The NOC Technology & Innovation Management Challenge highlights the increasing importance of technology leadership for NOCs in facing domestic and international challenges. Over the past five years, some NOCs have raised their technical capabilities and gained confidence in "going it alone" without IOC expertise, while IOCs have pledged significant investments in new projects to maintain their technical capabilities. However, the rate of growth for IOCs' R&D investment has averaged 5.0% since 2004, while leading NOCs have grown at 9.9% and leading service companies at 6.8%. Some NOCs, such as PetroChina, Petrobras, and Saudi Aramco, have invested more than IOCs and OFS companies in R&D, eroding the technology lead of IOCs. While some NOCs have established clear leadership in areas of particular significance to them, others have partnered with peers for access to their resources. The chart shows R&D spending for selected IOCs, NOCs, and OFS companies from 2004 to 2015, with a CAGR of 3.1% for IOCs, 8.6% for NOCs, and 4.0% for OFS companies.
