Blue economy both an opportunity and threat
- SOGCE ADMIN
- Jul 7, 2025
- 2 min read
Published on: Sunday, July 06, 2025
MRINALINI Bose, Project Manager and Advisory of Norwegian based Rystad Energy, described the rise of the blue economy as both a threat and an opportunity to the traditional oil and gas industry.
While the global push for sustainable energy presents a challenge to conventional fossil fuel, she argued that it also opens the door for legacy industries to reposition themselves as leaders in the transition.
For places like Sabah, she said, sensitivity is heightened due to the State’s ecologically rich maritime zones and a highly vocal tourism sector.
“Licensing processes are now more stringent, with projects subjected to increasing scrutiny from environmental and community stakeholders.
“While funding is flowing, it is selectively targeted, often addressing only specific segments of the sector. The traditional oil and gas sector may find itself increasingly marginalised unless it adapts and aligns with emerging sustainability mandates.
Yet, she said the shift doesn’t have to be adversarial as the oil and gas industry possesses the very expertise needed to scale the blue economy, particularly in areas like offshore wind, floating solar, wave energy and blue hydrogen development, supported by carbon capture and storage (CCS) technologies.
“Recent trends have shown a slowdown in sustainable energy investment, especially in hydrogen, which has seen declining demand since its peak in 2022. Countries like Japan and South Korea, once eager off takers, have become more cautious.
“However, significant capital is still being channeled into advancing renewable technologies, driven by a strong macroeconomic imperative to diversify energy sources. This narrative should be framed as a collaborative path forward.
She emphasised that ESG compliance is now essential for securing investment, with capital flowing toward climate-resilient, scalable projects.
“While offshore wind remains costly, floating solar has become competitive, especially in maritime economies where oil and gas skills are transferable.
“Indonesia’s floating solar, Singapore’s green shipping corridors and Vietnam’s offshore wind, urges to move beyond feasibility into implementation,” she said.
For projects to succeed, she stressed the need for commercial viability, strong partnerships, and clear offtake structures, warning that many currently stall due to cost mismatches and poor integration.
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