Why oil and gas companies must spend more on R&D

Any organisation cannot be world class without world-class research and development, said oil and gas industry officials at the International Research and Development Petroleum Conference and Exhibition (RDPETRO) in Abu Dhabi on Wednesday.
Opening the 2-day event dedicated to research and development, Adnoc downstream director Abdulaziz Al Hajri said R&D is the backbone of success at any organisation.
"We need to think if we don't want to sink. The speed of technology development has never been faster and its potential impact is powerful. Natural resources are becoming challenging to unlock. Changing market dynamics require an unwavering focus on cost and value creation. To succeed, we must be more creative, innovative and collaborative."
"At Adnoc, our response to this new energy era is reflected in our integrated 2030 smart strategy and growth, which aims to ensure a profitable upstream and valuable downstream, a more sustainable and economical gas supply - all underpinned by more proactive and adaptive marketing and trading. Critical to success of strategy is pursuing new R&D and technologies that enhances our performance, optimises cost and enables us to respond reliably and competitively to growing demand for oil and gas and refined and petrochemical products. The common perception of R&D as a cost centre needs to be challenged as the ideation and creation of novel solutions helps unlock significant value. You cannot be a world-class organisation, without world-class R&D. At Adnoc, we are leveraging R&D across the entire value chain."
Al Hajri said a major development would be announced at the Downstream Investment Forum in Abu Dhabi next week. "We will unveil a multi-billion-dollar refining and petrochemical transformation and growth scheme that will have advanced technology and innovation at its core." 
Qasem Al Kayoumi, technical centre manager at Adnoc upstream directorate, said effective innovation in R&D has huge potential to increase productivity, efficiency and enable growth. The RDPETRO 2018 chairman said that amid challenges faced in the industry, the interest in R&D is growing. "Oil and gas companies are increasingly looking for more creative ways to solve challenges, maximise value and succeed in the new energy era - from novel drilling and well completion methods, to refining or processing technologies, from new hi-tech infrastructures, material and products, to how our industry uses advanced data and artificial intelligence," Al Kayoumi said.
"RDPETRO is a place where ideas meet investment to solve the global challenges of the oil and gas industry. It is positioned to be an enabler that offers innovators access to end-users, with the potential to tap into multi-million dollar development funds. In response to the industry challenges we set, almost 400 technical solutions, from over 30 countries and more than 130 institutions, were received and evaluated."
 The chief technology officer summit where experts discussed how advanced technology, digitalisation and Artificial Intelligence will disrupt the oil and gas industry. 
The experts looked into digitalisation, big data, visualisation, mapping, sensor technology and beyond to examine how the latest technological advances drive new value and solutions for oil and gas.
The world's largest oil and gas conference and exhibition focused on research and technology development. - ashwani@khaleejtimes.com