Over the next 25 years, oil demand is expected to increase by 11 million barrels per day, with over 90% of the additional oil coming from the Middle East and North Africa. This will require $2.7 trillion of investment in the region's oil exploration and production as existing oil fields decline and new sources are harder and more expensive to access. The oil and gas industry also faces acute shortages of skilled workers like petroleum engineers and geologists as experienced employees retire, which could lead to operational challenges if not addressed. Skills development and training programs are needed to ensure continued supply of expertise.

2. Lloyd’s Register Energy Oil & Gas Technology Radar 2014

3. Lloyd’s Register Energy Oil & Gas Technology Radar 2014

4. Lloyd’s Register Energy Oil & Gas Technology Radar 2014

5. Lloyd’s Register Energy Oil & Gas Technology Radar 2014

6. Over the next 25 years oil demand will increase from 88m barrels a day to 99m, mainly to fill Asian petrol
tanks, if planned energy policies around the world continues much as they are today. Over 90% of the
additional oil will come from the Middle East and North Africa, according to the International Energy Agency's
latest edition of the World Energy Outlook.
The organization reckons that the region will require $2.7 trillion of investment in exploration and production
to provide the oil. Even in the Middle East, where oil is relatively easy to extract, it will be harder to get out of
the ground.
Average extractions costs there will increase from just over $12 a barrel in 2011 to more than $15 in
2035, as production increases by more than 17m b/d. Costs will go up far more elsewhere as high prices
encourage oil producers to go after oil that is trickier to come by. The greatest leap will come in Latin
America as pricey deepwater oil grows in importance.
THE ECONOMIST, 2011

7. A wide range of skills is substantially lacking, including technical, soft and managerial skills, with particularly
acute shortages in technical occupations such as petrochemical engineers, petroleum engineers and
geologists. These shortages are imposing challenges to the maintaining of scheduled daily operations in the
industry; national oil companies (NOCs), international oil companies (IOCs) and services companies
(contractors) are all affected.
A primary cause of the skills shortage is demographic: large numbers of experienced workers are retiring
and fewer young skilled workers are entering the industry. Unless the industry begins to address these
challenges today, it may face a crisis of skills in the next decade as more than half the employee base leaves
the workforce.
Global Dialogue Forum on Future Needs for Skills and Training in the Oil and Gas Industry, to be held in Geneva, 2012

8. Jason CGG, 2015
Business Process challenges
1. Scale difference seismic and wells
2. Up scaling of geomodel versus wells
3. Flow simulator updated with latest
G&G data
4. Assumptions/ simplifications made
In Simulator model
5. Data accuracies of G&G data
6. Data accuracies of production data
7. Updating of geomodel
8. Updating of flow simulator
9. Others
Technology challenges
1. Power of computers for simulation
and visualization
2. Handling of statistical computing
3. Bandwidth/Quality of seismic
4. Recovery methods of oil and gas
5. Monitoring of production and drilling
Skill challenges
1. Algorithms in geomodel
2. Algorithms in Flow simulator
3. Algorithms for rock physics
Data challenges
1. Cope with massive amount of data and its
quality assurance

9. Integration of reliable and up to date data types to construct a
robust, up to date reservoir model based on ongoing data collection
and analysis.