Requirements as cost drivers in the Norwegian petroleum industry – English summary
Oil companies on the Norwegian continental shelf pay on average between 20 and 30 percent more than other companies for identical products. A significant part of this cost difference can be explained by requirements for specification and reporting. Costs for administration and documentation for deliveries to oil companies are several hundred percent higher than for deliveries to other companies in the petroleum industry. These findings derive from an analysis where we reviewed data from accounting systems and interviewed representatives from suppliers and oil companies. As some of these requirements are overlapping and/or inexpedient, in some instances they actually weaken safety rather than improving it. This is further documented by a review of contracts and supplementary interviews with industry actors.
A short presentation of our findings from the original report is now available in English.
Forfatter: Sveinung Fjose