UAE’s oil and gas companies are prepared to invest heavily in technology and innovation, Lloyd’s Register Energy consultancy has found.
63% of those interviewed said that national oil companies (NOCs) will play a more prominent role in technology and innovation and increase spending on research and development.
According to Lioyd’s Register five of the world’s largest NOCs have increased their research budgets to $5.3bn, compared to $4.4bn for International Oil Companies (IOCs).
Participants in the survey were from 17 different countries and included BP, GE Oil & Gas, Maersk Drilling, Qatar Petroleum, Royal Dutch Shell and Saudi Aramco.
60% of the UAE participants felt that technological advances will push back a peak oil point for the future.
The survey also suggests that national oil and gas companies buy more technology to ensure safety for their employees, cut cost for the company and gain better access to potential reserves.
The Abu Dhabi National Oil Co. (ADNOC) is a good example for a NOC with large innovation and technology spending.
Over the past five years ADNOC has invested heavily in research and development in producing oil from complex reservoirs.
The Abu Dhabi major aims to reach a 70% recovery rate for its reservoirs and double the global average by using enhanced oil recovery (EOR) techniques.
EOR is also one of the primary near-term investment drivers for companies in the Emirates.
In August this year Saudi Aramco announced plans for tripling its research and development spending, while also increasing funding by fivefold.
“Lloyd’s Register Energy believes the results of this survey will help to guide future energy policy in the region and the development of industry growth plans,” said John Wishart, president of Lloyd’s Register Energy.
“With rising energy costs, the oil and gas sector will benefit from a clearer understanding of the potential innovation scenarios to meet future energy demands.”
“Initiatives that nurture technical innovation must be central to any organisation’s strategy for sustainable growth and leadership.” added Wishart.
For more on this story, please visit www.lr.org
