International scientific journal

ISSN: 2663-0419 (electronic version)

ISSN: 2218-8754 (print version)

International scientific journal

ISSN: 2663-0419 (electronic version)

ISSN: 2218-8754 (print version)


Innovative technologies as a priority factor of the oil and gas industry development

Veliyev E.F., Aliyev A.A.

Oil and Gas Research and Design Institute, SOCAR 88A, H.Zardabi str., Baku, Azerbaijan, AZ1122:


The petroleum and petrochemicals industry is one of the fastest growing industries of today and still remains a key factor underlying the economy of every industrialized country. However, the industry has faced many challenges in a recent period due to the drop in hydrocarbon prices, growth in production costs and increasing uncertainty associated with the changing geopolitical situation in the world arena. One of the most challenging questions for the industry today is: Has hydrocarbon production reached its peak? These questions have divided researchers into two large camps. The first group are supporters of Hubbert’s theory, which proposed in the mid-1950s that hydrocarbon production in the U.S. peaked in the early 1970s and global production declined in the early 2000s and thereafter. The second group of scientists fundamentally disagrees with Hubbert’s theory, or rather with the possibility of accurately predicting this peak. In a nutshell, the position of experts opposing Hubbert’s theory can be expressed by stating that the date of peak oil will only be known post factum, and not immediately. Leaving aside the disagreements and arguments of specialists from both groups, it is necessary to emphasise the importance of introducing innovative technologies and the definition assigned to this mechanism depending on the approach: an effective tool for increasing hydrocarbon production or a tool for preventing negative development scenarios. The role and necessity of innovative technologies cannot be overestimated. The paper considers the role and application of innovative technologies as a tool for development of the oil and gas industry, identifies target strategies for innovation development and describes the most promising technologies from this point of view.

Keywords: innovation, invention, Hubbert’s peak, oil production, development strategy



Aliyev A.A. Improvement of rheological properties of alkali activated geopolymers by using process dry fluids. Prospecting and Development of Oil and Gas Fields, No. 3 (80), 2021, pp. 60-67 (in Russian).

Aliyev A.A. Polyvinylpyrrolidone – based gels for water inflow isolation in wells. Ashirov Readings, Vol. I, 2020, pp. 5-11 (in Russian).

Al-Mascati H., Al-Badi A.H. Critical success factors affecting the adoption of cloud computing in oil and gas industry in Oman. In 2016 3rd MEC International Conference on Big Data and Smart City (ICBDSC), IEEE, Oman, Muscat, 2016, pp. 187-193.

Bailey D., Wright E. Practical SCADA for industry. Elsevier Linacre House. Jordan Hill, Oxford, UK. 2003.

Bers J.A., Dismukes J.P., Miller L.K., Dubrovensky A. Accelerated radical innovation: Theory and application. Technological Forecasting and Social Change, Vol. 76. No. 1, 2009, pp. 165-177.

Betz F. Managing technological innovation: competitive ad-vantage from change. John Wiley & Sons. 2003, 387 p.

Boman K., Staff R. Digital tenacity key to implementing technology in oil, gas industry. 2016, /(X(1)S(wlydaq55svg2ty55bhiyhsqp))/news/article.aspx?a_id=53301&AspxAutoDetectCookieSupport=1.

Braswell G. Artificial intelligence comes of age in oil and gas. Journal of Petroleum Technology, Vol. 65, No.1, 2013, pp. 50-57.

Chesbrough H., Rosenbloom R.S. The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin‐off companies. Industrial and corporate change, Vol. 11, No. 3, 2002, pp. 529-555.

Chesbrough H., Spohrer J. A research manifesto for services science. Communications of the ACM, Vol. 49, No.7, 2006, pp. 35-40.

Chesbrough H.W. Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press. Boston, 2003, 10 p.

Choubey S., Karmakar G.P. Artificial intelligence techniques and their application in oil and gas industry. Artificial Intelligence Review, Vol. 54, No. 5, 2021, pp. 3665-3683.

Choudhry H., Mohammad A., Tan K.T., Ward R. The next frontier for digital technologies in oil and gas. 2016, https://

Connelly M.C., Dismukes J.P., Sekhar J.A. New relationships between production and patent activity during the high-growth life cycle stage for materials. Technological Forecasting and Social Change, Vol. 78, No. 2, 2011, pp. 303-318.

Decker R., Flaaen A., Tito M. Unraveling the oil conundrum: productivity improvements and cost declines in the us shale oil industry FEDS Notes from Board of Governors of the Federal Reserve System (U.S.), No 2016-03-22, 2016.

Demirbas A., Bafail A., Nizami A.S. Heavy oil upgrading: Unlocking the future fuel supply. Petroleum Science and Technology, Vol. 34, No. 4, 2016, pp. 303-308.

Dijkema G.P.J. Process system innovation by design, towards a sustainable petrochemical industry. Thesis › Dissertation, Delft University of Technology, 2004.

Dismukes J.P. Information accelerated radical innovation from principles to an operational methodology. Industrial Geographer, Vol. 3, No. 1, 2005, pp. 19-42.

Elatab M. 5 trends in oil and gas technology, and why you should care. 2012,

EMC executive briefing. Oil and gas operational efficiency: making better decisions faster. Reducing Cost, 2015,

Evans F., Volz W., Dorn G., Fröhlich B., Roberts D.M. Future trends in oil and gas visualization. In: Proceedings of the 13th IEEE Visualization Conference, (VIS-02), 2002, pp. 567-570.

Fanchi J.R., Pagano T.A., Davis T.L. State of the art of 4D seismic monitoring: the technique, the record, and the future. Oil and Gas Journal, Vol. 97, No. 22, 1999, pp. 38-43.

Farris A. How big data is changing the oil & gas industry. Ana-lytics Mag., in Oil and Gas Industry, Dec. 2012.

Feblowitz J. Analytics in oil and gas: the big deal about Big Da-ta. In: Proceedings of the SPE Digital Energy Conference and Exhibition, Paper No. SPE 163717, March 5-7, 2013, The Woodlands, Texas, USA.

Feblowitz J. Oil and gas: into the cloud? Journal of Petroleum Technology, Vol. 63, No. 5, 2011, pp. 32-33.

Fernandez J.D., Fernandez A.E. SCADA systems: vulnerabilities and remediation. Journal of Computing Sciences in Colleges, Vol. 20, No. 4, 2005, pp. 160-168.

Foxon T.J. Inducing innovation for a low carbon future: drivers, barriers and policies. The Carbon Trust. London, 2003.

Garcia R., Calantone R. A critical look at technological innovation typology and innovativeness terminology: a literature review. Journal of Product Innovation Management: An international publication of the product development and management association, Vol. 19, No. 2, 2002, pp. 110-132.

Gausdal A.H., Czachorowski K.V., Solesvik M.Z. Applying blockchain technology: evidence from Norwegian companies. Sustainability, Vol. 10, No. 6, 2018, pp. 1-16.

Giacchetta G., Leporini M., Marchetti B. Economic and environmental analysis of a Steam Assisted Gravity Drainage (SAGD) facility for oil recovery from Canadian oil sands. Applied Energy, Vol. 142, No. C, 2015, pp. 1-9.

Gilje E., Ready R., Roussanov N. Fracking, drilling, and asset pricing: Estimating the economic benefits of the shale revolution NBER Working papers, No. 22914, National Bureau of Economic Research, Inc., 2016.

Grove A.S. Only the paranoid survive: How to exploit the crisis points that challenge every company and career. Curren-cy/Doubleday, New York, 1996, 210 p.

Hanna R., Gross R., Speirs J., Heptonstall P., Gambhir A. Innovation timelines from invention to maturity. UK Energy Re-search Centre. 2015, 88 p.

Higgins V. Augmented and virtual reality: The future of work, not just play. Professional Safety, Vol. 62, No. 6, 2017, pp. 86-87.

Hubbert M.K. Nuclear energy and the fossil fuels, American Petroleum Institute drilling and production practice. In: Proceedings of Spring Meeting, San Antonio, Texas, 1956, pp. 7-25.

Hussain R., Assavapokee T. Khumawala B. Supply chain management in the petroleum industry: challenges and opportunities. International Journal of Global Logistics and Supply Chain Management, Vol. 1, No. 2, 2006, pp. 90-97.

Ismailov R.G., Veliyev E.F. Emulsifying composition for increasing oil recovery ratio of viscous oils. Azerbaijan Oil İndustry. No. 5, 2021, pp. 22-28 (in Russian).

Khan W.Z., Aalsalem M.Y., Khan M.K., Hossain M.S., Atiquz-zaman M. A reliable Internet of Things based architecture for oil and gas industry. In: 2017 19th International conference on advanced communication Technology (ICACT), 2017, February, pp. 705-710.

Kleinschmidt A. The Future of oil and gas: why we will still need oil and gas in the future. 2016). Available via: home/pictures- of- the- future/energy- andefficiency/the- future- of- oil- and- gas- trends.html, [Accessed: 9.10.2019].

Landrø M. 4D Seismic. In: Petroleum Geoscience, Springer. Berlin, Heidelberg, 2015, pp. 489-514.

Lu H., Guo L., Azimi M., Huang K. Oil and gas 4.0 era: A systematic review and outlook. Computers in Industry, Vol. 111, 2019, pp. 68-90.

Markit IHS. Technology and innovation key to cost reduction and capital efficiency as companies strive to meet future energy demand, IHS Says. 2016.

Martinotti S., Nolten J., Steinsbo J.A. Digitizing oil and gas production. McKinsey & Company, 2014.

Mawji O. The crude crash has created oil’s technological superpowers. 2016, Crash-Has-Created-Oils-Technological-Superpowers.html.

Mills M.P. Big Data and microseismic imaging will accelerate the smart drilling oil and gas revolution. 2013. Available via: big-data-and-microseismic-imaging-will-accelerate-the-smart-drilling-oil-and#6f6e6e9548b2. [Accessed: 14.10.2016].

Mitchell J.V., Marcel V., Mitchell B. What next for the oil and gas industry? Chatham House. London, 2012, 128 p.

Mohammadpoor M., Torabi F. Big Data analytics in oil and gas industry: An emerging trend. Petroleum, Vol. 6, No. 4, 2020, pp. 321-328.

Mueser R. Identifying technical innovations. IEEE Transactions on Engineering Management, Vol. 32, No. 4, 1985, pp. 158-176.

Nagiyeva N.N. Colloidodispersion gels for conformance control of injection wells. SOCAR Proccedings, No. 2, 2020, pp. 67-77 (in Russian).

Nagiyeva N.V. Application of preliminary-formed gel-forming particles for water inflow isolation in well. Ashirov Readings, No. 1(1), 2020, pp. 12-18 (in Russian).

Perrons R.K. How innovation and R&D happen in the upstream oil and gas industry: Insights from a global survey. Journal of Petroleum Science and Engineering, Vol.124, 2014, pp. 301-312.

Perrons R.K., Hems A. Cloud computing in the upstream oil & gas industry: A proposed way forward. Energy Policy, Vol. 56, 2013, pp. 732-737.

Perrons R.K., Jensen J.W. Data as an asset: What the oil and gas sector can learn from other industries about “Big Data”. En-ergy Policy, Vol. 81, 2015, pp. 117-121.

PLH Group. Four ways mobile technology affects oil and gas industry. 2015.

Prometheus Group. 5 Innovative Technologies Changing Maintenance Management in the Oil and Gas Sector. 2019,

Rahmanifard H., Plaksina T. Application of artificial intelligence techniques in the petroleum industry: a review. Artificial Intelligence Review, Vol. 52, No. 4, 2019, pp. 2295-2318.

Schumpeter J. The theory of economic development. Harvard University Press. Cambridge, MA, 1934, 255 p.

Schumpeter J.A. Capitalism, socialism and democracy. Harper & Row. New York, 1942, 381 p.
Sebastian J. Optimizing operational efficiency. Oil and Gas Financial Journal, Vol. 12, No. 9, 2015, pp. 1-4.

Sekhar J.A., Dismukes J.P. Generic innovation dynamics across the industrial technology life cycle: Platform equation modeling of invention and innovation activity. Technological Forecasting and Social Change, Vol. 76, No.1, 2009, pp. 192-203.

Shen C. SAGD for heavy oil recovery. In: Enhanced oil recovery field case, Gulf Professional Publishing. 2013, pp. 413-445.

Shenhar A.J., Dvir D., Shulman Y. A two-dimensional taxonomy of products and innovations. Journal of Engineering and Technology Management, Vol. 12, No. 3, 1995, pp. 175-200.

Shoja S., Jalali A. A study of the Internet of Things in the oil and gas industry. In 2017 IEEE 4th International Conference on Knowledge-Based Engineering and Innovation (KBEI), 2017, December, pp. 0230-0236.

Shukla A., Karki H. A review of robotics in onshore oil-gas industry. In 2013 IEEE International Conference on Mecha-tronics and Automation 2013, August, pp. 1153-116.

Shukla A., Karki H. Application of robotics in offshore oil and gas industry – A review. Part II. Robotics and Autonomous Systems, Vol. 75, 2016, pp. 508-524.

Sider A., Ailworth E. Oil companies tap new technologies to lower production costs. Wall Street Journal, Sept. 2015.

Suleimanov B.A., Dyshin O.A., Veliyev E.F. Compressive strength of polymer nanogels used for enhanced oil recovery EOR. Paper Number SPE-181960-MS. In: SPE Russian Petroleum Technology Conference and Exhibition, Society of Petroleum Engineers, 2016, October.

Suleimanov B.A., Ismailov F.S., Veliyev E.F., Dyshin O.A. The influence of light metal nanoparticles on the strength of polymer gels used in oil industry. SOCAR Proceedings, Vol. No. 2, 2013, pp. 24-28.

Suleimanov B.A., Latifov Y.A., Veliyev E.F. Softened water application for enhanced oil recovery. SOCAR Proceedings, Vol. 1, 2019, pp. 19-29.

Suleimanov B.A., Latifov Y.A., Veliyev E.F., Frampton H. Low salinity and low hardness alkali water as displacement agent for secondary and tertiary flooding in sandstones. Paper Number SPE-188998-MS. In: SPE Annual Caspian Tech-nical Conference and Exhibition, Society of Petroleum En-gineers, 2017, November.

Suleimanov B.A., Veliyev E.F. Nanogels for deep reservoir conformance control. In: SPE Annual Caspian Technical Conference & Exhibition, Astana, Kazakhstan, 2016, November.

Suleimanov B.A., Veliyev E.F., Azizagha A.A. Colloidal dispersion nanogels for in-situ fluid diversion. Journal of Petroleum Science and Engineering, Vol. 193, 2020, 107411.

Suleimanov B.A., Veliyev E.F., Dyshin O.A. Effect of nanoparticles on the compressive strength of polymer gels used for enhanced oil recovery (EOR). Petroleum Science and Tech-nology, Vol. 33, No.10, 2015, pp. 1133-1140.

Suleimanov B.A., Veliyev E.F., Naghiyeva N.V. Colloidal dispersion gels for in-depth permeability modification. Modern Physics Letters B, Vol. 35, No. 01, 2021, pp. 2150038.

Suleimanov B.A., Veliyev E.F., Naghiyeva N.V. Preformed particle gels for enhanced oil recovery. International Journal of Modern Physics B, Vol. 34, No. 28, 2020, pp. 2050260.

Suleymanov B.A., Ismailov F.S., Veliyev E.F. About impact of nanoparticles of metal on stability of polymer gels based on CMC used during oil production. Oil Industry, No. 1, 2014, pp. 86-88 (in Russian).

Suleymanov B.A., Veliyev E.F. Influence of granulometric composition and nanosized admix on quality of annular space isolation in cementing process of wells. SOCAR Proceedings, No. 4, 2016, pp. 4-10 (in Russian).

Suleymanov B.A., Veliyev E.F., Nagiyeva N.V. Patent №038656. Eurasian Patent Office, 2021 (in Russian).

Veliyev E.F. Application of amphiphilic block polymer systems for emulsive reservoir flooding. SOCAR Proceedings, No. 3, pp.78-66 (in Russian).

Veliyev E.F. Mechanisms of polymer retention in porous media. SOCAR Proceedings, Vol. 3, 2020, pp. 126-134.

Veliyev E.F. Overview of advanced enhanced oil recovery methods by use of flow deviation technology. SOCAR Proceedings, No.2, 2020, pp. 50-66 (in Russian).

Veliyev E.F. Polymer dispersion system for filtration flow change in situ. Prospecting and Development of Oil and Gas Fields, No. 1(78), 2021, pp. 61-72 (in Russian).

Veliyev E.F., Aliyev A.A. Propagation of nano sized CDG deep into porous media. In: SPE Annual Caspian Technical Con-ference, Paper Number: SPE-207024-MS, 2021, October.

Veliyev E.F., Aliyev A.A., Guliyev V.V., Naghiyeva N.V. Water shutoff using crosslinked polymer gels. In: SPE Annual Caspian Technical Conference, Paper 198351, 2019, October.

Veliyev E.F., Aliyev A.A., Mammadbayli T.E. Machine learning application to predict the efficiency of water coning prevention. SOCAR Proceedings, Vol. 1, 2021, pp. 104-113.

Wanasinghe T.R., Gosine R.G., James L.A., Mann G.K., De Silva O., Warrian P.J. The Internet of Things in the oil and gas industry: A systematic review. IEEE Internet of Things Journal, Vol. 7, No. 9, 2020, pp. 8654-8673.

Ward R. A billion-dollar digital opportunity for oil companies. New York, USA, McKinsey & Company, March 2016.

Woody T. New drilling technologies could give us so much oil, the climate won’t stand a chance. 2013, 117504/new-drilling-technologies-could-give-us-so-much-oil-the-climate-wont-stand-a-chance/

Yerramilli C., Sekhar J.A. A common pattern in long-term metals production. Resources Policy, Vol. 31, No. 1, 2006, pp. 27-36.

DOI: 10.33677/ggianas20210200067