The industry majors are all intensely interested by innovation and they all invest heavily in R&D because they know how bleak the consequences will be if they don’t. Many of them already use I-Nova to help them generate the breakthroughs they need to stay ahead in a crucial sector for the economy.

The need for innovation in the oil industry is tremendous. The industry is facing two main challenges:

• Production cannot keep up with current and future demand for oil

On the one hand, oil production will stabilize at around 95 million barrels a day by 2020. On the other hand, the demand for oil is still increasing and will exceed 100 million barrels a day by the same date. There will be a gap in the next 10 years between what the market can offer and what the world needs. As a result, oil prices will remain high, constituting both an opportunity and a risk for oil companies.

To maintain production at sustainable levels, they have to innovate in order to develop new techniques for extracting oil under extreme conditions and at lower costs.

• Reducing CO2 emissions to satisfy new environmental regulations

Oil, gas and coal are responsible for 57% of greenhouse gases. Climate change is leading to severer regulations that threaten the Oil and Energy business model. Therefore companies operating in this sector must innovate to find alternatives to Fossil Energy and develop new services to help their clients to reduce their energy consumption.

When you've played the same game too long, all the other players know your tricks.

Finding a solution

How can you win when everyone knows exactly what you are going to do? Faced with the problems of the 21st century, companies are obliged to change how they perceive their business and make vital strategic choices in terms of orientation and the types of product and market they are aiming at. This is where white space comes in. White space is unoccupied territory in which opportunities lie, but only  if you change your game. How? Of course, by examining the environment, prevailing trends and realistic options. But a vital element is missing: ideas. Without ideas, there are no projects or differentiation. Nothing distinguishes you from the rest of the pack. Innovation in the oil industry is crucial but with higher CAPEX requirements than elsewhere. I-Nova provides the tool for optimising the ideation process required to make the right choices in terms of R&D, technology, and markets. Volatile oil prices are here to stay, impacting on refining costs and bottom line figures. But as always in the oil business, it’s what happens upstream that affects the rest.