SPE DISTINGUISHED LECTURER SERIESis funded principally

through a grant of the

SPE FOUNDATIONThe Society gratefully acknowledges

those companies that support the programby allowing their professionals

to participate as Lecturers.

And special thanks to The American Institute of Mining, Metallurgical,and Petroleum Engineers (AIME) for their contribution to the program.

Expectations from Energy Industry

��Sustainable BaseSustainable Base

��Environmentally Clean OperationEnvironmentally Clean Operation

During The Next 100 Years During The Next 100 Years With Carbon Management InitiativesWith Carbon Management Initiatives

Fossil Fuels Will StillFossil Fuels Will StillContinue As Major Sources for Continue As Major Sources for

Global Energy Supplies Global Energy Supplies

AlternativesAlternatives Fossil FuelsFossil Fuels

For Oil and Gas: What is needed to push For Oil and Gas: What is needed to push the Peak Production to the Future?the Peak Production to the Future?

Roadmap

��Find Find New FeedstockNew Feedstock

��Improve Improve EconomicsEconomics––Invest in Invest in New Smart TechnologiesNew Smart Technologies

––Invest in Invest in Manpower Manpower DevelopmentDevelopment

��Extend Recovery Factors in Mature/New Extend Recovery Factors in Mature/New FieldsFields

��Explore and Produce From Harsh Explore and Produce From Harsh Operating EnvironmentsOperating Environments

��Invest in Unconventional HC ResourcesInvest in Unconventional HC Resources

Feed stock for Oil and

Gas Resources?

Improve Economics and Extend Life of Current Assets

•Slow Decline From Mature Fields

•Invest in Information Technologies

• Invest in Smart Oilfield Operations

•Improve Reliability/Uptime

•Reduce Re-entry

•Standardize- Plug and Play Engineers

• More Assets with Limited Workforce

•Implement New Collaborative Training and Decision Support Systems

Electronic Warfare Medical Fields

Catch up with the use of Information Technologies

Space Space MissionsMissions

Smart OilfieldsSmart WellsReal Time OperationsFuzzy LogicSubsea RoboticsReal Time Remote OperationsSensor NetsIntelligent CompletionImmersive VisualizationData MiningGrid Computing…………..…………..

Invest in Smart Oilfield Technologies

Focus on Maximum Contact

Wells

Multi-Laterals

Join the Evolving

Paradigm of

Smart Asset

Management

Digital Oil/Gas

Take Remedial Steps To

Solve The Problem Of The

Aging Workforce

Manpower Issues

��Recruiting Top Talents Recruiting Top Talents

��Training for Adaptation of Information Training for Adaptation of Information TechnologiesTechnologies

��Conducting Operations in Collaborative Conducting Operations in Collaborative FashionFashion

Improve Oil Industry’s Image

��Past PracticesPast Practices

��Low Tech ReputationLow Tech Reputation

Eliminate Low Tech Practices

�� Inefficient Operations:Inefficient Operations:

Abandoned fields after 15Abandoned fields after 15--30% 30% recovery factorrecovery factor

��Poor Preventive MaintenancePoor Preventive Maintenance

��Poor Data ManagementPoor Data Management

��Disconnected Decision Support Disconnected Decision Support SystemsSystems

Incentives for Change

��Reduce Human ErrorReduce Human Error

��Reduce ReReduce Re--entry costentry cost

��Reduce CostReduce Cost

�� Implement AutomationImplement Automation

�� Improve Improve Decision MakingDecision Making

Integrated Oil and Gas Assets

��UpstreamUpstream–– SubsurfaceSubsurface

–– WellboresWellbores

–– SurfaceSurface

��TransportationTransportation

��Processing Processing

��MarketingMarketing

SubsurfaceSubsurface

WellboreWellbore

Surface facilitiesSurface facilities

IntegrationIntegration

New Well Technology S Curve Evolution

Vertical &Deviated Wells

1970 1980 1990 2000

Time

2010

HydraulicFracturing

HorizontalWells

MultilateralWells

MultilateralMulti-fractured

Wells

Underbalanced Drilling Offshore

HorizontalWells with

Hydraulic Fracturing

Coiled TubingDrilling

BusinessBenefits

Slim HoleExploration

Intelligent Wells

GAINS CONTINUES ?

First Steps in Industry’s Response

Reservoir Oriented Viz RoomsReservoir Oriented Viz Rooms

Information Technology

��Visualizing ByVisualizing By--Passed OilPassed Oil

��Integrated Asset ManagementIntegrated Asset Management

��Small Foot PrintSmall Foot Print

��Multidisciplinary Multidisciplinary CollaborationCollaboration

PastPast

PresentPresent

FutureFuture

Upstream Decision Support Systems Are we behind?Are we behind?

Integrated Asset Management Integrated Asset Management Integrated Asset Management Integrated Asset Management

Global Scale

Local Scale

The Changing Face of the Industry The High Tech Oil Industry

�� New New Biz DriversBiz Drivers�� Focusing on Focusing on TechnologyTechnologyGapsGaps�� UrgencyUrgency�� Implementation PathwayImplementation Pathway�� Role of Role of Universities, Professional Societies, and Universities, Professional Societies, and

CompaniesCompanies�� Improved Prospects in Improved Prospects in Environment, Security, Environment, Security,

Safety monitoringSafety monitoring

For

�� Improved Productivity Improved Productivity

�� Quick Access To DataQuick Access To Data

�� Reduced Mundane WorkReduced Mundane Work

�� Reduced Human ErrorReduced Human Error

�� CostCost

�� Job SecurityJob Security

�� Chances of FailureChances of Failure

�� DisruptionDisruption

Against

Combine

•Technical Feasibility

•Economic Feasibility

•Environmental Feasibility

•Social Feasibility

Integrated Decisions Support SystemIntegrated Decisions Support SystemIntegrated Decisions Support SystemIntegrated Decisions Support System

Incentives

Minimize and Reduce Minimize and Reduce UncertaintyUncertainty

Provide Real Time Access To all Provide Real Time Access To all DataData

Make Decision in an Real Time Make Decision in an Real Time Integrated EnvironmentIntegrated Environment

•Fuzzy Expectations

•Decision with Missing Information

•Hasty Elimination of Options

•Lack of Integration

Eliminate Silo Style Eliminate Silo Style Eliminate Silo Style Eliminate Silo Style

Decision Making Decision Making Decision Making Decision Making

Transformational TechnologiesTransformational Technologies–– Smart HardwareSmart Hardware–– Information TechnologiesInformation Technologies

Real Time Decision Support SystemReal Time Decision Support System–– Data MiningData Mining–– Immersive VisualizationImmersive Visualization–– High Performance ComputingHigh Performance Computing

Technology Enablers…

Providing Integrated Decision Support System Training

��Role of UniversitiesRole of Universities��Role of the Operating CompaniesRole of the Operating Companies��Role of Service CompaniesRole of Service Companies��Role of Professional SocietiesRole of Professional Societies

Current SPE Standards Needs Augmentation:Competency for Petroleum Engineers

��Petroleum engineering subPetroleum engineering sub--disciplines:disciplines:–– drilling, drilling, –– completion/completion/–– production/facilities, production/facilities, –– Formation evaluationFormation evaluation–– ReservoirReservoir–– Economics.Economics.

BreadthDepth

Managing the Manpower Problem

��Engineering IsolationismEngineering Isolationism

�� Interdepartmental DisconnectsInterdepartmental Disconnects

��Multidisciplinary ParticipationMultidisciplinary Participation

��Core Competencies Core Competencies

Need for Hybrid Petroleum Engineers

Operating and Designing New SystemsOperating and Designing New Systems

Innovating New SolutionsInnovating New Solutions

Building Default SystemsBuilding Default Systems

Working Collaboratively and GloballyWorking Collaboratively and Globally

Thinking in NonThinking in Non--Traditional WaysTraditional Ways

Skills of The Hybrid Petroleum Engineer

��Well Versed in Information Well Versed in Information TechnologiesTechnologies

��Knows how to Defines the Solution at Knows how to Defines the Solution at the Right Levelthe Right Level

��Can Operate in Asset Decision Can Operate in Asset Decision EnvironmentEnvironment

What Do we Need?

Managing Resources with Immersive Managing Resources with Immersive Visualization, transparency and Visualization, transparency and ControlControl

Employing Integrated Asset ManagementEmploying Integrated Asset Management

�� Modeling of Virtual Environments Modeling of Virtual Environments �� Visualization of Huge Data Sets Visualization of Huge Data Sets �� Asset Modeling Training Asset Modeling Training �� Collaborative Working over Distance Collaborative Working over Distance �� Integrated Virtual Reality and Haptics Integrated Virtual Reality and Haptics �� Decision Support with Continuous FeedbackDecision Support with Continuous Feedback

Emerging Hybrid CurriculumEmerging Hybrid Curriculum

Cannot Expect Adequate Solutions from:Cannot Expect Adequate Solutions from:

�� a single individual, a single individual,

�� a single discipline or, a single discipline or,

�� disconnected multi skilled expertsdisconnected multi skilled experts

Case for CollaborationCase for CollaborationCase for CollaborationCase for Collaboration

Step 1-Introduce Remote Learning

�� Virtual ClassroomsVirtual Classrooms

�� Decision Support Centers Decision Support Centers (Local(Local--Global)Global)

�� Internship on Remote OperationInternship on Remote Operation�� Cultural IssuesCultural Issues�� ReliabilityReliability�� RiskRisk

Step 2-Collaboration

Expand the Comfort Zone of Verbal And Expand the Comfort Zone of Verbal And Written CommunicationWritten Communication

Expect Working on a Common Expect Working on a Common Intellectual EffortIntellectual Effort

Expect Working with Others Who May Expect Working with Others Who May Not Be Immediately ConnectedNot Be Immediately Connected

Goals for Collaborative Training

��Building Collective and Core Building Collective and Core CompetenciesCompetencies

��Faster Problem Solving worldwideFaster Problem Solving worldwide

�� Implementing Best PracticesImplementing Best Practices

��Accessing Remote Experts for Accessing Remote Experts for Problem SolvingProblem Solving

Manpower Planning- Operators

�� Identifying and Empowering Identifying and Empowering ChampionsChampions�� Mentoring New RecruitsMentoring New Recruits

�� ReRe--Training the Training the Experienced Experienced

�� Emphasizing on Emphasizing on Team BuildingTeam Building

�� Educating Staff on Working With Educating Staff on Working With All DataAll Data

�� Educating Staff on Working With Educating Staff on Working With Risk Based Risk Based DecisionsDecisions

Culture Change

��Communicate and Learn from Communicate and Learn from MistakesMistakes

��Align ObjectivesAlign Objectives

��Promote Trust in Integrated Promote Trust in Integrated SystemsSystems

��Educational Opportunities in Smart Oilfield Educational Opportunities in Smart Oilfield TechnologiesTechnologies

��MS in Smart Oilfield TechnologiesMS in Smart Oilfield Technologies

��Certificate Education for Experiences Certificate Education for Experiences EngineersEngineers

��CiSoft Academy for Summer InternsCiSoft Academy for Summer Interns

http://cisoft.usc.eduhttp://cisoft.usc.edu

CiSoft’s Model

Modules

�� Collaborative Decisions Support SystemsCollaborative Decisions Support Systems�� Remote SensingRemote Sensing�� Remote Operations and ControlRemote Operations and Control�� Work Process Definition and Automation Work Process Definition and Automation �� Immersive VisualizationImmersive Visualization�� Data ManagementData Management

USC’s Program

Summary

��Need For Joint Efforts By Need For Joint Efforts By SPE/Universities/Companies To SPE/Universities/Companies To Augment PTE Curriculum With Smart Augment PTE Curriculum With Smart Oilfield TechnologiesOilfield Technologies

��Need For Training New Engineers In Need For Training New Engineers In Collaborative Decision Support Collaborative Decision Support CentersCenters