Are you using energy industry networks to your best advantage?
With the energy sector experiencing rapid disruption, companies can sometimes be wary of working too closely with others in the same market. However, collaboration in Australia’s energy sector is key to fostering technological innovation, increasing efficiencies and helping companies secure more contracts.
A recent Queensland GasFields Commission report, On New Ground, emphasised how critical it is for gas companies to work together with government, landowners and local communities in order for the state’s coal seam gas industry to increase its development opportunities.
But what about companies working together for the benefit of each other and the industry?
A 2013 global PwC report titled Gateway to growth: innovation in the oil and gas industry found that across all sectors, “the most innovative companies collaborate far more often than the least innovative.”
It states that in the oil and gas sector in particular, collaboration is vital because of “high cost and long lead times associated with oil and gas advancements”.
Michael Maroti, General Manager Compression at Wasco, said this is why partnerships are crucial for successful project execution.
“Collaborating and working seamlessly with your partner ensures continued focus in each partner’s respective and complementary core businesses,” Mr Maroti said.
“At Wasco we are always driving to bring down costs for our customers. Naturally we are always on the lookout for partners who can bring cost savings to a project. One such example is utilising steel driven piles in place of concrete under screw and reciprocating compressors. DFI is the best in the business at this construction method so we are happy to bring them into the project.”
Fostering innovation
The energy industry is reliant on innovation and new technologies – it’s what has driven the major changes of the past few years. This is especially noticeable in the upstream oil and gas sector as investments are long term and innovations have long lead times involving research and testing before something is implemented.
The PwC report states that this is the reason why “partnering is an essential part of the process”.
Collaboration provides a bigger network that can help companies share technologies and new processes which in turn can streamline projects and reduce costs.
Matt Meyer, Managing Director at DFI Energy Services, said relationships and partnerships are key to success in the industry.
“Contractors, subcontractors, engineering houses, agents – everybody works together on projects to get things done. It’s never a stand-alone effort,” Mr Meyer said.
“Not one person or organisation knows absolutely everything, it’s through collaborative partnerships that we share our brain trust and our skills to gain the best result for everyone involved.
“It comes down to driving innovation as innovation is what makes everything more economically safer and it’s the reason all of us do this, to be on the cutting edge. If you’re standing still you’re getting left behind.”
Securing the right partnerships
The PwC report states that, “Finding the right external partners is a challenge for many of the executives we surveyed. But it’s vital — particularly given the oil and gas industry’s strong history as a “technology integrator”.
This is one of the core motivations behind Powered, an Australian energy and resource focused business development company. Powered helps Australian and international companies in the energy, and upstream oil and gas sectors grow in the Australian market by leveraging its strong relationships with a network of industry professionals.
Wade Elofson, founder of Powered, said the best experiences for Australian companies are the result of great partnerships.
“We look for companies who have innovative or disruptive technologies or process which can help drive down the cost of energy production in Australia,” Mr Elofson said.
“Our service involves growing the company in the Australian market. To do this we really take the time to understand their services and needs, and partner them with others that could benefit from their products, and vice versa.
“We work with so many different clients which not only gives us on-the-ground knowledge but helps us build a community network in which our clients can use to grow their business, gain more projects and find opportunities they wouldn’t see otherwise.”
Wasco and DFI Energy Services are two of Powered’s clients that have benefitted from this approach. Mr Meyer said Powered has been fantastic in getting his company in front of the right audience.
“It’s been the key to our success in breaking into this industry, especially because we were offering something different and unconventional. I can verify that almost every single relationship I have created in Australia comes back to Powered.”
