Embracing change in 2020 – Broadies LLP

It's fair to say that 2020 has been a challenging year. However, through adversity there is often opportunity and the chance to find innovative new ways to address challenges. The oil and gas industry is historically known for its ability to find creative solutions to complex problems, and that approach has also been demonstrated in the wider supply chain and support services.

In the same way that the industry has adapted, so too have the legal processes, enabling deals to complete, commercial disputes to be resolved, and employees to continue working – all in the midst of a pandemic. Let's take a look at some of the changes that have come into force this year.

Employment

Employers have developed new ways of working, including managing staff remotely almost overnight.  New models of flexible working have been implemented that might otherwise have taken years to develop, and new technologies have been embraced . All these steps have to comply with employment law and require new policies and procedures to be put in place at short notice.  It is inevitable that some of these working practice innovations will remain long after the pandemic is over and the evolution of policies and procedures over time will need to remain in sharp focus.

Litigation

Innovation and the use of technology has been key for many sectors seeking to maintain continuity notwithstanding a global pandemic. The justice system has been no different. While video was already used in the court proceedings and arbitration, this year saw a sharp increase in virtual hearings, conducted remotely and relying on technology. That has presented challenges for the courts, legal teams and clients, but has also enabled businesses to resolve commercial disputes and created greater efficiency in terms of reducing lawyers' in-court 'waiting time' and consequently, client costs. These positive changes are likely to continue long after the pandemic has abated.

Environmentalism

The biggest impact on environmentalism in 2020 is…the pandemic. Not only it did it allow us to see what it would be like to live in a world with clean air, and enable the UK to power itself without coal for a new record period of more than two months, but it also triggered a reduction in the UK's carbon emissions by a third during the first wave and a global reduction of 8.8% of emissions in the first eight months of 2020 compared to the same period in 2019. This reduction has bought vital time in the battle against global heating, both with the reduction (albeit temporary) in emissions and the fact that global GDP in 2050 is forecast to be lower than it would have been. This combination of time and vision gives renewed impetus to drive forward the energy transition and find further opportunity to reduce emissions post-pandemic.

Technology

Throughout all these changes, business has to carry on. Signing electronically can eliminate many of the issues presented by completing a deal in a pandemic, as it allows for all parties (wherever they may be) to securely sign a document within seconds of being invited to do so.

Although the technology to allow electronic signing has been around for some time, the pandemic has accelerated its adoption across many industries, including energy. We're seeing businesses across the industry experience the benefits of being able to progress their plans, including fundraising and restructuring, managing tenders and project development, and ensuring operations continue to run smoothly.

Embracing the change

The significant theme across these examples of innovation and development is the increase in both collaboration and digitalisation. Both these elements have long been indicated as key to the next phase of development and progression of the oil and gas industry.

While 2020 has been a challenging year, it has also been the year that the industry has risen to the challenge. In embracing change, we're well placed to face what 2021 brings.

Read the latest issue of the OGV Energy magazine HERE.