Changing Market Requires Personalized SolutionsTue, 01/21/2020 - 12:37
Q: What were the main challenges Fugro encountered as the Energy Reform began to take shape in Mexico?
A: One of the biggest challenges we have encountered is retaining our talent. We have been working arduously to retain our human capital as we depend heavily on their knowledge to carry out day-to-day activities in the company. Fugro’s most important asset is the knowledge of our people. It is important for us to retain our talent as the industry continues to change, especially as the market will only grow more competitive. If attracting and retaining talent in oil and gas companies is already difficult, it will only get harder. Finding specialized engineers in Mexico is onerous and on top of that, they have to be bilingual. Another challenge we have encountered is adapting our products and solutions to the changing market. We are creating more personalized solutions to attend the unique needs of each client and operation. The Mexican market has a promising outlook, especially because there are many new clients that entered with the Energy Reform and they are far more demanding in terms of technology. International companies have much higher standards than our traditional clients. It is a good challenge and it will boost the industry. We have already spotted many incredible opportunities to expand our business and take advantage.
Q: What is Fugro’s outlook on Mexico’s oil and gas industry?
A: The US has evolved from a country with low production to a self-sufficient market. Brazil is another growing market but it is difficult to navigate. It is still led by Petrobras, which only allows marginal growth. The Mexican energy market is continuing to diversify and we can see potential in alternative energy, such as wind farms. Mexico has become a major pole of investment for Fugro and so far, it is the location where we have the strongest medium-term expansion plans. In terms of importance, the Mexican market is the most critical for Fugro.
Q: What sectors are the most active in terms of geoconsulting services?
A: Most operations in Mexico are in the exploration stage, which requires advisory services related to the sites that are being explored. Fugro has great capabilities when it comes to analyzing and providing consulting on the geological aspects of the sites to generate the best risk analysis and produce a more efficient development plan for operators. We are working closely with our clients in this phase but it is changing rapidly now that PEMEX has awarded large projects to consortiums with the ambitious target of developing infrastructure in shallow waters to ramp up production. In response, we are integrating infrastructure-related services into our exploration solutions. We expect these companies will require services related to the integrity of their assets, meaning they will need advice on planning maintenance.
Q: How receptive has the Mexican market been to the introduction of new technologies related to geological studies?
A: The mentality surrounding technology in Mexico is changing and companies are starting to understand the value of investing in it. The Energy Reform has taken off and we have seen clients become more open to using new technologies. But we have also seen clients that are not so aware of the possibilities. The technology available today can contribute a great deal to safety, sustainability and many other aspects of the oil and gas industry. Government entities are still in a learning curve and we have identified some standards that could be upgraded to better serve the industry. We are approaching ASEA and CNH to collaborate on these standards and provide feedback on how the bar could be raised. In the next 50 years, the global population is expected to grow by 2.5 billion people and most will live in cities. This will considerably increase the demand for energy. We seek to provide integrated solutions based on digitalization, providing clients with the best data to make their decisions and contribute to have a safe and livable world. Our technology provides clients with a comprehensive approach to data. We have 15 R&D centers globally with 400 professionals involved and invest a great amount of time and resources in new technology and innovative solutions.
Fugro is a world-leading service provider for the collection and interpretation of surface and sub-surface data. It offers marine asset integrity, marine and land site characterization, as well as geoconsulting services.