Operators Group For Data Quality Update IADC DEC

1. Operators Group For Data Quality Update IADC DEC September 25, 2019

2. Slide 2 OGDQ Introduction and Background • The quality of drilling measurements is increasingly important due to the following factors: • Speed of drilling operations influencing the need for prompt safety-critical decisions • Reuse of drilling data for optimization purposes and decision support tools • Increase in the number of systems passing data from one system to another • New industry needs, such as the automation of rig operations SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

3. Slide 3 OGDQ Background • Website (www.ogdq.org) • Operator participation • Anadarko, Apache, Aramco, BP, Chesapeake, Chevron, ConocoPhillips, Devon, ExxonMobil, Hess, Oasis, Oxy, Pioneer, Shell, Marubeni O&G, Total • Co-Chairs – Apache (Michael Behounek) and ConocoPhillips (Dung (Zoom) Nguyen) • Timeline • 2014 – Founded by Apache (Michael Behounek) and Chesapeake (Nathan Zenero) • Originally, OGDDQ – Operators Group for Drilling Data Quality • 2015 – Chesapeake shared rig sensor verification procedures, reviewed and updated in OGDDQ, shared openly to Operators, Rig Contractors for use • Oct – Adjusted group name to OGDQ (Operators Group for Data Quality) to cover operations from construction to servicing of oil and gas wellbores. • 2016 – Learnings continued to be shared from rig sensor verification • 2017 – Drilling Data Quality Contract Addendum completed and shared openly for use • 2018 – IADC (International Association of Drilling Contractors) group formed to discuss Data Ownership and Data Quality • 2019 – Development of API Recommended Practices for field verification of rig instrumentation; Start working data quality issues with Completions

4. Slide 4 The OGDQ Advocates: The industry has reached a point where there is a need to systematically manage data quality. The members propose a framework as a starting point and call for additional ideas. Responsibility for data quality management is best shared by the owners of systems originating measurements, systems passing data through to other systems, and the end users of the data. SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

5. The Approach – Start with 10 Key Measurements • Rotary/Top Drive Torque • Joint Makeup/Breakout Torque • Hookload • Rotary/Top Drive Rotational Speed • Stand Pipe Pressure • Drilling Fluid Pump Rate • Drilling Fluid Tank/Pit Volume • Drilling Fluid Density • Drilling Fluid Viscosity • Block Position SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

6. Slide 6 The Approach • Operators Group for Data Quality • Education on data quality issues • Technical papers and articles • Industry speaking engagements • Industry engagement efforts: • Qualification of 10 key measurements • Data Quality Contract Addendum • Operators, Rig Contractors, OEM/Service companies working together to advance data quality in work processes and commercial agreements • Proposed Data Quality Management Method SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

7. Slide 7 Current State Data – Hookload Example Operation: Hoisting and lowering for hole cleaning operations • Top drive RPM and mud circulation rates are constant Sensor variation: 20,000 DaN (45,000 lbf) hookload SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

8. Slide 8 • Example - Stackup of Hookload Data Quality Issues Offset error from incorrect calibration/zeroing Air in oil, 1% entrained air results in -3% measurement error (ASTM D6793) Excitation error from power supply resulting in +/- 0.3% Rig data captured at high sampling rates is converted to 5 second data for WITS, 99% loss of data Friction, both static and dynamic, in the sheaves resulting in -0.5% SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

9. Slide 9 Recommended Industry Actions • Set a consistent, minimum data requirement and quality of delivery for Operators, which will enable Contractors to perform consistently due to less variability for data requirements. • Improve shared data learnings across the industry, thereby elevating the industry and providing a foundation for the future of rig based automation. • Allow flexibility by requiring that data quality processes be in place, without specifying the specific method employed. • Drive improved consistency in the data quality framework used with other industry data (e.g., logging while drilling and wireline logging data). SPE 189626 • Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues • Matthew Isbell

10. Slide 10 Further Information… www.ogdq.org – See our website! OnePetro • SPE Paper 178776: Iron Roughneck Make Up Torque–Its Not What You Think! (Nathan Zenero) • SPE Paper 189626: Operators’ Group, Rig Contractors, and OEM/Service Company Work to Solve Rig Data Quality Issues (Michael Behounek) IADC Drilling Contractor Magazine • Drilling to the Limit – the ghost of Hyman G. Rickover (Nathan Zenero, Michael Behounek) http://www.drillingcontractor.org/drilling-limit-ghost-hyman-g-rickover-39255 • Operators group proposes data contract addendum to effectively unlock and utilize drilling data (Dung Nguyen, Tim Wiemers) http://www.drillingcontractor.org/operators-group-proposes-data-contract-addendum-effectively-unlock-utilize-drilling-data-41373 • Unsynced time measurements can lead to data aggregation challenges (Matt Isbell) http://www.drillingcontractor.org/unsynced-time-measurements-can-lead-to-data-aggregation-challenges-44767