Sustainable Local Content

Transcription

1 Britcham International Energy Seminar Local Content in the Oil and Gas industry Sustainable Local Content The UK Experience Sue Whitbread PWX Limited

2 Topics UK s O&G Supply Chain Dealing with Uncertainties Developing a Competitive Response UK s Role in Local Content Creating Partnerships Technology Cooperation Local Skills Development

3 The Local Content Opportunity and Challenge

4 UK Oil Production History 3000 Limited Local Equipment and Services MBD 2000 $30/bbl World Oil Price $20/bbl 1000 $10/bbl UK Oil Production Birth of the North Sea Oil Industry- a steep learning curve

5 Using Traditional Skil, Resources - Grow Capacity capacity Steel and Iron Manufacture Mining Power Nuclear Engineering Gas Processing Refining Ship Building Construction Agriculture Food Processing

6 UK Industrial Centres 1970 Oil industry centres early 1980s Direct + Indirect, 275,000 Oil industry employment centre Induced, 700,000 Peak Employment Traditional manufacturing centre Note: diameter of oil industry symbols are proportionate to number employed. Locations are approximate. Traditional manufacturing symbols are not to the same scale

7 UK Oil Industry New Employers Direct + Indirect, 275,000 Induced, 700,000 Peak Employment Supply base Oil industry employment centre Commercial Traditional manufacturing centre Engineering Fabrication Academic Manufacturing Note: diameter of oil industry symbols are proportionate to number employed. Locations are approximate. Traditional manufacturing symbols are not to the same scale

8 Traditional Upstream Approach $ Oil Sales $ Service Companies Manhours $ Oil Companies Replacement Parts Suppliers

9 UK Oil Production -New Competitive Landscape 3000 $30/bbl World Oil Price 2000 $20/bbl MBD 1000 $10/bbl UK Oil Production Piper A Change Needed!

10 Motivate Everyone Towards One Goal Service Companies Manhours Oil Companies Oil Sales Replacement Parts Suppliers Friction Alignment `understand each others uncertainties

11 Aligning Team Objectives CAPEX $3 boe Understand Each Others Uncertainties OPEX $2 boe Same Goal

12 UK Oil and Gas Industry Task Force Objectives Reduce UK operations cost, urgently Extend UKCS O+G exploration, development, production Work Groups Sponsors Vision Shared industry building blocks Competitiveness Compare best practices + integrate existing initiatives Stimulate more UK industry cooperation overseas Fiscal Submit industry representations to HM Chancellor Simplify administration of O+G taxation Regulation + Licensing Examine new ways of cooperation across license groups Ensure UK regulatory system = best in class Skills + Training Identify process to develop workforce (skilled + motivated + flexible) Examine current practices develop transferable skills Innovation + Technology Make UK leader in innovative advanced technology solutions (development + implementation) Sustainable Development Align environmental goals government industry Find real environmental improvements at low cost Export environmental technology + skills

13 UK Oil and Gas Industry UK Oil and Gas Industry Task Force Objectives Reduce UK cost Grow UK production Work Groups Vision Sponsors Industry Leadership Team Government Competitiveness Fiscal Regulation + Licensing Skills + Training Regulations Updated Innovation + Technology Sustainable Development Asset Trading Safety Step Change Supply Chain Efficiency e-business Satellite Field Accelerator Small Company Mentoring Technology Facilitation NOVA Fallow Fields Focus Technicians Training O+M Drilling Well Support Share Fairs Work

14 UK Learning Arena MBD $30/bbl World Oil Price $20/bbl $10/bbl UK UK Oil Production Piper A Alliancing Traditional Performance Performance Based Based Contractor Change Risk Reward Risk Reward Services Needed! Outsourcing! Services Outsourcing 1980 Communication Procurement SMEs Risk/Uncertainty Management O&G Industry Task Force NOVA LIFT Integrated Services Seamless Organisation Shared Services Campaign O&M 3000 MBOED Production UK Self Sufficiency $4.5 billion/year investment 100,000 extra jobs $1.5 billion/year extra business 50% more exports Safest O+G workplace 2010: UK Collaboration Standardisation Contracts Coaching Share Fares Assessment e-business Globalisation Liability

15 Value Chain Supply Chain Specialists System Integrators Exploration & Appraisal Seismic Reservoir Specialists Drilling Well Engineering Drilling Technology Equipment Supply Fabrication Production Facilities Concept Development Detailed Engineering Project Mgt. Procurement Operations & Maintenance Maintenance & Modifications Product Suppliers Major Services Companies Specialist Services Equipment & Models Consultancy Tools Equipment Supply Workover & Maintenance OEMs Fabrication Construction E,I&T M, L,A Logistics Coatings/ NTD etc Support to OEMs Integrated O&M Logistics & Supply Chain Mgt. Training Skills & Resource Development R&D Technology Applications harsh environment, H 2 S, Gas monetisation, Wells UK Oil + Gas Supply Chain Cluster Map includes over 15,000 SMEs

16 UK Role in Assisting Local Content Supply Chain Partnership Initiatives Nigeria with Shell, NNPC Kazakhstan with Shell, British Gas, KMG Russia with Shell, Iceland with the Ministry of Energy Cyprus with the Ministry of Industry Partnership Facilitation Joint Industry Projects Technology Advancement Training and Development

17 UK - Recent Local Content Success UKTI Energy Technology Supply Chain Partnership Initiatives Partnership Facilitation Joint Industry Projects Technology Transfer Training and Development The Out come: Over 60 new partnerships, more than US$ 400 million in new business including direct investment, in excess of 25,000 new jobs created.

18 Area Character Reservoir Pressure Temperature Oilfield Fixtures Production Facilities Onshore Offshore Location Weather Terrain Client Choices Local Resources Equipment & Services

19 Area Character Reservoir Pressure Temperature Oilfield Fixtures Production Facilities Onshore Offshore Location Weather Terrain Client Choices Local Resources Natural Resources Population Demographics Industries Education Materials Professions Crafts Equipment & Services

20 Location Oilfield Fixtures Reservoir Weather Terrain Onshore Offshore Production Facilities Pressure Temperature Area Character Local Resources Natural Resources Industries Materials Client Choices Population Demographics Education Professions Experiences Uncertainties Crafts Equipment & Services

21 Area Character Reservoir Pressure Temperature Oilfield Fixtures Production Facilities Onshore Offshore Location Weather Terrain Wells Oil Gas Water Power Export Client Choices Experiences Uncertainties OML Contract Options Build, own, operate Facility tariff Oil production tariff Gas compression tariff Water injection tariff Power generation tariff Lifting cost reward Production volume reward Facility performance System performance Equipment performance Target bonuses Supervised manpower Manpower Facilities administration Supply chain Warehousing International Assurance Standards Competence National Local Equipment & Services Materials Professions Crafts Natural Resources Industries Population Demographics Education Local Resources

22 Area Character Reservoir Pressure Temperature Oilfield Fixtures Production Facilities Onshore Offshore Location Weather Terrain Wells Oil Gas Water Power Export Client Choices Experiences Uncertainties OML Contract Options Build, own, operate Facility tariff Oil production tariff Gas compression tariff Water injection tariff Power generation tariff Lifting cost reward Production volume reward Facility performance System performance Equipment performance Target bonuses Supervised manpower Manpower Facilities administration Supply chain Warehousing Equipment Consumables Partnership Agreements Interfaces Integration Uncertainties Suppliers Subcontractors International 800 Elec 400 Inst National Services 1200 Mech Supply & Services 300 Weld Local 200 Plan Standards Competence Materials Professions Crafts Assurance Natural Resources Industries Population Demographics Education Local Resources

23 Area Character Reservoir Pressure Temperature Oilfield Fixtures Production Facilities Onshore Offshore Location Weather Terrain Wells Oil Gas Water Power Export Client Choices Experiences Uncertainties Contract Options Build, own, operate Facility tariff Oil production tariff Gas compression tariff Water injection tariff Power generation tariff Lifting cost reward Production volume reward Facility performance System performance Equipment performance Target bonuses Supervised manpower Manpower Facilities administration Supply chain Partnership Interfaces Integration Uncertainties Suppliers Subcontractors International Invitation to Tender National Local Equipment & Services Elec Inst Mec0h Weld Plan Equipment Materials Services Standards Competence Assurance Materials Professions Crafts Natural Resources Industries Population Demographics Education Local Resources

24 UK Energy Sector Partnership Opportunities Non Renewable Power Nuclear Power T&D & Storage Oil & Gas & Coal Gas Utilisation & Refining CHP Co Generation CCS Cleaner Coal Coal Super Critical Boilers Carbon Management De commissioning New Build Asset Management Protection & Control Renewable Distributed generation Energy Storage Regulation Advanced Metering Project Asset Management Drilling /Well Engineering Excellence Advanced Wells Unconventional Oil & Gas Advanced Metering / Control LNG GTL Refining Other derivatives Advanced Materials Advanced Materials Small Scale Renewable Power Transportation Fuels Hydro-electric : Consultancy/ management Solar Photovoltaics Solar Thermal Ground Storage Pumps Biofuels Fuel Cells Hydrogen Tide Stream Fuel cells Small Wind Small scale Biomass 24

25 Brazil's Contribution to Increasing World Oil Production Millions of Barrels of Incremental Oil Production Source IEA World Energy Outlook : New Policies Scenario

26 The UK is Committed to Partnership Interfaces Relationships Understanding Uncertainties

27 Britcham International Energy Seminar Local Content in the Oil and Gas industry Partnership for Sustainable Local Content Thank You Sue Whitbread PWX Limited