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1996
New Alliance Encourages Cooperative Research and Development
Members Count On Group Approach To Yield Benefits For All
Reprinted with permission from Plant, Canada's Industry Newspaper

Staying competitive is the cornerstone of being profitable,and in the upstream oil and gas industry that means constantly allocating sufficient resources to researching, developing and utilizing leading-edge technologies.

But faced with a volatile market, fluctuating prices and the recession, both governments and industry continually slashed vital R&D funding over the past few years as a stop-gap measure to improve efficiencies. As a result, petroleum and gas producers found themselves in an uphill battle to complete with domestic and foreign companies as access to new and innovative technologies began to slip from their grasp.

To escape this slippery slope, more than 30 of the country's best known oil and gas companies, government agencies and institutions - recognizing collaborations as the key to industry's future success-recently formed non-profit Calgary-based Petroleum Technology Alliance Canada (PTAC).

"PTAC brings stakeholders together to help identify areas where technology makes a difference," says the alliance's president, Eric Lloyd. "It identifies research projects to address these problems and promotes industry participation in the resulting research and technology." While industry players have collaborated over the years on a number of projects, Lloyd says more work needs to be done to better utilize the smaller pool of R&D resources.

The timing for PTAC couldn't be better, Lloyd told Plant. According to Statistics Canada, the industry's R&D - allocated resources plummeted by more than one-third between 1988 and 1993. And while the industry's low research investment hadn't quite reached crisis levels, something needed to be done. "Spending was going down yet technology is critical to competitiveness in the industry," adds Lloyd. "The problem now is no single organization can afford to develop (new technology) on its own. I wouldn't say we're in a crisis but the timing is right" for industry to collaborate in research and development.
PTAC's roots go back to the fall of 1994 when industry executives, attending their regular informal Vice-Presidents Breakfast Club meeting decided to renew their emphasis on R&D spending. About 20 companies quickly collaborated and hired a consultant to examine the need and support for a collaborative research and development alliance. The study revealed overwhelming support and PTAC was born in late spring.

The organization is currently setting up eight technical subcommittees, including technical forums on the Internet. Initially, the subcommittees will focus on production and processing of natural gas, drilling, oil production, well completion, stimulation, oil and gas transportation, reservoir recovery, geoscience and basic research.

Its annual administrative budget is about $250,000, collected through a sliding scale membership fee schedule based on the size of the company. Annual fees range from about $100 to $11,000, with a three-year commitment required.

Members include Alberta Energy Co., Amoco Canada Petroleum, Crestar Energy, Gulf Canada Resources, PanCanadian Petroleum, Poco Petroleums, Ryan Energy, Saskatchewan Research Council, Schlumberger, Talisman Energy, and the University of Calgary.


For further information,
please contact:
Arlene Merling, PTAC
Director, Operations
phone: (403) 218-7702
fax: (403) 920-0054

www.ptac.org

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© 2000 PTAC