Petroleum Industry Transformations: Lessons from Norway and Beyond

273 Pages·2018·2.624 MB·English

by  Taran Thune, Olav Wicken, Ole Andreas Engen

‘Petroleum economies have long been analyzed macro- economically as suffering
from the “resource curse”. This book offers a long-a waited alternative view based
on a knowledge economy perspective. Petroleum economies can benefit from
complex knowledge built up in supplier industries to diversify into new and
promising industries. The case of Norway, central to this book, serves as an
example for many other resource-b ased economies worldwide.’
Koen Frenken, Professor in Innovation Studies, Utrecht University, Netherlands
‘This book reveals the dynamics of natural resources when developed by a capa-
bility rich institutional regime. The petroleum sector in Norway is not only a
success story, it has also transformed the innovation models of the global petro-
leum industry. The book is a must for those who want to understand today´s
offshore industry as well as for those who want to prepare for the transitions
to come.’
Staffan Laestadius, Professor Emeritus, Royal Institute of Technology, Stockholm,
Sweden
‘The oil and gas industry remains the largest in the world by a long way: it is the
resource at the heart of the industrial system. This path- breaking book explores
one of its most dynamic national bases [Norway]. It offers unique insights into
oil’s innovation paths, its industrial trajectories, its economic impacts and its
future.’
Keith Smith, Professor at Imperial Business School, UK

Petroleum Industry Transformations
Taking the case of the Norwegian petroleum industry as its vantage point, the
book discusses the question of industrial transformations in resource-b ased
industries. The book presents new, empirically-b ased analyses of the develop-
ment of the petroleum industry, with an emphasis on three ongoing transforma-
tion processes:
• Technological upgrading and innovation in upstream petroleum.
• Globalisation of the petroleum industry and suppliers’ experiences of enter-
ing foreign markets.
• Diversification into and out of petroleum – and the potential for new
growth paths after oil.
Drawing together a range of key thinkers in this field, this volume addresses the
ways in which the petroleum industry and its supply industry has changed since
the turn of the millennium. It provides recommendations for the development
of resource economies in general and petroleum economies in particular.
This book will be of great interest to students and scholars of energy policy
and economics, natural resource management, innovation studies and the pol-
itics of the oil and gas sector.
Taran Thune is Professor in the Center for Technology, Innovation and
Culture at the University of Oslo, Norway.
Ole Andreas Engen is a Professor at the University of Stavanger, Norway.
Olav Wicken is Professor in the Center for Technology, Innovation and
Culture at the University of Oslo, Norway.
Routledge Studies in Energy Transitions
Series Editor: Dr. Kathleen Araújo, Stony Brook University, USA
Considerable interest exists today in energy transitions. Whether one looks at
diverse efforts to decarbonize, or strategies to improve the access levels, security
and innovation in energy systems, one finds that change in energy systems is a
prime priority.
Routledge Studies in Energy Transitions aims to advance the thinking which
underlies these efforts. The series connects distinct lines of inquiry from plan-
ning and policy, engineering and the natural sciences, history of technology,
STS, and management. In doing so, it provides primary references that function
like a set of international, technical meetings. Single and co-a uthored mono-
graphs are welcome, as well as edited volumes relating to themes, like resilience
and system risk.
Series Advisory Board
Morgan Bazilian, Columbia University, Center for Global Energy Policy (US)
Thomas Birkland, North Carolina State University (US)
Aleh Cherp, Central European University (CEU, Budapest) and Lund University
(Sweden)
Mohamed El- Ashry, UN Foundation
Jose Goldemberg, Universidade de Sao Paolo (Brasil) and UN Development
Program, World Energy Assessment
Michael Howlett, Simon Fraser University (Canada)
Jon Ingimarsson, Landsvirkjun, National Power Company (Iceland)
Michael Jefferson, ESCP Europe Business School
Jessica Jewell, IIASA (Austria)
Florian Kern, University of Sussex, Science Policy Research Unit and Sussex Energy
Group (UK)
Derk Loorbach, DRIFT (Netherlands)
Jochen Markard, ETH (Switzerland)
Nabojsa Nakicenovic, IIASA (Austria)
Martin Pasqualetti, Arizona State University, School of Geographical Sciences and
Urban Planning (US)
Mark Radka, UN Environment Programme, Energy, Climate, and Technology
Rob Raven, Utrecht University (Netherlands)
Roberto Schaeffer, Universidade Federal do Rio de Janeiro, Energy Planning
Program, COPPE (Brasil)
Miranda Schreurs, Technische Universität München, Bavarian School of Public
Policy (Germany)
Vaclav Smil, University of Manitoba and Royal Society of Canada (Canada)
Benjamin Sovacool, Science Policy Research Unit (SPRU), University of Sussex (UK)
Titles in this series include:
Petroleum Industry Transformations
Lessons from Norway and Beyond
Edited by Taran Thune, Ole Andreas Engen and Olav Wicken
Petroleum Industry
Transformations
Lessons from Norway and Beyond
Edited by Taran Thune,
Ole Andreas Engen and Olav Wicken
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 selection and editorial matter, Taran Thune, Ole Andreas Engen
and Olav Wicken; individual chapters, the contributors
The right of Taran Thune, Ole Andreas Engen and Olav Wicken to be
identified as the authors of the editorial matter, and of the authors for
their individual chapters, has been asserted in accordance with sections
77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing- in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging- in-Publication Data
Names: Thune, Taran, editor. | Engen, Ole Andreas,
editor. | Wicken, Olav, editor.
Title: Petroleum industry transformations: lessons from Norway and
beyond/edited by Taran Thune, Ole Andreas Engen, Olav Wicken.
Description: Abingdon, Oxon; NewYork, NY: Routledge, 2019. |
Series: Routledge studies in energy transitions
Identifiers: LCCN 2018014688| ISBN 9781138307636 (hardback) |
ISBN 9781315142456 (ebook)
Subjects: LCSH: Petroleum industry and trade–Norway. | Economic
development–Norway.
Classification: LCC HD9575.N62 P48 2019 | DDC 338.2/72809481–dc23
LC record available at https://lccn.loc.gov/2018014688
ISBN: 978-1-138-30763-6 (hbk)
ISBN: 978-1-315-14245-6 (ebk)
Typeset in Goudy
by Wearset Ltd, Boldon, Tyne and Wear
Contents
List of figures x
List of tables xi
List of contributors xii
Acknowledgements xiv
List of abbreviations xv
1 Transformations in petroleum: innovation, globalisation and
diversification 1
TARAN THUNe, OLe ANDREAS ENgEN AND OLAv WICKeN
PART I
2 The evolving sectoral innovation system for upstream oil and
gas in Norway 23
OLe ANDREAS ENgEN, ERLEND OSLAND SIMENSEN AND
TARAN THUNe
3 Innovation in the petroleum value chain and the role of
supply companies 40
ERLEND OSLAND SIMENSEN AND TARAN THUNe
4 Knowledge networks and innovation among subsea firms 58
NINA HjERTvIKREM AND RuNE DAHL FITjAR
5 Cost- cutting as an innovation driver among suppliers during
an industry downturn 70
jAKOBA SRAML gONzALEz
viii Contents
6 Norwegian rig service industry: innovations in contractual
relations 84
PETTER OSMuNDSEN
PART II
7 Born national – going global 95
HeLGe RYggvIK AND OLE ANDREAS eNGeN
8 Norwegian suppliers in Brazil 112
HeLGe RYggvIK, OLE ANDREAS ENgEN AND
ANTONIO JOSé juNquEIRA BOTeLHO
9 Supply companies and the political economy of platform
concepts in the U.S. Gulf of Mexico 127
HELgE RYggvIK
10 Steel, staff and solutions: past, present and future prospects
for employment in the Norwegian-b ased petroleum supply
industry 144
ATLE BLOMgREN AND CHRISTIAN quALE
PART III
11 Versatile competences and product market diversification
among oil and gas supply firms 165
TARAN THuNE AND TuuKKA MäKITIe
12 Diversification into new markets: challenges and
opportunities for petroleum supply firms 180
ALLAN DAHL ANDERSEN AND MAgNuS guLBRANDSEN
13 From oil to wind, and back again: resource redeployment and
diversification 195
TuuKKA MäKITIE, TARAN THuNE AND
jAKOBA SRAML gONzALEz
Contents ix
PART IV
14 The resource endowment challenge: extending the value
chain 215
ØYSTEIN NORENg
15 Collaborative innovation in the Norwegian oil and gas
industry: surprise or sign of a new economy-w ide paradigm? 231
CHARLES SABEL AND gARY HeRRIGeL
Index 249