Oil and gas R&D spending to jump 10pc
London, May 5, 2014
Oil and gas research and development spend will increase by at least 10 per cent in 2015, a new global survey has found.
The new research by Lloyd's Register Energy explores the drivers for technology and innovation in the global oil and gas industry.
Findings from the survey also suggest that technological advances will keep pushing back any possible “peak oil” point for the foreseeable future. More than 75 per cent of respondents believe innovation is speeding up.
The Technology & Innovation Radar survey results will be released today at the Offshore Technology Conference (OTC) in Houston by Lloyd’s Register Energy.
It provides insight into the adoption and development of new technologies which are fundamental for the advancement of the oil and gas sector in addressing the global demand for energy, and to cope with the environmental challenges in the decades ahead.
The top three drivers of research and innovation are: Improvement in operational efficiency; improvement in safety; and reduction in costs, it said.
About 34 per cent of respondents indicated R&D spend is expected to increase by at least 10pc in the next two years.
Primary areas of innovation interest are in subsea and remote technology; innovative solutions that support increased uptime and efficiency; and the application of nano technology to better enhance oil recovery in new offshore and onshore fields, it said.
NOCs and state-backed operators are rapidly increasing their spending on innovation and technology as they expand globally.
Oil and gas companies will engage in greater collaboration for R&D in the future by establishing partnerships, creating joint ventures and acquiring start ups, the study said.
To help gain a deeper understanding of the market view, Lloyd’s Register Energy invited sector professionals, leading academics and industry bodies from 17 countries to comment on the adoption of key technologies and innovation, the time line for implementation and the impact technological advancements can have upon safety and efficiency. 20pc of the respondents surveyed were based in US.
“The preliminary results indicate we can expect strong growth for technology,” highlighted John Wishart, president of Lloyd’s Register Energy. “With emission regulations and rising energy costs, the oil and gas sector will benefit from a clearer understanding of the potential innovation scenarios to meet future energy demands and providing robust energy supply.”
While industry has seen overall reserves and recovery rates rise, the survey indicates this is a result of innovation, such as the increase in shale gas production. - TradeArabia News Service