Technology Planning is an adjunct of Opportunity Framing in so far that it will identify the technical challenges that the opportunity faces. Technology Planning establishes the key technologies needed for project realisation and whether those technologies already exist or whether they need development and, if so, how they would be developed in order to realise the opportunity. Identification of the technology requirements should be carried out from the outset of the opportunity even if only at a very high level during the Identification and Assessment Phase. Since concepts will mature as the opportunity is progressed, the team should re-visit the technology needs during subsequent phases (i.e. Select and Define Phases).
Increasingly in OUs, Technology Planning starts at the hydrocarbon portfolio planning level and company-wide technology plans are prepared in conjunction with SIEP that examine the prospective technology needs for the eventual realisation of the portfolio opportunities. Opportunity/project teams need to review this catalogue first to see whether it captures their particular technology needs. If not, then they will need to examine how they can put their requirements in place in the timescale of the opportunity. This may mean delaying opportunity realisation.
A significant factor in failing to achieve opportunity objectives can be the poor management of the development and introduction of new technology into the project.
Indeed, the risks associated with the use of new technology are often those mentioned when discussing hydrocarbon opportunities. The implications of failure of an item of new technology are often severe and the anticipated financial gain has to be significant in order for the risk to become attractive. On the other hand, the successful use of new technology can often result in benefits beyond the financial gain. Companies can enhance their peer group and public reputation by quoting “firsts” and by promoting themselves as “leading-edge” technology companies. What is clear is that teams need to put in place a strategy for managing the risks so that, if the risks are accepted by the Decision Makers, they are, at least, minimised and, at best, managed out.
The willingness to take on technology risk usually follows the model in the figure below.
During the early phases of the opportunity realisation (ORP Phases 1-3), the team evaluates the range of new technologies and their potential application.
It is critically important, however, that before FID, the team has a full understanding of the total risk being carried out by the project. In many instances, individual decisions are made on whether to adopt new technology without an adequate review of the total risk picture for the opportunity.
It is believed that each item of new technology should be captured on the Project Risk Register and the strategy to manage the risk addressed in that document.