Oil & Gas in the 21st Century

The role and status of OG21Presentation at the Force seminar “New Strategies in Petroleum Research”

13. May 2004Per Gerhard Grini

www.OG21.org

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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 industry’s competitive advantage in a global

market by developing new and attractive technology products and

systems

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OG21 Board 2003-2005

Terje Overvik, Statoil (leader)

Alfred Nordgård, Norske Shell

Jens Hagen, Norsk Hydro

Manfred Budny, Esso Norge

Rune Strømquist, Demo2000 (ABB)

Jarl Arve Kosberg, AkerKværner

Åsmund Bøe, Schlumberger

Ann Christin Gjerdseth, FMC Kongsberg

May Britt Myhr, SINTEF Petroleum

May Britt Hägg, NTNU

Karin Refsnes, Norges Forskningsråd

Bente Nyland, OD

Jostein Dahl-Karlsen, OED (observer)

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Development perspectives for the Norwegian Continental Shelf

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2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050

An

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Decline scenario

Long-term scenario

Closing the gap must to a large extent rely ondevelopment of new knowledge and technology

”We can have a perspective for the Norwegian Continental Shelf of 50 years of oil production and 100 years with gas.”

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OG21 target figures

Faster, more cost-effective exploration Reduce the average lead time from

licence award to discovery to 3 years.

Faster, more cost-effective development Reduce the average lead time from

discovery to production to 4 years. Reduce the average CAPEX for new

fields on the NCS to USD 3/boe.

Reduced operating expenses Reduce the average total OPEX on the

NCS to USD 3/boe.

The environment Reduce CO2 emissions on the NCS by

30 % compared with today's level Zero harmful discharge to sea.

Gas value chain Enhance value creation by 50%

through additional/new export capacity and more cost-effective technology

ExportsIncrease exports of Norwegian

technology by NOK 50 billion, equivalent to sales of NOK 70 to 80 billion in 2010.

Enhanced recovery 60% for large oil fields80% for gas fields

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OG21: Focus Areas &Technology Targets Areas (TTA)

Environment

Increased recovery

Deep water

Small fields

Gas value chain

•Zero harmful discharge to sea• 30%red. emissions to the atmosphere

•Stimulated recovery• Cost effective drilling

•Real time reservoir management• Deep water floating technology

•Long range transport of well stream• Seabed and downhole processing

•Competitive gas production and

offtake

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Implementation of the OG21 Technology Strategy

Technology Target Areas (TTA) Lead Party

Zero harmful discharge to sea ConocoPhillips, (Ole Lindefjeld)

30% Reduced Emissions to Air Shell, (Helge Skjæveland)

Stimulated Recovery Statoil (Håkon Rueslåtten)

Cost Effective Drilling ExxonMobil (Stu Keller)

Real Time Reservoir Management BP (Morten Heir)

Deep Water Floating Technology Norsk Hydro (Thore Thuestad)

Long Range Wellstream Transport Statoil (Leif Aaberge)

Seabed/Downhole Processing Total (Oddgeir Johansen)

Competitive Gas Production and Offtake Shell (Geir Vollsæter)

Exploration and Reservoir Characterisation

will be handled through FORCE (Arild Haugen)

New technology

Time

Technology is the key to realise new and demanding projects

1985

Statfjord/Gullfaks

IOR

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Åsgard

Lufeng

NorneTroll

Statfjordsatellites

Sleipner A/Sleipner

West

GullfaksStatpipe

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Recommendations from the OG21 TTA groups on new activities (1)

30% Reduced Emissions to Air: Develop technology that facilitates the use of

CO2 for EOR Fuel cells/ membrane technology for efficient

power generation

Zero harmful discharge to sea: Develop improved separation systems and

water blocking techniques Improve produced water cleaning

technology

Competitive Gas Production and Offtake: Develop technology that facilitates the use of

CO2 for EOR Develop compact technology for offshore

LNG production www.og21.org

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Recommendations from the OG21 TTA groups on new activities (2)

Seabed/ Downhole Processing:Develop wet gas compression systemsDevelop cost effective subsea separation systems

Long Range Wellstream Transport:Develop improved prediction toolsDevelop wet gas compression systemsDevelop environmentally friendly flow improvers

Deep Water Floating Technology:Develop harsh environment riser systemsQualify polyester mooring systems for NCS

Courtesy Aker Kvaerner

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Recommendations from the OG21 TTA groups on new activities (3)

Stimulated Recovery:Develop monitoring technologies to

identify sweep efficiency.Improved modelling capabilities

regarding CO2 for EOR.

Real Time Reservoir Management:Develop down hole sensors with

improved quality and reliability.Develop systems for integration of

data form different sources.

Cost Effective Drilling:Develop technology for low-cost

exploration wells.Develop new extended-reach drilling

technology.

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Implementation of the OG21 strategy

The OG21 strategy shall to a large extent reflect the technology strategies of the individual companies.

TTA groups were challenged to focus efforts through Joint industry projects:The TTA groups were challenged to outline the 3 most important projects/activities to

be performed within the TTA.View of group members.Proposals including possible participants, funding model, including relevant public

funding, milestones and deliverables.

OG21 Board evaluation of proposals, For most projects the Lead party company were asked to organize the JIPs to have the projects started.

Optimistic view: up to 10 of the proposed JIPs will be started

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OG21:New activities and funding

OG21 Technology strategy

JIPs

Public Funding

TTA White PapersGap Analysis

Lead PartiesTechnology Target Areas(TTA)

Recommended activities

Industrial Funding

Governmental agencies

Research Council NorwayDemo2000

O&G companies

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Development perspectives for value creation from the petroleum industry

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Export of technology

Added value from gas

New areas

Increased recoveryFields in production

2002 2010

Annual Value Creation

Coordinated

National

R&D efforts