Reduced Innovation Investment Concerns Industry Professionals -Survey

A survey conducted at the Offshore Europe conference in Aberdeen this week suggests oil and gas industry professionals are concerned over the lack of industry spending on research and development and the impact it may have on the sector's ability to grow. 74% of participants agreed that a lack of investment into R&D activity by oil and gas companies would have a negative impact on the sector, while 26% thought that there would be few or no consequences if companies fail to act.

The poll forms part of a survey being conducted by the Economist Intelligence Unit and commissioned by global independent technical advisor GL Noble Denton. It will contribute to a comprehensive report on the outlook for the sector, to be published in January 2012. The report will gather the opinions of oil and gas professionals and provide a complete view of the challenges the sector expects to face next year and beyond.

Pekka Paasivaara, Member of the GL Executive Board, said. "The cost of tighter regulation, higher taxation and operating in extreme environments has caused oil and gas companies to reduce their investment in research and development at a time when innovation is vital.

"This survey result outlines one of a number of issues the oil and gas sector faces, which will be explored in detail in the research that GL Noble Denton has commissioned the Economist Intelligence Unit to undertake. The research, to be published in January 2012, is expected to highlight the views of industry professionals on the balancing of risk and return, the impact of post-Macondo legislation, and the levels and locations of capital investment that companies expect to make in 2012."