Oil & Gas UK chief executive Deirdre Michie made a two-day fact-finding visit to East of England offshore companies this week to hear about their challenges during the industry downturn and discuss future opportunities.
Invited by the East of England Energy Group (EEEGR), she travelled from her office in Aberdeen to meet its members in Great Yarmouth and Norwich to discuss how their businesses had been affected, their future plans and opportunities ahead.
She was also looking to discover more about business in the southern North Sea before she takes to the stage at EEEGR’s SNS2016 conference in March to address the conference.
Deirdre Michie will be the first speaker on the main stage of EEEGR’s flagship conference on March 2 at the Norfolk Showground, six days after she presents Oil & Gas UK’s new forecasts on February 25.
Chief executive of the Oil & Gas Authority (OGA) Andy Samuel will also address the conference – expected to attract more than 500 delegates and more than 60 exhibitors – attracting top level speakers from across the oil & gas, renewables and nuclear industry.
Accompanied by EEEGR chief executive Simon Gray and chairman Patrick Phelan, Deirdre Michie visited exploration and production company Perenco, safety training company Petans, Shell UK’s Bacton Gas Terminal, where the first gas from the new Cygnus gas field is expected to come in later this year, Lowestoft College; subsea to surface company Acteon and offshore installation and maintenance contractor Seajacks, where she toured the Kraken jack-up vessel in Great Yarmouth harbour.
She said: “There is no question that businesses in this region are key to the success of the UK oil and gas industry and make a really important contribution, servicing both the offshore southern North Sea and export markets.
“I’ve been hugely impressed by the ingenuity and scale of the world-class companies and projects here in East Anglia, and the determination and drive of those leading and working in the industry.
“Oil & Gas UK is delighted to be returning to this region very soon - presenting our new forecasts on 25 February and then speaking at EEEGR’s southern North Sea conference on March 2 and 3 .”
Simon Gray added: “It’s great to see Deidre’s commitment to our region and for her to be able to see the diversity of the supply chain, skills and training facilities and the innovation that can be found in the East of England.
“Whilst we see difficult times ahead in the oil and gas sector, there are a few glimmers of hope with gas from the Cygnus field, the largest gas discovery in some 25 years, to arrive at the Bacton gas terminal in the next few months providing additional security of supply for a number of years to come.
“The Secretary of State’s recent announcement of the construction of up to 50 new gas fired power stations is bound to have a positive impact upon the Southern North Sea gas basin.”
Deirdre also reflected on the impact the low price of oil and gas is having on the wider industry: “Times are tough for industry and are likely to stay tough. However, I believe – and I hope Government also recognise - that the value of our industry is more than just revenue from the sale of oil and gas. This industry provides a secure supply of energy for the country, 375,000 jobs and countless technological innovations – whilst receiving no subsidies. That’s a truly impressive feat.
“We are now a 50 year old industry and whilst that brings with it great depth of knowledge and expertise, it puts us in a more challenging stage of our life than other basins. To put it simply, we are at a cross roads and find ourselves fighting to retain the scale of our industry – here in East Anglia and across the country, from Aberdeen to Plymouth.
“I am confident industry will continue its hard task to reduce costs and become more efficient. With up to 20 billion barrels of oil and gas still out there, there is still plenty to play for; we must ensure that grasp the maximum potential from the UK’s waters.”