A More-Holistic Approach to Oilfield Technology Development

The complete paper takes a holistic view of technology maturation that addresses both technical and nontechnical risks. The definition of success is expanded to include the establishment of successful, commercially viable, and sustainable solutions that meet end-user needs and requirements.

The Case for Change

Across the industry, companies have seen tremendous drops in revenue and profits along with returns falling well below the cost of capital. The survivors become much more focused on capital-expenditure reductions, with investments almost entirely driven by near-term free cash-flow generation. The effect on innovation within the industry has been dramatic, yet technological innovation is needed now more than ever.

This situation, while difficult, does offer opportunities. The huge reduction in overall investment and resources will lead to an accelerating production decline in an aging production base and increases the likelihood of significant supply deficits that can only be reversed by a broad-based increase in global exploration and production spend.

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper OTC 27806, “A More-Holistic Approach to Oilfield Technology Development,” by M. Sequeira, OTM Consulting; H. Elshahawi, Shell; and L. Ormerod, Ormerod Consulting, prepared for the 2017 Offshore Technology Conference, Houston, 1–4 May. The paper has not been peer reviewed. Copyright 2017 Offshore Technology Conference. Reproduced by permission.
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A More-Holistic Approach to Oilfield Technology Development

01 December 2017

Volume: 69 | Issue: 12


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