IADC urges governments to heed concerns of North Sea drilling sector

Offshore staff

ABERDEEN, UK — The North Sea Chapter of the International Association of Drilling Contractors (IADC) has called for greater cooperation between the Scottish and UK governments and all areas of the oil and gas industry.

It follows a study conducted by the North Sea Transition Authority and the Global Underwater Hub in Aberdeen on new opportunities for the UK’s offshore supply chain.

Although the IADC supports the general findings, its view is that a longer-term outlook is needed to secure jobs across the industry, while maintaining the UK’s transition to cleaner energy.

Darren Sutherland, chair of the IADC North Sea Chapter, said, “The recently announced projects represent a fraction of what is truly needed to meet growing UK energy demands, as well as strengthen regional energy security, but frustratingly only amounts to minimal opportunities for drilling contractors. The oil and gas industry is aware of the environmental need to change the way the sector operates; however it is a process that is likely to take decades to achieve and will involve all areas of industry, including drilling contractors…We need to find the right balance across the industry to ensure we meet our goals…

“The UK Net Zero Strategy states that energy security can be attained through a reduction in the requirement for imported fossil fuels. We believe the success of the transition can only be delivered by maintaining that security, which includes an active drilling and production program on the UK Continental Shelf.”

Sutherland pointed out that the UK’s offshore sector is predicted to employ 200,000 people over the next decade and added that the transition should take into account job security and retraining of the industry’s specialized workforce.

The IADC supports a recent statement by industry association Offshore Energies UK calling for greater levels of support for supply chain companies.

IADC regional director Stuart Clow warned, “We are already seeing a migration of drilling rigs and equipment to other areas of the world, which in turn reduces drilling and decommissioning capability in the North Sea and other areas. Data show more than 30 jackup rigs have migrated from Asia, the Americas and Europe to the Middle East over the past year. That is partly why encouraging business, responsibly developing all forms of energy and supporting the offshore supply chain in the North Sea are of the utmost importance.”

02.06.2023