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Countering Industry Trends with Smart Drilling. 2005 POSC Annual Meeting November 2, 2005 James W Bridges. Overview. Brief review of Industry Trends Countering Trends requires change Define “Smart Drilling” Three technologies that can make a difference Summary and conclusions.

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Countering industry trends with smart drilling

Countering Industry Trends with Smart Drilling

2005 POSC Annual Meeting

November 2, 2005

James W Bridges


Overview
Overview

  • Brief review of Industry Trends

  • Countering Trends requires change

  • Define “Smart Drilling”

  • Three technologies that can make a difference

  • Summary and conclusions


Industry trends energy demand is growing

70 MBOE/Day production gap by 2010

2.2% Annual oil demand increase by 2020

60% increase in total energy consumption by 2020

Source: Shell Technology Ventures

Industry Trends - Energy Demand is Growing


Industry trends new discoveries are harder to find

Size of new fields continues to decline

This results in:

Shorter average field life

Less time to recover investment

Source: Shell Technology Ventures

Industry Trends - New Discoveries Are Harder to Find


There are no easy wells anymore
There are no easy wells anymore!

Photo courtesy of Texas Energy Museum


Industry trends r d investments have steadily declined
Industry Trends - R&D Investments Have Steadily Declined

Source: Herolds, Operator 10Ks and Annual Reports



Downsizing has drained industry experience
Downsizing Has Drained Industry Experience Industries

Source: JSH Analysis, Shell


Countering the trends big picture
Countering the Trends – Big Picture Industries

  • Change Attitudes, Emphasis and Spending on Technology


Change attitudes
Change Attitudes Industries

  • Mudman  Drillworks Diagnose

    • Baroid - $4.0 million

    • Joint Industry Project - $1.0 million

    • Knowledge from top drilling fluids experts in industry

  • Technical Success

  • Commercial Failure

  • Reaction to Demonstration – “Hey, That’s what I do for a living – get out of here!”


Smart drilling
Smart Drilling Industries

  • Smart Drilling = Using Technology to Reduce Non Productive Time (NPT) and Increase Safety

  • NPT Costs the industry $10+ B/year!


Countering the trends smart drilling
Countering the Trends – Smart Drilling Industries

Three Technologies That Can Make a Difference:

  • Centralized monitoring of drilling operations

  • Convert Data to Knowledge with Specialized Databases

  • Preserve knowledge with rule based expert systems


Centralized monitoring of drilling operations
Centralized monitoring of drilling operations Industries

  • WITSML is the key to make it work

  • Monitor all wells being drilled – not just the high dollar, high visibility ones


Centralized monitoring of drilling operations1
Centralized monitoring of drilling operations Industries

Real-time monitoring centers can be used for surveillance of multiple wells that are being drilled anywhere in the world to reduce costly problems and improve drilling operations.


Convert data to knowledge with specialized databases
Convert Data to Knowledge with Specialized Databases Industries

  • Pore Pressure specialist at a major oil company

  • Analysis of several hundred wells

  • Results stored on server, hard drive, CDs and floppies

  • Corporate investment of several million $

  • Retrieval and data management based on memory


Select wells where total TVD is greater than or equal to 12000 ft and LOT equivalent mud weight is greater than or equal to 15.5 ppg and where the well penetrated salt


Select wells where total TVD is greater than or equal to 20,000 ft and has the marker named Tex X and has a maximum pore pressure greater than or equal to 10,000 psi


Preserve knowledge with rule based expert systems
Preserve knowledge with rule based expert systems 20,000 ft and has the marker named Tex X and has a maximum pore pressure greater than or equal to 10,000 psi

  • Drillworks Diagnose lives again!

  • Rule based expert systems have their place

  • Heuristic knowledge integral to several applications

    • Medical diagnosis

    • Credit underwriting

    • Scheduling applications

    • Smart manuals

    • Safety procedures


Summary and conclusions
Summary and Conclusions 20,000 ft and has the marker named Tex X and has a maximum pore pressure greater than or equal to 10,000 psi

  • Trends in our industry are disturbing

  • Big picture – a radical change in attitudes, emphasis and spending on technology is required

  • Smart Drilling – reduce cost with technology

  • Smart Drilling – centralized monitoring of drilling (WITSML)

  • Smart Drilling – convert data to knowledge using specialized databases

  • Smart Drilling – Utilize rule based expert systems for appropriate applications

  • Status Quo = Trouble Ahead!


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