Developing the offshore oil and gas industry into a global knowledge hub Professor Torger Reve BI Norwegian Business School Secretaria de Energia de Mexico Mexico City, Oct 15, 2014
A Global Race for Attractiveness Nations and regions compete to be the most attractive locations for knowledge intensive industries
How can Trondheim and Norway compete with Shanghai, Singapore and Houston?
1/5 of Norway s total value creation comes from Forus, Stavanger
Norway has attracted some of the world s leading maritime-offshore corporations
The Norwegian Challenge ow can Norway do business t all with the world s highest ost level?
Best and most expensive
Counterforce 1 Working smarter to combat high cost level
Counterforce 2 Applying world class knowledge and advanced technology
Ekofisk The North Sea Technology Adventure
Norwegian oil & gas industry at the forefront INTSOK Offshore projects have been the technology driver New technology Subsea & floating Subsea to beach Ormen Lange Åsgard Glitne Platform based Statfjord satellites Troll Norne 1999 2001 2010 Sleipner 1997 Statpipe Gullfaks 1996 1986 1993 1994 Significant step changes 1985 Time
Subsea Technology is Main Driver in Ocean Space
Knowledge based Change driven Future business Climate robust Global
Counterforce 3 More effective business interactions «The Norwegian Model»
Three forms of interactions 1. Engineers interaction 2. Cluster interactions 3. Business-government interactions
The Norwegian cost level is challenging, but Norwegian engineers are highly competent and productive. Thus Norway will still be able to compete with Asia. It is a question of people Jeff Immelt, DN February19. 2013
Ashok Belani, CTO
From mechanics to mechatronics
Innovation requires flat organizations and open communication The Norwegian Model
The Norwegian Model is based Trust and nothing is more cost effective
Industry Competent Ownership Education Education, R&D and R&D Innovation Global Knowledge Hub Innovation
Examples of Global Knowledge Hubs Boston (Life sciences) Silicon Valley (IT) Houston (Oil & gas)
Distribution of Scientific Clusters Main Component, Boston Inventors 1976-2002 Color Legend Reds: University (21%)All other colors: Biotech (38%)Light Grey: PRO (26%)Black: Crosssector (16%)
Global Knowledge Hubs are Centres of Gravity attracting talents, technology and competent ownership on a global scale
The Emerald Model Environmental Attractiveness Knowledge Dynamics Cluster Attractiveness Ownership Attractiveness Knowledge Commons Educational Attractiveness R&D and Innovation Attractiveness Talent Attractiveness
Offshore Oil & Gas has the Strongest Emerald
Competitive clusters have emerged More than 2500 firms involved 250,000 people are employed directly or indirectly 150,000 direct jobs Maritime R&D Oil Service Engineering Operators Drilling Subsea Finance
Several strong offshore industry clusters have emerged in Norway INTSOK New firms 4000 Fabrication 3 000 R&D 2 000 Offshore service 20 000 Oil & gas companies 20 000 Operations 20,000 Drilling/wells 28.000 Offshore vessels 5 000 Drilling tech 10,000 Engineering 8000 FPSO 1 500 Subsea 30,000 Finance & Law 1 000
NODE is leading in drilling systems Boresystemer Bølgekompensering Laste-, losse- og forankringssystemer Komplette plattformløsninger
Offshore technology from Kristiansand to Brazil
Subsea Valley is leading in Subsea Technology 05.11.2014
Subsea Valley has world leading companies 05.11.2014
Two types of industries drive the Norwegian economy Global Knowledge Hubs ( West Coast Industries ) Complementary Knowledge Industries ( Oslo Industries )
The Norwegian Global Knowledge Hubs are in the Ocean Industries Offshore oil & gas industry Maritime industry Seafood industry
Offshore Oil & Gas: From oil companies to offshore technology, engineering and services Oil and gas companies
Offshore Oil & Gas: From oil companies to offshore technology, engineering and services Oil and gas companies
Norwegian Petroleum Fund: Norwegian Pension Fund Global $ 1 trillion (2014) $ 200 000 per capita 2 x Norway s GDP Owns 2% of World s Corporate Shares Action Rule: Govt is allowed to spend max 4% annually
Oil & Gas Resources
Swedish Lundin discovered the giant Johan Sverdrup oil field in the North Sea in 2012 Geologist Hans Christen Rønnevik (Former Saga/Statoil)
Multi phase technology: Norway s most significant innovation
Ocean Space Technology is the Space Program of Our Century
Maritime: From ship tonnage to maritime technology and finance Offshore oil and gas industry Maritime policies Advanced fisheries Maritime education Ship design Specialized ship yards Maritime lawyers Maritime R&D SHIPPING Advanced ship equipment Shipping finance Maritime IT Effective ports and terminals Logistics systems Marine insurance Shipping brokers Ship classification services Ship management Environmental standards
Maritime: From ship tonnage to maritime technology and finance SHIPPING
A GLOBAL BLUE MARITIME KNOWLEGDE HUB BLUE
ADVANCED OFFSHORE VESSELS FOR THE OIL AND GAS INDUSTRY 2006 2016 BLUE
THE BLUE MARITIME CLUSTER 20 SHIPPING COMPANIES BLUE Mariti me Global Centre of Expertise 13 SHIP DESIGN COMPANIES 14 SHIPYARDS 169 EQUIPMENT SUPPLIERS 23 000 SKILLFUL EMPLOYEES 9 000 000 000 USD TURNOVER IN 2014
Norwegian Global Knowledge Hubs are Ocean Industries
90 % of the world s productive mass is oceans
Finance Ocean Industries Services Technology Knowledge Offshore energy Maritime Seafood Natural resources
Innovation takes place when clusters intersect Renewable Energy Ocean Technology Offshore Maritime
hree Norwegian Industries are omplementary Knowledge Industries Finance IT Knowledge intensive services
Oslo Maritime Offshore Finance Cluster
What does it take to build a competitive offshore energy cluster? Open for full international competition Attract a critical mass of operators and suppliers Combine the forces of rivalry and cooperation Develop top quality education Build excellent infrastructure Implement high standards of safety and environment Go international!
How to transform an industrial cluster to a global knowledge hub Build Centers of Excellence in key technologies Use Large Scale Offshore Projects to break technological frontiers Invest heavily in Research and Innovation Implement Network Programs Attract Global Best Talents Work closely with Leading Clusters Worldwide
Two Roads of Oil and Gas Industry Development Build the oil and gas industry around a dominant national oil company (e.g. Saudi Aramco) Build the oil and gas industry into a Global Knowledge Hub that competes internationally (e.g. Norway)
Conclusions Global Knowledge Hubs Drive Global Business Norway s Strongest Global Knowledge Hubs are in Offshore Energy and Ocean Technology Complementary Knowledge Industries Serve Global Knowledge Hubs Worldwide Global Knowledge Hubs Need Branding The Key is a Vibrant Knowledge Commons with an Ability to Innovate and Transform