PETROMAKS - a new large Petroleum program managed by the Research Council of Norway

1. PETROMAKS - a new large Petroleum program managed by the Research Council of Norway Siri Helle FriedemannDiv. for Innovation Research Council of Norway FresCo Seminar 13. – 14. May 2004

2. Presentation outline: • The Research Council of Norway • Large programmes in general • Importance of the petroleum sector • Funding of petroleum research • Petromaks

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

4. 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

5. Basic science Information and communication technologies Marin 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

6. 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

7. Large programmes • PETROMAKS (Petroleum) 2004: 55 MNOK • (Excluding contributions from running programs) • FUGE (Functional Genomics) 2004: 155 MNOK • NANOMAT (Nanotechnology) 2004: 76 MNOK • NORKLIMA (Climate) 2004: 82 MNOK • HAVBRUK (Aquaculture) 2004: 64 MNOK • VERDIKT (ICT) 2004: 120 MNOK • RENERGI (Clean energy) 2004: 149 MNOK

8. 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

9. The petroleum sector is important to Norway • Strategic issue • The Norwegian government has relied very much on the R&D performed by the oil companies and the supply industry • Introduction of PETROMAKS gives a signal of stronger governmental engagement in petroleum R&D

10. 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

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

12. Financing of petroleum related R&D • Sources 5 ministries • Petroleum and Energy • Trade and Industry • Environment • Education and Research • Labor and Government Administration • Budget 2004 • 230 mill NOK (33.3 US$) • Proposed 2005 • 480 mill NOK (70 mill US$)

13. Petroleum related R&D in RCN 2004 • Basic R&D (100 mill NOK) • Strategic university programs (SUP) • Strategic institute programs (SIP) • Petromaks • Centres of excellence • Basic funding of R&D institutions • Applied/user driven RD&D (130 mill NOK) • Petromaks • Petropol • Effets of discharges to sea • DEMO 2000 (30 MNOK)

14. The Research Council of Norway User-driven oil and gas research • OG - teknologi • Petromaks • Approx. MNOK 70 Strategic and basic petroleum research • Basic funding • Petroforsk • SIP/SUP • CoE • Approx. MNOK 100 Qualifying new technology through pilot demonstrations • Demo 2000 • MNOK 30 National funding of oil and gas research in 2004 Including MNOK 28 from the The Fund for Research and Innovation Ministries: Ministry of Petroleum and Energy, Ministry of Trade and Industry, Ministry of the Environment, Ministry of Education and Research, Ministry of Labour and Government Administration. In addition: Health, safety and the environment (HSE) MNOK 15 from the Ministry of Labor and Government Administration. Social science research on petroleum-related issues, approx. MNOK 6. Effects of discharges to seaapprox. MNOK 8 from the Ministry of Petroleum and Energy and the Ministry of the Environment.

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 SCOPE • Basic research and technology development, with special attention to the supply and service industry.

16. Targets for PETROMAKS 2004

18. Petromaks applications • 180 000 • 160 000 • 140 000 • 120 000 • 100 000 • FP • KNOK • UIP • 80 000 • KMB • 60 000 • 40 000 • 20 000 • - • 2004 • 2005 • 2006 • 2007 • 2008

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