Our mission is to help our clients improve individual, team and company performance by increasing the awareness, understanding and application of appropriate risk management and technical safety techniques.
Risk management and decision-making are closely linked. Effective risk management involves identifying, assessing and mitigating potential risks associated with decisions. It helps decision-makers understand the uncertainties and potential negative outcomes related to various choices. In turn, informed decision-making considers risk assessments to make choices that align with organisational goals while minimising potential adverse impacts. Essentially, risk management provides a framework for decision-makers to navigate uncertainties and make more informed and resilient choices. All major decision categories involves its own set of risks, ranging from technological uncertainties to regulatory changes and market dynamics. Effective risk management strategies are crucial for making informed decisions that align with the goals of the energy sector, especially during the ongoing energy transition. In the energy sector and specifically in offshore oil and gas, there are many complex decisions which illustrate the importance of developing effective risk management strategies. RMRI has extensive experience and has advised many clients on:
- Exploration and Production: Deciding on the feasibility of exploring new offshore resources, considering geological uncertainties, exploration costs and potential oil or gas discoveries, and later, making decisions to enhance production efficiency through technology adoption, reservoir management and operational strategies.
- Infrastructure Development: Assessing risks associated with the installation of offshore platforms, considering environmental factors, engineering challenges and safety measures, plus deciding on the construction of pipelines for transporting oil and gas, involving considerations like seabed conditions, corrosion risks and safety standards.
- Health, Safety and Environment (HS&E) Decisions: Decisions related to emergency preparedness and response to ensure the safety of personnel and the environment in case of incidents.
- Market and Economic Considerations: Assessing and managing risks associated with fluctuations in oil and gas prices that can impact project economics and profitability allied to decisions on production levels.
- Regulatory Compliance: Ensuring adherence to local and international regulations governing offshore oil and gas operations, which may impact project timelines and costs.
- Decommissioning: Planning for the decommissioning of offshore facilities, involving considerations.
- Investment in Renewable Energy: Considerations include the long-term viability of renewable technologies, government incentives for clean energy projects and the potential risks associated with stranded assets in the fossil fuel sector.
- Technology Adoption: Assessing the maturity of cleaner, greener energy technologies, their integration potential and the alignment with global sustainability goals are critical factors in decision-making.
- Infrastructure Development and Grid Management: Evaluating the resilience of the grid, storage solutions and smart grid technologies becomes crucial in the context of integrating intermittent renewable energy into the system.
- Policy and Regulatory Compliance: Navigating the evolving regulatory landscapes, considering incentives for low-carbon projects and assessing risks associated with non-compliance or changes in policy direction.
- Decommissioning and Transition Planning: Considering the environmental impact of decommissioning, repurposing infrastructure for cleaner, greener energy projects and managing the social and economic implications are key aspects of decision-making.
Now, the energy sector is undergoing significant transformation driven by the imperative to address climate change and move towards a more sustainable and low-carbon future. As a result, decisions within the energy sector are increasingly influenced by various energy transition factors, which are shaping decision-making in different aspects of the energy sector such as:
Energy sector decisions are increasingly intertwined with the imperatives of the energy transition. Companies and policymakers need to factor in a diverse range of considerations related to technology, regulation, sustainability and market dynamics to make informed and future-proof decisions in the evolving energy landscape. RMRI’s knowhow makes us an ideal partner.
For further information about RMRI or how we can help you manage your risks, please contact us.