Procurement and supply a key part of the solution to oil and gas industry challenges

10 August 2015

The procurement and supply chain profession is part of the solution to the challenges the UK oil and gas industry faces, delegates at the annual Oil & Gas UK Supply Chain Seminar, held in association with CIPS, heard.

Entitled ‘Simplicity – can it be standard?’, the conference in Aberdeen attracted delegates from across the UK to hear about the issues the industry faces, how simplification and standardisation initiatives can address them, and about lessons to be learnt from other sectors.

Oil and gas supply chain companies supporting activities on the UK continental shelf (UKCS) face a demanding business environment, with operating expenditure in the basin rising by almost 8 per cent to £9.6 billion last year. In addition, production has continued to decline and, with oil prices currently around $60 per barrel, about 20 per cent of UKCS’ production is loss-making.

“In line with the CIPS president Babs Omotowa’s motto ‘raise your game, raise your voice’, this is where the procurement and supply chain profession can step forward and say ‘we’re a key part of the solution’,” said Phil Broughton, corporate relationships – energy oil & gas sectors, CIPS.

The conference heard from Oil and Gas UK’s new chief executive Deirdre Michie and John Griffiths, head of the supply chain for the UK and Netherlands at Centrica Energy, about how supply chain best practice can help the UKCS regain its international competitiveness, and ensure its sustainable long-term future.

Speakers from outside the oil and gas sector, including Andrew Wareing, Nissan Europe’s general manager – purchasing, addressed the seminar on how other sectors adapted to
similarly tough challenges through innovation and standardisation.

• Young Oil and Gas Supply Chain Professional of the Year

The inaugural award for the Young Oil and Gas Supply Chain Professional of the Year was presented at the Oil & Gas UK seminar. Katie McIntyre, contracts engineer, Centrica Energy Exploration & Production, won the prize (jointly awarded by Oil & Gas UK and CIPS) for helping to contribute long-term benefits for her company and for working co-operatively with suppliers.

“Talented individuals are in demand to meet the major challenges this sector is facing so we’re delighted to support this award,” said Phil Broughton. “Finding the stars of the future is a responsibility we all share to drive improvements... and set up the best professionals.”

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