FresCo Seminar13. – 14. May 2004

PETROMAKS - a new large Petroleum program managed by the Research Council of Norway

Siri Helle FriedemannDiv. for Innovation Research Council of Norway

Presentation outline:

The Research Council of Norway

Large programmes in general

Importance of the petroleum sector

Funding of petroleum research

Petromaks

The Research Council of Norway

Administration Communication

Division forScience

Division for Innovation

Division for StrategicPriorities

Director General Staff International /EU

The Research Council of Norway is:

a government adviseridentifying present and future needs for knowledge and

research, and recommending national priorities

a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The Research Council has an annual budget of some NOK 4,5 billion

a co-ordinatorinitiating networks and promoting co-operation between research

institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research

Focus areas of R&D in Norway

Basic scienceInformation and communication technologiesMarin scienceMedicine and healthInterface environment/energy

Biotechnology, Materials, Petroleum

New Instruments CoE and YIARCN large programmes

Large programmes

addressing major Norwegian challenges and possibilities

to include long term basic R&D, and applied and industrial R&D into one thematic programme

ten years perspective, at least 100 mill NOK’s in annual budgets

seven large programmes have been established

Large programmes

PETROMAKS (Petroleum) 2004: 55 MNOK (Excluding contributions from running programs)

FUGE (Functional Genomics) 2004: 155 MNOKNANOMAT (Nanotechnology) 2004: 76 MNOKNORKLIMA (Climate) 2004: 82 MNOKHAVBRUK (Aquaculture) 2004: 64 MNOKVERDIKT (ICT) 2004: 120 MNOKRENERGI (Clean energy) 2004: 149 MNOK

The petroleum sector is important to Norway

Numbers 2003 20 per cent of Norway’s GDP 42 per cent of the value of the country’s

exportsFuture challenges

increased oil recovery in exisiting fields development of smaller fields further exploration in general, but

specifically also in environmentally sensitive areas in the North

efficiency and sustainability

The petroleum sector is important to Norway

Strategic issue The Norwegian government has relied

very much on the R&D performed by the oil companies and the supply industry

Introduction of PETROMAKS gives a signal of stronger governmental engagement in petroleum R&D

0

50

100

150

200

250

300

2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050

An

nua

l pro

duct

ion

of o

il a

nd g

as (

mil.

Sm

3 o

.e.)

Decline scenario

Long-term scenario

Closing the gap must to a large extent rely on development of new knowledge and technology

”We can have a perspective for the Norwegian Continental Shelf of 50 years of oil production and 100 years with gas.”

Development perspectives for the Norwegian Continental Shelf

KRD1 %

SD2 %

NHD20 %

OED7 %

FID6 %

LD8 %

MD5 %

Fondet14 %

HD3 %

UD2 %

UFD29 %

Øvrige3 %

Petroleumrelated R&D is not a major issue related to norwegian r&d investments

0

50

100

150

200

250

1995 2000 2004

MN

OK

Budget 2004 incl. Finance from the reseach fund: 4,4 Mrd kr (US$640 mill)

Government funding of petroleum related R&D

Financing of petroleum related R&D

Sources 5 ministries Petroleum and Energy Trade and Industry Environment Education and Research Labor and Government Administration

Budget 2004 230 mill NOK (33.3 US$)

Proposed 2005 480 mill NOK (70 mill US$)

Petroleum related R&D in RCN 2004Basic R&D (100 mill NOK)

Strategic university programs (SUP) Strategic institute programs (SIP) Petromaks Centres of excellence Basic funding of R&D institutions

Applied/user driven RD&D (130 mill NOK) Petromaks Petropol Effets of discharges to sea DEMO 2000 (30 MNOK)

National funding of oil and gas research in 2004Including MNOK 28 from the

The Fund for Research and Innovation

Ministries: Ministry of Petroleum and Energy, Ministry of Trade and Industry, Ministry of the Environment, Ministry of Education and Research, Ministry of Labour and Government Administration.

The Research Council of Norway

Strategic and basic petroleum research

Basic fundingPetroforskSIP/SUPCoEApprox. MNOK 100

Qualifying new technology through pilot demonstrations

•Demo 2000

MNOK 30

User-driven oil and gas research

•OG - teknologi•Petromaks

Approx. MNOK 70

In addition:

Health, safety and the environment (HSE) MNOK 15 from the Ministry of Labor and Government Administration. Social science research on petroleum-related issues, approx. MNOK 6.Effects of discharges to sea approx. MNOK 8 from the Ministry of Petroleum and Energy and the Ministry of the Environment.

PETROMAKS 2004 Concentrate on exploration and increased recovery. The first call for proposals resulted in applications totalling a

project volume of 900 mill. NOK. over the entire project period.

PETROMAKS 2005 Expanding into other thematic areas to cover most of the

upstream petroleum areas and also HSE. As a guidance for this expansion PETROMAKS will aim at Implementing as much as possible of the strategies and plans laid down by the government initiative OG21 (Oil and Gas in the 21th century).

PETROMAKS SCOPE Basic research and technology development, with special

attention to the supply and service industry.

PETROMAKS

PRIMARY OBJECTIVES SECONDARY OBJECTIVES

Optimal resource management Find and develop more resourcesEnhance the recovery of petroleum

resources

Economic development based on oil and natural gas

Help enhance existing industryContribute to the establishment of

new economic activities

International competitiveness Boost exports of petroleum-related goods and services

Targets for PETROMAKS 2004

Important research and innovation topics in 2004

EXPLORATIONThe development of geophysical methods and products to improve surveys of basins and prospects, and to enhance the prediction of lithology and pore fluid.

A better understanding and quantification of the geological processes that govern basin formation, sedimentation and basin scale fluid flow.

The surveying and quantification of critical factors for distribution and properties of reservoir, source and cap rocks.

The development of methods and products for integration and risk analysis.

The development of concepts for environment-friendly exploration and less expensive exploration wells.

ENHANCED RECOVERYStimulated production.

Surveying untapped oil and gas.

Reservoir management, especially rapid updating and improved reservoir models.

Cost-efficient transport of gas from the field.

Cost-efficient drilling and drainage.

Cost-efficient water treatment and water reinjection systems to increase hydrocarbon processing capacity.

Petromaks applications

-

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

2004 2005 2006 2007 2008

KN

OK FP

UIP

KMB

Thank you for listening!www.forskningsradet.no/petromaks/