PETROMAKS -

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

Siri Helle Friedemann Div. for Innovation Research Council of Norway FresCo Seminar 13. – 14. May 2004

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

Director General Staff International /EU Administration Communication Division for Science Division for Strategic Priorities Division for Innovation

The Research Council of Norway is:

a government adviser identifying 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-ordinator initiating 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 science Information and communication technologies Marin science Medicine and health Interface environment/energy  Biotechnology, Materials, Petroleum

New Instruments

CoE and YIA RCN 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) NANOMAT (Nanotechnology) NORKLIMA (Climate) 2004: 2004: 2004: 155 MNOK 76 MNOK 82 MNOK HAVBRUK (Aquaculture) VERDIKT (ICT) RENERGI (Clean energy) 2004: 2004: 2004: 64 MNOK 120 MNOK 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 exports Future 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

Development perspectives for the Norwegian Continental Shelf

300 250 ”We can have a perspective for the Norwegian Continental Shelf of 50 years of oil production and 100 years with gas.” 200 150 Long-term scenario 100 50 Closing the gap must to a large extent rely on development of new knowledge and technology Decline scenario 0 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050

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

Budget 2004 incl. Finance from the reseach fund:

2 % HD 3 % UD 2 % Ø vrige 3 % KRD 1 % UFD 29 %

Government funding of petroleum related R&D 250 200

Fondet 14 %

150

MD 5 % LD 8 % FID 6 % N HD 20 %

100 50 0 1995 2000 2004

O ED 7 %

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 2004

Basic 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 2004

Including 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 funding



Petroforsk



SIP/SUP



CoE Approx. MNOK 100 User-driven oil and gas research

•OG - teknologi •Petromaks

Approx. MNOK 70 Qualifying new technology through pilot demonstrations

•Demo 2000

MNOK 30

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 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.

Targets for PETROMAKS 2004 PRIMARY OBJECTIVES SECONDARY OBJECTIVES Optimal resource management Find and develop more resources Enhance the recovery of petroleum resources Economic development based on oil and natural gas Help enhance existing industry Contribute to the establishment of new economic activities International competitiveness Boost exports of petroleum-related goods and services

Important research and innovation topics in 2004 EXPLORATION

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

ENHANCED RECOVERY

Stimulated production.

Surveying untapped oil and gas.

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

Reservoir management, especially rapid updating and improved reservoir models.

Cost-efficient transport of gas from the field. The surveying and quantification of critical factors for distribution and properties of reservoir, source and cap rocks.

Cost-efficient drilling and drainage.

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

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

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



Petromaks applications

 180 000  160 000  140 000  120 000  100 000  80 000  60 000  40 000  20 000   2004  2005  2006  2007  2008  FP  UIP  KMB

Thank you for listening!

www.forskningsradet.no/petromaks/