Energistics Asia South Region Meeting(Production) PRODML SIG Update

New Delhi, India Alan Doniger14 January 2007 Chief Technology OfficerLe M▲ridien New Delhi HotelEnergistics

Agenda

• What is PRODML?• Participants• Status• Next Steps• ’06 Pilots: Scope and Animations

Background

• In recent years, many energy companies have begun to exploit the benefits of highly instrumented producing fields seeking optimal operation of these assets.– These efforts are known by many names,

including Smart Field, Digital Field of the Future, e-Field, i-Field, etc.

• A key element in these achievements is making good use of the near real-time data streaming from the field to the office or operations center.– To do this well requires the use of industry

standards for data and for the communications and computing infrastructure.

The Role of Industry Standards

• The PRODML initiative, hosted by Energistics, is being driven by energy companies and vendors who believe the industry needs a freely available, universally applicable set of industry standards.– For data definitions, formats, semantics– For communications and computing infrastructure based

on state-of-the-art technologies and standards– To establish a level playing field for vendors– To enable low-risk and low-cost use of proven

optimization solutions including interchangeability– To accelerate and encourage innovation in the design,

configuration, and deployment of optimization solutions

GatheringSeparation & Distribution

Injection (Water, Steam, CO2)

Water Handling

GasTreating Facilities

OilTreatingFacilities

GasExport

Facilities

OilExport

Facilities

Reservoir Management:

Gas & OilContract

Deliverability

Scope: Asset View

The Production DomainInitial Scope

•From bottom of the well to initial separation

•Decisions we can effect in a day

Scope of PRODML Application Software

• Operational Modeling– Predictive algorithms to predict future measurements from

historical measurements and operational plans• Allocation and Reconciliation

– Derives critical values from measurements, as in back-allocation of volumes to wellbores

• Surveillance and Monitoring– Continuous comparison of actual to predicted measurements;

out of range condition invokes analysis • Simulation and Optimization

– Predictive algorithms to predict future measurements and related set points that achieve pre-defined objectives

• Advisory and Alert– Invoked when post-analytical predicted and actual performance

differ significantly; alerts for remedial control changes

Basic PRODML Optimization Use Case

RTData

Capture

Meas& Model

Data

Ops Modeling

Appl

Alloc& Recon

Appl

Surv &Monitor

Appl

Simul &Optimiz

Appl

Advis &Alert Appl

PRODML’s Vision

• We all talk about “Fields of the Future”– But we want them now.

• The task of integrated optimization and other operational application software solutions could be horrendous– What is we had an industry standard that would

interface – not necessarily integrate – software applications?

– Wouldn’t that be a good thing?– Isn’t this a problem that everyone in the industry

faces?• PRODML can help take us there!

What is this data?

• Now– Emergency Shutdown

Data– Fire & Gas Data– Process Data

• Reservoir• Well• Surface• Pipeline

– Device Data• End elements,

DTS data• RTU/PLC data• SCADA/DCS data

• Future– Sensor technology will

enable the capture of continuous streams of data from every part of the physical environment

What is “Optimization?”

• Optimization– A word we use often, but rarely understand– An objective often mentioned, but rarely

achieved– If achieved, it is rarely sustained

• One Definition– Improving the bottom-line results by timely,

effective and sustained use of sufficient, good production information.

The Business Case

• Enable continuous optimization– Artificial Lift– Estimate well/reservoir oil, gas, and water flows– Safeguard integrity– Manage abnormal situations– Get the right information to the right people, at

the right time, in the right context and in the right workplace to serve the right work processes.

• Examples that illustrate the business case follow.

Gas Lift Optimization

0.0

0.5

1.0

1 7 13 19 25Time

Oil

Pro

du

ctio

n

.

True Production Potential Periodic Manual Optimization No Optimization Activity

GasLift OptimizationApplication

SCADA orHistorian

2 Phase FlowModel

Real time dataTo and from wells

Real time dataTo and from SCADA Optimal Set Points

From model

Real time dataTo model

Gas Lift Optimization

• When a well is completed, we decide how to set up gas lift parameters using multi-phase flow models.

• The initial production, however, declines over time.• After a few years, the well production is analyzed and

revised gas lift parameters are put in place. Production increases, but then gradually declines again.– This gives the saw-tooth pattern shown in the

diagram.• If we analyze and model continuously, we can achieve

production up to the blue line on the diagram.• The space between the saw-tooth and blue lines is the

prize from continuous optimization. – Increased recovery, reserves, production

• This is a potential benefit from PRODML.

Potential Optimization Business Benefits

• Improved technical integrity• Improved safety• Increased production• Reduced operating expenses

• A Shell engineer working on the PRODML team reported:– Production is about 4 million BBLS oil equivalent daily– Conservatively, optimization can contribute a 5%

increase or 200k BBLS daily– To achieve the same increase would require 2 new

platforms in the Gulf of Mexico• Cost: 3 Billion USD• Time: 5 years• People: 3,000

PRODML is a Key Enabler for These Benefits

• PRODML helps get real-time data from the field capture systems to applications

• PRODML helps move data among applications

REAL-TIME Data– ESD– F&G– Processes– Devices– Etc.

Applications– Abnormal Sit.– HC

Accounting– Maintenance– Simulators

• Reservoir• Well• Pipeline• Process

Set Points andRecommendations

Field Data

What was the PRODML Work Group?

• Five oil companies proposed an initial standards development effort with established goals and constraints.

• Eight vendor companies and POSC (now Energistics) were invited to join the effort.

• The size was kept as small as practical.• All results will be by consensus and will be shared openly.• The duration was limited to one year – Q4 ’05 – Q4 ‘06

– Afterwards, the results went to Energistics for maintenance and further development.

• State-of-the-art communications and computing technologies would be put to use.– Internet, Web Services, SOA, W3C, etc.

PRODML Work Group Organization

PRODML Teams

• Steering Committee– Set direction and deliverables; oversight– All members represented

• Operational Team – Day-to-day management by funding companies

and team leaders– Weekly conference calls

• Content Team– Business and data requirements; use cases

• Technical Team– Infrastructure requirements; architecture

• Communications Team• Pilot Coordination Team• Legal Framework Team

PRODML Work Group (’06) Members

PRODML Initial Scope

• Work Group participants agreed to scope limitations for the initial work effort:– Start from field data already received and stored

in Historians– Stop short of closed-loop control changes– Address only optimizations with recommended

changes that can be implemented within one day• Reference Use Cases were chosen:

– Gas Lift Well (Inlet Gas Changes)– Free Flowing Wells (Surveillance)– Field-wide (Surveillance)

• Each pilot testing activity supported one of these use cases

Use Case: Gas Lift Well

Use Case: Free Flowing Well Surveillance

Use Case: Field-wide Surveillance

Data Scope

• Production Systems in Producing Fields consist of– Flow Network topology (Flow Network XML Schema)

• Production and injection wells, equipment, etc.• Flow connections: outlet to inlet

– Measurements (Volume Reporting XML Schema)• Production volumes and flow rates• Pressures, temperatures, etc.

– Test results (Well Test XML Schema)• Production well test results

Application Plug-and-Play

• PRODML seeks to enable application software components from different vendors to interact in a consistent way.– As Service Requests– And Service Responses

• One vendor’s component may be exchanged for another vendor’s component with comparable functionality– Without damaging the integrity of the

optimization loop configuration• Some of the pilot testing activities explicitly

demonstrated application Plug-and-Play.

PRODML Working Culture

• Funding Companies (5)• Vendor Companies (8)• Standards Organization (Energistics)• Teams• Project Management (Full-time)• Team Interactive Web Site• Public Web Site• Shared Computing Facility (“Sandbox”)• Process

– Use Case Described and Agreed– Interactions (Cartoons and Spreadsheet)– Pilot Testing Activities (Software)

• Public Demonstrations / Seminars

Tracking PRODML Progress

Months

2 4 6 8 11 14

• Project planning• Team Kick-Off

• Workshop preparation and scheduling

• Standards investigation• Develop Scope

• Conduct workshops• Detailed Requirements• Macro Design

• Process mapping • Technology assessment• Detailed Requirements• Macro Design

Design-Develop-Test

• Project Management• Communication

Build

• Implementation guide outline• Process flow documentation• Plan Pilot

Pilot

ImplementationPhase 1 – Scope and Define

Steering Committee Meetings

Content

Technology

• Design POC• Build POC

Requirements Build & Communicate

• Design Communication Plan• Develop Test Bed Scenarios

StartAugust 16, 2005

EndNovember 15, 2006

Industry Review

Strong Typing

November 15, 2006V1.0 Release

How has PRODML built on WITSML?

• WITSML (Wellsite Information Transfer Standard – Markup Language) is an Energistics family of standards primarily intended to support the movement of drilling data from well-site to office. – Started in early 2001– Promoted and supported by the WITSML Special

Interest Group (WITSML SIG) made up of over 40 industry organizations

• Similarities– Initial development organization and process– Data and infrastructure aspects re-used or adapted– Longer-term alignment remains a goal

PRODML’s Completion Announcement

• PRESS RELEASE (September 28, 2006) coordinated with SPE Conference in San Antonio and a PRODML Hospitality Suite Session

• PRODML Version 1.0, open industry standards, completed and released to improve data exchange and work process efficiency in production optimization.– Launch of Work Group in August 2005– Viability demonstrated with four realistic pilot

testing activities led by BP, Chevron, Shell and Statoil

• From 1 to 1000 wells• Plug-and-Play multi-vendor applications• Meaningful workflows

PRODML’s Completion Announcement (2)

• Standards under custody of Energistics for maintenance and further development.

• XML-based data exchange solutions are available for adoption and extension

• Work Group Participants– BP, Chevron, ExxonMobil, Shell, Statoil– Halliburton, Invensys, OSIsoft, Schlumberger, Sense

Intellifield, TietoEnator, Weatherford– Energistics

• Further information on www.prodml.org or from Energistics

PRODML Documents

PRODML Documents: Intended Uses

PRODML ’07 Work Group

• Repeat Successful Aspects of PRODML Work Group in 2006– Small but sufficient number of participating

companies– Small but sufficiently meaningful scope of new

functionality achievable within one year’s effort– Funding from participating companies to pay for

full-time project management, collaborative meetings, support facilities, subject experts where needed, etc.

– Comprehensive work planning based on well defined teams with strong leadership and frequent communications within and across the teams

What’s New for 2007?

• Replace remaining hard-coded and proprietary interfaces of optimization application software with PRODML-based solutions– Example: Driving applications from a common

Production Flow Network Model description.• Extend the footprint of the types of optimization that

PRODML has been demonstrated to support.– Example: Demonstrate support for ESP (Electrical

Submersible Pump) Artificial Life Well Optimization• Demonstrate the ability to integrate the previously

published Energistics Production Reporting Standards with PRODML-based solutions.– Example: Have back-allocated wellbore volumes

reported and/or recorded using PRODML defined Web Services

In the Marketplace

• Vendors are planning to develop commercial PRODML-based versions of products during 2007.– This work will be enhanced by the additional work

planned for ’07, e.g. widening the footprint, as this will strengthen the market for such products.

• Without PRODML strength and growth, there are risks:– Point solutions will continue to be developed

• Preventing low-cost, low-risk innovative optimization deployments, especially those that mix and match products from multiple vendors

– Energy companies will develop solutions themselves• Further fragmenting the market and making conversion

to standards-based solutions more difficult

Vision for 2007 and Beyond

• For end of 2007– Demonstrate additional PRODML-based functionality

through Pilot Testing Activities.• Build on Version 1.0; try to maintain compatibility

– Encourage the PRODML SIG Steering Committee to define a multi-year roadmap for PRODML Standards, that increasingly:

• Helps reduce cost, time, complexity and risk for production optimization solutions using communications and computing technologies

• Enables novel and valuable workflows with integration not conceived or not practical until now

• Work with other solutions and standards related to production optimization, wells, reservoirs, processing plants, production accounting, etc.

Vision for 2007 and Beyond

• Consider similar efforts in associated areas, such as– Well Management– Well Optimization– Reservoir Performance– Opportunity Portfolio Management– Facility Optimization– Etc.The PRODML approach and the PRODML

architecture may fit well in some or all of these areas.

PRODML ’07 Work Group Scope: Flow Network Model

• Requirements– Basic Flow Network Model content: Units, Ports,

Connections, Locations, etc.– Enable applications to respond to configuration changes

either of Units/Connections or operational parameters– Address connections with adjacent models, e.g. reservoir– Enable levels of abstractions and subsets – Enable different depths of information about Units– Enable interactions with existing / emerging standards

• Proposed Pilot Testing Activities– Support multiple levels of detail and support major/minor

configuration changes– Consider Web Services to supply Flow Network

information to applications, including information about changes

PRODML ’07 Work Group Scope: Well Types

• Priorities for ’07– Fluid-Driven Artificial Lift – Surface Connections only

• Consider Time Cycles for intermittent gas lift/plunger lift• Jet and Hydraulic Pump wells

– Power-Assisted Artificial Lift• Consider electric motors at the surface • Consider mechanical lift • Consider variable frequency drives in electrical controllers [later]

– Down-Hole Sensors• Consider wellbore configuration (WITSML Completion)• Consider multi-zone allocated volumes• Consider further aspects of well description [later]

– Down-Hole Equipment [after progress on the above]• Consider down-hole gas lift for surveillance• Consider artificial lift device internals, e.g. motor / pump shaft• Consider flow controller devices

PRODML ’07 Work Group TimeLine & Milestones

• January – June Cycle– January – Planning, sign-up, initiation of work and Pilots– February – Design, architecture confirmed, Pilot interactions,

Paper prototypes– May – Pilot software work progressing, review by participating

organizations, plan July-December Cycle– June – Pilot demonstrations ready, Public review period, Accept

July-December Cycle plan• July – December Cycle

– July – Change Requests from January-June Cycle, Planning, sign-up, initiation of work and Pilots

– August – Design, architecture confirmed, Pilot interactions, Paper prototypes

– October – Pilot software work progressing, review by participating organizations

– November – Pilot demonstrations ready, Public review period, Plan 2008

– December – Change Requests from July-December Cycle.

PRODML SIG and PRODML ’07 Work Group

SteeringCommittee

Spec.Team*

Impl. Sup.Team*

’07 Ops.Team

’07 ContentTeam

’07 Tech.Team

Promoting and supporting useof current Standards and

supporting needs of PRODML ’07 WG

Focus on defining, implementing,piloting, demo-ing ’07 capabilities

in optimization

* Coverage for existing Standards:- optimization stds (PRODML V1)- reporting (WITSML Prod Rptg)- temp surveys (WISML Prod DTS)- fluid properties (WITSML Prod FP)

PRODML ’07 WG

Continues Successful Ways of Working

• IP and Non-Commercial policies• Value, short-duration, Pilot testing activities• Interaction with PRODML SIG and other Standards/SIGs• Resource commitments• Self-funded• Closed participation of small but adequate number of members

– Energy, Service/Software, Technology, Standards [Energistics]• Communications out to Energistics community and the industry• Comprehensive hands-on project management• Agreed Terms of Reference; approved by SIG Steering Committee• Operational Team, Interaction Tools (Web Sites)• Meetings and Conference Calls• Effective Work Group Team structure

How to Participate in PRODML in ‘07

• Use PRODML Version 1.0 Standards– Develop (and sell) or license and use PRODML-based

products• Join the open PRODML Special Interest Group

– The Energistics open user community for all Production industry standards, including PRODML

• Also, Fibre Optic Temperature Surveys, Production Reporting, and Laboratory Fluid Sample Analysis Results

– Promotes and supports use of PRODML V1.0 Standards Contribute to the long-term roadmap for PRODML Standards

– Contact Energistics for details• Join the PRODML ’07 Work Group

– A self-funded, closed work effort to push PRODML to a new level of functionality mainly through more Oil Company led, Vendor involved Pilot Testing Activities

Shell Pilot Testing Activities

• Free-Flowing Well Surveillance• Purpose

– Notify operator whenever measured and projected production volumes differ beyond a defined threshold

– Uses three sources of information• Actual and two sets of simulation results (Plug-and-Play)

• Data Validator Application [Invensys: InFusion]– Triggered according to a schedule

• Historian [OSIsoft: PI]• Simulation #1 [Petex: Prosper]• Simulation #2 [Weatherford: WellFlo] • Notification [Invensys]

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BP Pilot Testing Activities

• Gas Lift Optimization• Purpose:

– Optimize Gas Lift by recommending revised lift gas rate changes

– Plug-and-Play demonstrated by 2 Monitor applications

• Data Consolidator #1 (Monitor) [OSIsoft: ACE]• Data Consolidator #2 (Monitor) [Intellifield:

SITECOM]• Historian [OSIsoft: PI]• Optimizer [Weatherford: GL Optimizer]• Notification [Intellifield: Portal]

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Chevron Pilot Testing Activities

• Field-wide Water Management• Purpose

– Notify user when water tanks will reach high level, and prescribe rates for highest impact wells

– 1000 wells (of 10,000 in the field)• Production Accounting [TietoEnator: EC] • Monitor Application [Invensys: InFusion]• Historian [Invensys: InSQL]• Simulator [Weatherford: LOWIS]• Forecasting [Landmark: DSS]• Data Integrator [Schlumberger]• Notification [Invensys]

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20 Determine well type

18 Get well statuses

21 Get allocations

17 Determine well type

24 Develop prioritised list

10 Determine well type

22 Forecast wells23 Get rig on/off dates

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7 Determine well type8 Get simulated sales & status data9 Get well test data

11 Get simulated well data12 Consolidate data

13 Allocate flows

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Statoil Pilot Testing Activities

• Optimize smart wells• Purpose

– Optimize smart wells and report recommended operational parameters

• Data Consolidator (Monitor) [Schlumberger: DECIDE] • Historian [Out of Scope]• Production Accounting and Operational Parameters

[TietoEnator, PROSTY]• Optimizer [Schlumberger: IAM]• Simulator [Petex: PROSPER]

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Thank You धन्यवा�द