30 Oilfield Review

The Next Step in Collaborative Training

Charles BowmanTexas A&M UniversityCollege Station, Texas, USA

William B. CottenNExTHouston, Texas

Gary GunterJeffrey D. JohnsonNExTTulsa, Oklahoma, USA

Keith MillheimUniversity of OklahomaNorman, Oklahoma

Barry NorthSt. John’s, Newfoundland, Canada

Brian SmartHeriot-Watt UniversityEdinburgh, Scotland

Francis TuedorNExTNorman, Oklahoma

For help in preparation of this article, thanks to John Dillon,BP, Naperville, Illinois, USA.NODAL is a mark of Schlumberger. NEXT and Network of Excellence in Training are marks of NExT. DTS (DrillingTraining System), DOT (Drilling Operations Trainer), DMT(Drilling Management Trainer) and MUDSIM (Mud TreatmentSimulator) are marks of Drilling Systems, Ltd. PetroSkillsis a mark of Oil and Gas Consultants International.

The shift in oil company management toward asset-based structures has impacted the way

companies train their employees. NExT, a new industry-university consortium, has adopted

best practices from its partners and plans to develop new training methods for the future.

In some visions of the future, obtaining new tech-nical or safety information about a product or aprocess will be as simple as buying a new chipfor a brain implant, or aiming a wireless universalmind connector at the nearest data feed.Knowledge will be imprinted on our brainsinstantaneously, and we can be confident thatour procedures incorporate the latest innovationsand safety enhancements. Biofeedback receptorswill provide assurance that results of our actionsare as planned.

This science fiction scenario does not exist, ofcourse, and to many this extreme of instant knowl-edge is a frightening, Orwellian possibility. Yet,because many petroleum industry jobs are com-plex and potentially hazardous, employees need tokeep abreast of the latest developments in theirindustry, their discipline and their specialized jobtasks.1 By the same token, employees, share-holders and the community at large expect com-panies to provide a modern, safe environment.

Many operating companies now believe eco-nomic advantage comes from a rapid and properimplementation of technology, rather than beingthe first to develop a new idea. The turmoilwithin the industry over the past 15 years has

generated a tremendous drive to focus on coreactivities, emphasizing what the company doesbest. Outsourcing noncore functions—such asaccounting, building services, engineering andconstruction, and often technology development—has become common.

Traditionally, major oil companies had in-housetraining departments designed to teach newemployees approaches to technical tasks and tokeep experienced staff current in their technicaldisciplines. Company or industry experts taughtthe classes. Trainees worked for the company or,in some cases, for national oil companies thatpartnered with the company. However, after thecrude-oil price drop of 1998, many in-house train-ing departments experienced reduced courseattendance as companies sought to control costs.

The extended depressed business environ-ment led many large operating companies torestructure around their asset bases, with profitand loss responsibilities assigned to lower levelsof management. Training departments had todemonstrate their value to a new, larger set ofmanagers, each of whom set different businesspriorities. Some traditional aspects of training

1. Embach CS: “Offshore Accidents Case Studies,” Proceedings of the 11th American Society of MechanicalEngineers Offshore Mechanics and Arctic EngineeringInternational Conference, vol. 2. Calgary, Alberta,Canada, June 6-12, 1992: 441-448.

Summer 2000 31

didn’t fit with the needs of newly formed assetteams, such as new-hire and professional devel-opment training. As the goal shifted to satisfyingthe immediate needs of the asset team, traininginevitably became more focused (left).

Smaller oil companies have historicallyapproached training differently, often followingthe current asset-based philosophy of the majors.These companies normally contracted for train-ing on an as-needed basis whenever and wher-ever it was available—calling upon organizationsthat specialize in training, such as Oil and GasConsultants International (OGCI) or SubsurfaceConsultants and Associates (SCA).

These training organizations provide central-ized or on-site classroom training to fill the needsof both small and large oil companies across abroad range of topics. Other firms—such asGeoQuest or Landmark—offer training that com-plements their products and technologies. Manyother organizations exploit niches in the trainingfield, or like International Human ResourcesDevelopment Corporation (IHRDC) specialize indistance learning and computer-based training(CBT) (below left). Many professional societiessponsor developmental training for their mem-bers; some are collaborating on multidisci-plinary training.

Some operating companies consolidated ormerged portions of existing training programs,such as the PetroSkills program developed by BP,Shell and OGCI. Parts of training programs fromthe three companies were combined to form acommon set of courses for the companies andthe industry. The two oil companies retainclasses with proprietary content in-house.

Universities continue to offer traditionalcourses leading to degrees in petroleum-relatedsubjects such as petroleum engineering, geologyand geophysics, and their professors conductresearch that is incorporated into course work.Degree-granting programs require a major time

32 Oilfield Review

Continualimprovement

Corporatetechnical training

Newtechniques

Professionaldevelopment

New-hiretraining Safety

> Restructuring technical training. Corporate training departments once provided most training needs for large corporations, ranging from new-hire training to safety and courses for continualcareer improvements (left). Now, asset teams often control training, with an emphasis shift towardcross-training and obtaining technology required to give projects a quick start (right).

Quick-startproject training

Assetteam

Requiredtechnologies

Teamcross-training

Safety

Telephone

E-mail

Video conferencing

Videotape

CD-ROM

Computer-basedtraining (CBT)

Instructor Student

Streamingmedia

> Distance learning. The student and instructor no longer must be in the same room. Communicationcan be through e-mail, telephone or video conferencing. Lectures can be stored on videotape or CD-ROM, or transmitted across the internet using streaming-media presentations. Interactive learning is available through computer-based training (CBT).

Summer 2000 33

commitment from the participants—often a diffi-cult undertaking in mid-career. Some universitiesalso offer short courses that compete with orcomplement industry training but generally havebeen separate from degree-granting programs.

The depressed E&P business environment of1998 to 1999 created an opportunity to changethe way training is conducted. The new approachcombines academic programs with industry train-ing, mentoring and competence assurance. It alsoprovides a bridge between short-course trainingand advanced degree programs in an intensivesubsurface integration program, focused on solvingspecific problems of importance to asset teamswhile providing general professional training in abroad range of topics. Combining innovativecourses at many locations presents lifelonglearning possibilities.

The Approach of Asset TeamsThe move by the major oil and gas companies torestructure around core assets has given theasset team a specific focus—improve the returnfrom that property. Activities that do not lead tothis goal are difficult or impossible to fund.

The current ideal for an asset team is “just-in-time” training delivered to team members in theirown location, addressing the immediate technicalneeds of the team. Traditional company trainingwas not designed to satisfy that need. Rather,scheduling was the responsibility of the trainingdepartment with classes usually offered only afew times a year at a centralized training facility.Training was designed to enhance the employee’slonger term value to the company.

In today’s climate, the asset team staff islean. Each member must be able to do the jobwith minimal guidance from senior people.Training time is precious because the team can-not afford the absence of staff for an extendedtime. Specialized training is offered when thework on the asset dictates, not when a trainingdepartment schedules it.

This targeted management style createsadditional pressures for training. Because a multi-disciplinary team manages an asset, membersare expected to have a greater understanding ofthe skills and expertise applied by their col-leagues. Today, geologists must understanddrilling concerns, and engineers must know howseismic lines are interpreted. The team may facerisks—in project economics, reservoir integrityor safety—with higher potential for errorscaused by lack of training. Despite these newpressures on employee training, asset-basedorganizations view training departments asexpensive overhead.

During the period from 1987 to 1999, the 25largest oil and gas companies reduced their over-all employment levels by an average of 5.2% peryear (above).2 This has impacted the age distribu-tion of oil industry professionals. Deferred hiringhas resulted in fewer young employees, and asthe aging population retires, a “talent gap” willopen that may be difficult to fill.

The cyclic nature of the oil and gas businesshas had a direct effect on training departments.During periods of high crude-oil prices, compa-nies were more likely to send technical staff fortraining. As prices dropped, companies focusedon cost cutting. Within training programs, cancel-lations increased and enrollment fell.

In response to recent higher oil prices, theindustry might turn to the skilled labor pool termi-nated during the latest downturn. However, manyof those terminated defected to other industriesor retired permanently. Companies might make upthe shortfall by cross-training or retraining workersnot originally educated in petroleum-related areas,increasing costs for recruitment and training.3 Thealready lean asset-based budget structure willhave to absorb these costs.

Training Takes a New PathRecognizing this training gap, large multinationalservice companies could step into the breach toprovide industry training as another outsourcedservice. They have the breadth and depth ofexpertise needed, and for years have provided in-house training for their own staffs and those ofsome oil companies. However, the current needsof the industry invite a new approach with abroader charter.

Four partners—three major petroleum-oriented universities and Schlumberger—havecreated a limited liability company called NExT,

> Employee count for the 25 largest oil and gas companies. The number of employees in the largest companies declined by an average of 5.2% per year in the period 1987 to 1999.(Adapted from Smith and Fan, reference 2.)

2. Smith AL and Fan AC: “Downsizing’s Downside: EnergyIndustry Facing Severe Personnel Crunch,” in HeroldIndustry Studies, Special Reports and Analyses. Stamford,Connecticut, USA: John S. Herold, Inc., June 1, 2000.

3. “The Lay-Off Legacy,” Oil & Gas Journal 98, no. 25 (June 19, 2000): 19.

1987500

600

Empl

oyee

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hous

ands

Year

700

800

900

1000

1100

1200

1300

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

the Network of Excellence in Training consortium(right).4 Texas A&M University, College Station,USA, the University of Oklahoma, Norman andTulsa, USA, and Heriot-Watt University,Edinburgh, Scotland, combine their academicexcellence and close links with industry with theoperational experience of Schlumberger profes-sionals to provide NExT with an extraordinarywealth of expertise.

Texas A&M has the largest petroleum engi-neering and geoscience department in the USAand is ranked first in academic excellence. TheMewbourne School of Petroleum and GeologicalEngineering at University of Oklahoma, founded in1927, also has one of the most highly rated studyprograms in the USA.5 Heriot-Watt Universityoffers the largest and strongest concentration ofprofessional education and academic research inpetroleum engineering in Europe, and is a worldleader in distance learning.

All three research universities give NExTaccess to the latest developments in petroleum-related technology. The NExT program representsa broad spectrum of the industry—no single view-point dominates the classroom. This is importantbecause most companies do not want to be undulyinfluenced by a competitor’s philosophy.

For Schlumberger, creation of this consortiumhelps satisfy a wide variety of requests by assetowners. In some cases, the reduction of an oilcompany’s internal training group made it diffi-cult to satisfy existing contracts in countries witha national oil company, where license conces-sions can include provisions for training of thelocal staff. Companies caught between reducedtraining capabilities and contractual obligationsusually have turned to external training.

With training for the oil and gas industry at aturning point, NExT sought a new value model fortraining (below). Because course subject matterremains the essential core of technical training,NExT has instituted processes to assure the high-est standard for course content, building on theinternal systems of the partner universities. NExTalso has changed the way some course work isstructured and how training is delivered.

Effective knowledge transfer and skills develop-ment are essential to incorporate the subjectmatter into the daily actions of the trainee. Acompetence-assurance process can be estab-lished to show that newly learned skills andbehaviors are enacted.

For some students, the course may be justone part of a program leading to certification oraccreditation. NExT does not award degrees, but,in some cases, NExT courses could contribute toone, provided the awarding university’s stan-dards and conditions are met.

One goal for NExT is to establish closer collab-oration and cooperation between the industry anduniversities to improve the effectiveness ofpetroleum industry training. NExT aims to modern-ize training methods and create strategic partner-ships to facilitate quality global technologytransfer. For trainees, NExT provides an opportunityto broaden their knowledge base for career devel-opment. All four NExT partners will underwrite acertificate indicating completion of training.

NExT management is assisted by two types ofboards representing each of the four partners andthe petroleum industry: program-specific peerreview boards and an industrial advisory board.Each peer review board works with one of the four

34 Oilfield Review

> NExT value model. The NExT model involves an industrial advisory boardsupervising the entire program and peer review boards for each of four disciplines. The boards work with the curriculum directors to maintain qualityin the technical subject matter, improving knowledge transfer and skillsdevelopment, competence assurance and certification.

> The Network of Excellence in Training group. NExT is a limited liability company formed bySchlumberger, Texas A&M University, University of Oklahoma and Heriot-Watt University.

Texas A&M UniversityReservoir EngineeringCenter of Excellence

The University of OklahomaWell Engineering and Petrophysics

Center of Excellence

Heriot-Watt UniversityDistance Learning and PetroleumEngineering Center of Excellence

Knowledge

transfer

Techni

calsub

ject m

atter

Skillsdevelopment Competence

assurance

Cert i f i cati on

a ccredi tation

review board

Peer

advisory boardIndustrial

director

Curriculum

NExTValue Model

Summer 2000 35

program-area curriculum directors to assurecourses are up to date and conform to the highestindustry and educational standards. Instructorsmust be competent, both in technical qualifica-tions within their discipline and in teaching ability.

The four program areas and the school direct-ing them are as follows:• Reservoir Engineering at Texas A&M University• Well Engineering and Operations at University

of Oklahoma, Norman campus• Petrophysics and Geosciences at University of

Oklahoma, Tulsa campus • Distance Learning and Petroleum Engineering

at Heriot-Watt University.The industrial advisory board oversees the

entire program. This board makes sure NExToffers the right types of programs to satisfy currentand future industry needs. General managers,directors and presidents of oil companies serveon this board, providing NExT with a broadoverview of industry trends (above right).

Joining Courses The first step for NExT was developing the pro-gram areas, arranged by technical discipline. Thecurriculum directors manage the courses andinstructors through these program areas. Coursesare included in the NExT curriculum only afterthorough examination by the peer review boards.Each board selects courses within its disciplinethat will be included in the NExT program. Boardmembers from each of the universities andSchlumberger, with an industry representative onan ad-hoc basis, ensure that the courses in thecurriculum meet university academic and industrycommercial standards. This rigorous reviewensures a high level of instructor competenceand quality course material.

The curriculum consists of more than 90courses, many on advanced topics in geo-sciences, petroleum engineering and well engi-neering (right). All four NExT partners areinvolved in course design, and continually striveto broaden and deepen the scope of offerings.The peer review boards are responsible forensuring that the offerings from the three univer-sities and Schlumberger are properly integrated.

A course catalog is only the first step in meet-ing the needs of industry. A company, or an assetteam within a company, can design its own train-ing program by selecting specific courses from thecatalog. NExT works to incorporate company data,

problems and software into a workshop associ-ated with training classes where appropriate.Discussing problems already encountered by thestudent brings new insights directly and immedi-ately into the company. NExT can also designcomprehensive solutions to training needs. Forexample, after mergers or formation of jointventures, NExT can examine the skill sets of thecombined entities and set forth a program to fillgaps in training. Such programs can be held at aNExT training site or at the company’s location.

NExT operates with a “virtual faculty.”Instructors are subject-matter experts from thepartnering universities, Schlumberger or consult-ing-industry professionals. The peer reviewboard examines the NExT faculty as closely as itdoes course materials.

The NExT education features severaladvanced concepts in training. Well engineeringand wellsite operations are month-long courseswith an added feature to improve technology

retention. Students are assigned an experiencedindustry mentor who stays with them during theirtraining, establishing a relationship that contin-ues over the following five months. The mentorassures that concepts learned become a part ofthe student’s work ethic.

Another special feature, derived from theSchlumberger Integrated Project Management(IPM) group, is competence assurance. Thecomplete operational needs of a specific pro-ject are examined, and staff are tested andtrained accordingly.

A third major program was transferred to theNExT curriculum from BP. The heritage AmocoPetrophysics Training, now called the NExTSubsurface Integration Program, NSIP, is anintensive 11-month program that includes majorproject work for the student’s asset team.

> NExT industrial advisory board. Overseeing the NExT program is a groupof managers, directors and presidents of oil companies.

> The NExT curriculum. Courses cover many disciplines of geoscience,well engineering and petroleum engineering.

4. Schlumberger owns 50% of NExT, with the other 50%shared by Texas A&M University, University of Oklahomaand Heriot-Watt University.

5. “Specialties: Graduate Programs Ranked Best byEngineering School Deans,” US News and World Report128, no. 14 (April 10, 2000): 90.

These concepts—ongoing mentoring, compe-tence assurance and major project work—will beincorporated in other areas of NExT training. Theprogram also will offer additional, upgraded dis-tance learning concepts, comprising computer-based training, streaming media, and video andaudio conferencing.

Mentors Guide the WayThe NExT program uses an ancient method ofteaching and coaching updated into 21st centurytechnology—mentoring.6 Mentoring is a keyaspect of the NExT plan for the future. It willplay a role in local as well as distance learning,providing greater depth to the material. TheNExT curriculum offers two courses that serveas a pilot for mentoring.

The Well Engineering and Construction classis designed for recent college graduates with upto two years of work experience. Nongraduateswith significant field experience who are planningto transfer to this discipline also may participate.The course introduces new concepts in well con-struction using interactive training to design,execute and evaluate a drilling program.Students learn to use the Drilling Systems, Ltd.,DTS Drilling Training System software suite,including the DOT Drilling Operations Trainer,DMT Drilling Management Trainer and MUDSIMMud Treatment Simulator packages. The syllabusincludes conceptual well design, detailed wellplanning and development of a well program.Actual field examples are discussed, and studentsare encouraged to share their own examples ofproblems or successes.

The more advanced Wellsite Operations classfocuses on engineering techniques for maximizingthe return on investment of operational dollars.Students should have at least two years of fieldexperience as wellsite supervisors. Some mathe-matical and equipment knowledge is required.

Since class members have substantial field expe-rience, the problems they offer for discussion canbe quite complex. The program is comprehensiveand covers drillstring design, directional drilling,casing design, wellbore stability, logging,cementing and drilling fluids, completions and for-mation damage. Students learn managementtechniques to deal with personnel and costs;

quality, health, safety and environment issues;and avoidance of nonproductive time.

Each course comprises prestudy material, onemonth in class and five months of practicum,involving supervised work in the field or office(left). Both courses can be taken in sequence fora full-year training program that provides theattendee with an understanding of the well fromconceptual design to abandonment. NExT facultyoffers the program at several locations world-wide, and its modular design allows a companyflexibility in selecting content.

The mentoring and follow-up task book distin-guish NExT courses from other industry offerings.A practicing professional, expert in the discipline,attends the classroom instruction with the stu-dents and during this period has the opportunityto become acquainted with each student. Afterthe in-class portion, the mentor visits studentsand their supervisors to discuss the follow-uptasks that are expected during the subsequentfive months. This is codified in a task book of more

36 Oilfield Review

> A mix of classroom and on-the-job training. Mentors work withstudents during a one-month classand then for an additional fivemonths supervising their completionof assigned tasks while on the job.This mentoring period ensures thatthe material learned is rapidlyapplied in operations.

>Wellsite Operations practicum. Shown are a sampling of the 40 tasks givento students to perform during the five-month practicum. They must completeat least 30 of them.

Prestudycourse

Officialcertification

Courses in wellengineering andconstruction or

wellsite operations

One monthin classroom

Oil company

Application oftechniques learned

Five-monthpracticum

Mentoring

Selected Wellsite Operations Tasks

8. Directional drilling

9. Formation damage and completion considerations

9.1 Identify potential formation damage mechanisms associated with your particular drilling and completion process.

10. Safety and environmental considerations

8.1.1. Evaluate technical assurance of the directional well plan.8.1.2. Look at a well plan to determine if the path and trajectory are calculated properly.8.1.3. Identify potential problems associated with the designed plan.8.1.4. Take preventive or corrective actions if required.

10.2 Describe the local laws and regulations pertaining to waste management.

9.1.1. Review a drilling program and completion design and describe the inflow system and formation characteristics.9.1.2. Identify potential problems associated with the drilling and completion program and design.9.1.3. Substantiate, with documentation, the programmed process or recommend potential preventive or corrective actions.

10.2.1. Describe local laws and regulations pertaining to waste management, and identify the rig’s waste segregation system and disposal plan, incuding the provision of separate skips or containers for general, metal, oil and toxic wastes.10.2.2. Identify the disposal plan for the waste and describe the downstream activities such as methods of treating the waste when it is onshore or offshore as logistics can be a problem.

>

Summer 2000 37

than 40 items related to the technical subjectmatter. At least 30 of these tasks must be suc-cessfully completed during the practicum period,giving the student an immediate, supervisedopportunity to apply new learning. Performing thetask impresses it more strongly in memory thanonly learning it in class.

These tasks are not theoretical exercises.Rather, they are actual, day-to-day duties thetrainee will be expected to know how to performafter completing the course (previous page, bottom). The mentor works with the companysupervisor to make sure that the student has anopportunity to complete these tasks during thefive months. If the student’s work team is not per-forming relevant work, the mentor helps arrangea temporary transfer to a team where thoseexperiences are available. The student has a CD-ROM self-study guide, the company supervisorand the mentor for resources.

A student’s progress is kept updated on aWeb site with restricted keyword access. Thementor tracks progress and intervenes if the stu-dent is not completing tasks in a timely manner.At the end of the practicum period, the mentoradministers the certification examination at thestudent’s work location. Upon successful comple-tion of the course requirements, NExT certifiesthat the student has acquired the knowledge,skills and competences taught in the class.

The program is a major investment—the stu-dent is away from the office for a month and mustbe involved in specified tasks for five more—butprovides substantial return to the company. Thedirect benefit is a more knowledgeable andskilled employee, certified to perform more tasksthan previously. The five-month practicum periodhelps engrain classroom information in thetrainee’s work habits. Thus, the employee’sincreased responsibilities translate into increasedcompetence at the wellsite, improved safety anddecreased risk. This satisfies a major drive formanagement, improving return on investment inthe asset.

Leading Competence Assurance—Hibernia One true test of training and preparedness isreaction to disaster. When a tragedy involves aman-made structure, such as a bridge collapse, acrash of a commercial airliner, or massive loss oflife on an offshore platform, there is a strongimpulse to determine why, what went wrong,and how recurrences can be prevented. Lack oftraining has been a key factor in several disastersin the oil and gas industry.

The sinking of the Ocean Ranger platform andloss of 84 crew members in a severe storm off-shore Newfoundland, Canada, in 1982, ledauthorities to examine operating practices for off-shore oil operations in Canadian waters. Aninquiry found platform design deficiencies andinadequate training of the staff.7 This disaster andothers, such as the Piper Alpha explosion offshoreUK and loss of the Alexander Kielland accom-modation platform during a storm in Norwegianwaters, led to major regulatory changes and newindustry-wide safety programs.

As more oilfield companiesjoin alliances or merge, there is agrowing need to ensure an ade-quate level of competence for thecombined staffs. To meet thisneed, NExT has developed a pro-gram for competence assessmentand assurance in complex operat-ing environments like offshoreplatforms. The foundation for thisinitiative is a program developedby the IPM group in conjunctionwith Hibernia Management andDevelopment Co. Ltd., for an inte-grated well services alliance forthe Hibernia field, located off theeastern coast of Newfoundland.

The Hibernia alliance partnersand contractors outlined all jobsfor offshore positions, definingmore than 60 roles ranging from

accommodation coordinator to wellsite geologist(below). After breaking every task down into itscomponent parts, the group identified the productof that task, or the result of successful comple-tion. They codified the skills and competencesnecessary to achieve that result. With this com-plete map for safe and effective operation inhand, the alliance partners could evaluate theplatform crew.

This systematic and auditable processassesses candidates against a set, baseline stan-dard and not against one another. An effectiveassessment has three characteristics: validity—the evidence collected must be appropriate to thetask; reliability—the process must be consistentand fair to all employees; and practicability—the process shouldn’t be cumbersome to perform.

The competence-assurance process helps eachemployee achieve a level of ‘core’ competence insafety and business-critical areas associated withplatform operations. Every Hibernia employee

> Schlumberger personnel preparing for a wireline loggingoperation. Every task on the Hibernia platform is codified in thecompetence-assurance program.

6. The original Mentor was the man Odysseus chargedwith the responsibility of raising his son and teachinghim the ways of leadership. Mentor carried out this taskwhile Odysseus was on his adventure.

7. Embach, reference 1.

yes

no

yes

no

StartReceive portfolio

and processorientation

Develop work plan andschedule and identify

training needs

Begin competenceunit

Define additionalevidence required

to show competence

Acquire knowledgeand experience in

specific competence

Developimprovement plan

Feedbacktraining requirements

Assesscandidate forcompetence

Verify processand evidence

Update records Go to next unit

End

Competence-Assurance Processreceives a copy of a manual outlining the process(right). The assessment determines whether theindividual is competent to perform the tasks. If not,the employee may be given more supervision oradditional training to achieve competence.

At Hibernia, assessment is divided into units,with the first unit focusing on basic competencerequired for all platform roles and the second unitdealing with critical safety, health and environ-ment roles and basic business behaviors. Thethird section deals with the specific role of theemployee, and the final part covers tasks criticalto the current work assignment.

In the assessment, the employee must pre-sent evidence that is valid, authentic, current andsufficient. The candidate must demonstrate anability to effectively carry out the skill to this stan-dard, using knowledge, experience and properattitude to perform work safely and effectively.

Competence can be established severalways. The candidate could show historical evi-dence from work experience or documentationof training. An assessor or other appropriateperson can witness the candidate performingthe specific task, or simulating it in situationswhen it is not possible to actually do it for safetyor other reasons. In some cases, written answersto items on the assessment form would be accept-able. In all cases, the basis for acceptance mustbe documented.

Verifiers provide a quality check, examiningall assessment records and providing feedback tothe candidate. The verifier can request additionalevidence of competence if the documentationpresented is inadequate.

The assessment process has several benefits.Most important is increased safety on the plat-form because of demonstrated competence ofpersonnel. It also helps to identify training anddevelopment opportunities for an employee. Thetraining may qualify the employee for positionsof more responsibility, so it is helpful for careerdevelopment. The process helps in evaluatingvarious job tasks, which could lead to improve-ments in the way tasks are performed.

Following the process helps to ensure thatability is not confused with attempt—theamount of effort should not influence the assess-ment decision. Because competence must bedemonstrated to meet a baseline standard, biashas been removed from the assessment process.

Inclusion of the competence-assurance pro-gram in NExT training is natural. The unique com-bination of NExT industrial experience andacademic rigor will be used to define a wide rangeof tasks within the industry. In some cases, training

38 Oilfield Review

> Assuring competence. The processdesigned for Hibernia ensures that thecandidate for a position has the skillsand competences required.

Time

Technical assurance

Training

Project activity

Project management

Obje

ctiv

es

Deliv

erab

les

> Time management in NExT Subsurface Integration Program (NSIP). Throughout NSIP training,students work on their projects and use them as class examples.

needs can be met through NExT courses. The NExTcertification process will be able to provide appro-priate documentation of proof of competence.

Progress in Subsurface IntegrationMost NExT courses are brief, lasting a few days toa few weeks. At the extreme in length and com-plexity is the NExT Subsurface Integration Program(NSIP). This 11-month course teaches the applica-tion and integration of multidisciplinary subsurfacetechnologies. Each participant brings a businessproblem to solve that will deliver significant eco-nomic impact for the sponsoring asset team.Inclusion of the business problem, which could bein any stage of an asset’s life cycle, is key to thisprogram—the training is immediately applied toachieve the business goals for the asset.

Course work focuses on reservoir geology,geophysics, reservoir engineering and formationevaluation, but offers exposure to a wider rangeof exploration and production technologies asneeded. Participants are taught to integratedisciplines and solve problems to improve returnon the asset.

NSIP has as its foundation the heritage AmocoPetrophysics Training school. From the program’sinception in 1972 though 1999, 319 participantsgraduated, including 186 geoscientists and 133engineers. In that period, projects added over$500 million in value for their assets. AfterAmoco merged with BP, the new company trans-ferred this petrophysics training to NExT. Two ofthe 12 to 16 openings each year are reserved forBP employees.

Summer 2000 39

The program has two main thrusts—training,which is concentrated within the first half of thecourse, and project activity (previous page, bottom). While project activity occurs throughoutthe course, it becomes most intense, almost fulltime, during the final third of the course.

Each participant sets specific objectives forindividual project work. These objectives shouldbe clear before the participant arrives at theUniversity of Oklahoma in Tulsa to start work.The NSIP program team leaders become familiarwith each of the dozen or more business prob-lems during discussions with the asset teams asthe projects are set up. Normally, they do a quick-look scoping study to be sure the problem isappropriate for NSIP and that adequate informa-tion and a comprehensive data set can beobtained before or during the class period tosolve it (see “Roadmap for Project Solution,” nextpage). Then they work to ensure that all informa-tion relevant to the project is available when thetraining period begins in November. If the assetteam has high-priority needs, the NSIP programteam leaders help find ways to satisfy thoseneeds as soon as possible.

Over 65 linked courses of half- to five-dayduration are integrated with project work (aboveright). The course work starts with a fundamentalmethod of subsurface integration. Additionalmodules include applied lithofacies analysis,rock and pore types and flow units; analysis ofcapillarity, saturation, permeability and relativepermeability; and integration of core analysiswith wellbore, surface and production data.

Participants learn deterministic and proba-bilistic formation-evaluation processes andmethods and how to integrate wellbore-pressureresponses into their interpretations. They alsolearn to combine seismic attributes with core, logand production data and to use seismic responsesfor reservoir characterization and prediction.Additional course work comprises integratedreservoir engineering, performance analysisand prediction, including probabilistic andstochastic methods, and applied reservoir simu-lation and management.

Throughout the program, participants practiceproject management and documentation method-ologies, and they learn computer graphics andvisualization. Since many graduates anticipatemoving to higher positions after returning to theirasset team, classes in leadership practices andcommunication skills are included.

Most projects demand considerable labora-tory work. Participants learn how analyses areperformed and how to check results for quality—

technical assurance is required for all projects.Participants also learn to document their projectfor delivery back to the asset team.

The participant maintains close contact withthe sponsoring asset team throughout the class(below). Every month, mentors approve aprogress report for each participant, which isposted on a Web site accessible by the assetteam. This describes the current findings andstatus of the project.

Upon completion of the NSIP program, aparticipant returns to the asset team with a deepand broad understanding of petrophysics. Thebusiness problem has undergone intensescrutiny, with assistance from a wide range ofindustry experts and mentors. The asset teamhas value-based business recommendations toact on, complete with comprehensive technicaldocumentation that will be useful for years.

NSIP takes advantage of the universityinvolvement in NExT training, drawing on thecombined faculty for expertise. Some professorsteach NSIP modules, while others lead work-shops and mentor participants. Access to thislarge pool of expertise within the NExT commu-nity is a great boon for project work. The benefitcan work both ways, as problems encounteredthrough class projects can fuel research endeavorsat the universities.

NExT management is evaluating further pos-sibilities for the NSIP program, including usingsome of the modules for stand-alone shortcourses. Some companies in the industry areinterested in mini-NSIP programs, such as thePetrophysical Integration Process Model, or PIPM,training for quick-look evaluations.

Time Distribution

Project integrationand documentation

20%

Project analysis30%

Geology7%

Geophysics7%

Data analysisand computing

7%

Petrophysics integrationand field trips

12%

Engineering10%

Formationevaluation

7%

> Course activities in NSIP. Overall, half the time is spent onproject analysis, integration and documentation.

> At the center of things. Studentsremain in contact with their assetteam, keeping up-to-date on the problems and activities in the field.Meanwhile, they learn from theirinstructors and mentors to integratedata and analysis into the course work.

Assetteam

Instructorsand mentors

Coursework

Fielddata

Laboratoryanalysis

Problems andresults

Methods andtechnologies

40 Oilfield Review

NSIP teaches the Petrophysical IntegrationProcess Model, or PIPM, methodology to examinea wide variety of reservoir issues (below).Petrophysics is viewed as the process of inte-grating multiple disciplines to characterizerock, pore and fluid systems. The first step isdetermining the units of study—the rock types.Relevant information comes from petrology,mineralogy, diagenesis and porosity. Theseimpact capillarity and relative permeability, sorock typing must be consistent in these measure-ments. Lithofacies are mapped to rock types also.

Based on a consistent rock typing, log modelscan be created to determine net pay and otherfactors obtained through formation evaluation,

such as pressure profiles. The process uses a Lorenz plot as a model of flow units to indicatestorage and flow capacity.1 With this in hand,vertical flow profiles of these parameters canbe obtained, indicating where hydrocarbons arein the strata and whether they will flow.

Then, PIPM moves up in scale, focusing onseismic models, type-curve analysis and wellperformance to fine-tune the interpretation.Reservoir models provide tools for determiningareal distribution of pay, which may lead toinformation about bypassed hydrocarbons forimproved recovery. PIPM provides understandingand, more importantly, diagnostic tools forreservoir management.

NExT mentors use a modified version of PIPMfor a quick look at potential projects before theNSIP class program even begins. This evaluationcan be done in a day or two for each project. Itdoes not solve the problem, but provides usefulinformation about the approach that should betaken and points out the data that will berequired to solve the business problem.

Roadmap for Project Solution

1. Gunter GW, Finneran JM, Hartmann DJ and Miller JD:“Early Determination of Reservoir Flow Units Using anIntegrated Petrophysical Method,” paper SPE 38679,presented at the SPE Annual Technical Conference andExhibition, San Antonio, Texas, USA, October 5-8, 1997.

>A systematic approach to petrophysics problems. The Petrophysical Integration Process Model, or PIPM, provides a methodology to evaluate a reservoir. Cores provide data on the rock and pore types, which are used to characterize capillarity and flow. Addition of log and well data determines flow units and storage andflow capacity. With this basic picture of the reservoir, seismic data, well data and reservoir flow simulation provide a model of the reservoir. The ultimate goal isimproved reservoir management.

Facies C

Facies B

Facies A

Depositionalarchitecture

Lithofacies

Petrology, mineralogy,diagenesis, porosity

A B C

Rock types

Porosity, permeability,pore-size distribution

A

BCPe

rmea

bilit

y, k

Core porosity, Φ

Poresizes

Recovery factor,fractional flow

Water saturation, Sw

Pore sizes, saturations,fluid-column heights

Saturation

Heig

ht, H

Capi

llary

pre

ssur

e, P

c

Irred

ucib

lew

ater

Resi

dual

0il

AB

C

Flow units, storageand flow capacity

Modified Lorenz

Cumulative ΦH

Cum

ulat

ive

kH

AB

C

Storagecapacity

Flowcapacity

Deliveryspeed

%ΦH %kH k/Φ(1-Sw)

Vertical flow profiles

Dept

h

C

B

A

Lithology, porosity,resistivity

Log models

Neutron

Dens

ity

Sandstone

Limesto

ne

Dolomite

Well and fieldperformance

Reservoir management

Oil

GasWater

Porosity, permeability,pay distribution

Reservoir models

EOR sweep,bypassed pay

Pay maps Performance maps

Performancesimulation

Reservoir simulator

Time

Rate

Permeability,reservoir limits

Pressure transient analysis

Time

Pres

sure

Volume decline,permeability

Fetkovich type curves

Time

Lithology, porosity,fluid saturation, net pay

Formation evaluation

C

B

A

Fluid density,contacts

Free water

Pressures

Pressure

Dept

h

Amplitudes, AVO,coherency, Vp/Vs

Seismic models

3D volume

Horizon slices

Attribute maps

Pore types Relative permeabilityCapillarity

Petrophysical Integration Process Model

Summer 2000 41

Learning at a DistanceThe three initiatives described above—mentoring,competence assurance and training integratedwith intense project work—share several traits.First is an excellence in content, assured by rig-orous supervision from the peer review boardsassociated with each of the four disciplines andthe NExT industrial advisory board. They allincorporate follow-up to assure that knowledgegained can be applied successfully on the job. Forexample, the Well Engineering and Constructionand Wellsite Operations courses both have desig-nated mentors to oversee the practicum period,and within NSIP full-time staff and the virtualfaculty provide direction throughout the course.The competence-assurance program has asses-sors who observe the employee directly to besure tasks are performed properly.

Both the well programs and the competence-assurance process involve objective learning—a student must demonstrate competence in atopic to move ahead to subsequent sections. Justattending a class does not certify a student, nordoes expending a great effort without actuallylearning the material. Certification is based onobjective criteria and evidence that goals havebeen accomplished or knowledge obtained.

One goal for NExT is to incorporate moredistance-learning concepts. Tools such as directstreaming video are now available to supplementvideo conferencing, chat-room type interactions,

on-line roundtables and recorded lectures ontape or CD-ROM. The University of Oklahomauses a broadband fiber-optic network inOklahoma to provide interactive courses at a dis-tance. NExT plans to convert many standardclassroom lectures into interactive computer-based training (CBT), using distance-learningtools in conjunction with exercises on the com-puter. This could be done in a classroom situationor with students in remote locations.

Objective learning is an important aspect ofthe NExT program’s plans for CBT. Any coursetranslated to computer must be interactive. Texton the screen, or translating a lecturer’s notes toan on-screen slide presentation, is not sufficientto show the student has learned the material.Problem sets will be incorporated in the coursework to engage the student more directly. Inmany cases, answers to workshop exercises willnot have one “right” or one “wrong” choice.

There will be decision trees within the prob-lem, allowing the student to select among a seriesof actions from project initiation to conclusion. Thescenarios and decision-tree results should be asclose to actual situations as possible. Once thestudent has “solved” the problem, the decisiontree shows the path of choices taken and the prac-tical and economic consequences of the choicesmade (above). One choice taken may cost an extraday of rig time, while another might save on costof material but have a higher safety risk.

While the course material may be on thecomputer, the student will still have access to asubject matter expert, either in class or directly

accessible on-line. The expert can answer ques-tions, monitor class progress on course work,decide when everyone is ready to do problemsets, and conduct workshops on special topics.

Course content will be updated rapidly astechnology progresses, incorporating new inter-pretation methods, new tools or new processesquickly and easily. To make quick revisions, infor-mation within the course can be divided intosmall, self-contained units—nuggets of infor-mation. An example is the Schlumberger OilfieldGlossary in which each term is a nugget.8

Continuing EducationThe three partner universities in NExT are leadersin petroleum engineering education; indepen-dently each has an outstanding reputation. It isfair to wonder what drives them to work togetherand partner with an industry service company.

Universities exist to educate. With more com-petition for attention and information brought bythe Internet, universities are examining theirbrick-and-mortar campuses with an eye toward arevolution in interactivity.9 NExT provides aframework for testing ideas that could be carriedover to a university curriculum, and vice versa.Some of the CBT courses and ideas can be, andin some cases already have been, taken to theuniversity setting, either for the traditional on-campus student or for the distance learner pursu-ing a course of continuing education.

Another benefit for the universities is widerexposure, since NExT classes are offeredthroughout the world. This works both ways,with plans under way to use NExT for the short-course portfolio at the Abu Dhabi PetroleumInstitute where 14 Scottish universities, includingHeriot-Watt, provide curriculum.

Universities are also places of research. NExTcourses benefit from university advances with thepotential for rapid dissemination of new discov-eries to professionals who can use the information.The link can feed back to university research inexposing additional sources of both funding andinspiration. Students attending classes can bringnew problems and ideas to the faculty.

NExT is discussing with the partner universityadministrations and boards ways to incorporateNExT classes into degree programs. An intriguingidea for the future is accepting completion ofNSIP as at least partially fulfilling the require-ment for a Master’s degree. Other NExT coursescould be accepted toward satisfying advanceddegree requirements.

It is uncertain what university or industrytraining will look like ten years from now, but clearly the NExT program will help define that look. —MAA

More rigtime

Lower costHigher risk

Problem Solutionchosen

Secondchoice

Firstchoice

Thirdchoice

Fourthchoice

> Decisions and their consequences. Problems can be set up as decision trees in a computer-basedtraining program. The student makes a choice, taking a specific path in the tree. Once a solution ischosen, the consequences of each decision—for example, accepting a lower cost with a higher riskin the first choice here—can be reviewed.

8. http://glossary.connect.slb.com9. Ray R: “Oil, Gas Companies Discover E-Commerce

Opportunities,” Tulsa World, August 19, 2000.