UK Quangos deliberate on offshore ‘digitalization’

UK Offshore Energy Digital Strategy Group updates report on UKCS data and digital maturity. ‘Progress’ reported on unlocking the potential of digitalization across the oil and gas and renewable energy sectors. Despite multiple calls for ‘collaboration’, data sharing ‘remains a challenge’.

The UK Offshore Energy Digital Strategy Group* (OEDSG) has produced a new version of its report on ‘UKCS data and digital maturity’. The 2023 study updates an earlier version produced in 2020. The latest analysis is said to ‘reveal oil, gas and renewables progress on unlocking the potential of digitalization across the oil and gas and renewable energy sectors’.

Some thirty oil, gas and renewable operator companies contributed to the survey with input from technology developers and supply chain companies. An 8% per cent improvement in the pace and integration of digitalization was reported across key metrics relating to strategy, leadership, training and capabilities. In comparison, the survey identifies a lag in data maturity which suggests more companies need to focus on developing data strategies if they are to capitalize on the opportunities ahead. There are signs that companies are increasingly adopting a wider range of digital technology and data, indicating that the situation will improve in the future.

The top-level conclusions (entreaties?) are that digital maturity still needs improvement, particularly in smaller organizations. Collaboration between operators and the supply chain is needed to ‘drive effective cross-industry digitalization’. Leaders need to foster a data-driven culture and equip employees in with the necessary skills and knowledge.

The 2020 edition of the report found, inter alia, that ‘a recognized business model for collaboration had not yet emerged’. Examples of genuine collaboration (outside of contracting arrangements) were rare. Industry had yet to find the business model for collaboration, where multiple organizations shared the benefit and acceptance of risk.

We were interested to see just how ‘genuine collaboration’ has improved in the last three years. The 2023 report uses the word ‘collaboration’ 160 times – an average of 4 times per page over the 48 page oeuvre! Despite the word count, it would appear that ‘organizations continue to be wary of data sharing’. While there is increasing adoption of ‘data related technologies’ (for example, cloud platforms, data mesh) that enable greater levels of collaboration, collaboration based on data remains a challenge, particularly where sharing of data may be seen to be a risk to an organization’s competitive advantage.’ What can one say … ‘Duh’?

Indeed, what can one say about this verbose hymn to digital. It is wrong on so many counts. The multiple quangos telling companies what they should be doing. Undefined terms (what is digitalization, digital transformation?). The notion that the ‘cloud’ or ‘data mesh’ in themselves can influence how much data is shared. The confounding of ‘digital’ with ‘net zero’. What is wrong with confidential data and competition anyhow? Perhaps most telling is the contradiction in the OEDSG venture itself. OEDSG is primarily a ‘collaboration’ that has failed to deliver anything more than hot air. One likes to think that the individuals involved in this venture are all smart folk. But they have collectively‘collaborated’ on something that is definitely less than the sum of its parts.

OEDSG has representation from a staggering number of Quangos* and industry bodies viz. Offshore Energies UK, Opportunity North East, the Net Zero Technology Centre, the Technology Leadership Board, the North Sea Transition Authority, The Crown Estate (owned by King Charles!) and Crown Estate Scotland (described elegantly as ‘yet another Quango’). Deloitte supported the effort with survey design.

* Quasi-autonomous governmental organizations.

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