Watching the World: Production at what cost?

Through the latter half of the 1990s, the UK North Sea offshore industry was eager to hold itself up as a shining example of a forward-looking business that had been streamlined by rigorous, if sometimes painful, cost-reduction practices. The organization credited for much of the claimed success, CRINE (Cost Reduction in the New Era)-supplanted last year by the government-industry supply-chain management initiative LOGIC (Leading Oil & Gas Industry Competitiveness)-was often heralded as a sector success story-although more by oil companies, generally, than by contractors and suppliers.Some of that gloss may now have come off, it seems, with a new report on the province's production co...

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