Price to be paid

Cutting costs and enhancing efficiency have been a basic refrain in the oil industry during recent years, since the 2014-15 slump forced everyone to spend less and save time.

The coronavirus pandemic in 2020 has imposed another abrupt halt. No sooner was the industry back on its feet than a new round of belt-tightening had to start.

Our key message is the same as ever – the companies must understand the consequences, both short and long term, of their measures and avoid safety being affected by cuts and savings.

In difficult times, we see that preconditions and terms for working safely become weakened and that collaboration between companies, unions and government comes under pressure.

Our fear now is that suppliers must once again pay the highest price for the crisis. Because when the operators cut back, the effect travels down the supply chain.

And it is largely the suppliers large and small who do the work, whether in drilling, maintenance or scaffolding. Conditions at the sharp end are important both for the working environment and for major accident risk in the industry.

Would you like to read more reports? 

Would you like to receive the print version of Dialog? E-mail Margrethe Hervik, stating how many copies you would like.

You can read more reports from Dialog here. It is available as a PDF below.