‘
Outlining the History of Digital Oilfield (DOF),
Integrated Operations (IO) and Collaborative Working
in Oil and Gas Over The Last Decade
Stuart Carnell – StepChange Global
Control Room Design & Operation
Conference – March 2014
Our expertise
• an unrivalled resource in the application of Integrated Operations (IO) and digital oilfield enabled capabilities
• working with the leading companies in the field
• programmes, projects and pilots
• expertise from within oil and gas companies
• associations with leading institutions
• expertise in building ‘capability platforms’
• people lead management of change
• people that have expertise across the entire value chain
• subsurface, surface, projects, operations, LNG, mining
our clients - oil and mining companies
Integrated Operations, Strategy and Implementation and
IO for Projects, implementation of new operational models
Advanced Collaborative Environment Expert Strategy for
Aberdeen based assets
Strategy for application of IO to Brownfield redevelopments
and marginal Greenfield projects
Integrate Operations centre design and IO advisory services
Australian Operations – Brisbane GLNG and EABU
Collaborative Environment Strategy and Pilot
IO Operations Implementation Strategy for the Goliat Field
IO Strategy support for the Operations of the future program
IO internal training workshop for senior managers
our clients - oil and mining companies
Operations IO strategy and IOC centre design for APLNG
based in Brisbane
IO strategy support for the Western Australia business unit
Design of the IROC control floor layout in the new office
building in Perth
Corporate IO strategy – Support and advisory services to the
corporate IO Programme office
IO Strategy advice workshop for the Indonesian regulator
and operators
IO benefits study and value capture framework for the
ADCO North East Bab Asset
Full IO strategy plus IO centre design for operation, drilling
and subsurface
IO Strategy support and IO Centre design services for the
Woodside Browse iOps programme
‘Integrated Operations’
Integrated Operations – is seen as the future and the way of optimising the oil and gas business
Flow Assurance Analysis
Surveillance and Control of Subsea Production Systems
Umbilical and Flow line Monitoring
Drilling and
Completions
Production optimization
Condition Based monitoring
IWIS
Real-time Data And Visualization
Collaborative working (CWEs)
Remote Operations &
Management
Knowledge Management
Production Excellence
Reliability and Maintenance
Operations Excellence
Reservoir Management
Integrated Planning
Environmental
Monitoring
Major Projects
Asset Integrity
Intelligent Completions
Well Optimisation
i-Field, Digital Oilfield, Smart Fields, Integrated Operations ..what does it all mean?
fieldofthefuturetm
Smart Field
XM2010
‘Integrated Operations’
Integrated Operations
Integrated Operations
GEDIG
i-Value
Value Realised in Oil and Gas • Production Efficiency – 0.5 – 5%
• 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
– Concurrent Planning – Well planned < 2 weeks
– Improved well targeting and reservoir contact
• HSE
– 25% Reduction in offshore staff by Statoil
– Risk Reduction – Operating Envelope
• Brownfield – Field life extension by the application of IO
• Projects
– No IO Design being offered by EPC Contractors
– Brownfield learning bolted on to a greenfield
Senior management sees Integrated Operations transforming our industry
“Integrated Operations is a revolution that is reshaping our industry”
– Helge Lund – StatoilHydro – iE2008
“All new fields will be intelligent fields”
– Amin Nasser – Saudi Aramco
“I expect the use of Smart Technology to accelerate over the next decade”
– Malcolm Brinded – Shell – iE2008
“Our Operations Centre in Aberdeen monitors 28 rigs simultaneously”
– Andrew Gould – Schlumberger iE2008
“We have gained 85 mboed of production at $3-6 per boe”
– Dave Latin – BP Digital Energy Conference 2009
Shell Benefits from Smart Fields SPE - 128245
Reported in 2010
• Up to end 2009
• Based on $30 boe
• Entire SmartField
Programme
BP FotF and ACE Implementation SPE 128672
What is Integrated Operations?
‘The vision for the Digital Oil Field is one where operators, partners,
and service companies seek to take advantage of improved data and
knowledge management, enhanced analytical tools, real-time
systems, and more efficient business processes’
CERA: Digital Oil Field of the Future
What is enabled by an IO?
• Moving 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 working
• Value chain integration and optimisation
‘How we run our companies in the future’
Drivers
• Discoveries in increasingly
remote locations
• Key skill shortages
• Increasing technical nature of
new discoveries
• Performance Improvement
• Production efficiency
• Reservoir recovery
• Operational cost base
• High or Low Commodity Price?
• Risk reduction both HSE and
Production.
• Value chain integration
Enablers
• High bandwidth
communication
• Large storage capacity
• Quality video conferencing
• New sensor technologies
• New Analytical Methods
• New Business Processes
• New SCM Models
• New Operational Models
• New Organisational Models
Drivers and Enablers for Integrated Operations
The History of Integrated Operations has shown the following trend Value gained over time
Value
Time
Technology
Physical
Environment
• The Technologies are all available?
• Technology is the enabler
• The design of the Physical Environment can be done
Value
Time
Technology
Process
Physical
Environment
• Process Workflows need to be updated
• For the reduced decision making cycle time
• For alignment of geographically remote communities
• Temptation is to ‘fix the processes’ roll out
• Experience has shown that this approach is only partially successful
• Work processes in Collaborative Environments evolve!
The History of Integrated Operations has shown the following trend Value gained over time
Value
Time
People
Technology
Process
Physical
Environment
• A people approach to MOC is the key to success
• A process only approach to MOC will not work!
• If your people are not aligned with your management
vision it will not be a success, top to bottom
• Need to work with all levels in an organisation
The History of Integrated Operations has shown the following trend Value gained over time
Value
Time
People
Technology
Process
Physical
Environment
Organisation
Micro
• The micro-organisational structure needs to follow the value opportunity
• Multidiscipline teams are needed to optimise
• Geographical boundaries become irreverent
The History of Integrated Operations has shown the following trend Value gained over time
Value
Time
People
Organisation
Technology
Process
Physical
Environment
Organisation
Micro
Macro
• The Company or Macro Organisational model will need to
support the change in the way of working
• There are global opportunities
• Optimisation of the extended Oil/Gas Value Chain
• Support functions need to be operationally aware
The History of Integrated Operations has shown the following trend Value gained over time
An Integrated approach
Value
Time
People
Organisation
Technology
Process
Physical
Environment
Organisation
Micro
Macro
Integrated approach to MOC is
needed For a successful company
wide implementation of Intelligent Fields
Concept and a move to a ‘Global Real
time Organisation’
Capability Deployment rather
than technology implementation
Integrated Operations - A Capability Approach
‘By a capability we mean the combined capacity and ability to plan and execute in
accordance with our business objectives through a designed combination of
human skills, work processes, organisational change and technology’*
A Capability is a performance improvement methodology that is value
driven, measurable and action oriented. To have the ‘Capability’ to improve
business value you must have all of four key elements in place:
Process – What is the core value process and underlying
processes that is to be improved and updated
Technology – What technologies are needed to improve the
process
People/Resource – What skills, competencies and behaviours are
needed to execute the process and use the supporting technologies
Organisation/Governance – What organisational structures,
incentives and relationships are needed to execute the process
* Henderson and Kulutilaka 2008 – Boston University School of Management
The measurement to decision lifecycle
Store Measure Data
Transmit
Building Trust
Building Confidence
Building
Understanding
Implement Decision
Obtain Value Analyse
Improving Operational Excellence
IO elements for Success
Highest
Cost
Highest
Value
Change, Leadership, Training
Decision and Action
Organisation and Governance
Collaborative Working
Information Analysis
Information Visualisation
Communications Infrastructure
Data Capture and Storage
Value Creation
Work Process
Shared Situational Awareness
Shared Knowledge
& Situational Awareness
• Quality Real Time
data/information
• Mutual Understanding
- Shared Mental Model
• Trust
BreakEven
Throughput
Time
OperatingTarget
DesignLimitOperational Safety Margin
Loss
Shut Down
Profit
Partial Shut Down
Plant Upsets
Lost Opportunity
Where the Money is:
Eliminate the Red ………..
……….. Squeeze the Green
BreakEven
Throughput
Time
OperatingTarget
DesignLimitOperational Safety Margin
Loss
Shut Down
Profit
Partial Shut Down
Plant Upsets
Throughput
Time
OperatingTarget
DesignLimitOperational Safety Margin
Loss
Shut Down
Profit
Partial Shut Down
Plant Upsets
Lost Opportunity
Where the Money is:
Eliminate the Red ………..
……….. Squeeze the Green
Measurable Improved Performance Synchronised Action &
a Reduced Cycle Time
Observe
Action
Decide
Analyse
Capability to Add Value
• People
• Process
• Technology
• Organisation
‘to know what is going on so you can figure out what to do’.
Situational awareness A definition of situational awareness is:
• “If you have a function to perform in a situation that is fairly complex and
dynamic, such that you have to make decisions, then you have to be aware of
what is going on—at different levels—if you are to make the right decisions to
achieve your goals”.
A simpler definition of situational awareness is:
‘to know what is going on so you can figure out what to do’.
There are three steps in the development of a team's shared situational
awareness.
• Build individual situational awareness.
• Share individual situational awareness in order to build a shared mental
model from the individual mental models.
• Develop the group's shared situational awareness. This is the integration
of the different individual mental models of the situation.
…its about collaboration…
Drilling & Well
Maintenance Equipment
Maintenance
Production
Reservoir Geology
Logistics
Well Planning
…between disciplines, across business units, with suppliers and locations
• A new way to organize an operation
• Collaboration between people, across disciplines,
companies and places
• Truly integrated Multidiscipline teams
• Distribution of internal & external information
• and knowledge
• Better use of scarce resources
• A dynamic organization
• Distributed real time working
• Has reduced decision time and improved decision making
• Is the way you add value from Integrated Operations
Collaborative Environments
The focus and value of IO is in moving towards real time decision making and optimisation
Mins > Hours Hours > Days Days > weeks Weeks >
Months > Years
Timescale of Work Process
CE
Key Processes Well Optimisation
Production Optimisation
System Optimisation
Drilling Performance Optimisation
Defect/Fault Resolution
Maintenance and Eng Support
Level 1 ‘Near Real
Time Team’
• Support to CE
• Located close to CE
• Asset Based Team
• Multidiscipline e.g.
Res Surveillance.
• Dedicated Resource
Short Cycle Time
Level 2
‘Support Team’
• Discipline Based Eng
Functions
• Assurance
• Shared Asset
Resource
• Located farther from
CE
• Maintenance
Planning
‘Support Functions’
• HR, IT,
• Eng Mods & Changes
• Shared Resource
• Located Remote from
Collaborative
Environment
Level 1 Support
‘Real Time Team’
• Real Time Data
Enabled
• Real Time Decision
Making
Plan Implementation Short Term Planning Long Term Planning
Technology Plans etc…
Integrated Field Planning
Real Time Optimisation is Core to CE environments
Collaborative Environment Success Factors
• The ability to Collaborate
• One to One, One to Many, Many to Many
• Always on VC to build situational awareness
• Full time occupancy of the rooms – The entire asset team is involved
• Modes of working
• Planned and execute
• Synchronised way of working
• Organisational Alignment
• Team organisation needs to be aligned to Collaborative way of working
• Often a move to multidiscipline Asset Teams
• One team approach i.e. team in the field and the office the same team
• Performance incentives for the teams need to be aligned
• Change management and coaching to change the way of working
A network of Collaborative Environments build a vision of a new way of working
34
Integrated Organisation – Fully Integrated Asset Management
Benefits:
• Increased availability
• Reduced maintenance costs
• Guaranteed performance for known through life cost
• Long term benefits for both operator and supplier
• Optimised processes and organisational structure
• Value driven organisation wide decisions
• Understand interdependencies
Changes enabled by Integrated operations
Before With IO
Serial
Single discipline
Dependent of physical location
Decisions based on experience data
Reactive
Parallel
Multidiscipline teams
Independent of location
Decisions based on Real-time Data
Proactive
A big change to the way we work
Conclusions
• The vision of a ‘new way of working’ is beginning to be
realised in many companies
• It is about Distributed Real Time Working
• There is significant proven value in Integrated Operations
• Technology is the enabler but Consideration of People,
Process and Technology a key to success
• IO is very Company, Culturally and Organisationally specific
• The vision is how we tie together IO Projects
• IO is fundamentally changing the way we do business in Oil
and Gas
• Integrated Operations is how we will run our companies in
the future
Integrated Operations – is a framework to optimise the other business’ – Mining
Real-time Data And Visualization
Collaborative working
Remote Operations &
Management
Knowledge Management
Production Excellence
Reliability and Maintenance
Operations Excellence
Water Management
Integrated Planning
Environmental Monitoring
Asset Integrity
Energy Management
Product Quality
Production optimisation
Event Management Expert Support