $500 billion worth of global projects and the loss of more than 100,000 UK jobs – almost 25% of the total workforce. Two years ago the regional subsea sector supported 15,000 jobs at more than 50 companies, but the impact of the crash has not been felt as severely in the industry. A number of factors make the subsea supply chain more resilient including its world-leading technological expertise and its diverse geographical and market portfolios.