Cost efficiency is important. But we can’t rely on cost-cutting alone. At Beerenberg we have asked ourselves the following question: What does it take for the market to continue to choose providers such as Beerenberg in the future?
“Don’t over-engineer” is the new mantra in the industry. A growing number of voices are thus insisting that in the future the industry should be content with just making “adequate” deliveries. It would seem that many associate cost-efficiency with revised, and even reduced, standards. Beerenberg agrees that there has been excessive focus on details, procedures and specifications in the oil and gas industry. On top of that there has been too much red tape, which has contributed to unnecessarily long decision-making processes and added costs. However, in our view it is wrong to conflate these trends with the concept of quality.
Since 2008 Beerenberg has focused on three key areas: we have sought to be a market leader in HSE/Q, productivity and consistency at every stage of the company’s deliveries. During the same period we have observed three fundamental rules of play, which are all set in stone: rule number one is that the total value of the company’s deliveries should always be perceived by the customer to exceed the price tag. Rule number two dictates that the company's revenues must always be greater than its costs. Rule number three is that there are no more rules!
The result has been a steady rise in contract volumes, improved customer satisfaction and increased revenues. The logic behind it all is fairly straightforward. Thanks to good planning we are able to create predictable frameworks, which in turn reduce execution risk. This is the cornerstone that allows us to achieve good HSE results. With this platform in place, the operational organisation is better placed to concentrate on the technical and operational aspects. This helps increase focus on quality and productivity.
Making quality a key priority has never been more important than it is today. Delivering quality is always the right thing to do, both in good times and in bad. Quality is also cost-efficient in itself. Good HSE performance, a high level of plan compliance, skilled workers who do the job correctly the first time round and systems that help ensure consistency and a long service life will never go out of fashion. Because what exactly does “adequate” mean in terms of HSE, plant integrity and production regularity? In our view, only the best is good enough!
The NCS has served as a laboratory for the entire international oil and gas industry. Seismic and subsea technology. Regulations on safety and plant integrity. The Norwegian oil industry has been a pioneer in a range of areas. And the Norwegian oil services industry is now exporting close to 50 per cent of the overall value creation on the NCS. Surely nobody would argue that this could have been achieved by settling for “adequate”. The ability to think new, to be courageous and to aim for quality every step of the way is the very foundation of Norway’s success in the oil industry. We all have a responsibility for preventing these characteristics from disappearing in the race for short-term cost reductions. The authorities bear a particular responsibility in the form of rules and regulations and the operators with regard to philosophy and core values.
Beerenberg is clear that we will continue to pursue cost efficiencies. At the same time we are committed to continually improving the quality of the company’s deliveries. And we are absolutely confident that these ambitions are in no way contradictory. Quite the opposite: they are mutually interdependent. And in both cases only the best is good enough.