Lloyd's Register Energy increases efforts to engage the petroleum industry to offer solutions in dealing with the physical and technological challenges facing the sector.
Lloyd’s Register Energy, the energy arm of Lloyd’s Register Group Services Ltd., has been active in recent months in engaging the oil and gas industry which continues with efforts to explore, develop and produce petroleum resources in an increasing technologically challenging, operating environment.
With the availability of “easy oil” mostly over, oil and gas companies have to find and extract hydrocarbons in more complex technical and physically inaccessible environments to meet rising energy consumption. Demand for energy worldwide is projected to increase 41 percent between 2012 and 2035, when it is estimated to reach nearly 18 billion tons of oil equivalent, according to BP Energy Outlook 2015.
The search for petroleum resources in more complex environments has partially contributed to a higher capital expenditure (capex) for exploration and production (E&P) in recent years. The industry’s E&P capex) is projected to breach $700 billion this year to $723 billion, or 6.1 percent more than the previous year, Barclay Banks highlighted in its Dec. 9, 2013 equity research report.
The industry is already aware of the huge challenges it faces to unlock hydrocarbon resources in areas like enhanced oil recovery (EOR) from existing fields and deepwater production.
For instance, Malaysia’s national oil company (NOC) Petroliam Nasional Berhad (Petronas) has budgeted $337.5 million (MYR 1.1 billion) until 2018 for its E&P Technology Centre to develop innovate and applicable technology to rejuvenate mature oil fields, increasing production in maturing oil fields, and design ways to better monetize the country’s hydrocarbon resources, Wee Yiaw Hin, Petronas executive vice president for E&P told attendees at the Offshore Technology Conference (OTC) Asia in Kuala Lumpur, Malaysia last month.
Meanwhile, independent oil companies (IOC) like Royal Dutch Shell plc believes that tapping on deepwater resources will increasingly be key to the world’s energy future.
“The pace of deepwater technology developments needs to keep up with future energy demand … That’s why we see a major opportunity in people collaborating across boundaries, bringing together scientific disciplines, companies, and even entirely different industries,” Gerald Schotman, Shell’s executive vice president of innovation and research & development and chief technology officer commented at OTC Asia.
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