Post on 09-Apr-2018
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Prepared by: Group 5Keshav Madan ~20091016Kesher Sumeet ~20091019Mayur Khatri ~ 20091024
Prerna Singla ~20091029Pulkit Bhatnagar ~20091030
Rutvi Jain ~ 20091042
Saurabh Dubey ~20091046
Upstream Oil & GasOperations
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Before they can finalize a project plan theyneed hard data that reveals what it will take to
get the wells to perform at optimal levels.Similarly, investors need to have confidence in
their forecasts to be assured of a worthwhilereturn
Most oil and gas operators areexperts at managing wells, notdata points.
Jeff Dyk
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Integration in the Upstream Three Domains
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Sources of Value FromIntegration
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Framing the Problem Integration Challenges
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Notable Initiatives
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Implementing standards forimproved communication
Several data standards are used to increaseintegration for exploration, drilling, andproduction.
Currently Big Chasm exist between datastandards and business process.
Example: Common data standard forgeophysical data, which is used globally.The tools may include built-in
adaptorsProduction accounting systems
ProcurementMaintenance
ChallengesDisparate sources and nature of dataComplex workflows and different toolsets
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Equipping Managers forBetter Asset Management
It empowers people in the field with currentbusiness information.
Strong local control of operations reported to
be most effective in decision-making.It leads to faster review and approval.
Provide additional information back to fieldpersonnel via Web portals like automationof invoicing and providing access, viahandhelds, bill of materials (BoM).
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Tools for Improving WorkforceEfficiency
Aim of E & P companies is to have fewerpeople in the field and thus people in officeaided by various IT tools.
Information from the field frequently isessential to focus resources mosteffectively. It helps in improving theworkforce efficiency.
Due to the uncertainty in achieving apositive return on investment (ROI) everyinvestment is made carefully in terms ofboth ROI and immediate impact on profits.
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Current Workflows andProcesses
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Gaps in Integration
:Three specific technical difficulties.1 - -Too many point to point solutions
.2 - Supply chain technology service company toproducer
.3 Gas imbalances between production and revenuedata
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Relative usage of interoperability on a scale of 1(hardly used) to 5 (Extensively used)
Use of InteroperabilityTechnologies
Technology Usage Factor Java 3.3
.Net 2.8
Standards 2.3
Web Services 1.9
SOA 1.2
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Interoperability Technologies While . et ,scored somewhat lower than Java respondents agreed
.that their organizations are increasingly migrating to Net in
.a systematic way
Use of Java &is concentrated in G G technical computing.applications
WITSML -is used extensively in Norway and by some of the super,majors and to some extent in service companies but not yet
within the independents
eb services have been billed in the industry as the answerto many integration needs
-Service oriented architecture ( )OA had the lowest utilization.of all the technologies represented
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n e gen n egra onFramework
Integration is the key to realizing the vision of.the digital oilfield
Producers are now realizing increased value fromvertical integration from subsurface throughenterprise systems
- -This framework would enable the plug and play of- - ,best of breed applications and possess four:fundamental characteristics
I. Scalable
II.Support standards
III.Reduce project timelines, lifecycle costs, andrisk
IV.Support security policies
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n integration framework increaseroductivity by making informationvailable across the enterprise .
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Case Study- Laredo PetroleumInc.
Laredo Petroleum, Inc., an exploration andproduction company headquartered in Tulsa,Oklahoma. Laredos strategy is to makestrategic acquisitions and participate in jointdrilling ventures that have upside potential inthe targeted area of the Mid-Continent andPermian Basin Regions of the U.S.
Laredo acquires and develops natural gas, oilreserves, and strategic gathering systems. The
company actively seeks and evaluatesacquisition opportunities to create valuethrough operational improvements, gatheringsystem expansion, development drilling, and
exploration ventures. Laredo uses O & G TAMto automate these activities. The system pulls
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Total Asset Manager-Information Builder
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What TAM does?
TAM automated well lifecycle strategy. It
pulls data from multiple applications intoone trusted source for easy access and
utilizationFrom the TAM system, The company created
dashboards that help highlight problematicareas quickly and easily. Now, technical
professionals spend most of their timesolving problems, not wasting their timesorting through cumbersome databases.
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Cont...
TAM tracks key performance indicators (KPIs)that help Laredo improve :asset visibilityminimize downtimeincrease capacity
manage capital burn rate, and other criticalbusiness functions
Its KPIs and dashboards include :Capital Budget ManagementDrilling and Well workLease ExpirationsFailure AnalysisProduction Performance
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TAM Reports
The Daily Production Report, presents detailsabout daily and forecasted production,with a seven-day rolling average for one ormultiple wells.
The Base Production Report shows themonthly value of forecasted base
production and monthly actual production.The Lease Operating Expense Report reveals
what Laredo budgeted for particular wells
that month and where they stand now. The Lease Expiration Report tracks
thousands of leases on many pieces ofland to make sure those leases are
renewed correctly and on time.
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Cont...
TAM delivers daily reports about the status ofeach well. These reports help Laredo optimizebusiness processes to maximize their assetson a daily basis.
For example, the Daily Operations Report is sent
out by e-mail to the people overseeing thewells. It contains daily information about thework done on the wells, who did the work, jobcompletion status, and well productioncompared to seven days prior.
Key data points within the report are associatedwith thresholds, and TAM uses alertingtechnology to notify people when thresholdsare exceeded. This proactive function keepsmanagers abreast of progress towardsscheduled goals, budgets, and completion
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Application OF BIDM InUpstream
Oracle offers complete data managementsolution for E & P using BI and DM.
Integrates 3-D geospatial visualization withstructured and unstructured operational data.
Offers the fastest time to value and lowest costof any integrated oilfield solution.
SAS can scrutinize data across upstream.Can streamline the requisite EDA.IBMs Cognos provides users who can move
quickly from summary level to granular detail,exploring large information sets with drag anddrop techniques.
Reservoir surveillance and performanceoptimization.
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Cairns Process Redesign
Pay
m
en
t
OLD PROCESSOLD PROCESS
Purchasing
Cairn receiving
Accounts payable
SupplierPurchase
order
Copy ofpurchase
orderGoods
Receivingdocument
In
voi
ce
500 Employees
NEW PROCESSNEW PROCESS
Purchasing
Cairn receiving
Accounts payable
SuppliePurchase
order
Goods
Pay
me
nt
125 Employees
Data-base
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Networked vs. HierarchicalOrganization
Hierarchical Organization Networked Organization
Form al
H ig h ly stru ctu re d
M a n a g e
C o n tro l
D ire ct
E m p loy ee s a costIn fo rm a tio n m a n a g e m e n t
-owned H ie ra rch ica lO rg a n iza tio n s
R isk a v o id a n ceIn d iv id u a l
co n trib u tio n s
In fo rm a l
Lo o se ly stru ctu re d
/D e le g a te le a d/O w n e rsh ip p a rticip a ti
o nE m p o w e r
E m p loye es a n assetIn fo rm a tio n sh a re d
o w n e rsh ipFla tte r O rg a n iza tio n s
R isk m a n a g e m e n t
Te a m co n trib u tio n s
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ConclusionWhat Benefits Would the Right Solution
Bring?
Improve reservoir drainage
Efficiency and productivity
Equipment condition monitoring andreliability
Supply-chain integration