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)

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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: elchinf.veliyev@socar.az

Summary

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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

 

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DOI: 10.33677/ggianas20210200067