Since the 1980’s, the Norwegian subsea industry has evolved to become a world-leading supplier of underwater equipment and technology. Oil and gas production across the world happens in ever deeper water, and the wells are increasingly complicated to operate. Norwegian subsea technology leads the world where the majority of future oil and gas resources are located; that is in deep water and harsh climatic conditions.
Norwegian-based companies have a market share of more than 50% of the global subsea market. When Brazil producee oil at 2000m below sea level, it is with Norwegian technology at the forefront.
Similarly, we have a significant position solving challenges in the South China Sea, off Angola, and off Australia, not to mention on the Norwegian Continental Shelf (NCS). So, how did we get here? In Norway, there is close cooperation between companies, academia, and the authorities.
The “Norwegian model” is perhaps the most important success factor. Strict requirements from Norwegian authorities have resulted in new technology development .
The NCS has served as a test laboratory for research and development, which has since become major export successes. When the first Norwegian oil field, Ekofisk, was discovered in 1969, we expected a recovery rate of 17%.
Today recovery rates can be above 50%. This has been possible thanks to intensive research and development that created new knowledge and new technology. This means the Ekofisk field can produce for at least another forty years, and with a recovery rate that is among the highest in the world.
Strong growth provides many opportunities. Rystad Energy expects that the global subsea market to increase to about US$ 70 billion in 2016 from about US$ 36 billion in 2012. If the Norwegian subsea industry can increase its global market share by just 1%, this means increased sales of close to US$2 billion. NCE Subsea’s ambition is to facilitate the further development of the Norwegian subsea industry by increasing innovation activity.
One of the main reasons Norway has a globe-leading subsea industry is because over time we have developed expertise and know how in companies and R&D institutions, which enables us to challenge each other and also jointly meet challenges.
A further investment in R&D will result in new products and services that can increase our market share.
NCE Subsea also promotes collaboration between the world’s leading subsea environments, and therefore connects with organizations in global subsea hubs and markets. In 2012, we launched the bilingual Subsea Index, a matchmaking tool in English and Portuguese.
To date, both Australian and Brazilian organizations have signed on as official Subsea Index partners. The intention is to connect subsea related companies, R&D, and educational institutions in the largest offshore markets in the world.
Tove Ormevik, Offshore Installation Manager, Skarv FPSO, BP, and chair of the board NCE Subsea.