Future Challenges in Cooperative Petroleum Research Status Progress

Future Challenges in Cooperative Petroleum ResearchFuture Challenges in Cooperative Petroleum Research

Future Challenges inFuture Challenges inCooperative Petroleum ResearchCooperative Petroleum Research

• Status Status • ProgressProgress

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Statens finansiering av brukerstyrt petroleums-FoU via Norges Forskningsråd vs. statens

inntekter fra petroleumsnæringen (2002 kroner)

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Statens inntekter frapetroleumssektoren

Totalt brukerstyrtinkludert naturgass


Norwegian Research Council suggested 20%Norwegian Research Council suggested 20%increase (570 MNOK) in funding from the governmentincrease (570 MNOK) in funding from the governmentfor 2003for 2003

Before last week:Before last week: Actual increase was 10%Actual increase was 10%Revised budget last week: Revised budget last week: Actual increase is 8%Actual increase is 8%

Wanted to strengthen research withinWanted to strengthen research within• BiotechnologyBiotechnology• Petroleum technologyPetroleum technology• Materials engineeringMaterials engineering

October 1st 2002: SkatteFUNN October 1st 2002: SkatteFUNN (max 4MNOK/year/company)(max 4MNOK/year/company)


R&D-support as % of GNPR&D-support as % of GNP (Source: NRC, 2003)(Source: NRC, 2003)

• Sweden : Sweden : 4.3 %4.3 %

• Finland : Finland : 3.4 %3.4 %

• Iceland : Iceland : 3.0 %3.0 %

• Denmark : Denmark : 2.4 %2.4 %

• Norway : Norway : 1.6 %1.6 %

OECD-average: 2.2 %OECD-average: 2.2 %

• Sweden: Sweden: 10300 NOK/inhabitant10300 NOK/inhabitant

• Norway: Norway: 5400 NOK/inhabitant5400 NOK/inhabitant


Good relations - personal contactsGood relations - personal contacts

Research institutionsResearch institutions Oil companiesOil companies


• Project theme defined based on internal/personal interest or believing idea Project theme defined based on internal/personal interest or believing idea

might be of interest to the companiesmight be of interest to the companies

Several research istitutions lack ”the right links” Several research istitutions lack ”the right links”

to the ”right people” in the oil companiesto the ”right people” in the oil companies

ProjectProject proposal proposal

• Proposal sent to people ”they know” without necessarily being the right Proposal sent to people ”they know” without necessarily being the right

technical persontechnical person

• Possibly no initial discussion prior to project presentation sent via e-mailPossibly no initial discussion prior to project presentation sent via e-mail


Research institutions are using lots of time Research institutions are using lots of time and effort toand effort to

Should use the time for researchShould use the time for research

• write project proposalwrite project proposal• marketing the proposalsmarketing the proposals


- no deadline for feedbackno deadline for feedbackno formal system for internal no formal system for internal handling of external project proposalshandling of external project proposals

Recommendation:No

- no given formal contact personno given formal contact person - no given system for feedbackno given system for feedback

Dept. ADept. A Dept. BDept. B Dept. CDept. C

Dept. FDept. F Dept. EDept. E Dept. DDept. D

Need a more effective process!Need a more effective process!

Oil companyOil company


Research institutionsResearch institutions

FORCESecretariat (NPD)

FResCo

20022002Enhanced cooperationEnhanced cooperation

SeminarSeminar


Feedback from research institutionsFeedback from research institutions

No more “boxes”, please!No more “boxes”, please!Action is needed!Action is needed!

High quality research projectsHigh quality research projects


Abroad…. ? Example: UKAbroad…. ? Example: UK

Industry Technology Facilitator (ITF)Industry Technology Facilitator (ITF)• a not for profit organisation owned and supported by major operating a not for profit organisation owned and supported by major operating and service companiesand service companies• the vehicle through which these companies fund joint industry projects the vehicle through which these companies fund joint industry projects that address the technology needs of the UK oil and gas industry.that address the technology needs of the UK oil and gas industry.

Among other tasks:• Identify gaps in technology and potential solutions• Assess feasibility of proposed projects• Proposals that have passed through the assessment stage are developed and put forward to members with a recommendation for funding



Asked all oil companies to listAsked all oil companies to list

Long-term research topics and technology needsLong-term research topics and technology needs

Action: Improve the processAction: Improve the process

Research institutionsResearch institutions

FORCESecretariat (NPD)

FResCo



Message:Message:Base the project proposals on Base the project proposals on ”Long-term research topics and ”Long-term research topics and technology needs”technology needs”

Submit the proposal to Submit the proposal to Force within 15Force within 15thth June June

PurposePurpose• find the right themes for projects find the right themes for projects

• gain more interest for the proposalsgain more interest for the proposals


ExperienceExperience• Discussion of project theme was often fruitless as the “right people”Discussion of project theme was often fruitless as the “right people” were not involved either concerning content or budgetwere not involved either concerning content or budget

• Companies answered “No” without giving any feedback on Companies answered “No” without giving any feedback on what theme(s) might rather be of interestwhat theme(s) might rather be of interest

• Companies hesitate to give out ideas of what to do research on Companies hesitate to give out ideas of what to do research on due to competition (especially in exploration)due to competition (especially in exploration)

ResultResult• Not a single project was initiatedNot a single project was initiated


Consortium: Norwegian Sea 18th Round and Beyond

Structural geology

Reservoir Prediction

Bio -stratigraphy

Basin modelling

Seismic Imaging

Harald Brekke Tore HøyRobert Williams

Christian Magnus Arild Haugen


Biostratigraphy Sedimentology Rock Properties

*Link to geophysics, rock properties.

Biofacies

Biostrat/dating

Depositionalmodel.Paleogeographicalmaps.

Core descriptions

Trace Fossils(Atlas?)

N/G distribution

Petrography

Diagenesis

Clay minerals* Provenance

Structural Geology?

Seismic interpr.Key data ?

Norwegian Sea (Lysing/Lange)Research Consortium

Budget estimate pr. year; 2000 kNOK + 1000kNOK (forskningsråd)


Norwegian Sea Research ConsortiumNorwegian Sea Research Consortium(NOSE RES-Q)(NOSE RES-Q)

The aim of the project is to address two main un-The aim of the project is to address two main un-certainties in the exploration processcertainties in the exploration process

Interest from technical people, but need to be aligned with Interest from technical people, but need to be aligned with the fundingthe funding process within the companiesprocess within the companies

• The absence of mineralogical input to a "rock properties" model for The absence of mineralogical input to a "rock properties" model for the the Upper Cretaceous (shale rock properties in particular), enhancing Upper Cretaceous (shale rock properties in particular), enhancing seismic attribute evaluation seismic attribute evaluation • Methodologies to predict sand-presence in a distal/basinal settingMethodologies to predict sand-presence in a distal/basinal setting


Why?Why?• Lack of interesting themesLack of interesting themes• Lack of moneyLack of money

ConclusionConclusion• Action has been taken, but success is lackingAction has been taken, but success is lacking


NeedsNeeds

• Agreement on themes for research among oil Agreement on themes for research among oil

companies companies that address the technology needsthat address the technology needs • Commitment from high-level managementCommitment from high-level management

• Communication of agreed themes to research Communication of agreed themes to research institutionsinstitutions


Focus this year’s seminar onFocus this year’s seminar on

Mechanism of cooperationMechanism of cooperation



• Mechanism of cooperation Mechanism of cooperation

NeedNeed

• Which leads to initiation of high qualityWhich leads to initiation of high quality

research projectsresearch projects

• Does there already exist such a mechanismDoes there already exist such a mechanism

to build on?to build on?


• The absence of mineralogical input to a "rock properties" model for The absence of mineralogical input to a "rock properties" model for the the Upper Cretaceous (shale rock properties in particular), enhancing Upper Cretaceous (shale rock properties in particular), enhancing seismic attribute evaluation seismic attribute evaluation • Methodologies to predict sand-presence in a distal/basinal settingMethodologies to predict sand-presence in a distal/basinal setting


Norwegian Research CouncilNorwegian Research Council

Not enough to increase activity and raise Not enough to increase activity and raise level of researchlevel of research

Research institutionsResearch institutionsAlthough a list of needs was presented, some project proposals were notAlthough a list of needs was presented, some project proposals were not

aligned according to the listaligned according to the list


PurposePurpose• find the right themes for projects find the right themes for projects • gain more interest for the project proposalsgain more interest for the project proposals

ResultResult• Not a single project was initiatedNot a single project was initiated

that address the technology needsthat address the technology needs

• Assess themes that address the technology needsAssess themes that address the technology needs

Documents

Future Challenges in Cooperative Petroleum Research Status Progress