The energy sector is experiencing a transformative shift as the world moves towards more sustainable practices. In fact, Proteus was born in response to this changing environment, with a downturn in oil and gas projects. In 2024, important trends are happening because of efforts to reach net-zero emissions, new technology, and policy changes.
In this blog, we’ll look at the top trends shaping the energy sector this year including increased investment into renewable energy projects, the decarbonisation of the oil and gas sector, further exploration of carbon capture and storage technologies and the rapid digitalisation of the energy industry.
Continued Investment in Renewable Energy Projects
There is no surprise that renewable energy comes in at the top of the list of trends.
Climate change is a top priority globally and governments are investing more in renewable energy infrastructure in an effort to meet ambitious climate goals and reduce greenhouse gas emissions.
The UK’s primary energy mix has always been dominated by North Sea oil and gas. However, in recent years, renewable energy sources have become more competitive with traditional fossil fuels. Technological advancements have greatly reduced the cost of renewable energy generation whilst innovation in their design has enhanced their reliability and efficiency.
The dominance of fossil fuels is slowly being displaced by the growth of wind and solar energy projects. According to OEUK, the UK has more capacity for offshore wind power than any country apart from China. This is due to the North Sea’s windy conditions, relatively shallow waters, oil and gas expertise and strong government policy support.
The UK has set ambitious targets for offshore wind power, 50 GW by 2030. By the end of 2023, 15 GW was installed offshore with a similar capacity onshore. Numerous projects are underway in 2024 to try to meet this target, such as Hornsea 3, Orsted’s third record-breaking offshore wind energy project which will generate power to more than 3.3 million UK homes.
Decarbonising Oil and Gas Production
The overall decline in domestic oil and gas production will be accompanied by significant efforts to decarbonise production methods to reduce the sector’s carbon footprint.
Offshore technology can help reduce methane emissions by using new technologies, and connecting offshore wind projects to oil and gas platforms to reduce carbon emissions. This can also create job opportunities. Moreover, BCG advocates for removing unnecessary equipment and running operations as efficiently as possible citing that one North Sea operator lowering their emissions by 30% and operating costs by 20% by reducing its equipment needs.
It is promising that Deloitte reports that in 2024 O&G companies are focusing their spending on improving operational efficiency, direct emission reductions and investing in low carbon fuels. Decarbonising oil and gas production processes are integral to meeting net-zero targets. At the same time, companies that lead on decarbonisation not only reduce their carbon footprint but they can also gain higher revenues and a competitive advantage.
Increased Investment in Carbon Capture and Storage (CCS) Projects
Carbon capture and storage (CCS) involves capturing the carbon dioxide released from industrial activity or burning fossil fuels and permanently storing it deep underground.
Carbon capture and storage are crucial to the UK’s strategy to transition to net zero by 2050.
The Energy Transition Outlook Report states that CCS is benefiting in the short term from the 20bn worth of government support and in the long term will be driven by the expected increase in the carbon price which will incentivise installation of CCS for industrial use, power generation and H2 production.
Typically, CCS is transported by pipeline however on occasions where this is not possible, shipping is an efficient alternative. Shell has been a key player in the development and procurement of the world’s first ships specifically designed to carry liquid CO2 from CCS.
Top companies like Shell recognize the importance of CCS in achieving zero emissions and cutting carbon in challenging industries. This demonstrates their commitment to sustainability and environmental responsibility: they understand the potential of CCS technology in addressing climate change and meeting emission reduction goals. By investing in CCS, companies like Shell are taking proactive steps towards a cleaner and greener future.
Continued Digitalisation and the Adoption of Artificial Intelligence
In 2024, the digital transformation of the energy sector is continuing at pace. Deloitte asserts that the oil and gas industry has frequently been at the forefront of adopting cutting-edge technologies to enhance efficiency, reduce costs and advance safety and sustainability measures.
Fit-for-purpose project management software has revolutionized the running of projects in the energy industry with improved decision-making due to data-driven insights and real-time monitoring encouraging proactivity and early intervention.
Proteus offers unrivalled project control and visibility as well as automating tasks such as reporting. Worley emphasizes that features such as task automation are particularly valuable due to the energy sector’s skilled labour shortage as it helps cover more general roles that companies are struggling to fill and enables humans to focus on higher-value tasks to prevent projects from slowing.
Moreover, there is the growing role of artificial intelligence (AI) in projects which is set to increase rapidly. For instance, 73% of C-Suite in the energy sector said that they were piloting or planning AI activities. Deloitte stresses the potential of AI to cut costs, increase efficiency, and revenue expansion and accelerate innovation for the energy industry.
For companies to use these technologies effectively, they need access to data that is consistent and compatible across the energy industry. Yet, the low level of maturity for technologies managing projects is a recurring cause for low project success rates. This reiterates the importance of energy companies embracing technological advancements to support successful project delivery and keep their organizations competitive.
Conclusion
These key energy sector trends in 2024 reflect the increased pressure to successfully transition toward renewable energy sources and reach ambitious net-zero emission targets in time.
At Proteus, we have seen energy companies address these challenges holistically, by optimizing their entire structure for the future. Leveraging technological developments, such as project management software and AI solutions, is imperative to maximizing efficiency and managing successful projects in the energy sector.
About Proteus
Proteus is an end-to-end project management solution developed for the energy and engineering consulting industries.
Proteus is industry-proven and enables consultancies to meet project demands across the full lifecycle, from proposal development to project delivery. Proteus helps its customers win more business, increase efficiencies, manage expenditures, and improve project controls.
Critical workflows, automation, and controls are integrated into Proteus. These include opportunity evaluation, proposal building, resource planning, budget tracking and forecasting, real-time multi-level restricted dashboards, and project performance analytics.
Third-party integrations and customised solutions allow Proteus’ users, which include C-suite, project leads, and engineers, to get the exact software solution needed for their business.
We offer a free onboarding consultation service to ensure your company account is set up to your company’s needs.
How to get Proteus
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