Striking a Balance Index

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1.3 Developing new Technologies Progress to date: achievements and difficulties encountered Technological development and innovation Technology development has been a key factor in continually uprating reserve figures and in enabling smaller fields to become economic (see case study on p.47 in 4.1). In addition, technology developed to meet challenging North Sea operating conditions has been successfully transferred to other oil and gas provinces worldwide. Sustainable Development Action Plan Stimulating technological innovation through brokering demand and supply We will support the work of the Industry Technology Facilitator (ITF) in stimulating technological development through brokerage between industry, technology suppliers, research organisations and funders. This work will run alongside R&D initiatives by individual operators and contractors. Stimulating technological innovation through focusing on opportunity areas We are supporting (through individual company initiatives and through ITF) stimulation of technological innovation to benefit mature fields, which need technology breakthroughs to enhance recovery and prolong field life, small satellite fields, where reducing uncertainty could trigger important development decisions, and difficult larger finds that cannot be developed because the technology is not yet available. The focus will be on: Facilities (downhole and subsea processing, subsea tiebacks, flow assurance, de-bottlenecking, FPSOs, associated gas management, facilities automation and decommissioning) Subsurface (basin evaluation, understanding of faults and fractures, reservoir modelling, smart wells, reservoir management, water shut-off, sub basalt/salt imaging) Wells (under-balanced drilling, coiled tubing, rotary drilling through tubing, slender wells, mono diameter wells, finder wells, multi laterals, super-smart wells, well intervention vessels, well decommissioning). Stimulating technological innovation through venture capital support A group of UKOOA member companies has set up the NOVA Fund, to invest venture capital in businesses developing promising new technology. Decommissioning: developing new technologies UK and Norwegian operators approaching possible early decommissioning have set up The Early Decommissioning Synergy Group (TEDS), which will sponsor development of technologies to reduce decommissioning costs, increase safety and reduce environmental impact. The group is examining, for example, single lift technology, underwater cutting and improved methods of removing and returning platform modules to shore. TEDS will also provide focus and efficiency where operators need to consult the wider community before submitting decommissioning plans to the authorities. For the southern North Sea specifically, there is an active decommissioning partnership in Great Yarmouth working with the University of East Anglia [www.eeegr.com]. (See also 1.1 and 4.4 for other actions relating to decommissioning) Case Study One Technology development enables production increase The second phase of a North Sea development has been made possible by gas handling hydraulic submersible pumps specially engineered for the project. This is the first commercial application in an oilfield development of a pump capable of handling fluids containing large quantities of free gas. This multiphase hydraulic submersible pump was successfully developed by the manufacturer in conjunction with the field operator, the DTI and Scottish Enterprise. The project began in the mid-1990s, resulting in a prototype pump that went on to be tested in the operator's own research facilities and offshore. Its successful performance in a live production environment gave the operator sufficient confidence to plan for the field's second phase using the pump as the primary artificial lift method. The first pump was recently installed in the field and helped achieve first oil from the second phase development a few weeks later. Case Study Two Some effects of oil and gas technological innovation Technical innovation has been applied by the upstream industry to improve productivity, while yielding environmental benefits. Current exploration technology, for example, has boosted industry success rates in pinpointing new reserves. The results are fewer dry holes, reduced water volumes and lower environmental impact. Similarly, continuing improvement in recovery efficiency of each well translates into fewer wells to produce the same amount of oil or gas. Finally, smaller, lighter drilling rigs and advances in extended reach drilling reduce the impact of oil and gas operations. Advanced technologies pioneered by the oil and gas industry are being widely and beneficially applied elsewhere. For example, geological and geophysical technology provides information on the characteristics of the earth's crust enabling better prediction and evaluation of earthquakes and other geological hazards. Reservoir simulation and performance monitoring technology is being used to predict groundwater flow patterns. The same principles used to increase the recovery of oil - thermal and microbial processes - are now applied to clean up chemical spills. [Information selected from US DoE web site]