Economic Report 2013

In addition, the Technology Strategy Board 15 has funded some £22 million of oil and gas related projects since 2007 (11 per cent of its energy funding). Looking to the future, it is clear that the prosperity of the UKCS will be significantly influenced by successful development and implementation of new technologies. In recent years, the number of operators has increased, while the role of the major IOCs has decreased. As a consequence, the ability of operators to undertake R&D in-house has declined. This means that, more than ever, an efficient, industry-wide system of research through to deployment in the field is required. The technical challenges facing this diverse range of operators are becoming greater, as outlined below: • Current exploration success rate is low compared with other oil and gas provinces. The exploration targets are small and geologically complex and sometimes with high pressures and temperatures. • Current oil field recovery factors in the central and northern North Sea are just

over 40 per cent. IOR and EOR technologies will be required to increase the average recovery factor to above 50 per cent. • Much of the infrastructure is beyond its design life, requiring comprehensive plans to extend its life and increase recovery (note the Health and Safety Executive’s Key Programme 4 on asset integrity referenced in footnote 4). • Cessation of production from critical fields could constrain access to new resources. • The remaining reservoirs hold resources which are increasingly difficult to recover. • Long and/or complex subsea tie-backs are necessary for many new developments. • Decommissioning is a growing activity across the UKCS. However, the above challenges represent an enormous opportunity for the companies involved and for Scotland and the UK as a whole, hence the work of the task force, PILOT, in addressing these matters (see ‘The Road to 2040’ in Section 4) and the two industrial strategies discussed earlier in this section.

Figure 40: New Technology – the Treatment of Injected Water for EOR Purposes in the Clair Field

Heat Exchangers

WI Pumps

Lift Pumps

Coarse Filters

UF Membrane Pre-treatment

Membrane Desalination

WI Wells

De-aeration

Electro Chlorinator

Chemical Dosing

Excess CW + Brine

Sea Water

Other Users

Source: BP

15 See http://www.innovateuk.org

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ECONOMIC REPORT 2013