Oil

1
Oil Gas in the 21st Century

• The role and status of OG21
• Presentation at the Force seminar New Strategies
  in Petroleum Research
• 13. May 2004
• Per Gerhard Grini

www.OG21.org
2
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
3
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)
4
Development perspectives for the Norwegian
Continental Shelf
300
We can have a perspective for the Norwegian
Continental Shelf of 50 years of oil production
and 100 years with gas.
250
200
Annual production of oil and gas (mil. Sm3 o.e.)
Long-term scenario
150
100
Closing the gap must to a large extent rely
on development of new knowledge and technology
50
Decline scenario
0
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050
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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
• Exports
• Increase 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 fields
• 80 for gas fields

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OG21 Focus Areas Technology Targets Areas (TTA)

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

Environment

• Stimulated recovery
• Cost effective drilling

Increased recovery

• Real time reservoir management
• Deep water floating technology

Deep water

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

Small fields
Gas value chain

• Competitive gas production and
• offtake

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Implementation of the OG21 Technology Strategy
Exploration and Reservoir Characterisation will
be handled through FORCE (Arild Haugen)
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OG21 Implementation of the Technology Strategy

• The implementation of the Technology Strategy
  started at the end 2002 andhas continued through
  2003. The different phases in the process have
  been
• Nomination of seven oil companies as Lead Parties
  and managers of the nine TTA
• Participation of the oil and gas cluster
  (supplier industry, universities, RD institutes,
  etc.).
• Each TTA group has performed gap analysis and
  given recommendations on the most important
  activities and focus areas for the future.
• The TTA groups are now working on initiating the
  implementation of the strategy.

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OG21 Responsibilities and assignments for Lead
Party (LP)

• The Lead Party (LP) is the TTA-pusher on
  behalf of the OG cluster.
• The Lead Party is the catalyst of technologic and
  scientific drive in the TTA process, together
  with the rest of the OG-cluster.
• LP shall lead the feasibility project which
  includes - as is analysis and a state of the
  art description for a given TTA- a gap analysis
  report- evaluate the need for additional
  detailing - provide a road map for the TTA.
• LP shall recommend future activities which
  include market evaluation, promotion of the new
  technology to potential users, prepare project
  plans.

10
Technology is the key to realise new and
demanding projects
Statfjord/GullfaksIOR
New technology
Åsgard
Lufeng
Norne
Troll
1999
Statfjordsatellites
1998
Sleipner A/ Sleipner West
1997
1996
Gullfaks
Statpipe
1994
1993
1986
Time
1985
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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 systems
• Develop cost effective subsea separation systems
• Long Range Wellstream Transport
• Develop improved prediction tools
• Develop wet gas compression systems
• Develop environmentally friendly flow improvers
• Deep Water Floating Technology
• Develop harsh environment riser systems
• Qualify 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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OG21New activities and funding
Public Funding
OG21 Technology strategy
Governmental agencies
Lead Parties Technology Target Areas(TTA)
Research Council Norway Demo2000
Industrial Funding
TTA White Papers Gap Analysis
OG companies
Recommended activities
JIPs
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Development perspectives for value creation from
the petroleum industry
Coordinated National RD efforts
Annual Value Creation