Three changes are crucial to success for the next generation in the North Sea, according to Tom Botts, CEO of Shell E&P Europe. These include a deeper understanding of HS&E needs, the ability to connect people and organizations across borders, and a new leadership model for organizations. Botts spoke at a panel on "The Next Generation in the North Sea" at the Offshore Northern Seas conference in Stavanger, August 25.

"I can tell you that all the stakeholders in our operations are very interested in our approach to the topic of the next generation in the North Sea," he told the panel.

The oil and gas industry has been successful over the last 10 years in reducing lost time incidents, he said, "but we also have to eradicate the attitude that 'This is a tough industry and sometimes people get hurt.'" The industry has improved engineering solutions, systems, and processes, he said, but now must address the challenge of changing basic beliefs about HS&E.

"It is time to challenge the belief that more systems and processes will improve safety," he said.

It is also time to break out of the old model of the classic hierarchical system of management, where the boss knows the answer and no one questions his decisions, Botts said.

"The old system simply won't work," he said. "It won't attract the talent that we need to succeed in the future. Leaders need to provide an enabling environment for creative people. And we need leaders who are connected to the processes, who understand the system they are leading."

Botts said new leaders will be "more inspiring, more humble, and more attached to the system."

The ability to connect people and organizations across borders will be crucial to success in future operations, Botts said. He noted that Shell E&P Europe has gone from eight separate organizations to one over the last year, while at the same time increasing its capital expenditure budget for Europe by $150 million for the year.

"The new organization enables communication within the group and helps us identify more opportunities," he said.

08/25/04