Oil&Gas UK: New Technology Vital for Extraction of Remaining North Sea Oil

Offshore Energy Today is sharing the following interview on new technologies for well intervention in the North Sea, with permission from Offshore Network.  Oil & Gas UK’s operations consultant Dr Andrew Leonard speaks with Dean Murphy, Director, Offshore Network.

Oil&Gas UK: New Technology to Play Vital Role in Recovering Remaining North Sea Oil

 Well intervention projects are a top fiscal and operational priority for operators in the North Sea. To borrow a well-used phrase, “the days of easy oil are over.” Well intervention has become a critical feature of the future profitability of brownfield assets as operators seek to extend economic production for as long as possible. To understand more about the importance that new technological developments have to play for the North Sea basin, Offshore Network spoke with Dr Andrew Leonard from Oil & Gas UK.

Offshore Network: With the North Sea being such a mature basin, the cost of recovery is constantly growing and areas such as well intervention are becoming more critical than ever before. What role do you believe new technology has to play in the future of the North Sea?

Dr Andrew Leonard: The North Sea is a changing market. Finding, developing and producing resources is getting progressively more difficult and the number, size and research capability of operating companies is changing. Overall, technology will continue to play a critical role in the future of the North Sea. Over the last 30 years, technological advancements have been hugely important to North Sea development. In my opinion, technology will play a bigger part in the future for the North Sea as recovering remaining resources becomes more difficult.

From a long term UK perspective, the know-how and capability of the supply chain will be the legacy from the North Sea after production has ceased, and we need to insure this capability continues to be nurtured.

Offshore Network: What are the biggest concerns for North Sea operators when looking to utilise new technologies?

Dr Andrew Leonard: Ultimately, operators are concerned with risk, be that a safety risk, or concern around loss of production. Putting new technologies in your production stream can be tough to justify. As with all new technologies, cost can be another stumbling block for operators in the North Sea. Some new technologies are, for example, expensive the first time around and may have a long payback period. Finally, operators have to ask themselves whether a new piece of technology will deliver if it doesn’t have a track record.

Offshore Network: Across many disciplines including offshore well intervention, many operators have traditionally used tried and tested technology for their work rather than looking to newer options – why is this?

Dr Andrew Leonard: There is a risk perception around the introduction of new technology. In some cases, new technology may be more complex, which leads industry to worry about the difficulty of introducing this into their current approach.

There is also a bit of a cultural issue within the industry. With a few exceptions, there isn’t a race to be first to apply a new technology. Traditionally, companies like to see new technologies being tried and tested by someone else before they move forward with it.

Offshore Network: Recently there has been more activity to develop new technologies and you’re specifically leading this area for Oil & Gas UK – does this demonstrate the operators’ opinions towards new technologies are changing?

Dr Andrew Leonard: Overall, there is a changing atmosphere in the industry. With the challenge to find and recover the remaining resources, there appears to be an increasing recognition that adopting new technology is required.

Historically, rapid technology, innovation and adoption in the industry is, not surprisingly, driven in areas where there are clear competitive advantages both for operators and/or the supply chain.

This is commonly driven by the ability to find or access new reserves. In ‘base operations’ attitudes often focus on keeping things simple and not trying new approaches.

Many operators are realising the shape of the North Sea basin is changing and in order to move forward effectively, a more collaborative approach may well be required. This has been reflected in Sir Ian Wood’s recent interim review. Time will tell if a more collaborative approach is embraced.

Offshore Network: New technology that drives efficiencies, is built for purpose, increases recovery rates and improves safety will continue to be of utmost importance to industry. Do you have any advice for companies who have new technologies which they are looking to develop for individual disciplines such as well intervention?

Dr Andrew Leonard: This is a tough question. The industry overall has not historically excelled at connecting the real strategic needs of the sector with the innovation community.

Companies must work hard to establish there is a real need for their technology with their client and build a solid business case. They must also ensure the benefits are realised by their client’s company, not just to the individual rep they are working with – this will ensure the technology is not forgotten if the contact moves on.

Companies that develop new technology must plan for success beyond initial testing. They must agree the qualification criteria and the route to a field trial with the client upfront, as the inability to make field trials happen is one of the biggest hurdles to technology adoption.

(Dr. Andrew Leonard will be speaking in more detail at the Offshore Well Intervention Conference in Aberdeen on April 15-16. To review the brochure for this meeting, go to https://bit.ly/OWI-SWN

Offshore Network