Breakthrough Technologies and Incremental Innovation: the Edge of Innovation in Oil and Gas industry, Level of R&D expenditure Versus Results in the Energy Companies

Abstract

Energy industry, oil and gas sector to be specific, has been in a leading position in the development of new technologies and innovative ideas for the efficient production of hydrocarbons and processing. Exploration of challenging, technologicaly difficult sub salt and sab basalt fields, drilling activities in deep waters and to reach deep reservoirs, development and deployment of efficient and modern production methods, reservoir management models and enhanced recovery mechanisms to improve oil recovery, and CO2 sequestration approach to inject CO2 in geological strata emerged as main areas where major petroleum operators and service companies are focusing significantly for their Research and Development activities. However commercialization of innovative technologies is very costly and time-intensive. The risk avert attitude of major oil and gas operator companies towards promotion of new technological development and innovative tools increased pressure on innovative service companies to stick to the existing technologies. This paper unfolds various issues regarding industry’s approach and attitude towards the development of new technologies and summarized benefits reaped by the companies from novel ideas.