Page 20: of Offshore Engineer Magazine (May/Jun 2025)

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CLASSIFICATION MANAGING RISK & UNCERTAINTY

Other areas like fsh farming and mineral mining are ing operators to fnd the best ways to prolong their lifespan also increasingly prominent, further indicating the evolv- in a safe and sustainable manner.

ing and diversifying ocean space. Doing this correctly will enable operators to avoid re- placing these assets, helping them to reap signifcant cost

Geopolitical Tensions Creating More Uncertainty savings. However, it is crucial that this is done in a way that

In the face of this uncertainty, the offshore industry integrates modern, digitalized systems, meeting decarbon- needs to adapt. This demands innovation, collaboration, ization demands, while maintaining safety and reliability. and forward thinking with this, ideally, supported by a progressive and stable regulatory environment.

Finding a Sustainable Way Forward

However, today’s geopolitical tensions are often having Reaching the desired balance of the ‘energy trilemma’ the opposite effect, sending mixed signals to investors and can also be achieved by adopting a strategic approach over key decision makers, and causing confusion. the entire lifecycle of an offshore asset. This means apply-

The recent actions of the current US administration are ing rigorous standards and best practices from the bottom one example of this. The Infation Reduction Act (IRA) cre- up, starting with design and construction, and maintaining ated signifcant opportunity for tax reduction and govern- these through to operation and decommissioning. Doing ment grants towards renewable projects. However, the cur- this will ensure that assets and operations are safe, reliable, rent administration’s new focus towards oil and gas, has led and compliant with modern standards, meeting the expec- to decreased investment and interest in the renewable space. tations of the entire offshore industry, and its stakeholders.

The practical effects of this are already being felt, with Further, balancing the continued need for oil and gas key developments, like the Empire Wind 1 project off the with renewable energy sources requires strategic invest- coast of Long Island recently halting construction. ments and collaboration across various sectors. Embracing

Moves like this have understandably had an impact green technologies is critical to achieving carbon reduction throughout the value chain. goals and ensuring a cleaner, sustainable future. However, this must be integrated with energy security, while also en- suring that economic growth aligns with social equity, and

Te Complex Energy Trilemma

Amid all this uncertainty, stakeholders across the off- a respect for the ocean space.

shore industry are understandably searching for ways to create more stability. Leaving the added instability of po-

Growing with the Ocean Space litical developments aside, most companies in the space The ocean space is in constant fux and demands on are wrestling with the challenge of the ‘energy trilemma’ stakeholders have never been higher.

– the simultaneous but sometimes contradictory achieve- While this may seem overwhelming to some, companies ment of environmental sustainability, energy security, should embrace the change and learn to chart their own and affordability. evolutionary pathway.

This is no easy task as offshore companies strive to opti- This requires familiarity with new technologies, care- mize resources, remain proftable, and continuously main- ful planning, and collaboration throughout the supply tain energy supply in the face of market and geopolitical chain, and with key external stakeholders. Crucially, the challenges, while also making moves to reduce emissions highest safety standards should always be maintained and reach decarbonization goals. along the way.

This is a complex balancing act, and there are many

Maintaining Asset Integrity obstacles to overcome. Nonetheless, the opportunities are

Extending the operational life of assets, while maintain- enormous. As we approach the middle of the 21st cen- ing asset integrity is one way to balance these demands. tury, companies which embrace the challenge, innovate,

Many offshore units have surpassed the 15-year mark on and evolve with the fast-moving ocean space will reap the locations that still have years to go on production, prompt- benefts for years to come. 20 OFFSHORE ENGINEER OEDIGITAL.COM