Assessing and reporting on climate risks for the oil & gas market
How companies can measure and report on their current risk and future targets.Read more
What are the biggest challenges for oil and gas going forward?
The agreements made at COP26 at the end of 2021 will directly affect the climate for generations to come – and the future of oil and gas.Read more
Making emissions management part of operational management
Making emissions management part of operational management for oil and gas companies.Read more
After COP26, what next for the oil and gas industry?
The emissions targets set in Glasgow will define the changes required to the world energy system and have direct consequences to oil and gas companies.Read more
Digital twins - a clear vision for oil and gas transition
We share our thoughts on the value of digital twins to companies in navigating the energy transition and understanding their assets and interdependenciesRead more
In the run up to COP27, what next for the oil and gas industry?
In the previous blog, we talked about how oil and gas companies can lower their emissions. Now we look ahead to new business opportunities in renewable energyRead more
Our deep industry knowledge and expertise helps our clients define their transition strategy and manage their emissions. We help improve asset operational performance, plan capital investment and project deliver and implement digital and technology transformation and trading system capabilities.
Climate, carbon and transition strategy
We support clients to understand their climate risk, develop emissions measurement and reporting methodologies, develop energy transition and emission reduction strategies and build capabilities to execute on their strategies.
Revolutionary emissions measurement and reporting solutions
A credible and successful transition strategy is built on a foundation of timely, accurate, granular and comprehensive emissions data. Yet often our clients are reliant on top-down estimates, rules-of-thumb, incomplete information and unresponsive metrics. This poses a real challenge to their ability to guide their decarbonisation strategy and deliver on their emissions reduction targets.
We take a more rigorous, bottom-up approach, bringing together sector experience, data analytics and carbon accounting expertise to:
- Develop emissions calculation methodologies that are tailored to our clients’ businesses, their specific emissions challenges and reflecting their position and activities in the value chain
- Identify the data inputs and outputs required to provide the insights needed to drive the right behaviours that address the risks, and capture the opportunities, of the energy transition
- Create the data solutions needed to deliver the frequency, accuracy and granularity to proactively manage emissions in day-to-day decision making
- Calculate Product Carbon Footprints as an integral part of emissions reporting
Integrated emissions management
Almost every operational and commercial decision that our clients make has an impact on their carbon footprint. We help them to continuously optimise their scope 1, 2 and 3 emissions as an integral part of running their business. To do that, we:
- Leverage continuously improving emissions data, and implement frameworks to actively manage emissions as part of their day-to-day operational decision making
- Adapt their operating models and digitalise their processes to enable more effective emissions management
- Identify and select emissions measurement and reduction technologies to achieve the greatest impact at the lowest cost
Credible transition planning and net zero strategy
Organisations worldwide are announcing net zero commitments and transition plans. But what does that really mean in practice? Baringa has deep expertise in decarbonising Oil & Gas operations, investing in renewables, and transforming business and operating models. We can help you to translate your net zero commitments into credible abatement and transition plans by:
- Developing as-is emissions forecasting at asset level highlighting hotspots for reduction activities. Plotting meaningful, actionable, and achievable short-term reductions
- Identifying and quantifying strategic step-outs leveraging existing core competencies to abate remaining emissions for long-term decarbonisation
- Creating accurate, transparent and realistic transition plans aligned to both sectoral decarbonisation pathways, business strategy and globally recognised frameworks (e.g. TCFD, SBTI, etc.)
- Communicating proposed transition plans to investors and lenders, ensuring access to affordable capital for current business and future investments
New operating models, processes and technologies
The industry needs to change, and to do so quickly, efficiently and profitably. We support our clients in both decommissioning old operations, and building and operating new assets as they execute their transition strategies:
- Mobilise and optimise around FEED activities; commercial, project structuring, government funding support; JV engagement; concept selection processes; and FID readiness etc.
- Mobilise and optimise the delivery of projects and programmes to deliver the individual assets within the cost, schedule and quality parameters
- Define the capability (people, process, technology/data, governance) required to excel in new operations and achieve maximum commercial returns across their value chains for new operating assets whilst reducing emissions
- Digitalise projects, assets and operations in support of enhanced insight, performance improvement and safety objectives
Capital investment and program delivery governance
We work with clients across all project phases from framing, planning and helping manage performance to execution and readiness for Operational handover. By breaking down silos and facilitating the joined-up thinking needed, we ensure Capital Projects meet the business needs and market conditions to succeed.
Portfolio and risk management
Creating value from Capital Projects comes from the quality of thinking, framing, risk quantification and decision making at the beginning of project definition. We help clients deliver value by:
- Helping select the right projects based on alignment with their business strategy, market conditions and risk to execution
- Ensuring that the selected projects are optimised based on our deep technical knowledge and commercial understanding of the industry and the wider contracting and supplier environment
Delivery model and project optimisation
To successfully manage a capital project, a choice needs to be made on which model to adopt. Adoption depends on the level of control the business believes it has or can have, the risk appetite it wants and the level of oversight and performance management it needs.
We support the business in setting their projects up for success by:
- Designing the optimum model to deliver the strategy by aligning all moving parts to one goal
- Mapping and building the capability and performance management tools needed for each phase of execution
- Understanding their evolving supply chain; the suppliers, mechanisms and management that align to the business strategy and market conditions
- Putting in place the controls, intelligent information management, visualisation and reporting tools, that create confidence, target risks and drive predictability
Sustainability in capital projects
Ensuring that business sustainability needs - environmental, social and economic - are incorporated into the whole life of costs of Capital Projects requires interdisciplinary engagement at the earliest phases of the project strategy development.
For our clients, we do this by:
- Working to ensure an integrated approach, incorporating opportunities for carbon footprint reduction, social and biodiversity requirements as part of the project framing and requirement setting
- Understanding the market and suppliers which allows us to align sustainability strategies across the entire supply chain
- Designing work breakdown structures and contracting models which allow for the introduction of measurement structures and reporting formats which can capture and track sustainability KPIs through the project execution and into operations
We deliver asset strategies that maximise safe and sustainable value by optimising production, emissions and cost. We enable execution through asset operating model design, optimised asset management, effective planning and performance management, supply chain and contract management and deliver sustainable change alongside digital transformation.
Production and emissions management
Understanding the production capacity and efficiency is essential to be able to set targets for daily production and emissions. Once accurate production and emissions targets have been set, our clients can then look to improve asset efficiencies on a daily basis.
We help our clients by:
- Understanding the limits of the production system components, defining their potential and setting maximum production and minimum emissions potential targets
- Developing a process to measure performance daily and designing a production and emissions management framework to review performance and track improvements
- Optimising resource utilisation through the adoption of digital technologies and collaborative environments
- Installing a defect elimination process to quantify and assign production losses and excess emissions and identify the root cause of any events
- Developing processes to identify and build delivery plans to progress opportunities that enhance production and reduce emissions
To maximise the value of an asset, we balance production, emissions, cost and safety whilst delivering the future strategy through opportunity delivery and risk mitigation.
Our industry experts work with client asset teams to achieve the right balance by:
- Ensuring that asset strategies are reflected in the maintenance and integrity approach, as well as individual plant strategies, and the result our clients are trying to achieve is clearly linked to activity
- Verifying the asset priorities are reflected in, and adhered to, the Integrated Activity Planning
- Making sure that the process, and the Operations Management System itself, are well articulated and usable
- Having the right capability in the right place, either inside the organisation or in the suppliers, driving the right behaviours
Asset strategy, operating model design and implementation
Increased industry scrutiny is combining with uncertainty in future market prices, together with the introduction of windfall taxes and increased carbon prices and cost of finance, to threaten the viability and economics of assets. With the prospect of earlier requirement for asset decommissioning, we support our clients in
adapting their business by:
- Assessing their asset portfolios and economics to update asset life plans and decommissioning strategies
- Identifying business capabilities, resources and the critical skills required now and in the future, to deliver on the business and asset strategies
- Developing the business and asset management operating model (production to late life to decommissioning) to ensure long term business resilience and optimise the utilisation of capabilities and resources in the business
- Developing the transition and management of change plans to execute effectively and safely
Planning and performance management
We support our clients in linking strategy to functional targets and objectives, with regular monitoring, measurement and governance to inform decision making and corrective action. We do this by:
- Aligning budget to strategy and articulating a range of outcomes and underlying assumptions
- Linking targets and goals which reflect the asset mix and operating model to the budget, and cascade them throughout the organisation
- Ensuring the underlying data required to measure performance is accurate and available to decision makers
- Actively managing risks and opportunities across multiple time horizons from long-term strategic planning to daily operations
- Embedding ways of working to define targets, manage performance, identify changes and track actions
Digital & technology strategy and transformation
We help our clients shape, plan and deliver digital and technology transformation. Our expert team is grounded in the industry and across the value chain.
We focus on programmes that embed technology foundations, by leveraging data, analytics and automation technologies to drive business value.
Digital and technology strategy
Digital is a significant enabler for value generation for the Oil and Gas sector. Combining practical industry expertise with the latest digital experience, our team help clients develop compelling and value oriented digital transformation strategies and plans by:
- Supporting CDOs and CIOs to rapidly develop their digital, data and technology strategy, understanding internal challenges and complementing with market insight
- Bringing teams with extensive experience of digital through the Energy and Resources industry
We help clients transition from strategy to execution by standing up the enabling infrastructure and, drawing on our digital experience, agile transformation and change management expertise, shaping and implementing digital use cases that deliver measurable business value.
We do that by:
- Rapidly defining and implementing use cases ensuring value delivery is mapped and measured
- Putting in place the digital foundations for your business to enable sustainable transformation
- Creating effective teams and embedding an agile culture to support the rapid delivery of digital products
- Upskilling client teams and resources to establish and successfully embed the digital capabilities and solutions needed
- Assessing and implementing the right technologies to underpin the digital transformation
- Implementing data foundations that liberate data trapped in functional and application siloes
Data and insight factory
Data is at the core of a successful digital transformation. And transforming data to insight is crucial to unlocking value. The Agile Data & Insight Factory construct helps our clients accelerate value from data, iteratively delivering impactful data products to the business.
We do that by:
- Embedding a data product approach and establishing data product definitions, standards, and best practices
- Implementing multidisciplinary data delivery teams to develop and delivery data products
- Embedding a robust data product prioritisation process that ensures that data products deliver business value as efficiently as possible
- Rapidly and iteratively developing multifunctional data products that deliver high-quality, ready-to-use data that is easily accessible for different business use cases
- Embedding effective on-going data management and governance processes and tooling
ERP strategy and transformation
For Energy and Oil and Gas companies, the ERP landscape is often complex, requiring sustained investment and strategic decisions over the next decade. Our industry-centred ERP expert team help clients navigate the strategic options, assess workforce capability and guide the change needed through business transformation.
We do that by:
- Bringing an expert team with extensive experience of ERP transformation through the Eenergy industry
- Analysing strategic solution options and preparing client teams for decision making (including transition to SAP S/4HANA), developing an ERP Strategy and transition roadmap and supporting our clients through the transformation process
- Assessing capability (systems and solutions, processes and workforce) and helping with a forward-looking setup
- Supporting post-transition with the development of ERP roadmaps (post acquisition or divestment)
Digital operations and projects
Digital is a key enabler for optimising performance through the entire asset lifecycle from capital project planning and execution through to operations. We help both operators and service companies to digitise their end-to-end project and operations processes.
We do that by:
- Bringing together a team of experts who have extensive experience of digital through the asset lifecycle
- Keeping a live ‘Digital value library’ capturing the value that clients have realised from implementing digital at the core of their projects and operations processes
Digital emissions measurement and reporting
Effective emissions management is a key part of Energy and Oil and Gas companies’ license to operate and can be challenging due to the complexity of existing data and technology landscapes. We help clients select and implement modern, digitally enabled approaches to measure, monitor and reduce their emissions by:
- Assessing the existing data / technology landscape and developing a solution architecture for emissions measurement and reporting
- Developing a common data model for emissions
- Implementing a robust, efficient and sustainable emissions reporting architecture
- Evaluating and selecting the best emission factors to calculate emissions
- Developing customised visualisations based on specific reporting requirements
Gas and Liquefied Natural Gas (LNG)
Natural gas and LNG remain at the heart of the global energy – both in meeting security of supply and energy transition needs. As a key energy transition fuel, it will have a sustained, albeit changing role across the world.Learn more
Transforming how a global hi-tech manufacturer measures CAPEX project delivery in real time
How does a global manufacturer deliver complex capital projects quicker in a demand-driven market?Read more
Identifying £130 million of improvement opportunities for a North Sea oil producer
How do we improve efficiency across a complex portfolio of oil field assets?Read more