30 INNOVATION & TECHNOLOGY ZONE
The UK’s largest innovation funding consultancy INNOVATION & TECHNOLOGY
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Leyton is an international consulting firm that helps businesses leverage financial non-dilutive incentives to accelerate their growth and achieve long lasting performance.
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We simplify your access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists,
enhanced with cutting-edge digital tools developed internally, maximise the financial benefits for any type of businesses. With compliance always front of mind, we have been delivering optimal services for our clients for over 24 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.
INNOVATION AND TECHNOLOGY IN THE OIL AND GAS SECTOR: NAVIGATING THE FUTURE
T
he Oil & Gas industry has been a pioneer in technological innovation for decades, and is constantly pushing the boundaries of technological advancements in drilling, exploration, and production activities for the extraction of hydrocarbons from even the most challenging of environments. However, with the increasing demand for sustainable energy, and the necessity to reduce carbon emissions for a greener world, the industry is facing new challenges that require fresh ideas and innovative solutions. As a response to present challenges, the industry has begun started to embrace new technologies that promise to enhance efficiency, reduce costs, and minimise the impact of its operations on the environment. The industry has made significant strides in the areas of exploration and production, with constantly improving technology such as seismic imaging, drilling technology, and data analytics enabling companies to extract from unconventional sources like shale oil and gas. The industry has also adopted newer techniques like Enhanced Oil Recovery (EOR) and well stimulation to increase the productivity of existing wells. EOR involves the injection of chemicals or gases into wells to increase the flow of oil. This helps increase the amount of oil that can be recovered from a well by up to 30%. Well stimulation, involves the use of hydraulic fracturing or acidising to
increase production. This is useful where oil produce is trapped in between rocks that are not easily permeable.
There are various challenges facing the industry, however there are significant opportunities for growth and innovation. Through investments in technology and The industry has also undergone what is terms exploring renewable energy sources, the as digital transformation, with automation and Oil & Gas industry can continue to advance digitalisation revolutionizing operations. The and meet the world's ever increasing energy use of digital technologies like AI, IoT, and big needs while minimising its environmental data analytics, Oil & Gas companies impact. The future of this industry gain greater insights into their depends entirely on its ability to operations and improve decisioninnovate and adapt to future making. IoT sensors, for changes, and by embracing Through investments in example, are used to monitor change, the industry can equipment performance technology and exploring shape a future that is both and detect problems before sustainable and profitable. renewable energy sources, the its occurrence, while AI algorithms optimise drilling Oil & Gas industry can continue If you have encountered operations, and improve unanticipated and to advance and meet the drilling efficiency thereby challenging developmental world's ever increasing reducing costs. work to meet your energy needs. company's technological Carbon capture technologies innovation needs, it could be are another area where the beneficial to seek advice from industry is advancing to reduce your accountant or financial advisors emissions and meet net zero carbon about the possibility of making a claim goals that help with current climate issues. under the HMRC R&D Tax Relief Scheme. Carbon capture, utilisation, and storage Leyton UK is a market leader in innovation (CCUS) technologies involve the capturing funding and offers expert guidance to of CO2 emissions from industrial processes organisations seeking financial support and storing them underground. Though still in for their Research and Development (R&D) its early stages, CCUS has great potential to projects through the HMRC https://leyton. significantly reduce emissions from the Oil & com/uk/rd-tax-sme/ R&D Tax Relief Scheme. Gas industry. With Leyton UK's extensive experience and knowledge, companies can benefit from significant tax relief for their innovative work. As of April 2023, changes will be implemented to the R&D Tax Credits scheme, reducing the additional deduction for SMEs from 130% to 86%, and the SME credit rate from 14.5% to 10%. Companies can use Leyton UK's R&D Tax Credits calculator to determine how much they can claim and to navigate the changes ahead. Moreover, Leyton UK also helps identify eligible businesses that can apply for compensation for a significant proportion of the costs of their energy bills through the Energy Tax Exemptions scheme, among other offerings. By partnering with Leyton UK, companies can rest assured that they will receive expert advice and support, helping them to maximise their R&D tax relief claims and make the most of government initiatives. Benson John MSc CEng MIMeche Assistant Manager - R&D Tax Incentives
www.ogv.energy I April 2023
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