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Subsea Expo 2015: Technology is Raising the Bar to Meet the Industry’s Challenges

Subsea Expo 2015: Technology is Raising the Bar to Meet the Industry’s Challenges

04 February 2015

Subsea technology is being forced to raise the bar as a direct response to rising production costs and declining oil prices, according to Subsea UK chief executive Neil Gordon.

His remarks come ahead of next week’s Subsea Expo which will see 200 exhibitors showcase the latest innovation in technology.

The boss of Subsea UK admitted that last year’s celebration of huge growth is in stark contrast to the situation the industry finds itself in now.

He said: "A lot has happened in a year, last year at Subsea Expo we were celebrating a huge growth, predicting 100% growth in the next five years, talking about how many more people we needed within the industry.

"But about the middle of the year it became apparent that in the UKCS alone it was becoming a costly place for doing business.

"Some of the facts and figures that were coming out were that costs were going up year-on-year and production levels were falling down and production efficiency was falling.

"As that happened, the oil price about the start of July started to take its fall and carried on that trajectory so that compounded the scrutiny and urgency of looking at the cost base in the UK. With the oil price just bubbling around the $50 mark and we’re not sure how long it’s going to be here, the industry really now has a sense of absolute urgency to look at becoming more competitive not even just for now but for the future.”

From the 11-13th of February, more than 6,000 people from around the world will descend on Aberdeen to see some of the latest subsea technology in action.

more [source: Energy Voice]