Industry, Academia, and Professional

Societies in the 21st Century -

New Challenges and Opportunities
Importance of Technology

The Energy industry has always been

technology-intensive. Now, more than
ever, we’re relying on technology to reduce
the cost of finding oil and gas, and to
improve the efficiency of operations and
the quality of products.
Importance of Technology

Many field developments require enormous

capital investments, many with limited reservoir
penetrations or reservoir performance testing.

Project economics are most significantly

impacted by surface facility and drilling costs,
necessitating optimal capacity and production
planning to maximize rates of return.
Importance of Technology

 Given:
 the significant capital investments required today
 limited reservoir penetrations
 need for optimization of capacity and production

 It is evident that:
Integration of technology (data) in the complete life
cycle of every development is required for the
successful completion of any project
Technology for Today’s World

Historically, (Company X) relied mainly on its

own research and development (R&D) for new
technology. However in the 1990’s, we’ve
adopted a different model - one suited to a more
competitive business environment and reflecting
fundamental changes in industrial R&D.*

*1998 Major O&G Co. Annual Report

Technology for Today’s World

Average R&D Expenditures as % Total

Revenue (Oil & Gas Companies)
2.50

2.00

1.50

1.00

0.50

0.00
1990 1992 1994 1996 1998 2000
Brave New World

What does this mean for (Company X)? To make

the most of our research dollars, we’re
broadening access to an expanding external R&D
world. One way is by sharing the cost of research
projects with other companies.*
*1998 Major O&G Co. Annual Report

‘Leveraging Technology’
New Challenges and Opportunities

The Opportunity for Academia and Professional

Societies:
The R&D basis is shifting from inside O&G
companies to outside service companies and
industry consortia.

Technology is shifting from invention by O&G

companies to application by O&G companies.
New Challenges and Opportunities

The Challenge for Academia and Professional

Societies:
For academia and professional societies to assume the
role as technology leaders.
The Beginnings:
 Education
 Multi-discipline (societal) conferences
 Multi-discipline publications
 Consortia, Forums, Research Institutes
The Future:

The Opportunity:
For academia and professional societies to
become R&D inventors.

The Challenge:
It cannot happen without you. Your
involvement and participation is needed in
order for our societies and academia to assume
the R&D leadership role.