Published by the DTI Oil & Gas Directorate for the reservoir engineering and IOR community in the UK.
Send comments on this issue and contributions for next issue to iornewsletter@senergyltd.com by 15 August 2002.

Purpose

Tissa Jayasekera

Tissa Jayasekera, Manager of OGLED's SHARP Programme, outlines the purpose of the newsletter.

The DTI, through the Oil & Gas Directorate, and the Office of Science and Technology, through the Research Councils (EPSRC and NERC), spends in excess of £5 million each year on funding research related to the hydrocarbon sector. The oil industry contributes a similar amount through participation in JIPs and LINK consortia. The four public sector funding bodies (PSFBs) directly involved in channelling government funding for hydrocarbon extraction research through their own individual programmes are:

• DTI Oil & Gas Licensing, Exploration and Development (OGLED)
• DTI Oil & Gas Industry Development (OGID)
• Engineering and Physical Sciences Research Council (EPSRC)
• Natural Environment Research Council (NERC)

The criteria governing each of these programmes will be different. The research councils tend to place more emphasis on the advancement of the science and less on commercialisation. OGLED has in its remit to exercise the regulatory framework for hydrocarbon extraction activity (the award of exploration licences, development and production consents etc.) to achieve the best return for the nation. This remit links with identification and support of R&D that contributes to the maximum exploitation of the UK's petroleum reserves. OGLED's programme for this is the Sustainable Hydrocarbons Additional Recovery Programme (SHARP). OGID concentrates on supporting UK's SME industry to develop products and services and to improve their competitiveness in the hydrocarbon sector. The simple diagram shown below serves to illustrate how the areas of interest of the respective government bodies fit into the total picture. Within this framework the Industry Technology Facilitator (ITF) can provide the links with industry, in brokering the technology and facilitating joint industry projects.

Sponsor Investment - Return on Investment from EOR Projects

Recently, under the guidance of the Advisory Committee for Hydrocarbons Additional Recovery Research (ACHARR), which advises OGLED on policy and sponsorship of generic research, the PSFBs saw the need for a new initiative that will ensure the following objectives:

• lead to optimisation of government funds
• better collaboration among research centres
• ensure the survival of the key expertise centres through downturns in the industry

The PSFBs commissioned an independent review by Technology Initiatives Ltd. (TI), to assess whether the existing networks cover all of the upstream oil and gas industry and to examine how well they are assisting in meeting the above objectives, and what other options are available to ensure that these objectives are met. TI's final report from this study is now available at the following website: http://www.og.dti.gov.uk/information/sharp and click on the S.H.A.R.P. link at the bottom of the page, the report is listed under Dissemination.

One of the key findings from this study is that "there does not appear to be a recognised technical network within the UK for reservoir engineering and IOR. There is also a more general lack of awareness across many sectors of the industry about what is currently being done and how to participate". It is thought that an electronic newsletter would be the most cost-effective way of providing a focal point for research effort in this area.

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