New Technology Opening Remarks Jim Hall – Shell Int’l E&P 21 October, 2003 ASME/API/ISO Gas-Lift Workshop

What controls the rate of technology evolution? Consumer Can we improve our profitability by developing/ applying new technology? If no, then there is no demand for new technology. If yes, then what level of investment will be required to produce acceptable improvement?

What controls the rate of technology evolution? Supplier Can we improve our profitability by developing/ supplying new technology? If no, then there is no demand for new technology. If yes, then what level of investment will be required to produce acceptable improvement?

Technology Investment Challenge How to invest in technology development in areas where the investment stands a high probability of producing profitable results with minimum risk of losing the investment.

Technology Maturity Curve Aging Mature Cumulative Effort Growth Embryonic Cumulative Time

Technology Maturity Curve - funding ¢ ¢ ¢ Tin Cup $ $ $ Cumulative Effort $ $ $ $ Cumulative Time

Gas Lift – 1st Wave The End? Mechanical Valves Foot-pieces Single-point Air lift Mineshaft Airlift 1797 1800’s Early 1900’s

Gas Lift – 2nd Wave The End? Surface Control Venturi Orifice Automatic Validation Testing Orienting SPMs Real-Time Optimisation Side-Pocket Mandrels NodalSM Analysis Balanced Valves Valve Performance PPO Valves IPO Valves Multiphase Flow King Valve Mechanical Valves Early 1900’s Late 1900’s 2000 ?

Gas Lift – 3rd Wave ? The End ? or another beginning? Infinitely Variable Injection Depth Improved Reliability Improved Efficiency Self-Optimising Surface Control Early 2000