Ask the experts Your technology questions answered

Predictions and precautions What areas to look out for this year and beyond

The future of clean energy What the next decade holds for renewables

mediAPlAneT TAkes full resPonsibiliTY for All conTenT in This indePendenT suPPlemenT disTribuTed WiThin The sundAY TelegrAPh

offshore technology

No. 2 / Jan. ’10

In depth: Your conclusive guide to the current and future prospects of the UK’s most exciting industry.

In depth: Your conclusive guide to the current and future prospects of the UK’s most exciting industry.

discover subsea opportunities

have a healthy businessThe importance of health and safety in offshore

get professional insight industry leaders share their secrets for development and success

technology 6tIps

make your busINess proser

IN 2010

Photo: PAUL WoLF

Deeper expertisefor a safer world.www.lr.org

for development and success

An independent supplement distributed within the sundAY telegrsundAY telegrsund Aph2 · jAnuArYrYr 2010Y 2010Y

UK subsea technology is world leading

Industry body Subsea UK champions the rapidly-growing subsea oil and gas sector that contributes £5 billion to the UK economy and employs 40,000 people. Chief executive, Alistair Birnie, takes a look at its prospects and the challenges in advance of Europe’s largest subsea event – Subsea 2010 – next week.

For more than 40 years oil and For more than 40 years oil and Fgas have been pumped out Fgas have been pumped out Ffrom below the North Sea usFfrom below the North Sea usF -ing fixed offshore platforms. Fing fixed offshore platforms. F

Since the eighties however our ener-gy supplies derived from hydrocar-bons are being increasingly extract-ed using the most ingenious systems under the sea including floating pro-ductions units, vessels and remote-ly operated vehicles. This method of production is known as subsea and it is an area where the UK leads the way.

UK companies have to date devel-oped some of the most successful techniques and underlying technol-ogies to enable efficient, economi-cal and environmentally sound sub-sea oil and gas extraction. Now that the North Sea is nearing the half way point of produced versus remain-ing reserves, established operators and new entrants alike are capitalis-ing on this expertise to develop even more innovative solutions to extract what remains.

North Sea know-how is being ex-ploited on oilfield developments around the world and already over

50% of the UK’s subsea revenues come from international work and this trend is growing.

Renewable demandBut demand is starting to out-strip our ability to produce re-

placement reserves and offshore re-newable energy is introducing a new dimension for us, meaning that ener-gy in all its forms is now highly stra-tegic. Key to the future sustainabili-ty of this sector in the UK is therefore meeting the critical demand for suit-ably qualified people and bringing new technology to market faster.

The offshore renewable market in the UK will need around 100,000 more engineers and professionals in the years to come. With £200 billion at stake on the renewables front and a £500 billion market up for grabs in global upstream oil and gas over the next ten years, the prize is massive with opportunities throughout the supply chain.

In the UK, we have a real advantage in terms of the skills already in place that have been developed through tackling some of the world’s most

difficult oil and gas engineering chal-lenges.

UK skillsWe have secured our lead around the world through mas-

sive leaps in technology and exper-tise but we cannot take our foot off the pedal. We must be even smarter in the way we do business and how we solve the more complex challeng-es.

The subsea oil and gas supply chain has experience of delivering at the highest level and offering cutting edge solutions with an absolute pri-ority and focus on safety.

The offshore renewable indus-try needs to embrace this and Sub-sea UK is working to develop further meaningful collaboration between the two industries, Government and academia to deliver skilled people and effective technology develop-ment that will allow the UK to capi-talise on both energy markets and therefore impact positively on secu-rity of energy supply now and in the future.

“in the developing economies there will be increase in demand.”

Looking aheadernst and Young’s Andy brogan gives his predictions and precautions for 2010

We recommend

pAge 14

Propelling forward p. 061. Find out what the year holds for offshore wind farming

The next generation p. 122. how new blood could be the boost for the offshore industry

offshore technology, 2nd edition, january 2010

Country Manager: Willem de geerBusiness Developer: darren clarke Sub-editor: danielle stagg

responsible for this issueProject Manager: dominic WebberPhone: 02076654406E-mail: dominic.webber@mediaplanet.com

Distributed with: the sundaytelegraph, telegraph, t january 2010Print: telegraph telegraph t media group

Mediaplanet contact information: Phone: 02076654400Fax: 02076654419E-mail: info.uk@mediaplanet.com

we make our readers succeed!

Alistair BirnieChief executive, subsea uK

Strive to be the best

1 Developing new talent takes time and money in order to

make a real impact and while we have a well-deserved reputation in training and skills development with some innovative initiatives we cannot be complacent.

Be proactive

2 New initiatives to establish the needs for the future, cou-

pled with robust programmes of learning will ensure we have the best of the best, ready to do whatev-best of the best, ready to do whatev-best of the best, ready to do whatever is asked of them to achieve these aims throughout the energy sector.aims throughout the energy sector.

my best tips

12

Challenges

A national conference to inform and promote debate on the important factors that impact on the development of maritime renewable energy in the UK, with

a special focus on the potential for harnessing offshore wind, tidal and wave energy.

Wednesday 10 & Thursday 11 February 2010The Historic Assembly Rooms, Bath

Further details at www.maritimeindustries.org

Society of Maritime IndustriesThe voice of the UK’s maritime engineering sector

28-29 Threadneedle Street, London EC2R 8AY Telephone: 020 7628 2555

Investing in UK Maritime Renewable Energy:

Engineering Challenges & Business Opportunities

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providing best-in-class service and support.www.castrol.com/offshore

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AN INDEPENDENT SUPPLEMENT DISTRIBUTED WITHIN THE SUNDAY TELEGRAPH4 · JANUARY 2010

It could perhaps turn out to be the ultimate case of poacher becoming gamekeeper but one of the country’s leading minds on innovation in the o� shore industry is predicting the most exciting potential future for o� shore technology is dealing with the carbon created by burning fossil fuels.

Bob Keiller is CEO of Scottish o� -shore engineering company, PSN, whose day to day work normally in-volves helping companies to fi nd ev-er more innovative ways to discov-er, access and exploit oil and gas de-posits. However, Keiller is convinced that in ten to twenty years time the really exciting development will still be in drilling and exploration, only not for oil, but instead for areas where liquidised CO2 can be stored.

“It’s potentially a fascinating, ex-citing scenario for the North Sea,” he says.

“After decades of drilling for oil and gas we could actually turn to al-lowing the rest of Europe to store their captured carbon there so the harmful e� ect of burning fossil fuels for energy can be nullifi ed.”

Fossil futureAt the heart of the carbon capture and storage future scenario is a belief that demand for energy will rise to a point where it outstrips supply, un-less fossil fuels are burned for several decades to come.

“Renewables are obviously very exciting but I can’t see them being at a commercial stage to plug the energy gap we’re going to get if de-mand keeps rising and we don’t keep on burning oil and gas, and possibly, coal,” Keiller explains.

“So, if that’s the case, the big test for the planet is capturing all that CO2 and storing it. The North Sea is in very good shape because we know

it’s rock structures very well because it’s been so well mapped.”

This could lead to the ultimate re-versal in the o� shore industry of drilling for what are known as aq-uifers. These underground lakes would make the perfect repository in to which liquefi ed CO2 could be pumped because they have been in-tact for millions of years and so, af-ter soaking up the carbon solution, should, in theory, remain sealed.

For Keiller the truly fascinating fu-ture for the o� shore industry is go-ing to a mix of continuing to develop o� shore oil and gas fi elds, as well as building renewable wind, wave and tidal farms, at the same time as de-vising the infrastructure for carbon storage.

This could lead to the o� shore in-dustry not only drilling for suitable storage sites but also devising the technology to pump liquidised CO2 in to the areas as well as building the piping or shipping infrastructure that would bring the carbon to each well.

BobKellierCEO of PSN.

WHAT THE FUTURE HOLDS FOR THE NORTH SEA

SEAN HARGRAVE

info.uk@mediaplanet.com

NEWS

PERSEVERE WITH

INNOVATION

PERSEVERE WITH

1TIP

Question: ■ Where are the most interesting opportunities in the offshore industry going to develop?

Answer: ■ There are many areas but in the long term, the most fascinating could be carbon capture and storage.

Wichita Clutch Ampthill Road, Bedford / MK42 9RD, UK / tel. +44 (0) 1234 350 311 / fax. +44 (0) 1234 350 317 / e-mail. clutch@wichita.co.uk / www.wichita.co.uk

Introducing AquaMaKKs®, the industry’s most advanced water-cooled brake

With its patented water jacket design for superior heat dissipation and a new brake design for easy installation and maintenance, the revolutionary AquaMaKKs is the ultimate brake for heavy-duty dynamic braking applications.

The unique water jacket design maximises thermal transfer capacity. This allows for increased torque and greater absorption of heat in a smaller package.

It puts the brakes on drilling downtime. The new AquaMaKKs is also easier to install, service and maintain than other water-cooled brakes. With far fewer parts and a simplified shim design, the disassembly and reassembly of the brake is fast and easy, significantly reducing downtime.

january 2010 · 5an independent supplement distributed within the sunday telegraph

news

Few people will make predictions in the offshore industry but probably one of the safest bets is that the 43 per cent of the UK’s oil and gas produc-tion currently accounted for by sub-sea is set to rise.

The industry’s technology body, which collates requirements from its members and then invites compa-nies and universities to develop solu-tions, has certainly seen requests for subsea technology rise so much that it has run a Subsea Challenge to de-velop innovative underwater tech-nology.

Sea bed processThis increased interest is leading to many technology challenges, partic-ularly in processing on the sea bed and powering equipment, explains

the ITF’s Managing Director, Neil Poxon. “With subsea you can either pump the oil and gas in to an existing pipe infrastructure so it can be proc-essed or you can process at the sea floor,” he says.

“It makes sense to do it at the sea floor and so operators are increasing-ly interested in improving the way they can separate oil and gas from what the well produces and put back water which has been properly treat-ed to kill bacteria and to remove the sludge and debris. We’ve currently got a very interesting project testing new subsea treatment technology in Oslo.”

This is just one of several new projects which are under develop-ment. Other areas of heightened re-search surround providing long dis-tance links between subsea wells and existing pipes and platforms as well as providing power to remote subsea equipment.

“There’s a lot of attention going into how subsea technology can be powered because it tends to be a long way from an energy source,” explains Poxon. “This can be looking at more efficient cabling which doesn’t lose power over huge distances but could also mean renewables are deployed. It’s likely that future processors on the sea bed could be powered by off-shore wind turbines as this would be a great source of local energy.”.

Neil PoxonManaging Director or ITF

The offshore oil and gas sector’s Industry Technology Faciliator (ITF) has been focusing on helping member companies develop the new subsea technology needed to reach remote discoveries and fully exhaust all deposits left in mature fields.

news

hIgh hoPeSFuture technological developments will allow for great opportunities in subsea.Photo: MayuMi terao

How technology is helping operators work better subsea

sean harfrave

info.uk@mediaplanet.com

best tips from ryan mcpherson, senior technology analyst at itf

3

Utilise technology

1 Nanotechnology is blue sky thinking but sensors could be

thrown down a well and give all kinds of information. It could be used to make better catalysts for chemical reactions, or used for finding ways to push more oil out of the reservoir and into the wells and for better surveillance inside the reservoir.

Widen your reach

2 Wireless technologies could provide data from places in

the wellbore which are out of reach of cables. The key to widespread ap-plication of wireless technology is power and bandwidth on demand.

Better current developments

3 Casing drilling, Through Tub-ing Drilling (TTD) and the

drilling of multi-lateral wells are examples of technologies that the industry would like to see en-hanced. Instability in well bores is another industry-wide dilemma arising from problems such as col-lapsed holes, sidetrack holes, lost tools and abandonment of wells prior to reaching targets.

An independent supplement distributed within the ph6 · jAnuArYrYr 2010Y 2010Y

Massive boost for offshore wind by 2020

The nine new offshore wind sites will generate 32Gw of electricity by 2020 which should be enough to power a quarter of the country’s electricity needs.

The ‘Round 3’ announcement fol-lows two rounds of smaller areas be-ing allotted to wind farms and marks the massive green light for offshore wind energy the renewables indus-try was calling for.

As an island nation, the UK is very rich in the clean energy source and is estimated to have 40% of Europe’s wind flowing over its land and terri-torial waters.

With the government committed to raising the proportion of the coun-try’s energy requirements which comes from renewable sources from 5% today to 15% by 2020, wind cam-paigners have long been calling for onshore farms to be supplemented by huge offshore locations.

UK gainHowever, the British Wind Energy Association is still warning the Gov-Association is still warning the Gov-Association is still warning the Government must do more to ensure that the new farms build a sustaina-ble industry in the UK and that there is investment in the necessary infra-structure.

“We need to ensure the UK also benefits through a boost in manu-

facturing, engineering and skills: but this will only happen if addition-al action is taken by the Government through working actively to create coastal manufacturing hubs,” points out BWEA Chief Executive Maria Mc-Caffrey.

“This will encourage wind energy manufacturing companies to locate in the UK and enable British busi-

nesses to take full advantage of the supply chain opportunities, for the benefit of jobs and the UK economy as well as Britain’s energy security.”

Beyond turbinesThe BWEA is also helping to liaise with the MOD and the commercial aviation authorities to ensure that the roll out of offshore wind does not interfere with radar. According to Nicola Vaughan, Head of Aviation at BWEA, the wind industry is innovat-ing a variety of solutions.

“You can have an area where you insist planes carry a transponder which identifies them and so differ-entiates them from turbines,” she says. “However, it isn’t good for ar-eas the MOD wants to identify hos-tile aircraft. So, you can also use ‘in-fill’ radar where you combine the original radar scan with a new ra-dar which has something obscuring the wind farm, such as a hill, but it can still see above. That way you can, in layman’s terms, cut and paste the images.

“There’s also a lot of work being done also on designing blades to be more ‘stealth’ like so they have a lower radar cross section. Some of the early tests of new materials and slightly different designs are show-slightly different designs are show-slightly different designs are showing improvements.”

“by 2015 we could have 30% of wind coming from offshore turbines, instead of around 1% today.”

Anders Soee-Jensenpresident of Vestas Offshore

SeAn hArgrAveAveA

info.uk@mediaplanet.com

Question:■■ what does the announcement of nine new offshore wind farms mean for energy in the uK?

Answer:■■ it is a massive step forward for the wind industry but campaigners believe more investment is needed to ensure the uK gets most of the benefit

2

1 2

A cleAn stArt1. Farms like this one outside copenhagen could become a popular sight all around the UK.2. renewable energy offers great opportunity for the UK market.3. An engineer works on the construction of an offshore wind farm.4. A healthy option- the future of energy.Photos: istockPhoto

ShowcaSe

news

FactS

the UK is europe’s windiest country, ■■

accounting for 40% of europe’s wind Last year wind produced around 4 Gw ■■

of power in the UKthis was created by, according to the ■■

Bwea, 2,764 onshore and offshore tur-, 2,764 onshore and offshore tur-, 2,764 onshore and offshore turbines and is sufficient to power 2.275m homes, saving 4.5m tonnes of carbon re-leases

the nine new licences granted for ■■

massive offshore wind farms at the start of the month will produce an additional 32 Gw

at this level, wind could be supplyat this level, wind could be supplya -■■

ing a quarter of the UK’s electricity needs by 2020

work on the new farms is expected to ■■

begin in 2014. the largest will produce 9 Gw, the smallest 0.6 Gw

estimates suggest this could make ■■

clean energy a £70bn industry in the UK by 2020, possibly providing up to 70,000 jobs

By 2020 the crown estate is estimat-■■

ing marine renewables could produce 700 Mw (0.7 Gw of power)

Within two months a deal to ■■set up the country’s first com-mercial wave or tidal farm is expected to be signed between Crown Estates and one of the bidders who rose to ‘preferred bidder’ status at the end of last year.

The Pentland Firth marine en-ergy project will be built between the Scottish mainland and the is-lands of Orkney and will play a ma-jor part of the The Crown Estate’s commitment to marine renewa-bles creating 700 Mw of electricity by 2020. This would be sufficient to power 500,000 homes.

The organisation, which con-trols development in UK waters, was overwhelmed when more than 40 bidders registered an in-terest in running the country’s first commercial scale marine re-newables project.

Bright startFor those working in the fledgling marine renewables industry the deal will be a welcome recognition of their long-held conviction that the sector can provide just as valu-able part in the UK’s energy mix as offshore wind.

While wind now has 20 years of experience behind it, wave and tidal technology has only recent-ly started to progress to a point where it has been rigorously test-ed at locations off the coast of The Shetlands and Devon. In fact, Brit-ish technology is currently be-ing used off the coast of Portugal. The Pelamis resembles a floating snake which is rocked by wave mo-tion which creates energy. The Ed-inburgh company behind it, PWP, recently signed a joint venture deal with Swedish power compa-ny, Vattenfall, to develop a 20 Mw project off the coast of Shetland.

Predictability keyPatrick Carnie, Maritime Strategy Manager at QinetiQ, which tests marine renewables technology, predicts a bright future for wave and tidal energy because, as an is-land, it makes perfect sense for the UK. “We’re surrounded by water so it gives us a perfect opportunity to create clean power,” he says.

“We’ve got the technology at a stage where several devices are proven and we just now need to get the first commercial projects going. The beauty of marine re-newables is, particularly with tid-al, it’s so predictable, you can plan ahead because we know what the tides will be doing. With offshore wind moving on apace there will be plenty of cabling and infrastruc-ture through which marine devic-es to send power back to shore.”es to send power back to shore.”

Marine power set for green lightUtilise

nAtUrAl resoUrces

An independent supplement distributed within the sundAY telegrAph

Utilise nAtAtA UrAl

2tiP

3

1 4

7

8 · January 2010 an independent supplement distributed within the sunday telegraph

Question: As reserves become deeper and remote how can operators keep up with increased energy demand?Answer: Innovation allows operators to open up fields that could not previously be exploited, such as Statoil’s Snohvit field in the Arctic Circle, says Gunnar Myreboe.

Nearly ten years ago Norwegian op-■■erator Statoil was facing up to the same quandary many companies are contend-ing with today.

While it may not be true of all new res-ervoirs, the overriding characteristic for producing oil and gas in the twenty first century is that many of the shallower fields are already in production.

To keep up with increasing global en-ergy demands, producers are having to exploit reserves whose depth or remote-ness has rendered them beyond reach, or economically unattractive, until very re-cently.

Executive Vice President at Statoil, Gunnar Myreboe, reveals the Snohvit (Norwegian for ‘Snow White’) reserves had been known about since the 1980s but it was only at the start of the new mil-lennium that the company felt it had the necessary technology and practices in place to exploit the field.

“It’s about 340m deep and it’s remote

but that wasn’t the main concern,” he says.

“We had to be assured that we could not only set up the wells but that we could get the gas to the coast so it could be convert-ed in to LNG. We had to have a reliable and controllable production system end to end.

“It wasn’t just drilling the wells, be-cause working offshore in the Norwegian Sea or North Sea can be just as inhospita-ble; the real question was can we get the pipework and processing plant in place and control the whole process at a cost which makes it economically viable. It was basically like asking a billion krone question.”

A pipe dreamSeveral years were spent developing the Snohvit field before production began in 2007.

Estimates suggest it contains 200bn cubic metres of natural gas and it should keep producing for the next 30 years. As such, it is around the same size and of

the same significance as Norway’s Frigg field which supplied much of the UK’s de-mand for natural gas until it ceased pro-duction in 2004.

For Myreboe, who oversaw the Snovelt project before being raised to the Statoil board, the most ingenious part is perhaps the least glamorous.

“The pipe that brings the gas to shore has to go through some really hilly ter-rain underwater, so it’s depth can vary from 60m to 450m,” he says.

“There’s naturally a lot of liquids and gas in the pipeline and, from the shore, we also pump in glycol, to prevent it freez-ing so it keeps moving. When it reaches the shore the pipe’s contents have to go through a separator to take out the ‘slugs’ so we can get the gas out. It’s then cooled to make LNG which is pumped on to ships that dock at the edge of the process-ing plant. The main markets are in Spain and America.”

Island developmentIn fact, this facility was quite a feat in its

own right. A small island just off the coast of Norway was used for the processing plant with a new 2km tunnel dug under the seabed for staff and supplies to reach the plant. It is the only visible part of the field which is all completely underwater.

It is at the facility that the CO2, which comprises around 6% of the liquid and gas mix that reaches shore, is captured and then pumped back to the ocean floor for storage.

“There’s quite a nice environmental as-pect to the project,” says Myreboe.

“We capture the CO2 and pump it back down in to a reservoir below the field so we’re taken the carbon out of the gas be-fore it is shipped.

“It’s also nice that there’s only a processing facility on a small island off-shore, nearly everything to do with the field is actually submerged where it’s nev-er seen.”

Learn why continued innovation is key to going further and deeper

sean hargrave

info.uk@mediaplanet.com

leader to leader

“nearly everything to do with the field is actually submerged where it’s never seen”Gunnar MyreboeExecutive Vice President, Statoil

inspiration

Thanks to PRIMaRE, the South West is fast becoming one of the world’s most important centres for the development of renewable energy sources.

Formed by the Universities of Plymouth and Exeter and funded by the South West Regional Development Agen-cy, this ‘virtual institute’, brings together a unique team of world-class researchers to provide unparalleled expertise and research capability to address all aspects of Marine Renewable Energy.

Pioneering facilities such as the South West Moorings Test Facility, a new research vessel and the forthcoming Wave Testing Tank are available to businesses in order to exploit the opportunities presented by marine renewables.

To complement its research activity, PRIMaRE has ap-pointed a dedicated team of specialists, who are working closely with the business community and other regional initiatives in order to accelerate growth and position the

South West of England as a global leader in Marine Renew-able Energy Development.

The PRIMaRE team actively promotes the transfer of knowl-edge and expertise to the business community, build rela-tionships between research and business and maintain an active presence within industry networks, to create com-mercial opportunity.

PRIMaRE is also directly linked to Wave Hub, a new wave farm being established ten miles o� the North Cornwall coast. This will provide a unique facility to evaluate arrays of wave energy conversion devices to generate power to the National Grid system.

To �nd out more:Call: 0800 052 5600Email: enquiries@primare.org Visit: www.primare.org

THE POWER BEHIND RENEWABLE ENERGY

January 2010 · 9an independent supplement distributed within the sunday telegraph

inspiration

MoVInG forwArdInnovation is allowing for the tapping of previously unreachable reserves says Gunnar MyreboePhoto: Statoil

bE PIonEErInGbE PIonEErInG

3TIP

Plan thoroughly

1 Sufficiently matured plans are the best tool to manage a

project. Adjust plans in the plan-ning phase of the project, not later. Once the development phase starts, adjustments are expensive and may have unforeseeable out-comes.

Use effective technology

2 Innovative technology may realise your project, but make

sure it has been properly matured and tested. Preparedness planning should also be in place for a plan b technology solution, if needed.

Know your suppliers

3 A close and trustworthy rela-tionship to project suppliers

is a key. Ensure high quality sup-pliers that hold the right capabili-ties for the job.

Cooperate well

4 An open stakeholder dialogue with local, regional and na-

tional governments and local com-munities where you build is essen-tial for mutual understanding and alignment

Gunnar’s best tips

4

An indepenedent supplement distributed within the sundAAn indepenedent supplement distributed within the sundAAn indepenedent supplement distributed within the sund y telegrAy telegrA Aph10 · jAnuAry 2010

Why maintaining safety is key for success

When the Health and Safety Execu-tive published the results of its study in to the safety procedures of the off-shore oil and gas industry four years ago, the findings made uncomforta-ble reading.

However, last summer, when it published an update on the industry and how it had reacted to harsh criti-cism in the KP3 report, HSE’s Head of Offshore, Steve Walker, reveals there was significant progress.

“We don’t think the industry has cracked it yet but there have been significant improvements made since we published the KP3 report,” he says.

“To be honest there needed to be because the report was pretty harsh but, having said that, it is encourag-ing to see the industry taking posi-tive steps towards improvements.”

Maintenance keyThe main thrust of the HSE’s criti-

cisms, which the industry has react-ed positively to, focussed on offshore infrastructure more than issues sur-rounding staff training, which are generally regarded to be well devel-oped.

The real problem the HSE found, Walker explains, was that offshore assets – such as platforms, drills and

pipes – were not being well main-tained.

“We basically have a situation where a lot of the assets that were deployed offshore in the UK were ex-deployed offshore in the UK were ex-deployed offshore in the UK were expected to last for fifteen to twenty years and now many of them are at that stage or perhaps a little older,” he says.

“It means that just as with owning an old car, you have to put a lot more work in to keeping the equipment working well and safe.

“Unfortunately when we carried out spot checks for the KP3 report it became clear that the procedures in place were not sufficient and that assets were being allowed to deteri-orate.

“Obviously the really dangerous thing that we are most concerned about is corrosion because it’s when you get oil and gas in to the open environment that you get bad ac-cidents. It’s why it’s so important that the industry takes in to account the need to manage the full life cycle of their offshore assets and put main-tenance and safety at the heart of their organisations from the top all the way down.”

Ageing agendaHence Walker reveals that the year ahead, from April 2010 to April 2011, will see the HSE focussing on the subject of ageing. It will form the thrust of inspections by the organi-sation which will be communicating the need for old infrastructure not only to be well maintained but that diagnostic testing is used regular-ly to pick up any potential problems with assets before they develop to a point where they could threaten safety.

“it’s so important that the industry puts maintenance and safety at the heart of their organisations.”Steve Walkerhead of Offshore, health and safety executive

Question:■■ what is being done to ensure safety levels can be improved in the industry despite the naturally hostile offshore environment?

Answer:■■ the industry’s regulator, the hse, is focusing on ageing and the need to maintain offshore equipment to prevent accidents.

Working togetherBy encouraging safe work practises, you’re more likely to have a happier, healthier companyPhoto: hazlan abdul hakim

InspIratIon

Facts

the Key Peformance 3 (KP3) report ■■

was published in November 2007 and was the result of three years of investi-gations, involving more than 100 spot checks. It was prompted by ‘integrity fail-ures’ in equipment which led to acciden-tal hydrocarbon releases and two deaths

a follow-on report on the impact of a follow-on report on the impact of a■■KP3’s findings found that generally the industry was committing to improved maintenance regimes, leadership pro-grammes in managing the integrity of as-sets, better training on hazard awareness

and avoidance and encouraging a more open environment where lessons are shared between organisations

Figures released for accidents off-■■

shore during april ’08-March ’09 show that for the second year running there were no fatalities and major injuries dropped by 14 to 30 reported incidents (compared to the same period the year before)

Hydrocarbon releases, which are re-■■

garded as potential precursors to serious incidents, were also down from 74 to 61

How we Made It

proMote SAfety

proMote SAfety

4tip

What is the greatest impact on ■■

h&S and where can the biggest gains be made?

! North Sea Assets are aging and face challenges regard-

ing mechanical integrity. In addi-tion, they are operating at condi-tions that are different from those for which they were originally de-signed .

At the same time, the engineers charged with maintaining these assets have less experience than those leaving the industry. This means there is growing use of out-side companies to fill the skills gap. This, in turn, means that knowl-edge of the assets is lost from the operating company over time.

The challenge for the industry is ensuring that equipment includ-ing control and safety systems and flare systems in addition to oper-ating procedures are still valid for the current operating conditions.

Gains to health and safety can be achieved by capturing the ex-perience and knowledge of senior engineers into Decision Support Systems, so that the operational knowledge of the asset remains in-tegral to the operating company and is not dispersed amongst the consultant community.

in which areas is there still ■■

much h&S work to be done?

! ”There are several opportuni-ties for improvement. Firstly,

companies are looking at the con-tinuing professional development needs of their staff, aiming to get them more real-world experience of operational issues.

Secondly, there are several good examples of clients deploying de-cision support applications and ad-vanced control applications to cap-ture process knowledge more sys-tematically, but it remains far from commonplace in the industry.

Finally, operators need to con-tinually evaluate if their control and safety systems reflect the cur-rent operation of the asset.

Equally, they need to carry out such assessments in a more sys-tematic manner and ensure that engineers are properly trained to conduct these studies.

QuestIoN & aNswerpaul taylortaylortsenior Vice president, emeA, AspentAspentAspen echtecht

sean hargrave

info.uk@mediaplanet.cominfo.uk@mediaplanet.com

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The offshore industry provides a myriad of job opportunities for school leavers and graduates, as well as those considering a career change, but it is not often a field which young people are familiar with.

In addition, many engineering-based industries report they feel the education system could be doing more to teach maths, science and technology to a better level where it is enjoyed by pupils enough for them to take the subjects at GCSE and A lev-el, and perhaps beyond.

Hence Opito, the Oil and Gas Acad-emy, is working with the British par-liaments as well as the Government and education authorities to pro-mote science, maths and technolo-gy teaching as well as raise the pro-file of the industry. In fact, the indus-try-funded body is currently liaising with education officials in Scotland who are revamping the country’s na-tional curriculum as well as reach-ing out to schools across Britain to let pupils know about the opportunities in oil and gas.

Good teachingUniversities are also regularly con-sulted with to ensure curriculums are as up to date with the latest tech-nology and practices used in the field as possible, as Mike Duncan, Skills and Learning Development Director at Opito, explains.

“We’re industry-funded to encour-age a flow of new blood to the indus-

try,” he says.“There’s often talk about an age-

ing demographic of oil and gas engi-neers, I don’t know how true that ac-tually is, but what is for sure is that there is a large demand for bright school leavers and graduates.

“The industry needs new blood be-cause it is evolving and it will need new skills in growing areas such as

subsea exploration and decommis-sioning and there’s also going to be shift towards renewables too.”

Showcase offshoreOne of the major points which Opito raises with school pupils and under-graduates is that the oil and gas in-dustry has more jobs onshore than offshore and so potential recruits needs not only think of the industry as men and women working on an offshore platform.

Nor is the industry’s recruitment drive all about graduates. Estimates suggest that the majority of peo-ple working offshore enter the in-dustry as technicians. To that end, Opito oversees an apprentice scheme which has provided more than 1000 jobs in the past decade.

Part of this work will see the organ-isation rework its web presences this year so they are more targetted at ex-year so they are more targetted at ex-year so they are more targetted at explaining the offshore industry to a young audience who are not aware of the variety of offshore roles on offer, Duncan explains.

“I was recently talking withpu-pils and when they said they wanted to be architects and lawyers, and so on, they were really surprised when i pointed they could pursue all of those careers from within the oil and gas industry.”

Bring in new blood to succeed in offshore

movinG forward. recruiters are turning to graduates and students in order to ensure their workforce has a wide range of skills. Photo: istockPhoto

sean hargrave

info.uk@mediaplanet.com

Question:■■ what is the oil and gas industry doing to attract new talent?

answer:■■ A range of engage-ment programmes with schools, colleges and universities are in place to attract new blood to help meet demand for new skills.

news

Strive for the beSt

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Strive for the beSt

5tip

FactsEnergy sector employment (exclud-■■

ing renewables) rose 10% between 2006 and 2007 to 40,700, which represents 23% of GB energy sector total.

around 10,000 jobs are estimated in ■■

clean fossil fuels and carbon capture and

storage in scotland.scotland has two coal-fired power ■■

stations, Longannet and cockenzie. together, the two stations provide ap-together, the two stations provide ap-tproximately 33% of scotland’s elec-tricity.

investigate qualificationsEmployers seek professionals with technical degree qualifi-

cations; such as mechanical, elec-trical, chemical and structural en-gineering degrees. Many compa-nies offer support to staff in obtain-ing post-graduate qualifications. For example, Robert Gordon Uni-versity offers oil and gas specific courses, including an MBA in oil and gas management.

where is there demand?Even in the recession, special-ist skills are still sought after.

Mechanical, structural, electrical and chemical (process) expertise are all in demand.

do your researchFind out where there are shortages and what opportu-

nities this presents. There are skills shortages in geologist and geophys-icist specialist areas, as employers look for new, harder-to-extract oil and gas fields. There is also a short-age of health and safety specialists.

better your skillsExplore whether you have transferable skills. Profes-

sionals with a background in chem-icals or the renewables sector may be able to use their expertise. Ac-countants, HR professionals, IT specialists and lawyers may also be able to cross over.

tips From ELiot DaviEs, DirEctor at oFFshorE rEcruitEr, hays EnErGy

Tel: +1 949 429 0127Fax: +1 949 209 3662www.atlantisrecruitment.com

Land or sea, we have the solution

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Demand shock is over as nationals rise to prominence

The world is about to enter an era where the nationally-owned oil and gas companies, even in countries without sufficient supplies, will rise to prominence. At the same time, Ernst & Young’s Andy Brogan predicts the ‘demand shock’ of the past decade is most over and more stable oil prices will remain.

The noughties was a tur-bulent decade for energy prices. As tiger economies, led ostensibly by China,

swelled demand oil prices, in par-ticular, rocketed like an uncapped well. Then the recession bit and de-mand fell and, with it, barrel prices returned to more familiar (yet still high) ground.

A decade of such extremes has left many in the industry wondering what will come next. However, ac-cording to the Global Head of Ernst & Young’s Gas and Oil Transactions Advisory Service, Andy Brogan, the next few years should be a lot calmer as the world emerges from recession.

“I think we’re going to see a con-tinuation of what we basically have at the moment,” Brogan explains.

“In the developing economies there will be increase in demand but this will probably be offset by stagna-tion in the developed Western econ-omies. So any increase in demand from the likes of China will probably be offset by stagnation in demand in Europe. I certainly don’t see anything like the demand shock we’ve had in recent years from China and Asia.”

Nationals shineBrogan’s other main prediction for the coming decade is a continued rise

in prominence of national oil and gas companies with Opec remaining im-portant but perhaps losing some of its influence. However, the real play-ers who potentially stand to lose the most influence, he believes, are the ‘majors’ the household names in oil and gas which are not owned by countries.

“I can see good supply revenues all round but particularly in coun-tries that are not traditionally part of Opec,” he says.

“I think the real big winners, the companies to watch out for, are the nationalised oil and gas companies in countries such as Russia, Bra-zil and across Africa as well as the more traditional producing coun-tries. I think companies like Aramco in Saudi, Petronet in India and China National Offshore Oil Corporation are going to have more prominence in the years to come with the major household names that are not gov-ernment owned slipping slightly in prominence.”

Novel partnersInterestingly, joint ventures could start to become a lot more common over the next few years, Brogan in-sists, as governments seek to work with experts who can help them ex-with experts who can help them ex-with experts who can help them exploit reserves that are proving ev-

er more difficult to tap in to. Hence, both the nationally-owned oil and gas companies as well as the ma-jors are well set to work with govern-ments around the globe.

“I think you could start to see an interesting development that coun-tries which import a lot of oil, such as India or China, getting involved in joint ventures to exploit it in other regions,” Brogan says.

“Reserves are getting harder to ex-“Reserves are getting harder to ex-“Reserves are getting harder to exploit. Brazil has discovered a lot of oil, for instance, but it’s pretty deep off-shore and Iraq has gone down the joint venture route. So, I can see a lot more partnership deals being struck as nationally-owned oil companies look for experts who have the latest technology and expert engineers.”

These partnerships are going to prove fascinating to observe, Brogan predicts.

They are likely to see the major household names, which are not gov-household names, which are not gov-household names, which are not government owned, courting govern-ments which are relatively new to the energy sector for joint ventures. At the same time, ironically, the na-tionally-owned giants, particular-ly in countries with scant or no re-serves, will almost certainly try to use the same route to secure future supplies.

“i can see a lot more partnership deals being struck as nationally-owned oil companies look for experts who have the latest technology and expert engineers”

Andy Broganglobal head of gas and Oil transactions transactions tAdvisory service, ernst and youngyoungyPhoto: RichaRd WeaRne

predict

professional insight

Follow the economy

1 Oil to trade in a range until evidence of an economic

pick- up becomes clear, then it may trend up again. Gas pricing is likely to remain volatile as the impact of new production technologies on supply becomes more clear.

Watch new exchanges

2 Restart of IPO activity by oil companies but with an in-

creasing share of the activity on new exchanges such as Hong Kong.

A change in business

3 More large scale partnerships between international and

national oil companies both up-stream, like the recent ones to de-velop the Iraqi oil fields and in re-fining and marketing.

New developments

4 More focus on new technolo-gy for gas extraction such as

coal bed methane and tight gas in the USA and Australia possibly gen-erating additional acquisition ac-tivity

Look for trends

5 Recent increase in the level of M&A activity likely to contin-

ue throughout the year.

Catch 22

6 Top uncertainties include the pace of economic recovery

and where in the world it happens.

Andy’s best tips And predictions for 2010

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