The report says a step change in strategy and integration is needed right across the oil and gas industry to avoid losing significant export and revenue generating opportunities.

PwC points to a potential £35bn in decommissioning revenues that could help cement the North Sea as a global energy hub and extend its lifecycle for future generations. By collaborating better and exploiting tax reliefs to develop innovative decommissioning projects, firms could generate a new business model worth billions.

The spotlight is firmly on the North Sea, amid speculation about its future. But PwC says it is increasingly clearer that whatever the sector’s economic lifespan is, it needs to enter a new phase of operation.

Kevin Reynard, PwC’s office senior partner in Aberdeen says that means a step change in how businesses innovate and collaborate as well as improvements in cost control and performance.

“While it’s exciting to see a continuing drive to explore and develop in new areas such as West of Shetland, there is no escaping the fact that exploration and production is down on previous years. The stark reality is that even if all the planned wells go ahead, the rate of drilling is still too low to recover even a fraction of the potential resources.

“But our future outlook could be so much brighter. With UK tax payers effectively footing the bill for half the costs of any decommissioning activity in UK waters, forecast to be worth around £35bn, is it not in our best interests to harness our own expertise and grab the opportunity ourselves? If we don’t act fast, the risk is that overseas companies will raid the UK’s revenue base, setting themselves up the ‘go to’ global experts.

“The Wood Review recommendations, particularly in relation to a strategic framework and creation of a tough industry regulator, will go some way to creating certainty and a common strategic direction for North Sea operators.

“But it can’t operate in isolation. It’s vital the industry - and other stakeholders such as the public sector – get on board and and commit to this vision of the future.”