There is no shortage of technology challenges in oil and gas E&P. New operating environments pose unique conditions that test the limits of today’s technology and challenge. Success is built on the ability to innovate. And the faster innovation can be accomplished, the better.

Innovation was the focus of a three-day conference held hosted by Schlumberger Information Solutions in London in May.

In the opening plenary session, Andrew Gould, chairman and CEO of Schlumberger, talked about the new oil and gas provinces emerging, identifying remote land operations, deeper water, and unconventionals as three significant growth areas. According to Gould, more than 60% of the gas produced by 2030 will come from fields put on production since 2008, and much of that production will come from unconventional resources.

The change in the E&P landscape will require considerable innovation.

Gould identified three things that he said will mark the future of oil and gas development: increasing reserves production in existing fields, exploring and recovering oil and gas from new areas, and finding technologies to produce unconventional resources. He believes the key will be “putting new technology in the hands of geoscientists and engineers faster.”

The shift toward more diverse and complex fields has led many operators, including national oil companies (NOCs), to look to service companies and other operating companies in an effort to find technology solutions more quickly.
According to Akbar Tajudin Abdul Wahab, senior general manager of petroleum, energy division, Petronas Carigali Sdn Bhd, technology partnerships based on performance and results and the ability to leverage technological expertise and operational know-how will be critical to his company’s success. “Petronas is constantly seeking innovative ways to increase production,” he said. “Success is based on the ability to successfully innovate.”

Khalid Al-Sumaiti, deputy managing director E&P development at Kuwait Oil Co., put the matter succinctly: “The low-risk oil has been produced. What’s left is the high-risk oil.”

According to Al-Sumaiti, research and technology will play a critical role for the company as it pursues its strategic goals for 2030.

The need for innovation is not confined to NOCs. According to Bettina Bachmann, vice president subsurface software development for Shell International E&P BV, there is a critical need for international oil companies to rapidly develop technology. And that need brings with it a serious challenge. “We constantly have to assess and re-assess that we’re developing the right technologies,” she said, explaining that technology is a “differentiating enhancer” and a “critical enabler” for developing challenging new fields.

The message was consistent. Innovation is critical to the industry’s success, and the most successful innovation is collaborative.

While it is exciting to see new technologies move forward and innovative ideas take shape, we are grounded as an industry in the realities of oil and gas production and realize that even with the most advanced technologies in play, it is still a seriously challenging business. The recent explosion on the Deepwater Horizon reminded us all that this is so.
The Deepwater Horizon incident was a tragedy in many respects, but most significantly because 11 lives were lost — nine employees from Transocean and two from M-I Swaco.

On behalf of Hart, I extend condolences to the families, friends, and coworkers of those who perished.
For readers who are interested in information as cleanup operations progress, E&P has devoted a segment of EPmag.com to reporting developments. It can be viewed at https://www.epmag.com/Offshore/Deepwater-Horizon-Incident/.

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