Recovery and renewal? Read my views on what to expect in the next 12 months.
What can we expect to hppen in energy markets in 2021?
I think one of the most interesting areas to watch will be the US and how the new Biden administration will impact the direction of energy?
So far, the signs point towards a strong focus on low-carbon energy. Arun Majumdar, a former Google exec, and director of the Advanced Research Projects Agency – Energy, is a front runner to be Biden’s energy secretary and other members of his transition team have a grounding in clean technology.
Meanwhile, Biden’s environmental policies and his intention to re-sign the Paris treaty on climate change signal a tougher outlook for US oil and gas.
In the UK, the energy industry involves many European partner organisations, so we will be watching closely the impact that the search for post-Brexit deals has on import and export energy markets.
Covid has been a structural shock. It’s demonstrated the importance of strategic planning. What companies are focusing on now is how they would cope with another spike, and how they are taking measures to make them ‘pandemic proof’.
The virus had an immediate impact on the offshore industries. Vessels cold stacked; crew rotations and travel to platforms suspended; and some projects put on pause, such as Claire South, the next phase of BP’s major development, West of Shetland.
Post COVID-19, office-based oil and gas, or offshore wind staff, will see greater levels of blended working between home and office – just as in other industries.
Offshore it’s a different story. In the nearer term, we should start to see activity increase as delayed projects come back on stream. But companies will also be innovating to make their business operations more resilient. This could further the business case for more minimum facilities platforms (MFPs) where flow rates, production and more are managed remotely.
“…companies are focusing on how they would cope with another spike, and taking measures to make their businesses ‘pandemic proof’…”
What are Archer Knight's priorities for 2021
In 2020, we launched Flowline, our software-as-a-service platform, which is revolutionising the way we deliver market intelligence to our clients on oil and gas and offshore wind projects,
For the year ahead we will continue to invest in digital solutions, exploring ways we can expand the service and give an even broader view of the market – and the potential business opportunities.