I heard one word used a lot at a recent oil and gas event. But the evidence wasn’t always consistent related to that word in question—“collaboration.” It is often the case that during tough times, industry initiatives aimed at fostering greater collaboration to increase efficiencies (and reduce costs) come to the fore. I’ve certainly seen it the last couple of laps round this particular track since I began covering this industry.
Attending the excellent Subsea Expo in sunny Aberdeen, Scotland, (yes, you read that correctly) last month, the blue skies seemed to give many attendees a sunny disposition themselves. A cautious optimism pervaded the show floor.
Listening to the keynote presentations, the speakers from both operator and service companies gave insightful talks on the industry’s current status under the theme “Driving Efficiency through Technology.” All six mentioned the word collaboration several.
There was evidence that collaboration between operators and service companies is happening and paying real dividends. There was a particularly strong example of one between Subsea 7 and six operators with their DSVi (Diving Support Vessel Initiative) highlighting how that arrangement across 40 small North Sea projects since 2009 is benefiting all those involved, with cost-sharing and dedicated long-term inspection, maintenance and repair support maximizing efficiencies. It’s a win-win arrangement both operationally and financially.
Another speaker stressed the need for collaborative contracting and fit-for-purpose technology, with industrywide collaboration opening up the way to increasing the total value for all concerned.
The problem is that the oil and gas business is inherently risk-averse, especially operators. “Do nothing, defer, delay, have a great safety record, save money, get promoted!” was how one speaker described an oil company employee’s career progression path. And he was from an oil company. Ouch!
As another oil company speaker also commented, “We should not waste a good crisis. It’s time to show that we are making progress. It’s time to get back to basics and do the basics well.”
I agree. But perhaps the basics should have started in that self-same session, where it became increasingly apparent that—despite all the speakers giving presentations under the same theme—none had really spoken to each other in much detail ahead of the event to compare their subject matter.
The duplication of much of the content in some of the slides eventually led to one or two wry smiles between them and a comment from more than one to the audience that “perhaps I should have talked to the previous speaker before I chose this slide.”
I’m not trying to cast aspersions on any of the speakers here, but it was a slightly amusing and very telling example of how lip service can be given to a vital subject, in this case collaboration, while the evidence is somewhat to the contrary. Collaboration can only occur when there is open communication between all concerned. Otherwise it’s just hot air.
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