Page 39: of Maritime Reporter Magazine (April 2016)

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actively managing their information security, just over half (58%) have adopted an ad hoc management strategy with only 27% setting concrete goals.

Through collaboration and investment in innovation, the industry can over- come the challenge of extracting value from complex data streams. Neverthe- less, effort is required to ensure data security and reliability. DNV GL is already exploring how we can leverage our reputation for trust and technical expertise to offer our customers an independent platform for key industry data and digital services. It’s a potentially very exciting space for us.

In conclusion, is the history of boom and bust in the energy sector doomed to repeat itself? More importantly: what 2 or 3 habits, or areas of concen- tration, are critical to ensure “the industry” learns from its mistakes and evolves?

It is concerning that a majority of senior oil and gas professionals (56%) believe that the industry is repeating the mistakes of previous downturns and have concerns over the loss of jobs and experience and lack of ef? ciency.

We believe a new phase of cost management is needed, as nearly three quarters (73%) of global respondents to our survey are preparing their company for a sustained period of low oil prices.

Four in 10 (41%) of those questioned put cost management as the top priority for 2016, alongside tougher decisions on capex, prioritizing headcount reduc- tions and increasing pressure on the supply chain. It is clear that with the sus- tained low oil price, these short-term cost cutting measures are already ? rmly in place and look set to continue this year.

To prevent repeating past mistakes, real change is needed now - cutting com- plexity, increasing collaboration and driving standardization. These measures will enable the industry to adjust to the new reality and put it on a sustainable growth path for the long-term.

There are some promising signs that the industry is adopting longer-term thinking on cost management: six in 10 (61%) respondents agreed that op- erators will increasingly push to standardize their delivery globally, up from 55% in 2015 and 52% in 2014. Even in the current price environment, 49% said their com-pany is taking a long-term approach to innovation and

R&D. However, nearly one in ? ve companies (18%) does not have a strategy in place to main- tain innovation.

Innovation and collaboration are even more important in this current price environment. It isn’t just about ? nding the breakthrough technologies – although that’s important too - it’s also about making things simpler and more ef? cient and ultimately helping the industry to safely cut costs.

While many others seem to be slowing down on innovation, we in DNV GL are continuing to in- vest 5% of our revenue in R&D as we see this as a key enabler for sustainable long-term competitiveness. 39

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.