Despite short term trends such as low crude oil prices, no one is predicting the end of the offshore exploration and production industry. However, growth has slowed causing disruption to some projects and applying pressure to the supply chain at every level.
With this in mind, the Next Level Report identifies ways in which the offshore industry can respond to this pressure. As a sector with ever expanding horizons and performance envelopes, there are efficiency improving innovations waiting to be made at every level of every project. This report analyzes research based on the views of professionals across the offshore industry. It explores the performance of operators and the supply chain, identifying specific areas where progress can be made. Those surveyed said they believed relationships between customers and contractors have improved due to better technical support, particularly from specialists dedicated to areas such as R&D, installation and maintenance.
However, the majority stated that they would not be willing to work with a supplier that offers training and project support if it costs extra. This highlights the need for suppliers to clearly communicate the value they deliver, and for customers to think more in terms of total cost of ownership. A more realistic attitude toward the procurement of services might lead to greater transparency, a collaborative supply chain and a more efficient and effective industry overall.
A very small number of survey respondents said that a creative approach to a project brief was a valuable supplier attribute for reducing risk and ensuring compliance. While this is not altogether surprising in an industry known for a “race to be second” approach to innovation, perhaps the balance between fear of the unknown and the need for progress is leaning a little too far in the direction of playing it safe.This could mean that truly innovative suppliers could be overlooked as selections are made through box ticking alone, missing opportunities to create new solutions that could not only help to improve efficiency but actually help to meet ever tightening regulations as well. Maybe it is time for the industry to change its thinking on compliance. Instead of feeling hampered by standards such as API16F and API17L, they could be used for the purpose they are intended – guaranteeing safety and performance in new, more cost-effective products and solutions.
For the full report, pick here: http://goo.gl/sWHxhc
Filed Under: News, O&M
