From a historical perspective, it’s fair to say that OSV owners were considered the taxis of the offshore industry. The energy companies simply chartered the vessels they needed from operators and paid for the fuel to complete each voyage.
This business model left energy companies with a problem.
With no visibility, situational awareness, or insights, they wondered if the fuel they paid for was the fuel used for the voyage. The situation was ripe for fuel fraud to take place.
The model was also challenging for vessel owners and the wider OSV sector, with contracts continuously driven down on price and little opportunity for differentiation.
In short, it was an unsustainable race to the bottom.
Climate change and the signing of the Paris Agreement in 2015 forced each side to monitor and report their emissions. Whether Scope 1 or Scope 3, both parties were now in the same boat of having to do better for their stakeholders, meaning that they could not afford to waste a drop of fuel or continue to create an environment that made fuel theft a tempting option.
This is where Fueltrax comes into the story.
By installing our humble metering tool into OSVs, we are getting feedback that it is helping billion-dollar energy companies create a synergistic ecosystem where the energy company, the vessel owners, and the crew members work together with clear communication throughout.
And it’s all because of the accurate data and information that Fueltrax delivers.
From the start of tendering through contract award to completion, there is a much more efficient operation. Fueltrax’s accurate data has not only helped energy companies and vessel owners identify fuel wastage points, leading to significant cost savings, but it has also empowered them to take control of their operations. This tool enables people at all levels on both sides of the relationship to share accurate information that helps them do their jobs better, instilling a sense of confidence in their decision-making.
The data our tool delivers brings people together and encourages them to approach their work in a collaborative way that’s never happened before. It’s not accusatory anymore; it’s more like, “Hey, let’s do better together”. This spirit of collaboration, this shared goal of efficiency and sustainability, is the heart of the transformation we’re celebrating, making everyone feel united and part of a bigger picture.
This collective desire to focus on sustainable performance is changing the industry in lots of positive ways.
For example, some energy companies are devising an incentive mechanism to reward vessel owners and crews for managing fuel and operating the vessel efficiently, facilitated by Fueltrax’s data. Other operators are rewarding crew by raising their day rates. Petronas is lending operators 100% of the cost for installing Fueltrax and amortizing repayment over the tender period.
These are all great examples of how Fueltrax is helping owners and energy companies explore more sustainable contracting methods. These methods allow for a win-win situation for both sides, fostering a positive outlook for the industry’s future.
This is exciting because we meet many industry veterans who are resistant to sustainability and ESG, often due to concerns about the potential impact on profitability. However, we can give them examples showing that profit and purpose coexist and that their business does not have to lose money by doing the right thing.
In fact, it will thrive as solutions such as Fueltrax continue to transform the industry and move it toward a more sustainable future.