Apr. 2002 Vol. 223 No. 4  European Technology Round Up
United Kingdom
Oil industry commits to North Sea technology

A total £8 million was committed by oil and gas companies in 2001 toward development of new technologies vital to the future of the North Sea. The funding has been secured through the oil and gas Industry Technology Facilitator (ITF), which promotes development of innovative technology through joint industry projects (JIPs). Last year, approval was given for 30 projects, including two major collaborative programs, which will develop advanced technologies to improve the search for, and recovery of, hydrocarbons on the increasingly challenging UK Continental Shelf. Similar funding is envisaged for new projects in 2002.

"Technology will be key to unlocking Britain’s estimated remaining reserves of 26 to 34 Bboe," says ITF’s Managing Director, David Ellix. "The technologies being developed for the UK today should lead to more successful exploration, maximum reserve recovery and improved competitiveness in the North Sea. But they also have potential for worldwide application."

ITF received over 250 proposals last year from leading researchers around the world seeking funding for ideas and technology, in response to its call for proposals driven by the business needs of UK operating companies. Following rigorous refinement and review, the most promising were recommended to the oil companies for their support.

Two key current projects are the Structurally Complex Reservoirs Program and the Seismic Reservoir Characterization Program. The first was established to promote technology advances in areas of detection and prediction of geological faults and fractures, and their properties. ITF’s member companies need to understand / model structural complexities of their reservoirs. Improvements in these areas will yield real business benefits in terms of optimizing reserves, well targeting, eliminating development surprises and improving exploration success.

The second program was established to promote technology advances in areas of seismic resolution and rapid prediction of reservoir performance from seismic data. Benefits will include better well placement, better definition of reserves and where they are to be found, and improved day-to-day well / reservoir management.

The two programs, each lasting three years, comprise nine interlinked projects led by major UK and overseas universities, with active participation from the small- and medium-sized enterprise (SME) sector. They will be funded by a consortium of 10 oil companies and the UK DOI.

Other projects launched last year include: a novel adaptation of a pipeline cleaning pig to detect corrosion; a downhole electric cutting tool; two new developments addressing produced water cleanup; and alternatives to umbilicals for subsea power supply.

This year, ITF will continue to seek proposals in subsurface, wells and facilities areas. The focus remains on technologies to underpin the vision of PILOT – the government / industry initiative – to maintain UKCS competitiveness, maximize economic recovery of the nation’s oil / gas reserves, and preserve jobs. Key topics will include long subsea tiebacks, emissions control; and brownfield recovery and reservoir management.

As part of the 2002 Thematic approach, ITF will be looking at technologies which could meet business needs, but which are stalled at the first application or field-trial stage. This more difficult stage in the technology development process will require even greater levels of collaboration involving all industry sectors. ITF hopes to play a major part in facilitating the dialogue and understanding needed to make this work.

ITF is a not-for-profit company, established as an initiative of the Oil and Gas Industry Task Force (OGITF), now PILOT. Its delivery vehicle is JIPs, in which technology development companies are supported on a collaborative basis by a group of end-user companies, which expect to benefit from applications. ITF is funded by subscription by 15 member oil companies, and was supported in its first year by the DTI. More details are available at www.oil-itf.com.

PILOT was established in January 2000 to ensure that OGITF deliverables and vision are achieved. It is made up of 23 key government representatives and recognized leaders from industry, and meets quarterly. The strategy is for ³0 years of industry / government cooperation aimed at achieving the following vision: 1) maintain oil / gas production at 3 MMboepd; 2) sustain investment at £3 B/year; 3) prolong UK self sufficiency in oil / gas; 4) preserve 100,000 more jobs; and 5) secure a 50% increase in exports by 2005.