Enabling Offshore O&G Projects for the Future
They are designed to withstand some of the harshest conditions on the planet. They tower hundreds of meters above the water and can be as broad as two football fields, goal to goal. Offshore Oil platforms are the extraordinary ‘superheroes’ of the sea who stoically service the oil and gas supply to their worldwide clients. These gargantuan structures, many with hull weights of more than 10,000 metric tons, indeed are feats of engineering as they endure the full might of wind and sea.
Unyielding and resilient to external forces, the remote offshore platforms seemed almost invincible, but 2020 exposed their ‘kryptonite’ — a global pandemic. The resultant aftermath saw the lowest utilization numbers since 1955, with figures as low as 26% in the North American Permian Basin.
Operators took the obvious response and quickly cut CAPEX budgets by 20–30% in response to low demand and oversupply. The global Rig demand in the Census period also fell by 82% from its peak in 2014, a devastating drop that would stop the heart of any Oil and Gas Executive.
Recovery from this revenue-ravaging virus will require a prognosis where companies and their facilities remain economically viable. The future of the petrochemical industry is predictable, and finite planet resources limit its lifespan. Pressure on the Fossil fuel industry will increase, whether it is from a pandemic or decarbonization.
So, what are the answers to survival and endurance during these coming years?
- Reduce cost, increase efficiency and impact safety
- Achieve success with communication and transparency
- Reduce industry challenges with digital strategy
Owner-operators will be looking at the Vendors they engage with and how they have embraced DX to increase productivity and improve risk management. CAPEX reductions have cast a shadow on Engineering and Construction businesses, with projects canceled or rescheduled.
The ‘silver lining’ to this situation is clear and opportune; businesses must ready themselves rather than take the risk of losing out to competitors who have aggressively sought to continue on their digital journey.
More about the answers to survival in the coming years you can find in our blog.
This article first appeared on the MODS Energy Industry Blog https://blog.mods.solutions/enabling-offshore-oil-and-gas-projects-with-digital-transformation
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