Expert viewpoint - The future of the offshore industry: how to decarbonize and digitalize

The offshore industry is facing the unprecedented challenges of the energy transition and digital transformation. DNV’s Offshore Classification is dedicated to support and drive the offshore industry’s transition to a sustainable and efficient future.

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The offshore industry in a changing world

The offshore industry is undergoing a major shift as it adapts to the changing demands of the energy market and the society. The need to reduce greenhouse gas emissions and enhance operational efficiency has driven the offshore industry to explore new ways of decarbonising and digitalising its operations. The offshore industry accounts significantly to the global oil and gas industry emissions, which need to reduce by 75% by 2050 to align with the Paris Agreement. Moreover, the offshore industry is experiencing a digital revolution, as new technologies and data-driven solutions enable new ways of working, and enhancing safety, reliability, and efficiency. From electrification of offshore platforms to the adoption of renewable energy solutions, and the implementation of digital technologies, the offshore industry is embracing innovation to achieve its sustainability and performance objectives.

However, these new solutions also bring new challenges and risks that need to be addressed by the offshore industry. How to ensure the safety, reliability and quality of the new technologies and systems? How to comply with the evolving regulatory and environmental standards? How to manage the complexity and uncertainty of the offshore environment and operations? How to leverage the data and insights to optimise the offshore assets and processes?
These are just some of the questions that the offshore industry needs to answer. And DNV, as a leading provider of classification and technical assurance services for the offshore industry, has the expertise, experience, and tools to anticipate and manage the uncertainties that the future may bring.

DNV Offshore Class

DNV’s Offshore Classification provides independent verification and certification of offshore assets, systems, and operations, based on DNV’s standards and industry best practices. This applies to several types of offshore units, such as floating wind turbines, FPSO (floating production, storage, and offloading) vessels, drilling units, offshore fish farms and other ocean infrastructures. From design and construction to operation and decommissioning, the entire lifecycle of the asset is covered. DNV’s Offshore Classification aims to ensure that offshore assets and operations are safe, reliable, and compliant, and that they meet the expectations of the offshore industry and its stakeholders.

Decarbonization

Decarbonization involves reducing the carbon intensity and emissions of the offshore industry, by using cleaner energy sources, improving energy efficiency, and implementing carbon capture and storage (CCS) or other emission abatement technologies. Decarbonization is not only a moral duty and a social responsibility, but also a strategic imperative and a business opportunity. DNV supports the offshore industry in its decarbonization journey, by providing a range of services and solutions, such as:

• Developing standards, guidelines and best practices for the design, construction, operation and maintenance of renewable offshore assets, such as offshore wind farms, floating solar, offshore hydrogen production and storage, and offshore CCS facilities. For example, DNV has published a standard for floating offshore wind turbine structures, which will help the industry accelerate the deployment of this promising technology.
• Ensuring safety, reliability, quality and performance of offshore assets and systems, and to demonstrate their compliance with relevant regulations and standards. 
• Providing advisory and consultancy services, such as feasibility studies, environmental impact assessments, lifecycle assessments, carbon footprint calculations, and decarbonization roadmaps. This helps the offshore industry identify and implement the most suitable and cost-effective decarbonization solutions for their projects and operations. For example, DNV has recently helped Equinor, Shell and Total to conduct a joint feasibility study for the Northern Lights project, which aims to develop a large-scale offshore CCS value chain in Norway. 
• Providing guidance and verification on the use of low-carbon sources, such as hydrogen and ammonia.
• Conducting research and innovation projects, in collaboration with the offshore industry, academia and other stakeholders. These projects explore and develop modern technologies and solutions for decarbonization.

Digitalization

The offshore industry is also facing the opportunities and challenges of digital transformation. The advances in digital technologies and data analytics enable improvements in operational efficiency and overall performance of assets. The offshore industry is also looking for ways to cope with the increasing complexity and uncertainty of the offshore environment and operations, as well as to gain more insights and value from the data collected and used. Digitalization can also enable the creation of new value propositions, business models and services, such as data-driven decision making, predictive maintenance, remote operations, and digital twins. Parallel to the endless positive possibilities, digitalization also introduces threats in the form of cyber-attacks. DNV recognizes these risks to many industries moving forward and is therefore investing heavily in cyber security. DNV is now one of Europe's leading cyber security providers, and the offshore industry is a key market.

DNV’s Offshore Classification supports the offshore industry in adopting these new digital business models and ways of working. For example, DNV has recently launched a remote survey service, which allows the offshore industry to conduct inspections and audits without physical presence, saving time and costs and reducing the exposure to health and safety risks. 

Some of the key digitalization services that DNV is involved with and expects to grow in the offshore market are:

• Digital twins: Digital twins are the virtual representations of the physical offshore assets and systems. They can help the offshore industry monitor and analyse the structural integrity and performance of their offshore assets and systems, as well as optimise their design, operation, and maintenance. DNV digital twin services include the creation and use of digital twins, as well as the validation and verification of the accuracy and quality of the digital twins. 
• Data quality and management: Ensuring the quality and integrity of the data collected and used for offshore operations throughout its lifecycle is essential. Guaranteeing reliability, usability and compliance with data security and privacy regulations will be increasing important going forward. DNV’s relevant services include the assurance and governance of the data quality and integrity, as well as the secure and efficient storage, access and sharing of the data.
• Data analytics and insights: This is the processes of analysing and interpreting the data from the offshore assets and systems. Advanced techniques such as machine learning, artificial intelligence, and statistical modelling are often used. Data analytics and insights can help the offshore industry generate recommendations, such as identifying anomalies, trends, and opportunities for improvement. 
• Digital assurance: This involves safeguarding the safety, reliability and quality of the digital technologies used for the offshore operations. Digital assurance and certification services can help the offshore industry demonstrate the trustworthiness and value of their digital solutions, as well as to mitigate the risks and liabilities.

What is the future of the offshore industry?

The future of the offshore industry is complex, but also exciting and promising. Coping with the energy transition, and the increasing demand for digitalization will require new skills, competencies, and mindsets. The traditional oil and gas industry will also have to embrace new opportunities and innovations, such as offshore wind, green hydrogen, and CCUS; which will in turn create new markets, partnerships, and business models. All whilst balancing its economic, environmental, and social responsibilities, and demonstrating its value and relevance to society.

The offshore industry can prepare for the future by adopting a proactive and strategic approach, and by seeking the support and guidance of trusted and experienced partners, such as DNV. 

 

 

8/22/2024 12:36:00 PM