Workshop on petroleum R&D cooperation between USA and Norway

Workshop on petroleum R&D cooperation between USA and Norway

Erik Skaug

Program directorDiv. for Innovation Research Council of Norway

The petroleum sector is important to Norway

Numbers 2003 20 per cent of Norway’s GDP 42 per cent of the value of the country’s

exportsFuture challenges

increased oil recovery in exisiting fields development of smaller fields further exploration in general, but

specifically also in environmentally sensitive areas in the North

efficiency and sustainability

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2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050

An

nua

l pro

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of o

il a

nd g

as (

mil.

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3 o

.e.)

Decline scenario

Long-term scenario

Closing the gap must to a large extent rely on development of new knowledge and technology

”We can have a perspective for the Norwegian Continental Shelf of 50 years of oil production and 100 years with gas.”

Development perspectives for the Norwegian Continental Shelf

The background

Why are we here?

MoU between DOE and OED

Put petroleum R&D content into the MoU

Scheduled meeting in the Norwegian Research & Technology Forum in the US and Canada

Why workshop?

Exploit possibilities for creating cooperation, collaboration, or coordination of R&D within the petroleum sector

Possibilities must be found within areas/themes which both countries prioritise

Exploration(geophysics and geology) Enhanced oil recovery Challenges in artic areas

The workshop form has limited attendance,is unformal and requires engagement from all present

The Research Council of Norway is:

a government adviseridentifying present and future needs for knowledge and

research, and recommending national priorities

a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The Research Council has an annual budget of some NOK 4,5 billion

a co-ordinatorinitiating networks and promoting co-operation between research

institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research

The Research Council of Norway

Administration Communication

Division forScience

Division for Innovation

Division for StrategicPriorities

Director General Staff International /EU

Focus areas of R&D in Norway

Basic scienceInformation and communication technologiesMarine scienceMedicine and healthInterface environment/energy

Biotechnology, Materials, Petroleum

New Instruments CoE and YIARCN large programmes

Large programmes

Addressing major Norwegian challenges and possibilities

To include long term basic R&D, and applied and industrial R&D into one thematic programme

Ten years perspective, at least 100 mill NOK’s in annual budgets

Seven large programmes have been established

Focus on international participation

KRD1 %

SD2 %

NHD20 %

OED7 %

FID6 %

LD8 %

MD5 %

Fondet14 %

HD3 %

UD2 %

UFD29 %

Øvrige3 %

Petroleumrelated R&D has not been been a major issue related to norwegian r&d investments

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1995 2000 2004

MNOK

Budget 2004 incl. Finance from the reseach fund: 4,5 Mrd kr (US$640 mill)

Government funding of petroleum related R&D

PETROMAKS SCOPE

R&D cooperation with leading science and technology institutions and industry, shall lead to maintaining a strong technological home base

Basic research and technology development, with special attention to the supply and service industry

International cooperation

PRIMARY OBJECTIVES SECONDARY OBJECTIVES

Optimal resource management Find and develop more resourcesEnhance the recovery of petroleum

resources

Economic development based on oil and natural gas

Help enhance existing industryContribute to the establishment of

new economic activities

International competitiveness Boost exports of petroleum-related goods and services

Targets for PETROMAKS 2004

OG21 – Oil & Gas in the 21st Century - main objectives

Develop new knowledge and technology to ensure economic and environmentally sound development of the resources on the Norwegian Continental Shelf

Strengthen the industry’s competitive advantage in a global market by developing new and attractive technology products and systems

OG21: Focus Areas &Technology Targets Areas (TTA)

Deep waterReal time reservoir management Deep water floating technology

Gas value chain

Competitive gas production and offtake

Small fieldsLong range transport of well stream Seabed and downhole processing

Increased recovery

Stimulated recovery Cost effective drilling

Environment Zero harmful discharge to sea 30%red. emissions to the atmosphere

PETROMAKS 2004 Concentrate on exploration and increased recovery. The first call for proposals resulted in applications

totalling a project volume of 900 mill. NOK. over the entire project period.

PETROMAKS 2005 Expanding into other thematic areas to cover most of

the upstream petroleum areas and also HSE. As a guidance for this expansion PETROMAKS will aim

at implementing as much as possible of the strategies and plans laid down by the government initiative OG21 (Oil and Gas in the 21th century).

PETROMAKS PARTICULAR ISSUE Basic research and technology development, with

special attention to the supply and service industry.

PETROMAKS

International R&D – cooperation

Between scientists

Between institutions

Between research programmes and directed internationalisation measures

Between countries Europe the main route North-America the strongest R&D-region

Partnership Innovation

Norwegian Universities/R/D institutions

Foreign Universities/R/D institutions

R&D financing R&D financing

Foreigncompanies

Norwegiancompanies

KnowledgeInnovationBusiness

Thank you for listening!

www.forskningsradet.no/petromaks/