First A. Author, Second B. Author, Jr., and Third C. Author, Member, IEEE
The prices of oil in the recent times have been fluctuating. The fluctuation of the oil prices is due to the demand and other outstanding factors. Different mining companies have tried hard to do research so as to reduce the costs associated with mining. One such company is ADNOC. Even though it experienced problems in the past, it has spent time doing research for development and to aid in its in-house cost cutting. With that, there are different factors which the company has to consider before being involved in research and innovation.
A few years ago most precisely two and a half, nobody could ever have imagined of a decrease of the oil prices by more than half 1. Throughout the globe, not a single individual was prepared for such a crisis, and with that, the programme of ADIPEC University took off. Most students at present are seeking degrees that major in the oil industry and hence they are confronted with the idea of choosing one strategy from the present three for the companies to invest in of which are; investing in the optimum energy mix, investing in reserves or investing in innovation and the R and D.
Being the team of petroleum institute, our choice of the first strategy is investing in innovation and R&D because it is a winning strategy. The choice of our strategy is arrived at from the research we conducted and the ideas from experienced individuals that we managed to meet in 20116 in the ADIPEC. Innovation solves numerous problems which are faced in the operation phases. ADNOC has faced a range of problems in times of drilling in clay formations whereby the rate of penetration (balling effect) was lessened due to the swelling around the pipes. Chemicals were injected to dissolve the blockage on a trial basis, but it never worked.
ADNOC tried looking for a solution, but none was forthcoming. The pipes were pulled out, but that did not solve the menace due to the block. The solicited for other companies that had faced the same problem but not even one had a perfect answer to the problem. ADNOC had to find a solution by any means possible to solve the situation. ADNOC invented an Expandable Stabilizer. The machine is awaiting its launch in 2017 as its design and manufacture already complete. The machine is postulated to solve the problems experienced during drilling as the rate of penetration will be increased, tripping time will be reduced, and there is postulated to be the reduction of the many problems that were faced in times of drilling hard formations. Innovation, research, and development are of utmost significance to many industries in this downturn.
Companies ought to invest in research and development so as reduces the future costs. The development of inventions and solutions to the problems faced in the market today means that other companies which encounter the same problems will seek your aid thereby an indication of more income generation activity to the company. To solve the balling effect, ADNOC spent USD 54 million, yet the manufacturing cost of the stabilizer is about 13 thousand dollars. There is a major significant difference in te prices, and with this invention, ADNOC is saving a great amount of money.
Lastly, research and technology unlock the future through the increase of the recovery factor. A meeting with Abdul Munim Alkindy who is the director of exploration, development, and production in ADNOC articulated that the company at the moment produces about 50% reservoirs, but their future objective is to produce 70%. This is only achievable with the development of adequate machinery that can be used to keep up with the novel technologies and the researches done within the industry.
A meeting with important personnel from ADIPEC ended in the conclusion that for an empire to be built and succeed, one needs to have solid foundations with alternative plans and hence all the strategies are interconnected. Companies ought to embrace all of them for their continued success.
For the cost cutting to occur in any establishment, appropriate research on developmental ideas needs to be undertaken. Research identifies the gaps in technology and therefore aids in filling those gaps. Such gaps are the ones where almost everything gets lost. Money and all sorts of other misappropriations do occur in cases where there is undocumented evidence on the previous undertakings of the company. For the technological advancement of ADNOC, it is expected to leap higher benefits in the future due to the new discovery. Investing in research is paramount and of utmost significance for the success of the company. C.baumeister & L Kilian, Forty years of oil price fluctuations vol 30 pp 139-160 june 2016