Risk policy comparative review of offshore renewables and oil & gas installations
Words: Sasaenia P. Oluwabunmi, Kayode E. Oluwabunmi & Athanasios J. Kolios
Abstract: The development of adequate energy sources to satisfy the ever increasing energy demand in the world has led to the deployment of several offshore energy installations. Offshore Oil & Gas and renewable energy installations have had a lot of growth in recent years; this growth has led to an increase in the accompanying risks and challenges faced by these industries especially regarding policy implementation.
Thus, it is pertinent to assess all the risks in the offshore energy industry, to create a ‘feed-in base’ applicable to both offshore renewables and offshore oil and gas industries. This paper analyses all the risks in the offshore energy industry in relation to policy through Failure Mode and Effects (FMEA) analysis using Risk Prioritisation Numbers (RPNs).
The offshore oil and gas sector generates around £20 billion of revenue per annum and £12.8 billion of Gross Value Added (GVA) whilst supporting induced, indirect and direct employment of more than 190,000 people; thus, making it one of the key sectors of the UK economy . This scenario is true not only for the West but also for major emerging economies; for example, in Nigeria, offshore oil and gas earnings of over £18 billion per annum account for more than 98% of the country’s export earnings, 83% of the federal government revenue, 14% of the country’s Gross Domestic Product (GDP), 95% of foreign exchange earnings and 65% of the government’s budgetary revenues, also making this sector the mainstay of the country’s burgeoning economy .
Offshore oil and gas installations and processes around the world are ‘converging’ and becoming increasingly similar with major international oil companies participating actively in most exploration activities. However, this cannot be said of the offshore renewables industry, which is relatively ‘young’ compared to the offshore oil and gas industry and still has a lot of potential for growth especially in the West.