At the triennial World Petroleum Congress last month attended by Pathfinder, there were messages from Chairmen, CEOs and Presidents about Innovative Energy Solutions from representatives such as Darren Woods, ExxonMobil; Mike Wirth, Chevron; Amin H. Nasser, Aramco; Patrick Pouyanne, TotalEnergies; Anders Opedal, Equinor; Dave Lawler, bp America; and Jeff Miller, Halliburton. Climate Change took center stage as Darren Woods set the tone on Day 1 calling climate change “one of the most important conversations of our time”. Key discussion topics were the Energy Transition (or Energy Sustainability) and reducing our carbon footprint. It now seems to be recognized that the Petroleum sector’s future is tied to the global transition to cleaner fuels. They discussed the Dual Challenge of producing the energy the world needs to grow and prosper while reducing the environmental impact.
There were many common threads throughout their messages:
- No one industry, or no one company can do this alone. This shift is going to take all companies in our industry working together and new partnerships will be needed. Many feel that collaboration across industries and across government is also needed. For example, Chevron mentioned partnering with Delta Air Lines and Google to measure sustainable aviation fuel emissions data and analyze potential greenhouse gas reduction opportunities.
- To reduce greenhouse emissions, it will require Technology, Investment and Supportive Policies.
- It’s not an “OR” but an “AND”; not one or the other, but “ALL”. In order to reach these goals, diversity of approaches will be needed, but there is a consensus that conventional methods will still play a part for decades to come. Amin Nasser warned that prematurely abandoning hydrocarbons would lead to a chaotic energy transition, sending fuel costs soaring and lead to energy insecurity, rampant inflation, and social unrest. We heard a similar warning from Darren Woods of ExxonMobil who cautioned that “narrowly focusing on taking action on one aspect of the challenge could lead to unintended consequences.” Many companies discussed their path forward of continuing to invest in conventional projects if they meet low cost and low emissions hurdles while also investing in renewables. Going forward, companies will assess new investments based on being good for the business and beneficial for the environment. BP mentioned moving from an Integrated Oil Company to an Integrated Energy Company. They are planning to lower oil and gas production and focus on those with lower emissions while continuing to increase capital allocation for renewable projects.
- The Oil and Gas Industry needs to lead the charge; not only participate but drive. Be “Change Makers and not Noise Makers.” Mike Wirth of Chevron claimed that “no industry is better positioned” to tackle climate change. The industry has a demonstrated track record of doing what is difficult. It’s no longer if or when; action is needed now.
There is no doubt that change is occurring with the announcement of a multitude of carbon capture, recycled plastic, offshore wind, and other related projects. But one thing remains the same: No matter what the transition looks like or what projects are involved in this transformation, efficient and effective project delivery will be of utmost importance. As business drivers change and technology/delivery methodologies evolve, it will be more vital than ever to follow sound project management principles and practices.
Pathfinder is presently involved in numerous projects that are addressing these issues, from recycled cooking oil to offshore wind farms, from environmental clean up to inherently safer design technology. All projects, no matter what their drivers, their technology application, their business focus, need sound project planning and execution. The basic tools and processes of project planning and delivery still apply even though the details and methodology of delivery may change.
ABOUT THE AUTHOR
Stacie Wrobbel
Stacie is a Senior Executive Associate for Pathfinder, LLC and has more than 30 years of experience as a global Project Management expert.
swrobbel@pathfinderinc.com
856-424-7100 x144
