Rodger Dickson considers the energy transition
Rodger Dickson, our Group Managing Director of Offshore, considers the energy transition and looks ahead on what it may mean for our industry.
Total this week became the 3rd global oil major company to set zero-carbon targets, and so both recognising the viability of the climate change-driven energy transition and likely setting off a chain of events that will build momentum and accelerate it.
Also on Earth Day 2020 this year, AqualisBramaer became a signatory to the United Nations Global Compact. This announcement led me to reflect on how we assist our clients with their energy transition plans and to take a closer look at our own contribution.
In the early stages of development, any new industry can be heavily polluting, and offshore oil and gas was, unfortunately, no exception. However, better practices and industry standards are being developed and gaining worldwide acceptance. This is driven at many levels top to bottom and ranges from international conventions and resolutions, national level (statutory, legal) adoption, business & commercial practice and of course by pressure groups. Still, there is also a general desire at grassroots that we can and must do better. This may not always be necessarily altruistic and more driven by commercial necessity. However, the result is the same, and we should celebrate that drive towards a better future for the world in which we work and live.
Reflecting on my career spanning 40 years in the shipping and offshore industry, change has been constant and I have no doubt this will continue. Many of the changes were initially driven by safety and efficiency. Environmental issues now feature strongly as governments, oil companies and the wider community transition towards a greener, more sustainable environment. The pace of change may have been slow to start with but, like technology, it is constant and the pace is accelerating.
Myself and most of my colleagues first started our careers in the shipping world as seafarers. Shocking as it is, in 1980, dumping of waste overboard was usual and, as a new entrant to the shipping industry, I was shocked. Happily, matters have improved dramatically in both the shipping and the offshore sectors. Pollution is no longer legally, morally or socially acceptable practice, and we continue to see more change and evolution as our clients transition towards carbon zero, at least in terms of the carbon intensity of operations.
However, the energy transition change will not happen overnight. It takes time and effort and could take perhaps another 20 years before we realise the full benefits and see completely sustainable net-zero solutions in the maritime and offshore world.
I have spent some time reflecting on how we currently support our clients during this transition and what I expect we will do in the future. I already see improved practices and standards with survey and support requirements continually evolving. Support for our clients today ranges from environmental containment assessments to developing vessel and rig hybrid power systems. We use the latest methods to conduct tests aimed at reducing fuel consumption. Propulsion and power generation units are tested to ensure peak performance. Maximum fuel efficiency reduces carbon emissions, and these surveys contribute to a sustainable future.
Our offshore jack-up rig movers use their expertise to position oil rigs efficiently to avoid damage to coral and natural fauna. The concept and installation studies are strongly focused on ‘no harm to the environment’ methods of execution.
Our surveyors, engineers and naval architects carry out life-extension and vessel repurposing studies. These may include redesigning existing drilling units for conversion to mobile offshore production units, which is a natural progression rather than scrapping the unit. They also work on oil and gas field and platform decommissioning projects as consultants and marine warranty surveyors.
I am particularly interested in extending our significant existing offshore renewables experience into the oil and gas sector and vice versa wherever possible. Our practical marine expertise in both sectors has clear touchpoints for marine consultancy and warranty services with transferrable skills. One example is that we have delivered feasibility studies investigating the use of storage and floating offshore wind to reduce the operating cost (and emissions) of offshore oil and gas assets. We are also looking into providing climate change impact assessments for offshore assets for our oil and gas clients in the same way we have delivered them for offshore wind investors.
Finally, at a local level, we are striving to implement greener office practices on travel policies and recycling of paper and plastic – all of which at least reflect or better those of the cities in which we live – and this has enthusiastic support from all our staff.
As consultants to the world’s energy, marine and insurance sectors, our stated mission has always been to provide an unrivalled level of service to our clients across the globe and to be the consultancy that delivers innovative services. Regardless of whether for our clients in energy or on the world’s oceans, we often use our experience to help implement international standards and new ways of operating, which are increasingly sustainable in focus, helping them to de-risk and accelerate the energy transition.