The extraction of oil in the North Sea is one of the oldest operations in the world and is responsible for the economic flow of countries like Norway, Germany, Scotland, and England.
Despite its extreme importance to the region’s economy, the sector has obstacles in its path that compromise the long-term future of the industry. The pandemic was one of the most difficult periods for the sector and its impacts culminated in the biggest drop in the price of a barrel in history, forcing industries in the region to reduce oil extraction.
The difficulties faced by this sector are even more evident if we consider the aging of its plants and the high operating cost in the region. Such difficulties demonstrate the need for change on the part of the North Sea oil and gas industries.
The way to survival of North Sea Oil production
Despite the great difficulties faced by the sector, there is a way for the operation in the North Sea to be strengthened in the long term.
The application of technology is a fundamental point for this sector, which can, through these tools, guarantee greater performance, safety, and profitability.
The digital transformation has provided many industries with efficiency and cost reduction from technologies such as IoT, Artificial Intelligence, and Digital Twin in operations. Furthermore, these technologies can be fundamental in actions aimed at decarbonization and decommissioning in these large industries.
Read: The need for energy transition in industries
The need to contain climate change has been a central theme for large institutions, with large industries being actively responsible for the change needed for the future.
Having plans that aim at greater use of energy efficiency, reduction of risks to the environment, greater safety for assets and people, are attractive to investors and, above all, necessary for a strategy in accordance with ESG principles.
Read: the path to an ESG operation
The North Sea industrial sector has good prospects for recovery if it manages to resolve its challenges, but this needs to be done in the short term. Technology applied with the objective of greater control over a large operation and its multiple variables can be the path to success.