Collaborative TechnologiesThe Challenge of Standardization

POSC CAESAR ASSOCIATION FORUM MEETING KUALA LUMPUR, MALAYSIA

A VENKATA RAOCompetency Head - Oil & Gas Upstream SO

SATYAM

Upstream Standards. Bottom Line Results.

Agenda

• Introduction• Our Flagship Standards• New Collaborative Technology Projects• Final thoughts on Open Industry Standards

Introduction to Energistics

• An open standards industry consortium

• Eighteen years serving the upstream industry

• With 101 active members…

– Integrated, independent and national energy companies

– Oilfield service and professional service companies

– Software, hardware and integration vendors

– Regulatory agencies, institutes and media partners

Energistics - POSC-Caesar Association

• Association was founded in 1997, to promote the development of openly available specifications to be used as standards for enabling the integration and interoperability of data, software and related matters for e-engineering and e-commerce.

• Has a special responsibility for the maintenance and enhancement of ISO 15926 “Integration of life-cycle data for process plants including oil and gas production facilities".

• Now it is a global standardization organization in sync with other standardization organizations in Europe, USA and Japan

Our Energy Standards Resource Centre

Our Energy Standards Resource Centre

Our Energy Standards Resource Centre

Our Energy Company Members

Our Energistics Community

• Global Regions:– Africa (South Africa, Angola, Equatorial Guinea, Nigeria…)– Asia Pacific (China, Japan, Korea, Vietnam, Philippines…)– Eastern Europe (Russia, Kazakhstan and non-EU states)– Latin America (Mexico, Central and South America)– Middle East (Saudi Arabia, Kuwait, UAE, Oman, Bahrain…)

– North America (United States and Canada)– South Asia (India, Malaysia, Pakistan, Bangladesh,

Australia…)– Western Europe (European Union and Norway)

The Challenge of Standardization

• Strategic Perspective– Strategic Standardization Management

• Standards Collaboration– Focus on highest value standards that don’t impact competition

• Industry Commitment– Internal and external commitment to implementation

• Value Delivery– Measuring business value of implementation vs. the cost of not

making standardization a strategic goal

Importance of Open Data Exchange Standards

• Optimising highly instrumented assets through technology

• Efficiently using real-time streaming data from multiple sources

• Open data exchange standards should be:– Freely available– Universally applicable– Plug-and-play

Board

Economics

ReservoirEngineering

ExplGeology

Petrophysics PetroleumEngineering

DrillingEngineering

ProductionGeology

ProductionEngineering

FacilitiesEngineering

ProductionOperationsGeophysics

DrillingOperations

Completion &Workover

E&P Catalogue Standards

XML exchange standards, design guidelines, profiles

Data Management SIG

Production PRODMLSIG

Reference Data Standards

eRegulatory SIG

Global Unique Well Identification Standards

Areas of Focus

E&P Business Process Reference Model

Board

Economics

ReservoirEngineering

ExplGeology

Petrophysics PetroleumEngineering

DrillingEngineering

ProductionGeology

ProductionEngineering

FacilitiesEngineering

ProductionOperationsGeophysics

DrillingOperations

Completion &Workover

Drilling WITSML SIG

Integrated Information Platform

Integrated Information Platform - Why

Our Flagship Standards…

Basic WITSML and PRODML

• Drilling operations (WITSML) and Production operations/optimization (PRODML) need standard frameworks to enable high-quality data, standard data exchanges, and “plug and play” software choices, including:

– A structure of strongly typed names and kinds– Application commands for asynchronous

and “on demand” operation– Handling of data “quality” including:

• Measured, derived, reallocated etc.• Good etc.• Time and ranges of time, from past thru forecast

• Architecture Consists of– Web Services and Methods Specs – How applications communicate to

accomplish use case actions; requests and responses– Data Object Specs - XML schemas; the basis of request data queries and

response data structures

Deep resistivity: RES_DEPDensity: DENNeutron porosity: NEUSonic: AC_COMPGamma Ray: GR

PWLS Standardized Curve Mnemonics

Types of WITSML/PRODML Applications

• 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

• Operational Modeling– Predictive algorithms to predict future measurements from historical

measurements and operational plans• Advisory and Alert

– Invoked when post-analytical predicted and actual performance differ significantly; alerts for remedial control changes

• Allocation and Reconciliation– Derives critical values from measurements, as in back-allocation of volumes

to wellbores

WITSML Summary: Wellsite Information Transfer Standard Markup Language

“The ‘right-time’ seamless flow of well-site data between operators and service companies to speed and enhance decision-making”

An Open Information Transfer Standard for the Oilfield

WITSML Implementations Update

• Drilling Operations– 40+ technology solutions – 33 vendors participating– Saudi Aramco, StatoilHydro

• Regulatory Agency Use– WITSML oriented reporting– Daily drilling reports

• Certification Program– Self certification now– 3rd party certification in 2008

• Example:

Service Co “A”

Analysis Co “B”

Merge & StoredCo “C”

Automatic distribution

Co “D”

Corporate Application use

Real-time drilling

Alarms

Raw Data Archive

Filter Transform

WITSML

Technical DatabaseEnvironment

Service company

RIG or OFFICE

Source: Landmark

Right-time Data

Technical ApplicationEnvironment

WITSML Case Study – Saudi AramcoAramcoLink – A single plot for all service companies

Looking to achieve production optimization?

PRODML: A Collaborative Technology

• 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

– 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

PRODML: A Collaborative Effort

• The founders of the PRODML initiative in 2005 were BP, Chevron, ExxonMobil, Shell, and StatoilHydro

• They were joined in 2006 by solution providers Halliburton, Invensys, Kongsberg Intellifield, OSISoft, Petroleum Experts, Schlumberger, TietoEnator, and Weatherford

• In 2007, energy companies ConocoPhillips, Pioneer Natural Resources and ONGC joined the initiative.

• Also in 2007 solution providers AspenTech, Euriware, Honeywell, IBM, Infosys, Intelligent Agent ,Matrikon, P2 Energy Solutions, Petris, Roxar, Satyam, SensorTran and TIBCO joined the initiative.

Real Time Data

Capture

Measuring& Modeling

Data

Operations Modeling

Applications

Allocation &Reconciliation Applications

Surveillance&

Monitoring Applications

Simulation &Optimization Applications

Advisory &

Alert Applications

Typical PRODML Optimization Use Case:

Piloted PRODML Use Cases

• Gas lift well optimization• Distributed Temperature Survey (DTS)• Allocated volumes for smart wells • Free-flowing well optimization• Field wide optimization• Down-hole measurements• Integrated flow network model• Production volume reporting• Injection Water Handling

0.0

0.5

1.0

1 7 13 19 25Time

Oil

Prod

uctio

n

.

True Production Potential Periodic Manual Optimization No Optimization Activity

Gas Lift 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

PRODML: Gas Lift Optimization:

Production Optimization is the Prize

• Improved data quality and timely delivery

• Improved technical integrity and safety

• Increased production/lower operating expenses

Architectural Abstractions

Service Specifications

Reference Data

Solution Sets

Core Services Independent Data TransferFull Services

Service ProvidersMessage Providers

Service ConsumersMessage Consumers

Service Provider InterfaceService Consumer Interface

ProtocolsSchemasDefinitions

Normative Schemas

XSD

Derived Schemas

XSD

Service Schema

XSD

BusinessServicesData Services Functional Services

(Future)

Support Services

(Future)

ArchitectureWITSML/PRODML Integration

WITSML/PRODML and ISO 15926/POSC Caesar RDL

• WITSML-based and PRODML-based components data objects hold references to instances of equipment, material, and facilities.– Details about these are left to be elsewhere– High-level and “middle-level” classifications are

present mainly to enable other technical components• WITSML: Down-hole well equipment (completions)• PRODML: Surface gathering system components,

sub-surface equipment.

WITSML/PRODML and ISO 15926/POSC Caesar RDL

• The PRODML SIG/WG community has conducted more than ten implementations since 2006.– Statoil (StatoilHydro) have conducted two of these pilot

implementations.– Energistics proposed to Statoil to use relevant equipment class names

from their RDL population in their pilot implementations.– It isn’t known whether this has been done.– The opportunity still exists. – Given positive results from such usage, we can document this

approach for those less familiar with ISO 15926.

New Collaborative Technology Projects

• RESQML SIG– Former RESCUE group now under the Energistics umbrella

• Global Unique Well Identifier– Jointly with IHS Energy

• National Data Repositories– Re-energizing the eRegulatory Special Interest Group

ONGC’s Seismic Standardization Initiative

• Assessment goal was to demonstrate the viability of improving geophysics work practices– Energistics working with SEG and the industry

• Assessment identified strong opportunities for improvement in:– Acquisition, Processing and Interpretation– Formats, Usage, Data Exchange and Data Quality

• Assessment will recommend:– Publish best practices, promote adoption, forming Work

Group– Develop geophysics data exchange/web services standards

in conjunction with SEG for post-processing and interpretation datasets

Does the industry (still) need collaborative efforts to produce, refine, and support data, information and process standards?

• The industry seems to continue to struggle with problems resulting from the lack of consistency, quality, compatibility, etc. in data and information as stored, as transferred, and as used.– Non-competitive,

collaborative standards efforts are still needed.

Final thoughts on Open Industry Standards

Final thoughts on Open Industry Standards

• Standards developed in a proprietary fashion :– Have no business value

• Standards developed collaboratively but not widely adopted:– Have only potential business value

• Standards developed in collaboration, widely adopted and deeply deployed:– Have tangible business value

Why are many standards not widely used or not producing intended results?

• We don’t define non-competitive boundaries well?• We don’t step up to the real (full) scope?

– We solve a subset? We solve under idealized conditions?• We don’t see the need to invest precious time, resources,

and expertise? [self-fulfilling prophesy]• We expect standards to be 100% finished and never have to

change again?• We are tempted to stand on the sidelines and let others do

the heavy lifting [standards definition]?

So …

• In order to have the best chance that the results of our collaborative efforts are really used and do produce expected results,– We believe that we must keep what is chosen to be done,

what is being done, and what has been done• In YOUR minds and in YOUR hands.

• Therefore, our recommended emphasis on The Energy Standards Resource Centre and on pursuing qualified Major Initiatives.

Thank you

Contact details:

A VENKATA RAO , Competency Head - Oil & Gas Upstream SO , Venkatarao_Aryasomayajula@satyam.com

Jerry Hubbard ,Executive Vice President+1 (713) 294-4993

jerry.hubbard@energistics.org