Post on 05-Jan-2019
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Mobile Phone Evolution with Time
Innovation Evolution Integration Collaboration
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Maximizing Asset Values
through Digitalization
Gideon Amaechi – Geoscience Domain Lead, Europe & Sub Sahara Africa
3 © 2016 Halliburton. All rights reserved.
I N D U S T R Y “ N E W N O R M A L ”
• CONSTRAINED ECONOMICS
• REDUCED CYCLE TIMES
• INCREASED COMPLEXITY OF PLAYS
• EXPANDED SCALE OF OPERATIONS
• MULTIPLIED VOLUME OF DATA
• INCREASED NEED FOR LEARNING EFFICIENCY/EFFECTIVENESS
C H A L L E N G I N G
MARKET CONDITIONS
ARE DISRUPTING THE
INDUSTRY
2
O P E R A T O R I M P E R A T I V E S
• PREDICTABLE CASH FLOW
GENERATION & SPEND
• OPTIMIZED ORGANIZATION AND CROSS- DISCIPLINE COLLABORATION
• DATA DRIVEN DECISIONS FOR ASSET SELECTION AND OPERATION
• FAST LEARNING CURVE TO COPE WITH DIVERSITY AND COMPLEXITY OF PLAYS
IN THE CURRENT CLIMATE,
OPERATORS HAVE TO
GET CERTAIN THINGS
RIGHT
E F F O R T S A L R E A D Y T A K E N
• OPERATING COST REDUCTIONS
• RENEGOTIATION WITH SUPPLIERS
• STAFF REDUCTIONS
• RATIONALIZING APPLICATIONS
• REDEFINITION OF PRIORITIES
• PORTFOLIO CONSOLIDATION OPERATORS HAVE
TAKEN “KNOWN”
ACTIONS, BUT IT IS NOT
ENOUGH
E&P Current Challenges
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Fundamental inefficiencies cannot be solved by
“traditional” methods
Sources: Interviews with Ben Williams (CIO at Devon); Zhanna Golodryga (CIO at Hess); Trond Ellefsen (Special Advisor Strategy at Statoil); Zulkifi Taha & Philip Lesslar (Group Tech. Data at Petronas); Michael Siemer (VP E&P Data &
Analytics at Devon); Accenture and Landmark Analysis
“Technical disciplines to be
further integrated with
business activities”
“Providers to transition to
new customer-centric integrated
approach”
“Service companies to generate
insights
from collected
information”
“Easier access to technical and
business data, via an integrated
data lake”
“Efficient decision-making, leveraging analytics on real-time time data”
“Machine learning, AI (Artificial Intelligence), and VR (Virtual Reality), promising but of longer-term interest”
V O I C E
O F T H E
OPERATOR
“NEED FOR COMPLETE
TRANSFORMATION OF THE
E&P BUSINESS MODEL”
“NEW REQUIREMENTS
IMPLYING NEW TOOLS
AND WAYS OF WORKING”
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A step change toward digital operating models is
needed
Customers know the
pieces…
…but they don’t know how to
put them together… …to create business
value
Digital
E&P
Operators know the
pieces…
…but they don’t know
how to
put them together…
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T H E T R A N S I T I O N T O N E W B U S I N E S S P A R A D I G M S T H A T L E V E R A GE
D I G I T A L T E C H N O L O G Y T O C H A L L E N GE E PREVIOUSLY H E L D
A S S U M P T I O N S A B O U T T H E I N D U S T R Y
DIGITAL SHIFT
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R E M E M B E R W H E N P r e - D i g i t a l
D I G I T I Z A T I O N D i g i t a l D a t a
E - B U S I N E S S O n l i n e B u s i n e s s D I G I T A L - N A T I V E
P A R A D I G M S H I F T
MUSIC
RECORDS, CASSETTES CDS, MP3S ITUNES SUBSCRIPTION STREAMING
WHY SHOULD THE CUSTOMER HAVE TO OWN OR RETAIN THE
MUSIC?
HEALTHCARE
FILING CABINETS DIGITAL RECORDS ONLINE HEALTHCARE
SENSOR IMPLANTS, PREDICTIVE DIAGNOSIS
WHY SHOULD THE CUSTOMER HAVE TO GO TO THE DOCTOR?
AUTO
CARBURETORS FUEL INJECTION, HYBRIDS
AUTOTRADER.COM
DRIVERLESS CARS, UBER / LYFT
WHY SHOULD THE CUSTOMER
HAVE TO DRIVE THE CAR OR THE BUSINESS NEED TO OWN TAXIS?
TRAVEL
PAPER SCHEDULING REAL TIME SCHEDULING
EXPEDIA, TRAVELOCITY
WHY SHOULD THE BUSINESS NEED TO OWN HOTELS?
EXPLORATION AND PRODUCTION (E&P)
PAPER MAPS DIGITAL OILFIELD, RTOCs
I N
D U
S T
R Y
D I
G I
T A
L
S H
I F
T
D I G I T A L B U S I N E S S M A T U R I T Y
DIGITAL E&P
?
WHAT FUNDAMENTAL ASSUMPTIONS
SHOULD WE BE CHALLENGING?
PETROTECH SOFTWARE,
SEISMIC, SCADA
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The shift to Digital E&P
producing a step change in
finding and recovering
hydrocarbons at the lowest
cost per BOE.
Basin Analysis & Leads Mgmt
Discovery & Appraisal Mgmt
Dev Concept & Design
Development Execution Surveillance Optimization
Field Management
Production Development Exploration
Digital E&P is utilizing 3rd platform technologies such as cloud, mobility, big data/analytics and
social…
to challenge existing
paradigms in
upstream oil & gas…
W hat the business value
is
How E&P
companies
invest
The way E&P companies
interact
..and the way every
employee
works
The way E&P companies
operate
Digital Fact-based Enable Manage Shrink Multiply Predictable Continuous
Leverage decisions efficiency costs time productivity results learning
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Digital E&P enables new levels of operational efficiency and profitability
through a smart/intelligent and connected E&P value chain from front
office to field
office to
oilfield
OPERATOR
CHALLENGES
INNOVATIVE
SOLUTIONS
BUSINESS
OUTCOMES
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A product
or solution
What is it NOT?
Digital
Oilfield
A Change
in Purpose
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It’s not about enhancing existing business practices and
technology
Today
Individual and instinct-driven
Incremental
Historical and operations-based
Siloed and fragmented
Multiple and proprietary
Speed of traditional IT
Decisions
Change
Insights Data
Platform
Pace
14 © 2016 Halliburton. All rights reserved.
Digital E&P will fundamentally change how E&P companies
operate
Today
Individual and instinct-driven
Incremental
Historical and operations-based
Siloed and fragmented
Multiple and proprietary Speed of
traditional IT
Digital E&P
Collaborative and data-driven
Innovative Real-time and asset-
based
Bridges field, front office and
back office
Common and open Speed of
Cloud
Decisions
Change
Insights Data
Platform
Pace
17 © 2016 Halliburton. All rights reserved.
Digital Shift in other
industries…..
Transform: Age old human activity ……
Groceries
Optimize:
• Waiting • Payments • Retail • Supply
Chain • … • …
$600 Billion
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Digital Shift in other industries…..
$1B Platform
Monsanto has agreed to accept Bayer's offer to purchase
the company for $66 billion ($128/share) in September
2016, and the deal is currently pending regulatory approval.
Genetically Engineered Seed
20 © 2016 Halliburton. All rights reserved.
Digital Shift in other
industries…..
Transform: Aviation
Optimize:
• Human Labor • Safety, Reliability • Capital ($) Investments • … • …
• 4 Trillion
• $760 Billion
• $124 Billion
• $60 Billion
22 © 2016 Halliburton. All rights reserved.
26
• Integrated well performance analysis (DAS, DTS)
• Big Data – fiber, micro-deformation, micro-seismic
• Large jobs can generate 1.5PB / 6 weeks
• Optimize future drilling programs
• Minimize uncertainty in frac program
• Monitor high pressure pump valve condition in real time
• Identifies pump and valves to be changed ↓Pump maintenance time, efforts, frequency ↓ HSE exposure ↑Operational savings
Digital Shift at E&P….
Field & Hardware
Sensors & Data
E&P Expertise
IntelliScan®
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Tectonic Setting & Evolution
Available Hard Data (Well etc)
Sequence Stratigraphic Evolution of the basins
Biostratigraphy information
Litho / Chronostratigraphic Model
Gross Depositional Environment Maps
basin screening or risk mapping
(Source Rock/Reservoir Rock/Seal Distribution)
Stratigraphic Architecture and the Play Types
Exploration Insight Digital Shift …
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What are future impacts of digitalization on business &
industry?
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D. $1 Trillion
Which of the following is true for Digital Transformation
trends?
By 2020, IoT (Internet of Things) revenue in hardware, software,
services will be:
A. $50 Billion
B. $100 Billion
C. $500 Billion
Poll
Source: IDC, McKinsey, Gartner 2016
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Digital Shift in Oil and Gas
• Enhanced Real-Time surveillance
• Connected enterprise to tie
operational outcomes to financial
outcomes
Drones
• Pipeline monitoring and
inspections
• Video analytics field surveillance
• Over the shoulder coaching
• Tracking location and
exposure to hazardous gases
Internet of Things
• Surveillance analytics to predict downtime
• Digital Turnaround solution extended
maintenance
Wearables
Analytics & Machine Learning
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Operators Opportunity – Outcomes of the Digital
Shift
Prioritize most profitable
wells
Apply learnings to
optimize
Improve certainty of
outcome
Big Data
Machine
Learning
Reservoir / Economics
Completion design
Cost actuals
Production Volumes
How the
business
invests
The way the business
operates
The way the business
interacts
..and the way every
employee
works
Integration Span Digital Levers Transform
Drilling Actuals
CAPEX Optimization
Business Outcome
Analytics
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Exercise
In your opinion, how can new technologies transform the way
things are done in E&P?
Tips:
Look at other industries for inspiration, ideas e.g., Amazon, Uber etc.
Highlight E&P-specific expertise and differentiation
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5 Key Insights from 2016 Upstream O&G Digital Trends
Survey
Digital is
creating
value
Source: Accenture and Microsoft. Respondents to ”2016 Upstr eam Oil and Gas Digital T r ends Sur vey” included IOCs, NOCs,
independents, and oilfield services firms.
↑
Investment
continues
Investments
are
focused
↑ Increase
in
analytics
↑ Use of cloud
to
unlock value
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It’s a race to meet operators expectations…
“The pace and scale
of the digital economy
poses huge challenges
for businesses, as they
race to keep up with
changing E&P
expectations.”
Source: “Digital Transformation of
Industries” World Economic
Forum white paper, Jan 2016