• Notes
• Abstract
• Introduction
• The value of research
• Production as a metric
  for research value
   • Oil
   • Natural gas
• Meeting future U.S. 
  energy demands
   • Production
   • Imports
• Energy research
• Summary
• References

THE VALUE OF RESEARCH

Quantifying the value of research is an age-old dilemma. What is the value of knowing that seismic amplitude reflectors and depositional time lines are not always synonymous (Figure 2 below)? What is the value of quantifying and visualizing the physical forward model that produced complex salt tectonics (Figure 3)? What is the value of very rapid acquisition of topographic data and mapping with sub-meter vertical accuracy (Figure 4)? What is the value of 3-D visualization and the virtual reality presentation of data to landowners in South Texas (Figure 5)? What is the value of mapping the salinization variations of soil and ground water around oil fields using a very rapid-acquisition airborne electromagnetic device (Figure 6 below)? What is the value of immediate access to 1.5 million boxes of cores and cuttings (Figure 7 below)?

Figure 2: Seismic reflectors do not always follow time lines, especially at the reservoir scale. Data from West Texas interpreted by the Bureau of Economic Geology’s Reservoir Characterization Research Laboratory (RCRL); Charles Kerans, Principal Investigator.

 

Figure 6: Airborne electromagnetism and the resulting map of ground-water conductivity.

 

Figure 7: Bureau of Economic Geology’s Core Research Center facility in Austin, Texas.

 

Most industries recognize the importance of technology and innovation (Figure 8 below) as a source of superior shareholder returns (Figure 9 below), as leverage in partnership negotiations, in differentiating themselves from competitors, and as a source of long-term corporate value. It is, therefore, somewhat of a paradox that oil company research and development (R&D) expenditures have been steadily decreasing for a decade (Figure 10 below). Part of the explanation for this decrease in R&D can be found in the increase in joint industry projects (JIP’s) over the past decade (Figure 10 below). Increased collaboration can help the bottom line from a short-term cost perspective but may hurt it from a longer-term value perspective.

Figure 8: Survey results showing innovation as a critical business success factor.

 

Figure 9: Survey results indicate innovative companies have a great shareholder return.

 

Figure 10: Private sector expenditures in exploration and production are 50% of what they were a decade ago, and collaboration as indicated by joint industry projects (JIP’s) is up.

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