Encyclopedia of Natural Oil and Gas Technology and Business

• Other Authors: Alexander, Keven (Editor)
• Format: Book
• Language: English
• Published: London, United Kingdom Auris Reference 2012
• Subjects: Petroleum engineering > |Encyclopedias; Gas engineering > Encyclopedias
• Online Access: Click Here to View Status and Holdings.

 Since the beginning of the modern age of oil and gas, technology has played a fundamental role in supporting the efficient production of hydrocarbons. Oil and gas technologies are often destined for hostile, hard-to-reach environments such as deep offshore waters or in the high temperature and pressure encountered at the bottom of a well. Fullscale tests must be completed before a technology can be proved and the market will accept it. As a result, commercializing technology in the oil and gas market is costly and time intensive; with an average of 16 years from concept to widespread commercial adoption. The sources of technology destined for the oil and gas markets have changed over time. Starting in the early 1980s, major oil and gas companies began to decrease their research and development (R&D) spending, driven in large part by a decision to "buy versus build" new technology. Independent oil and gas companies have historically spent little on R&D. Service companies have stepped in to partially fill the void by increasing their R&D spending. There is little doubt that new technologies will be invented and applied in the coming years to the global quest to maximize the production from oil and gas reservoirs. Given today's R&D spending trends, these technologies must largely come from service and startup companies. One area of risk is the availability of sufficient R&D funds from service company and entrepreneurial sources to create the needed new technologies for oil and gas. Recently, major operators have become increasingly risk-averse as new projects have become more costly, less economical, and technically more challenging. They may consider the application of new technology to be a riskier proposition than keeping existing proven approaches.