Andy LeonardOil and Gas UK

Digital Technology and the UK Oil and Gas

Technology Strategy

Key industry metrics

CAPITAL

DEVELOPMENT COST OPERATING COST

PRODUCTION FORECAST

A track record of innovation

http://engpetroleo.webnode.com.br/perfura

caodirecional/

http://cseg.ca/student/careers/petro3.htm

http://www.cgg.com/default.aspx?cid=2942

http://www.sec.gov/Archives/edgar/data/87347/000119312512380454/d

406443dex99.htm

Technology development - common issues

• Lack of coherent industry prioritisation and leadership

• The rush to be second

• Identify, connect need, opportunity and solution

• The development cost burden v’s innovators’ balance

sheets

• Effective and enduring sponsorship from end user

• Collaboration on field trials and

uptake

• PILOT Technology Work Group formed 2012:

– Enhance UKCS technology development and deployment

– Establish North Sea Technology Strategy

• HMG Industrial Strategy 1Q 2013 highlighted need for

increased technology focus

• Wood Review includes consistent Technology Strategy of 5

critical technology challenges

• Technology transformation is essential – requiring:

– Leadership (Technology Leadership Board)

– Focused Delivery (Technology Themes)

– Support Organisations (OGIC, ITF, NERC, RCUK)

– Funding (Various parties including Oil & Gas UK)

How did we get here

Oil and Gas Technology Strategy

• To ensure that the UKCS:

– Has a sustainable, efficient ‘technology ecosystem’ ( innovation –

deployment)

– Delivers the necessary major technology themes

• With the intent to:

– Ensure the production life of the North Sea beyond 2050

– Deliver a further 20 bnboe of production from the North Sea

– Establishing the UK as a global supplier of distinctive mature basin

capability.

• With these specific targets:

– Increase exploration success rates to >35%

– Increase average oil recovery factor to >50%

– Increase production efficiency to >80%

TLB Members

Paul Warwick

(chair)

Talisman John Pearson AMEC

Glen Cayley Shell Crawford

Anderson

Baker Hughes

Colette Cohen Centrica Charles Tavner Magma

Phillipe Guys Total Paul White GE

Neil McCulloch Enquest Oonagh

Werngren

Oil & Gas UK

Simon Toole DECC Stuart Edwards BIS

Prof Iain Gillespie Research

Councils

Prof John

Underhill

Universities

Rob Saunders Innovate UK Lynn Forsyth Scottish Govt.

Paddy O’Brien ITF Ian Phillips OGIC

TLB – drive and direction

FIX THE SYSTEM

• Connect and get the

right support

organisations in place

• Direct the funds

DELIVERY FOCUS

• Select & lead themes

• At scale impact

• Disruptive

• Innovative

• Access funding

Learnings from other sectors and OG21 Norway

Focused delivery – Priorities

Mature

Field

UKCS

Technology

Leadership

Board

EOR

IOR

Production efficiency

Small PoolsExploration -

Imaging &

evaluation

Well P&A

DecommissioningExplorationField

Development

Corrosion &

inspection

Drilling

technology

Digital Technology

FIX THE SYSTEM

• Connection & capability

DELIVERY FOCUS

• Focussed themes

To remain a hub:

• Global connection

• Analysis capability

• Skill and expertise

Digital oil field

Equipment Health,

reservoirs & fluid flow

• Monitoring

• Analysis

• Prediction

• Management & Event

avoidance

Efficient working

Logistics & ‘as built’

• Tracking

• Maintenance

What is trending?

More:

- Sensors

- Data (extent and volume)

- Wireless offshore

- Real-time

- Remote activities

- Robotics & autonomous systems

- Digitally enabled working

- Satellite observations