Commercialization of petroleum technology : a case study of EMGS’s business model and the commercialization of their marine CSEM technology

Abstract

This master thesis is a case study, and deals with the business model’s role in the commercialization process of petroleum technology. The case being studied is Norwegian geophysical service company EMGS and their marine CSEM technology, a technology supporting oil companies in their search for oil and gas. EMGS was established in 2002, in order to commercialize this technology. Through the exploration of EMGS’s business model throughout the years, this thesis tries to identify why EMGS and the marine CSEM technology has not yet achieved the predicted commercial success. The theoretical basis is general literature on the business model concept, as well as literature on value creation, value delivery and value capture. The literature served as a basis to identify concepts and ideas that were interesting to study further in the research process. The empirical data is collected through interviews with key employees at EMGS and supported through extensive written documentation. The thesis identifies characteristics of EMGS’s business model, and why the marine CSEM technology has not yet become an integrated part of oil companies’ exploration toolkit. One problematic area is the delivery of after-sales services. The oil companies lack knowledge about the technology, and need support in the interpretation phase. However, they are hesitant to share necessary information and data with EMGS. Another problem is the presales and marketing efforts. The technology has a potential 90 % success rate, but there are still large amounts of skeptics. This implies that the marketing procedures should be improved. Another key finding is the oil companies’ strong bargaining power, hindering EMGS’s value capture. It is also discovered through the thesis that outside events like the financial crisis have affected EMGS’s opportunities to deliver value. At the end, some recommendations for the further commercialization process of the marine CSEM technology are proposed.