Upstream Global R&D Efforts Continuing, with Caution

Abstract

While 2008 closed with lower demand for oil and gas and a corresponding drop in energy prices from their record highs in the summer, research and development (R&D) efforts across much of the upstream sector continue, although with a sense of cautious optimism. This was one of the findings of a global survey of the state of R&D in the oil field, in which various operators, service providers, and academic institutions were asked to provide insight on the major research projects to which the industry is devoting time, effort, and money. The survey was sent to upstream professionals around the world, and was aimed at uncovering major research projects, their intended aim, and their stage of development. In addition, professionals were asked if the recent worldwide economic downturn had negatively affected their research efforts or had resulted in cutbacks in R&D spending. The International Energy Agency still estimates significant growth in energy demand over the next 25 years. Between 2006 and 2030, world primary energy demand is estimated to expand by 45%—an average growth rate of 1.6% per year and one that will be overwhelmingly supplied by oil. To meet this demand, responders have indicated that the industry is developing new technologies along the following major fronts: Deepwater/Subsea Baker Hughes. The oilfield services giant is focused on developing next-generation field development and production technologies for deepwater wells and extreme high-pressure, high-temperature applications. Research in these areas involves ongoing projects that encompass both sustaining engineering and new product development. The company's new Center for Technology Innovation in Houston is the focal point for much of this research, and is capable of testing full-size prototypes of equipment in a test environment with gas pressure up to 40,000 psi and temperatures up to 700°F. SBM Offshore. Offshore engineering and installation specialist SBM Offshore Group is developing a steel catenary riser (SCR) connector deployment system for use with deepwater floating production systems. "The aim of this research was to develop a faster, lower-cost SCR lay system using mechanical pipe connectors rather than welded connectors, which are typically used for today's lay vessels," said Jack Pollack, Vice President of Research and Deepwater Development with SBM Offshore. "The mechanical connectors will enable SCRs to be used in deeper water with high-strength pipes and also increases SCR fatigue life, making them applicable to more offshore developments." Research for the SCR deployment system is well under way, and SBM Offshore expects to have a certified SCR connector ready for offshore use in 2009.