26th Sep 2018


Global innovation for efficiency and quality in oil production

  • In an increasingly globalised marketplace, market leaders must constantly adapt to increase capacity (Photo: EUobserver)

European Commission Vice President Maros Šefčovič recently spoke of the need to support research and innovation in energy. 'Efficiency first' is the motto of the new Energy Union, but what forms will this new efficiency take and what measures will have to be taken to achieve this increased efficiency?

Global energy company LUKOIL, a privately owned, publicly-traded company with operations in over 40 countries on five continents, has been at the fore in the past two decades in the drive for increased efficiency in terms of production, processing and transport of oil and petrochemicals.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

In a global oil market that is highly developed and highly liberalised, LUKOIL's success to date is built on its track record of developing and adopting new technologies for oil extraction, and increasingly in recent years, renewable technology.

The company has focused on best global practice in all elements of the business, from human resources and safety management of workers in extreme environments, to its ongoing efforts to fully remediate the aftermath of environmental damage and reduce greenhouse gas emissions.

Encouraging the development of new generation energy production technologies has given the company an edge on the global market and the employment of gold standard production and employment standards has reaped rewards in terms of the company performance and international business reputation.

Sales up

Recently released financial results for 2014 show sales up by 1.9%, stable operating expenses, low debt levels and an increase of an impressive 5.1% in total hydrocarbon production available for sale, bringing the volume up to $2.3 billion barrels of oil equivalent (BOE) per day.

In 2012 alone, the company spent €157 million on research and development, with the focus centred on improvement of oil recovery rates, the development of nanotechnologies for the oil and gas industries and techniques for refining associated petroleum gas (APG) into liquid hydrocarbons.

Incremental improvements have been made in assessment methods for hydrocarbon reserves and technology to optimise the recovery of oil in new deposits. In the past two decades, the company has invested heavily in its refinery business, with 40% of the investments spent on its European assets.

LUKOIL has also developed a dedicated science and technology unit for the production of lubricants and additives and that is expected to result in significant advances in the global lubricant market. Between 2011 and 2012 the company and subsidiaries developed 39 new products, including marine oils. In fact, LUKOIL's marine oils are now produced in 17 countries and supply vessels in 521 ports in 54 countries.

European standards

An improvement in motor fuel quality is also a priority for LUKOIL. By 1 January 2016 all of the motor fuel produced by LUKOIL will comply with the highest European standards, once again the outcome of significant investment.

The benefits of this will not only be felt by the company's 100,000 shareholders: users of LUKOIL products across the globe will have health benefits from the reduced sulphur content.

Increasing efficiencies across all facets of this global enterprise is at the centre of what LUKOIL is and does. The company motto 'Always moving forward' is embedded in each sector of production, processing, refining and transport.

LUKOIL operates almost 6,000 filling stations across the northern hemisphere and it is currently expanding both its filling station business and upstream elements such as refineries and petrochemicals businesses in Africa, Latin America and the Middle East.

In an increasingly globalised marketplace, market leaders must constantly adapt to increase capacity, enhance production percentages and volumes, while at the same time protecting workers, promoting their welfare, working with local communities and ensuring that best environmental standards are achieved and maintained.

Disclaimer: This article is sponsored by a third party. All opinions in this article reflect the views of the author and not of EUobserver.

News in Brief

  1. UN chief: World suffering from 'trust deficit disorder'
  2. Stalemate in Sweden as parliament ousts prime minister
  3. Migrant rescue ship heading to French port
  4. EU angry at British tabloids on Brexit
  5. UK to allow EU flights in no-deal Brexit
  6. Greek reporters arrested after story on 'mishandled' EU funds
  7. Austrian minister urges police to out foreign sex offenders
  8. ECB's Draghi set to clarify role in secretive G30 group

Stakeholders' Views

This EUobserver section provides a platform for EU stakeholders to communicate positions, views and activities.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  2. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  3. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  4. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  5. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  6. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  7. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  8. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  9. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  10. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  11. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  12. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow

Latest News

  1. EU court delivers transparency blow on MEP expenses
  2. Russian with Malta passport in money-laundering probe
  3. Cyprus: Russia's EU weak link?
  4. Missing signature gaffe for Azerbaijan gas pipeline
  5. Every major city in Europe is getting warmer
  6. No chance of meeting EU renewable goals if infrastructure neglected
  7. Brexit and MEPs expenses in the spotlight This WEEK
  8. Wake-up call on European Day Against Islamophobia

Stakeholders' Highlights

  1. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  2. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  3. Mission of China to the EUChina: Work Together for a Better Globalisation
  4. Nordic Council of MinistersNordics Could Be First Carbon-Negative Region in World
  5. European Federation of Allergy and AirwaysLife Is Possible for Patients with Severe Asthma
  6. PKEE - Polish Energy AssociationCommon-Sense Approach Needed for EU Energy Reform
  7. Nordic Council of MinistersNordic Region to Lead in Developing and Rolling Out 5G Network
  8. Mission of China to the EUChina-EU Economic and Trade Relations Enjoy a Bright Future
  9. ACCAEmpowering Businesses to Engage with Sustainable Finance and the SDGs
  10. Nordic Council of MinistersCooperation in Nordic Electricity Market Considered World Class Model
  11. FIFAGreen Stadiums at the 2018 Fifa World Cup
  12. Mission of China to the EUChina and EU Work Together to Promote Sustainable Development

Join EUobserver

Support quality EU news

Join us