Sustainability and security; the key drivers to the offshore energy market’s reputation

As part of her experience at industry event OSEA in Singapore, our Business Development and Marketing Lead Emily Dove comments on the importance of building a strong brand and reputation for marine and offshore energy companies.

The offshore energy market is rapidly evolving. Traditional oil and gas (O&G) operators are looking at renewable energy opportunities and like all industries decarbonisation and digital technology are significant challenges. As new investments pour into offshore wind and floating storage systems, offshore energy companies must not only innovate, but a focus on building a strong brand and reputation is also important. In a competitive, complex and highly regulated market, reputation is a key differentiator that can affect everything from investor confidence and consumer demand to regulatory approvals and safety.

Offshore energy companies face increased pressure from governments, investors and consumers to meet stringent environmental goals and demonstrate leadership in sustainability. As global attention intensifies on climate change and CO2 emissions, companies that showcase their commitment to green energy solutions will gain a competitive advantage. Reputation has become a critical asset, influencing everything from customer loyalty to partnerships and access to capital.

For example, companies involved in offshore wind and renewable energy are closely watched by both regulators and investors. A strong brand that is associated with sustainability and ethical practices can enhance a company’s market positioning, help them attract more investment and secure contracts. Conversely, companies that fail to align their operations with environmental goals risk damaging their brand and losing market share to more proactive competitors.

Optimising efficiency and safety in next-generation offshore operations

The offshore energy market is shifting rapidly, and next-generation offshore platforms and vessels are essential to improving efficiency and safety in the sector. Offshore operations are becoming more sophisticated with the adoption of renewable technologies, electrification and automation.

Offshore platforms and vessels designed must be rethought to maximise energy efficiency while reducing emissions. Advanced monitoring and control systems are increasingly used to optimise operations, reducing fuel consumption, operational downtime and the potential for human error. Automation technologies, such as robotics and AI, are also critical for improving safety standards and reducing operational risks, helping to prevent accidents and operational failures.

With greater automation comes the ability to implement more robust safety measures. Offshore platforms are integrating AI-driven systems that predict potential equipment failures and recommend pre-emptive actions. These measures not only improve safety but also reduce operational downtime and enhance overall efficiency.

Investment trends in offshore operations

As the offshore energy sector diversifies, so do investment opportunities. Offshore wind, floating storage systems and carbon capture and storage (CCS) are attracting significant capital. These sectors are seen as key enablers of the energy transition, drawing both public and private sector funding.

With more than $950 billion expected to be invested in offshore wind over the next five years [1], there is a strong focus on expanding renewable energy infrastructure. Floating wind platforms, which can be deployed in deeper waters, are expected to become a major growth area, with the potential to provide clean energy at a larger scale than fixed-bottom offshore wind farms.

Although still underdeveloped in Asia, CCS is gaining traction as a critical technology for decarbonising offshore oil and gas operations. Companies are investing in new subsea infrastructure and technologies to capture and store CO₂ emissions, providing a cleaner alternative to traditional energy production.

Electrification is rapidly becoming a key enabler for decarbonising offshore platforms and vessels. Helped by offshore wind farms that are connected to onshore grids, electric offshore service vessels are able to charge their batteries and operate emission-free for the offshore energy industry.

While the long-term benefits of electrification for offshore energy assets - such as reduced fuel consumption and lower emissions - are clear, the initial capital expenditure (CAPEX) required to implement new systems is significant. Significant investment is required to upgrade offshore platforms to accommodate new electrical infrastructure, including subsea cables and hybrid systems, transformers, energy storage and power converters. The new infrastructure can also be expensive to maintain. In the long-term, operational savings can offset these costs and electrification will be a key part of the sector's sustainable future.

Cybersecurity for offshore energy platforms

With the growing digitalisation of offshore platforms, cybersecurity has become a critical concern. Offshore platforms are vulnerable to cyberattacks due to their reliance on remote communications, legacy systems, and complex supply chains.

Offshore energy infrastructure faces unique vulnerabilities, such as dependency on satellite communication and outdated control systems, which can be exploited by hackers. Protecting these systems from cyberattacks is essential to maintaining operational safety and preventing costly disruptions.

Offshore operators must strike a balance between ensuring security and maintaining operational efficiency. This can be achieved by integrating cybersecurity measures into platform and vessel designs, implementing real-time monitoring systems, and regularly updating security protocols to address new threats.

The offshore energy industry should collaborate on cybersecurity by sharing threat intelligence and best practices. Industry alliances and information-sharing platforms can help to strengthen the security posture of the entire sector, ensuring that companies are better prepared to mitigate emerging cyber threats.

Singapore’s bold commitment to green growth

At OSEA 2024, Singapore’s commitment to supporting the offshore energy sector’s green transition was clearly articulated by Minister Alvin Tan. The government will invest SGD $100 million over the next five years in marine and offshore energy companies to support green growth and meet the nation’s own net-zero target by 2050. This investment will likely drive innovation in sustainable technologies helping to position Singapore as a key player in the global transition to greener offshore operations.

Offshore energy companies must not only focus on technological innovation and efficiency but also build and maintain a strong brand and reputation. As the market shifts toward renewable energy and a focus decarbonisation, a solid reputation for sustainability, safety and innovation will be essential for gaining investor trust, securing contracts and navigating the complex regulatory landscape. Reputation is more than just a marketing tool, it’s an asset that can significantly impact a company’s long-term success in the offshore energy sector.

[1] Westwood Global Energy Group, November 2024