Status and Future of Petroleum Research by Siri Helle Friedemann Program coordinator

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Status and Future of Petroleum Researchby
Siri Helle FriedemannProgram coordinator Olje
og gass, RCNshf_at_forskningsradet.noFORCE
seminar at NPDApril 8, 2002
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The Research Council's system of governing bodies
Research Board
Bioproduction and Processing
Research Board
Industry and Energy
Research Board
Executive Board
Executive Board
Culture and Society
Research Board
Medicine and Health
Director General
Research Board
Environment and Development
Research Board
Organisation and Finance
Science and Technology
Public Relations and Information
Strategic Planning
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Total budget by divisions, NOK mill. (2002)
Bioproduction and Processing
adm.
Science and Technology
misc.
Industry and Energy
Environment and Development
Culture and Society
Medicine and Health
Total NOK 3 595 million (administration incl.)
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Funding received from the ministries (2002)
Administration
The Research Fund
Miscellaneous ministries
Ministry of Education, Research and Church
Affairs
Ministry of Environment
Ministry of Trade and Industry
Ministry of Agriculture
Ministry of Petroleum and energy
Ministry of Fisheries
Total NOK 3 595 million (administration incl.)
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Budget development (1993-2002)
Mill. NOK
1993-NOK
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Total budget by divisions (1993-2002)
Mill. NOK
Staffs
Science and Technology
Environment and Development
Medicine and Health
Culture and Society
Industry and Energy
Bioproduction and Processing
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Objectives for Energy RDD

• The overall objectives of energy RDD 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

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Objectives for Petroleum RDD

• Objectives for petroleum RDD specifically, can
  be extracted from the overall goals of energy
  RDD
• 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

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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
Social science research on petroleum related
issues Petropol 6 MNOK
Strategic and basic petroleum research Basic
funding Petroforsk SIP/SUP 69 MNOK
Userdriven oil- and gas research Olje- og
gass 35 MNOK
Qualifying new technology trough pilot
demon- strations DEMO2000 20 MNOK
Effects of discharges to sea 2 MNOK
HSE in the petroleum sector 15 MNOK
Gas power with CO2 capture and disposal 50 MNOK
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Instruments for Petroleum RDDmanaged 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??

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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)

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The innovation programme Olje og gass

• New programme for userdriven petroleum RD
  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.

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Programboard Olje og gass

• Title Name Employed at
• Vice President Ole Berg (chairman) ABB Offshore
  Systems
• Vice President Ingve R. Theodorsen Statoil
• Vice President Hans Jørgen Lindland FMC
  Kongsberg Subsea
• Vice President Ingebrigt Moum Kværner
• Sen Advisor Per Erling Frivik SINTEF Energi
• Vice President Jørgen C. Arentz Rostrup Norsk
  Hydro Technology New
• Ventures
• Vice President Eva Halland NPD
• Area Manager Kristine Holm TotalFinaElf
• Sen ResearcherAina Margrethe Berg RF

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Value is created by cooperation
The autorities are an important stakeholder due
to their ownership of both resources and
operating oil and gas companies Governmental
funded RDD 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.
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Financing of user driven research and
demonstration 1999/2001
User driven research and development
Demonstration
Industry 28
Industry 27
Oil Companies42
Oil Companies 48
OED/RCN 25
OED/NHD/RCN 30
Industry involvement Oil comp anies 11
Service and supply comp.
60 SME lt 100 employees
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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 websitehttp//www.program.f
  orskningsradet.no/olje-gass/

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Userdriven petroleum RD

• The governmental funding for userdriven RD
  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.

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Future of Petroleum ResearchWhat 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 RDD

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OG21 has defined five important focus areas

• Environment
• Increased recovery
• Deep waters
• Small reservoirs
• Gas value chain

Kilde Phillips
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National Technology Strategy
Demonstration Useroriented RD
Strategic kompetence /Education
Governmental funding Industry funding
Demo 2000
Value added through Increased Recovery Reduced
CostEP - Export Potential
Prioritised - thematic areas
0 - 4 0 - 10
Time
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National Technology Strategy
A national effort and cooperation to double the
efforts and spendings related to petroleum
research and technological development
5000

• 1 MNOK from the government releases 3-4 MNOK from
  the industry
• Ensure Norwegian competence
• Ensure value creation in Norway

4400
2900
2700
600
200
Need for governmental funding to approach 600
MNOK the next 2-3 years
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OG21 Vision and Objectives
Vision We want - World class
competence a 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 industrys international
competitivenes
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Thank you for listening.

• Any questions?