TCI 2013 Smart Specialization: How New Technologies Drive New Opportunities for Cluster Development

Smart Specialization: How New Technologies Drive New Opportunities for Cluster DevelopmentElizabeth Redman

Breakout Session: Clusters and smart specialisation strategies: design and implementation5 September 2013

Presented by:

Elizabeth Redman

Senior Consultant

IHS Economics & Country Risk

Smart Specialization: How New Technologies Drive New

Opportunities for Cluster Development

An Example from the US Unconventionals Industry

Copyright © 2011 IHS Inc. All Rights Reserved.

Geology of Unconventional Gas


Source: Matthew Ganser, Carbon Lighthouse, August 2013

1,000,000 + Wells Hydraulically Fractured



Technology Has Changed Direction


Horizontal Fracturing is On the Rise



US (Lower 48) Natural Gas Production by Type: 2000-2011



Impact of Unconventional Fuels on the United States

9

Producing States Non-Producing States

Top 10 Other Top 10 Other

Extensive supply chain will spread economic impacts beyond producing states…


1) Transforming import/ export dynamics

10

NOTE: Net natural gas imports equals total natural gas imports minus total natural gas exports.Source: EIA

Copyright © 2011 IHS Inc. All Rights Reserved. 11

0

50

100

150

200

250

300

350

400

2012 2015 2020 2025 2030 2035

Unconventional Oil and Gas Capital Expenditures(billions of 2012 dollars)

Unconventional Gas

Unconventional Oil

2) Driving New Investment


3) Creating New Industries

in Producing States

Source: Kansas Geological Survey, Public Information Circular (PIC) 32


"Come fall in Love with Louisiana all over again."

13

Image courtesy of Sasol


Oil & Gas Extraction210,758

Profes-sional,

Scientific, and Tech-nical Ser-

vices102,294

Food Services & Drink-

ing Places

157,807

Machinery Manufactur-

ing115,730

Real Estate107,660

Whole-salers

102,294

Others2,188,625

4) Creating New Industries

in Non-Producing States

Employment Contribution in 2020, US


5) New Innovations & Start-Ups

15

new company which brings brackish water to fracking companies working in arid areas where water is expensive

“manufacturing water”: Treat produced water to reuse standards using a ceramic durable membrane during the microfiltration phase of wastewater treatment.

Using geospatial tools to cite projects

“mining water” to separate commodities of value, e.g. Lithium, calcium carbonate, etc., and restore cleaner water to CO.



© Andy Cross, The Denver Post

EcoVapor Recovery


-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012 2015 2020 2025 2030 2035

Employment Contributions of Unconventional Oil and Gas Activity

(thousands of workers)

InducedIndirect

Direct

Smart Specialization Working


Additional Long Term Benefits

19

0

50

100

150

200

250

300

350

400

450

500

2012 2015 2020 2025 2030 2035

Value Added Contributions to GDP of Unconventional Oil and Gas Activity

(billions of 2012 dollars)

InducedIndirect

Direct


What opportunities does new

technology enable for my region?


Thank you

• For more information on past IHS work see:

21

America’s New Energy Future Volumes I & II http://www.ihs.com/info/ecc/a/americas-new-energy-future.aspx

http://www.ihs.com/info/ecc/a/americas-new-energy-future-report-vol-2.aspx?ocid=anefvol2-21350:consulting:dm:0001




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TCI 2013 Smart Specialization: How New Technologies Drive New Opportunities for Cluster Development