Economic Report 2019
This results in increased technical and economic complexity across the basin, and leaves companies less able to take advantage of economies of scale.
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Figure 16: International Comparison of Unit Operating Costs
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Unit Operating Costs ($/boe - 2018 Money)
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United Kingdom
Brazil
Mexico (GoM)
United States (GoM)
Indonesia Norway
Angola Australia
Source: Rystad Energy, OGUK
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OGUK’s Efficiency Task Force (ETF) 15 provides the catalyst for cross-industry action to optimise operations across the basin. The ETF is focused on improving performance by facilitating initiatives which contribute towards optimising UOCs and further improving the basin’s global competitiveness. This work covers a range of business and operational processes including logistics, contracting, tendering, procurement and maintenance. Alongside this, the ETF promotes a culture of collaboration, with annual improvements in this area reported in OGUK and Deloitte’s Collaboration Index score. 16 Attracting New Investment It is important that the competitiveness of the UKCS is measured by more than just the cost of production. It is a combination of a number of factors, including:
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• The stability and predictability of the fiscal regime • The regulatory regime • The network of infrastructure
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• Commercial behaviours and the working relationships between companies • Access to a well-resourced supply chain and the right people and skills • The prospectivity and availability of proven resources and investment opportunities
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15 For further information, see OGUK’s Efficiency Hub www.oilandgasuk.co.uk/efficiencyhub/#efficiency-hub+category:efficiency-task-force 16 www2.deloitte.com/uk/en/pages/energy-and-resources/articles/collaborating-for-success-making -the-most-of-UKCS.html
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