Investment in Inspection and Maintenance is Too Low Say Nearly Half of Senior Oil & Gas Professionals

May 8, 2018

New research from DNV GL reveals that 46 percent of senior professionals in the sector believe there has been underinvestment in inspection and maintenance of infrastructure and equipment in recent years. Just a quarter (28 percent) said that they expect to increase spending on safety in 2018. 61 percent will maintain current budgets and 5 percent plan to cut investment.

The findings appear in The State of Safety, a special report from DNV GL’s research on the outlook for the oil and gas industry in 2018. Based on a survey of 813 senior sector players, the report also affirms expectations for digital technologies to bridge the gap between long-term cost efficiency and enhanced safety in projects and operations.

While cost efficiency has been the top, or a high priority, for more than 82 percent of senior industry professionals since 2015, 40 percent of respondents believe digital tools and technologies have already improved safety over the past three years.

“The industry’s strong focus on cost control must continue in the long term for oil and gas to remain competitive and play an increasingly important role in the energy transition. However, our research confirms the sector’s clear belief that cost control must never come at the expense of safety,” said Liv Hovem, CEO, DNV GL – Oil & Gas.

“At DNV GL, we believe that digital technologies will be crucial to enhancing safety practices and improving hazard management. These will enable more effective and transparent risk communication across all levels of an organization as well as between multiple parties involved in projects and operations. We are investing in this field,” Hovem added.

Many new investments in safety will be aimed at digitalizing safety monitoring, processes and responses this year. For example, DNV GL’s MyQRA service draws on data from quantitative risk assessment (QRA) reports to create a single source of safety data that can help all stakeholders better understand important safety signals, make decisions and predict future outcomes.

DNV GL’s The State of Safety report also highlights the risks that implementing digital technologies can have on operations, particularly around cyber security. It concludes that existing guidelines and standards may not be sufficient to demonstrate the safety of new concepts.

The company is leading a joint industry project with a consortium of eight companies and two Norwegian universities to tackle the issue. Safety 4.0, due to begin this year, aims to develop a best practice framework to safely and securely introduce new technology solutions to the subsea sector.

Source: DNV GL Press Release