Page 17 - Gi_April2021

Geoff Roberts, Director of Energy Industry Strategy at
MoveToIntegratedEnergy.indd
MoveToIntegratedEnergy.indd
Oracle Construction and Engineering, discusses the
role technology will play in facilitating a move to digital
transformation for gas businesses, helping to support
reductions in their carbon emissions
s Covid-19 continues to The energy supply chain is shifting
impact global economies, from a simple, tried and tested model to
some industries are evolving a complex and widespread movement
to identify how to protect of multiple parts. The diversification
A or change their business of the oil and gas business to include a
models to suit whatever the future focus on renewables is playing a part
might hold. In the energy industry, in this change. If suppliers struggle in
the oil and gas sector in particular has the market, oil and gas businesses have
seen several quarters of significant fewer options in supplier selection.
change and uncertainty. More broadly, Broadening their business approach
the industry was already mulling a into a new area such as renewables
change in operations as it strives to adds to this supplier uncertainty.
achieve targets for carbon emissions.
It’s arguable that Covid-19 has just
accelerated that change. The energy supply chain is
For example, BP recently announced shifting from a simple, tried
a move to become an integrated energy and tested model to a complex
company, stating:
“We aim to be a very different kind of and widespread movement of
energy company by 2030 as we scale up multiple parts
investment in low carbon, focus our oil
and gas production and make headway Such challenges argue for an
on reducing emissions. Our new acceleration of digital transformation to
strategy kickstarts a decade of delivery support a business as it moves through
towards our #bpNetZero ambition.” 1 these changes and prepares for the next
But as more oil and gas businesses phase of operations. Current trends
increase their spending on renewables can serve as a long overdue impetus for
to adopt a similar approach, they the industry to evolve its approach and
continue to face operational challenges embrace technology. Advancements
to general business activities before such as RFID tagging for material
they can consider how to execute such a tracking, IoT and artificial intelligence
change. These include: (AI) also provide new opportunities
The need for a change management to disrupt traditional approaches and
plan as well as management across enhance safety and productivity.
and between diverse business units
How to find efficiency gains BRINGING IT TOGETHER
Mitigating risks such as working with For oil and gas businesses, diversifying
new and untested suppliers as well into renewables brings a number of
as safety change management challenges, with
The increasing importance of data the challenges perhaps exacerbated
and analytics by the recent need to work remotely.
Change initiatives are further Organisations are coping with uncertainty
complicated by the impact of the caused by dramatic oil price fluctuations,
recent pandemic and oil price the rush to survive due to the pandemic,
fluctuations on the supply chain. In and the need for remote access and
April 2020, following a significant visibility across the project portfolio and
drop in the oil price, these concerns supply chain. All of these underscore
were raised by key industry bodies the need for new, more effective ways
such as the International Energy of working. Capital project delivery
Agency and Independent Project technology may hold the answer.
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Analysis , who expressed concerns For example, collaboration in the
about how, as demand plummets, the form of coordinated work using shared
entire supply chain of oil refining, project information is key to connect
freight, and storage is starting to seize different teams from engineering,
up, making it increasingly difficult operations and procurement through
to push new supply into the system to contractors and suppliers. The most
– and how project delays are already efficient way to enable collaboration
going to make some suppliers and is a single, easily accessible platform
vendors vulnerable. for all interactions. Such technology
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