The Operational and
Economic Benefits of Remote
Production Monitoring
Mid Continent Digital
Oilfield Conference
August 15, 2012
Tulsa, Oklahoma
Jim Taylor
Wellkeeper, Inc.
Production Data Gathering
Spectrum: Hand Readings
Pumper Hand Entry Field Data Capture
Device
Remote Monitoring SCADA
Data Frequency 1 per day
Incremental Benefit Status Quo
Communication Call in/fax
Cost Base personnel cost
Production Data Gathering
Spectrum: Field Data Capture
Pumper Hand Entry Field Data Capture
Device
Remote Monitoring SCADA
Data Frequency 1 per day 1 per day
Incremental Benefit Status Quo •Reduce
transcription errors
•Integration with
other systems
Communication Call in/fax Upload
Cost Base personnel cost ~$10-15 per month
Production Data Gathering
Spectrum: Remote Monitoring
Pumper Hand Entry Field Data Capture
Device
Remote Monitoring SCADA
Data Frequency 1 per day 1 per day 24 to ~300 per day
Incremental Benefit Status Quo •Reduce transcription
errors
•Integration with
other systems
•Reduce transcription
errors
•Integration with
other systems
•Alarms/Alerts
•Internet access
•History/Trends
•Some remote
control
•Field productivity
Communication Call in/fax Upload Digital
cell/satellite/radio
Cost Base personnel cost ~$10-15 per month Sensor
install+approx
$100/month (comm
& software)
Production Data Gathering
Spectrum: SCADA
Pumper Hand Entry Field Data Capture
Device
Remote Monitoring SCADA
Data Frequency 1 per day 1 per day 12 to ~300 per day Near continuous
Incremental Benefit Status Quo •Reduce transcription
errors
•Integration with
other systems
•Reduce transcription
errors
•Integration with
other systems
•Alarms/Alerts
•Internet access
•History/Trends
•Some remote control
•Field productivity
•Reduce transcription
errors
•Integration with
other systems
•Alarms/Alerts
•Internet access
•History/Trends
•Full remote control
•Field staff
reduction
Communication Call in/fax Upload Digital
cell/satellite/radio
Dedicated radio
Cost Base personnel cost ~$10-15 per month Sensor install+approx
$100/month (comm &
software)
Long range radio
systems, high end
software
Remote Monitoring vs.
SCADA
SCADAX“We Report, You Decide”
Benefits of Remote Monitoring
Reduce downtime duration; increase
production
Reduce spill frequency and liability
through monitoring and alarms
Reduce safety liability (H2S exposure,
tank climbing)
Optimize field operations
What can you see?
Process Variables
Tank Levels
Pressures
Tubing, Casing, etc.
Flow Rates
Gas, Oil, Water
Temperatures
Heater Treater, Amine, etc.
H2S Concentration
Production Equipment
Pump Off Controllers
ESPs
EFMs
Plunger Lift
Pumps
LACT Units
Compressors
“If it can be measured, it can be monitored”
Wellheads
Tank Battery
HUB™RTUDatabase and
Software
Web Interface
Cell
Sat
Radio
File Transfer
Remote Monitoring Components
Sensors
Sensors and Local
Communication
Sensors
Industry sensors or proprietary?
Modbus Devices
Local Communication
Short range radio or hard wired?
RTU, Long Range
Communication, Database
HUB™ RTU
Gather and package data
for transmission to
database
Communication
Digital Cellular
Satellite/Hybrids
Radio
Wireless Broadband
Database
Co-lo Facility
Cloud
Presentation/Access/HMI
Browser based vs.
client/server
User Rights
Tables, graphs, history,
alarms
Reports and export
Pumpers/Field Personnel
“Forewarned is Forearmed”
Plan day and route based on
data
Pump by exception
Alarms/Callouts
Contract Pumpers
Reduce mileage
Reduce safety exposure
Engineers
Easy access to trends
Identify growing problems
e.g. paraffin
Monitor production
equipment
e.g. rod pumps, ESP’s,
compressors
Management/Marketing/Admin
Overview of production
vs. expectations
EFM and LACT data for
marketing,
transportation and
allocation
Direct data entry into
corporate systems
Economics of Remote
Monitoring
Ideal RM Site
Isolated or
Remote Location
Important:
High Producer
High Exposure: H2S or
Environmental
History of problems
High fluid to tankage
ratio
Quantify the Benefits
Benefits are probabilistic
(If you knew which one site would go down,
you’d just monitor that one!)
Apply across enough sites to get the broader
benefits
Company-wide deployment
Use your actual downtime and spill history to
estimate improvements
Production Increase
Distribution Example
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% More
Percentage Increase
Average=1.9%
Economic Evaluation
Customer
Case:
Date:Input Summary: Economic Indicators
Leases, wells, monitoring points (#) 1 NPV @ 10% $46,055
Exisiting Production 76%
Oil (BPD) 50 1.3
Gas (MCFD) 10
Water (BPD) 200
Assumed Increased Production 1.0%
Number of Pumpers 0.1 $12,136 75%
Reduction in # of Spills per 10 years 2 $3,030 19%
$1,028 6%
First Year Wellkeeper Annual Benefits
Increased Production
Decreased Spill Costs
Pumper Optimization
XYZ Oil and Gas
8/1/2012
IRR=
Straight Payout Period (years)
WELLKEEPER ECONOMIC ANALYSIS
Single Battery; 50 BPD Oil, 10 MCFD Gas, 200 BPD Water
Economic Sensitivity
Example
0%
10%
20%
30%
40%
50%
60%
70%
80%
10 20 30 40 50
IRR
BOPD
IRR versus Tank Battery Production (BOPD)
Base: 50 BOPD, 10 MCFD, 200 BWPD, $70/bbl, $2.50/MMBTU, 1% downtime reduction
One Final Analogy…
“Why settle for only daily data?”
Thank You!
Jim Taylor
Wellkeeper, Inc.
www.wellkeeper.com
888-935-5533
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