SPE Drilling Automation Workshop

Adoption of the Digital OilfieldAdoption of the Digital Oilfield

SPE Drilling Automation WorkshopSession II – Common Language and Terminologyg g gy

14 April 2010

Moody Gardens Hotel, Galveston, TX, USA

Presentation by

K l F id CEO f M i k S tKemal Farid, CEO of Merrick Systems

The Digital Oilfield “DOF”

Production operations lagged in adopting digital/automation

Complex multidisciplinary industrial process

Industry wide operating transformation

C ti d d t i C t h dCooperation needed – operators, service Cos, tech vendors

Driven by changing driversComplexity and costsComplexity and costs

Resource limitations

Maturing workforce

Similar issues to Drilling Systems Automation

For more information call Alan Black at 832-2894210 or email: [email protected]

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DOF Oriented Industry Initiatives and Events

Many groups drove adoption of DOF concept 2003-2010

SPE Workshops, Papers, Surveys

Groups:CERA DOFF FCERA DOFF Forum

SPE Digital Energy TechSec

SPE Real Time Optimization TIG

Energistics

Events: Di it l E fDigital Energy conferences

Intelligent Energy conferences

Integrated Operations conferences


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Getting the Industry on the Same Page

Benchmarking

Benefits and Case Studies

Standards for Data and Integration

Identifying Enabling Technologies and Barriers

Classification and Assessment

Terminology and Scope

Industry groups facilitated adoption by working toward a common vision of Digital Oilfield and enabling cooperation


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vision of Digital Oilfield and enabling cooperation

Components of DOF

People + Process + Technology Regulatory / Financial / Logistics

Instrumentation and Automation

Optimization

Workflows / CollaborationFacilities / Operations / Production

Eff ti I t ti

Efficient IntegrationReduce Cost

Integrated Modeling

Remote Operations / Operation Centers

Change Management / Methodologies

Drilling / Reservoir / Geoscience

Effective IntegrationProduce More Oil and Gas

g g g

The major benefits come from integrated operationsThe culture of separated disciplines runs deepThe culture of separated disciplines runs deep

Workflows/processes don’t cross departments

Data is locked away

L k f ll b ti Large scope common terminology helps


Lack of collaboration Large scope – common terminology helps

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Identifying Barriers to Adoption

In 2007 SPE survey – many barriers (SPE110236)Data availability – finding data is a dominant issueTechnical and business analysis – lack of integrationDecision making – lack of automated workflows

80%

100%

No BarriersMinor BarriersMajor Barriers

ProducersProviders

80%

100%

No BarriersMinor BarriersMajor Barriers

ProducersProviders

Systems are not integrated

Lack of standards0%

20%

40%

60%

0%

20%

40%

60%

People / culture / change management

Lack of management awareness and support

Engineers are not great at building the business case

0%Data Tech Analysis Bus Analysis Rec /

DecisionsAction

0%Data Tech Analysis Bus Analysis Rec /

DecisionsAction


Engineers are not great at building the business case

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Spider Diagram of Technology Status

Yardstick to gauge status – identifies both scope and maturity

Identify optimization opportunities

Simple and measurable

P id b h kProvide a benchmark

Distinct from economics

Level 1 – ad hoc

Level 2 – multi-functional

Level 3 – integrated

(SPE 90213)


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Benchmarking Phased Technology Projects

Progression left to right (#1)

Complexity increases

Adoption increasesp

Impact increases

Projects evolve differentlyProjects evolve differently

Progress

StallStall

Decline(SPE 90213)


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( )

Building the Business Case for DOF

Quantifying benefits is important

Case studies / success stories help

Drive executive support / budgetpp g

(SPE 128675)


( )

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Where does DOF go from here? Lessons…

DOF is a mature concept – but adoption is still in progress

Technology adoption curve long - decades

People issues dominate implementations – changep p g

Use varies widely and defies attempts to standardize

Projects around ontology are ongoingProjects around ontology are ongoing

SPE role in getting hereAwareness

Knowledge sharing / education / community

Acceleration of adoption


Acceleration of adoption

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Thank you

Questions?

Contact: Kemal Farid@MerrickSystems comContact: [email protected]


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Presenter Bio – Kemal Farid

As President, CEO and Co-Founder of Merrick Systems, Farid directs the strategy of the business, including product development and support, and created Merrick’s original software products in the early 1990 F id h b k d i t t d t t d t d t l ith 221990s. Farid has a background in automated test and measurement and process control with 22 years of software development experience and 18 years in the oil and gas industry. His academic qualifications include a degrees in electrical engineering and computer engineering from the University of Texas at Austin and executive business education at Massachusetts Institute of Technology.

Farid is an active member of the Society of Petroleum Engineers and Chairs the SPE Technical Interest Groups. He is also active in the Institute of Electrical and Electronic Engineers, Rice Alliance for Entrepreneurship and Innovation, MIT Enterprise Forum, Entrepreneurs Organization and the Houston Technology Center. Farid is a mentor to students in the Entrepreneurship program at the University of Houston and chairs the University of Houston College of Engineering Technology Industrial Advisory BoardBoard.

Contact information:Kemal FaridPresident & CEOMerrick Systems4801 Woodway, Suite 200EHouston TX 77056+1-713-579-3409Kemal Farid@MerrickSystems com


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[email protected]

Abstract

This presentation covers the lessons learned from the adoption of digital technologies in upstream production operations and how they relate to the similar challenge of the adoption of automation inproduction operations and how they relate to the similar challenge of the adoption of automation in drilling operations.

The audience for this presentation is the community of engineers and technologists interested in advancing the adoption of automation and related digital technologies in oil and gas drillingadvancing the adoption of automation, and related digital technologies, in oil and gas drilling operations. The last decade has seen the adoption of automation and digital technologies in upstream production operations. This transformation of the upstream production business is ongoing and the objective is often referred to as the Digital Oilfield (DOF).

The adoption of DOF has many similarities to the adoption of drilling automation. It is a multidisciplinary challenge involving many technologies and stakeholders. In both drilling and production, the challenges include cultural barriers to change, integration challenges, transformation of workflows, increasing complexity in operations, a lack of process optimization and a workforce in transition. There are many p y p , p p ylessons learned from the adoption of the Digital Oilfield, such as the role of professional societies in providing industry thought leadership, the role of workflows, change management, building business cases and methods to accelerate adoption. This presentation will provide an overview of these issues, how they have been addressed during the adoption of DOF and how that experience can help the adoption of drilling systems automation


adoption of drilling systems automation.

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Diagram Detail – Petrobras GeDIg Spider


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Diagram Detail – RTOTIG Example Spider


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Diagram Detail – Pilot Benchmarking


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Diagram Detail – DOF Cash Flow Acceleration


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Diagram Detail – Production Optimization


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Documents

SPE Drilling Automation Workshop