In today’s fast-paced, pandemic-ruled world, oil and gas operators face more challenges than ever before. Not only do they have to keep stakeholders and the environment safe, they also need to cater to shifting consumer and investor sentiments that expect organisations to operate ethically.
To explore these challenges deeper, Aaron Kelley, the head of Upstream’s branded content division, recently spoke with James Wagstaff, a senior vice president at PowerAdvocate, about the emerging risks facing operators in energy sector, what the future of the industry looks like, and how PowerAdvocate is uniquely positioned to help organisations transform during these turbulent times.
Keep reading for a sneak preview of the conversation and click the video players below to watch excerpts from the interview on-demand.
Pressing risks in oil and gas
In the first video, Aaron and James talk about the current state of risk management in the oil and gas industry.
In recent years, risk management has taken centre stage. Leading energy producers are keenly focused on preserving the safety of their teams. But there are a host of other risks to prioritise, too, like protecting against cybersecurity risks, enacting effective environmental, social, and corporate governance (ESG), preparing for extreme weather events, and more.
“There’s a huge evolving scope of risks that energy companies need to be more thoughtful about to the same degree that they’ve been thoughtful about and manage safety risks,” James says.
For example, in the wake of the COVID-19 pandemic, new risks are emerging around supplier financial performance. What happens if one of your contractors goes out of business due to the current environment? Additionally, investors are putting more and more pressure on operators and forcing them to focus more intensely on ESG efforts, in particular carbon capture objectives.
Adapting ahead of the energy transition
In the second video, Aaron and James talk about the future of the energy industry and what PowerAdvocate is doing to help operators prepare themselves for the challenges ahead.
Recognising that the industry needs to be disrupted, a number of operators have stated that they understand the world is changing and expect their product portfolios to change alongside this evolution.
“Those are the companies that I think are leading the industry forward,” James says. “The future of the industry, in my view, isn’t necessarily around a particular mix of assets. Rather, it’s a future where companies are very cognisant and are testing the right portfolio of assets that balances carbon, profitability, and the returns investors require.”
As operators continue to evolve, PowerAdvocate is there to lend a helping hand with the data, analytics, and operational know-how needed to understand how energy transition initiatives can impact their bottom lines and how to move to new energy sources quickly and cost-effectively.
Watch the full clip to learn more about the future of the industry, what PowerAdvocate is doing to support operators to leverage new opportunities, and some of the myths and misunderstandings around digitalisation that James frequently discusses with clients.