The Oil and Gas Industry Community is an exclusive community of peers. Partners in the community take an active role in the industry transformation and advance multi-stakeholder initiatives to deliver greater sustainability, resilience and performance into a variety of socioeconomic systems. Chief Executives constitute this Governors community and provide leadership, define the industry agenda and drive change.
The Transformation of the Oil and Gas Industry: To continue delivering socioeconomic value, the industry must lead the process of its own transformation, effectively integrating increasing Environmental, Societal and Governance (ESG) factors, digital technologies and an increasingly uncertain economic and political environment. Moreover, it must also continue to develop novel approaches to innovation and multistakeholder collaboration. The Forum is supporting the following community’s efforts:
- Dialogue series on Climate-related Financial Disclosures : The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) has developed recommendations for voluntary, consistent climate-related financial risk disclosures relevant for financial and non-financial companies. They cover the physical, liability and transition risks associated with climate change and indicate the parameters of effective financial disclosures across all sectors. This Dialogue Series convenes key actors in the Financial Sector to identify major roadblocks and recommendations for their effective resolution.
- Preparing for the Future of Work in the Oil and Gas Industry: The promise that new technologies hold in propelling growth for the Oil and Gas industry is immense. From cloud technology and big data analytics, to artificial intelligence and new energy technologies, the Oil and Gas industry and its operational models are going to transform significantly in the years to come. At the same time, the industry’s imperative for technological adoption is faced with an important knowledge and skills gap, creating challenges both for its workforce and leadership. As technology develops at an accelerated pace, tasks that were once thought to be reserved for humans will increasingly be automated. In parallel, technological progress increases the need for high-skilled labor. The latter is already having an impact on the number and type of jobs across economies, posing significant challenges for businesses and governments alike: Some of the key questions are a) how can employees currently in roles expected to be highly disrupted by automation be strategically re-deployed?; b) how can governments and businesses get access to the highly skilled talent they require; and c) what can be done by organizations to keep up with digitalization, upskill their current workforce and capture the promise of new technologies?
- Together with the Chemicals and Materials Industry Community, the Collaborative Innovation in Low Carbon Emitting Technologies is addressing several challenges. For example, hydrogen generation in low carbon processes, use of carbon dioxide and biomass as feedstock and the overall electrification of chemical operations could be more efficiently and effectively addressed in collaboration. The initiative seeks to accelerate the development and upscaling of low carbon emitting technologies for chemical production towards a marked GHG emissions reduction in the chemical industry, addressing their technology, regulatory, funding, market and collaboration challenges to accelerate their deployment. This initiative is one of the sector’s pathways to deliver on the Paris Agreement under the Mission Possible Platform.
- The Capital Project Complexity (CPC) initiative through IOGP’s JIP 33 strives for a structural reduction in upstream project costs with a focus on industry-wide, non-competitive collaboration on standardization and use of procurement specifications. The vision for the industry is to standardize equipment specifications for procurement of bulk materials and packages with a high degree of commonality. Value Data from the first implementation cases for LV switchgear specification has confirmed the business case for this effort. The actual savings achieved amount to10-13% of costs. Moreover, analysis suggests there is greater room for additional gains when new specs are re-used, vendors get familiar with them and deliver standardized products in larger scale. In addition to better economies on equipment expenditure, there are significant schedule compression benefits. Other important advantages include improved efficiency, equipment quality, reliability and safety.
The Transformation of the Energy System: Today’s global energy industry is characterized by significant shifts, which are creating new opportunities. New business models and technologies are changing the way energy is produced, delivered and consumed, especially for the electricity sector. Evolution of technology, social pressure on environmental sustainability and social inclusion are triggering major shifts in the energy industries and changing the way companies extract and deliver value.
However, the world remains far from becoming sufficiently sustainable, affordable and secure. Energy-related greenhouse gas emissions are trending upwards, in contrast to the recommendations from the Intergovernmental Panel on Climate Change and the commitments of the Paris Climate Agreement.
Our Platform is focused on pushing the boundaries of what will become the energy future through high-level, multistakeholder taskforces. Through our Energy Transition Dialogue Series we bring together leaders from government, civil society, energy technology companies, the oil and gas sector, the automotive industry, private investors and other integral industries, to identify policy and regulation proposals and innovative models of investment in infrastructure and industry innovations. Together we are working to ensure the energy industries evolve to deliver more value to consumers and stakeholders.
Contact: Pedro Gómez Head of Oil and Gas Industry Email: Pedro.Gomez@weforum.org