Speaking at the recent SPE Offshore Europe conference in Aberdeen, Wood Group (www.woodgroup.com) chief executive Robin Watson said that oil and gas companies are like American pioneers “trying to cross the Rockies with their canoes”, as he outlined the recent industry slump and a road to recovery.

He added that since oil prices dropped in 2014, the sector has been less profitable, resulting in 71 bankruptcies last year — up from 52 the previous year and 11 in 2014. About 350,000 people lost their jobs in the slump, he said.

Responding to a question from Professional Engineering, Mr Watson said companies must adapt technologies from other sectors, and he referred to a simple digitisation project at Wood Group’s North Sea operations, which reduced the number of visits required to some sites.

Meanwhile, Schlumberger drilling group president Catherine MacGregor said: “The oil and gas sector is a little bit behind. New digital technologies like the Internet of Things and resulting ‘big data’ can provide massive benefits.”