Research and Development in Oil and Gas

By Sean Buchan, VP Europe, Middle East and Africa, Maxwell Drummond

To address the world’s increasing energy demands over the next 30 years and beyond, a substantial increase in research and development is vital. Without this, we face a potentially bleak future: adequate and affordable energy for the masses will be inconceivable.

As deepwater reserves, mature fields and unconventional hydrocarbons become the norm, oil and gas is becoming more technically difficult and economically challenging to exploit. The industry requires a new approach.

Long-term thinking is required to push research and development through the boom and bust cycles. Technological innovation has the power to transform processes and operations but our typically risk adverse industry tends to postpone adopting new technology due to unfamiliarity, preferring to let others make the first move. This means the research and development budgets of oil and gas companies tend to lag behind those in other sectors, such as consumer electronics, software and pharmaceuticals, even though some aspects of the technologies may be transferrable.

Employees involved in research and development include development engineers, design engineers, engineering managers, product development managers and technical authorities. Like all roles within the energy industry, there is high demand for people with the right qualifications and skills.

As one of the most mature exploration and production regions, Aberdeen has become renowned for its pioneering culture and ability to extract precious hydrocarbons from a volatile environment. Due to the high concentration of local subsea and offshore production expertise, Maxwell Drummond’s Aberdeen office frequently places individuals globally, particularly in Australia, to overcome skills shortages in newer markets.

Known locally as ‘black gold’, oil and gas has been extracted from the North Sea since the early 1970s. Given the maturity of many of the North Sea’s fields, the recovery of remaining reserves will be maximised by an investment in extended oil recovery techniques. Tiebacks and subsea infrastructures are more common in the North Sea and as a result, subsea specialist and EOR specialist roles are a very specific need within the region.

Investment in research and development in the North Sea is critical to ensure talent remains in the local market. Government officials must continue to attract investment to prevent a knowledge gap from one generation to the next. Specific technical challenges created by declining oil production in mature fields can be overcome by investment in technical training and developing new technologies. These should be important priorities for companies operating in the region and will help ensure the North Sea’s role in the global energy mix for years to come.

About the author

Sean Buchan joined Maxwell Drummond as a Research Consultant in 2006 and was quickly promoted to Consultant where he worked on a range of senior projects across the Oil and Gas value chain for positions in Europe, the Middle East, West Africa, Southeast Asia and the Americas. In January 2009 Sean was promoted to General Manager for the UK and in 2011 became Vice President Europe, Middle East and Africa. He is now responsible for leading these regional teams and driving the consistent delivery of the firm's executive search projects.

Maxwell Drummond International is a world leading retained search consultancy offering professional search services to clients in all sectors of the energy and natural resources industries.