Hydrocarbon business overview

Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008

Hydrocarbon Exploration & ProductionBusiness, Technology and Information Overview

Scope of Document : Overview of E&P Business.

Nature : Presentation

Security : Public

Author : G Srikanth

Date and Version : 16-September-2008 v1.0


Structure

1. Story of Oil & Gas

2. Science

3. Technology

4. Business

5. Information Systems


Story of Oil & Gas - Origins

Natural Gas and Oil seepages are known to many civilizations (Eg. Jwalamukhi)

Col. Edwin Drake discovered modern oil at Titusville, Pennsylvania in 1859

Digboi in Assam is the world’s first oil field discovery outside USA (First in India)

Drake’sWell

Oil wells in Titusville, 1880

Digboi-1


Story of Oil & Gas – World producers

Oil Industry became the backbone of world industrial development (replacing Coal)

Geopolitics started orienting towards oil

>1000 oil fields discovered

>1million wells drilled

>10T$ invested

GiantBigMediumSmallMinor

World Oil Producers


Crude prices controlling global economy


Story of Oil & Gas - Giant Fields India

AnkleshwarBasseinBassein, NorthBombay HighDhirubhai (KG-DWN-98/2 block) LakwaMoranNahorkatiya

Source: American Association of Petroleum Geologists (AAPG) Memoir #78Petroliferous Basins of India. ONGC Gas Field, Oil Field


Oil is the driver of modern civilization.

Hydrocarbon

Exploration & Production business Discovery and Profitable production of Oil and Gas

Hydrocarbons in Modern Society


Origin of Petroleum – Scene-1

Oil is a fossil fuel. It was formed more than 300-10 million years ago. Some scientists say that tiny diatoms is the source of oil. Diatoms are sea creatures the size of a pin head. They do one thing just like plants; they can convert sunlight directly into stored energy

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Origin of Petroleum – Scene-2

In the graphic on the left, as the diatoms died they fell to the sea floor (1). Here they were buried under sediment and other rock (2). The rock squeezed the diatoms and the energy in their bodies could not escape. The carbon eventually turned into oil under great pressure and heat. As the earth changed and moved and folded, pockets where oil and natural gas can be found were formed (3).

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Petroleum Geoscience

Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008G Srikanth, ADCO. Abu Dhabi. UAE

Geology Paradigm

Largely Visual, Schematic and Interpretation based

Heuristic and Empirical concepts and principles

Wide ranging Scale-of-Support issues

Many Workflows unchanged with IT. Examples:– Core Description– Well Log Correlation

Limited algorithmic structure


Sciences in Petroleum Geoscience

1. Mathematics Fluid dynamics, Digital Signal Processing, Fourier analysis

2. Physics Rock physics (petrophysics), Geophysics –Seismic , Instrumentation

3. Geology Search, Discovery and Characterization

4. Geophysics Seismic, Gravity and Magnetic surveys

5. Chemistry Oil & Gas Composition, Properties, Drilling Mud chemistry, Rock chemistry

6. Computer Fractals, ANN, Fuzzy Sets, Advanced Graphics


Technology in Petroleum E&P

1. Computer Array Processors, HPC, Virtual Reality, Petabytestorage

2. Chemical Processing, Extraction, Plant design, Reservoir engineering

3. Civil Drill site preparation, plant sites, Field layout, Structural design of platforms

4. Electronics & Communication Design surveillance and monitoring equipment, Communication, Instrumentation

5. Geodetic Surveying and Positioning

6. Environment Harazad studies, Spill management, Disposal

7. Mechanical Drilling, Heavy Equipment, Plants

8. Petroleum Well-Design, Flow-Networks, Production Optimization


Technology initiatives - Geophysics

1. To obtain High Resolution, High fidelity data for Imaging Geologically Complex settings, Deep and Ultra Deep Water

2. Enhanced Signal/Noise Ratio; Imaging of Complex Geological Settings; Physical Properties of Rocks

a. High Res. 3Db. Q Marinec. Long Streamerd. Solid Streamer

a. True Amplitude Processingb. DHIc. Demultiple: SRME/3DSRME/ Hi

Res. Radon d. Imaging: PSTM/PSDM -

Kirchoff/Wave Equation Migration

e. AVO/AVA (LMR) Inversionf. Pre/Post Stack Inversion


Petroleum E&P Business Overview

E&D is essentially Centered around managing information– Quality– Completeness– Auditability

Significant value accretion

E&D is essentially obtaining “reliable” information on O&G occurrence and recoverability

Business Vision

ExecutionExploration &Development

ValuationAuditingTechnology

Information

$ $

~10,000CrIRS


Simplified E&P Business WBS

Business Development, Planning, HR, Finance, Legal, HSE, Marketing

Science and Engineering domainsTechnology, Valuation & Appraisal

Engineering. Well Engineering, Surface Engineering & Projects, Production Engineering

Business Mgmt

Exploration & Development

Engineering & Technology


State Gates in E&P


prcs

Typical E&P Organization

CEO

Business Support Exploration Development Production

AssetManager

TechnicalDisciplineManager

AssetManager

EPC

FieldOperationsManager

Services

Drilling

HR/IT/HSE


E&P Business Challenges


E&P Critical Success Factors

Access to Reserves– Sustaining discovery rate– Consistent Development

Finding and Development Cost

Technological Capability

Information Capital

Human Capital

Value Maximization

Environmental Friendliness

Cost is a key differentiator


E&P Asset Life cycle – IS features

1. High Compute Capability2. Diverse Application Portfolio for every function3. High Data & Information Costs4. Large data volumes 5. Complex Integration of wide range of data classes6. Information Uncertainty needing multiple analysis and processes7. World-wide operations and standard service requirements8. Remote and hazardous work areas9. Auditors, Certifiers, Collaborators and Regulators10. High business Impact

IT Components in E&P technical areas are unique to the business

E&P Asset Life Cycle

Acquire Explore Develop Produce Abandon


Application Portfolio for an Exploration Processes


E&P – Compute Capability Characteristics

Systems

1. Teraflop processing power needed in many areas of work

2. Very high memory capacity > 64GB needed in many applications

3. Imaging Systems – very high end graphics

4. Huge Data sizes

Applications

1. Specialized and very proprietary

2. Bought-in – Seldom developed

3. Multiplicity of Applications for same/similar functionality

4. Proprietary data structures and models

5. Long cycle times for expertise


PDB

Technical Data flow

Project

Studies are carried out in Project DataBases. These are organised by block and interpretation

CDB

Manualinput Master data

ExternallyPrepared

data

Corporate data

A Corporate DataBaseis the repository of all approved technical data

ProductionData

Batch

Upload

Data groups include:• Seismic• Geology• Petrophysics• Reservoir• Production• Drilling• Culture• Assets• Documents

Tape Library-2 Pbytes

SeismicAppsGeological

AppsPetrophys.AppsReservoir

Apps

Drilling dataSeismic data

Technical applications

Integrated Data

BusinessManagement

ApprovedData sets

StandardData sets


E&P - Information Characteristics

1. High Information Costs

2. Complex data models – Structure and Semantics

3. Analytical complexity

4. Information Uncertainty

5. Large Risk


The Charm of Successful E&P• Spectacular Opportunity• Extensive Diversity• Strategic Contribution

Hydrocarbon business overview

Education

Transcript of Hydrocarbon business overview