Adipec 2016: Oil industry must shift approach to security

abu dhabi - The current economic climate and digital attacks are two of the biggest threats facing the sector

The oil industry faces a complex and increasingly interconnected range of threats from technology and geopolitics, British army officer and former Nato Deputy Supreme Allied Commander for Europe, General Sir Richard Shirreff, said on the sidelines of the 'Security in Energy' session at the Abu Dhabi International Petroleum Exhibition and Conference.

To counter this, he said, industry players need to shift their approach to security - from reacting to threats to preventing them. Oil and gas companies must be proactive in adapting to the industry's changing security landscape, Shirreff said.

"Those operating in complex environments need to think of risk strategically," he said. "Security is more than having weapons and guards at your door - it is a state of mind and stems from within the society in which it operates. Unfortunately, it is too often the case that the industry has a binary sense of security. Companies must understand that these risks are interrelated; what you do on the tech side, for example, could have an impact environmentally, socially and on security."

Shirreff said the oil and gas industries had a better understanding than many of how to effectively deal with security issues due to their experience of managing critical infrastructure, often in sensitive environments.

Companies need to think "comprehensively and cohesively about risk management", build bridges with multiple stakeholders, understand the environments they operate in and be aware of geopolitical, transnational and local risks. This includes working to build stability in fragile communities, recognising that good governance, healthcare, education and employment opportunities all contribute towards their operational security.

Two challenges Shirreff identified as particularly relevant today were the current economic climate, which could lead companies to operate closer to their financial margins and take more risks, and the threat of digital attacks.

He said it was impossible to overstate the importance of cybersecurity, citing the release of the Panama Papers as an example of how easily a secure network could be breached.

- ashwani@khaleejtimes.com