More than a third of oil and gas professionals surveyed by DNV GL expect their companies to boost R&D and innovation in 2018
Digitalization and cyber security top the targets for this spend
Increased focus on digital is linked to seeking more cost efficiency
Demand-led innovation is key to addressing longer-term market threats and opportunities in the energy transition
Research published by DNV GL reveals an imminent turnaround in oil and gas industry spending on research and development (R&D) and innovation after three years of cuts and freezes. The findings come as rebounding industry confidence aligns with a firm intent to seek new ways to embed cost efficiencies into projects and operations for the long term.
More than a third (36%) of the 800-plus senior oil and gas professionals surveyed for the DNV GL report Confidence and Control: the outlook for the oil and gas industry in 2018 expect their organizations to spend more on R&D and innovation in 2018.
This is the highest such proportion in four years (figure 1 ), a marked rebound in companies’ appetite to invest in this way.
For some, such investment is urgently needed. Nearly a fifth of respondents (19%) said that lack of investment in innovation is a key barrier to growth in 2018. This is on a par with oversupply of oil and gas (19%), reduced exploration activity (19%), operating costs (18%), and competitive pressure (22%); only the oil price (37%) is cited more in this regard.