Over 2016, stakeholders in the oil and gas industry are becoming clearer about what needs to be done to return to the ‘good times’. As Deloitte’s US Oil & Gas leader John England described, the industry at first responded by experiencing the five stages of grief:

McKinsey Energy Insights have released their latest Global Energy Demand Outlook video report, providing valuable insight into the global energy landscape until 2050. Taking into account statistics from 21 regions, 25 sectors, and 34 fuel types, the video report has laid out potential scenarios that the offshore industry could face in the next 35 years.

A requirement to understand decommissioning costs is becoming more important as operators in maturing basins begin to make decisions on their oldest of assets. While definitive costs are still to be put on paper by operators, the supply chain, and trade associations alike, feel that cost uncertainty may be preventing some decommissioning projects from happening.

Oil & Gas UK’s most recent Decommissioning Insight Survey gave the oil and gas industry the best intelligence and insight into decommissioning costs yet. Between 2015 and 2024, Oil & Gas UK anticipate over £16.9 billion will be spent on decommissioning on the UK Continental Shelf (UKCS) alone – with 45% of the cost going towards the plugging and abandonment of wells. More insight into the costs outlined in the Decommissioning Insight Survey can be seen on our infographic.

There was little surprise when Subsea UK revealed in June 2016 that 90% of respondents to their survey had recorded a decrease in sales over the previous 18 months. As Subsea UK’s Chief Executive Neil Gordon explained, “The decrease in the oil price and subsequent industry-wide downturn has seen a massive reduction in CAPEX and OPEX budgets worldwide… putting the UK sector’s enviable world-leading position under threat.”

Despite the drop in sales and confidence in the industry, the UK subsea sector is maintaining its high levels of investment in technology with almost 80% of respondents still investing in new technology to secure long-term future growth. With an appetite to invest their way out of the industry’s dip, we take a look at the state of the subsea technology industry and how the future of the UKCS industry depends on it too.

With oil prices increasing almost week-on-week in Q2 of 2016 globally, and new reservoir discovery stories littering the industry press, it’s fair to say the offshore industry is in a far more buoyant mood than they were six months ago.

With the surge in oil rig count the industry has responded by increasing offshore field exploration activity. One region, in particular, has made significant strides to tap into new reserves, and that region is Norway.