Workshop on petroleum R&D cooperation between USA and Norway

1. Workshop on petroleum R&D cooperation between USA and Norway Erik Skaug Program directorDiv. for Innovation Research Council of Norway

2. The petroleum sector is important to Norway • Numbers 2003 • 20 per cent of Norway’s GDP • 42 per cent of the value of the country’s exports • Future challenges • increased oil recovery in exisiting fields • development of smaller fields • further exploration in general, but specifically also in environmentally sensitive areas in the North • efficiency and sustainability

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

4. MoU between DOE and OED Put petroleum R&D content into the MoU Scheduled meeting in the Norwegian Research & Technology Forum in the US and Canada The backgroundWhy are we here?

5. Exploit possibilities for creating cooperation, collaboration, or coordination of R&D within the petroleum sector Possibilities must be found within areas/themes which both countries prioritise Exploration(geophysics and geology) Enhanced oil recovery Challenges in artic areas The workshop form has limited attendance,is unformal and requires engagement from all present Why workshop?

6. The Research Council of Norway is: a government adviser identifying present and future needs for knowledge and research, and recommending national priorities a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The Research Council has an annual budget of some NOK 4,5 billion a co-ordinator initiating networks and promoting co-operation between research institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research

7. The Research Council of Norway Director General Staff International /EU Administration Communication Division forScience Division for StrategicPriorities Division for Innovation

8. Basic science Information and communication technologies Marine science Medicine and health Interface environment/energy Biotechnology, Materials, Petroleum New Instruments CoE and YIA RCN large programmes Focus areas of R&D in Norway

9. Large programmes • Addressing major Norwegian challenges and possibilities • To include long term basic R&D, and applied and industrial R&D into one thematic programme • Ten years perspective, at least 100 mill NOK’s in annual budgets • Seven large programmes have been established • Focus on international participation

10. Petroleumrelated R&D has not been been a major issue related to norwegian r&d investments Budget 2004 incl. Finance from the reseach fund: 4,5 Mrd kr (US$640 mill) Government funding of petroleum related R&D 250 200 150 MNOK 100 50 0 1995 2000 2004

11. PETROMAKS SCOPE • R&D cooperation with leading science and technology institutions and industry, shall lead to maintaining a strong technological home base • Basic research and technology development, with special attention to the supply and service industry • International cooperation

12. Targets for PETROMAKS 2004

13. 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

14. Environment Zero harmful discharge to sea 30%red. emissions to the atmosphere Increased recovery Stimulated recovery Cost effective drilling Deep water Real time reservoir management Deep water floating technology Small fields Long range transport of well stream Seabed and downhole processing Gas value chain Competitive gas production and offtake OG21: Focus Areas &Technology Targets Areas (TTA)

15. PETROMAKS • PETROMAKS 2004 • Concentrate on exploration and increased recovery. • The first call for proposals resulted in applications totalling a project volume of 900 mill. NOK. over the entire project period. • PETROMAKS 2005 • Expanding into other thematic areas to cover most of the upstream petroleum areas and also HSE. • As a guidance for this expansion PETROMAKS will aim at implementing as much as possible of the strategies and plans laid down by the government initiative OG21 (Oil and Gas in the 21th century). • PETROMAKS PARTICULAR ISSUE • Basic research and technology development, with special attention to the supply and service industry.

16. International R&D – cooperation • Between scientists • Between institutions • Between research programmes and directed internationalisation measures • Between countries • Europe the main route • North-America the strongest R&D-region

17. Foreign companies Norwegian companies R&D financing R&D financing Norwegian Universities/ R/D institutions Foreign Universities/ R/D institutions Partnership Innovation Knowledge Innovation Business

18. Thank you for listening! www.forskningsradet.no/petromaks/