Oil and gas R&D spending to increase

The preliminary results from the Technology & Innovation Radar survey from Lloyd’s Register Energy has highlighted that the adoption and development of new technologies is fundamental to the advancement of the oil and gas sector. Especially when addressing the global demand for energy, and coping with environmental challenges.

Key findings

• The top three drivers of research and innovation is are: improving operational efficiency, improving safety and reducing costs.
• 34% of respondents indicated R&D spend is expected to increase by at least 10% in the next two years.
• Primary areas of innovation interest lie in subsea and remote technology.
• NOCs and state-backed operators are rapidly increasing their spend on innovation and technology as they expand.
• 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.

Discussing the issues and methodology

The industry has recently seen overall reserves and recovery rates rise, and the survey suggests this is a result of innovation, such as the increase in shale gas production. The survey also suggests that technological advances will keep pushing back any possible peak oil point for the foreseeable future. More than 75% of respondents believe innovation is speeding up.

The survey questioned sector professionals from 17 countries to comment on the adoption of technology and innovation. 20% of the respondents are based in the US. 64% of respondents were at manager level and 36% were a director or above.

Comments

John Wishart, President, Lloyd’s Register Energy said, "the preliminary results indicate we can expect strong growth for technology. We will formerly announce the findings from the survey in a report which will be published in June. 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 technology is moving ahead faster than regulation, society governments are becoming more demanding in their expectations from regulators, and engineering systems have become more complicated and integrated.

"The current findings underline that new technology is not a barrier. It is seen as the catalyst for a better performing oil and gas sector and a competitive necessity among the key operators."

Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.worldpipelines.com/business-news/08052014/oil_gas_r_d_spending_lloyds_487/