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PPDM Supports Business Process Improvement

PPDM Supports Business Process Improvement. Exploding data volumes threaten to overwhelm business process improvements. 8 th International Conference on Petroleum Data Integration, E-Commerce and Data Management. Yogi Schulz Biography. Management Consultants.

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PPDM Supports Business Process Improvement

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  1. PPDM SupportsBusiness Process Improvement Exploding data volumes threaten to overwhelm business process improvements 8th International Conference on Petroleum Data Integration, E-Commerce and Data Management

  2. Yogi SchulzBiography Management Consultants • President of Corvelle Management Consultants • Information technology related management consulting • Project management and systems development • Computing Canada & Calgary Herald columnist • PPDM Association board member • Industry presenter: • Project World - 4 years • CIPS Informatics - 7 years • PMI Information Systems SIG - 2 years • Convergence - 4 years • PPDM Association - several years

  3. Outline • What have we achieved? • Forces acting on E&P Companies • Indicators of exploding data volume • Data explosion issues • Responses to data explosion issues • Conclusions • Recommendations • Questions & Answers

  4. Improved application interoperability Database: capability availability Data: model management exchange quality Hardware: reliability price/performance Software: functionality robustness Operating system: ease-of-use data access/sharing Network: bandwidth ubiquity reliability Achieved

  5. E & P Professional’sTime Effectiveness Achieved Professional Engineering & Technical Staff Engineers & Technical Staff Looking for data 26% Useful work 50% Unproductive 5% Vacations 8% Training 4% Looking for data 60% Meetings 5% Handling data 24% Useful work 18% Source : Major petroleum firm Source : Oil & Gas Journal Fall 1991

  6. But wait - we need more!Achievements are threatened E&P Companies are facing new forces in the globaloil & gas industry

  7. Forces acting on E&P Companies here & now Data explosion • Asset Mix/Optimization • Shareholder Return • Oil & Gas Price • Technology • Workforce Demographics • Globalization • Environment Read detail as homework

  8. Indicators of exploding data volume - 1IT Analyst projections Exploding volumes of data • IDC reports storage capacity growing 36% year-over-year to 181.6 petabytes shipped during the second quarter of 2003 • Gartner Group IT infrastructure expenditure changes: • 1998 - 75% CPU, 25% storage • 2003 - 25% CPU, 75% storage Real-time survey: Who is regularly running out of disk space?

  9. Indicators of exploding data volume - 2Seismic data Exploding volumes of data

  10. Indicators of exploding data volume - 3Well log data Exploding volumes of data MB/ trip 100 DLIS 80 60 LIS 40 LIS/BIT 20 1980 1990 2000 0

  11. Eroding hard won achievements Data explosion issues • Observations: • Loss of knowledge about available data • Highly visible impact of poor data management practices • Sluggish response times • Consequences: • Frustration • Irritation • Loss of productivity • Elongated cycle times

  12. Solutions exist in all components of the work environment Data Business Process Software Computing Infrastructure

  13. Actions to tame the data explosionComputing Infrastructure Network: WAN bandwidth - fiber LAN bandwidth - gigabit Ethernet architect with redundant routing sub-net load balance Database: performance optimization smart disk link external and internal datastores Hardware: SAN/NAS large memory fail-over

  14. Actions to tame the data explosionSoftware • Rationalize the application software set • Explore/exploit EAI • Set a multi-tier application architecture as the goal • Favor PPDM-compliant application software • Recognize that a single vendor strategy results in uneven application portfolio capability

  15. Actions to tame the data explosionBusiness Process Policies Practices • Confirm presence of common issues: • lack of data integration • gaps in the application portfolio • bumps in the business process • resistance to agreed business process • lapses in data quality • gaps in the computing infrastructure • Address data and software issues to improve business process • Improve process with collaboration Procedures

  16. Actions to tame the data explosionData - 1 • Data Model: • implement PPDM • contribute changes/ideas/extensions • Data Exchange: • recognize that a monolithic datastore is not achievable or necessary • utilize the XML transaction definitions • Meta Data: • build a catalog/taxonomy • publish catalog contents widely

  17. Actions to tame the data explosionData - 2 • Data Management: • implement data stewardship • reward staff for deleting unnecessary data • Data Quality: • introduce common definitions of business concepts through PPDM and PIDD • clean data to enhance integratability • implement PPDM data content

  18. Conclusions • Exploding data volumes are: • a consequence of responding to forces acting on E&P companies • undermining business process improvements • PPDM deliverables form part of the solution

  19. Recommendations • Address weaknesses in: • computing infrastructure • software • business process • data • Support relevant PPDM Association workgroups • Implement PPDM deliverables Preempt loss of achievements PChourglass

  20. Questions & Answers

  21. PPDM supportsBusiness Process Improvement Yogi Schulz • President of Corvelle Management Consultants • PPDM Association board member • Information technology related management consulting • Project management and systems development • Computing Canada & Calgary Herald columnist 1800, 250 - 6th Ave. S.W. Calgary, Alberta Canada T2P 3H7 Phone/Fax: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Management Consultants

  22. Bibliography - 1 • Change processes for efficiency • Al Escher, Hart’s E&P, June 2003, p.7 • http://www.eandpnet.com/ep/previous/0603/0603report.htm • Data integration expands E&P choices • Patrick Deneen, Kjetil Tonstad, Thomas Halland, Hart’s E&P, October 2003, p.85 • Environmental Benefits of Advanced Oil & Gas Exploration and Production Technology • http://www.fossil.energy.gov/programs/oilgas/publications/environmentalbenefits/5explor.pdf • IDC Reports Worldwide Disk Storage Market Declines in Second Quarter, But North America Shows Growth for Second Consecutive Quarter - 05 Sep 2003 • http://www.idc.com/getdoc.jhtml;jsessionid=S1G4051M0FJ02CTFA4FSFEYKMUDYUIWD?containerId=pr2003_09_04_154749 • Industry Perspectives - An IBM point-of-view • John Haslett, Upstream Petroleum Solutions Forum, 25 September 2003 • Integrating Seismic Data Processing and Visualization • http://www.pgs.com/technologynow/visualisation/dbaFile10380.html • Light on the horizon - Holographic data storage • The Economist, 31 July 2003 • http://www.economist.com/science/displaystory.cfm?story_id=1956881

  23. Bibliography - 2 • Malibu - Wellcore well life cycle • http://www.malibugroup.com/prod_wellcore_life.html • Move to real-time decisions • Don Lyle, Executive Editor, Hart’s E&P, October 2003, p.81 • Optimized Workflows for Integrated Seismic Evaluation • http://veritas-web3.veritasdgc.com/WebSite/VTechDocWeb.nsf/all/E9363F43904B2FDF87256CA5004213CD/$File/0035.pdf • Rational virtualization opens E&P eyes • Maggie Montaigne, Hart’s E&P, October 2003, p.87 • Solutions for the Energy Industry • http://www.intel.com/business/bss/industry/energy/index.htm • Well log file size estimates • Orestes Appel, GeoQuest • WellPoint - MaxWell well life cycle • http://www.wellpoint.ca/solutions/Solutions_Maxwell.htm • Work benefits from group computing • Al Escher, Hart’s E&P, July 2003, p.7 • http://www.eandpnet.com/ep/0703report.htm

  24. Asset Mix/Optimization • Description: • depletion of onshore reserves • convergence with utilities • NOC ownership of reserves • Responses: • focus on deep water/emerging basins • growth through merger • non-core asset divestiture • benchmarking focus • risk management

  25. Shareholder Return • Description: • market performance expectations • Responses: • increase returns to maintain access to capital markets • reduce costs • reduce capital requirements through outsourcing & alliances

  26. Oil & Natural Gas Price • Description: • Uncertainty/volatility • OPEC control • Responses: • hedging • risk management

  27. Technology • Description: • leverage to improve recovery • leverage to reduce cycle times/costs • Responses: • e-Business • supply chain rationalization • immersive visualization • Measurement While Drilling - MWD • remote operations • deepwater production technology • enhance seismic interpretation

  28. Workforce Demographics • Description: • aging workforce • shrinking workforce • changing demographics • Responses: • knowledge management • outsourcing • collaboration • new relationships/alliances

  29. Globalization • Description: • Asian development & expansion • Former Soviet Union development • government activism • corporate citizenship expectations • Responses: • new ventures/alliances • enhanced communication/lobbying

  30. Environment • Description: • Maritime law • Health, safety, environment expectations • disposal of inactive fields & platforms • increasing litigation • Responses: • HSE attention/investment • alternative fuels • reduced footprint field operations • more communication/lobbying

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