All expectations for 2020 were tempered quickly as the pandemic took hold, but there’s hope as we enter 2021 and companies seek to prioritise the distribution of oil & gas and renewable energy project capital expenditure.
With larger, more complex projects, some players have identified opportunities through standardization to simplify processes from design and construction through to installation and start-up. To create a menu of options that can be produced on spec, without the need for detailed design or engineering, to expedite time to first oil by then allocating their resources to project management.
With the compounding impact of multiple industry setbacks, we’ve seen companies hemorrhaging talented individuals, some never to return. This has put additional pressure on remaining resources to fulfill the same workload, which presents opportunity to companies that can offer them greater project efficiencies through better execution strategies.
The great crew change brings with it challenges, but also opportunities for the “old way of doing things” to be looked at with fresh eyes. With companies resistant to taking on additional headcount, for fear of having to go through the cycle of redundancy or layoff again, there is another opportunity in the supply chain for specialist providers or contractors to fill the void, or for a new project execution strategy to be considered.
Whether we’re talking about standardising or simplifying, something along these lines requires dialogue and compromise from all parties and is more akin to a collaborative partnership model.
Additionally, in a time of slowed project development, where supply chain is looking to further reduce cost and efficiency, the challenge will be when activity does ramp up, will there be the resources to maintain the same price and delivery promised during the slow times. Certainty of outcome is elusive.
Offshore oil & gas assets are trending towards reduced headcount, with technology leading us towards digital twins, unmanned facilities manned from shore, and fully autonomous functions. Adoption of new technology may be stymied by those fearful to be first, but the appetite for change is there.
In 2020 we saw a surging interest in renewables in the US and internationally, which looks to have passed the tipping point at which, even with oil & gas projects coming back to life, will continue to move forward.
As we enter 2021, the oil & gas projects that were put on hold or kept alive by means of a paced pre-FEED study, are being considered again and prioritized for their next development phase in Q1/Q2. All this momentum and renewed activity will bring opportunities across the supply chain.
Having continued to support our existing clients and develop new opportunities last year, and with the vaccine rollout now in effect, we’re well positioned, with flexible execution strategies, backed by the capabilities and experience of our partners to achieve positive results in 2021.
Author: Justin Hoffman