“How IT enables the Oil and Gas Industry” Lewis...

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Digital Oilfield

“How IT enables the Oil and Gas Industry”

Lewis YimBEACON Global Services - Operations Manager

Baker Hughes Incorporate

20th October 2011 Baker

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Outline

• Intro

• Lifecycle of a Well

• IT in Oil & Gas

• Challenges

• What is Digital Oilfield?

• Opportunities/Solutions - BEACON

• Examples

• What’s next Digital Oilfield

• Questions

© 2011 Baker Hughes Incorporated. All Rights Reserved.2

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About Baker Hughes*

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*FY 2010: Baker Hughes and BJ Services

Revenue R&E Employees Facilities Operations

$14.4billion

$425million

53,000+ 72countries

80+countries

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A Customer-Focused Organization

Gulf of Mexico

USLand

Canada

Latin America

Europe

Africa

Russia Caspian

Middle East Asia Pacific

Region headquarters

Geomarket headquarters

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Business Segments

Reservoir DevelopmentServices

Drilling and Evaluation

Completions and Production

Pressure Pumping

Industrial Services

Integrated Operations

Global Support

Portfolio Management

Global Marketing

Supply Chain

Reliability and QualityBaker

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The lifecycle of a well

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SeismicSurveys

Drilling LoggingWell

CompletionsFracturing/Stimulation

Production

Physical Environment MsMicometers+250°C30,000 PSI

DecadesKm

-50°C10s PSI

IT Environment 10^10 b/measurement100’s gb/sms

10s b/day10s b/s

Hours/Days

Business Environment $20K/Day$20+BLocal Farm10 Major customers

$500k/Day$10ks/hr

Arctic1000’s “mom & pop”

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IT in Oil and Gas

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• Approx 1.4% of its total revenue being spent on ICT

• In 2008, the total spending reached $37.6 billion.

TelecomServices,

$4.7IT Services,

$5.0

ComputerEquipment,

$5.9IT

Outsourcing,$9.1

Software,$9.7

CommsEquipment,

$1.2

Global O&G IT budgetspending

(US$ billions, 2010*)

*Source: Forrester Research 2010 report

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IT in Oil and GasGlobal ICT budget Spending (US$ billions)

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Forrester Forecast

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Challenges in Oil & Gas

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Challenges in Oil & Gas

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• Complexity of new wells

• HPHT

• Deep-water

• Unconventional oil & gas

• Extended reach

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Challenges in Oil & Gas

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• Complexity of new wells

• HPHT

• Deep-water

• Unconventional oil & gas

• Extended reach

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Challenges in Oil & Gas

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• NPT (non productive time)

• Cost $26b

• Wellbore Stability (37%), Rig Failure (22%)

• Human Factors

• Health and Safety

• Aging Workforce (majority to retire in next 5 years)

• Inexperience

• Time

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Challenges in Oil & Gas

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• Geographical

• Emerging markets/experts

• Remote locations

• Travel

• Time zones

• Local legislation/regulations

• Demand

• Increased Energy consumption

• Government pressure

• Oil Price Up and DownBaker

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Pop Quiz

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How much data does an oil rig produce per day?

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i-Field, Digital Oilfield, Smart Fields, IntegratedOperations, Field of the Future???

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What is Digital Oilfield?

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„The vision for the Digital Oil Field is one where operators, partners, andservice companies seek to take advantage of improved data and knowledge

management, enhanced analytical tools, real-time systems, and moreefficient business processes‟

CERA: Digital Oil Field of the Future

• Move to a real time or near real time way of working

• Connection of one or more remote sites or teams to work together

• Moving to more multidiscipline way or workingBaker

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The Digital OilfieldCommonly terms used

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Real-time Data

Visualization

Production optimization

Condition monitoring

Remote OperationsKnowledgeManagement

Flowline Monitoring

Control of Subsea Production Systems

Virtual Collaboration

Source: Step Change Global

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Building the DOF platform

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Organisation

People

Process

Technology & Environment

Capability Deploymentnot

Technology Implementation

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Solutions/OpportunitiesBaker Hughes’ vision of Digital Oilfield

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Real-TimeCollaboration

DataManagement

Global Standards

RemoteOperations

24/7 TechnicalSupport platform

BEACON - The Baker Hughes platform for remote

operations, managed at the enterprise level, deploying commonstandards and services to provide a global, secure servicedelivery model

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Opportunities – “Re-Manning”

Traditional offshore crew configuration with additional specialist services:

2 DD 2 MWD 2 DE 2 ML 2 Spec

+

+

BEACON offshore crew:

DDx ARTE ARTEDDx

=8 – 10

people

offshore

+ +

BEACON onshore crew:

=2 – 3

people

offshoreSpec SpecBak

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Opportunities – Data Delivery

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Opportunities - Real-Time VisualizationFrom the Driller …… to the Geologist

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Opportunities - Real Time Collaboration’s NetworkFrom Driller to Geologist

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IT EnablersWhere “Core” IT enables the Digital Oilfield

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Digital Oilfield

Infrastructure

Hosting &Storage

Security

Software

VideoConferencing

Process

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Results

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• Operations and Maintenance

– Opex Cost Reduction 5-15% Standard Industry figures

• Drilling and Well Planning

– Reduction in NPT 5-15% reduction in total well time

• HSE

– 25% Reduction in offshore staff

– Environmental monitoring opportunity

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What’s Next?

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• More utilization of Cloud technologies

• Increased automation at rig sites

• DOF included in the design of new oilfields

• Preventative prediction

– think Minority Report

• Integration of other disciplines

– Supply Chain

– Finance

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