Status and Future of
Petroleum Research
by Siri Helle Friedemann
Program coordinator ”Olje og gass”, RCN
FORCE seminar at NPDApril 8, 2002
Executive Board
The Research Council's system of governing bodies
Organisation and Finance
Public Relations and Information
Strategic Planning
Medicine and Health
Industry and Energy
Culture and Society
Environment and Development
Science and Technology
Director General
Bioproduction and ProcessingResearchBoard
ResearchBoard
ResearchBoard
ResearchBoard
ResearchBoard
ResearchBoard
Executive Board
Total budget by divisions, NOK mill. (2002)
180
732
362
271491
657
649
Industry and Energy
Bioproduction and Processing
Science and Technology
Culture and Society
Environment and Development
Medicine and Health
Total NOK 3 595 million (administration incl.)
misc.
adm.
Funding received from the ministries (2002)
Ministry of Trade and Industry
Ministry of Petroleum and energyMinistry of Fisheries
Ministry of Agriculture
Ministry of Environment
Ministry of Education, Research and Church Affairs
Miscellaneous ministries
Administration
Total NOK 3 595 million (administration incl.)
The Research
Fund
0
500
1000
1500
2000
2500
3000
3500
1993 1995 1997 1999 2001
Budget development (1993-2002)
1993-NOK
Mill. NOK
0
500
1000
1500
2000
2500
3000
3500
1993 1995 1997 1999 2001
Total budget by divisions (1993-2002)
Industry and Energy
Medicine and Health
Environment and Development
Science and Technology
StaffsMill. NOK
Culture and Society
Bioproduction and Processing
Objectives for Energy RD&D
• The overall objectives of energy RD&D are threefold:
• Contribute to security and diversity of energy supply.
• Promote economic growth and the competitiveness of industry
• Reduce the environmental impact of energy supply and use
Ref.:International Energy Agency
Objectives for Petroleum RD&D• Objectives for petroleum RD&D
specifically, can be extracted from the overall goals of energy RD&D:
• Optimum resource management• International competitiveness of
industry• High competence and knowledge• New industry development based on
oil and natural gas
Ref. ”Olje og gass” program
National Funding of oil- and gas research 2002
Ministries: Ministry of Petroleum and Energy, Ministry of Trade and Industry, Ministry of the Environment, Ministry of Education and Research, Ministry of Labour and Government Administration
The Research Council of Norway
Strategic and basic petroleum research
Basic fundingPetroforskSIP/SUP
69 MNOK
Social science research on petroleum related issues
Petropol
6 MNOK
Userdriven oil- and gas research
Olje- og gass
35 MNOK
Qualifying new technology trough pilot demon-strations
DEMO2000
20 MNOKHSE
in the petroleum sector
15 MNOK
Gas power with CO2 capture and
disposal50 MNOK
Effects of discharges to sea
2 MNOK
Instruments for Petroleum RD&Dmanaged by the RCN• Basic funding to the Institutes• Institute and University
Programmes• Programmes, both researcher- and
userdriven
• In addition there is allocated funding for independent projects (basic research) and infrastructure (advanced scientific equipment)
• Center of Excellence??
Center of Excellence in Petroleum relevant diciplines?• 40 applications for CoE• 4 applications are relevant for
upstream petroleum research:Integrated Petroleum Research (UiB)
Geohazards (NGI)Multiphase Systems (UiB)Physics of geological processes (UiO)
• In addition there is application for:Ships and Ocean Structures (NTNU)From Natural gas to Energy Products
(NTNU)Ocean Storage of CO2 (Nansen)
The innovation programme ”Olje og gass”
• New programme for userdriven petroleum R&D managed by Industry and Energy:
• The instruments are:Innovation projects (2/3 of the portfolio)Enabling strategic projects (1/3 of the
portfolio)
• The programme shall focus on thematic areas within the OG21 strategy and adress challenges on the NCS to secure competitiveness of the industry, economic growth and welfare.
Programboard ”Olje og gass”Programboard ”Olje og gass”Title Name Employed at
Vice President Ole Berg (chairman) ABB Offshore Systems
Vice President Ingve R. Theodorsen StatoilVice President Hans Jørgen Lindland FMC
Kongsberg Subsea
Vice President Ingebrigt Moum KværnerSen Advisor Per Erling Frivik SINTEF EnergiVice President Jørgen C. Arentz Rostrup Norsk Hydro
Technology NewVentures
Vice President Eva Halland NPDArea Manager Kristine Holm
TotalFinaElfSen ResearcherAina Margrethe Berg RF
The autorities are an important stakeholder due to their ownership of both resources and operating oil and gas companies
Governmental funded RD&D has been and is essetial to build the Norwegian petroleum sector, comprising oil- and gas producers, service- and supply enterprises and the institutes and universities.
Value is created by cooperation
Financing of user driven research and demonstration 1999/2001
OED/NHD/RCN 30%
Oil Companies42%
OED/RCN 25%
Oil Companies 48%
User driven researchand development
Demonstration
Industry 28% Industry 27%
Industry involvement: Oil comp anies : 11 Service and supply comp. : 60
SME < 100 employees : 22
Thematic Research Initiatives
• The Oil and Gas Programme is open for applications on thematic areas within the OG21 strategy, based on an overall portfolio analysis and OG21 priorities, the call for applications will state specifically which of the thematic areas that are open for applications.
• The call for applications within “enabling strategic projects” has been issued with deadline June 15. The call asks for applications within the thematic areas ”Increased recovery” and ”Exploration”.
• The call for innovation projects will be issued before the summer holidays with deadline September 15.
• Ref. is made to the website:
http://www.program.forskningsradet.no/olje-gass/
Userdriven petroleum R&D
0
50
100
150
200
250
300
1993
1994
1995
1996
1997
1998
1999
2000
2001
Inco
me
BN
OK
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
Fu
nd
ing
MN
OK Governmental income
from the petroleumsector
Governmental fundinguser-driven petroleumresearch
• The governmental funding for userdriven R&D within the petroleum sector has been steadily decreasing for many years,while the state income through direct ownership and taxes have increased drastically over the same period.
Future of Petroleum Research
What now?The RCN is host for the OG21 secretariat and take part in the OG21 strategy work.
RCN will use the OG21 strategy to further develop their instruments and thematic priorities for petroleum research.
RCN work together with OG21 in order to increase the governmental involvment and support for petroleum RD&D
OG21 has defined five important focus areas:
Environment Increased
recovery Deep waters Small
reservoirs Gas value
chain
Ekofisk Oil Production History
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Time
STB
2/4 GT
2/4 X
2/4 K
2/4 C
2/4 B
2/4 A
Ekofisk Oil Production History
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Time
STB
2/4 GT
2/4 X
2/4 K
2/4 C
2/4 B
2/4 A
Kilde: Phillips
National Technology Strategy
Prioritised - thematic areas
Demo 2000
Demonstration Useroriented R&D Strategic kompetence /Education
Time0 - 4 0 - 10
Value added through:Increased RecoveryReduced CostEP - Export Potential
Governmental funding
Industry funding
National Technology Strategy
200
2700
2900
5000
4400
600
1 MNOK from the government releases 3-4 MNOK from the industry
Ensure Norwegian competence
Ensure value creation in Norway
Need for governmental funding to approach 600 MNOK the next 2-3 years
A national effort and cooperation to double the efforts and spendings related to petroleum research and technological development
OG21 Vision and Objectives
Vision
We want - World class
competencea leading global
industry
We want to be - the most productive
continental shelf
Vision
We want - World class
competencea leading global
industry
We want to be - the most productive
continental shelf
Main Objectives
Ensure most profitable and environmentaly friendly development of the resources of the Norwegian Continental Shelf
Strengthen the industry’s international competitivenes
Main Objectives
Ensure most profitable and environmentaly friendly development of the resources of the Norwegian Continental Shelf
Strengthen the industry’s international competitivenes
Thank you for listening.
Any questions?