Workshop on petroleum R

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Workshop on petroleum RD cooperation between USA
and Norway

• Erik Skaug
• Program directorDiv. for Innovation
• Research Council of Norway

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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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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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Key Challenges - NCS
Sensitive frontier regions HSE
Standards Industrial Infrastructure
Stranded Oil Gas Small Fields Tail Production
Gas to Market LNG/ Grid
Deeper Water Reduce CAPEX
North Sea
Mature Areas, EOR/IOR Life of Infrastructure Produ
ced water
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The backgroundWhy are we here?

• MoU between DOE and OED
• Put petroleum RD content into the MoU
• Scheduled meeting in the Norwegian Research
  Technology Forum in the US and Canada

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Why workshop?

• Exploit possibilities for creating cooperation,
  collaboration, or coordination of RD 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

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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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The Research Council of Norway
Director General Staff International /EU
Administration
Communication
Division forScience
Division for Innovation
Division for StrategicPriorities
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Focus areas of RD in Norway

• Basic science
• Information and communication technologies
• Marine 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
• Focus on international participation

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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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Petroleumrelated RD has not been been a major
issue related to norwegian rd investments
Budget 2004 incl. Finance from the reseach fund
4,5 Mrd kr (US640 mill)
Government funding of petroleum related RD
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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PETROMAKS SCOPE

• RD 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

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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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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 industrys competitive advantage
  in a global market by developing new and
  attractive technology products and systems

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OG21 Focus Areas Technology Targets Areas (TTA)
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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 PARTICULAR ISSUE
• Basic research and technology development, with
  special attention to the supply and service
  industry.

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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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Partnership Innovation
Knowledge Innovation Business
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• Thank you for listening!

www.forskningsradet.no/petromaks/
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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.