The decision adds a potentially complex layer of political, economic and business uncertainty to the already challenging UK oil and gas operating environment. An environment characterised by a sustained low oil and gas price environment and its impact on ageing assets, declining operational efficiencies and increasing operating costs.
However, as the immediate shock of Brexit begins to fade, much of the concern around the uncertainty will as well. Putting a number of the areas of uncertainty in perspective, we come away with the following:
So, what does the UK sector need to do to not just weather the uncertainties but come out on top as a global leader?
The focus for the sector needs to be on winning and not just surviving the current disruptive business cycle for the UK oil and gas sector. Looking beyond layoffs and the deep cost cuts there is a real opportunity to build longer term stability through more effective operating models.
By systematically addressing many of our core business issues – including process safety, personal safety and health, environment, reliability and efficiency – and embracing advances in digital technologies, we can begin to optimise production and drive operational excellence throughout our organisations.
It is this transformation to operational excellence that provides the real opportunity today to build an effective business model that is a sustainable boom, bust or Brexit.
Join the Conversation: What’s the potential impact of Brexit on UK’s oil and gas? Share your views below.
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