Some Perspectives of the Norwegian Oil and Gas Clusters.Some Perspectives of the Norwegian Oil and Gas Clusters.
Jacob Sannes
Director, Statoil do Brasil Ltda.
Some Norwegian experiences that could be applicable in Brazil.
Jacob Sannes
Director, Statoil do Brasil Ltda.
Some Norwegian experiences that could be applicable in Brazil.
NOT AN OFFICIAL UNCTAD RECORD
What is a cluster.
Clusters were not ”invented” by Michael Porter but his work in the early 90-ies established the term for common use.
Porter defined clusters as a location where Cost and quality of inputs Nature and intensity of local competition Sophistication of local customers, and Presence of related industries
interact to create dynamics which innovate, boost productivity and attract new industry to that location.
Porter stated that success is greatest where competition is strongest and peer companies compete to be best but also have constructive co-operation.
Some examples.
Italian shoes
Hollywood films
Broadway and London Theatres
Detroit cars
Silicon Valley IT
Madison Avenue advertising agencies
Houston and Norwegian Oil and Gas Industry.
Clusters must develop
Productivity and technology may out-compete the advantages of a cluster
Heavy shipbuilding moved from Europe and USA to take advantage of higher productivity in Japan
Steel production moved from proximity to iron and coal in Europe and USA as combination of productivity and new technologyin Japan plus cheaper bulk transport developed
In some cases, new clusters develop from the ruins
Specialist shipbuilding in Europe but not USA Specialist quality steel production
Norway’s goals and strategies -
The petroleum resourcesbelong to the nation
Development of the resources must benefit the society as a whole
The goals and strategies:
National involvement
Resource management
Technology and competence
Transforming the societyDeveloping the necessary knowledge
Build competence Adapting the education
system Focusing on training and
developing employees Stimulating students
Transform existing industries Maritime Mining Process
Maintain a balance between oil and non-oil sectors
Strengthening the competitivenessof the energy service industry
Structure projectsaccording to national capabilities
Develop technologyin joint projects
Inform
Educate
De-brief
Help with advice
Balancing Competition and Co-operation
Successful clusters are invigorated by strong competition, very often ”personal” and driven by strong individual’s desire to show who is best.
Inside successful clusters there is recognition that some issues are best solved through collective actions.
The Norwegian society traditionally works towards solving issues through co-operation, and this has helped in establishing the Norwegian Oil and Gas cluster.
To sustain any cluster its members must develop a mode of co-operation whilst maintaining competition.
The Norwegian co-operation model
Govern-ment and
Authorities
Oil companies
Contracting and supply
industry
Employees and Labour
Unions
Oil and Gas Production1980-2020, thousands barrels o.e. per day
0
1000
2000
3000
4000
5000
6000
1980 1985 1990 1995 2000 2005 2010 2015 2020
Oil Gas NGL
A large oil and gas producerNorway has celebrated 30 years of production
A large producer – and exporter –of oil and gas
Oil and gas revenues represents 20% of Norway’s GDP
A strong and capable domestic support industry – now going international
Improved recovery and reservoir management
Improved reservoir modeling
4D seismic
Injection: WAG
Smart wells
Field 1996 2000 Target
Statfjord
Gullfaks
Achieved recovery factors
1986
61.4% 65.6% 70%
49.4% 54.5% 62%
49.4%
46.5%
Drilling
Field 1996 2000 Target
Statfjord
Gullfaks
Achieved recovery factors
1986
61.4% 65.6% 68%
49.4% 54.5% 62%
49.4%
46.5%
Supplier Development Programme
STATOIL
NEWPRODUCT
Commercial
Royalties
User profit
activities
LUP
LSupplier industy GOALS1. Bring new technology to market2. Establish new possibilities for the
industry3. Availability of new products, giving
Statoil reduced cost, environmental profit, and increased safety
STATOILS CONTRIBUTION1. Define user
requirements2. Technical competence3. Project control4. Establish contacts5. Advising
PROJECT STATUS LUP - 2000
2%
18%
9%5%
66%
0
10
20
30
40
50
60
CommersialLimited commersial successStopped. Commersial goals not achivedStoppedBankrupt
Principles applied in the Development of a Norwegian Oil & Gas Industry
Focus on development of a supply industry sustainable on a long term basis
Contractors to be selected on a transparent, non-discriminatory manner, securing best value for money
Technical solutions and contract management structure that accommodates domestic supply industry
A proactive information policy towards domestic supply industry
Norwegian Oil & Gas “World-Class” ClustersAround 80.000 directly employed in sector
OilCompanies
MainContractors
SystemIntegrators
ProductSuppliers
ServiceCompanies
TYPE OFCOMPANY
Reservoir/Seismic
OffshoreDrilling
Drillingequipment
Down-holeand WellServices
Subsea Platforms/fixed/floaters Decomis-sioning
Field oper-ations andtransporta-tion
SubseaDown-holeand WellServices
Drillingequipment
Equipmentand
Models
Reservoirand
SeismicDrilling
Designand
ProjectManage-
ment
E, I&T
MarineEquipment
MMO,Transpor-
tation Offshore
Supply
Operator/Duty
holderDecom
Emerging Clusters Established Clusters
Su
pp
ly C
hai
n
Value Chain
A sustainable future for Norway?
Fewer discoveries and developments in Norway will shift industry focus towards operational challenges and internationalisation
Many Norwegian companies already co-operate with local industry in other countries, using their capital and technology to develop competitive local companies
Statoil strongly believes that supporting local industry to become competent and competitive will bring benefits to Statoil, the oil and gas industry and the host country later
And for Brazil?
Brazil already has a nucleus of an oil and gas cluster in Rio/Niteroi and a number of competent companies in related areas
Brazil has strong universities offering higher education in all relevant areas
Brazil has strong industry associations and are used to establishing industry-wide development programs
Brazil has a strong national champion for the development of a competitive national industry
Going forward
I believe Brazil is in a unique position to develop a national oil and gas cluster
But this will require a long-term view from all engaged Federal and State government and authorities Financing institutions Employees and unions Contractors and service industries Oil and gas companies
which must all understand the potential benefits from co-operating whilst being internationally competitive.
I hope Statoil may be part of this challenging development