Page 1

10 september 2013

Special Edition    Published by Oil Gas Denmark

Growth in the North Sea requires a long term action plan Page 8-10

Martin Lidegaard: Technology ensures more oil and gas Page 12-13

The North Sea – a sea of complex oil fields Page 14-15

Offshore provides great job security for young people Special report – page 29-37

Denmark – an oil nation

The easy oil has already been recovered, but the marginal fields can supply oil for many years to come. It requires research in new technologies, stable economic conditions and a recovery rate above the current 27 pct. Page 4-5


Denmark – an oil nation Denmark is an oil nation! We are the only country in the EU to be self-sufficient in oil and gas. The sector employs 15,000 people and the production of oil and gas contributes DKK 25-30 billion to the Danish economy annually. This situation could continue for many years to come if the right decisions regarding the North Sea’s future are taken. But, time is running out. The government has presented its report ”Investigation into the Conditions for the Recovery of Hydrocarbon” (in Danish, “Eftersyn af Vilkårene for Kulbrinteindvinding” ). Negotiations on the consequences for a number of companies are yet to be finalised. However, we strongly recommend that solutions are found that create an enduring foundation for the industry. It is essential that the industry is left to work in peace and look to the future and focus on what is necessary if Denmark is to realise the remaining potential in the North Sea. The Danish Energy Agency estimates that the oil and gas that could yet be produced is equivalent to 70% of all the oil that has been produced in the North Sea up to now. That’s a vast amount! But, how will we realise that potential? The Danish continental shelf is a mature area but that doesn’t mean that there is no more oil and gas. The remaining oil and gas will be more difficult to extract and new discoveries will be even more expensive to produce. Therefore, oil production in the future will pose a massive technological and economic challenge. If Denmark’s oil and gas production is to continue to support the welfare state, it requires more exploration, production of marginal fields and higher levels of recovery – three core “engines of growth”. Companies must be given an incentive to increase exploration so that we can find new deposits of oil and gas in the North Sea. Once we have found the oil and gas, it must be profitable for the companies to produce it – even from the smaller and more inaccessible fields. In addition, we need to extract more than the present 27% of oil out of the individual field. That is what is called the level of recovery. Time is a critical factor. It is imperative that we get all three of the closely linked “engines of growth” up and running as quickly as possible and that this is done in a coordinated manner. It is possible, but time is a matter of urgency and we have to think a little differently if we are to succeed. This scenario is outlined in the report ““The potential in the North Sea – three growth enablers for realisation” which has been prepared by Quartz + Co. at Olie Gas Danmark’s request. The timing is crucial because, first and foremost, the oil and gas of the future has to be produced through the existing infrastructure in the North Sea. The size of future discoveries will probably not be able to justify the massive levels of investment that new, independent platforms and pipelines will require. Many of the existing fields are mature and the operating costs per barrel of oil are increasing and the profitability of continued production is declining, If companies have to close down the existing platforms because it no longer pays them to produce from the old fields, then the remaining resources will remain underground forever, On the other hand, renewed activity has a positive synergy effect. Investment in increasing the levels of recovery and the development of marginal discoveries via existing fields can extend the lifespan of the existing infrastructure. And, if you extend the lifespan, you are also extending the time during which you can look for and produce further oil and gas. In turn, this will mean increased tax revenues, jobs and exports. Even though there are signs of progress in the Danish economy, we, as a society, need all the growth and jobs we can get. In the oil and gas sector there is potential for growth that is real and is just waiting to be exploited if we want to. Accordingly, I look forward to industry and the government in partnership formulating and initiating a long-term strategy for development of the sector. While there is still time.

Martin Næsby Managing Director, Oil Gas Denmark 2  Oil Gas Denmark — 10.09.13


Denmark – an oil nation

Martin Næsby:

“Growth in the North Sea requires a long-term and coordinated action plan”



The challenging North Sea continental shelf area creates massive exports


Publisher Oil Gas Denmark

The North Sea is a sea of small oil fields

The Danish Minister for Energy:



New OGD Chairman is proud of Denmark as an oil nation

Technology ensures more oil and gas


Young people choose offshore: “It is a lifetime career”

Offshore provides great job security for young people



Produced by First Purple Publishing Project management Kristian Dickow Editor Bent Sørensen Design/layout Casper Heiberg Cover illustration Casper Heiberg Print Stibo Graphic Circulation 140.000 (120.000 Danish, 20.000 English)

Contact First Purple Publishing Kasper Karstensen Tel. +45 3119 4000

The Danish Minister of Education:

More students ought to take an offshore education


Esbjerg is Denmark’s energy metropolis


Oil, gas and the changeover to sustainable energy


Increased security requires a common focus


Shale gas can reveal large energy reserves

48 Oil Gas Denmark — 10.09.13  3

Denmark – an oil nation

Danish oil and gas has provided prosperity for decades, and the career prospects are many for young students. Although the production of Danish oil was at its peak 10 years ago, there is still great potential in the North Sea, where a long-term strategy can create growth, prosperity and jobs for many years to come Text Bent Sørensen & Ulla Lena  Graphics Casper Heiberg

When Mark Twain saw his obituary in a newspaper, he telegraphed briefly: ”The rumours of my death have been greatly exaggerated”. The Danish oil and gas industry can say something similar to those who may believe that the North Sea will soon be drained of the oil and gas reserves, which have contributed to Danish prosperity for more than 40 years. The Danish part of the continental shelf is mature. This means that most of the oil from the known oil fields has already been produced. Therefore, no Norwegian oil adventure is waiting on the horizon. But even though Danish production peaked nearly 10 years ago and is now on the decline, under incentive framework conditions and a long-term strategy focusing on new technology and oil field expansions, there are prospects for production and prosperity from the North Sea for many years to come. The positive future prospects are confirmed by those young people, who have chosen a career in the oil and gas industry. ”There are ample reserves of oil and gas for my career,” says 23-year-old Birgit Haastrup in this magazine. She will graduate next summer with a master’s degree as an engineer in oil and gas technology at the Technical University of Denmark (DTU). And there is a need for students just like Birgit Haastrup, if the potential of the North Sea is to be fully exploited. The oil and gas industry needs a highly qualified workforce.

Four decades with oil The four decades of oil and gas production in Denmark have been of major impor4  Oil Gas Denmark — 10.09.13

tance for Danish society. The first oil was produced in 1972, and in 1990, oil and gas production exceeded the total energy consumption for the first time and made Denmark a net exporter of energy. Overall, Danish oil and gas has given the state an income of more than DKK 325 billion. In addition, 15,000 people are employed in the sector, and exports of oil and gas alone represent 9 percent of total Danish exports, corresponding to a value of DKK 48 billion. No other sector in Denmark pays more in

taxes and fees than the oil and gas sector, and with DKK 25,2 billion in 2012 the tax revenue from Danish oil and gas production is essential for the Danish economy. DKK 25 billion is almost equivalent to the price of the Øresund Bridge including land installations or to the state’s total expenditure on higher education.

Requirements for the future In addition to financial incentive framework conditions, which are essential for attracting investments in the Danish substratum, tech-

Did you know that...

Denmark is the only EU country self-sufficient in oil and gas

nological development and a coordinated, long-term action plan for the North Sea are fundamental factors for oil and gas being able to continue flowing in. The government has announced that the recovery rate must increase, and that research is the key. ”There is a need for research in methods, which make it possible to produce a greater portion of the oil that is found in the dense limestone fields,” says Martin Lidegaard, Danish Minister of Climate, Energy and Building, in this magazine. Over the years, the oil companies have developed technology, so that the recovery rate has increased from 14 percent in 1990 to 27 percent in 2011. Many people believe that it can increase even more. ”Oil Gas Denmark can set strategic objectives, which are higher than 27 percent at any rate. But two things determine how high we can progress: technology and the financing. Here, the new research centre can play a role,” says Troels Albrechtsen,

the new Chairman of Oil Gas Denmark, in an interview for the magazine. Managing Director of Oil Gas Denmark, Martin Næsby, believes that a long-term and coordinated action plan for the North Sea with a focus on exploration, marginal fields and an increased recovery rate are important elements if we are to take advantage of the full potential of the North Sea.

Great value It will be a great benefit to society if we succeed in increasing the recovery rate. Although the future of oil recovery in Denmark will be happening in smaller fields, where the oil may also be difficult to reach and thus more expensive to get up, each percentage point in the increase of the recovery rate represents a production value of more than DKK 50 billion, if the oil price remains at the current level. The Danish Energy Agency itself estimates that if only half of the additional oil and gas potential

believed to be realistic to get up from the North Sea is realised, it will result in additional income of DKK 5 billion a year up to 2042 for the state and 5,000 jobs.

Seventh Licensing Round The industry is currently waiting on which terms and possibilities the so-called Seventh Licensing Round will offer in the North Sea. It has been seven years since the last call for tenders. In the sixth round in 2006, a total of 14 licenses were allocated, and experiences from the licenses may give an indication of the possibilities in the next round. The sixth round has created considerable exploration activity, which has resulted in new oil and gas discoveries. According to the Danish Energy Agency, a final date for the launch of the Seventh Licensing Round is waiting on some environmental assessments, but is still expected to start in 2013.  Oil Gas Denmark — 10.09.13  5


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DTU Side 7

The Center for Energy Resources Engineering

Photos: Maersk Oil & Gas and Christian Carlsson

Knowledge for the future Oil and gas are fundamental energy resources for human CERE is an independent, university based, research unit existence and everyday life. But the time of easy oil discoveries with more than 30 years of expertise in the field. The DTU’s central campus is located just north of DTU, Technical University of Denmark, is ranked are over. CERE co-workers are a mix of internationally renowned Copenhagen, and life at the University is as one of the best technical universities in scientists and the sharpest young talents from different engaging and vibrant. At DTU, we make sure Europe. DTU offers internationally recognized Meeting the challenges of today’s oil and gas industry call that yourscientific goals andcommunities ambitions arearound met. the group. MSc degrees in 28 English-taught programmes, for deep insights, innovative discoveries the highest Tuition is free for EU/EEA citizens. a wide range of joint programmes andand double leveldegrees of international research expertise. The research center unites experience with unique talent with international partner universiand educates scientists and engineers. The Meet us at The Studenttomorrow’s World Fair in ties, and 19 PhD schools. Center for Energy Resources Engineering (CERE) is Denmark’ s education and training MSc and doctoral students are Manchester on 12 October and in of London on 13 October At DTU, students hands-on to assurance, leading research centerhave in the areas ofaccess EOR, flow some 2013. of the most important aspects of CERE’s activities. edge facilities and work closely under CCScutting and petroleum geoscience. With an excellent track Visit theand expert supervision of top international record international reputation CERE uniquely comThe expertise from CERE assists Denmark to make the for more information researchers. bines strong competences from several academic fields. right decisions for the future. Most of our many diverse research projects are conducted in collaboration with one or more members of the CERE Consortium – a group of 29 leading companies in the field. Read more on

8  Oil Gas Denmark — 10.09.13

“Growth in the North Sea requires a longterm and coordinated action plan” Billions in investments and great opportunities for the future of young people in the Danish oil and gas industry contribute to the optimism felt by Martin Næsby, Managing Director of the trade organisation Oil Gas Denmark. He is hoping for a coordinated and long-term action plan, which can extend the lifetime of Danish oil production and create growth and prosperity

Text Keld Broksø & Ulla Lena  Photo Jeanne Kornum

While other sectors are letting people go, the Danish oil and gas industry is looking for competent people and can report high activity, development, billions in investments and a Seventh Licensing Round ahead with the possibility of new discoveries and recoveries. Martin Næsby, Managing Director of the trade organisation Oil Gas Denmark, believes that the North Sea has a large untapped potential, which under the right conditions and with a long-term strategy focusing on increased exploration and technological development, can create prosperity in Danish society for many years to come. Recovering oil from the North Sea is becoming increasingly difficult. How much more oil can we produce in Denmark? ”Technological development is constantly on the move, and that is why one cannot give a precise answer. Danish production peaked in 2004, and we will not achieve that level again. The Danish part of the continental shelf is what is called mature, and production from the current oil fields is declining. The ”easy” oil has already been produced, and future oil fields in Denmark will be smaller and more difficult to access. But that does not mean that we cannot create growth in the North Sea and in that way extend the lifetime of the North Sea, for there is still a great potential. The Danish Energy Agency estimates that in the future it will be possible to produce oil and gas in quantities equivalent to 70 per cent. of all the oil, which until now has been produced in the North Sea.” So having learnt from past experiences, you do not think one can predict the future for Danish oil and gas production? ”No. But I have no doubt that the recovery rate will increase from the current 27 percent. The recovery rate is an expression of how much of the known oil reserves is being produced. It has been increasing

throughout the 40 years where oil and gas have been produced in Denmark. We are constantly becoming more skilled and better at understanding the Danish substratum. For example we can now go down into oil fields, where pressures and temperatures are much higher. That means that today we can recover from oil fields, where it was previously not possible. Some people believe that the recovery rate can increase by 10 or perhaps 20 percent. It requires a giant technological leap. Is it possible? Technically it may be possible, but there are major economic challenges.”

Billions in new investments Regardless of the political discussions on taxation this spring, great things are still taking place in the industry, which confirm the optimism, for example when the largest North Sea investment since 2007 took place this spring. With Maersk Oil and Gas as the operator, the Danish Underground Consortium (DUC) invested DKK 4.6 billion in a major expansion of the Tyra Southeast oil field to ensure an additional 50 million barrels over the next 30 years. That was only one of several recent investments. ”We are very pleased with the investment made by our members, and Tyra is not alone. We are also seeing large investments from companies such as DONG Energy, Hess and Bayerngas in the Hejre expansion and the expansion from the South Arne oil field. Meanwhile, the Wintershall Company has found new oil in the Hibonite oil field. It strengthens our belief in a significantly greater potential in the North Sea. But if we are to generate growth and have the full benefit of the North Sea’s oil and gas, a long-term action plan is required, not just massive investments in the expansion of existing oil fields, but also investments in innovation and the development of technology, so that we can recover more than the 27 percent, which we are currently doing today, and make producOil Gas Denmark — 10.09.13  9

Growth in the North Sea... tion from more marginal oil fields profitable. And not least, investments must be made in the exploration for new oil fields. “ “This is evident from the report “The potential in the North Sea – three growth enablers for realisation” by Quartz + Co. written on Oil Gas Denmark’s request. The report mentions increased exploration, production from marginal fields and increased recovery rate as key “growth engines” for the realization of the potential. It requires stable as well as incentive framework conditions, otherwise the companies will not dare invest,“ says Martin Næsby, adding that it is urgent to make the right decisions.” Do the latest, major investments generally create a greater desire to invest? ”Large investments of course result in optimism for the industry, but the companies will always assess the individual investment and only invest if it is worth the effort. In Denmark, we must take care that we do not scare investments out of the country, because our oil has no value – either in money or jobs – as long as it is down in the ground. What do you think is needed to make use of the North Sea’s full potential? A long-term action plan with focus on marginal oil fields, as well as increased recovery and exploration for new oil. That is where the potential of the North Sea is hiding.”

The right skills are necessary What else is important in order for the potential of the North Sea to thrive? ”Training. The industry depends on us having trained the right skills, for we can no longer count on being able to hire the people abroad, who are not found in Denmark. When it comes to both recruitment for the industry and research for increased recovery, it is essential that there are young people who are interested in the technical and scientific areas initially, and later specialise in the skills, that the oil and gas industry needs.” Is it worthwhile for young people to undergo training in the oil and gas industry? You can see that production is falling, so what do you say to the young people to get them into the fields of oil and gas? ”We say to them that there are good career opportunities. First of all, there is still a significant potential in the North Sea, so there is oil and gas, and thus jobs for many years to come. Secondly, the oil and gas industry is highly international. Therefore, as a drilling engineer, geophysicist, machine engineer or electrician, one has the whole world as one’s place of work. International careers are also well-paid with exciting, technological challenges at all levels.” 10  Oil Gas Denmark — 10.09.13

Can Denmark become a global supplier of skills? “We are already, and we could become so to an even greater extent. But we see a tendency for young people to shy away from the scientific and technical fields when selecting their education. It is therefore gratifying that in 2013 we are seeing a record number of students who have been admitted to study programs that can provide jobs in the offshore sector.”

Overlap between wind and oil How should the mix of energy be in the future? Do you have an idea of the weighting of gas, oil, coal and green energy? ”We can see the Danish Energy Agency’s projections show that a relatively constant consumption of oil and gas is expected, whereas there will be a drop in the consumption of coal and an increase in renewable energy. That is the pattern we have now. But it can easily change, among other things due to the recovery of shale gas in the USA. Coal-fired power plants are being closed in the USA, and there the CO2 emissions have gone down. The inexpensive coal is exported to Europe and China, and that is unfortunate for CO2 emissions. We do not have a matrix for an ideal distribution of energy forms, because the conditions are constantly changing. Shale gas has changed the game for the moment, and we expect that the USA will become a net exporter of fossil fuels.” What will be the role of Danish shale gas? ”It is too early to say anything about Danish shale gas. The French company Total has concessions in North Zealand and North Jutland. Before too long, they must conduct test drilling, which can show whether there is any shale gas at all. Only then can we see whether Danish shale gas can be produced in commercial quantities.”

Self-sufficient on paper An argument from the government and yourself for continuing the development of Danish oil and gas is that we are self-sufficient. But is that correct? It is, of course, not necessarily Danish petrol that we fill into our cars, is it? What do you really mean by saying that we are self-sufficient? ”Self-sufficient means that our own production in Denmark is greater than our consumption. But all of the North Sea production is not necessarily matched to the needs in Denmark. The oil enters via a pipeline to Fredericia, and the oil is sold on the world market, including to Denmark. Buyers of oil depend on quality, refining capacity, etc. It is not the case that Danish oil must go to Denmark. That is why we both export and import oil. Therefore Danish oil consumption is generally not covered by ”Danish oil”, which is primarily for export,” Martin Næsby explains. 

  The “easy” oil has already been produced, and future oil fields in Denmark will be smaller and more difficult to access. But this does not mean that we cannot create growth in the North Sea and in that way extend the lifetime of the North Sea, the potential is still huge Martin Næsby Managing Director of the trade organisation Oil Gas Denmark

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Minister for Energy:

Technology ensures more oil and gas The Danish Minister for Climate, Energy and Building, Martin Lidegaard, is presented with five sharp questions here, and the answers show that a future strategy must provide a basis for an increased recovery rate and the processing and transport system must be optimised. ”There is a need for research in methods, which make it possible to produce a greater portion of the oil that is found in dense limestone,” says Martin Lidegaard Text Keld Broksø  Photo Jeanne Kornum


The government has said that it wants to increase the recovery rate in the North Sea. What do you think is the most important thing for this to take place? ”Increasing the recovery rate is a challenging and difficult task. There is a need for research in methods, which make it possible to produce a greater portion of the oil that is found in the dense limestone fields. The method should not only be developed, so that it can technically be used in a laboratory, but also be feasible on a commercial basis in the North Sea. This is not something that happens by itself, it requires systematic research on a high professional level. It is therefore gratifying that the industry has taken the initiative for a Danish research centre, which in cooperation with Danish and foreign research environments will work on these issues.” ”I also think that it is positive that the industry and the public have started a joint project, Joint Chalk Research. Danish and Norwegian authorities and ten oil companies are responsible for the project where they collect and systematise existing knowledge, which can contribute to shedding a light on the problem areas. In addition, it has just been decided to start a project for investigating improved well technology.”


Do you have anything in mind that will be able to intensify the exploration for new oil fields?

”It has been seven years now since the last call for tenders was conducted. The work programs are about to be implemented. So there is a need to conduct a new round, where the concessioned areas in the North Sea are tendered. This will be the Seventh Licensing Round. We know from our daily contacts with the oil companies, that there is interest in getting new licenses for the exploration and expansion of hydrocarbons. Along with several oil companies, GEUS has 12  Oil Gas Denmark — 10.09.13

launched two research projects, whose results will provide a basis for further investigation of the Danish part of the North Sea.”


A special problem on the Danish continental shelf area is the marginal fields. How do you think that we can get the oil companies to take an interest in the more marginal fields? ”A field may be marginal, either because it is difficult to access and therefore expensive to produce, or because the raw material deposits are small and therefore cannot support the necessity of investing in proprietary facilities for processing and transport. Recovering from fields with high production costs require the development of new methods, which can make them commercial, and then we are back to the previously mentioned efforts to increase the recovery from the difficult fields: If the occurrence is small, we are in the fortunate situation that currently there is an infrastructure for the production and transportation of oil and gas in the Danish part of the North Sea. Since production is decreasing, there is available capacity, which can be taken advantage of by small fields. The task is to ensure that the owner of the rights for the small field will receive fair terms of use of the plants. If not, small discovery opportunities will not be investigated, and the oil companies will use their investigation resources elsewhere.”


The government has announced that in co-operation with the industry, it will focus on ”a long-term strategy for implementing the optimisation of the recovery of oil and natural gas in the North Sea on a commercial basis.” Can you reveal already now some of the elements you believe are essential to include in a long-term strategy for the North Sea? ”Somewhat simplified, we can say that the strategy will have an underground part,

which will deal with the way we will recover a greater portion of the known oil and gas in the fields. In addition, there will be a part, which relates to how the processing and the transport system can be optimised in the future. As mentioned above, there is overcapacity today. In addition, many of the plants are old, so there is a need to think through the future infrastructure. In this context, emphasis should be placed on optimising energy efficiency in the future processing and transport system. The energy consumption saved is equal to costs saved.”


Danish oil and natural gas is difficult to recover when compared with the possibilities of the Norwegian and British continental shelf areas for example. On the other hand, the difficulties have created a success story for the export of Danish technical solutions. How can the government ensure the continued growth of the export of Danish oil and gas technology? ”The oil companies operating in the Danish part of the North Sea have had to find solutions to the challenges of a difficult geology. The best basis for the continued


Danis busin h Engin ee ess c onfe r´s Asso ciatio rence n´

growth of exports of Danish oil and gas technology will be to ensure the maintenance of exploration and production activities in Denmark. A new call for tenders will contribute to the investigation activity and thus the production of new resources.” ”Serious research work concerning the current Danish challenges to increase the recovery rate will in the long term be able to lay the foundation for a further increase in the export of technology.” ”Danish companies have also been at the forefront with inexpensive expansion solutions and horizontal drilling, which could produce more per invested DKK. A future focus area could be energy efficient solutions, where the energy consumption is reduced in processing and transportation. It is essential, however, that new solutions are also good with regards to safety and the environment,” states Martin Lidegaard. 





3 Oden se Thurs Congres day 2 th s Cent 8 no er Frida y 29 th v novem ember & ber

Management and Technology The Danish Engineers´ Association´s business conference Ajour 2013 focuses on Management and Technology – and the contribution of engineers to the growth of the offshore, oil, and gas industries. By attending, you will acquire new knowledge and inspiration from more than 30 presentations focusing on such areas as the Danish offshore industry, the requirements for the future exploration and production of oil and gas, Maersk Oil’s oil and gas activities in the Danish sector of the North Sea, and the role of natural gas in the future energy system. Furthermore, you get the chance to strengthen your professional network and experience a wide selection of the latest technology in the exhibition area – with up to 150 exhibitors. Meet among others:

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Jens Holm-Nielsen, Senior Vice President, and Carsten Nielsen, Vice President, Semco Maritime A/S: The developments in the Danish offshore industry

Karsten Jensen, Asset Executive: Maersk Oil’s oil and gas exploration in the North Sea

  Recovering from fields with high production costs require the development of new methods, which can make them commercial Martin Lidegaard, Danish Minister for Energy

Kristian Lund Jepsen, Senior Chief Consultant, Rambøll Oil & Gas: Exploration and production of oil and gas

Torben Brabo, Vice President, The role of gas in the future energy system

View the full conference programme and register now at

Oil Gas Denmark — 10.09.13  13

The Danish North Sea

– a sea of complex oil fields 41 Years. That is how long oil and gas has been produced in the Danish part of the North Sea, and there are still many more years to come. In the future, the task will be to continuously maximise production from the mature fields and unlock the remaining potential in hard to recover deposits. Above all, this requires the development of new technologies, sufficient supply of experts and a stable and supportive regulatory framework Text Steen Laursen & Ulla Lena

The Danish part of the North Sea has been explored, and there are no more easy pickings. Danish oil and gas production will face technological and commercial challenges in the future. Innovative measures need to be taken to get the most out of the mature fields in production; producing from deeper, High Pressure High Temperature fields and finding new ones. Success in unlocking these hard to get resources will prolong the energy self-sufficiency and secure prosperity in Denmark. But even if the oil fields of the future will be smaller and hard to recover, they may very well be profitable under the right circumstances. Operators in the industry, research centres and regulators need to work together to support this goal.

New and smaller oil fields In the coming years, continued production

from the older oil fields will be supplemented by oil from new, challenging and marginal oil fields. Today, DONG Energy is engaging in finding innovative, yet safe ways to bring complex and demanding fields like Hejre into production whilst at the same time not losing sight of the large potential left in the smaller more, marginal fields – especially near existing infrastructures. The Country Manager for Danish operations at DONG E&P, Flemming Horn Nielsen, explains: ”Financially, marginal fields can rarely support a stand-alone platform, but for the most part they can make commercial sense if they are hooked up to an existing platform. This is our ‘vacuuming’ strategy in the Siri area”. “We have been very successful with the small fields around Siri. Over the years the value generated by these small fields has

“The future looks promising for the oil and gas production of Maersk Oil and Gas in the Danish North Sea. Approximately 19 percent of the oil has been produced, and estimates show that there are significant quantities left,” says Country Manager for the Danish operations at Maersk Oil and Gas, Mark Wallace.

14  Oil Gas Denmark — 10.09.13

approached the value of the original Siri field. This has been achieved by having skilled employees with deep local knowledge of our reservoirs who successfully explore for smaller near-field opportunities and exploit the existing Siri infrastructure in order to make cost-efficient tie-backs to the central Siri platform. We have made the Siri platform into much more than what was originally intended with the initial investment decision. ” “The challenge in learning lessons from this success story on a national scale is to establish conditions that ensure the right incentives for all operators to explore for and develop these marginal fields. And we have to get them up and running in time in order to use the existing infrastructure”

A promising future: Significant quantities left in mature fields It is one thing to produce from new and more marginal fields, but another matter is getting the most out of existing mature fields already in production. In order to be able to produce more than 27 percent of oil in place, which is the current average oil recovery factor on the fields in the Danish Continental Shelf, new knowledge and improved methods will be required. Mark Wallace, Country Manager for the Danish operations at Maersk Oil and Gas, says: ”The future looks promising for the oil and gas production of Maersk Oil and Gas in the Danish North Sea. Approximately 19 percent of the oil has been produced, and estimates show that there are significant quantities left. To increase recovery, we are working on maximising production from our mature fields, ensuring that additional development projects will become commercial production as well as conducting our planned exploration. In all three areas,

“Financially, marginal fields can rarely support a stand-alone platform, but for the most part they can make commercial sense if they are hooked up to an existing platform,” says Country Manager for Danish operations at DONG E&P, Flemming Horn Nielsen. Here seen with Strategy, Planning & Branding Manager at DONG Energy, Anh Vu.

it is essential for us that we continue to gather data and investigate new technologies in order to be able to recover the oil and gas efficiently and economically.” Several of the fields in the Danish part of the North Sea have been producing for decades. An example is the Dan field, which has been producing for 41 years. Water injection is one of several methods used in this oil field to increase production and the oil recovery rate. By pumping water down under high pressure into the chalk reservoir, the oil will be pushed towards a production well, where it is collected.

Hard to recover oil and new technology Today, most of the oil and gas produced in Denmark comes from either tight limestone layers or from very thin sandstone layers. Historically, the development of the Danish Sector started off with the limestone layers. As the limestone fields have matured, Maersk Oil and Gas is also focusing on oil fields which are harder to get to and which can be developed commercially. Mark Wallace explains: ”In our quest for more oil and gas, we are working downwards into more complex and challenging reservoirs, which are located deeper and often below existing fields. Among other things, this is what our future exploration programs and current projects must be able to identify as potential reservoirs. At the same time, it is also a matter of finding new technologies which can be used to increase the recovery rate”. Such future technologies may be CO2 injection. This is efficient, as CO2 makes it easier for the oil to pass through the tight limestone, but it is also a long-term project, because it is very complex and extremely costly. Other technologies which could be matured further include new nanotechnologies, modern polymer types or novel use of specially designed enzymes. Danish research centres can play a leading role here in linking industry needs and technology advancement. Also, synergies between various high-tech industries could make a real difference.

A future in high temperature and high pressure oil fields In the search for new resources, exploration in the deeper and more complex parts of the subsurface has proven prolific and holds high hopes for the future. As fields

become deeper, they also become hotter and under higher pressure. DONG Energy is working to develop these so-called HPHT-fields, which require more advanced methods to build and operate. Flemming Horn Nielsen explains: ”Technological advances have been crucial in our current development of the HEJRE oil and gas field, which is the first HPHT-development in the Danish waters. Oil and gas flow from a reservoir where the pressure is 1010 bar (similar to the crushing pressure at the bottom of the deepest oceans on Earth) and the temperature is 160 degrees centigrade (above the boiling point of water), and poses a considerable challenge for our drilling operations, machinery and equipment. Thus, nurturing and attracting disciplined, skilled employees is constantly in our focus.”

A stable, regulatory framework and supply of the right equipment A key factor determining whether the remaining potential of the North Sea will be fully realised is the regulatory framework. The oil and gas industry operates with extremely large and long-term investments. All thing being equal, due to the small and difficult fields left in the Danish part of the North Sea, it will become more expensive to produce the remaining oil and gas. Thus, it is essential that the oil companies have confidence in stable regulatory conditions far into the future. Too much uncertainty can scare investors away from the Danish Continental Shelf. Anders Nymann, country manager for Hess Denmark, says: “The promise we see in the Danish North Sea is reflected in our commitment to re-developing the South Arne field. In

the last three years, along with our partners DONG Energy and Danoil Exploration, we have invested over USD 1 billion in further development of the field, building two new wellhead platforms, a pipeline bundle and drilling 11 new infill wells, with the aim of further enhancing production. Given the right conditions, we are hoping to further develop the field over the coming years” “Hess Denmark is interested in participating in the Seventh Licensing Round . But to further invest in a significant scale we need recognition from the government that retroactive alterations to regulatory conditions will not be made.” A second challenge is that the supply of proper equipment is scarce. Small oil fields require cost competitive rigs, and they can be difficult to obtain. This set of problems is delaying work on the new oil fields, explains Graham Goffey, country officer for Denmark in PA Resources: ”Right now we are developing an oil field and have been looking for a suitable drilling rig for 15 months. The problem is that we cannot use rigs from the Dutch or the English sector, because they do not meet the Danish regulations. If we are going to use them, we will need to upgrade them to the tune of several million dollars. I am not at all talking about lowering standards in the North Sea, but it would be good to have a solution, that would make it easier to bring rigs in from other sectors.” Norwegian and Danish regulations are already compatible, and there are plenty of suitable rigs in the Norwegian sector. However, there is so much oil in Norway that they can sign long term contracts and operate for years without interruption. That is much better business for them than moving around between small oil fields in Denmark.  Oil Gas Denmark — 10.09.13  15


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The challenging North Sea continental shelf area creates massive exports There is no way of getting ”easy oil” up from the Danish continental shelf area in the North Sea. However there has been the advantage that Danish suppliers to the oil and gas industry have acquired knowledge and technology, which puts them in demand all over the world Text Keld Broksø

there was the exhibition ”Offshore Europe In Aberdeen,” where Danish companies made their mark with a 150 square meter pavilion, organised by the Danish Offshore Energy Group, a part of the Export Association. ”Danish companies have a head start with technologies that increase the recovery rate. They have been forced to work with them for several years, because the recovery rate is not as large as in Norway for example,” notes oil and gas business manager Merethe Wrang from the Danish Offshore Energy Group in the Export Association, which coordinates the Danish participation in the exhibition. ”If you do things smarter, chances are good. The Danish companies are good at being innovative. This is precisely why there has been a favourable development Strict environmental requirements put the Aalborg company ITW Densit to the test in the North Sea. From the beginning of the 1990s, the company went offshore with for the Danish techits high-strength concrete, which is precisely suitable for offshore. In the front is nology firms. All Rasmus Stæhr from the company, who is a supervisor with ITW Densit, which has supplied a set of mixing equipment. things considered, many countries around the world have great respect for niques for recovering from marginal fields, Danish competencies,” says Merethe Wrang. which the Danish North Sea is rich in. These skills are not only in demand in Denmark, but also in other places around Danish technologies abroad the world where oil recovery is complex. The Danish branch of the global group ABB In addition to the British and Norwegian has had particular success with the develparts of the North Sea, the United Arab opment of sensor technology and safety Emirates have also raised their ambitions systems for the offshore sector. The area is for production from older oil fields, where a large department at ABB, which is a leadthe oil is no longer as accessible. The Daning group in those power and automation ish embassy in Abu Dhabi now has 19 Dantechnologies which have the least possible ish oil and gas companies registered on its impact on the environment. ABB supplies list in the Emirates. the entire industry, and offshore is only part ”In short, the export potential is enorof the work for the 145,000 employees in mous, and Danish suppliers have succeeded approximately 100 countries. ABB in Denin capitalising on the North Sea experience mark has some 600 employees, and Business around the world,” notes Ulrik Dahl, ManagDirector Carsten Sørensen believes that the ing Director of the Export Association, which Danish offshore technologies from ABB have is the country’s largest organiser of exports been designed as a direct result of the chaldrives. For example, in September 2012 lenges in the Danish continental shelf area. The Danish service and supplier industry has grown up with difficult conditions in the Danish continental shelf area in the North Sea, where there is no easy oil. The solid limestone in the Danish substratum has been a challenge for the recovery on the Danish continental shelf area. However, it has given Danish suppliers a competitive advantage, because they have been forced to develop innovative and cost-effective tech-

18  Oil Gas Denmark — 10.09.13

”We can now export solutions to a greater extent through ABB’s global oil and gas organisation,” says Carsten Sørensen. The sensor technology for example, can measure pressure, temperature, flow of oil and gas, and the information can be integrated into the intelligent management of the overall process application. ABB has a lot of experience in safety technology. This applies to software systems for alarm management, so you can get an overview of and analyse the different types of alarms, which arise on a platform. ABB in Denmark has the global responsibility for the development of these solutions for the oil and gas industry. ”Both technologies support the requirements of the oil companies for high safety levels and uptime, as well as maximum recovery from the oil fields,” explains Carsten Sørensen.

Rambøll contributes to taking better advantage of the oil An environmental project, which also points to the future for exports, is a project led by Aalborg University and supported by Rambøll Oil & Gas in cooperation with Maersk Oil and Gas. The project, which started in May and will run for three and a half years, will increase production efficiency and ensure a better separation of the oil which is recovered at sea. Although the oil companies are doing everything they can to reduce the environmental impacts, a small portion of the oil is discharged back into the sea after recovery, and the goal is to reduce the oil content in this discharge water. The technique is a newly developed software, which regulates and eliminates the weaknesses of the individual systems and gets them to work together as one large dynamic system. ”This process technology has great business potential both at home and internationally,” believes Bo Løhndorf, who is Senior Cheif Consultant at Rambøll A/S. The project which is called ”Plant-wide De-oiling of Produced Water using Advanced Control” has a budget of DKK 10 million, of which the Danish National Advanced Technology Foundation has invested DKK 5 million. Rambøll supports the project by pooling time for sparring and development, concurrently with the research of the university having to be translated into practice. 


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New OGD Chairman proud of the Danish oil nation The new Chairman of Oil Gas Denmark, Vice President of Maersk Oil and Gas, Troels Albrechtsen, will help to ensure future investments in new technology and new projects. He calls it a great success that Denmark has become known as an oil nation. Foreign countries must learn to use Oil Gas Denmark as a gateway to the Danish oil and gas industry, as there is the potential for more growth. ”It is a question of baking a bigger loaf,” he says Text Keld Broksø

Maersk’s headquarters at Esplanaden in Copenhagen is currently the workplace for Troels Albrechtsen, the new Chairman of Oil Gas Denmark and Vice President of Maersk Oil and Gas, after having worked a dozen years with Maersk Oil and Gas’ international activities in Qatar, Great Britain, West Africa and Latin America. With fresh impressions from abroad, Troels Albrechtsen states with confidence that Denmark is making its mark as an oil nation which can export technology and raw materials, and still have great potential for more growth. ”Denmark’s special way of achieving results is known abroad. Our niche technologies, which have been developed here, are recognised. The technologies are not easy to replicate, and that is why they are a competitive advantage in the world around us. We are proud of that and of the entire significance of the Danish oil and gas sector. Internation22  Oil Gas Denmark — 10.09.13

ally, Denmark is now known as an oil nation in oil and gas circles; not a large one, but an important oil nation due to our technologies and our service enterprises. It is nice to see that they are able to develop exports.” How do you see the possibilities for more growth in the sector? ”They are good. We have invested a great deal in the North Sea, and many oil companies still see a potential for investing both in increased exploration and in improved recovery in the existing oil fields.”

Education at the forefront Denmark is known for difficult oil fields. What can Oil Gas Denmark do to ensure the continued technological development for recovery from these oil fields? ”Among other things, we can continue to keep an eye on our cooperation with educational institutions for example. DUC has

agreed with the government to create a research centre as a part of a future, longterm strategy. Here, the purpose is to bring together efforts and coordinate projects, which can contribute to increased recovery. It should also help in ensuring the continued supply of talent that can contribute to the development of the industry.” Should Oil Gas Denmark also put pressure on the industry to take on more people such as Ph.D students and marine engineering students in internships for example? ”It is possible that Oil Gas Denmark has a role to play here, but I see it more as our role to ensure an awareness of the many job opportunities in our sector.” It is difficult to attract sufficient numbers of qualified people in the industry. Specifically, what can Oil Gas Denmark do in addition? ”It is an incredibly exciting place to work with a lot of career opportunities. Among other things, I believe that Oil Gas Denmark can provide an important input to high schools and perhaps even primary schools. We can consider information campaigns along the way which are easy to access. Current teaching materials with which to create interest are highly inadequate or non-existent. As chairman, I

The Danish oil and gas industry has created an historical success believes the outgoing Chairman of Oil Gas Denmark, Franz Willum Sørensen, shown here on a visit to a drill rig with former Danish Minister of the Environment Karen Ellemann (V). Photo: Scanpix

We have invested a great deal in the North Sea, and many oil companies still see a potential in investing both in increased exploration and in improved recovery in existing oil fields, says the chairman of Oil Gas Denmark Troels Albrechtsen. Photo: Maersk

would be very open to a dialogue with the education sector.”

More recovery

The Ex-Chairman:

We need to build on a historical success When Franz Willum Sørensen, Vice President of Maersk Oil and Gas, steps down from his position as chairman of Oil Gas Denmark to spend a year in the USA, he will in particular be happy about the support that the organisation enjoys, and that we have come closer to a broad understanding of the oil and gas industry Text Keld Broksø

We had a recovery rate of 14 percent in 1990 and 27 percent When Vice President of Maersk Oil and gas, in 2011. Can OGD set a realistic Franz Willum Sørensen, steps down from the pogoal for what it may be in 10 sition as chairman in Oil Gas Denmark to spend years? a year in the USA at MIT, Massachusetts Institute ”Oil Gas Denmark can set of Technology, it is with a good gut feeling on bestrategic objectives, which are half of the organisation and its members. Having higher than 27 percent at any a common organisation in the form of Oil Gas rate. But two things determine Denmark has meant a great deal for the industry how high we can go: technology and the perception of the sector. and finance. In principle, we can ”It is the members, who must say what Oil increase recovery significantly, Gas Denmark has meant to them, but I believe if it is profitable. It is a question that externally, we have created a better unof oil prices and whether the exderstanding of the industry and the potential pense of new projects is affordable that we have. That was the goal of all this, in relation to oil prices. The sector and I believe that we have taken a significant is trying to move that limit all the step, but we still have a lot to do. At the motime by creating new technologies ment we are looking back on how much and by becoming better and more efoil and gas we have produced, but lookficient. This is the way to increase reing forward is what is interesting.” covery.” They say that if the recovery rate is What are the most important things increased by 1 percent, it will result in a that Oil Gas Denmark has achieved? production value of DKK 80 billion, and ”That we now have wide supthat will result in 1,400 jobs. Can those figport from the entire industry ures not be used as a political pressure to with suppliers, operators benefit the industry? and license holders. ”The politicians are fully aware of that. That means that we But we can continue to create an awareness have an overall of this being a question of baking a bigger loaf. The better conditions are for the industry, the bigger the loaf, and the greater the benefit to society. Sometimes the political point of view concerning the distribution of

common representation of the industry. It is essential that in the future we also have a broad understanding of the significance of the oil and gas sector in Denmark. As mentioned, we are not quite there yet, but to a large extent, we can be pleased.” Now, as you are passing the baton to Troels Albrechtsen as the new chairman, what do you see as the biggest challenges ahead? ”The challenge is to look forward. How do we take advantage of the possibilities and the potential? Will we disseminate the career opportunities that are in the industry? Will we cover the needs for investments?” Denmark is an oil nation, albeit a small one. What strengths have been especially developed as a basis for the potential that can be taken advantage of in the future? ”The Danish oil and gas industry has created a historical success. We have done so by adapting technology, so that we can produce oil and gas from the Danish continental shelf area. We have also made the necessary investments, so we will see a continuos production from the Danish subsoil. We must build on that,” says Franz Willum Sørensen. 

Oil Gas Denmark — 10.09.13  23

...proud of the Danish oil nation earnings is too narrow, rather than seeking to provide solutions which increase benefits to society. But in general, for us it is a question of having stable framework conditions. Predictability is essential for an industry that invests 10 to 20 years in the future.

Denmark must ensure foreign investments Difficult oil fields, taxes, etc. can speak against foreign investors making invest-

  In principle, we can increase recovery significantly, if it is profitable. It is a question of oil prices and whether the expenses of new projects are affordable in relation to oil prices Troels Albrechtsen Chairman of Oil Gas Denmark

ments in Denmark instead of Great Britain, Brazil, or any other place. Can Oil Gas Denmark contribute to Denmark continuing to be interesting for foreign investors? ”It is a great challenge, and Oil Gas Denmark must contribute to strengthening the Danish oil and gas sector. It gives credibility, that we, like our foreign sister organisations, now can offer an overall voice for the industry in Denmark, a place where newcomers can also become members. It is of great importance, that we can give companies an easier start. When investors look at Denmark, we offer a single gateway to enter. In Oil Gas Denmark, they will see a common industry organisation, so they will not be on their own. Oil Gas Denmark will also be the place where foreign investors or companies can receive help, if they need further guidance. It is also fruitful, that ministers and officials have one place, where they can enter into a dialogue with the industry.” What do you see as the main challenges and opportunities for Oil Gas Denmark during your period as chairman? ”The most important task is to create a good and trusting cooperation between all the players involved in the Danish North Sea, that is the operators, the partner-

ships and the service enterprises, so that together we can contribute to developing ourselves and maximising the underground resources.“ “The oil industry is special, because it enters into partnerships with its competitors. As an industry, we have an understanding of the importance of partnerships and knowledge sharing. We are better together, rather than separate. This must bring us forward in the development of the Danish North Sea, which will offer still more economically marginal opportunities. We need to be imaginative and to inspire one another to get good ideas. Good ideas will continue to be the driving force, just as the costs are essential for progress. We must all contribute to keep costs down. I am not necessarily talking about keeping costs down, but about continuing to redesign and find smarter, better, cheaper and more efficient solutions. For Oil Gas Denmark it is about finding the areas where we can work together and find common ground. For example, it is about safety and the environment for employees and platforms, education and training initiatives, as well as the branding of the entire industry,” says Troels Albrecht­sen. 

North Sea oil is part of our future

”When training as a professional within oiland gas exploration you will actively contribute to maintaining the level of welfare of the Danish society for years to come”

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24  Oil Gas Denmark — 10.09.13

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The Danish Minister of Education:

More students ought to take an offshore education

With new initiatives, the Danish Minister of Education, Morten Østergaard, will ensure that the shortage of skilled labour will not set growth back in the oil and gas industry. In his replies to 5 sharp questions, he encourages companies in the oil and gas industry to get involved in educational programs concerning internships and larger project assignments, as the minister believes that there is much to be gained by investing in educational programs

The Danish Minister of Education, Morten Østergaard, believes that companies in the oil and gas industry have much to gain by engaging in educational programs. Photo: Scanpix

Text Keld Broksø


The government has set the scene for a long-term strategy for Danish oil and gas recovery in the North Sea. Meanwhile, the offshore industry is seeking highly educated workers. What roles are played by education in relation to taking advantage of the potential of the North Sea? ”The government is very concerned with ensuring that we comply with the skills required by the offshore industry. The shortage of qualified workers must not set back growth. The government set up a task force in January 2013 to focus on this specific issue. The task force consists of representatives from parties in the offshore industry, as well as educational institutions. The task force has held seven meetings and presented its proposals for initiatives to the minister just before summer.”


The offshore sector is a good career opportunity for young people, because there are jobs available and a good salary on top of that. How can you as minister for higher education get more young people to take an interest in the industry?

”The last few years we have seen an increase in the number of students in the technical and engineering science programs. It is very positive and shows that the young people of today are deliberating sensibly, and applying for admission to educational programs with good employment opportunities, as well as in business sectors where there is a shortage of highly skilled labour. Last year’s admissions also saw an increase in geographic variation in relation to where the young people chose to take their education, which benefits these young people, local districts and Denmark as a whole.” ”My most important task is to ensure that the institutions for higher education have absolutely optimal frameworks for providing high quality and relevant educational programs. I am convinced that the first step on the road to strengthen recruitment is to ensure that our educational programs are attractive and are perceived as relevant, with dedicated teachers, who base their teaching on the latest knowledge

and developments in the field. That said, I will enter into a dialogue with the industry together with relevant parties to help promote the awareness of the technical programs for young people at secondary schools. For example, we are now in the process of looking into how we can best develop the HF (higher preparatory) maritime education, so that even more young people see it as a good springboard to a career at sea or on land. In addition, it is important that the industry itself works with recruitment. The portal of Blue Denmark, which is called WorldCareers, has made a great effort to raise the level of awareness of Blue Denmark among young people.”


The oil and gas industry employs 15,000 people, and 54 percent have a higher education. Can educational institutions do more to promote career opportunities in the oil and gas industry? ”I think there is much to gain by ensuring a good interaction between the industry and the institutions for higher education conOil Gas Denmark — 10.09.13  29

More student ought to take... cerning the educational programs. The companies in the oil and gas industry have much to gain by engaging in the educational programs, for instance by offering internships or cooperating with the students in larger project assignments. It is a way in which the companies can make career opportunities visible. I would also very much like to see the universities ensure that teachers and researchers to a greater extent have the possibility of being mobile. For example, situations where they could be employed in a private company for a period and then move back to the universities. It gives the teachers first-hand knowledge of business life, which naturally will filter through to the students’ knowledge of a career in the private sector.”


What do you think is crucial for young people’s choice of education and career? ”Sociologists, who deal with the educational choices of young people, have described the young people’s choice of education as a balance between, on the one hand, the question of, ”what am I interested in”, and on the other hand, ”what – and who – do I want to be?”, in other words, job opportunities, salary, advancement potential, opportunities for a family life, etc. I think that describes the considerations of young

  The companies in the oil and gas industry have much to gain by engaging in the educational programs, for instance by offering internships or cooperating with the students in larger project assignments

people today very well, when they have to choose an education.” ”As a minister, I am very concerned with ensuring that young people make the most qualified choices possible, and that they end up in the right place from the beginning even more than is the case today. In Denmark, we have too many people who drop out from the programs and choose something else. Among other things, that is why I have prepared the basis for talented high school students to have the opportunity of taking subjects at institutions of higher education as part of a strengthened talent effort throughout the higher education sector, just as I am in dialogue with the educational institutions to increase the use of admissions examinations and admissions interviews, so that the institutions will recruit the most suitable and most motivated for their educational programs to a greater extent than today – both in relation to the individual program, but to a large extent in relation to the labour market, which the students will subsequently enter into and work in.”


Do you think that the state should increase research funding in oil and gas in order to take advantage of the the potential for growth of the North Sea? ”In general, the government prioritises research, development and demonstration activities in the energy sector very highly. In an international context, Danish public funding in the energy sector is high, and more than DKK 1 billion are used for this purpose. The overall goal of the efforts in this area is that Denmark must be a society which is independent of fossil fuels by 2050. It is important that we invest in renewable energy in order to achieve this target by 2050, and that research efforts are

Morten Østergaard Danish Minister of Education

steel solutions built for

the future

30  Oil Gas Denmark — 10.09.13

focused on the development of renewable energy technologies and systems with large future market potentials which involve Danish companies. We must also become better at recovering oil in the North Sea.” ”As an example, I can mention that the Danish National Advanced Technology Foundation has allocated funds for a project, which will increase production efficiency and ensure a better utilisation of the oil, which is recovered at sea, as well as for a project, which has the purpose of developing tools to manage recovery from the large oil and gas resources, which are so deeply buried under the North Sea, that they have been too expensive to recover until now. As part of the ”Plan for Growth DK – Strong Companies, More Jobs”, the government will work to ensure that there will be a longterm strategy for implementing the optimisation of the recovery of oil and natural gas in the North Sea on a commercial basis. An integral part of the overall strategy to increase recovery and profits from the Danish part of the North Sea is that a research centre will now be established at DTU with an emphasis on oil recovery techniques. The centre will be financed by the A. P. Møller-Maersk, Chevron, Shell and North Sea Foundation, which are the four parties in the Danish Underground Consortium. The intensified research and development efforts in the context of the centre will be directly aimed at improved Danish production and earnings for the benefit of both the companies and the state.” 

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Director of Graduate Studies, Alexander Shapiro, from DTU keeps an eye on the master’s program in engineering in oil and gas technology. “Admissions into the program is growing rapidly year by year, and virtually all of our candidates who graduate, find jobs,” he says.

Great job security in the offshore industry

The oil and gas sector needs highly qualified engineers, marine engineers and other technicians. DTU and the schools of marine engineering have targeted educational programs. Candidates with an education in oil and gas, typically get jobs right away. The politicians have also caught sight of this Text Keld Broksø & Ulla Lena  Photo Jeanne Kornum

At, a Danish online portal for studies and education aimed at young people who are selecting an education, it says the following about the oil and gas industry: ”for the time being there is a general need for people, especially engineers and marine engineers”. This is almost an understatement, as it is a fact that there is a huge demand for workers in the oil and gas sector in the entire area surrounding the North Sea. Right now 11,000 technicians are needed at all levels in the Norwegian offshore industry, and the Danish engineering association, IDA, estimates that in 2025 there will be a shortage of more than 20,000 engineers in the Danish labour market. At the Technical University of Denmark (DTU) in Lyngby, which offers a master’s degree in oil and gas technology, it looks as if more young people have caught sight of the career opportunities in the oil and gas industry. The program, which deals with planning, production, research, development and consulting, has an increasing number of students. ”When I started three years ago, we had three students. The latest class holds about 45 and roughly 70 are applying for next semester. We are cooperating directly with the oil companies now, and put on semi32  Oil Gas Denmark — 10.09.13

nars and CV databases for students. Virtually all of our candidates who graduate find jobs,” says Alexander Shapiro, who is director of studies at DTU.

Room for more at DTU And there is room for more students. ”We could easily have 20-30 additional candidates. However, if we were to have yet more students, then we would need more teachers,” says Alexander Shapiro. 15 out of the 50 students enrolled in the master’s program to become an engineer in oil and gas technology are Danish, and that surprises Alexander Shapiro, who is Russian himself. He thinks interest from young Danish people may be held back, because they perhaps believe that oil and gas will be depleted soon and that everything after that will be related to green energy. ”But none of that is true,” points out Alexander Shapiro and continues to explain that it is important that young people who are selecting their education and career have that knowledge. ”We are doing things to provide information about it in high schools, for example, via the game PetroChallenge, which is an offer from the Center for Energy Re-

sources Engineering (CERE), at DTU, with sponsorship from DONG Energy and Maersk Oil and Gas (the game can be seen at Our message is that there are exciting jobs in the oil industry, which is here to stay – for many years to come, at least. At DTU we are doing what we can to attract new students, but there is an image problem,” acknowledges Alexander Shapiro. You can be an engineer in oil and gas technology, if you have a bachelor’s degree in construction, electrotechnology, environmental technology or software technology for example. The most important thing is that you have a solid background in mathematics, thermodynamics and physics.

Marine engineers are sought after The increasing demand from the oil and gas industry is also felt at the schools of marine engineering. This has caused many schools to develop an elective curriculum in offshore. Among them is the Copenhagen School of Marine Engineering. ”We will create a recognisable curriculum for the industry. The plan is that we will have the curriculum ready by the beginning of next year. We have students, who already want to take it now. For the time being, we are sending them to the Fredericia School of Marine Engineering, which was the first to offer an offshore curriculum,” says Arne Jakobsen, who is associate dean at the Copenhagen School of Marine Engineering. Dean Torben Dahl and elective curriculum coordinator Ole Björn Månsson from the Fredericia School of Marine Engineering have contributed to creating the elective curriculum in offshore, which is called ”Energy at sea”. ”There was a labour shortage in the offshore industry already for a couple of years

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...Great job security in the offshore industry ago, while the rest of society was busy talking about unemployment and green energy. But then I got to talking with offshore companies such as Maersk Oil and Gas and DONG Energy. They wanted marine engineers, but wanted the new graduates to be given specific skills. We have had this specialisation for one year now,” says Torben Dahl. ”We propose that the students take part of what we are offering in Fredericia, and offer it as an elective module at the other marine engineering schools,” reports Torben Dahl. The module provides skills, such as drilling and processing. ”The module is not only meant for going out on a rig or an oil processing platform. It is directed generally at a career in the oil and gas industry,” says Torben Dahl. Approximately half of the students at the Fredericia School of Marine Engineering are now choosing the offshore elective curriculum. Last year, 98 percent of all graduates found a job. The Fredericia School of Marine Engineering would like to educate more marine engineers, but there is a limit to the number that can be accepted. ”We have a quota for how many we may admit at each school of marine engineering. In Fredericia, we have to reject 50 students this year. It is the same at other

schools. It is a paradox, when we have full employment. If the politicians increase the limit, we will get them educated and thereby create more growth.”

Prospect of more marine engineers Per Jørgensen, who is the Chairman of the Danish Association of Marine Engineers, is pleased with the new elective curriculum and the prospect of more students. ”There is a shortage of labour in the oil and gas sector in all the Nordic countries, so the new elective subjects are good. The sector is in strong growth and will not be phased out now. The coming years will deal with both renewable energy and fossil fuels. For five years we have warned against too few marine engineers being educated,” says Per Jørgensen. He is also pleased that the limit will probably be increased in the 2014 budget, so that up to 2,000 marine engineering students can be accepted per year. ”But the market can absorb even more,” he believes. The Danish Minister of Education would like to educate more students for offshore The government, which is currently searching high and low for jobs and growth pro-

spects, has also been made aware that there is a potential for growth in the oil and gas industry, and that there is a shortage of people in the industry. Therefore, Morten Østergaard, the Danish Minister of Education, set up a task force earlier this year, where Oil Gas Denmark, representatives from the oil and gas industry, authorities and educational institutions were represented. The work of the group was to define barriers for growth and provide the minister with recommendations for tackling the shortage of workers in the offshore sector. The minister is expected to publish these recommendations in the autumn of 2013. 

  At DTU we are doing what we can to attract new students, but there is an image problem Alexander Shapiro Director of Graduate Studies, DTU

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”There are many possibilities”

As a student at DTU, Birgit feels confident in landing a job, when she is finished with her master’s degree in oil and gas technology Text Keld Broksø  Photo Jeanne Kornum

23-year-old Birgit Haastrup will be finished next summer with a master’s degree as an engineer in oil and gas technology. She is optimistic about the opportunities this education can provide for her. ”I would like to have an education, with which I can travel around the world. And things are happening in the oil and gas in-

dustry. Development is never at a standstill,” she believes. Development in the industry is not just something she believes in, it is something she has experienced. Birgit Haastrup made herself familiar with the conditions in the oil and gas industry, when she took a year’s break from her studies at the Technical University of Denmark (DTU) to work in a student job. ”I wanted some experience and to see if it was an industry, in which I wanted to be. I got a job in Liverpool, where I worked in an oil service company. Here I received oil samples from all over Europe. I analysed them and sent reports to sellers about the quality of the oil and suggestions for chemicals that we could sell in order to solve their problems,” she recounts. She has studied for three semesters, specialising in oil and gas. She will be finished in the summer 2014 with a master’s degree, which is a superstructure consisting of physics and nanotechnology. There have been many considerations in the choice of studies in oil and gas. ”Some rumours said that oil and gas would be phased out before too long, and the government is mostly talking about green energy. But now I know that there are ample reserves of oil and gas to last my entire career, and that oil and gas will not lose importance from one day to the next. Therefore, I also believe that the universities and engineering schools can

”It is a lifetime career” According to Martin Ring, all too few Danes are aware of the great opportunities, which a master’s degree in oil and gas technology from DTU provides Text Keld Broksø

For 28-year-old Martin Ring, the oil industry has always been close, because he grew up in Norway. When the family returned to Denmark, he brought his interest in oil with him, and is now studying at the 36  Oil Gas Denmark — 10.09.13

Technical University of Denmark (DTU) in Lyngby: ”My interest in oil was aroused in Norway. I could see that one is ensured a pretty good career in the oil industry, and there

  There are ample reserves of oil and gas to last my entire career Birgit Haastrup Student, DTU

make more publicity for the jobs which are abundant in the oil and gas industry. The oil will also be more difficult to recover. This means that we must work more intelligently, attach more researchers, and we need to have a greater interaction as well between the university world and the oil industry,” says Birgit Haastrup. In order for her to achieve her master’s degree in oil and gas technology, she must also have subjects such as rock physics, petrophysics, improved oil recovery and technology as well as the economy in oil and gas production. DTU encourages everyone to study abroad. DTU itself recommends various universities in the USA, the Netherlands, Australia, Germany, Great Britain and Norway, where different subjects can be taken as a substitute for mandatory DTU courses. Birgit Haastrup absolutely sees studying abroad as a possibility later on. ”There are many possibilities, both in Denmark and abroad. I have classmates, who have been offered jobs in oil companies even before they were finished. So there is not much hinting that I will be without a job. And if I end up working abroad later on, I will probably be able to combine it with a family life, when that becomes relevant at some point,” says Birgit Haastrup. 

are great travel opportunities at the same time,” says Martin Ring, who is well under way with DTU’s master’s education in oil and gas technology. He is in the third trimester of the master’s education and will be finished in January. ”You must have a bachelor’s degree, before you start the master’s education in oil and gas. And there is no bachelor’s degree as an engineer in oil and gas. So before this educational program, I studied structural engineering. And I was not aware of the fact that there was an oil and gas curriculum track six months before I started on it.” Martin Ring thinks that more attention

”Offshore is extremely exciting” When marine engineering student Ole Lykke Bjerrum heard presentations from the oil industry, he could see that he could have a career in offshore. The Fredericia School of Marine Engineering offers a curriculum track called ”Energy at sea”, which provides him with all the possibilities Text Keld Broksø  Photo Jeanne Kornum

30-year-old Ole Lykke Bjerrum took a bit of a detour before he ended up at the Fredericia School of Marine Engineering, where he is currently looking forward to finishing his education and thus being ready for his dream job in the Danish oil and gas industry. Initially he trained as a carpenter and worked for several years in Italy and Germany. But the crisis closed the carpentry company, and Ole wanted to try something else. Like his father, he has chosen to be a marine engineer and got into the Fredericia

  We had keynote speakers from the industry, and then I realised that one could create a lifetime position for oneself Ole Lykke Bjerrum Marine Engineering Student

needs to be given to the educational program. According to Martin Ring, all too few Danes are aware of the great opportunities, which a master’s degree in oil and gas technology from DTU provides. ”I was a little surprised, that Danes are so under-represented in the program. There are more international students than Danes in a semester,” says Martin Ring, who feels that he has ended up in the right place and that there will be plenty to do in the oil and gas sector for the rest of his life. ”I see it very clearly as a lifetime career, but not necessarily in Denmark only,” says Martin Ring.

School of Marine Engineering. The time of study has been four and a half years. Even though it has been a bit too long for Ole, it has been worth it, because he can be sure of a job, as the industry needs qualified workers. As one of the five marine engineer“It is a very good area ing schools in Denmark, of specialisation, say the 30 years old Marine neering Stunt Ole Lyk Engike Bjerrum, who is on the Fredericia School of his way to the offshor through Fredericia Sch e sector ool of Marine Engineerin “Energy at sea”. gs new educational trac Marine Engineering reck ognised that, and is now offering the new educaoffshore to begin with. But then we had keytional track ”Energy at sea”. It is targeted tonote speakers from the industry, and then I wards anyone, who would like to work in realised that one could create a lifetime posithe offshore industry. And it can be both in tion for oneself, also without needing to be the oil and gas sector. out on the ocean. Offshore is extremely ex”It is a very good area of specialisation. citing, and the industry has good opportuWe were the first class and the curriculum nities both at home and abroad. But I think needs to be adjusted a bit,” says Ole Lykke that my position for the first many years Bjerrum. will be in the Danish part of the North Sea. I The class started in January 2013 and have tried living abroad and now I also have the specialisation in offshore takes place in a young daughter at home, whom I have to the fourth and fifth semesters. think about. So the world must wait,” says ”Even though my father has been a maOle Lykke Bjerrum.  rine engineer, I did not know much about

He believes that the fact that it is not commonly known that Denmark is an oil nation, contributes to the low number of applicants for places in the program. Therefore, specialised Danish educational programs should be advertised more. ”The training at DTU could also contain a more comprehensive package of relevant disciplines. For example, we have had nothing do with drilling here, so there could be more practical oil related courses. It is expected that you learn the rest once you are out in the industry,” he states. 

  I was a little surprised, that we Danes are so under-represented in the educational program. There are more international students than Danes in a semester Martin Ring Student, DTU Oil Gas Denmark — 10.09.13  37


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From a busy fishing village to the energy metropolis of Denmark The story of oil in Denmark with Esbjerg in the leading role has strong perspectives going well into the future Text Kurt Henriksen  Photo Jeanne Kornum

The story of Danish oil has also become a story of Esbjerg, which has gone from busy fishing village to being an even busier oil town. Esbjerg has become the energy metropolis of Denmark and it is not a position that the city has arrived at by being asleep at the wheel. The only thing it had going for it, was its location. ”Basically, it was a question of being in the right place strategically, when it all began,” says Morten Hahn-Pedersen, Director of the Fisheries and Maritime Museum in Esbjerg and the author of a whole series of in-depth books and analyses concerning the Danish offshore industry. ”Esbjerg had the right combination of proximity to the oil fields, a suitable port depth as well as port facilities, an industry that could provide what was needed, an airport and an urban size, which convinced offshore people to settle here.” The first Danish oil was produced in 1972, and during that first year, the offshore activities were almost like a small, exotic feature in Esbjerg. The fishing industry was dominant, and directly or indirectly employed up to half of the working population.

”But at the same time, the fishing industry was undergoing a restructuring to fewer and larger units. It reduced the number of jobs for the local sub-contractors, who now had to be on the lookout for other markets. One of the markets was the growing offshore industry. Meanwhile, companies from other parts of Denmark and the rest of the world were looking to Esbjerg to take advantage of the oil money,” explains Morten Hahn-Pedersen.

A Buy-Danish-clause resulted in a boom A key turning point was the construction of the Gorm oil field in 1979. A Buy-Danishclause meant that half the order volume had to go to Danish companies. This led to the establishment of many subsidiaries by foreign and Danish players. Only five years later in 1984, the number of offshore jobs in Esbjerg had almost quintupled to approximately 1,100 jobs. ”Today, the figure is probably closer to 10,000 jobs,” estimates the director of the museum. His latest analysis from 2007 concluded that there are 9,000 direct and indirect jobs in the oil and gas industry in Esbjerg.

Another factor was crucial in its contribution to the development of the Danish oil industry: This was the so-called ”reverse oil crises” in 1986, when Saudi Arabia offered so much oil on the international market, that prices plummeted. ”The entire sector was under severe pressure. The key was to get more oil out of the ground at much lower cost. In the case of Denmark, this meant the transition from primary technology, which involved using natural pressure, to secondary technology: Horizontal drilling, water injection in the oil fields, satellite platforms, etc.,” explains Morten Hahn-Pedersen. Maersk Oil and Gas worked with the technology on a trial basis, and in the early 90s, it was ready to be implemented out in the fields. They also had to be in operation at the same time, and that was an extra challenge.

Moved to Esbjerg This led to the engineering department of Maersk Oil and Gas moving to Esbjerg in 1991. Morten Hahn-Pedersen points out that it was a crucial factor and one of the

Offshore is growing like rings in the water Esbjerg is undoubtedly the Danish powerhouse, but the offshore adventure has also spread to other parts of the country. In the town of Hirtshals, for example, there are major tasks in upgrading drilling rigs, including a Maersk rig in both 2011 and 2012, but ambitions reach further. ”We will never be as large as Esbjerg in this area. But we believe that by working together, we can create an offshore cluster up here in North Jutland,” says CEO John Kirketerp Jensen, The Port of Hirtshals. 40  Oil Gas Denmark — 10.09.13

”It is not a large and slick operation, but we have the space, the right facilities, and those who have been here, have been satisfied.” In practical terms, the cooperation is organised in Offshore Base Hirtshals, and the plan is to attract both rigs and other service jobs. Bladt Industries from the city of Aalborg has established itself at the former Lindø shipyard on the island of Funen, and has recently won a new, large order for foundations for offshore wind turbines. ”Naturally, we expect that this will lead

to more, and the facilities at Lindø give us good opportunities to involve ourselves in new projects,” says CEO Peter Rindebæk, Bladt Industries. ”With offshore in general, we are expecting some pretty high growth rates over the coming years. This will primarily be in our neighbouring markets in the UK, Germany, Holland/Belgium and, of course, Norway. And then of course we are looking on and off at some more global concepts, where we believe we have some skills.” 

most important focal points for the development of an energy metropolis serving all of Denmark. Not just geographically, but also technologically. ”Due to the move, the project engineers are also in close proximity with the subcontractors, and that results in a synergyeffect, which is developing Esbjerg into a competence cluster. It was a question of getting off the ground in the 90s, and then the boom came in the 00s.” This positive interaction gave the subcontractors both the courage and the skills to branch out internationally, for example by following Maersk Oil and Gas to Qatar. Here, the technology from horizontal drilling could be used, which was the basis of the entire operation in a difficult field. The next step will be deep water technology, which we believe can run in parallel with the technological breakthroughs in horizontal drilling, not just for Maersk, but also for a number of sub-contractors, who have now become internationally independent. ”The days of just following Maersk outside Denmark are long gone. Once you are out there, the possibilities increase,” concludes Morten Hahn-Pedersen. 

  Basically, it was a question of being in the right place strategically, when it all began Morten Hahn-Pedersen Director of Fisheries and Maritime Museum in Esbjerg Oil Gas Denmark — 10.09.13  41

Oil, gas and the changeover to sustainable energy In the middle of a period of changeover to sustainable energy, is it a paradox that we continue to concentrate on the recovery of Danish oil and gas? No, says Martin Næsby, Managing Director of Oil Gas Denmark, oil and gas are irreplaceable for many years to come Text Ulla Lena  Photo Jeanne Kornum


According to the government, CO2 emissions must be reduced by 34 percent in 2020. And in the Danish Energy Agreement from March, Denmark’s energy supply (electricity, heating and transport) will be converted to renewable energy by 2050. So the solution will hardly be more oil and gas? ”Well, yes, in a certain way. We are technologically far from being able to cover the world’s energy needs with green energy. This is why the conversion will also be expensive. The production of Danish oil and gas creates great value in Danish society, and a part of that value can be used to develop technology for green energy, if one wants to. We are talking about it being able to generate about an additional DKK 5 to 7 billion annually for the state during the period 2022-2042.”

2.   Denmark has been self-sufficient in oil and gas for 20 years, and we can be independent for at least another ten years, if we are clever enough to realise the potential Martin Næsby, Managing Director of Oil Gas Denmark 42  Oil Gas Denmark — 10.09.13

According to the Government, we must be independent of fossil fuels by 2050 - what about you? ”If we are independent of fossil fuels in Denmark by 2050, there will still be a significant demand for oil and gas in the global market. Thus, oil and gas production will be an even stronger contribution to Danish exports.”


But by freeing ourselves completely from oil and gas, we and others can also protect ourselves against dependence on energy from the Middle East and Russia. Is it then not correct to focus exclusively on green energy? ”The security of supply is high on our agenda, and that is precisely why it is important that we also provide a solid contribution from the North Sea for years to come. It is the best way to reduce our dependence on imported energy. Denmark has been self-sufficient in oil and gas for 20 years, and we can be independent for at least another ten years, if we are clever enough to realise the potential. We must

uphold our energy independence as long as we can.”


The UN’s Panel on Climate Change has more than 2,000 independent scientists as sources of information on global warming. 98 percent of their scientific articles point out that global warming is a man-made reality, in particular because of the consumption of oil and gas. Increased Danish production of oil and gas can surely not solve that problem? ”Denmark discontinuing production will not solve any climate problems. First of all, Denmark produces only 0.3 percent of the world’s total oil production. Secondly, the global demand for energy will still be there. It is a question of efficient consumption of energy during the long transition phase towards green energy. Another exciting way to go would be that in Denmark we will be allowed to use CO2 injections, as in Norway for example. In this way, we can help to solve CO2 the problem and strengthen the production of oil and gas at the same time.”


Oil and gas have a reputation for being the wrong kind of energy. What will you do to improve this image with people? ”We will approach that task with great humility. I believe that the image of the industry has to do with the fact that the knowledge of Danish oil production is not very great. The situation is different in Norway and Great Britain, where oil is part of the national identity. However, Denmark is also an oil nation, and on top of that the only self-sufficient country in the European Union. There are all kinds of reasons why Danes should be proud of it. Historically, Danish oil and gas production has created the basis for a very large prosperity in Danish society, and it still does! Last year it represented DKK 25,2 billion and 15,000 jobs. Not very many people are aware of that. The road to a better image begins with telling that story.” 

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A greater risk requires a greater focus The offshore accident in the Gulf of Mexico in 2010 cost human lives and massive pollution. The industry is constantly trying to acquire new knowledge and better safety from the event. And perhaps also a revised view of risk Text Kurt Henriksen Photo Jeanne Kornum

Offshore people think, live and breathe safety. 24 hours a day, all year-round, it is deep in the bones of all who work offshore: that you always keep at least one hand on the handrail on the steps, and should you knock over your coffee cup, then you fill out a report. But perhaps there has been too much focus on the smaller accidents, the small events that occur regularly, but which do not result in either large disasters or headlines. Should we not concentrate our attention on the very large accidents, which are very unlikely, but which will result in major damage, if they finally should occur? The question has been raised after the so-called Macondo accident in 2010, when a runaway oil well in the Gulf of Mexico triggered an explosion and a fire on the drilling rig Deepwater Horizon. Eleven people were killed, 17 were injured and 87 long days passed before the well was capped again. Millions of barrels of oil flowed directly into the ocean, and the pollution along the coast was massive. The American government quickly intervened with a number of new rules, and for the offshore industry itself it has meant a change in both the way of thinking and procedures. ”The lesson of the Macando accident is that it can still happen! We must learn from that kind of event, we must take it seriously and take action,” says Søren R. Jeppesen, head of QMHSE - Quality Management Health Safety Environment - at Maersk Drilling. ”When your neighbour has had an accident with his car, we think that he is also a clumsy driver, implying that it could not happen to me. But we just cannot use that way of thinking in the oil and gas industry. As an industry, we must recognise that it can happen to all of us. That is why we must take it seriously.”

Do not forget the most important part The lessons to be learned after Macondo were the theme of the annual safety con46  Oil Gas Denmark — 10.09.13

ference, which Oil Gas Denmark held in Esbjerg. Here, the head of Maersk Drilling was one of the people, who urged for a change in perspective with more focus on the rare events which can be devastating. ”The lesson learned is very different among operators in the industry. I still meet organisations, where you have the impression that they are more interested in the number of reporting cards than the quality of them,” points out Søren Jeppesen. ”It is also important to hold onto the handrail and have a lid on your coffee cup. But we must never forget the most important thing, namely that we are sitting on top of something that can take human life, if it is not handled by the book. ” At Maersk Drilling one of the direct consequences of Macondo has been an investment of more than USD 10 million in a very advanced drill simulator. It is a question of training, training and more training.

An important simulator The official report after the accident talks about ”robust analyses and planning, but poor decisions during execution”. The human factor failed, when it counted the most. So then what is the use of all the training? ”After all, things often go wrong when you are in ’the heat of the moment’ and everything falls apart,” acknowledges Michael Jeppsen. ”But that is precisely what we are trying to get a grip on with the simulator exercises: Now you are thrown in at the deep end: Let us see if you chose the right swimming stroke. And the advantage with the simulator is also that you can always rewind to study what happened, what went wrong and what you can learn from it.” Safety is also a question of economy for the offshore industry. Oil and gas is big business with huge investments, high risks and potentially large earnings. Or huge losses when something goes wrong

or production stands still. That is why Maersk Drilling’s investment in a simulator has an economic angle of course. But the safety manager reminds us that there is also an extra and very strong motivation to think in terms of safety. ”Of course we see business cases, also when it comes to a simulator, and it made sense in the long run, with regards to both security and economics. We are, of course, the ones with the greatest interest in securing our installations, because there are human lives and huge investments at stake. It is not the authorities, who must ensure that our units are safe to operate. We must do that ourselves,” clarifies Søren Jeppesen. He also dismisses the old prejudice that people on drilling rigs are special ’tough guys’, where there is still a bit of the old cowboy mentality. ”I myself came into the industry from shipping in 2007, and I have yet to meet

The goal must be that we get down to zero accidents. It is possible, but it requires a constant focus

“The lesson of the Macando accident is that it can still happen! We must learn from that kind of event, we must take it seriously and take action,” says Søren R. Jeppesen, head of QMHSE - Quality Management Health Safety Environment - at Maersk Drilling.

Finn Brodersen, Chairman for Oil Gas Denmark’s HSE committee

Better safety requires cooperation and a common approach to a safety culture Text Kurt Henriksen

a single cowboy. Not even on our unit in the USA! The industry has been through a major development, since that time when you could almost only be senior tool pusher, if you were missing at least one finger,” he says with a twinkle in his eye. And then we are back to the human factor. The unknown factor in all the technical equations and processes. Can you completely remove that factor from the equation in the future? ”The technology is not available today to let robots take care of everything. But we are trying to take the human factor out of the manual process, and there are virtually no people on the drilling floor any more. But we are not taking out the human factor, if the operator is merely sitting on land instead,” the Maersk manager points out. 

A common understanding, a common culture and more cooperation. This is the way forward to reach an even higher level of safety in the offshore industry. At the purely technical level, we have come a long way and the number of offshore accidents is low. If we are to move on, it will require further improvement of the safety culture and the mentality in the individual workplaces and of the individual employee, says Finn Primdahl Brodersen, manager of the safety work carried out by Oil Gas Denmark. ”The work with safety must be based on a common approach. Otherwise, many things simply will not be understood. By organising the work with a common understanding, we can give safety an upgrade, where it is needed,” explains the Chairman for Oil Gas Denmark’s HSE committee (Health, Safety and Environment), Finn Primdahl Brodersen, who is Head of QHSE & Regulatory Affairs at DONG Energy. Although the offshore industry has some very low accident figures, the ambitions of the HSE chairman go way beyond that. ”We are finding our feet in the common work in the context of Oil Gas Denmark. We would like to have common accident statistics for the industry and we must strengthen our cooperation with one other. The objective must be that we get down to zero accidents. It is possible, but it requires a constant focus,” says Finn Brodersen about his clear ambition. Some still see a systematic approach to safety work as something which is difficult to incorporate into a working day, where the job also has to get done. But it appears that safety work is also good business where it is performed. ”You can have many approaches to performing a task, and too often you just get started. Down the road you then find out

that perhaps you are missing a tool, some material or have overlooked some conditions, which must be solved, which delays the work and makes it more expensive. With that approach you “If we are to achieve zero personal accidents, we haven’t properly must work with the menthought about all tal component,” says Finn Brodersen, Chairman for the risks either,” Oil Gas Denmark’s HSE explains Finn committee. Brodersen. ”However, if you sit down with those involved and plan the individual steps towards the goal, then the work will be much safer. And then it turns out that the task will be completed ahead of schedule! Planning based on safety considerations simply keeps track of the processes.” Simple and logical, but this requires that the right culture is present. ”If we are to achieve zero personal accidents, we must work with the mental component,” emphasises Finn Brodersen. ”At the same time we must ensure that we have the right focus on process safety, so that we also avoid the major accidents,” adds Finn Brodersen. ”Over time, many have progressed to a level with technical equipment and systems for the storing and sharing of knowledge where they land on a plateau in the personal injury statistics, from which they cannot really move forward. So now we are at the point, where we need to get hold of the individual. We must have the proper mind set and the right culture to make the right decisions and to understand the risks, that are around us.”  Oil Gas Denmark — 10.09.13  47

The quest for Danish shale gas

No one knows yet if the substratum of Denmark contains shale gas. For the time being, test drilling must be conducted in Vendsyssel, and preliminary investigations must be made in North Zealand. The total budget for French Total is DKK 400 million million . If Danish shale gas exists, operators in the Danish gas industry can expect to see new orders. The amount of shale gas can prove to be even higher than the known Danish gas reserves in the North Sea

  With a

number of reservations, the International Energy Agency (IAE) believes that the Danish substratum may contain shale gas reserves of up to ten times the known, Danish gas reserves in the North Sea.

Text Ulla Lena

Shale gas has been given the nickname ”game changer” in the international energy industry, because it has changed the consumption pattern of well-known energy forms. First and foremost in the USA, where the very large amounts of shale gas have reduced coal consumption and CO2 emissions. In Denmark, shale gas can also have an impact. If it turns out that there is Danish shale gas, Danish gas self-sufficiency can be extended beyond the decade, which is estimated in the forecast of the Danish Energy Agency based on the known gas reserves in the North Sea. At the same time, Danish shale gas can create growth potential for Danish suppliers to the gas industry.

Total E&P Denmark B.V. and Nordsøfonden of the Danish state, are jointly investigating whether there is shale gas in North Jutland and North Zealand. Nordsøfonden will automatically have a 20 percent ownership share of all exploration licenses for oil and gas in Denmark. Total has invested DKK 400 million in the two licenses for test drilling and seismic investigations, because there are hopes that the gains will be larger than that. With a number of reservations, the International Energy Agency (IAE) believes, that the Danish substratum may contain shale gas reserves of up to ten times the known, Danish gas reserves in the North Sea. In other words, this means

around 100 years of gas consumption at the current level. Total E&P Denmark B.V. expects the probability of finding shale gas to be in the region of 20%.

USA at the front Shale gas is brand new for Denmark, while with its great use of shale gas, the USA has already changed major parts of the energy market and, at the same time, reduced CO2 emissions, because shale gas has replaced coal to a certain extent. According to IGU, the International Gas Union, studies show that electricity based on natural gas emits 36-47 percent less greenhouse gases than electricity based on coal. 

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Modern society still runs on oil and natural gas. Today, oil and natural gas cover more than half of the world’s energy demand, and the demand is expected to increase in the years to come. DONG Energy has more than 30 years of experience in exploration and production of oil and natural gas in the North Sea. We are experts in terms of getting the most out of our oil and natural gas fields in a safe and environmentally responsible way. DONG Energy’s oil and natural gas activities are growing rapidly. We plan to double our production up to 2020, thus strengthening our regional position in North-West Europe. The Hejre development project in the North Sea is one of our largest projects. When the field starts producing in late 2015, DONG Energy will be co-owner of six Danish fields in production, eight Norwegian fields and two British fields. We also strengthen our market leadership position within offshore wind in the years to come. We plan to quadruple our installed offshore wind energy capacity towards 2020. Our talented employees play an essential role in achieving the ambitious targets DONG Energy has set. It takes experts to find the energy. DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has nearly 7,000 employees and is headquartered in Denmark. The Group generated DKK 67 billion (EUR 9.0 billion) in revenue in 2012. For further information, see

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Oil Gas Denmark, Annual Issue 2013  

The Oil Gas Denmark Annual Issue 2013 emphasizes present challenges and points toward future solutions: What is the actual potential in the...

Oil Gas Denmark, Annual Issue 2013  

The Oil Gas Denmark Annual Issue 2013 emphasizes present challenges and points toward future solutions: What is the actual potential in the...

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