[Oil & Gas White Paper] Gas Production Measurement System

Gas Production Measurement System Advanced data management serves all operations and business efficiency

2010 / White paper

Make the most of your energy SM

Summary

Executive Summary .................................................................................... p 1

Introduction ................................................................................................ p 2

Putting a measurement system to work ...................................................... p 4

Value-added functions ................................................................................ p 4

Informative user interface ............................................................................ p 9

Supports corporate governance ................................................................. p 10

Benefits across the enterprise ..................................................................... p 10

Conclusion .................................................................................................. p 13

Executive summary

A comprehensive measurement data management system that collects data

from multiple sources in natural gas pipeline and distribution operations, performs

value-added functions, and then makes that data available across the enterprise in

real time can significantly improve accounting and overall business efficiency.

This automated information management solution centralizes the database of field

measurements, standardizing all readings in one consistent set of units and base

conditions. It recognizes data that does not meet expected operational values to

identify when device adjustments are needed. It estimates missing values to allow

continued processing for accounting close and system balance. A Gas Quality

Manager interfaces with online gas chromatographs to provide correct gas quality

values to the flow computer in real time, or as periodic reports, to capture gas

composition variations.

Flow editing with documentation makes correction of volume errors efficiently.

True representation of both volume flows and energy content enables system

balances of both parameters for accurate account processing. Robust validation

identifies problem areas to make the most of analyst time and optimize

subsequent processing. Finally, comprehensive data tracking allows full reporting

and a complete, auditable log of all adjustments, data edits, production and fuel

costs, and gas quality. An integral Human Machine Interface (HMI) and integrated

geographic information system (GIS) allows clear visualization of network status

indicators and values. With separation of powers between data adjustment and

data validation, and all data available in the host system, the operator is prepared

for internal and external governance audits.

While this system significantly reduces errors and makes more adjustments

possible during the open business period to improve accounting processes,

this automated measurement system also supports decision making and nearly

all processes and positions throughout the enterprise. Benefits realized include

improved workflow and fewer maintenance costs; reduced penalties for over/

under nominating; reduced risks in making capital decisions; improved regulatory

reputation; reliable and traceable emissions reporting; and value assurance that

protects revenues.

Reduce errors, improve workflow, save money

White paper on Gas Production Measurement | 01

Advanced Data Management for Operational Efficiency

Introduction

While electronic flow measurement (EFM) has become a best practice in

pipeline and distribution processes, upstream production and gathering

operations often have maintained batched or charted measurement data –

paper reports that transfer to the accounting process a week or even a month

after the data is collected.

Yet, as gas producers look for solutions to improve efficiency and save

costs, the business benefits of electronic measurement are prompting more

implementation of EFM devices and the advanced applications that streamline

the transfer of electronic data from the wellhead to production accounting. This

paper examines how an automated measurement system managing data from

the field and making it available in real time throughout the enterprise works to

improve the accuracy, completeness, and timeliness of accounting processes

and overall business efficiency in gas production operations.



Helping gas companies meet expanding and changing needs



Putting a measurement system to work

Production operations using a comprehensive measurement data management

application designed specifically for natural gas business processes can replace

gas composition spreadsheets, charts and other paper files – and automatically:

• Set user authentication and permission controls

• Validate data with user-established limits, assuring the correct data are

sent downstream

• Correct data for pressure or temperature errors

• Estimate missing data

• Track all data editing and changes

With these capabilities, the gas producer realizes:

• Longer data storage capability

• Accurate representation of gas composition variations

• Timely closing

• Fully documented and auditable editing

• Direct integration with production accounting

• More efficient and accurate accounting

Value-added functionsThe fully functional gas measurement system is comprised of:

• Measurement database

• Reading manager

• Real-time database

• Protocol drivers

• Polling Engine



Value-added functions (continued)

As a system, the comprehensive gas measurement application automatically

improves the reliability of measurement data:

Standardization • Stores all readings in one consistent set of units and base conditions;

for example, the application can convert readings from thousands of

cubic feet to thousands of cubic meters (with 459.67 Rankine equalling

0 Fahrenheit):

• All inputs, such as EFM data, chart data, manual entries, in metric or

imperial units, are processed in the same way after capture

• Data can be displayed in any units and changed as needed

Figure 1. How a gas measurement application interfaces between the field data and the production accounting process. Not to be overlooked is the ability of the measurement system to provide feedback to EFMs and chart integrators for a more accurate information harvest.

ConfiguringAdjustment

NominatingBalancing

AllocatingCalculation MeasurementDatabase

Reading Manager

RealTimeDatabase

ProtocolDrivers

Polling Engine

Prod AcctDatabse

BillingEstimation

ReportingValidation

GQ Manager




Adjustments While EFMs are very reliable, they are not infallible. A measurement system will

check data against the expected operational values, other flow computers, and

gas chromatographs to ensure they are measuring accurately.

EstimationThe measurement system will check for missing data that might result from failed

field equipment and issue a warning about the data gap. It will insert usable

estimates and predict future values when data values are late. This functionality

improves continuous business processes such as accounting close and system

balance.

Gas Quality ManagerA gas quality manager will assure adequate gas quality information by interacting

with field devices such as gas chromatographs and providing correct gas quality

values to the flow computers in real time (Figure 2).

Figure 2



Even when provided with laboratory analysis data from discrete samples, the

measurement system can improve gas quality information to flow computers in

near real time (Figure 3).

In both cases – with direct measurements from the field or from the laboratory –

the measurement system should also be able to implement gas quality correction

directly to flow computers or when values arrive at the host.

The GQ Manager module also will provide reports of gas quality changes, at

mid-period, the month before closing, or at closing, that will support accounting

processes.

Figure 3




CalculationFlow editing is basically recalculating average flow rate over a period (i.e. volume)

and energy content of those volumes. Typically volume is edited by fixing a

primary datum, and recalculating volume using a flow rate calculation, e.g. one

of the AGA or ISO standards. This capability of the measurement system makes

correction of errors efficiently and documents all revisions; see Figure 4.

Balancing A measurement system with a true representation of both volume flows and

energy content enables system balances of both, preparing measurements for

accurate account processing; see Figure 5. Consider the following scenario:

• Gas supply #1 = 1000 BTU/CF, while gas supply #2 = 1010 BTU/CF.

• This difference amounts to each cubic meter from supply #2 being

one percent more valuable.

• Natural gas is traded at $7 per MCF

• Configuration is for one BCF per day throughout

• Uncertainty of one percent in supply, or $70,000 per day

Figure 4 The transparency and tracking of flow editing adjustments produces accurate custody transfer data suitable for billing.




ValidationAs the measurement data is collected, the validation system should automatically

apply user-specified rules before it passes data on to other modules for further

processing. Data that fails can be flagged as either suspect or invalid, so the

analyst can promptly attend to actual problem areas. This approach makes

efficient use of analyst time and assures attention to genuine measurement issues.

ReportingAn automated measurement application should record all measurements and data

adjustments in its database, including time/date stamp, the personnel involved,

and the reason for the information change. This comprehensive tracking allows full

reporting and a complete, auditable log at the system host:

• Adjustments – all adjustments and changes of any nature to the production

configuration – such as a plate diameter change

• Edits – all data edits such as flow editing

• Production and fuel used – correlating these measurements and sending the

most accurate information to the PA system for payment purposes

• Gas quality – electronic integration with chart integrators, field, and host

allows reporting during or after the month or other reporting period

Informative user interfaceThe Human Machine Interface (HMI) of the measurement system should provide

a high-level indication of data quality, easily distinguishing missing or erroneous

values – all to optimize measurement accuracy. Integration with an advanced

geographic information system (GIS) allows viewing of wells with production

characteristics.

Validation identifies operational issues

The validation tool of a measurement system

identifies differential pressure data that is out-

of-band, as defined by the user, and would be

interpreted downstream as ‘no-flow’ or ‘limited-

flow’ – when in fact the problem might be due

to a transmitter problem. Validation can alert

the field technician to check the transmitter; it

also allows correction, with appropriate tracking

that documents acceptance or change and

recalculation.




Supports corporate governanceWith all data available in the host system, including reports of data adjustments,

the producer is prepared to meet the standards of both internal and external

corporate governance audits. While compliance issues vary from one governing

body and location to another, the automated measurement system will collect

all production-related information with a ‘separation of powers’ between data

adjustment and data validation and enable the producer to demonstrate it has

command of the ‘complete picture.’

Benefits across the enterpriseClearly, an electronic measurement system connected to the enterprise PA

database significantly improves accounting efficiency:

• Eliminates errors and questions that plague and undermine accurate

transactional billing

• Makes more adjustments possible during the open business period

and decreases the prior period adjustments

Even flat file transfer from the measurement system to PA will provide complete,

corrected information that will benefit accounting accuracy.

Yet, an automated measurement system also benefits nearly all processes and

positions throughout the entire enterprise, by making production data available in

real time to support the decisions that optimize business:



CEO, CFO Increased confidence in the quality

and accuracy of the data. Protects

revenues/reserves. Supports

ERCB Directive 76 EPAP self audit

requirements.

COO, VP Operations, Field Managers Improved field workflow (see Figure

5) and decreased maintenance costs

through exemption/risk management.

Production Accountant Decreased amendments & 13th

month / Prior Period Adjustments.

Corrections within allowable time.

Increased royalty certainty. Ability to

meet deadlines with volume certainty.

Joint ventures (Customers/Partners) Increased confidence on CO&O.

(Construction, Ownership, Operation)

Decreased audit query costs.

Divestitures/Acquisitions Asset value certainty.

Marketing Decreased penalties for over/under

nominating. Better volume certainty

enables better decisions for firm

service purchases.

Engineering Certainty of information when trending

and making capital decisions.

Regulators – ERCB, OGC, SIR, etc. Reduces costs of regulatory

deficiencies. Solid reputation with

regulators lead to less inspections.

Green House Emission Reporting,

Carbon Tax Reporting

Reliable, traceable and trackable data

available once source.

HS&E Correct H2S determination, flare

and vent volume assurance, device

maintenance, tools to identify loss of

volumes, EPZ determination through

measurement assurance.

Shareholders Value Assurance. Protects revenues.

Benefits across the enterprise (continued)



Benefits across the enterprise (continued)

Figure 5 The measurement system provides automated work orders to field technicians for efficient, and documented, asset maintenance.

Conclusion



Gas production measurement systems in a nutshell

Accurate flow measurement is a cornerstone of any successful natural gas

company. An advanced, centralized gas measurement data management system

can verify flow data against redundant sensors and interface with composition

data in real time for accurate energy data determinations needed for billing and

transactional balancing. As a comprehensive system, it can automatically perform

aggregation, validation, analysis, accounting close and measurement adjustment

that comply with specific business rules and support full corporate auditing.

Designed for flexibility and scalability, it can help the gas industry company meet

expanding and changing needs.

Scalable and flexible to meet the dynamic needs of the gas industry

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August 2012

Schneider Electric USA, Inc.

10333 Southport Rd SW, Suite 200 Calgary, AB T2W3X6 Phone: 1-866-338-7586Fax: 1-403-259-2926www.schneider-electric.com/us

Technology

[Oil & Gas White Paper] Gas Production Measurement System