INNOVATION AND TECHNOLOGY IN THE OIL AND GAS SECTOR: NAVIGATING THE FUTURE

The Oil & Gas industry has been a pioneer in technological innovation for decades, and is constantly pushing the boundaries of technological advancements in drilling, exploration, and production activities for the extraction of hydrocarbons from even the most challenging of environments. However, with the increasing demand for sustainable energy, and the necessity to reduce carbon emissions for a greener world, the industry is facing new challenges that require fresh ideas and innovative solutions.

As a response to present challenges, the industry has begun started to embrace new technologies that promise to enhance efficiency, reduce costs, and minimise the impact of its operations on the environment. The industry has made significant strides in the areas of exploration and production, with constantly improving technology such as seismic imaging, drilling technology, and data analytics enabling companies to extract from unconventional sources like shale oil and gas. The industry has also adopted newer techniques like Enhanced Oil Recovery (EOR) and well stimulation to increase the productivity of existing wells. EOR involves the injection of chemicals or gases into wells to increase the flow of oil. This helps increase the amount of oil that can be recovered from a well by up to 30%. Well stimulation, involves the use of hydraulic fracturing or acidising to increase production. This is useful where oil produce is trapped in between rocks that are not easily permeable.

The industry has also undergone what is terms as digital transformation, with automation and digitalisation revolutionizing operations. The use of digital technologies like AI, IoT, and big data analytics, Oil & Gas companies gain greater insights into their operations and improve decisionmaking. IoT sensors, for example, are used to monitor equipment performance and detect problems before its occurrence, while AI algorithms optimise drilling operations, and improve drilling efficiency thereby reducing costs.

Through investments in technology and exploring renewable energy sources, the Oil & Gas industry can continue to advance and meet the world's ever increasing energy needs.

Carbon capture technologies are another area where the industry is advancing to reduce emissions and meet net zero carbon goals that help with current climate issues. Carbon capture, utilisation, and storage (CCUS) technologies involve the capturing of CO2 emissions from industrial processes and storing them underground. Though still in its early stages, CCUS has great potential to significantly reduce emissions from the Oil & Gas industry.

There are various challenges facing the industry, however there are significant opportunities for growth and innovation. Through investments in technology and exploring renewable energy sources, the Oil & Gas industry can continue to advance and meet the world's ever increasing energy needs while minimising its environmental impact. The future of this industry depends entirely on its ability to innovate and adapt to future changes, and by embracing change, the industry can shape a future that is both sustainable and profitable.

If you have encountered unanticipated and challenging developmental work to meet your company's technological innovation needs, it could be beneficial to seek advice from your accountant or financial advisors about the possibility of making a claim under the HMRC R&D Tax Relief Scheme. Leyton UK is a market leader in innovation funding and offers expert guidance to organisations seeking financial support for their Research and Development (R&D) projects through the HMRC https://leyton. com/uk/rd-tax-sme/ R&D Tax Relief Scheme. With Leyton UK's extensive experience and knowledge, companies can benefit from significant tax relief for their innovative work. As of April 2023, changes will be implemented to the R&D Tax Credits scheme, reducing the additional deduction for SMEs from 130% to 86%, and the SME credit rate from 14.5% to 10%. Companies can use Leyton UK's R&D Tax Credits calculator to determine how much they can claim and to navigate the changes ahead. Moreover, Leyton UK also helps identify eligible businesses that can apply for compensation for a significant proportion of the costs of their energy bills through the Energy Tax Exemptions scheme, among other offerings. By partnering with Leyton UK, companies can rest assured that they will receive expert advice and support, helping them to maximise their R&D tax relief claims and make the most of government initiatives.

Benson John MSc CEng MIMeche Assistant Manager - R&D Tax Incentives

Aize was founded in 2020 with a vision to fundamentally change how capitalintensive projects and operations are performed. Developed by and for domain experts, the Aize workspace allows users to see, navigate, collaborate and work on assets digitally. The company is building on 30 years of software experience and 180 years of industrial heritage as part of the Norwegian Aker group. Aize is based in Norway and the UK.