From a Tactical “Historian” to a Strategic Enterprise ... · Real-Time Optimization PI...

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© Copyr i gh t 2013 OSIso f t , LLC.

From a Tactical “Historian” to

a Strategic Enterprise

Integration and Applications

Infrastructure

Supporting Marathon Oil’s

Sustainability Strategy with

the PI System

Ken Startz – Marathon Oil Company


Agenda • Marathon Oil at a Glance

• The PI System - From Tactical to Strategic

• The PI System and Sustainability

• Illustrative Case Studies

– Equatorial Guinea – Offshore Remote Operations Monitoring

– Droshky (GoM) – Offshore Integration, Modeling, SME Collaboration, and Data Sharing

– Piceance (Colorado) - OnShore production Operations

– Maradrill TM – Onshore Remote Drilling Monitoring and Optimization

• Closing Remarks

2


• Established in 1887

• Market Cap: ~ $26 billion (as of 7/26/13)

• Revenues: $15.7 billion

• Net Income: $1.6 billion

• Capital Expenditures*: $5.1 billion

• Net Liquid Hydrocarbon Sales: 282,000 BPD

• Net Natural Gas Sales: 902 million CFD

• Net Synthetic Crude Oil Sales: 47,000 BPD

• Net Proved Liquid Hydrocarbon, Natural Gas and Synthetic Crude Oil Reserves: 2.0 billion BOE

• Employees: ~3,400

• Headquartered in Houston, Texas

*Excludes acquisitions and includes accruals. Unless otherwise stated, financial and operating statistics noted are as of 12/31/12

A Global E&P Company- Production in 11 Countries

3


Sustainability – Adapting to Change

“Building a more sustainable business requires wise investment, advanced technology

and stewardship of the environment - Ultimately, sustainability means adapting to change”.

Marathon Oil 2012 Annual Report

4

Information Management


The Journey of the PI System at Marathon Oil

5

PI System selected in Refining as standard real-time

data “historian”

My First PI System

Install – Robinson, Ill

Refinery

PI System selected as integration and applications infrastructure in Upstream for Equatorial Guinea

PI System Installed in Norway to Integrate and enable remote monitoring and collaboration; Droshky Gulf of Mexico

PI System used for remote Drilling monitoring and optimization

1987

1988

2005-2006

2012

2006-2010

Separation of Marathon into

Marathon Petroleum (Downstream)

& Marathon Oil (Upstream) 2011

Tactical ”Historian”

Strategic Infrastructure


Business Challenges for 2012 / 2013

• Develop infrastructure for high frequency data needed for Drilling.

• Embrace new web-based tools like PI WebParts and PI Coresight.

• Leverage PI System investment in the new unconventional resource plays.

• Transfer knowledge to newer professionals (Great Crew change).

• Provide easy self-service visualization for engineers.

• Deliver mobility solutions on iPad.

7










• Closing Remarks

8


Equatorial Guinea – A Long Ways from Houston….

BLOCK D

ALBA BLOCK

Apatito

Bococo

Agate

Estaurolita

Violeta Gardenia

Begonia Ligero

Magnolia

Sierra Madre

Estrella

Gardenia Discovery

Alba Deep Discovery

Alba 18

9


Alba Field

Is all about the scale!

Alba 9 Well

and Marathon Oil Tower

Houston, Texas

Marathon Oil Tower

Alba – 9

564’29,600 acres

~ 14,923 soccer fields!

10


Alba Offshore Wells

Partners

Products

Marathon OIl

Noble Energy

GEPetrol

CONDENSATE

NATURAL GAS

Operator

Alba Field Development

Economic Value Chain

Long-life

assets with

diverse

product and

revenue

streams

Gross

Production

~ 220,000 boepd

PROPANE

BUTANE

Alba Gas Plant

Marathon Oil

Noble Energy

SONAGAS

EG LNG

Marathon Oil

Mitsui

Marabeni

LNG METHANOL

AMPCO

Marathon Oil

Noble Energy

SONAGAS

Atlantic Methanol Company LLCAtlantic Methanol Company LLC

11


Finished Platforms

B

Platform

C Platform

Pipelines Landfall

B2 Platform

12


MEGPL Gas Plant

13


Equatorial Guinea – Before the PI System

E G DCS Network

Offshore

Platform A

Honeywell

Experion

Offshore

Platform C

Honeywell

Experion

Offshore

Platform B-B2

Honeywell

Experion

Gas Plant

Control System

Honeywell

Experion

Honeywell PhD Honeywell PhD

One PC Worldwide

PHD Access

14


Equatorial Guinea – After the PI System

MEGPL PI System

Honeywell Offshore PhD

Honeywell Gas Plant PhD

Energy Components for Production Allocation

-

-

-

--

-

-

-

-

-

-

-

All EmployeesEmerson Delta V Offshore

Emerson Delta VGas Plant


Conversion from Honeywell to Emerson

16


Equatorial Guinea - Benefits

• Interface to HYSYS simulation package

• Worldwide viewing of EG data

• Exports to GE and other service companies

• Time stamp matching of offshore and on-shore data

• Interface to Production Allocation System (Energy

Components)

• Easy to Convert to New Control System

17










• Closing Remarks

18


Droshky - Background

• The field is 100 percent Marathon (WI). The sub-sea wells tie back to Dynamic Offshore

Resources Bullwinkle Platform, Gulf of Mexico. The tie back is through an 18-mile

pipeline.

• The majority of the data is acquired from Aker Solutions sub-sea control system.

• Some data is extracted from Dynamic Offshore Resources PI System, coming from

Industrial Evolution.

• First production was July 2010.

• Downhole calculations by Baker-Hughes DHTP Calibration server on the platform.

• Re-calibrations performed monthly by Baker-Hughes in Houston office.

19


Overview of Off Shore Production Facilities

4 Subsea Wells

w/ 10 completions

Dual 8” Insulated Flowlines

75,000 BPD Design Rate

Well Control

Umbilical

Flowline Manifolds

Shell Bullwinkle Host Platform

20


Bullwinkle

Rocky Angus

Noble Lorien

Manatee

Nexen Aspen

Brutus

Troika

Droshky

GC244GC243

GC199GC200

GC158

GC113GC110

GC65

GC155

GC201

Eagle

21


Umbilical

• 18.5-mile “extension cord” that connects the tree control pods to host

platform

• Allows monitoring and control of the wells

Communication

Spare

Electrical

Power

Annulus

Monitoring

Asphaltene /

Paraffin

Inhibitor

LP Hydraulic

Power

Methanol

HP Hydraulic

Power

Chemical /

Scale Inhibitor

22


Droshky – Without the PI System

Aker Solutions MCS

(sub-sea data) Baker Hughes

Flow-Calculator DHFM

Remote Monitoring

VIC Client

Lafayette and Houston

24


Production Analysis

Saphir / Topaze

Kappa Diamant Database

(high frequency pressure

and rate data)

PI Database (MOC)

Real time Collection

and Reporting

(Plano, TX)

TOW Database

Production Allocation

and Reporting

(Houston, TX)

PI Database (Shell)

Real time Collection

and Reporting

MMS Production

Reporting

SAP Entry (IBM)

Production Accounting

(Tulsa, OK)

SPL Incorporated

Monthly Production Allocations

(Pearland, TX)

Monthly Allocations (IBM

Manually enters into SAP)

Baker -Hughes

SDA Flow-calculator

DHFM

Aker Solutions

MCS

(subsea controls)

Bullwinkle Control

System

(Intellution)

Offshore

Raw Data

Subsea Controls

Shell Provides Daily

Allocations (MOC Operators

Manually enter into TOW)

Water Depth ~ 3,000 ft

Facility Tags

87

Subsea Tags

788

Calculated Tags

150

Shell (DOR) Controlled MOC Controlled

Remote Monitoring

Vic Client

(Lafayette and Houston)

Neptune Gas Plant

Monthly Gas Sales

Allocations

Industrial Evolution

Contract

Droshky – With the PI System

25


Droshky - Benefits

• Savings of $5K per user for displays vs. VIC client

• Daily input deck for Eclipse models saving vs. hand-typing by

engineers.

• Automatic daily entry into production allocation system (TOW)

• One source of the truth using PI OLEDB COM connectors into

TOW.

• Monthly updates for re-calibration of Baker-Hughes downhole data

using PI Universal File Loader (UFL). The PI System is considered

“Gold Database”.

• Sub-surface modeling with automatic channel created to Kappa

Modeling Suite.

26


Engineering Models Used

• ECLIPSE: Sub-surface reservoir modeling for multi-phase flow through

porous media. (Entire Field)

• Kappa Diamant/Saphir: Pressure transient analysis. Used in the early

stages of a well to evaluate properties in the close vicinity to the well.

(One well at a time)

• HYSYS: Topsides modeling. Usually used for offshore platforms.

Maximize fluid recovery to optimize surface production facilities.

27


Reservoir Engineer Quote

“A new well drilled and completed in Deepwater Gulf of

Mexico or Equatorial Guinea can cost up to $125

million. Proper reservoir characterization includes flow

and pressure build-up data down to the six-second

level, in order to avoid wasting capital on unproductive

wells.”

28










• Closing Remarks

29


30

Piceance Asset: Garden Gulch Cliff Road


Piceance Field Overview

Garden Gulch Rd

Valley Pump Station

5,790’

CDP

8,300’

Laydown Yard

8,250’

Pad 20C

8,260’

Pad 31C

8,520’ Pad 35D

8,150’

77 Production Wells

22 Pads: 1-10 wells per pad

Piceance avg well:190 mcfpd, 5 bwpd, 0.5 bcpd

100% WI; 82% NRI

18A

8,100’

31


Pad 1C (10 well pad)

32


Entire Pad including Facilities

33 • Piceance Operations


Piceance Background

• Mesas in Western Colorado.

• Began production operations in 2007.

• 77 wells based on 27 pads.

• Primarily gas.

• Data collected in PI Server (From the beginning of the Asset).

• New engineer from another company with better visualization than Wonderware Active Factory.

• Visualization developed by operations engineer in one half day!

34


PI System

2010

Business Network

Wonderware

InSQL

Active Factory

CITRIX PI Coresight

Control Network

No More

VPN!!!


PAD 28-C on PI Coresight

36


Piceance - Benefits of PI Coresight

• Gets operators out of office and on-route quicker.

• Reduces contract labor.

• Provides look back at 1 year of production history vs. 1 month.

37

𝐵𝑒𝑛𝑒𝑓𝑖𝑡 =0.5 ℎ𝑜𝑢𝑟𝑠

𝑑𝑎𝑦∗

$60

1 ℎ𝑜𝑢𝑟∗

5 𝑑𝑎𝑦𝑠

1 𝑤𝑒𝑒𝑘∗

48 𝑤𝑒𝑒𝑘𝑠

1 𝑦𝑒𝑎𝑟 = $𝟕𝟐𝟎𝟎 /𝒚𝒆𝒂𝒓










• Closing Remarks

38


MaraDrill™ Background

• Land-based drilling rigs in Eagle Ford and Bakken.

• Primarily oil.

• Horizontal wells.

• Factory drilling.

• Rigs operated by Helmerich & Payne (H & P).

• Data extracted from OMRON Control System and aggregated with 3rd party vendor data, using PI Interface for OPC HDA.

• POC started January 2011.

39


MaraDrill™ Doghouse

40


Common Drilling Data Tags Engineering Units

ROP = Rate of Penetration – Ft / Hr

WOB = Weight on Bit – K Pounds

RPM = Revolutions per Minute – RPM

Mud Flow Rate – GPM

Torque – kFt*Lbs

Need 1 second time stamp resolution!

41


Data Workflow

PI Server

H&P 463 Eagle Ford

H&P 256 Bakken

H&P 458 Eagle Ford

MaraDrill™

PI System Tags

Historized

values

Houston Tower

PI Coresight

Mobile Rig Network

Architecture

PI DataLink

42 42


MaraDrill™ – Data Acquisition: PI DataLink Collect MaraDrill™ data from PI DataLink

Functions that retrieve single value

• Current value

• Value at a specific time

• Tag attributes

Functions that retrieve series of values

• Evenly spaced (sampled) data

• Compressed (archived) data

• Sampled data for a user-specified

array of timestamps

43 43


Pre-MaraDrill™ vs. MaraDrill™ Technology

Intermediary Application

Tool for Advanced Analytics

PI JDBC 2010 Provider

Pason Data Calculator Spreadsheet

PI DataLink

Pre-MaraDrill™

MaraDrill™ Technology

PI Server

44 44


PI Coresight – Stick-Slip Identification: H&P 463

“Perfect” drilling

Stick-slip

Stick-slip: Non-uniform rotation of the bit/BHA

Sticking phase → bit stops

Slipping phase → bit “breaks” free

Drillstring torsional oscillations

45 45

Real-Time Optimization PI Coresight

46

Stick-Slip Identification

“Acceptable” Moderate Severe

Avg. ROP

for stand

is 144

ft/hr

Stick-Slip Mitigation

Avg. ROP

for stand

is 201

ft/hr

Driller has taken suggestion

…few stands later…

40% Sustained Increase in Rate of Penetration


PI Coresight/SpotFire – Stick-Slip Analyses

Advisory in Real Time • Importance of 1 second data

Other vendors

Rig Display

47 47


PI Coresight - Stick-Slip Advisory in Real Time

Stick-Slip is Expensive

• Increased bit cost due to number of runs, repair/replacement charges

• Increased hourly cost due to motor usage

• Increased drilling time due to accelerated dulling (low ROP)

• Increased trip time due to number of runs

• Increased costs associated with downhole tool damage (MWD, LWD)

48 48


CoreSight View with XML Data Export

49

Enables integration with WellView data Enables integration with Spotfire visualization


Custom Spotfire Interface Import from CoreSight Data or Manual Selection

50

Enables integration with PI System data from Coresight Guided analytics


Guided Analysis – Time Based or Depth Based

51


Post-Well Science Using MaraDrill™ Data in SpotFire

52

Modeling the rock strength &

predicting ROP’s on

subsequent wells in the area

to improve logistics and

planning


Days vs Depth Curves for MaraDrill™ Rigs

Black = MD, Teal = No MD

53


Post-Well Science Using MaraDrill™ Data in SpotFire Formation Sweet-Spot Analysis

54


MaraDrill™ Benefits

• May replace third party real-time data aggregation software.

• Accessible real-time data at the rig and to remote employees, enabling more efficient decision making.

• Consistent and easy-to-access data. More eyes on the data.

• Drilling time and capital well cost savings:

• Potential $ 1 MM / rig / yr for every 5% reduction in drill time.

• Reduced vibration and damage to downhole tools

• Continuous optimization onsite and retrospective post-well analysis

55 55


PI System Helps Drillers Too!

56


Conclusions

Utilizing OSIsoft’s Real-Time PI System Infrastructure

• Standardize Operational Data

• Separation of Consumers

• Application Platform

Utilizing Microsoft’s SharePoint Platform

• Visibility to Anyone

• Easily Configured / Flexibility

• One Version of the Truth

57


Summary

1. Use and value of the PI System has evolved over the last 25 years…and has become strategic to our information infrastructure

2. Integral to our sustainability vision

3. Significant benefits in model integration and SME enablement

4. PI System has value in drilling also…..

5. PI Coresight offers significant improvement in visualizing PI Data

58


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59

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Ken Startz

60

[email protected]

Advanced Senior Business Analyst

Marathon Oil Company

From a Tactical “Historian” to a Strategic Enterprise ... · Real-Time Optimization PI...

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