We see the global need for more, cleaner and more efficient use of energy driving several technology innovations going forward. While renewable and clean energy is the focus area of many investors, we believe that key and lower risk/higher value opportunities will arise in improving the existing energy value chain(s), i.e. the exploration, extraction, production and delivery system for oil and gas, hydropower and nuclear.
While we expect the world to have to rely on fossil based fuel sources in the foreseeable future, we believe that the days of easy and cheap oil are definitely over as global depletion rates from existing oilfields are 7-9 % this year. This trend is driving the oil exploration business into desperation as they, generally speaking, have spent the last decades merging with each other, rather than finding new oil and developing new approaches and tools to locating and extracting more oil. This trend also requires the industry to better and more efficiently extract oil from existing fields as well as to search for and produce oil in new areas, including arctic areas and ultra deep waters. Furthermore, it will drive the industry to develop new methodology for finding, harvesting and producing oil and increasingly gas. The area of oil exploration and extraction is underinvested and ill-equipped.
While we also believe in clean tech initiatives we see that there are many players seeking to deploy capital toward high/multiple risk opportunities that we consider richly priced on a risk/reward basis (a “hype”). Our strategy in the emerging clean-tech arena will be cautious and therefore opportunistic.
With regards to nuclear technology we have no competence nor do we believe that the trend will present investment opportunities in our region during the funds investment horizon.
Based on this we search for technologies and product companies that improve and support exploration, extraction, production, storage and distribution as well as efficiency at the engine/consumption level.
This could include technologies, product areas and companies within increased recovery, field management, risk reduction in explorations, installation and production, cost reducing tools, remote operations, down hole tools, virtualisation, reservoir modelling, etc.
Companies in which out team has invested and/or sat on the boards of include: Reslink, Reslab, Resman, Sicom, Odim, Markland Technology, Minox Technology, Smartmotor, Seabed Geophysical, VoxelVision, Stadt Automasjon, Vector International, Scanrope and Read.
We have listed companies in this field, and we have also been part of the team who sold several of these companies to industrial buyers, including to buyers such as Schlumberger, Weatherford, ABB, Aker, Grenland Group, Blom and Seabird Exploration.
Our experience in these companies has provided experience and insight as well as a strong network that we will utilize and rely on moving forward.