Oil & Gas Industry Need to Adapt

Oil & Gas Industry Need to Adapt Survey of America's oil and gas industry at OTC Houston in Texas reveals ‘adoption of new technologies’ as the critical business issue in the next 18 months. 

Lloyd’s Register has this week challenged oil and gas companies to re-think their approach to technical innovation, performance and safety to secure the world’s energy supply in a sustainable way, from reservoir and refinery to beyond.

A Lloyd’s Register survey of exhibitors at OTC Houston 2016 revealed more than 43% of respondents consider adoption of new technologies including additive manufacturing (or 3D Printing) and the use of unmanned robotics to be the primary issue.

Using new technologies from other industries (17%); Better collaboration within the industry (16%); Data rationalization and interpretation techniques (13%); and Education initiatives for graduates and new industry entrants (11%), were also seen to be important issues. 

So what can industry do? The answer lies in a sharper focus on driving excellence by collaborating and increasing the interconnected global network of knowledge across the energy and marine industries.

“It is widely accepted that excellence through innovation is key to safe and profitable growth across industry – and that collaboration can accelerate the development of innovative new technologies to help support better and cheaper ways of extracting and supplying energy,” says Teril Smith, Senior Vice President of Lloyd’s Register Energy in Houston, Texas.

According to its annual 2015-16 Oil & Gas Technology Radar survey, which researches the latest opinion of oil and gas executives across the world, “operational efficiency” is now the top driver for innovation investment. “Improving access to potential reserves” and “increasing the life span of assets” also rated more highly as innovation drivers this year compared to the previous 12 months, suggesting that, as well as nudging down the bottom line, companies are looking to push up the top line by extracting maximum value from resources.

What’s next?

The company believes its role in developing partnerships between industry and academia is important to help nurture collaboration and innovation, shown recently by its Global Technology Centre based out of Singapore, which is driving research in to how data can be used to improve integrity; the use of Unmanned Aerial Systems for faster and cost-effective inspection, plus its leading joint industry projects such as the role additive manufacturing can have in the manufacture of quality engineered components used in the energy and marine industries.

The company confirms that the offshore sector is rapidly realigning in response to the low oil price environment and other challenging dynamics. The issues appear to be well-understood, aided by good-quality dialogue and increased collaborative efforts.

“In this environment, staying afloat requires a new type of inventiveness and open mindedness; an eager and proactive search for novel technologies, approaches and ways of working,” highlights Smith.

About Lloyd’s Register Energy

Lloyd’s Register Energy applies its expert knowledge and independence to help clients and regulators design, construct and operate their capital intensive assets and businesses to their highest levels of safety and performance. Its world class expertise allows it to resolve and share solutions to the most complex situations, providing the confidence demanded by engineering principles, government regulations and industry codes and standards. And, as part of Lloyd’s Register, it draws on a long heritage of fresh, innovative thinking in response to new technologies and challenges. The one consistent element is its commitment to independence, integrity and always doing the right thing.

About LR

Lloyd’s Register (LR) is a global engineering, technical and business services organisation wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering. Founded in 1760 as a marine classification society, LR now operates across many industry sectors, with over 9,000 employees in 78 countries.

LR has a long-standing reputation for integrity, impartiality and technical excellence. Our compliance, risk and technical consultancy services give clients confidence that their assets and businesses are safe, sustainable and dependable. Through our global technology centres and research network, LR is at the forefront of understanding the application of new science and technology to future-proof our clients’ businesses.