Senior oil and gas sector professionals expect a step change in the industry's capex, opex and R&D spending levels in 2018, as new research from DNV GL, the technical advisor to the oil and gas industry, confirms confidence in the industry has doubled.
Oil and gas will be crucial components of the world's energy future, according to DNV GL's forecast of the energy transition. While renewable energy will grow its share of the energy mix, oil and gas will account for 44% of world energy supply in 2050, compared to 53% today. Gas will become the largest single source of energy from 2034.
The oil price collapse of 2014 triggered a wave of cost reduction among upstream businesses. Global oil and gas companies slashed capital expenditures by about 40% between 2014 and 2016. This delivered a clear message: everyone in the supply chain must advance cost reduction strategies for the offshore industry in order to remain competitive.
In collaboration with Siemens, DNV GL is combining deep technical domain knowledge from oil and gas projects and operations with Teamcenter product lifecycle management (PLM) technology into a powerful digital asset model.
The DNV GL-led joint industry project, WIN WIN (WINd powered Water INjection), has completed its first phase and determined that wind power could be used to power offshore water injection. The project is currently moving into its second phase, which includes refining and testing the electrical systems, and investigating possibilities for broader applications. The project consists of four partners: DNV GL, ExxonMobil and ENI Norge – all part of the first phase – and the Norwegian Research Council – a new participant for this second phase.
The oil and gas industry is increasingly recognizing the need to overcome data quality issues and manage the ownership, control, sharing and use of data. As a trusted third party, DNV GL is now launching an industry data platform - Veracity - to facilitate frictionless connections between different industry players, domain experts and data scientists.
New research by DNV GL, the technical advisor to the oil and gas industry, shows oil and gas companies seeking to rebalance business portfolios and reorganizing for a new era. In a period of drawn-out recovery, almost half (49%) of senior oil and gas professionals surveyed expect their businesses to diversify into, or invest more in, opportunities outside of oil and gas. Still, almost eight out of ten see long term opportunities for gas.
Today’s standards for gas flow metering are applicable for design and installation of the meters. However, none of these cover the sensitivity of the flow metering equipment in real life field applications which might change during operation.
Learning from failures and incidents is essential in a lean and cost effective organization and is often a fundamental requirement in regulations. However, incidents should not be seen in isolation as the broader view and key industry learnings might get lost. DNV GL has investigated over 2000 incidents and failures globally, identifying trends among the data and invites the oil and gas industry to join and share experiences. To further strengthen DNV GL’s global lab capabilities for failure investigation, a new lab in Bergen is opening, including one of the world’s largest tensile testing machines.
Cybercrimes cost energy and utilities companies an average of $12.8 million US each year in lost business and damaged equipment. Platform operators need confidence that countermeasures can deal with bigger and more sophisticated cyber-attacks. DNV GL is now collaborating with Shell, Statoil, Lundin, Siemens, Honeywell, ABB, Emerson and Kongsberg Maritime to develop best practice in addressing this threat. Other companies are still welcome to join.