Offshore Survey Shows Shift From Cost Cutting to Expanding Operations
Respondents to a survey indicated a 35% decrease in their focus on cost cutting, and a 12% increase in their preparation to expand operations.
Confidence in the outlook for expanding operations was reflected by responses related to near-term hiring decisions. Thirty-four percent of respondents’ operations are preparing to rehire workers; 36% (4% in the 2016 report) are “not hiring new workers but have stopped laying off workers,” while only 7% (47% in 2016) are continuing to lay off workers.
Suppliers were described as “improved” in how they offer alternative solutions by 45% of respondents. With oil prices above $60/bbl, the impetus for suppliers negotiating lower prices for their services appears to be waning. Twenty-eight percent of respondents perceived “negotiations on costs” to be worse than 2 years ago.
The use of automation by both respondents’ own companies vs. their suppliers were rated equally as “aren’t very automated, but personnel are studying the benefits it could offer,” the same as 2 years ago.
Smart technologies were perceived as reducing costs by 54% of the respondents, and 16% have not implemented any, nor plan to do so.
About 25% work with suppliers from the start of the idea to implement smart technologies, while 22% share their requirements but expect their suppliers to develop the technologies themselves, and about 22% develop them in house.
BW Offshore To Spin Off Its E&P Business BW Energy
BW Offshore plans to float its exploration and production unit BW Energy through an initial public offering in the first quarter of 2020.
On the Lighter Side: Moon(pool) Gazing in Peru
Take a look at these moonpool visitors.
A New Offshore Investment Cycle Is in the Making
The amount of oil and gas resources approved for development last year surpassed 20 billion BOE, the highest level seen since 2011. Telltale signs have emerged that we are entering a new offshore investment cycle.
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15 January 2020
14 January 2020
13 January 2020