In its latest industry opinion survey, Lloyd’s Register Energy notes that future advancement in the oil and gas sector will be driven by collaboration and innovation.
The compliance, risk and technical consultancy services group, released the results of its Technology Radar survey Sept. 30, which assesses the impact of innovation and investment by operators in the United States, Europe and Asia.
“This 2014 Lloyd’s Register Energy Technology Radar synthesizes the oil and gas sector’s view of which technologies harbor the greatest potential beneficial impact, and when that technology is likely to go mainstream,” says , John Wishart, director of Lloyd’s Register Energy.
“Through in-depth interviews and supported by a survey of more than 250 sector professionals, we have developed a clear and illustrative overview. Given the vast range of innovation underway, this study focuses on 25 specific technologies; technologies that help extend the life of current assets, or improve uptime and efficiency, are setting the greatest prioritization today.”
Launched at the start of the year, the survey takes the pulse of technical innovation in the oil and gas sector and looks ahead to the future investment drivers. It revealed the investment drives to be; safety improvements, improving operational efficiency, reducing costs, accessing new reserves and increasing asset lifespan.
Lead participants in the survey include commentary from UK Onshore Operations Group, Woodside Energy, Enertech, Maersk Drilling, TouGas Oilfield Solutions, Horton Wison Deepwater, Royal Dutch Shell, GE Oil & Gas, and also Douglas-Westwood, National Energy Technology Laboratory (US), and the Institute for the Analysis of Global Security.
According to Lloyd’s Register, the Technology Radar survey is one of the largest polls on the issue of technology and innovation in the oil and gas industry. It takes in to account respondent’s opinions and their business strategies in the near term (before 2020); the medium term (the years before and after 2020); and the longer term (from 2025 and beyond), and is based on five research questions:
1. Which technologies are likely to have the biggest impact in the next decade?
2. How are technical developments addressing the challenges the sector faces?
3. What are the drivers and barriers to innovation?
4. What patterns of innovation adoption can be identified?
5. Which types of organizations are leading the way?
Some key findings include:
- 73 percent surveyed believe that the rate of innovation in the sector is increasing
- 68 percent intend to increase their R&D budgets in the next two years
- 58 percent agree that future breakthroughs involve ‘bits and bytes’, rather than physical hardware
- In the last two years, 46 percent of breakthroughs have been driven by international oil companies and 31 percent by exploration and production companies
- But will companies adopt these innovations? According to the results, continued risk aversion in the sector, especially in the deployment of new technologies, is however, a major brake on innovation. Only one quarter of oil and gas companies consider themselves to be early adopters.
“Through this independent survey we are sharing to a global industry the views from industry, and we believe the results will help to guide future energy policy and the development of industry growth plans. With 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,” Wishart says.
“Initiatives that nurture technical innovation can no longer be an afterthought for business or government; they must be central to any organization’s strategy for sustainable growth and leadership. They are central to our growth too. Adapting that sort of thinking into what we do is going to be a very interesting part of how we move forward. We are driving the development of new concepts and technologies through collaborative R&D, and our focus is firmly on innovation – to benefit our clients and society’s future.”
See below for a full copy of the report or download the report at lr.org/technologyradar.