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.”