IMaGeS Energy Research

IMaGeS

EN ER GY S OCI ET Y R ES EA R C H I N STI TU TE FO R M A N AG EM E N T, GOVERN AN CE A N D SO CI ETY ( I M aGe S )

information management

information literacy

public law, human rights & discrimination

librarianship

graduate school communication

knowledge management

IMaGeS

energy

cultural identity transport policy

research new media

small firms

skills & labour market studies

marketing

teaching

environment

publishing

knowledge transfer funded projects entrepreneurship

innovation

conferences

organisation

consumer choice

accountancy economics & finance

public policy

I MaGeS I NFO GR A M B U S I N E S S & E N TERPRISE G OVE RN AN C E & SOCIET Y I N FO RM ATI O N & COMMUNICAT ION

Follow ou r t heme p at hs t o di s co v er IM aGe S ar e as of ex p ertis e an d r es ear ch.

legal evidence & procedure

INTRO DUC ING E N E RG Y RE SEA R CH AT I MaGeS IMaGeS is dedicated to enabling excellence in multidisciplinary research and knowledge exchange addressing the challenges facing enterprise, business development, management and governance within society.

IMaGeS draws on RAE (Research Assessment Exercise) strengths in: Business and Management Studies; Library and Information Management; Accounting and Finance; Politics and International Studies; and Law. A significant proportion of this research has been recognised as internationally excellent or world leading. Our research is focused around three key themes all of which are actively involved in the examples of energy research presented here:

GOVERNANCE & SOCIETY INFORMATION & COMMUNICATION BUSINESS & ENTERPRISE Our members publish in scholarly and professional journals, present at conferences and engage in knowledge exchange with industry. At the heart of our mission is the drive to develop knowledge and share this with our students, academic colleagues, industries and professions.

IMaGeS’ activities are underpinned by the core values of scientific integrity, transparency, fairness, collaboration, openness to ideas, and real social and economic impact. Our focus is on high quality, innovative and sustainable research.

Professor Dorothy Williams Director, IMaGeS d.williams@rgu.ac.uk

CONT ENTS Energy Poli cy

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Transp ort Poli cy an d En er g y

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H e alth a n d safet y i n t he e ne r g y ind u s tr y

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Inf ormat i on a n d k n ow ledg e ma na g e me nt i n th e e ne r g y s e c to r

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Energy sect or sk i lls a n d l a b o u r ma r k e t a na l y s is

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Deve lop m en t of t he en er g y i nd u s tr y

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C onsum ers a n d com m u n i ty r e s p o ns e s

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S us ta i n ab le en ergy m an ag e me nt

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Doc toral st u di es i n en erg y

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ENERGY P OLI CY

DELIV E RI NG RE N E WA B LE E NE R G Y U N D E R D E VO L U T I O N Prof Peter Strachan • p.a.strachan@rgu.ac.uk Funded by the ESRC This study aims to assess the impacts of devolution in the UK on the provision of renewable energy. The following questions will be addressed: •

To what extent has devolution affected the provision of renewable energy?

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To what extent have the devolved institutions made different use of the powers and capacities for promoting renewable energy?

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What lessons can be drawn from the experiences of governments across the UK to date?

The project charts the effects of devolved institutions on policy and delivery of renewable energy from 1990 to 2012. It gives particular attention to how the devolved administrations set targets for renewable energy and justify expansion. Careful attention is given to financial support mechanisms and planning.

The research is conducted as a four-way partnership, involving the School of City and Regional Planning, Cardiff University (Dr Richard Cowell), Queens University Belfast (Dr Geraint Ellis), Robert Gordon University (Professor Peter A Strachan), and the University of Birmingham (Dr David Toke).

W HE RE NEXT FOR WIND ? E XPL A I N I N G N AT I O N A L VA RIATI O NS IN WIND POWE R D E P LOYM E N T Prof Peter Strachan • p.a.strachan@rgu.ac.uk ESRC seminar series supported by Scottish and Southern Energy The overarching aim of this seminar is to drive critical, cross-national investigation of the factors affecting the deployment of wind power, improve the evidence base, and deepen the pool of possible lessons for policy-oriented research.

The objectives are as follows:

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To apply social science analysis to explain national and regional variations in wind power deployment

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To link analysis to policy debates and business strategies for the renewable energy sector, through constructive engagement between academic, policy and practitioner stakeholders

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To enable wider debate about instrument choice, Europeanisation and society-

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technology relations and to use analysis of this sector to inform wider academic and policy debate

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To provide a forum for connecting social science researchers working on wind energy and other renewable sectors, in a range of different disciplines, and around key analytical questions.

This seminar series brings together leading figures in wind and renewable energy debates from across academia, policy and business, and from both the UK and overseas. This collaborative intent was reflected in the funding: the Seminar Series was supported by the Economic and Social Research Council (ESRC) and Scottish and Southern Energy and forms the basis of a book.

TRANS P O RT P O L IC Y AN D EN ERGY

E H ARBO U RS Prof David Gray • david.gray@rgu.ac.uk Funded by the EU This Interreg IVB project consists of a pilot of energy management strategies in harbour operations and harbour cities. The University is working with energy partners from Holland, Sweden, Belgium, Germany and the Shetland Islands. This research consists of three strands: monitoring developments in electric vehicle technology and making recommendations on the potential role of electric vehicles to

reduce energy use in harbour operations and harbour cities; developing and benchmarking an evaluation methodology to compare all e-harbours showcases against common criteria; and is leading the development of an analytical model to predict the contribution of renewables, smart grids and electric mobility in managing energy use in small and medium sized harbours.

CARE NO RT H Prof David Gray . david.gray@rgu.ac.uk Prof Richard Laing . r.laing@rgu.ac.uk (IDEAS research institute) Funded by the EU This IVB project looks at strategies for reducing energy use and CO2 emissions from local transport alongside partners from Germany, Sweden, Holland, Sweden and England.

RGU is working closely with Aberdeen City Council and is active in a number of work strands including: • Modelling traffic, fuel consumption and CO2 emission in central Aberdeen to a strategy for reducing energy use and emissions from transport in the city centre • A public and stakeholder engagement exercise to promote low carbon transport • The identification of best practice in low energy transport from Europe • A review of governance, the capacity and readiness of the Scottish Government to deliver on the low carbon agenda • Resarch into the potential of videoconfercing to reduce energy use and carbon emissions from staff travel.

Other transport, energy and climate change activities include: • Hosting the transport, energy and climate change arm of the UK Energy Research Centre (UKERC) • Decoupling the link between economic growth, transport growth and carbon emissions in Scotland Professor David Gray • Transport and climate change Professor David Gray

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HEALTH AND SAFE T Y IN T H E E N E RG Y IN D U S T RY

T H E RO LE O F INFORMAT ION M A N AG E M E N T I N E N H A N C I N G H EALTH, S A FE T Y A ND E ME RG EN CY R E S P O N S E I N T H E O I L A N D GAS I NDUS T RY Prof Rita Marcella • r.c.marcella@rgu.ac.uk Funded by AVEVA This research throws light on the information management practices in the industry sector as they relate specifically to health and safety management and illustrates the extent to which effective access to reliable and timely information is vital in dealing with critical incidents. Analysis of the survey findings show that 35% of respondents were aware of

instances where either they or their colleagues had failed to report information on incidents which had occurred. There was widespread agreement that there was both too much data and too little real information on the extent to which safety performance was improving and in sharing information across the industry.

T H E QUEST FOR G LOB A L HE A LT H , S A F E T Y A N D E M E R G E N C Y R ESPO NS E TRA ININ G STA NDA R D S I N T H E O I L A N D G A S I N D U S T RY Prof Rita Marcella • r.c.marcella@rgu.ac.uk Funded by OPITO Research findings demonstrate a consensus that a demonstrably international common global standard is desirable, but within a framework that would allow local tailoring and in wide consultation with industry. The majority

of industry leaders also thought that there was a need to enhance industry leadership but also for operation staff to take ownership of safety issues.

CO MPE TE NC Y A ND COMPLIA N CE I N T H E O I L A N D G A S I N D U S T RY Prof Rita Marcella • r.c.marcella@rgu.ac.uk Funded by OPITO The research findings indicate that there is wide realisation that merely being compliant is not appropriate if a company’s goal is to continually improve workforce safety and skills. There is a lack of common understanding of competence yet an appetite for greater consistency and global standards in competence management to be established. Many managers felt that the internal systems

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in place to manage competence were not sufficiently robust and they demonstrated a real lack of confidence in their contractors’ competence management systems.

There was a recognised need for further debate both around the nature of competence and the best ways to develop and test its achievement.

IN FO RMATIO N & KNO W LEDG E MANAG EMENT IN THE ENERGY SECTOR

KNO WLEDG E SHA RIN G C ULTU R E Dr Simon Burnett • s.burnett@rgu.ac.uk Funded by Shell This was a Centre for Knowledge Management (CKM) project which aimed to develop a knowledge sharing culture in one of Shell’s Aberdeen offices. Outputs for this project included personal and departmental knowledge maps and a

knowledge auditing methodology. The results of the project were presented in a report to the organisation, a peerreviewed journal article and a conference paper.

KNO WLEDG E MA N AG E ME N T A U D I T A N D S T R AT E G Y D E V E LO P M E N T Dr Simon Burnett • s.burnett@rgu.ac.uk Funded by Senergy A project conducted on behalf of Senergy comprising the first two stages of an integrated knowledge management (KM) programme consisting of five stages in total. The first stage of the programme identified and evaluated the current knowledge management position of the organisation by producing: a Knowledge Process Audit (KPA); a

Knowledge Inventory and Map (KI&M); and a Knowledge Needs Analysis (KNA). The strategic design stage of the programme identified the future position of the organisation in relation to knowledge management (i.e. where Senergy wants to be) by producing: a Business Case for KM; and a Knowledge Management Strategy.

LEARNING NA RRAT IVE P ROJ E CT Dr Simon Burnett • s.burnett@rgu.ac.uk Funded by BP Narratives are increasingly being seen by both academics and practitioners as valuable tools for storing and sharing knowledge. Personal learning narratives may be used to describe the process (or processes) undertaken by an individual in the course of acquiring new knowledge.

Similarly, organisational learning narratives describe, in

narrative form the evolution of a company as it develops in one or more ways. Commissioned by BP, this project aims to: produce a ‘learning narrative’ based on the development of part of the company as a learning organisation; and to develop a set of guidelines for the production of future learning narratives within the organisation.

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IN FO RM AT I ON & KNOW LE D G E M A N AG E M E N T IN THE ENERG Y S ECTO R

IN FO RM ATIO N MA NAG E ME NT E N E R G Y FO R U M : A KNO WLEDG E T RA N SFE R PA RT N E R S H I P ( K T P ) B E T W E E N A MO R PRAGMA A N D ROB E RT G O R D O N U N I V E R S I T Y Dr Laura Muir • l.muir@rgu.ac.uk Funded by KTP sponsors Scottish Funding Council and Technology Strategy Board and by Amor Pragma The aim of the project was to establish an Information Management Energy Forum for Amor Pragma to enable specialists to shape information management strategy and transform current operations. It brought together industry analysts, academics and technology providers to provide access to thought leaders, information resources, industry best practice and networking events. Forum activities included meetings, master classes, site visits, analyst support, research projects, and a web portal for members. The existing core membership included seven Oil and Gas Companies based in Aberdeen with others (including a super-major) participating in Master Classes and Research projects.

W O RKFO RCE PLA N N ING DE C IS I O N S U P P O RT S YS T E M : A KNO WLED G E T RA N SFE R PA RT N E R S H I P ( K T P ) B E T W E E N OP ITO LTD AN D ROB E RT G ORD O N U N I V E R S I T Y Dr Laura Muir • l.muir@rgu.ac.uk Funded by KTP sponsor Technology Strategy Board and by OPITO Ltd The project aims to analyse skills requirements in the Oil and Gas Sector and to develop a strategic workforce planning tool. This will enable proactive action to be taken to minimise potential project abandonment/deferment due to skills shortages and competitive labour cost spirals in the future.

The challenge that the partnership addresses is achieving effective long-term planning and skills production against shortterm reactive cost driven solutions stimulated by competition for labour and so industry buy-in is essential.

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It is anticipated that the impact of this project will be: •

The opportunity to create new transformation programmes and/or develop the existing workforce with appropriate and timely interventions

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Oil and Gas industry companies will be able to develop proactive long-term collective or individual interventions instead of the current short-term reactive approaches they currently adopt

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Most importantly, this project will prevent major Oil and Gas projects going ‘on hold’ in the future by being able to much more accurately predict what skills will be required by the industry.

ENERG Y S ECTO R S KIL L S AND L AB O UR MARKE T AN ALYSIS

CE NTRE FO R INT E RN AT IONAL L A BO U R M A R K E T S T U D I E S O I L AND G A S FORE SIG HT REP O RTS David Gibbons-Wood d.gibbons-wood@rgu.ac.uk Dr Iain MacLeod • i.macleod1@rgu.ac.uk Funded by Skills Development Scotland The Centre for International Labour Market Studies (CILMS) was commissioned by OPITO to undertake a quantitative employment and skills foresight analysis for the oil and gas industry. This was prompted by a need to triangulate widespread anecdotal evidence within the industry that skills shortages and labour market challenges are emerging, and that significant opportunities exist as the demand for renewable energy grows and new technologies emerge to support the low-carbon economy.

Approximately 140 companies participated in the study, and the companies who responded are responsible for employing over 67,000 salaried staff and contractors. The findings were clear and consistent across much of the industry. The work carried out by CILMS will inform and guide strategy development of the Scottish Government’s Industry Advisory Board. The report itself was presented to the industry by David Binnie (Managing Director of OPITO) and Angela Constance MSP (Minister for Skills and Lifelong Learning) at an OPITO business breakfast in March 2011.

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DEV ELOP M E NT OF T HE E N E RG Y IN D U S T RY

M AXIM IS ING T HE IMPA CT OF S K I L L S David Gibbons-Wood • d.gibbons-wood@rgu.ac.uk Dr Iain MacLeod • i.macleod1@rgu.ac.uk Funded by the Scottish Funding Council (SFC) The research was based upon a wide-ranging literature review and a series of 25 interviews with representatives of a number of different sectors within the oil and gas industry.

The results showed that the concept of skills utilisation was seen as less of a priority for the industry than had been expected. The companies interviewed identified the following key issues: • •

Lack of employee motivation Deficiencies in leadership and management

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Gaps in the skills base Shortage of core aptitudes (e.g. literacy and numeracy, decision-making, communication) Poor inter-generational skills transfer

On this basis, the Scottish Funding Council has agreed to fund two pilot schemes and a further programme of research in relation to the issue of autonomy.

T H E CH ALLE N G E S OF A UTONO M O U S W O R K I N G : R EFLE CTI O N S ON B A RRIE RS TO I M P LE M E N T I N G A U TO N O MY David Gibbons-Wood • d.gibbons-wood@rgu.ac.uk Dr Iain MacLeod • i.macleod1@rgu.ac.uk Funded by the Scottish Funding Council (SFC) The research phase of this project revealed that although few companies have direct experience of autonomous working, there was an interest in the way that employee autonomy works in practice, and whether it could be transposed to other companies’ organisational practices.

This research will seek to identify barriers in autonomy through a focus on the obstacles which ‘sceptic’ companies perceive to exist in relation to implementing greater employee autonomy, and upon the way in which

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‘advocate’ companies have addressed these obstacles.

An important aspect of this research is a more detailed exploration of differential levels of autonomy in practice in these companies, and the limitations through in-depth case studies of companies which have tried to implement autonomy.

The aim of this research is to stimulate greater debate and sharing of best practice within the industry in relation to greater employee autonomy.

DE V E LO PM E N T O F T H E E N E R GY I NDUSTRY

WO RKFO RC E SKILLS FOR B U S I N E S S G R O W T H David Gibbons-Wood • d.gibbons-wood@rgu.ac.uk Dr Iain MacLeod • i.macleod1@rgu.ac.uk Funded by European Social Fund (ESF) This project aims to develop a toolkit for Northeast Businesses to better understand the workforce development environment in which they operate. This project has successfully produced a series of business health check questionnaires, cd-rom and system of facilitation.

The project developed an appreciation of the region’s unique economic and labour market situation which

assisted businesses and employees in accessing skills and learning opportunities. The project was piloted amongst 10 SMEs in the oil and gas industry, operating in Aberdeen or Aberdeenshire. The project has been endorsed by Nicol Stephen MSP, Deputy First Minister, Minister for Enterprise & Lifelong Learning.

RI DI NG TH E RA PID S: LE A DIN G T H E O I L AND GAS I ND UST RY T HROUG H R E CE S S I O N Prof Rita Marcella • r.c.marcella@rgu.ac.uk Funded by PSN Qualitative research with leaders in the industry showed that the oil and gas industry tended to be ahead of others in feeling the impact of economic trends and usually came through the lows more quickly than other sectors. It also demonstrated the extent to which leaders had learned

lessons from their previous experience of recession. There was general recognition that it was important to take decisions quickly, to communicate openly with stakeholders and to continue to invest in expertise through the lows.

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CONS UME R S AND COMM U N IT Y RE S P O N S E S

CO RPO RATE SOC IA L RE SP ONS I B I L I T Y ( CS R ) S T R AT E G Y Izzy Crawford • i.c.crawford@rgu.ac.uk Funded by Total This research took the form of a comprehensive review of Total E&P’s Corporate Social Responsibility (CSR) Strategy over nine months. The project aimed to critically evaluate best practice across a number of industries. After the initial literature-based phase, the research team conducted a number of focus groups with a wide variety of the company's external constituents and

stakeholders, simultaneously launching a survey distributed to the company's employees. The results of the research enabled Total E&P to re-evaluate their chosen CSR strategy, ensuring future initiatives were in line with perceived best practice and their stakeholders’ views.

A MULTIDIM E NSION A L FRA MEW O R K FO R T H E P E R FO R M A N C E EVALUATIO N OF COMP E T ING FO R E CA S T I N G M O D E L S O F CR UDE O IL P RIC E S VOLAT ILITY Dr Bing Xu • b.xu@rgu.ac.uk Funded by Carnegie Forecasting the volatility of crude oil prices is an important aspect of diverse areas such as macroeconomic policy making, risk management, options pricing, and portfolio management. Despite a large number of forecasting models having been designed to forecast the oil prices volatility, the

relative performance evaluation remains an exercise that is unidimensional in nature. We propose a multidimensional performance evaluation framework that takes account of several criteria.

CO NSUMER D E C ISION- MA KING FO R G R E E N E N E R G Y TA R I F F S Dr Seonaidh McDonald • s.mcdonald@rgu.ac.uk Funded by ESRC As part of a wider investigation into how and why consumers select technology-based products, funded by the ESRC’s Sustainable Technologies Programme, this study gathered detailed data on consumer decision making for green

energy tariffs. This work has been included in a paper which compares green consumer behaviour across product sectors and is currently being written up as a contribution to the energy literature.

CO MM UNITY RE SPONSE S TO W I N D FA R M P L A N N I N G A P P L I CAT I O N S Dr Seonaidh McDonald • s.mcdonald@rgu.ac.uk Working with SSE through an ESRC CASE studentship this work examined the community response to a proposed SSE wind farm development in Scotland. The work included an examination 10

of objection letters, a series of interviews with a wide range of stakeholders and participant observation of the public inquiry.

This work has been published in the planning literature.

S U S TA I N A B LE E N E R GY M AN AGEM EN T

K N O WLEDG E E XC HA N G E FOR E F F I CI E N T S U S TA I N A BLE ENERGY M A N AG E ME N T WIT H T H E M E AT A N D DA I RY IN DUS TRI E S IN SCOT LA ND (E N E R M A N ) Prof Dorothy Williams • d.williams@rgu.ac.uk Funded by Scottish Funding Council (Horizon) This Horizon funded knowledge exchange project, led by Edinburgh Napier University, aims to develop effective approaches to managing energy innovations in the meat and dairy industries.

ENERMAN aims to deliver energy savings in excess of 30% of current usage through the exploitation of process developments and enabling technologies. ENERMAN will achieve this aim through exchanging energy management knowledge with the meat and milk processing industries and identifying energy efficiencies and savings. Through the development, monitoring and evaluation of case study businesses, ENERMAN will develop accessible information on cost effective, best practice energy saving solutions for efficient energy management in the meat and milk processing sectors. Outcomes will include exemplars, guidelines and tools to enable businesses to develop their own effective and efficient energy strategies.

The consortium comprises representation from the dairy and meat processing sectors together with expertise from the energy sector, carbon management organizations, small companies, government agencies as well as a strong academic partnership involving Edinburgh Napier University, Strathclyde University, Robert Gordon University, the University of the Highlands and Islands, the Scottish Agricultural College and the Energy Technology Partnership. The multidisciplinary IMaGeS team at RGU is providing expertise in business and innovation management, knowledge management, financial modelling and marketing.

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G RAD UAT E SCHOOL

D OCTO RAL ST UD IE S IN E NE RG Y More than 25 current IMaGeS doctoral students (approx. a quarter of our total doctoral community) and at least 13 previous successful doctorates at ABS have been energy related, with the majority looking at the oil and gas sector in UK or international contexts. Current students include a number funded by PTDF in Nigeria.

Doctoral research covers a wide range of subjects including issues in accounting and finance, decommissioning, entrepreneurship, human resource management issues, information management, knowledge management, policy and project management in the energy sector.

Contact Dr Seonaidh McDonald Graduate School Leader s.mcdonald@rgu.ac.uk

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O UR RE SE A RC H UN DE R P I N S T H E P O RT FO L I O O F ENE RG Y FOC USE D MA S T E R S P R O G R A M M E S D E L I V E R E D AT A B E RD E E N B USIN E S S S C H O O L . T H E S E I N CL U D E : MBA O I L A ND G A S M A N AGE ME N T MS C ENER G Y M A NAG EM E N T MS C O I L A ND G A S A CCOU N T I N G LLM/ M S C O I L A ND G A S L AW MS C HEA LTH, S A FETY A N D R I S K MA N AGE ME N T MS C HU M A N R ES O U R CE MA N AGE ME N T MS C / M B A I NFO R M ATI O N MAN AGE ME N T MS C PR O J ECT M A NAG EM E N T MS C PU R CHA S I NG A ND S U P P LY C H AI N MAN AGE ME N T MS C Q U A LI TY M A NAG EME N T w w w. rgu. a c. uk / e ne rgy mast e r s

GeS I N S T I T U T E FO R M A N AG E M E N T, G OV E R NA N CE A N D S OCI E T Y www.rgu.ac.uk/research/images

Robert Gordon University, Garthdee Campus, Garthdee Road, Aberdeen, AB10 7QE, United Kingdom