PETROMAKS - a new large Petroleum program managed by the Research Council of Norway

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PETROMAKS - a new large Petroleum program managed
by the Research Council of Norway

• Siri Helle FriedemannDiv. for Innovation
• Research Council of Norway

FresCo Seminar 13. 14. May 2004
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Presentation outline

• The Research Council of Norway
• Large programmes in general
• Importance of the petroleum sector
• Funding of petroleum research
• Petromaks

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The Research Council of Norway
Director General Staff International /EU
Administration
Communication
Division forScience
Division for Innovation
Division for StrategicPriorities
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Division for Science
Social Sciences
Humanities
Division Director
Physical Sciences and Technology
Staff
Biology and Biomedicine
Clinical Medicine and Public Health
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Division for Strategic Priorities
Future Technologies
Society and Public Policy
Division Director
Environmental Issues, Energy and Sustainable
Development
Staff
Marine Resources and Environment
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Division for Innovation
Promotion of RD and Commercialization
Manufacturing, ICT and Services
Division Director
Biotechnology, Food Science and Tax Incentive
Schemes
Staff
Agricultural and Marine Research
Energy, Petroleum and Maritime Research
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The Research Council of Norway is

• a government adviser
• identifying 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-ordinator initiating networks and promoting
co-operation between research institutions,
ministries, business and industry, public
agencies and enterprises, other sources of
funding, and users of research
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Focus areas of RD in Norway

• Basic science
• Information and communication technologies
• Marin science
• Medicine and health
• Interface environment/energy
• Biotechnology, Materials, Petroleum
• New Instruments
• CoE and YIA
• RCN large programmes

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Large programmes

• addressing major Norwegian challenges and
  possibilities
• to include long term basic RD, and applied and
  industrial RD into one thematic programme
• ten years perspective, at least 100 mill NOKs in
  annual budgets
• seven large programmes have been
• established

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Large programmes

• PETROMAKS (Petroleum) 2004 55 MNOK
• (Excluding contributions from running programs)
• FUGE (Functional Genomics) 2004 155 MNOK
• NANOMAT (Nanotechnology) 2004 76 MNOK
• NORKLIMA (Climate) 2004 82 MNOK
• HAVBRUK (Aquaculture) 2004 64 MNOK
• VERDIKT (ICT) 2004 120 MNOK
• RENERGI (Clean energy) 2004 149 MNOK

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The petroleum sector is important to Norway

• Numbers 2003
• 20 per cent of Norways GDP
• 42 per cent of the value of the countrys exports
• Future 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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The petroleum sector is important to Norway

• Strategic issue
• The Norwegian government has relied very much on
  the RD performed by the oil companies and the
  supply industry
• Introduction of PETROMAKS gives a signal of
  stronger governmental engagement in petroleum RD

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Development perspectives for the Norwegian
Continental Shelf
We can have a perspective for the Norwegian
Continental Shelf of 50 years of oil production
and 100 years with gas.
300
250
200
Annual production of oil and gas (mil. Sm3 o.e.)
Long-term scenario
150
Closing the gap must to a large extent rely on
development of new knowledge and technology
100
50
Decline scenario
0
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050
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Petroleumrelated RD is not a major issue related
to norwegian rd investments
Government funding of petroleum related RD
Budget 2004 incl. Finance from the reseach fund
4,4 Mrd kr (US640 mill)
250
200
150
MNOK
100
50
0
1995
2000
2004
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Financing of petroleum related RD

• Sources 5 ministries
• Petroleum and Energy
• Trade and Industry
• Environment
• Education and Research
• Labor and Government Administration
• Budget 2004
• 230 mill NOK (33.3 US)
• Proposed 2005
• 480 mill NOK (70 mill US)

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Petroleum related RD in RCN 2004

• Basic RD (100 mill NOK)
• Strategic university programs (SUP)
• Strategic institute programs (SIP)
• Petromaks
• Centres of excellence
• Basic funding of RD institutions
• Applied/user driven RDD (130 mill NOK)
• Petromaks
• Petropol
• Effets of discharges to sea
• DEMO 2000 (30 MNOK)

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National funding of oil and gas research in
2004 Including MNOK 28 from the The Fund for
Research and Innovation
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.

• In addition
• Health, safety and the environment (HSE) MNOK 15
  from the Ministry of Labor and Government
  Administration. Social science research on
  petroleum-related issues, approx. MNOK 6.
• Effects of discharges to sea approx. MNOK 8 from
  the Ministry of Petroleum and Energy and the
  Ministry of the Environment.

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PETROMAKS SCOPE

• Basic research and technology development, with
  special attention to the supply and service
  industry
• International cooperation
• RD cooperation with leading science and
  technology institutions and industry, may lead to
  maintaining a strong technological home base

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PETROMAKS

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

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Targets for PETROMAKS 2004
PRIMARY OBJECTIVES SECONDARY OBJECTIVES
Optimal resource management Find and develop more resources Enhance the recovery of petroleum resources
Economic development based on oil and natural gas Help enhance existing industry Contribute to the establishment of new economic activities
International competitiveness Boost exports of petroleum-related goods and services
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Important research and innovation topics in 2004 Important research and innovation topics in 2004
EXPLORATION The development of geophysical methods and products to improve surveys of basins and prospects, and to enhance the prediction of lithology and pore fluid. A better understanding and quantification of the geological processes that govern basin formation, sedimentation and basin scale fluid flow. The surveying and quantification of critical factors for distribution and properties of reservoir, source and cap rocks. The development of methods and products for integration and risk analysis. The development of concepts for environment-friendly exploration and less expensive exploration wells. ENHANCED RECOVERY Stimulated production. Surveying untapped oil and gas. Reservoir management, especially rapid updating and improved reservoir models.Cost-efficient transport of gas from the field. Cost-efficient drilling and drainage. Cost-efficient water treatment and water reinjection systems to increase hydrocarbon processing capacity.

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International RD cooperation

• Between scientists
• Between institutions
• Between research programmes and directed
  internationalisation measures
• Between countries
• Europe the main route
• North-America the strongest RD-region

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• Thank you for listening!

www.forskningsradet.no/petromaks/