Why aren’t NOCs closing the technology gap with IOCs?
As global reserves become more challenging to exploit, it is not surprising that the importance of technology, reflected as R&D expenditure per barrels of oil equivalent produced, has increased with time. But perhaps more intriguing is the fact that by 2010 gross R&D investment of the industry’s largest national oil companies (NOCs) exceeded that of the major international oil companies (IOCs) for the first time. This milestone is surely confirmation of the growing desire of NOCs to reduce reliance on the technologies provided by IOCs and service company partners. But if this is the case, why are the major IOCs still renowned for technology excellence and why have NOCs, perhaps with the exception of a few notable examples in specific technology areas, failed to close the technology gap?
Read the full article by Crispin Keanie, Head of OTM Consulting here