The transition of the oil and gas industries to renewable energy is a complex journey, necessitated by the urgency to combat climate change and promote sustainability. This gradual change takes into account that fossil fuels will continue to be part of the energy mix for some time, as our societies rely more and more on renewable energy. Companies are mobilizing their skills, customer bases and oil and gas infrastructure to facilitate this transition, leveraging the commonalities between the two industries. In both sectors projects follow similar cycles: development, financing, construction, operation and sale of energy. Although renewable energy projects can pose new technical challenges, the industry can leverage the sector-specific skills and competencies of the oil and gas industry.
Beyond technical skills, companies must cultivate talent who can manage business processes, strategize, and lead new projects.
The know-how resulting from the maturation of large-scale greenfield projects, the operational excellence of the sector and the rigorous culture of quality and safety established over recent decades will be valuable assets. During this transition, there is a need to build as you go, which requires individuals to be self-reliant, optimistic, and able to balance mid-term planning and short-term execution. This evolving environment presents significant skills transfer challenges, for employees leaving the oil and gas industry, and for companies investing in learning and development. Beyond technical skills, companies must cultivate talent who can manage business processes, strategize, and lead new projects. To successfully navigate this new sector, it is essential to have technical and operational knowledge, to be adept at project management, and to be able to define solid business models.
Additionally, understanding and complying with local safety standards and regulations is essential, especially for emerging technologies. Projects in Western Europe or the UK are subject to strict standards, requiring teams to adapt to market uncertainties while managing changing project parameters.
The hydrogen market for example, currently in full development, needs a balance between the maturation of projects and adaptation to market fluctuations. This ability to adapt is key to success in the new energy landscape, where flexibility in project design and execution is paramount. Hydrogen will be an essential component of energy supply. However, the sector revolves around several different production methods, each presenting its own challenges to overcome. Given current energy prices, efforts are being made to make green hydrogen competitive. Hydrogen derived from nuclear energy, or pink hydrogen, remains controversial, with some countries, such as Germany, hesitant to import it from France. In the production of blue hydrogen, the capture and permanent storage of CO2 depends both on the transport and storage infrastructure of hydrogen and CO2, and on the willingness of customers to integrate this source of energy. energy in their activities.
Other sustainable energy solutions are also experiencing rapid development. Liquefied natural gas (LNG) and electric natural gas (EGN) play an important role in the energy transition. LNG offers opportunities to advance sustainable energy, while GNE, produced from renewable electricity, is chemically identical to traditional methane and can be used in existing infrastructure without modification. This approach maintains conventional natural gas competency while providing sustainability benefits. Achieving carbon neutrality requires focusing on material reuse and aligning with environmental, social and governance (ESG) principles. Innovative solutions must be explored, such as combining biogas and hydrogen to create systems capable of extracting CO2 from the atmosphere, or enriching biological organic waste with nitrogen to reduce emissions from l ‘agriculture.
With the evolution of technology and industrial scale, it will be possible to get closer to large industrial customers and apply the knowledge and culture developed in the mining and natural gas sector
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With the evolution of technology and industrial scale, it will be possible to get closer to large industrial customers and apply the knowledge and culture developed in the mining and natural gas sector. However, the return on capital of renewable projects is often lower than that of traditional exploration and production companies, highlighting the importance of strategic planning and innovation. To evolve in this sector, you must understand the constraints and motivations of all the players. But stakeholder management is not enough. To succeed, it is necessary to foster collaboration and long-term partnerships throughout the value chain and between different sectors. A short-term focus on cost minimization can undermine the potential supplier base. Making renewable energy profitable adds a new layer of complexity. To reduce costs and make renewable energy more viable, it is important to scale up operations, implement efficient solutions, secure fundamental infrastructure and foster a competitive market. The falling costs of offshore wind projects around the world show how economies of scale can drive down expenses.
The diversity and sometimes immaturity of policies and regulations between countries and regions constitute a significant obstacle and complicate the management of energy supply and demand. This has the potential to destabilize the renewable energy sector. It is difficult to align regulations within European countries and globally; for example, a green molecule produced in the United States might not meet European standards. Another major challenge is the lack of coordination between public and private entities. Addressing this requires familiarity with permitting processes and proactively engaging with local communities, councils and central governments to ensure their support. Since many large renewable energy and hydrogen projects are developed through public-private partnerships (PPPs), it is necessary to have a comprehensive understanding of the external environment. This includes addressing stakeholder concerns, understanding government priorities, and maintaining transparent communication throughout the project lifecycle.
The maturation of the green energy industry, driven in part by regulatory disparities, requires a cultural shift on the part of those transitioning from the oil and gas industry, a sector where policies are more established. Engineering teams in the renewable energy sector must develop technology while engaging in lobbying, a valuable skill in this evolving sector. Ultimately, the energy transition is a skills-driven exercise. Companies and institutions that have the necessary know-how, skills and experience will govern this transition to a new robust and efficient energy landscape. Today’s oil and gas technologists and professionals will have the opportunity to form the backbone of tomorrow’s renewable energy industry.
About the author
An engineer by training, Line Stenstad has extensive experience in the energy sector, particularly in oil, gas and offshore wind. Its know-how, developed during complex projects in Europe and the Middle East, includes project management, calls for tenders and negotiations. Passionate about the ecological transition and digitalization, she sees technology, partnerships and skills development as powerful tools for generating positive change.
