INFORMATION STANDARDS: An Essential Enabler for Integrated Operation of the Digital Oilfield

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INFORMATION STANDARDS An Essential Enabler for
Integrated Operation of the Digital Oilfield
and Successful Realization of National Objectives
National Data Repository Conference 7 Cartagena,
Colombia 18-20 September 2006

• Alan Doniger
• Chief Technology Officer
• POSC

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POSC and NDR

• Long-term Partners
• Strong Support from the beginning and in the
  future
• We make presentations about POSC industry
  standards
• We publish conference announcements and material
• Todays Themes
• Update POSC is changing!
• Update The standards are growing we continue to
  learn better ways of collaborating and delivering
  value!
• Thoughtful Questions for You
• How can you help POSC be more helpful?
• How can POSC help you help each otherbetween
  conferences?

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About POSC

• Petrotechnical Open Standards Consortium
• Not-for-profit membership corporation
• Founded 1990 by 5 energy companies
• 50 members
• Upstream E P is our subject area
• www.posc.org is our Web site

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Members Energy Cos, Service Cos, Software Cos

• MetaCarta Inc.
• Oil IT Journal
• Oilware, Inc.
• OpenSpirit Corporation
• Paradigm Geophysical
• Petris Technology, Inc.
• Petrolink Services
• Petrotechnical Data Systems BV (PDS)
• RF - Rogaland Research
• Roxar
• Satyam Computer Services Ltd.
• Schlumberger
• SDC Geologix Ltd.
• Seismic Micro-Technology, Inc. (SMT)
• United Petroservices Energy Group

• BP
• Chevron Corporation
• ExxonMobil Corporation
• Norsk Hydro a.s.
• Oil Natural Gas Corporation Limited (ONGC)
• Pioneer Natural Resources USA, Inc.
• Shell
• Aspen Technology Inc.
• Flare Solutions Ltd.
• Halliburton     Landmark Graphics Corp.
• Intelligent Agent Corporation
• Interactive Network Technologies, Inc. ( INT)
• Knowledge Systems, Inc.
• M H Energy Services

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Members Government Agencies, Academics, Industry
Groups

• American Geological Institute (AGI)
• British Geological Survey
• Bureau of Land Management (US BLM)
• Common Data Access Limited (CDA)
• Department of Trade and Industry (UK DTI)
• Geoscience Australia
• Geoshare Users' Group (GUG)
• Institut Français du Pétrole (IFP)
• Internet Society
• Minerals Management Service (US MMS)

• Nancy School of Geology (GOCAD Project)
• Norwegian Petroleum Directorate (NPD)
• Object Management Group
• OFS Portal
• Open Geospatial Consortium (OGC)
• Petroleum Industry Data Exchange (PIDX)
• POSC/CAESAR Association
• Romanian Society of Geophysics (RSG)
• The Open Group

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Areas of Focus
Global Unique Well Id Stds
Reference Data Standards
Board
EP Business Process Reference Model
Data Management SIG
Economics
Drilling SIG
Reservoir

Production

EP Catalogue Standards
Engineering
Geology
Production SIG
eRegulatory SIG
Expl

Petrophysics
Petroleum

Geology
Engineering
Drilling

Production

Facilities

Engineering
Engineering
Engineering
Production

Drilling

Completion

Operations
Geophysics
Operations
Workover
XML exchange standards, design guidelines,
profiles
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The New POSC

• POSC Board Re-ignite upstream industry-wide
  interest in standards definition and adoption by
• Taking a fresh look at the organization
• Capabilities
• Delivery model
• Positioning
• Including broader representation
• More national energy companies
• More regulatory agencies
• More vertical service companies
• More horizontal IT organizations
• More professional services organizations

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The New POSC

• Focusing on value
• Community effect
• Information exchange efficiency
• Value delivered by existing standards
• Drive through to deep deployment
• Re-inventing the organization
• Same upstream EP focus, but
• New leadership
• Clarified mission and vision
• New name
• New image
• Launch November 8, 2006, Houston

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The Prize

• The upstream oil and gas industry believes that
  increased standardization can result in billions
  of dollars of additional value in the area of
  production optimization, alone, and knows that
  there are additional billions to be saved in
  other areas of the business.

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Example (from PRODML Work Group)

• Consider this in terms of production increase
  potential
• Shell produces about 4 million bbls oil
  equivalent per day
• With optimization, conservatively, Based on 5
  improvement, that would add 200k bbls per day.
• To achieve that much more production, 2 platforms
  would have to be built and put in service in the
  Gulf of Mexico
• Cost 3 billion USD
• Time 5 years
• Resources up to 3 thousand people.

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E P Standards

• Recent investment in EP standards efforts focus
  on information exchange in high value areas, such
  as Drilling (costs) and Production (revenues)
• WITSML Drilling Data to Office (started 2000)
• PRODML Production Optimization (started 2005)

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WITSML WWW.WITSML.ORG Wellsite Information
Transfer Standard Markup Language The
right-time seamless flow of well-site data
between operators and service companies to speed
and enhance decision-making An Open
Information Transfer Standard for the Oilfield
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WITSML Data Objects

• General
• Well
• Message
• Operations Report
• Real Time
• Wellbore
• Wellbore Geometry
• Risk

• Communication
• Subscription
• Server Capabilities

• Rig Instrumentation
• Rig / Rig Equipment
• Cement Job

• Surface Logging
• Mud Log

• Fluids Systems
• Fluids Report

• Coring
• Sidewall Core
• Conventional Core

• Surveying
• Survey Program
• Target
• Trajectory

• Directional Drilling Systems
• Tubular /
• Bit Record
• BHA Run

• Logging While Drilling
• Log ? Well Log (includes Wireline)
• Formation Marker

Existing Updated New
Source BakerHughes/Paradigm
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Extending WITSML

• WITSMLs original mandate for at-wellsite and
  wellsite-to-operator (contextual and real-time)
  data transfers is proving to be extensible
• operator-to-wellsite and operator-to-regulator
  transfers
• data-flows to partners, labs, repositories and
  more
• re-using the common architecture, infrastructure
  and terminology
• providing maximal commercial product and service
  incentives and benefits

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PRODML Introduction

• Everyone speaks about Fields of the Future, but
  want them now
• The application integration task can be extremely
  difficult
• What if we had an industry standard that would
  interface not necessarily integrate
  applications?
• Wouldnt that be a good thing?
• This is a problem that everyone faces.
• PRODML can help achieve that

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Who built PRODML V1?

• Operators
• BP
• Chevron
• ExxonMobil
• Shell
• Statoil

• Standards
• POSC(heavily invovled brought much knowledge
  becomes custodian as of Oct. 2006)

• Vendors
• Halliburton
• Invensys (ctl sys)
• OSIsoft (historian)
• PETEX (app suite)
• Schlumberger
• Sense Intellifield(infrastructure)
• TietoEnator (EC)
• Weatherford

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EP Data Problem

• Real time data rich, information poor
• Exxon, BP, Shell, Chevron, Statoil, etc., have
  millions of electronic instruments
• Generating terabytes of data every day
• Fields are becoming more and more electronic
• How can PRODML help turn this data into useful
  information?
• It is getting worse. Fibre optic technology is
  recording pressures and temperatures every 2
  feet! Seismic during production will generate
  masses of data!

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Disintegrated Applications and Models

• Abnormal Situation Management
• Production Allocation - Energy Components (TE)
• Optimization Applications CaseLift
  (Weatherford)
• Maintenance Management - SAP
• Reservoir Simulations - MBAL (Petex)
• Well Simulations - Prosper
• Pipe Line Simulations Pipesim (Schlumberger)
• Process Simulations - Romeo (Shell ? Invensys)

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Make Data Useful

• Use data to enable continuous optimization
• Artificial Lift Optimization
• Continuous estimate of well/reservoir oil, gas,
  water flows
• Safeguard integrity
• Abnormal situation management
• Right information to right people, at right time,
  in right context, in right workspace to serve
  right work process
• Enable remote operations and real-time process
  control
• Example

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Gas Lift Optimization
1.0
Oil Production .
0.5
0.0
1
7
13
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Time
Real-time data to and from wells
Optimal set points from model
Real-time data to and from SCADA
SCADA or Historian
Gas Lift Optimization Application
2-Phase Flow Model
Real-time data to model
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Technical Integrity Problem
Who is watching the unmanned wells and facilities
round the clock?

• Technical Integrity is a key objective.
• Gauge operators often only visit a well once
  during each month.
• That is not ensuring technical integrity.

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Technical integrity most important

• North Sea one week before Piper Alpha
• Explosion in gas compression module
• SCADA system retrieved data, cause found
• Incident could have been prevented
• Piper Alpha was the worst disaster in oilfield
  history.
• It happened after 10 oclock on July 6, 1987
• 167 lives were lost.
• Survivors had to jump into the North Seas
  hostile conditions.
• The oil company involved lost all of its business
  in the North Sea.

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Technical integrity most important

• Other incidents
• Longford
• Texas City Refinery raffinate splitter
• Flow assurance hydrates, leaks
• Production facilities get more fragile as they
  age!
• Only one week before the Piper Alpha incident,
  Shell had a similar problem in a gas lift and gas
  compression area. The system on-board sniffed the
  gas and shut the system in. Nobody was injured.
  The explosion just shut everything down. The
  SCADA system took snapshots that were analyzed in
  Aberdeen. Very soon, we knew what happened

We still dont know what happened to Piper Alpha!
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Technical integrity most important

• The Shell team concluded that there was
  sufficient information in the system to have
  PREVENTED the initial failure. At that time, we
  werent smart enough t
• In the Texas City refinery failure last year,
  they had a rafinate splitter with a build-up in
  the column to the point of ignition. The
  explosion followed the build-up after four or
  five hours. Data running through simulations
  should have identified the integrity violation
  before the catastrophic failure. Appropriate
  executive action could have taken place to
  prevent the disaster.
• Unfortunately, there were literally hundreds of
  such incidents!

We still dont know what happened to Piper Alpha!
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PRODML Producing Asset Scope
The Production Domain

• Decisions we can effect in a day

Scope has expanded downstream
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The PRODML Bridge

• Real Time Data
• ESD
• FG
• Process
• Reservoir
• Well
• Surface
• Export
• Pipeline

• Optimization Applications
• Abnormal Situations
• Hydrocarbon Accounting
• Maintenance Management
• Reservoir Simulations
• Well Simulations
• Pipe Line Simulations
• Process Simulations

Data in (input)
Data out (set points or recommendations)
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Potential Enabled Business Benefits

• Improved technical integrity
• Improved safety
• Increased production
• Reduced OPEX
• PRODML is the key enabler for these benefits!
• Halliburton speaker at OTC 06 Integration is
  the issue. PRODML is our answer!

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IHS Signs LOI with POSCto Offer Enhanced GUWI
Service

• Unique Ids for all Known Wellbores
• Can replace diverse practices and naming
  conventions.
• Applies to all 4 million wellbores world-wide
• Services available to the entire industry
• Uses and builds on the existing IHS International
  Id

• POSC will
• Publish GUWI industry standards
• Host a DM SIG WIS Work Group representing
  operators and service providers.
• Contract with IHS for centralized services (by
  year-end 2006)
• Contract with other service providers for
  secondary services

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Well Identity Services
RegistrationRequest
RegistrationRequest
Well IdentityServices(indirectly thru others)
Host POSC
Well IdentityServices(operated by IHS)
DM SIGWIS WorkGroup
POSCWell IdentityStandards
MatchingRequest
MatchingRequest
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Lessons Learned

• Show Leadership Where You Can.
• Blend Standards for Industry and Agencies.
• Be Visionary, but Act Incremental, Iterative.

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North Sea Leadership

• U. K. DTI promoted the development of XML data
  transfer standards by POSC for national
  repository input/output use, e.g. WellHeaderML,
  WellPathML, WellChemicalML
• Norway NPD based the DISKOS national repository
  on a key portion of POSCs Epicentre data model
• Leading to a commercial product line
• And repositories in many more nations!

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U.S. ePermitting

• Patience, patience, patience
• We are now ready to make use of the good work
  you (POSC) have done over the past few years.
  (Representative of a group of U.S. state
  agencies)
• When regulatory agencies find industry standards
  worthy of using and expanding instead of
  building separate standards of their own, good
  things can happen.

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ePermitting and WITSML

• The California state agency decided to build
  ePermitting data transfer on the WITSML family of
  standards in 2004
• If not for unrelated problems, this would have
  been in use from 2005. It now looks like Q2 of
  2007.
• The Ground Water Protection Council (GWPC) group
  of 20 U.S. producing state agencies have also
  endorsed this approach.
• Look at the current promotional brochure from
  GWPC and Chevron

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Lessons Learned

• Drive Standards Collaboration through
  Development to Early Adoption and Beyond

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Case in Point WITSML

• BP and Statoil
• Saw the vision
• Organized vendors
• Drove the initial development and encouraged
  product implementation
• Six years later
• WITSML is successful
• () and has led to standards in other areas
• (-) growth to the next plateau in uncertain

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Case in Point PRODML

• BP, Chevron, ExxonMobil, Shell and Statoil
• Saw the vision
• Organized vendors
• Drove the initial development and funded
  realistic pilot implementations on a
  collaborative basis
• One year later
• PRODML V1 is about to be published
• There is a good chance that these and other
  energy companies will drive incremental annual
  efforts within the POSC community to add features
  and function
• Lesson Drive to deep deployment and full market
  share
• After all, Standards are products, too.

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Next

• We hope to see more PRODML-like collaborations
• Visionary (Value-driven)
• Step-by-step staging (Iterate/Incremental)
• Funding members key vendor resources
• Given time and project management
• Drive through to realistic pilot projects
• Leaders remain involved
• Better collaborative tools and accessible results

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Thoughtful Questions for You
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Questions

• How can you help POSC be more helpful?
• How can POSC help you help each otherbetween
  conferences?

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How can you help POSC be more helpful?

• My Ideas
• Tell us about
• your problems.
• your dreams.
• See if what you need is found in our Standards
  Resource Centre
• If so, use it and help make it better
• If not, help us understand other may need it,
  too
• Your Ideas
• ?

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How can POSC help you help each other between
conferences?

• My Ideas
• We could manage
• An NDR mailing list or a number of
  subject-specific mailing lists
• NDR Web-based discussion forums
• A process for NDR regional and/or subject groups
  for form (virtual or physical)
• A process to harvest NDR proposals, results, etc.
  into agendas of future conferences
• Your Ideas
• ?

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Thank You!
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