How can the supply chain seize emerging business opportunities as our industry transitions towards a lower carbon economy?
We tackled this subject at our recent webinar where one message came across loud and clear; the companies progressing aren’t the ones waiting for the ideal circumstances to occur, they’re proactively getting out there to see where their organisation could be part of the solution.
I’m well aware that our beleaguered supply chain has a lot on its plate as it struggles to overcome volatile commodity prices and the pandemic amid growing pressure to accelerate towards net zero carbon emissions.
This is not easy, and I don’t underestimate that.
I’m also aware that many of the solutions that will enable the oil and gas industry to contribute to the much-desired green recovery will be developed by our innovative supply chain where new and fresh ideas are being developed.
It’s a fantastic opportunity for our supply chain to shine.
Capturing that ingenuity and developing new solutions is critical.
While technologies exist that can make a difference, our business culture hasn’t developed at the same speed to deliver these as effectively as we could.
Feedback from across the sector reveals strong evidence that old ways of thinking is preventing organisations from working more effectively with one another …so it’s not just about technology, it’s also about attitude.
Our industry needs to make a collective commitment to adjusting its mindset so every organisation from large service companies to SMEs and specialist technology developers feels empowered to play its part in our future.
A quick poll of more than 380 people at our webinar revealed key areas where we could make a major difference in decarbonising the sector including operational improvements, embracing digitalisation and offshore electrification.
But these will only make an impact if there is joint effort.
We saw a great example of what can be achieved when Sian Lloyd-Rees of Aker Solutions outlined how many partner organisations had jointly developed an innovative solution to reduce emissions during refuelling operations offshore.
Imagine what could be achieved if this type of joined-up and inclusive thinking happened across the sector.
We know what to do, so what’s stopping us getting after it?
At Oil and Gas UK (OGUK), we’ve worked long and hard to promote better interaction across businesses of all sizes and the Supply Chain Principles aim to broaden understanding of what that really means.
The principles outline how to increase effectiveness and efficiency to help improve industry performance, eliminate unnecessary costs, add value and boost competitiveness.
They cover risk and reward, contractual terms and conditions and tendering practices and empower everyone to speak up – and much more which aim to promote good and fair business behaviours.
Even at this time of severe financial strain, there is no excuse for squeezing those ‘smaller guys’ just because they don’t have the clout or the spending power to have a stronger voice.
We have some fantastic examples and we showcase these on our Efficiency Task Force webpages so others can learn from progressive thinking and inclusive ways of doing business.
We recognise that it is up to each individual company to be passionate, practical, and proactive about chasing the potential business opportunities the energy transition promises, but shouldn’t we establish a more level playing field so they can flourish?
Getting that culture and mindset right is key to ensuring we weather this downturn emerging as an inclusive, innovative and important energy industry both now and in the future.
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