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How Drones Will Affect The Oil & Gas Industry TRENDS THAT MAY INFLUENCE OUR WAY OF DOING BUSINESS

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Drones are not uncommon in the area, but what is unusual about this one is the purpose. “We’re flying a drone to get a visual inspection of the pipeline that crosses the bridge,” says Peoples Gas spokesperson Barry Kukovich. Peoples Gas is experimenting with new technology to find methane gas leaks along the 14,000 miles of natural gas pipeline they have in this region, and bridges are a key target. Pipes along bridges are particularly vulnerable to leaks because of bridge expansion and contraction during weather and even salt run-off in winter

• How Drones Will Affect The Oil & Gas Industry

Unmanned Aerial Vehicle (UAV’s) or Drones are increasingly being used by the Oil & Gas industry for their monitoring and inspection operations. With the use of drones becoming increasingly popular over traditional methods – dangling over ropes and wire - is it time to finally abandon these roles and instead adopt drones to take care of both on-shore and off-shore inspections?

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Overview

•Background – What is a Drone?

•Technology and Applications

•Challenges

•The Future

•Q & A

What is a Drone?

Many names

Unmanned Aerial Vehicle

(UAV)

Unmanned Aerial System (UAS)

Remotely Piloted Vehicle (RPV)

Remotely Operated Aerial Vehicle (ROAV)

Many sizes

Micro-Drones

Prosumer Drones

Commercial Drones

Military Drones

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Background

• Rapidly developing industry

• Estimated $90B market

• 100K jobs in next 10 years

• Highly regulated… for good reason

FAA Regulations • Commercial use of drones illegal

UNLESS:

• Granted a “Section 333” exemption

• Received a Certificate of Authorization (COA) for each flight

• Operated by a pilot with an FAA issued airman certificate

• Pilot’s license is a requirement, currently no specific UAV training

• Operated by a two man team

• Pilot in command (PIC)

• Visual observer (VO)

• Less than 400’ AGL

• Within visual line of sight of PIC

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Technology and Applications

Prevention • Design and construction

• Operation and maintenance • Training and education

Detection • Internal based systems

• External based systems

Mitigation • Locate

• Recover • Cleanup

Asset Integrity

Every operator’s goal is improved safety with increased savings…

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Technology and Applications

• Pipeline Patrol

• Image analysis

• Threat detection

• Gas leak detection

• Cathodic Protection

• Vertical Structure Inspection

• Offshore Inspections

• Mapping

• Data Analytics

Pipeline Patrol – Image Analysis

• Vegetation health

• Soil erosion

• Encroachments

• Deviations from

reference

• “Threats”

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• Vegetation health

• Soil erosion

• Encroachments

• Deviations from reference

• “Threats”

Pipeline Patrol – Image Analysis

• Vegetation health

• Soil erosion

• Encroachments

• Deviations from reference

• “Threats”

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Pipeline Patrol – Image Analysis

• Vegetation health

• Soil erosion

• Encroachments

•Deviations

• “Threats”

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0 0.1 0.2 0.3 0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.4 0.5 0.6 Hue histogram

0.4 0.5 0.6 0.7 0.8 0.9 1 0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.4 0.5 0.6 Saturation histogram

0 0.1 0.2 0.3 0.7 0.8 0.9 1 0 0.1 0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Hue histogram

0.2 0.3 0.7 0.8 0.9 1 0

0.02

0.04

0.06

0.08

0.1

0.12

Saturation histogram

Pipeline Patrol – Image Analysis

• Vegetation

health

• Soil erosion

• Encroachments

• Deviations

• “Threats”

Segmented image using k-means

100 200 300 400 500 600 700 800 900 1000 1100

100

200

300

400

500

600

700

Application of a low-pass filter

100 200 300 400 500 600 700 800 900 1000 1100

100

200

300

400

500

600

700

Sky

Pipe

Vegetation

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Gas Detection

• Diff Absorption Laser

• IR Cameras

Gas Detection

• Diff Absorption Laser

• IR Cameras

Laser, Gimbal, and Wireless Microcontroller System

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Cathodic Protection Data Collection

•Wireless transmission processing unit

• Recorded pipe-to-soil voltage readings

Structure Inspection

• Visual Inspection

• 3D digitizing

• Orthomosaics

• Identify hot spots

•Measurement accuracy

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Mapping & Modeling

• 3D, 2D

• Topographic

• Spill Modeling

Mapping & Modeling

• 3D, 2D

•Topographic

•Spill Modeling

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Current Challenges

We Are Here

Flight Time, Payload, and Distance

• Flight Time

• Battery Powered – 10-18 minutes

• Gas Powered – 2 Hours +

• Payload

• Multirotor – 15 lbs

• Fixed Wing – 5 lbs

• Hybrid Multirotor – 20 lbs

• Distance

• FAA regulations

• Line of Sight Communications

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Data Analytics

• Why Big Data?

• Information from traditional sources

• Information from new sources

• Increased frequency

• Applications

• Equipment maintenance

• Production optimization

• Safety and compliance

• Volumes of data increasing by a factor

of 5 each year 1

• Highest big data priorities2:

• Develop near real time analytics – 62%

• Expand data storage – 58%

• Analyze increasing unstructured data –

53%

• Expected challenges to big data2

• Managing data growth – 49%

• Integrating disparate business tools –

41%

1.Brown, Brad, Jacques Bughin, Angela Hung Byers, Michael Chui, Richard Dobbs, and James Manyika. “Big Data: The Next Frontier for Innovation, Competition, and Productivity.” McKinsey Global Institute, McKinsey & Co. May 2011. 2. Microsoft. “Global Enterprise Big Data Trends: 2013.” September 2012.

Data Analytics

• Apply predictive analytics to big data

• Empirical methods of data mining also used to avoid conditions where pipeline corrosion accelerates

• Real time data leading to prediction provide environment to increase support for safety

:

• Case Study - One meter, four

variables

• Pressure differential

• Energy rate

• Flow rate

• Static pressure

• 100% on medium alert signals

• 57% on high alert signals

• 100% precision

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Data Analytics

• Business Intelligence

• Use tools to find, select, and explore

data in flexible ways

• Data storage and

management

• Capture and enable analysis of data

• Server or cloud-based

Data Analytics

• Business Intelligence

• Use tools to find, select, and explore data in flexible ways

• Data storage and management

• Capture and enable analysis of data

• Server or cloud-based

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Data Analytics

• Business Intelligence

• Use tools to find, select, and explore data in flexible ways

• Data storage and management

• Capture and enable analysis of data

• Server or cloud-based ⓒ2015 Panton Incorporated | Confidential

Summary

• TOMORROW

• Data analysis platform

• Searchable user interface

• Map-based

• Timeline oriented

• Automated image analysis and threat detection

• Class location

• HCAs

• CP data collection

TODAY

• Patrol

• Vertical structure and facilities

inspections

• Gas detection

• Video imaging

• Mapping

• Pre-construction survey

• Phase 1 environmental srvey

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QUESTIONS?