PILOT began life as the Oil and Gas Taskforce, which was created to find ways to deal with high oil prices and only expected to last for six months. It met once a month during that period. The model worked well and as the oil price recovered, other challenges emerged. The group was then tasked with working on a range of significant issues affecting the prosperity and viability of the UK basin. After the initial period the taskforce was renamed 'PILOT' and it now meets twice a year. It is chaired by the Secretary of State for Energy & Climate Change and includes around 13 industry representatives as well as representatives from relevant government departments.
The taskforce’s objective was to create a climate for the UKCS within which to retain its position as a pre-eminent and active centre of oil and gas exploration and production. It also aimed to maintain the UK contracting and supplies industry at the leading edge in terms of overall competitiveness. PILOT has since brought forward a number of successful initiatives and delivered results to improve UK competitiveness.
PILOT subgroups
A number of subgroups were formed, with a wide remit to consider actions on individual topics. This process of engagement has worked well. It has created a sense of involvement from the whole industry as issues have moved forward.
The original subgroups were set up to look at:
- competitiveness
- innovation and technology
- skills and training
- regulation licensing
- fiscal issues
- environment and sustainable development
PILOT approach
Central to the approach has been the generation of what is a novel way of cooperation between industry and government: they work in partnership to deliver a stronger performance, sustaining jobs and developing services and technologies the market needs. Companies are encouraged to collaborate on non-competitive issues and look for new ways of working to make a brighter future for all.
PILOT has been highly successful and many of the projects have evolved into the key organisations fundamental to the UKCS today. The Industry Technology Facilitator was initiated by one of the strategic groups looking to improve the flow of new technology to the market, while LOGIC (Leading Oil and Gas Industry Competitiveness) was created by PILOT to stimulate supply chain collaboration and improve competitiveness. Initiatives such as Vantage POB, Masterdeed, IMHH and standard contracts were brought together under LOGIC.
To maintain the early momentum, there has been recognition of the need to reinvigorate PILOT. We continue to face challenges that have not become any easier, and it is important to maintain the alignment of all stakeholders working towards the same vision of maximising all opportunities from the North Sea.
PILOT achievements
An important aspect of PILOT’s work has been to improve the way we do business in the UK. There are a number of areas we have been able to impact on using a collaborative approach, with members putting aside their individual business interests to work for the good of the industry. PILOT has had many successes in the past ten years of innovative and collaborative work. These include:
- attracting new players and global investment – a diverse range of new players entered the basin, which has led to the development of more small fields and technology. A range of new companies and operators have entered the market.
- fallow initiative – this has stimulated activity by placing still prospective acreage into the hands of companies that want to develop it.
- access to infrastructure – companies are able to negotiate with pipeline owners, etc, for access. This has helped enable subsea tiebacks to infrastructure hubs, although there are still ongoing challenges in this area.
- stewardship – initiative to critically analyse the potential of each producing asset.
- technology development – working to foster innovation and facilitating the development and implementation of new technologies. This led to establishment of the Industry Technology Facilitator.
- skills – the industry workforce has increased by 100% throughout the life of PILOT, and oil and gas academy OPITO was established following work in PILOT.
- exports – there has been a higher level of exports from the industry than anticipated and Subsea industry renowned across the world.
- investment – levels of investment in the basin exceeded expectations, including rising capital investment in the current economic climate.