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Oil and gas industry must innovate

23 September 2010

Oil and gas companies should not be put off new technologies by high-profile disasters like the Gulf of Mexico oil spill, according to Nick Dalgarno, managing director of Simmons and Company International.

Dalagarno addressed delegates at an Aberdeen, UK conference on September 22 and said the industry must rise above the challenges associated with risk aversion which have historically affected it and which may result from the recent Macondo incident in the Gulf of Mexico.

He said: “The Macondo incident has inevitably heightened liability issues and will trigger a move towards de-risking projects. In an industry which has always been risk averse, there is potential for operators to stick with established technologies and processes. This would be a missed opportunity, and the combination of rising operating costs and the steady oil price of around $70 to $80 per barrel offers potential for new technologies that can generate incremental margins for operators who will hopefully be more focused on efficiencies created by high-quality services rather than price.

“Innovation and enterprise are at the core of the North-east’s oil and gas expertise and with much evidence of proven technologies in the North Sea, the region is well placed to capitalise on this market.”

Dalgarno said that securing finance for future growth was also vital for many specialist technology companies, particularly small or young emerging businesses.

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