Technological innovation is a key factor in an oil company's bottom line.
Not only is it a tool for operational process improvement (cost reduction, production, and reserves increase) but also a driver for the company's relational marketing. The intangible components of technological innovation, if properly evaluated and managed, are key drivers for know-how development, technological leadership, and reputation building.
These are crucial factors for staying in business in a world in which it is essential to demonstrate ability to control complex problems (e.g., exploitation in challenging areas, new energy scenarios, environmental, safety, and social constraints, etc.).
These are key issues vis-á-vis stakeholders, partner companies, producer countries, and the global community. Effective business management and performance improvement require quantitative analysis; in other words: never measured, never improved. This paper presents a methodology for the economic impact valuation of innovative technologies in the upstream oil industry. Both tangible and intangible components of an innovative technology contribute to generate value and thus each of them is to be considered as a very concrete point that requires comprehension, valuation, and management.