Efficiency improvement in oil & gas fields

Edwin van Donkelaar Shell Smart FieldsJohan Krebbers Shell Global IT

Tippawan Srimanuntiphol Shell E&P IT

The oil & gas industry faces 3 hard truths ...

Population growth

Economic growth

More affluent society

End of easy oil

Resource nationalism

More unconventionals

Hydrocarbons remain

dominant

CO2 consequences

RISING DEMAND SECURITY OF SUPPLY ENVIRONMENT AND SOCIETY

Increasing operational efficiency contributes to face these hard truths ...

Make better decisions, faster by: increased asset awareness (=measure) increased asset understanding (=model) increased ability to influence production (=control) increased leverage of scarce expertise (=collaborate)

Smart Fields, Intelligent Oilfields, etc are an industry-wide development

Oil & gas fields come in many types

Conventional Oil Conventional Gas Heavy oil

And decisions have a large time horizon...

ensure safety satisfy environmental

constraints

wells & facilities operations

process control & automation

gaslift optimization

well inflow analysis well stimulation short term forecasting flow assurance production system

optimization

production allocation long term forecasting (waterflood) pattern mngt areal surveillance balance recovery vs

production optimize ultimate recovery

infill drilling further FDP (e.g. SFR) additional EOR facilities upgrade

Real-time Operations Production Optimization Well & Reservoir Management Field Development Planning

3 months 2 years 10 years1 day1 second

Time scales for E & P decisions

IndustryDatabases

NicheServiceFirms

OEMResources

andData

E&P ServiceCompanyExpertise

JV Partners

Drilling

Logistics

ProductionOptimization

Maintenance

Maintenance Staff,Equipment Data & Models

REMOTE OPERATIONSCENTER

ONSITERESOURCES

REMOTEINTERNAL

RESOURCES

ONSITE/REMOTEEXTERNAL

RESOURCES

Seismic Data,Reservoir Model

Production Data& Models

Drilling Staff& Models

Production& ReservoirEngineering,

G&G

DrillingExperts

SpecializedEngineering

(e.g., subsea)

ProductionOptimization

Experts

Enabling Communication & IT Infrastructure

... and the spacial distribution of equipment and expertise is large

Source: Camebridge Energy Resource Associates (CERA)

Examples of value adding IT technology in oil & gas ...

Global collaboration leverage expertise around the globe, bring work to the expert

Acces anywhere around the globe easy and secure access in real-time to bussiness KPIs, field data, models, etc.

to make the right decision faster Wireless communication in the field

wireless equipment like sensors, actuators, communication Separate application and data layer with a separate connectivity layer

data consistency, flexibility, connectivity Master reference data

ensure that equipment is named consistently by the various applications

... and important IT developments Consistent user-interface (portal)

role based visualisation of KPIs for management, engineering, production, etc.

Real-time collaboration leverage expertise, raise awarenes of distribution of skills

Storing large amounts of data on-line reduced cost of storage/housekeeping capabilities makes on-line storage more

viable

Service Oriented Architecture (SOA) increase data consistency across applications increase flexibility to add and remove functionality increase connectivity between proprietary and vendor tools

Enterprise Service Bus (part of SOA) making access from various apps/services to information easier

Target IT architecture for oil & gas productionPortal

Presentation - Visualization services

Business logic- algorithms- components

Workflow

Data Storage

Application

RT DataPortal

KPI dashboardsrole-based

Workflow services

WellTest

Business services

Dispatching

Application Platforms

ERP

Orchestration

Data service(e.g. Access & Virtualization)Application Service

HC A/C Process Modelling

PlantMaintenance

Data Platforms

ActivityPortal

Scheduling

IntegrationBackbone

,

ServiceManagement

Identity& Access

MasterRef Data

DirectoryGenericServices

xxx

IPSM W&RSurveillance

FacilityModeling

IntegrationMiddleware

CorporateDataStore

Master RefData

DataWarehouse

ProdHistoricalData

EngineeringPortal

Closing remarks

Smart Fields aims to increase efficiency leading to increase production an ultimate recovery (hard truth 1: demand) increased ability to take on complex developments (hard truth 2: supply) increased ability to reduce environmental footprint (hard truth 3: environment)

IT is a key part to increase efficiency in oil & gas operations real-time access to bussiness and technical KPIs global access to experts, remote operations, global information access, agility etc.

According to CERA the potential benefit is ca. 8% recovery increase, ca. 10% production increase

Backup slides

Where we want to be:

The oil & gas industry faces 3 hard truths ... Increasing Energy Demand

82 mln barrel per day in 2005 to 115 mln barrel in 2030 (source IEA)

Deep, remote and complex developments heavy oil, tight gas, smaller volumes, poor reservoir quality, arctic

conditions

Environmental and efficiency demands no flaring, reduction of produced CO2 and water, sustainable

development

But Shell Smart Fields is not alone

Digital Oil Fields

Closing remarks

Increased efficiency is required to face 3 hard truths IT technology contributes to a solution:

total asset awareness (= measure) virtual asset management (=model) remote connectivity and collaboration (=decide)

SOA helps to increased data consistency across applications increased flexibility for building analysis modules enhanced connectivity proprietary and vendor tools

Examples of IT technology in oil & gas

remote connectivity and collaboration wireless equipment (sensors, actuators, communication)

total asset awareness KPI visualisation at bussiness, production and

engineering level virtual asset management

integrated asset models, decision support, asset-wide optimization

Standard visualizatione.g. Microsoft Sharepoint

Applications/services e.g. integrated activity planning, modelling packages

Data layer e.g. Osisofts PI data historian

Orchestration e.g. BizTalk, OSI Soft analysis framework

Business processes e.g. reservoir surveillance, hydrocarbon accounting

Workflow orchestration e.g. hydrocarbon allocation and forecasting

... and standards like the Service Oriented Architecture (SOA)

Source: Tippawan Srimanuntiphol Shell E&P IT

In summary IT contributes with both technology and standards

IT technology helps to achieve: total asset awareness (= measure) virtual asset management (=model, control) remote connectivity and collaboration (=collaborate)

IT standards (e.g. SOA) help to increase data consistency across applications increase flexibility and speed to add and remove functionality increase connectivity between proprietary and vendor tools