Page 14: of Marine Technology Magazine (June 2020)

Column

Renewables

A New Role for Service Providers

Amidst Energy Upheaval

By William Hill, Executive Group Vice President, GAC Energy

In today’s energy industry, things are ing Shell, BP and Equinor to diversify ing the market navigate the after-effects moving fast. The upheaval brought into other means of power generation. of the COVID-19 crisis. about by COVID-19 and exacerbated As the global energy industry continues The value of providers’ transferrable by the Russia-Saudi Arabia oil price to navigate an era of unprecedented skills and knowledge is brought into war has been so profound that the transition with renewables at its heart, sharp new focus. Their knowledge takes

International Energy Agency (IEA) has the sector needs to be prepared to adapt on new signifcance as a vital piece in described the situation as “a once in a and change. the energy market’s COVID-19 response century event for energy demand”. This As those who operate in the energy puzzle, particularly with respect to its is supported by current IEA predic- sector know, change has been a basic persistent challenges of project manage- tions which suggest a 6% drop in global factor of the business over the last ment, knowledge bleed and technology. energy demand in 2020 – seven times decade. Today, more than ever, the Solving such perennial challenges helps worse than the plunge in demand that industry’s experts will be called upon make the overall shared response to the followed the 2008 recession. to provide the resources and expertise current market conditions more robust.

Amid what the IEA has dubbed a necessary to help make sense of the new “dismal” year for fossil fuels, the one lay of the land after COVID-19.

A faster pace of innovation bright spot is the performance of renew-

A knee-jerk reaction to the pandemic ables sector, which is still expected to may be the assumption that a lack of

Redeploying resources grow by 1% this year. That is a seri-

History teaches us that pandemics resources will trigger the death of in- ous downgrade on the sector’s record constrain what industries can do with novation within the sector. However, as performance last year, when global wind the scarce resources at their disposal. we have seen, the demand for renew- power capacity grew by almost a ffth.

Overcoming such constraints demands able electricity continues to grow, and

Nonetheless, the current modest growth the highest levels of human ingenuity and the world has precious little time left to fgures for this year are fuelling specula- effective use of the latest technologies. meet societal and regulatory pressures to tion that renewables will emerge as a

For offshore service providers, now is the decarbonise. new paradigm winner once the COV- time to take a clear and systematic view Some argue that COVID-19 may accel-

ID-19 pandemic abates. If that happens, of all the issues – COVID-19 related erate some of the innovations the energy renewables will attract investment, drive and beyond – to take decisive action and market has already been adopting. growth, bring jobs and energy security update their approach as necessary and Again, service providers fnd themselves in the future – all while supporting the when further information is available. at the cutting edge, driving and respond- global battle against climate change.

While the current situation is singular, ing to increasing innovation within the

Confdence in the long-term future service providers are not in altogether markets they serve. of renewables is further buoyed by the uncharted waters. For years, they have growing number of oil majors that have managed heightened customer expecta-

Data-driven decisions signed up to ambitious green targets. In tions, primarily motivated by a constant

In the same spirit, the value of data the last month, for example, Shell has pursuit of cost reductions on the part is likely to skyrocket. The previously committed to a net-zero emissions goal of major operators. And for years, the observable shift from retrospective by 2050, with CEO Ben van Beurden response of the service providers has reporting to a requirement for real-time saying “society, and our customers, been a mantra of value adding; stretch- analytics will accelerate as cost con- expect nothing less”. ing to meet the demands of the market cerns take centre stage once again.

The success of the renewables industry and remaining fexible to its ongoing

As decisions are made about key proj- so far is supported by the progressive change. This mantra must continue as ects, customers want in-depth insight work done to date by companies includ- service providers play their part in help- into the exact cost and time taken for June 2020 14

MTR