The demand for energy continues to increase and oil prices remain high. Public concerns about climate change have never been greater and the energy industry is increasingly being challenged to maintain production safely and responsibly. DNV Energy’s key role is to assist the industry in fulfilling its responsibilities for a sustainable future.
The International Energy Agency (IEA) foresees an increase in energy demand of 50 per cent until 2030. Oil and gas are expected to cover a major part of this increase. Due to the current level of consumption and prices, substantial innovation and growth can be expected during this period.
Technological developments to access new hydrocarbon reserves and a need to better manage the safety, environmental and commercial risks, both with regard to production and consumption are evident.
In addition, due to the heightened concerns about climate change and environmental requirements, there is a drive for alternatives to hydrocarbons, such as renewable energy.
By establishing the DNV Energy business area, DNV is determined to grow with the market and aims to be even better positioned to pursue the many opportunities that exist.
Building on strengths
DNV Energy was established to become acknowledged as the leading professional service provider in safeguarding and improving business performance within the energy sector. This shall be achieved through holistic and balanced management of opportunities and threats from commercial, technical, environmental, human, organisational and societal factors.
DNV Energy builds on the strengths of the former DNV Technology Services and parts of the former DNV Consulting.
The combined service offering includes enterprise risk management; operations excellence; technology qualification; offshore classification; verification; and safety, health and environmental risk management.
DNV Energy serves oil and gas companies in the upstream and downstream sectors, pipeline companies, electricity producers, industry subcontractors and suppliers, in addition to investors and authorities. Activities relating to Arctic areas, renewable energy, and the reduction of greenhouse gas emissions are also essential for this business area.
Improving the energy value chain
Oil and gas companies receive valuable assistance from DNV Energy across the entire value chain, from exploration, production and transportation to refining and distribution.
In the area of deep and ultra-deep water developments, DNV is providing cross-disciplinary expertise in field development strategy, technical and operational aspects, and risk management in North and South America and in Europe.
In the liquefied natural gas (LNG) sector, DNV is involved in supply chain projects in Russia, North America, Europe and Asia. As the demand for LNG increases, so too does the demand for DNV’s independent and expert advice on the risks related to production, storing, shipping and re-gasification of LNG. For example, DNV Energy assisted the multinational utility company Endesa with its LNG projects by providing unbiased information to decision makers. This ensured the best possible basis for authority approval and improved business performance. The project involved performing detailed technical assessments, developing economic models for the business case, participating in public hearings as an independent expert, and developing management documentation.
Capitalising on explosive growth
Increased global demand coupled with the rapid growth of emerging markets, such as China and India, are creating enormous opportunities for energy companies. China is one of the countries targeted for extraordinary growth by DNV Energy. In 2006, PetroChina adopted DNV’s isrs7 system at its sites across China in a bid to improve its safety, health and environmental performance. The Chinese energy major operates the largest pipeline network in China, totalling more than 33 000 kilometres in length. This contract was a significant milestone for DNV’s consultancy penetration into the Chinese market.
In Singapore, DNV Energy is capitalising on the buoyant Asian newbuilding market by providing assistance to clients on jackup newbuildings. One example is a jackup drilling rig built at Keppel FELS for the Norwegian continental shelf. This will be the largest jackup drilling rig ever built in Singapore and one of the largest constructed for the harsh North Sea. The KFELS N-Class jackup will also be prepared for the installation of a production plant on board. This concept is specialised for tail-end production or for marginal fields that are not economical to develop using other measures.
New opportunities
DNV Energy is playing a significant role in the development of cleaner energy and renewable energy sources to ensure that the business potential is unlocked in a safe and responsible manner. Examples here include the assessment of carbon capture and sequestration in combination with enhanced oil recovery solutions in Europe, and verification systematics for the storage of CO2 in underground reservoirs in the US. Furthermore, DNV Energy has carried out feasibility studies of large-scale compressed air energy storage in depleted reservoirs, aquifers and salt domes in the UK. DNV is also leading in the certification and qualification of wind farms in Europe, and involved in the piloting of a hydrogen infrastructure project in Norway.
As oil and gas facilities age, the risks and threats to the business increase. Through its operations excellence services, DNV Energy helps clients identify and manage these risks and threats. One example of such a project is DNV’s assistance to Gasco, Abu Dhabi Gas Industries Ltd, with the preparation of an Asset Integrity and Reliability Management System (AIRMS) framework. DNV was asked to review the scenarios the gas company had already identified, and to uncover any other threats. Furthermore, DNV quantified the risk to Gasco, and proposed measures that should be taken to reduce this risk. From this Gasco was able to prioritise its projects to address these concerns.
New challenges
As globalisation and regionalisation transform the energy industry, DNV, in the pursuit of following and supporting its clients, often operates in countries with unstable economic and political conditions. This has resulted in challenges for DNV Energy with respect to business practices and safe working conditions for employees – challenges that the business area acknowledges on the corporate responsibility front. For instance, the use of agents to assist in entering a new market is challenging, due to the fact that in some countries national practices do not always follow international laws.
On the other hand, these emerging markets present opportunities for DNV to contribute towards raising competence levels within the area of safety, health and the environment (SHE). This has a positive contribution for both DNV employees undertaking the work and clients as they improve their SHE practices. DNV Energy strives to raise competence levels at all times in support of DNV’s core objective of safeguarding life, property and the environment.
A critical success factor for DNV Energy is the scarcity of and competition for qualified and competent people. This is a very real and dynamic issue for the business area, and DNV has embarked on corporate and business area specific attraction and retention initiatives, with the aim of attracting the expertise needed and retaining an optimal work force.
Outlook
The future for DNV in the energy sector is one of growth – derived from increased sales within the existing portfolio, new services and targeted acquisitions. DNV has been assisting oil and gas companies in safeguarding and improving business performance for many years, and is committed to continue to do so in the wider energy perspective.
