Operational Overview

Oil and Gas

Building on more than twenty-five years' experience, BMT supports the oil & gas industry in undertaking safe, reliable, cost-effective and environmentally sound activities.


The year saw strong demand for BMT's oil & gas-related services. Brent crude prices remained above $100 a barrel throughout the 2012/13 financial year, sufficient to secure continued commitment to all but the most high-cost developments. As a result, global offshore exploration and production activity was at record levels.


In contrast, US natural gas prices fell to record lows during the year; driven by a rapid growth in the exploitation of non-conventional reserves. So far this has had limited impact on natural gas contracts in the rest of the world, but this could change as new US export facilities come on stream. The strategy to 'internationalise' our structural integrity monitoring business continued with further investment in Brazil as well as increased levels of sales and contract support resources in Europe and South East Asia. Recent acquisitions in Western Australia have also proved effective, giving BMT a strong presence from which to promote further growth in oil & gas related activities; especially in the environmental services market.

Innovation is a key driver for our success and here we made notable progress, with new tools to support the wind tunnel testing of offshore structures, including the use of 3D printing to support model making.

We also joined a high-level three-year Joint Industry Project launched to help improve the accuracy of wind tunnel measurements and Computational Fluid Dynamics calculations


Outlook

With average oil prices set to remain above the $100 per barrel threshold for the 2013/14 financial year, we expect the market for services associated with exploration to continue to grow. In the longer-term the outlook is less clear with increasing exploitation of non-conventional reserves, capital expenditure constraints in the international oil & gas companies and skilled staff availability all potentially impacting growth in exploration and production activity

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  • 1
    BMT's track record in offshore safety analysis relating to loss of containment and helideck operations was called on to provide design support services for the Cygnus Field jacket platform complex
  • 2
    BMT's weather forecasting skills are helping the Kazakhstan Oil & Gas Industry extend its summer working window by identifying unseasonably good weather in time for customers to take benefit.
  • 3
    BMT was engaged by Statoil to undertake an EIA and prepare the Environmental Statement for the development of Statoil's Mariner Area heavy oil field in the northern North Sea.
8  |  BMT Group Annual Review 2014