The oil and gas industry has been inefficient in delivering projects because many companies customise their requirements, down to the simplest valve, according to a new report from classification organisation DNV.
Graham Henley, CEO of the International Association of Oil & Gas Producers (IOGP), quoted in DNV’s Energy Industry Insights 2025 report, said, “Everyone buys a tailored suit instead of one off the rack. Standardisation, for example using IOGP’s JIP33 procurement specifications, can significantly reduce costs and delivery times, not just in oil and gas projects, but also in renewable electricity and biofuels.”
Elsewhere the report, drawing on responses from 1,160 senior professionals, calls for greater policy support and more investment to scale new technologies.
Source: DNV
It found that while uncertainty is shaking confidence, megatrends ‘support optimism’, with growing energy demand, electrification and decarbonisation. Overall the majority of the industry remains positive.
There was a sharp surge in optimism from respondents in the Middle East and Africa, rising from 69% to 84%, reflecting industry growth in both regions.
Yet compared with last year’s survey, fewer respondents believed their organisation will reach revenue targets (down from 63% to 58%) or profit targets (down from 57% to 51%) in the year ahead – and the uncertainty is delaying transition investments.
Source: DNV
The number of companies investing in green hydrogen/ammonia dropped from 53% in 2024 to 37% last year, and blue hydrogen/ammonia fell from 36% to 25%. Interestingly LNG investment, widely touted to fuel the transition in the short term, also dropped slightly from 24% to 22%.
Every part of the energy industry is concerned about current geopolitical risks, which have an impact on policy and the economic environment.
Expanding energy storage technologies, including hydrogen, and raising investment in renewable energy headed the list of measures that respondents said would most quickly accelerate the energy transition.
