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BP cuts North Sea production costs in half

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BP CEO Bob Dudley has revealed during a speech at the Society of Petroleum Engineers Offshore Conference in Aberdeen that BP has managed to cut production costs in half in the North Sea.
Average production costs in the North Sea have come down from over $30 a barrel in 2014, to less than $15 a barrel today.
(Image via BP).

Dudley outlined several factors that have been key to the cut in costs:

“This focus on standardization, simplification and discipline on cost has contributed to our average production costs in the North Sea coming down from a peak of over $30 a barrel in 2014, to less than $15 a barrel today. Heading towards 2020, with all our major new developments coming into production, we expect that to come down below $12 a barrel in the North Sea.”

As well as outlining BP’s cost cutting innovations, Dudley also described how the oil major’s energy mix is changing:

“Oil and gas will be a big part of the mix for decades to come. But the fuel mix is changing, along with the way resources are produced and delivered as we move to lower carbon and look to advance that transition. The BP portfolio is shifting towards more gas as we put together the right projects.”

2017 is proving to be a positive year for BP, particularly as they bring several large scale projects on line by year end.

As BP continues to cut their North Sea production costs, they present a model for other supermajors and independents to follow. And, a key part of cutting production costs is to have a talented and effective workforce in place.

Find out how Fircroft can help your Oil & Gas business secure the talent you need to cut production costs now.
Tags: Oil & Gas
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