Executive Summary
OG21 was established by the Ministry of Petroleum and Energy (MPE) in 2001. The Board of OG21 is responsible for developing a National Technology Strategy for the Norwegian petroleum industry, and also to serve as an advisor to the authorities and the industry at large. The current OG21 strategy is perceived to have successfully aligned the various stakeholders around a common direction and ambition regarding technology challenges as well as technology opportunities. The strategy has also resulted in coordinated national efforts on research, development, demonstration and commercialisation.
However the strategic challenges are now evolving and a revision is needed. The main reasons are:
· The focus on Climate Change from authorities, the industry and society at large has intensified the drive to find, develop and produce oil and gas resources in cleaner and more energy efficient manner.
· The mature Norwegian Continental Shelf requires acceleration of efforts to find, develop and produce oil and gas resources to sustain societal value creation.
· The Norwegian Sea and the Barents Sea now appear more than before, as an area with significant potential, although with increasing upside and uncertainty in the northern areas.
The key strategic goals are:
· Value creation through production and reserve replacement: Reserve growth of 5 bln boe before 2015.
· Energy efficienc and cleaner production: To maintain the Norwegian position as the oil and gas province with the highest energy efficiency, the lowest level of emissions to air, and lowest discharge to sea per produced unit.
· Value creation through increased export of technology: Continue the current growth path with annual oil and gas technology sales of NOK 120 bln by 2012.
· Value creation through employment and competence development: Sustain and further develop Norway’s position as a leading and competitive oil and gas technology cluster.
Key means for implementation of the 2010 OG21 strategy are:
· To arrange forums and meeting places to create awareness and common understanding around challenges and opportunities.
· To establish and develop Technology Target Areas (TTA) work groups engaging a broader set of experts, within:
- Energy efficient and environmentally sustainable technologies;
- Exploration and increased recovery;
- Cost-efficient drilling and intervention;
- Future production, processing and transportation.
· OG21 strategy as a framework and source of input to:
- Government funding related to R&D
- Specific governmental funded R&D programmes like Petromaks and Demo2000
- Companies, education institutions and research bodies targeting the oil and gas industry
- Companies, education institutions and research bodies targeting renewable energies, CCS and potential spin-offs to other industries
The situation on the NCS in 2010 has radically changed compared to 2000. Historically, larger developments have carried significant technology development and deployment responsibilities. With the current portfolio of smaller discoveries and developments, capital for technology advancements must be supported by other means. In order to implement the strategy, OG21 recommends that government funding of at least NOK 600-800 mln/year is allocated to oil and gas R&D. In addition, clear signals must be sent to industry that Norway is an attractive place to execute R&D. This calls for incentives that allow equipment supplier and contractor companies to undertake research, development, prototyping and deployment tests of new technologies at an attractive risk level.
The OG21 strategy should guide the governmental funding and be used as input to technology strategies in the oil & gas industry.
