This year's deep dive study

OG21 conducts every year a study on a topic of particular strategic interest for the Norwegian petroleum sector. This year the selected topic is: Technology for Improved Cost and Energy Efficiency.

The Norwegian petroleum industry has been able to reduce costs considerably, and the NCS is therefore currently globally competitive on break-even prices and operational costs. But the competition is not won - Norwegain projects compete continuously for investments and for delivering petroleum to the global market:

  • NCS projects are being challenged both by US shale oil and by other petroleum provinces.
  • The willingness to invest is influenced by the cyclicality of oil and gas prices, lead time for projects and uncertainty about the future demand due to substitution with other energy sources.
  • The emissions of greenhouse gases could influence the societal "license to operate", the industry's reputation and the ability to attract new talent. Over time the competitiveness of the NCS could suffer.

New technology improve productivity and cost efficiency and reduce emissions. In the wake of the cost reductions that have been achieved on the NCS, someq questions arise that the OG21-study aims to answer:

  1. To which extent has new technology contributed to the experienced NCS cost cuts? 
  2. To which extent have enterprises in the Norwegian petroleum industry leveraged the potential of new technology? 
  3. How can the development and use of new technology contribute to an improved competitive position for the NCS both short term and in the longer run? 

The results will be used for: 

  • Demonstrate to NCS stakeholders the importance of new technology to maintain competitiveness. 
  • Identify areas where new technology is of particular high importance to improving the NCS competitiveness. 
  • Provide proof and arguments for OG21's communication on the need for increased research and technology development. 
  • Stimulate to increased collaboration on the development and use of new technology.