Investment in innovation may decline in the short term – but the industry needs to innovate to compete, according to the Lloyd’s Register Energy Oil & Gas Technology Radar 2015.
In September 2014, Lloyd’s Register Energy published its first Oil & Gas Technology Radar, which delivered a clear overview of the prevailing oil and gas technological climate. The report reflected the market conditions of the time and almost 70% of respondents felt that investment in innovation would increase in the next two years.
In the last few months, the company has surveyed more than 400 professionals from across the global industry. This time, the survey suggests that investment in some emerging technologies is likely to decline in the short term, with the remaining investment focused firmly on innovations that will deliver immediate cost efficiencies.
John Wishart, President of Lloyd’s Register Energy, said: “Whilst this is an inevitable response to low and uncertain oil prices, we can’t afford to ignore the longer term impacts of reduced innovation investment. In fact in the recent survey, 80% of respondents told us their company needs to be more innovative in order to compete in the future. It’s a problem that we, as an industry, need to overcome.”
The Lloyd’s Register Energy Oil & Gas Technology Radar 2015 examines this and the other big issues around technological innovation. The study takes the pulse of innovation now and the outlook for the next few years. As a key part of that, it examines the ways in which data technologies will increasingly shape the sector and where the challenges lie. In recognition of current market conditions, the study considers various price scenarios, and how the industry might respond to each. Finally, it looks at the new approaches that will enable successful companies to continue innovating and competing in a turbulent market environment. According to the survey, many of the solutions are based on collaboration, within the industry and outside of it, indicating a growing appetite for the sharing of resources and risk.
John Wishart said, “Without question, the industry is facing challenging times. That this will affect appetite for investment is also beyond doubt. As the study shows, it is well understood that innovation is vital for the safe and sustainable future of the industry – and there is growing recognition that we need to look at new and different ways to drive this cost-effectively. To my mind, the research shows us that collaboration, in all its forms, is a big part of the answer.”
The Lloyd’s Register Energy Oil & Gas Technology Radar 2015 will be released next month. Sign up for your copy below.