Taking the heat out of the burning-ice debate Appendix A PATENT ANALYSIS. Gas Hydrates. A.T. Kearney Energy Transition Institute June 2015

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1 Taking the heat out of the burning-ice debate Appendix A PATENT ANALYSIS Gas Hydrates A.T. Kearney Energy Transition Institute June 215

2 Gas Hydrates Compiled by the A.T. Kearney Energy Transition Institute Acknowledgements A.T. Kearney Energy Transition Institute wishes to acknowledge Ray Boswell, Technology Manager, Natural Gas Technologies, U.S. DoE / National Energy Technology Laboratory and Robert L. Kleinberg, Schlumberger Fellow, Schlumberger Doll Research for their detailed review of this FactBook. The Institute also wishes to thank the authors of this FactBook for their contribution: Benoit Decourt, Romain Debarre, and Sylvain Alias. About the FactBook Gas Hydrates The role gas hydrates may play as an energy resource is a controversial, polarizing subject. Therefore, a fact-based report has been developed by the A.T. Kearney Energy Transition Institute, presenting: key concepts; the status of exploration and production technologies; the status of research, development and demonstration (R,D&D); and the environmental and safety challenges associated with the potential exploitation of this resource. This publication aims at providing stakeholders with a balanced, unbiased assessment of gas hydrates and the tools to understand them properly. The Institute performed a literature review and engaged experts in the gas-hydrate field. The Institute also analyzed patents from 5 offices worldwide, using the Thomson Derwent World Patents Index (DWPI) database, and conducted a survey of gashydrate stakeholders to present the state of R,D&D and a faithful picture of current thinking among academics and industry players involved in the field. Outcomes of the DWPI analysis and the results from the survey are available in separate documents referred to as Appendix A and Appendix B. About the A.T. Kearney Energy Transition Institute The A.T. Kearney Energy Transition Institute is a nonprofit organization. It provides leading insights on global trends in energy transition, technologies, and strategic implications for private sector businesses and public sector institutions. The Institute is dedicated to combining objective technological insights with economical perspectives to define the consequences and opportunities for decision makers in a rapidly changing energy landscape. The independence of the Institute fosters unbiased primary insights and the ability to co-create new ideas with interested sponsors and relevant stakeholders. Gas Hydrates 1

3 Natural Gas Series The FactBook Gas Hydrates Appendix A Patent Analysis About the Patent Analysis To support the Gas Hydrates FactBook, the A.T. Kearney Energy Transition Institute analyzed patents from 5 offices worldwide based on the Thomson Derwent World Patents Index (DWPI) database. Key outcomes of the analysis were integrated into the FactBook, while this Appendix presents the analysis in full This report aims to provide a deep understanding of the gas-hydrate research and development (R&D) landscape. It highlights gas-hydrate patent publishing trends over recent decades, and identifies: the technologies that have generated the most interest; the countries most active in patent publishing; and the main stakeholders Gas Hydrates 2

4 Executive summary (1/2) Patent analysis highlights a growing interest in gas hydrates as a resource and the increasing involvement of Chinese research institutions General overview of the gas-hydrate patenting landscape: The number of patents filed in relation to gas hydrates has been growing at an accelerating pace since 199. As of December 31th 213, there were 2,933 patents, thirteen times as many as in 199. The patenting rate in 213 was more than seven times higher than in 199 So far, the majority of patents have been published in Japan. However, over the past decade, patent filings has grown rapidly in China, now the most active country in terms of gas-hydrate patent filing. Patenting in the U.S. the second-most-important country, after Japan, for cumulative numbers of patents filed remained relatively stable From a technology standpoint, most patents still relate to chemistry related to natural gas and flow insurance issues caused by the formation of gas hydrates. Nevertheless, patents related to drilling and fluid recovery experienced more robust and steady growth over the past decade, mirroring increasing interest in gas hydrates as a potential energy source Most patents have, so far, been filed by corporate players: chemicals companies and oil and gas firms own the largest gashydrate patents portfolios. Japanese conglomerate Mitsui is the world s leading individual publisher. However, the role of research organizations, including universities and laboratories, has grown over the past decade. Since 21, new players have become the main drivers for gas-hydrate patenting notably Chinese research institutions Gas Hydrates 3

5 Executive summary (1/2) Patent analysis highlights a growing interest in gas hydrates as a resource and the increasing involvement of Chinese research institutions Upstream: The number of patents filed in 213 in relation to gas-hydrates exploration and production technologies was 22 times higher than in 199 (1,11 patents on December 31st 213). Upstream-related patenting increased faster than the average increase in gas-hydrate patenting, mirroring growing interest in gas hydrates as a potential energy source over the past decade. With the exception of 212, more than 1 gas-hydrate upstream-technology patents have been filed every year since 21, compared with 1-2 a year in the 199s Japan is not the leading country in exploration and production patents: with 86 patents to date in this category, Japan is ranked fifth, after China, the U.S., the former Soviet Union and Europe. In 213, China became the global leader, with 293 patents, ahead of the U.S. (28 patents). Activity in Europe and the former Soviet Union, meanwhile, is in decline Within exploration & production, gas-hydrate patents are mostly filed under three categories: (i) drilling and fluids recovery; and, to a lesser extent, (ii) the measurement of physical and chemical properties, and (iii) equipment or products used for drilling and treating boreholes and wells Research organizations are more involved in upstream gas-hydrate patents than in gas-hydrate patents in other areas, and now account for more than 4% of all upstream patents filed. However, within the upstream segment, oil and gas service companies remain dominant. Two oil and gas service companies and Swiss chemicals company Clariant are the largest patent-holders for gas-hydrate exploration and production technologies Gas Hydrates 4

6 Executive summary (2/2) Patent analysis highlights a growing interest in gas hydrates as a resource and the increasing involvement of Chinese research institutions Exploration: The number of patents filed in relation to gas-hydrate testing and measurement was negligible until the 2s. It started to increase in the mid-2s and has grown strongly since 21. The bulk of these patents focus on chemical and physical properties (217 as of the end of 213). Only a few relate to the measurement of electric and magnetic variables (2 patents), and geophysics (53 patents) The vast majority of gas-hydrate testing and measurement patents have been filed in China: 167 compared with 34 in the U.S. and 27 in Japan. However, organizations in the U.S. in particular, U.S. oil and gas service companies have the largest patents portfolio relating to geophysics Production: The number of patents related to gas-hydrate drilling and obtaining fluids from wells started to increase significantly in the late 199s and the patenting rate accelerated in the 2s. As of December 31st 213, there were 536 patents in the category, compared with 33 in 199 Technologies aiming to obtain fluid from wells have generated the most patents (and accounted for 59% of all production patents at the end of 213). Drilling and well equipment and maintenance technologies come next (with 33% at end-213), followed by control, surveying and testing technologies (8%). It is interesting to note that in the obtaining fluids from wells category, most patents relate to the use of heat and steam (67% of patents at the end of 213) and to the use of chemicals or bacteria (24%) In terms of gas-hydrate production-related patents, the U.S. is leading the way, with 163 patents, ahead of China (114) and the former Soviet Union (17). The largest patent publishers are U.S. oil and gas services companies, and, to a lesser extent, Chinese research organizations and oil majors Gas Hydrates 5

7 Executive summary (2/2) Patent analysis highlights a growing interest in gas hydrates as a resource and the increasing involvement of Chinese research institutions Industrial landscape: Oil and gas service companies are the most important patent publishers. Chemicals companies are also deeply involved. Clariant, for example, is the largest publisher of gas-hydrate related patents in the drilling, well equipment and well maintenance category, and is ahead of oil and gas service companies Other large industrial players in the gas-hydrate patent field include: international oil companies such Chevron, ConocoPhillips and Shell; national oil companies such as Petrochina and China National Offshore Oil Corporation (CNOOC); and various Japanese conglomerates Gas Hydrates 6

8 Summary table Main figures General overview Upstream Geophysics 2 Drilling and obtaining fluids from wells 3 Number of patents as of December 31 th 213 Increase in patenting rate compared with 199 Aggregated number of patents compared with 199 2,993 1, x7.5 x9.3 - x5.7 x13 x22 x13 x16 CAGR 1 since % +14% +13% +13% Priority patent-filing office in 213 Leading priority office since 196 China China United States China Japan China United States United States Leading type of publisher in 213 Research organization Research organization Corporate Research organization Leading type of publisher since 196 Corporate Corporate Corporate Corporate 1. CAGR for Compounded Averaged Growth Rate; 2. Main patent class for gas-hydrate exploration, hence used as a proxy; 3. Main patent class for gas-hydrate production, hence used as a proxy Gas Hydrates 7

9 Table of contents 1. Methodology 9 2. General overview Patenting trend Regional breakdown Technology breakdown Publishers Upstream Patenting trend Regional breakdown Technology breakdown Publishers Exploration Patenting trend Measurements of chemical and physical properties Measurements of electric and magnetic variables Geophysics Production Patenting trend Regional breakdown Technology breakdown Publishers Industry landscape Appendix & bibliography 62 Gas Hydrates 8

10 1. Methodology Gas Hydrates 9

11 Methodology Thomson DWPI Patents were retrieved from the DWPI database, the world's most comprehensive database of enhanced patent documents Derwent world patents index (DWPI) screen shot from database 1. For more information on the DWPI, please visit Gas Hydrates 1

12 Methodology Study methodology A.T. Kearney Energy Transition Institute based its analysis on priority year and priority country, including patents granted and patent applications Description of the key steps undertaken in patent analysis Selected offices A.T. Kearney Energy Transition Institute analysis was conducted using both the core Derwent Word Patents Index (DWPI) and DWPI s Asian patent collection 1 Search terms Patent retrieval Patenting rate Regional analysis Technology analysis Assignee analysis Patents were selected if the patent title, abstract or claim contained the words "gas hydrate" or "methane hydrate" A.T. Kearney Energy Transition Institute retrieved and assessed families of patents filed between January 1 st 196 and December 31 st 213, from International Patent Documentation (INPADOC). This enabled to regroup all the patents directly or indirectly linked to a priority document and consequently to single count inventions Patents were analyzed according to priority year, which is the first patent application date for a specific invention Geographical patent analysis was conducted according to priority patent-filing region. The choice of filing region is influenced by the geographical origin of the patent filer and by the region in which a publisher intends to protect an innovation (i.e. innovation hub and potential markets). International Patent Classification (IPC), a hierarchical system that classifies patents with language-independent symbols, was used to determine the technology area of patents and has been used as a proxy for identifying patents associated with exploration and production 2. A.T. Kearney Energy Transition Institute assignee analysis was conducted based on DWPI patent assignee codes without distinguishing patents granted from those still in the approval phase. 1. These collections includes patents published by US, Canada, Europe, Australia, WIPO, China India, Japan Indonesia, Korea, Malaysia, Singapore, Thai, Vietnam and other authorities, for more information, please visit: Thompson Innovation website; 2. A full list of IPC used is given in appendix. Gas Hydrates 11

13 Methodology Study methodology Patents have been grouped in accordance with the International Patent Classification (IPC) How were IPC Classes grouped for exploration & production? 1 Exploration and production IPCs G1N: Measurement of chemical or physical properties G1R: Measurement of electric or magnetic variables G1V: Geophysics and gravitational measurements G1V 1/: Seismic or acoustic prospecting or detecting G1V 3/: Electric or magnetic prospecting or detecting G1V 5/: Prospecting or detection by the use of nuclear radiation G1V 7/: Gravimetric prospecting or detection 2 G1V 8/: Prospecting or detection by optical means G1V 9/ to G1V 15/: Other prospecting methods E21B: Earth or rock drilling; Obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells E21B 1/ to E21B 41/: drilling, well equipment and maintenance E21B 43/: Obtaining fluids from wells E21B 44//: to E21B 49/: Well control, surveying and testing C9K8: Chemical compositions for drilling or treating boreholes or wells 1. Details of IPC classes used in the analysis are available in appendix on slide 6 For more information, please visit the Word Intellectual Property Organization website; 2. No patents were retrieved under this IPC code Gas Hydrates 12

14 Methodology Study methodology Patents have been grouped in accordance with the International Patent Classification (IPC) Discrepancies between numbers Technology analysis Language It should be noted that patents are commonly filed under several International Patent Classification (IPC) classes and in several priority countries. This can explain discrepancies between figures (e.g. while 28 patents were published for gas hydrates in 21, patents listed by country breakdown amount to 212 for the same year) International Patent Classification (IPC), a hierarchical system that classifies patents with language-independent symbols, was used to determine the technology area of patents. Due to the complexity of IPC categorization, technology breakdowns may not be exhaustive. For instance, three IPCs (G1V, G1N, and G1R) were used as proxy for exploration. However, a few exploration-related patents may have been filed under other IPCs Searches were performed in English. These capture the vast majority of commercially relevant patents and patent families (Thomson Derwent World Patents Index translates patents from all national offices). But there may be a time-lag for patent applications still in the national phase Lag in patent publications Patents issued in China Patents issued in India M&A and company identity It can take up to 18 months for some patent offices to publish patent data. As a result, there is sometimes a significant discrepancy between the date an invention was made and the publication of its patent The rise in patent-filings in China can partly be attributed to the backlog of patentable innovations and products developed both by Chinese companies and foreign firms waiting to enter the Chinese market. As the Chinese patent system strengthens and IP practices mature, companies willingness to use its national patent system should increase further 1 Only a limited amount of information is available electronically on patents issued in India. This may have resulted in an underestimate of Indian innovation in some of the focus areas of this report Despite A.T. Kearney Energy Transition Institute s efforts to harmonize assignee names, mergers & acquisition (M&A) activity is continually changing the energy and chemicals industries and this may slightly affect the analysis 1. Some observers have also expressed concerns about the quality of patents currently being granted in China, specifically around the distinction between design and utility patents Gas Hydrates 13

15 2. General overview Gas Hydrates 14

16 General Overview Patenting trend The gas-hydrate patenting rate has increased steeply since the 199s Gas-hydrate Patenting rate # of patents published per year x Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 15

17 General Overview Patenting trend The number of gas-hydrate related patents rose 13-fold between 199 and 213 Gas-hydrate Patenting level Cumulated # of patents since 196 3, 2,5 2, 1,5 x13 1, Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 16

18 General Overview Regional breakdown Since the 2s, China s patent publication rate has been on the rise, while Japan s has declined Gas-hydrate patenting rate by region # of patents published per region per year United States China Japan Korea Former Soviet Union 2 Europe 3 Rest of the World 4 1. Some discrepancies may exist between this slide and slide 13. For more information, please refer to slide 5; 2. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the former Soviet Union office; 3. Includes patents filed in the European patent office and in specific national patent offices in European countries; 4. Includes patents filed in the patent Cooperation Treaty Office and other national offices not mentioned above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 17

19 General Overview Regional breakdown As of 214, Japan remains the leading country for gas-hydrate patents filed, followed by China and the U.S. Gas-hydrate patent Filings by region Cumulated # of patents since 196 Japan 825 China 73 United States 526 Europe Former Soviet Union Rest of the World Korea Includes patents filed in the European patent office and national patent offices in European countries; 2. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the former Soviet Union office; 3. Includes patents filed in the patent Cooperation Treaty Office and other national offices not mentioned above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 18

20 General Overview Technology breakdown Drilling and obtaining fluids from wells is the only gas-hydrate related patent class that has grown continuously since the 199s Patenting rate under the three main International Patent Classification (IPC) classes # of patents published per IPC class per year % CAGR % CAGR -2% CAGR Chemistry related to natural gas 1 Drilling and fluid recovery from wells 2 Chemistry for Acyclic or carbocyclic compounds 3 1. C1L: Fuels not otherwise provided for, natural gas, synthetic natural gas obtained by processes not covered by subclasses C1G or C1K, liquefied petroleum gas, use of additives to fuels or fires; 2. E21B: Earth or rock drilling, obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 3. C7C: Acyclic or carbocyclic compounds; CAGR for Compound Annual Average Growth Rate. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 19

21 General Overview Technology breakdown The bulk of gas-hydrate patents relates to chemical-based technologies Gas-hydrate patents by technology category 1 Cumulated # of patents since CAGR 7 +14% % +13% % +8% Chemistry related to natural gas 2 Chemistry for Acyclic or carbocyclic compounds 4 Materials for specific applications (including treating wells or boreholes) 6 Drilling and fluid recovery from wells 3 Chemical or physical processes 5 1. Patents filed under the top 5 International Patent Classification (IPC) Classes since 196; 2. C1L: Fuels not otherwise provided for; natural gas; synthetic natural gas obtained by processes not covered by subclasses C1G or C1K; liquefied petroleum gas; use of additives to fuels or fires; 3. E21B: Earth or rock drilling; Obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 4. C7C: Acyclic or carbocyclic compounds; 5. B1J: Chemical or physical processes, e.g. catalysis, colloid chemistry; 6. C9K: materials for applications not otherwise provided for, includes compositions for drilling of boreholes or wells; 7. CAGR for compound annual average growth rate. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 2

22 General Overview Publishers Since the mid 2s, there has been a significant increase in the number of patents filed by research organizations Gas-hydrate Patents filed by publisher type Cumulated # of patents since 196 1, CAGR 1 +12% 1,4 1,2 1, % % +21% +26% Research organization(s) together with corporate player(s) Research organization - consortium Research organization - single institution Corporate - consortium Corporate - single company 1. CAGR for Compound Annual Average Growth Rate Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 21

23 General Overview Publishers Since 196, most gas-hydrate patents have been filed by industrial players Gas-hydrate Patents filed by publisher type Cumulated # of patents since 196 Corporate - single company 1,571 Research organization - single institution 679 Corporate - consortium 25 Research organization(s) together with corporate player(s) 14 Research organization - consortium This breakdown accounts for 87% of gas-hydrate patents published since 196. The remaining 13% were published by individuals or did not contain sufficient information to be included in this graph. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 22

24 General Overview Publishers The three largest publishers of patents of gas-hydrate technologies since 196 are Japanese companies Top 1 gas-hydrate patent publishers Share of patents owned by top 1 publishers and # of patents published since 196 2,993 MITSUI ENGINEERING & SHIPBUILDING 44 29% CHUGOKU ELECTRIC POWER COMPANY 84 MITSUBISHI 65 CLARIANT 55 SCHLUMBERGER % GUANGZHOU ENERGY INSTITUTE 2 UNIVERSITY OF CHINA PETROLEUM JAPAN NAT INST ADVANCED SCIENCE AND TECHNOLOGY 41 BAKER HUGHES 4 4 ROYAL DUTCH SHELL Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 2. Includes assignees referenced under Guangzhou Energy Inst Conversion Chinese, and Guangzhou Energy Res Inst Chinese Acad of Sc ; 3. Includes assignees referenced under Univ China Petroleum East China and Univ China Petroleum Beijing ; 4. Includes patents published by Baker Hughes, and BJ Services. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 23

25 Top 1 patent holders General Overview Publishers New patent publishers, which began to emerge in force in 25, have dominated gas-hydrate patenting since 21 Top 1 gas-hydrate patent holders and top 7 publishers since 21, publishing rate # of patents published per publisher per year Top 7 publishers 5 since 21 2 MITSUI ENGINEERING & SHIPBUILDING CHUGOKU ELECTRIC POWER COMPANY MITSUBISHI CLARIANT SCHLUMBERGER 1 GUANGZHOU ENERGY INSTITUTE 2 UNIVESITY OF CHINA PETROLEUM 3 JAPAN NAT INST ADVANCED SCIENCE AND TECHNOLOGY ROYAL DUTCH SHELL BAKER HUGHES 4 CHINA NATIONAL OFFSHORE OIL CORPORATION QINGDAO INSTITUTE OF MARINE GEOLOGY UNIVERSITY OF CHANGZHOU PETROCHINA DALIAN UNIVERSITY HALLIBURTON KOREA INSTITUTE OF INDUSTRIAL TECHNOLOGY Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 2. Includes assignees referenced under Guangzhou Energy Inst Conversion Chinese, and Guangzhou Energy Res Inst Chinese Acad of Sc ; 3. Includes assignees referenced under Univ China Petroleum East China and Univ China Petroleum Beijing ; 4. Includes patents published by Baker Hughes, and BJ Services; 5. Mitsui Engineering and Shipbuilding and University of China Petroleum have been top 1 gas-hydrate patent publishers since 196 and top 9 patent publishers since 21. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates

26 General Overview Publishers Mitsui Engineering and Shipbuilding was the main publisher of gashydrate related patents for ten consecutive years: 22 to 212 Top 1 gas-hydrate patent holders, publishing rate Share of # of patents per publisher per year MITSUI ENGINEERING & SHIPBUILDING CHUGOKU ELECTRIC POWER COMPANY MITSUBISHI CLARIANT SCHLUMBERGER 1 GUANGZHOU ENERGY INSTITUTE 2 UNIVERSITY OF CHINA PETROLEUM 3 JAPAN NAT INST ADVANCED SCIENCE AND TECHNOLOGY ROYAL DUTCH SHELL BAKER HUGHES 4 1. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 2. Includes assignees referenced under Guangzhou Energy Inst Conversion Chinese, and Guangzhou Energy Res Inst Chinese Acad of Sc ; 3. Includes assignees referenced under Univ China Petroleum East China and Univ China Petroleum Beijing ; 4. Includes patents published by Baker Hughes, and BJ Services. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 25

27 3. Upstream Gas Hydrates 26

28 Exploration & Production Patenting trend The patenting rate for upstream gas-hydrate technologies has increased 9-fold since 199 Patenting rate for upstream gas-hydrate technologies 1 # of patents published per year x Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 27

29 Exploration & Production Patenting trend There were 22 times as many gas-hydrate patents related to upstream technologies in 213 than in 199 Patenting level for upstream gas-hydrate Technologies 1 Cumulated # of patents since 196 1,1 1, x Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 28

30 Exploration & Production Regional breakdown Since 2, exploration & production patent filings have risen in China but remained static in the U.S. Patenting rates for upstream gas-hydrate technologies by region 1 # of patents published per region per year United States China Japan Korea Former Soviet Union 3 Europe 4 Rest of the World 5 1. Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class; 2. Some discrepancies may exist between this slide and the preceding one. For more information, please refer to slide 9; 3. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the Former Soviet Union office; 4. Includes patents filed in the European patent office, and in specific national patent offices in European countries; 5. Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 29

31 Exploration & Production Regional breakdown Since 196, most patents relating to upstream gas-hydrate technologies have been filed in China, followed closely by the U.S. Patent filings for upstream gas-hydrate technologies by Region 1 Cumulated # of patents since 196 China 291 United States 28 Europe Former Soviet Union Japan 86 Rest of the World 4 53 Korea Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2. Includes patents filed in the European patent office, and in specific national patent offices in European countries; 3. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the Former Soviet Union office; 4. Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 3

32 Exploration & Production Regional breakdown In Japan and Korea, the majority of gas-hydrate-related patents are not focused on exploration and production technologies Share of upstream gas-hydrate technologies by region 1 Share of cumulated # of patents since 196 United States 4% 6% China 53% 47% Europe 2 52% 48% Former Soviet Union 3 45% 55% Japan 1% 9% Rest of the World 4 33% 67% Korea 17% 83% E&P Non E&P 1. Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2. Includes patents filed in the European patent office, and in specific national patent offices in European countries; 3. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the Former Soviet Union office; 4. Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 31

33 Exploration & Production Technology breakdown Among IPC classes for upstream technologies, a large share of patents have been published under the drilling and obtaining fluids from wells class Upstream gas-hydrate patents by technology category 1 Cumulated # of patents since CAGR 7 +12% % +8% Drilling and obtaining fluids from wells 2 Materials for specific applications (including treating boreholes or wells) 3 Geophysics 5 Investigation of chemical or physical properties 4 1. Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2. E21B: Earth or rock drilling, obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 3. C9K8: Compositions for drilling of boreholes or wells, compositions for treating boreholes or wells; 4. G1N: investigating or analyzing materials by determining their chemical or physical properties; 5. From G1V: Geophysics, gravitational measurements, detecting masses or objects, tags; 6. G1R: Measuring electric variables, measuring magnetic variables; 7. CAGR for Compound Annual Growth Rate. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates Investigation of electric or magnetic variables 6 +22% +26%

34 Exploration & Production Publishers The number of upstream gas-hydrate related patents filed by research organizations has risen rapidly since the late 2s Upstream gas-hydrate Patents filed by publisher type 1 Cumulated # of patents since CAGR 2 +12% % % +21% +2% Research organization(s) together with corporate player(s) Research organization - consortium Research organization - single institution Corporate - consortium Corporate - single company 1. Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2CAGR for Compound Annual Growth Rate. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 33

35 Exploration & Production Publishers Oil and gas service companies are leading the way in upstream gashydrate-related patents Main upstream gas-hydrate patents publishers 1 Cumulated # of patents since 196 and breakdown by publisher 1,11 CLARIANT 49 34% SCHLUMBERGER 2 BAKER HUGHES 3 HALLIBURTON CHINA NATIONAL OFFSHORE OIL CORPORATION BP ROYAL DUTCH SHELL PETROCHINA CHEVRON % CONOCOPHILLIPS 4 EXXON MOBIL 5 ISP INVESTMENTS INC MITSUI ENGINEERING & SHIPBUILDING AIR PROD&CHEM INC BASF STATOIL MITSUBISHI HEAVY INDUSTRIES OFFSHORE HYDROCARBON MAPPING Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 3. Includes patents published by Baker Hughes, and BJ Services; 4. Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company; 5. Includes patents published by Exxon Mobil, Exxon, and Mobil. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 34

36 Exploration & Production Publishers The number of patents filed by the top-18 patent publishers varies widely from year to year Top-18 Upstream gas-hydrate patenting companies, publishing rate # of patents published per publisher per year CLARIANT BP EXXON MOBIL 5 STATOIL SCHLUMBERGER 2 ROYAL DUTCH SHELL ISP INVESTMENTS INC MITSUBISHI HEAVY INDUSTRIES BAKER HUGHES 3 PETROCHINA MITSUI ENG & SHIPBUILDING OFFSHORE HYDROCARBON MAPPING HALLIBURTON CHEVRON AIR PROD&CHEM INC CHINA NATIONAL OFFSHORE OIL CORPORATION CONOCOPHILLIPS 4 BASF 1. Patents associated with upstream technologies were selected according to their International Patent Classification (IPC) class. For more information, please refer to slide 1; 2. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 3. Includes patents published by Baker Hughes, and BJ Services; 4. Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company; 5Includes patents published by Exxon Mobil, Exxon, and Mobil. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 35

37 4. Exploration Gas Hydrates 36

38 Exploration Patenting trend Measurements of chemical and physical properties is the fastestgrowing of the three main IPC subclasses for gas-hydrate exploration Patenting rate under the three main IPC subclasses for Gas-Hydrate exploration # of patents published per IPC per year Measurement of chemical or physical properties 1 Measurement of electric or magnetic variables 2 Geophysics 3 1. G1N IPC subclass: covers investigating or analyzing materials by determining their chemical or physical properties; 2. G1R IPC subclass: covers measuring electric variables, measuring magnetic variables; 3. From G1V IPC subclass: covers geophysics, gravitational measurements, detecting masses or objects, tags. For more information on International Patent Classification (IPC), refer to slide 1. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 37

39 Exploration Patenting trend Since 27, an increasing number of patents for gas-hydrate exploration have been filed in China Patenting rates for gas-hydrate-exploration patents by region 1 # of patents published per region per year United States China Japan Korea Former Soviet Union 3 Europe 4 Rest of the World 5 1. Exploration-related patents include the G1N, G1R and G1V International Patent Classification (IPC) classes. For more information, please refer to slide 9; 2. Data may differ from data in previous slides, as patents published in several countries are counted several times; 3. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the former Soviet Union office; 4. Includes patents published in the European patent office, as well as patents published in specific national patent offices of European countries; 5. Includes patents published in the patent Cooperation Treaty Office and other national offices not cited above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 38

40 Exploration Measurements of chemical and physical properties The patent-filing rate for measurements of the chemical and physical properties of gas-hydrates has increased rapidly since the 2s Patenting rate for measurement of chemical and physical properties of gas hydrates 1 # of patents published per year x Patents associated with chemical and physical properties measurements were selected as those with International Patent Classification (IPC) G1N: Investigating or analyzing materials by determining their chemical or physical properties. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 39

41 Exploration Measurements of chemical and physical properties The number of patents related to the measurement of the chemical and physical properties of gas hydrates has increased 17-fold since 2 Patenting level for gas-hydrate chemical and physical properties measurements 1 Cumulated # of patents since x Patents associated with chemical and physical properties measurements were selected as those with International Patent Classification (IPC) G1N: Investigating or analyzing materials by determining their chemical or physical properties. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 4

42 Exploration Measurements of chemical and physical properties Patenting-rate analysis does not indicate a preference for any particular technology for measuring the chemical and physical properties of gas hydrates Technology breakdown for Measurements of chemical and physical properties 1 Share of cumulated # of patents since % 12% 13% CN A - Detection device for detecting fidelity of natural gas hydrate core rock, has sound wave transducer whose one end is arranged on measuring tube wall and other end is connected to spring to realize fastening/loosening of tube wall CA A1 - Determination of pore water content in equilibrium with gas hydrate in dispersed medium including rock, involves drying dispersed medium specimen, measuring weight, processing at preset pressure condition, and measuring final weight 2% 22% 22% CN A - Method for measuring resistivity of gas hydrate and hydrate-containing deposit in situ, involves measuring resistivity of hydrate or hydrate-containing deposit with resistivity formula US A1 - Chemical compound identifying method for producing heavy oil from steam assisted gravity drainage well, involves determining whether combined property of molecular model is improved relative to molecular model of starting compound FR298454A1 - Device i.e. crystallization cell, for measuring and detecting presence of gas hydrate in e.g. gas processing system, has adjustment unit for adjusting temperature of end of optical fiber by controlling Peltier effect element KR A - Method for measuring phase-balance point of gas hydrate, involves putting piezoelectric crystal into pressurization chamber, and measuring conductivity of sensor and resonance of piezoelectric crystal Total Using volume or pressure measurements 3 Using magnetic resonance measurements 5 Using accoustic waves 7 Using optical, microwave or radiation measurements 4 Using Electro-chemical, or magnetic measurements 6 Using chemical methods 8 1. Patents associated with measurements of chemical and physical properties were selected as those with International Patent Classification (IPC) class G1N: Investigating or analyzing materials by determining their chemical or physical properties. 2Patent titles were improved by Thomson DWPI; 3IPC Subclass G1N 5/, G1N 7/, G1N 19/; 4IPC Subclasses G1N 21/, G1N 22/, G1N 23/; 5IPC Subclass G1N 25/; 6IPC Subclass G1N 27/; 7IPC Subclass G1N 29/; 8IPC Subclasses G1N 3/, G1N 31/. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 41

43 Exploration Measurements of electric and magnetic variables The number of patents focused on the measurement of electric and magnetic variables of gas hydrates remains very low Patent-filing rate for Gas hydrates electric and magnetic variables 1 Cumulated # of patents since x Patents associated with the measurement of electric and magnetic variables were selected as those with International Patent Classification (IPC) class G1R: Measuring electric variables, measuring magnetic variables. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 42

44 Exploration Geophysics The number of patents filed in relation to geophysics has increased since the mid-2s Patents filed in relation to geophysics of gas hydrates 1 Cumulated # of patents since x Patents associated with geophysics were selected from International Patent Classification (IPC) class G1V: Geophysics, gravitational measurements, detecting masses or objects, tags. For more information on International Patent Classification (IPC), refer to slide 1. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 43

45 Exploration Geophysics Since 196, most patents related to the geophysics of gas hydrates have been filled in the United States Patents filed in relation to geophysics of gas hydrates by region 1 Cumulated # of patents since 196 United States 21 Japan 8 Former Soviet Union 2 8 Europe 3 7 China 6 Rest of the World 4 2 Korea 1 1. Patents associated with geophysics were selected from International Patent Classification (IPC) class G1V: Geophysics, gravitational measurements, detecting masses or objects, tags. For more information on International Patent Classification (IPC), refer to slide 1; 2. Includes patents filed in the Russian Federation patent office, the Ukrainian patent office and the Former Soviet Union office; 3. Includes patents filed in the European patent office, and in specific national patent offices in European countries; 4Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited above. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 44

46 Exploration Geophysics Seismic and acoustic technologies are the main areas of focus within geophysics, according to patenting rates Patents filed in relation to geophysics of gas hydrates: technology breakdown 1 Share of cumulated # of patent since CN A - Submarine seismograph for e.g. exploration of natural gas hydrate, has direct-current motor whose output shaft is connected with end of steel wire, where another end of wire is connected with inner wall of counter-balanced copper plate US244351A1 - Monitoring of downhole parameters and tools utilizing fiber optics the chemical parameters are measured in real time and on-line and then used to control the amount and timing of the injection of the chemicals JP239884A - Optical-fiber radiation monitor for diastrophism monitoring system, radiates calibration light to scintillator, to detect presence of radon based on excitation of light by scintillator GB243843A - Results analysis method for the controlled source electromagnetic surveying of e.g. oil reserves involves processing a survey data to model subterranean strata inside the region of interest accounting results in modeling outside the region 29 CN A - Water saturated stratum's longitudinal and transverse waves impedance increment ratio utilizing method for identifying natural gas hydrate, involves containing hydrate in stratum when impedance increment ratio is more than threshold value Total Seismic or acoustic prospecting or detecting 3 Prospecting or detecting by the use of nuclear radiation 5 Other prospecting methods 7 Electric or magnetic prospecting or detecting 4 Prospecting or detecting by optical means 6 1. Patents associated with geophysics were selected from International Patent Classification (IPC) class G1V: Geophysics, gravitational measurements, detecting masses or objects, tags; 2. Patent titles were improved by Thomson DWPI; 3. IPC Subclass G1V 1/; 4. IPC Subclass G1V 3/; 5. IPC Subclass G1V 5/; 6. IPC Subclass G1V 8/; 7. IPC Subclasses G1V 9/, G1V 11/, G1V 15/. For more information on International Patent Classification (IPC), refer to slide 1. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 45

47 5. Production Gas Hydrates 46

48 Production Patenting trend The patenting rate for gas-hydrate-related drilling and obtaining fluids has been increasing steadily since the 199s Patenting rate for drilling and obtaining fluids from wells 1 # of patents published per year x Patents associated with drilling and obtaining fluids from wells were selected as those in International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 47

49 Production Patenting trend The number of gas-hydrate related patents for drilling and obtaining fluids from wells has increased 16-folds since 199 Patenting level for drilling and obtaining fluids from wells 1 Cumulated # of patents since x Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 48

50 Production Regional breakdown Since 22, an increasing number of patents related to drilling and obtaining fluids from wells have been filed in China Patenting rates for drilling and obtaining fluids from wells by region 1 # of patents filed per region per year United States China Japan Korea Former Soviet Union 3 Europe 4 Rest of the World 5 1. Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Some discrepancies may exist between this slide and slide 45. For more information, please refer to slide 9; 3. Includes patents filed in Russian Federation patent office, Ukrainian patent office and Former Soviet Union office; 4. Includes patents filed in European patent office, and in specific national patent offices in European countries; 5. Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 49

51 Production Regional breakdown Since 196, the majority of gas-hydrate related patents for drilling and obtaining fluids from wells have been filed in the United States Patent filings for drilling and obtaining fluids from wells by region 1 Cumulated # of patents since 196 United States 163 China 114 Former Soviet Union 2 17 Europe 3 71 Japan 53 Rest of the World 4 3 Korea Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Includes patents filed in Russian Federation patent office, Ukrainian patent office and Former Soviet Union office; 3. Includes patents filed in European patent office, and in specific national patent offices in European countries; 4. Includes patents filed in the patent Cooperation Treaty Office and other national offices not cited. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 5

52 Production Technology breakdown Within production operations, obtaining fluid from wells has attracted increased attention Patents filed in relation to drilling and obtaining fluid from wells by technology category 1 # of patents filed per year Drilling, well equipment and maintenance 2 Obtaining fluid from well 3 Control, surveying and testing 3 1. Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Drilling, well equipment and well maintenance: IPC Subclasses E21B1 to E21B41; 3. Obtaining fluid from wells: IPC Subclass E21B43; 4. Control surveying and testing: IPC Subclasses E21B44 to E21B49. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 51

53 Production Technology breakdown Most patents published for drilling and obtaining fluids from wells relate to natural-gas recovery Patents filed for drilling and obtaining fluids from wells by technology category 1 Share of cumulated # of patents since % US244351A1 - Monitoring of downhole parameters and tools utilising fibre optics the chemical parameters are measured in real time and on-line and then used to control the amount and timing of the injection of the chemicals 33% US A1 - Well treatment composite for use in oilfield applications, e.g. treatment of subterranean formation or wellbore, comprises well treatment agent adsorbed onto water-insoluble adsorbent US A1 - Hydrocarbon gases extracting process for use between sea floor and hydrate base line, involves raising overhead receiver to sea depth where pressure and temperature permit to dissociate accumulated hydrates into hydrocarbon gas 59% Total Drilling, well equipment and maintenance 3 Obtaining fluids from well 4 Control, surveying and testing 5 1. Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Patent titles were improved by Thomson DWPI; 3. Drilling, well equipment and well maintenance: IPC Subclasses E21B1 to E21B41; 4. Obtaining fluid from wells: IPC Subclass E21B43; 5. Control, surveying and testing: IPC Subclasses E21B44 to E21B49. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 52

54 Production Technology breakdown Among the IPC class obtaining fluids from wells, most patents relate to the use of chemicals and heat Technology breakdown for obtaining fluids from wells 1 Share of cumulated # of patents since % 24% 67% EP B1 - Exploiting desired geo-productive resources from boreholes comprises placing compression plate within casing, applying pressure in parts of flow-through chamber, and applying pressure in lower borehole chamber WO A1 - Method of extracting hydrocarbon gases from hydrates in underground porous rocks, involves injecting hot water at pulsatory high pressure from ground surface facility on porous rock formation CN127492A - Method for exploiting natural gas hydrate, involves selecting hydrate decomposition-promoting agent i.e. methanol, from group consisting of salt water, where mass concentration of methanol is in specific range CN A - Natural gas hydrate extracting method, involves drilling extraction well on geologic body, sending liquid to water injection pipe via high-pressure pump after liquid is heated again, and executing next extraction circulation CN A - Machine-thermal hydrate exploiting method, involves converting hydrate sediments to hydrate sediment particles, decomposing mixture in decomposing chamber, and collecting gas generated from sediments in mining well Total Repressuring or vacuum method 3 Displacing by water 4 Use of chemicals or bacterial activity 5 Using heat, e.g. steam injection 5 1. Patents associated with obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B 43: Methods or apparatus for obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Patent titles were improved by Thomson DWPI; 3. IPC Subclass E21B 43/18; 4. IPC Subclass E21B 43/2; 5. IPC Subclasses E21B 43/22 E21B 43/25 E21B 43/27; 6. IPC Subclasses E21B 43/24, E21B 43/24, E21B 43/247, E21B 43/243, E21B 43/28. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 53

55 Production Publishers Since 196, corporate players have published 43% of gas-hydrate patents relating to technologies for drilling and obtaining fluids from wells Patent filed for drilling and obtaining fluids from wells by Publisher type 1 Cumulated # of patents since 196 Corporate - single company 23 Research organization - single institution 165 Corporate - consortium 24 Research organization(s) together with corporate player(s) 19 Research organization - consortium Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; This breakdown accounts for 84% of gas-hydrate patents published since 196. The remaining 16% were published by individuals or did not contain sufficient information to be included in this graph. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 54

56 Production Publishers Schlumberger, Halliburton and Clariant are the three main patentpublishing companies for gas-hydrate drilling and recovering technologies Main companies in patent publication in drilling and obtaining fluids from wells 1 Cumulated # of patents since 196 and breakdown by company 536 SCHLUMBERGER % HALLIBURTON CLARIANT BAKER HUGHES 3 15 ROYAL DUTCH SHELL 13 CHINA NATIONAL OFFSHORE OIL CORPORATION 11 74% CHEVRON CONOCOPHILLIPS BP PETROCHINA 8 8 STATOIL 6 1. Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 3. Includes patents published by Baker Hughes, and BJ Services; 4. Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 55

57 6. Industry landscape Gas Hydrates 56

58 Industry landscape Most publishers of gas-hydrate patents specialize either in exploration or in production, but seldom both Drilling and obtaining fluids from wells 1 Cumulated # of patents since 196 Geophysics 2 Cumulated # of patents since STATOIL CHEVRON HITACHI MITSUI ENG & SHIPBUILDING PETROCHINA CHINA NATIONAL OFFSHORE OIL CORPORATION FUGRO ROCK SOLID IMAGES BP ROYAL DUTCH SHELL CLARIANT OFFSHORE HYDROCARBON MAPPING CONOCOPHILLIPS 5 BAKER HUGHES 4 HALLIBURTON SCHLUMBERGER 3 1. Patents associated with drilling and obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B: Earth or rock drilling, as well as obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Patents associated with geophysics were selected from IPC class G1V: Geophysics, gravitational measurements, detecting masses or objects, tags. For more information on International Patent Classification (IPC), refer to slide 1; 3. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 4. Includes patents published by Baker Hughes, and BJ Services; 5. Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 57

59 Industry landscape Schlumberger, Offshore Hydrocarbon Mapping and Rock Solid Image have strong portfolios of patents relating to geophysics technologies Gas-Hydrate patents for geophysics by company and technology 1 Cumulated # of patents since 196 SCHLUMBERGER 3 11 OFFSHORE HYDROCARBON MAPPING 11 ROCK SOLID IMAGES 8 BAKER HUGHES 4 4 HITACHI MITSUI ENG & SHIPBUILDING 3 3 HALLIBURTON FUGRO 2 2 CONOCOPHILLIPS 5 MITSUBISHI HEAVY INDUSTRIES 1 1 Seismic or acoustic prospecting or detecting 6 Electric or magnetic prospecting or detecting 7 Other 8 1. Patents associated with geophysics were selected from International Patent Classification (IPC) class G1V: Geophysics, gravitational measurements, detecting masses or objects, tags; 2. Some discrepancies may exist between this slide and slides 41 and 55. For more information, please refer to slide 1; 3. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 4. Includes patents published by Baker Hughes, and BJ Services; 5. Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company; 6. IPC Subclass G1V1; 7. IPC Subclass G1V3; 8. IPC Subclasses G1V5 to G1V15. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 58

60 Industry landscape Clariant is the main publisher for patents related to gas-hydrate drilling, well equipment and well maintenance, followed by Halliburton Leading publishers of patents for gas-hydrate drilling, well equipment and well maintenance 1 Cumulated # of patents since 196 CLARIANT 26 HALLIBURTON 15 BAKER HUGHES 2 1 ROYAL DUTCH SHELL 9 SCHLUMBERGER 3 BP 8 8 CHEVRON STATOIL 4 4 BASF 3 1. E21B1 to E21B7 International Patent Classification (IPC) subclasses: Methods or apparatus for drilling, E21B1 to E21B12 IPC subclasses: drilling tools, E21B15 to E21B41 IPC subclasses: Other equipment or details for drilling, well equipment or well maintenance; 2. Includes patents published by Baker Hughes, and BJ Services; 3. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 59

61 Industry landscape Oilfield services companies are the largest publishers of patents relating to technologies designed to obtain fluid from wells containing hydrates Companies with more than two gas-hydrate patents for obtaining fluid from wells 1 Cumulated # of patents since 196 SCHLUMBERGER 2 HALLIBURTON BAKER HUGHES 3 CHINA NATIONAL OFFSHORE OIL CORPORATION CHEVRON ROYAL DUTCH SHELL CONOCOPHILLIPS 4 PETROCHINA CLARIANT STATOIL BP KAJIMA CORPORATION ATLANTIC RICHFIELD COMPANY EXXON MOBIL 3 MITSUBISHI HEAVY INDUSTRIES TOTAL SHIMIZU CORPORATION TAISEI CORPORATION WORLD ENERGY SYSTEMS Patents associated with obtaining fluids from wells were selected as those with International Patent Classification (IPC) class E21B 43: Methods or apparatus for obtaining oil, gas, water, soluble or meltable materials or a slurry of minerals from wells; 2. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 3Includes patents published by Baker Hughes, and BJ Services; 4Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 6

62 Industry landscape Schlumberger and Shell are the main publishers of patents relating to wellbore surveying Selected Companies with wellbore surveying gas-hydrate patents 1 Cumulated # of patents since 196 SCHLUMBERGER 2 5 ROYAL DUTCH SHELL 3 PETROCHINA 1 AMERICAN AUGERS 1 BAKER HUGHES 3 1 CHEVRON 1 CONOCOPHILLIPS 4 1 HALLIBURTON 1 1. Patents associated with wellbore surveying were selected as those with International Patent Classification (IPC) class E21B47: Survey of boreholes or wells; 2. Includes patents published by Schlumberger, PRAD Research and Development, and M-I Swaco; 3. Includes patents published by Baker Hughes, and BJ Services; 4Includes patents published by ConocoPhillips, Conoco, and Phillips Petroleum company. Source: A.T. Kearney Energy Transition Institute analysis, based on Thomson DWPI (accessed October 214) Gas Hydrates 61

63 Appendix Gas Hydrates 62