R&D Tax Credit | Oil & Gas

We have experience working with companies in the Oil & Gas industry, identifying suitable innovation funding and incentive solutions for their businesses.

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Enhancing Oil & Gas Operations Through R&D Tax Credit Initiatives

The oil and gas industry continues to grapple with the ongoing challenge of discovering and extracting energy to meet global demands for power. This challenge is compounded by the diminishing availability of easily accessible oil reserves and the complexities associated with exploring resources in remote and challenging locations. The primary drivers of research and development in this sector are focused on enhancing operational efficiency, improving safety measures, and reducing costs. These objectives are further complicated by increasingly stringent environmental and safety standards.

Research efforts in the oil and gas industry have identified critical areas of focus, encompassing subsurface imaging, hydrocarbon production, the recycling of produced water, carbon capture and storage, innovative well injection techniques, water management strategies, the implications of nanotechnology, subsea production methods, and the creation of remote technologies designed for deepwater facilities. Research and development activities span various project phases, including exploration, assessment, development (including front-end engineering design), and production.

Examples of eligible R&D activities in the Oil & Gas Industry that qualify for R&D tax credits include:

  • Developing cutting-edge technologies to optimize wellbore placement.
  • Advancing extraction techniques, such as fracturing technology.
  • Extending the operational life of mature oil fields and ageing reservoirs through the development of new technology.
  • Innovating new or improved methods for detecting and preventing cracking or corrosion in oil pipelines.
  • Enhancing processing techniques, particularly for lighter oils.
  • Developing novel technologies to increase production yield and throughput in midstream and downstream processing plants.
  • Conducting geotechnical studies in challenging environmental locations to support the design and construction of new plants.
  • Creating tools for modelling and simulating different fields under varying conditions throughout their life cycle.
  • Developing technology for autonomous underwater vehicles (AUVs) with improved imaging capabilities, enabling surface operators to observe activities near the seafloor.
  • Designing software to improve the interpretation and performance assessment of reservoirs during exploration and development phases.

Eligible expenditures for R&D tax credits may include wages, costs of third-party contractors (conducting R&D within the EEA), materials, machinery, equipment, and overhead expenses.

What Braithwaite can do for you

At Braithwaite, we offer our expertise in R&D tax credit consulting to help your company maximise the benefits of research and development tax credits. We understand the intricacies of claiming R&D tax credits and can guide you through the process while avoiding common pitfalls. With our assistance, your company can confidently pursue robust, successful, and compliant R&D tax relief endeavours tailored to the Oil & Gas Industry, thereby taking full advantage of innovation tax incentives, IRS R&D tax credits, state R&D tax credits, and other available tax benefits in the realm of technology, manufacturing, engineering, pharmaceuticals, and software development.

Contact us today for further information: [email protected].

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