Survey: Inspection, maintenance spending insufficient for oil, gas equipment

Nearly half, about 46%, of the 813 senior oil and gas professionals who participated in a recent survey said they believe there has not been enough investment in inspection and maintenance of infrastructure and equipment in recent years, Oslo-based DNV GL reported on May 1.

Slightly more than a quarter, 28%, said they expect to increase safety expenditures in 2018, while 61% said they would maintain current budgets, and 5% said they planned to cut investments, DNV GL said.

It said the report also affirmed expectations for digital technologies to bridge the gap between long-term cost efficiency and enhanced safety in projects and operations.

While cost efficiency has been the top, or a high priority, for more than 82% of senior industry professionals since 2015, 40% of the survey’s respondents believe digital tools and technologies have already improved safety over the past three years, DNV GL said.

“The industry’s strong focus on cost control must continue in the long term for oil and gas to remain competitive and play an increasingly important role in the energy transition,” said Liv Hovem, chief executive of DNV GL’s oil and gas division. “However, our research confirms the sector’s clear belief that cost control must never come at the expense of safety.”

The report said many new safety investments will be aimed at digitalizing monitoring, processes, and responses this year. It also highlights the risks that implementing digital technologies can have on operations, particularly around cyber security, and warns that existing guidelines and standards may not be sufficient to demonstrate the safety of new concepts.

Contact Nick Snow at [email protected].