The petroleum industry of today is very different from what it was in the late 1960s. Using a wide range of small and large technological revolutions, we are now able to produce oil and gas both more efficient and safe while at same time mitigating effects on the environment and climate.
So far, only 45 per cent of the estimated total recoverable resources on the Norwegian continental shelf has been produced. Production of the remaining resources will generate substantial value creation. In order to take advantage of this potential, new knowledge and technology must be developed. This is a cornerstone in the management of Norwegian petroleum resources
Since the beginning of Norwegian petroleum activities, research, development and demonstration of new technology has been essential in order to find solutions on how to discover, develop and produce Norwegian oil and gas both safely and efficiently. Technology is also a prerequisite for solving both current and future challenges in the petroleum industry.
The competitiveness and innovation of the petroleum industry has contributed positively to other industries in Norway, including both the maritime industry and renewable energy. Technology developed at the Norwegian Continental Shelf has also given the Norwegian service and supply industry in a competitive advantage internationally.
Favourable framework conditions have given companies incentives to carry out research and technology development. Close collaboration between oil companies, suppliers and research institutions has underpinned the successful development of new technology and solutions.
Several new challenges lie ahead. There are fewer large discoveries and developments than before. It is more demanding to produce the remaining resources from ageing fields than it was to produce oil or gas when the fields were young. All things being equal, it is thus more difficult for individual projects to finance technology development.
To ensure that value creation from petroleum activities continues in the future, it is important that oil companies, other businesses and the authorities continue to invest in R&D. Such initiatives are needed to further develop the industry’s expertise and competitiveness and to maximise safe recovery of the petroleum resources on the Norwegian shelf.
The Ministry of Petroleum and Energy therefore encourages research, development and demonstration via research programmes where both companies and research institutions may seek funding for specific projects.
The Stavanger-based company Zaptec has developed a small, compact and fully galvanically insulated transformer that can be fitting in the charging cable for an electric car. It adapts to the grid voltage, making it possible to charge electric vehicles quickly and easily anywhere and thus dealing with the problem of providing adequate charging infrastructure. The technology was originally developed to supply high current and voltage for tools used at great depths in oil wells.
In 2001, the Ministry of Petroleum and Energy established the strategy “Oil and Gas in the 21st Century” (OG21) in 2001 to address the challenges associated with efficient and responsible petroleum activities. The OG21 process has facilitated for oil companies, universities, research institutions, the supplier industry and the authorities to agree on a joint national technology strategy for oil and gas. The strategy has been revised several times, most recently in 2016.
The authorities encourage research and technology development primarily through legislation or other forms of regulation and through direct allocations to the Research Council of Norway. Most of these allocations go to the PETROMAKS 2 and DEMO2000 research programmes and to research centres in Stavanger and Tromsø.
These programmes and centres contribute to achieving the objectives set out in the OG21 strategy.
PETROMAKS 2 provides funding to a broad range of projects, from strategic basic research at universities and research institutes to innovation projects headed by the private sector. The programme has an overall responsibility for research that facilitates the best possible management of Norwegian petroleum resources and future-oriented business development in the sector.
At the start of 2018, there were roughly 120 active projects in the PETROMAKS 2 portfolio. The programme also provides funding for a number of pre-projects carried out by small and medium-sized enterprises in order to encourage more innovation in the supplier industry. In 2018, the programme has a budget of roughly NOK 270 million.
The PETROMAKS 2 programme is an important funding instrument used to promote long-term research and competence-building, and is focusing strongly on education in the programme period, for example by funding PhDs. The programme has a broad international interface, including North America, Russia and Brazil.
Read more about the PETROMAKS 2 programme on the Research Council website.
The Norwegian University of Science and Technology (NTNU) has studied the observable forces when a drill string gets stuck in a borehole. The purpose was to develop a model of observations in real time for comparison against historical data from a comprehensive database, and make it possible to search for patterns and find deviations. Through such pattern recognition, causes of faults can be identified. This model has been successfully commercialised by the start-up Verdande and is used on 60 drilling rigs around the world. The technology is now being tested for other applications, such as monitoring heart patients.
Other examples include projects awarded funding under a joint call for proposals from the NANO2021 and PETROMAKS 2 programmes. This call resulted in two research projects that apply nanotechnology for enhanced recovery of immobile oil. The projects exemplify how industry-relevant basic research can help to boost recovery rates from fields on the Norwegian shelf.
The DEMO2000 programme is an important funding instrument for testing new technology solutions in the petroleum industry. Its purpose is to reduce the industry’s costs and risks by providing funding for pilot and demonstration projects. The DEMO2000 programme functions as a collaborative arena for the petroleum and supplier companies, and is open to any Norwegian business that supplies technology to petroleum companies on the Norwegian shelf.
The programme issues two calls for proposals annually and provides funding to projects that satisfy the requirements for the technology strategy set out in OG21. At the start of 2018, there were roughly 70 ongoing projects in the programme, with a budget of NOK 70 million.
Read more about the DEMO2000 programme on the Research Council website.
A large proportion of DEMO2000 projects involve testing of new subsea technology. One such project, concluded in 2013, was Seabox, a system for purifying and desalinating seawater for injection in reservoirs to increase pressure. The entire technology is subsea-based and may significantly improve recovery from limestone reservoirs. At the same time, a subsea solution will be more energy-efficient and cost-effective than modifying a platform or constructing a new one.
(Research centres for petroleum activities)
ARCEx - Research Centre for Arctic Petroleum Exploration
In 2013, a high-quality research and knowledge centre was established at the University of Tromsø - the Arctic University of Norway to address issues of relevance to the oil industry in the Arctic. ARCEx is funded jointly by the Ministry of Petroleum and Energy and the Ministry of Foreign Affairs.
The National IOR Centre of Norway
Also in 2013, a research centre for improved oil recovery was opened at the University of Stavanger. The centre contributes to industry-relevant research, researcher training and long-term competence-building for improved recovery on the Norwegian shelf. It also facilitates cooperation between the industry and research communities so that new solutions can be rapidly deployed. Improvement of existing recovery methodologies and development of new ones are key focus areas. Both PETROSENTER centres will be in full operation for up to eight years from 2014, and will be evaluated after five years.
Read more about the PETROSENTER centres on the Research Council website.
Other research centres and programmes
The Research Council has launched several Centres for Research-based Innovation (SFI) as well as Centres of Excellence (SFF). A number of these centres carry out petroleum-relevant research, including:
- Multiphase Flow Assurance Innovation Centre (FACE) at SINTEF/IFE
- Center for Integrated Operations in the Petroleum Industry at NTNU
- Drilling and Well Centre for Improved Recovery (DrillWell) at IRIS
- Sustainable Arctic Marine and Coastal Technology (SAMCoT) at NTNU
- Centre for Autonomous Marine Operations and Systems (AMOS) at NTNU
- Centre for Arctic Gas Hydrate, Environment and Climate (CAGE) at UiT the Arctic University of Norway.
The SFI centres can receive funding for up to eight years, and the SFF centres can receive funding for up to ten years. In 2014, funding was allocated to a total of 17 new SFI centres with start-up in 2015. Some of these are also highly relevant in the context of research for the petroleum industry, such as:
- Subsea production and processing (SUBPRO) at NTNU
- Center for Offshore Mechatronics at the University of Agder
- Centre for Integrated Remote Sensing and Forecasting for Arctic Operations at UiT the Arctic University of Norway.
Read more about the SFI and SFF schemes on the Research Council website.
Several other petroleum-related research programmes also receive public funding. The PETROSAM 2 programme supports social science-related petroleum research. PROOFNY, a sub-programme under the Oceans and Coastal Areas Programme (HAVKYST), provides funding for research on long-term effects of discharges to the sea from petroleum-related activities.