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Source: Downes & Mui, “Unleashing the Killer App”

The E&P Industry and the POSC Community David Archer President / CEO Regional SIG Seminar New Delhi, India 14 January 2005. Source: Downes & Mui, “Unleashing the Killer App”. Oil fields of the future: real-time oil and gas operations. Onshore Facilities. Offshore Facilities.

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Source: Downes & Mui, “Unleashing the Killer App”

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  1. The E&P Industry and the POSC CommunityDavid ArcherPresident / CEORegional SIG Seminar New Delhi, India14 January 2005

  2. Source: Downes & Mui, “Unleashing the Killer App”

  3. Oil fields of the future: real-time oil and gas operations Onshore Facilities Offshore Facilities Decision Centers new capabilities – much more data; much more exposure Source: Peter Breunig (CVX)

  4. The Vision:An integrated digital EP Business with processes sufficiently automated to enable people to achieve superior business performance. Source: Herb Yuan (Shell)

  5. ∆ Smart Systems The basic approach of all “smart technology” is measure-model-control • measure system properties • model actual vs desired behaviour • derive required correction parameters (adaptive control) • implement control Acquire Control Model INTOPS Analyze INTOPS = Integrated Operations Source: Shell

  6. Acquire Control INTOPS Model Analyze Time Scales (106 range) Business Headquarters Slower cycle Capacity Planning Design - Asset life cycle and installed based maintenance or growth - Supply Chain Management & Market and customer demands [months/years] - Planning of injection/production plan and resources Planning drilling and workover resources Operational Planning - [months/years] Supply Chain Management & Market and customer demands - Time-scale Automation level Opening and closing wells or partial completions - Scheduling of injection/production plan and resources Scheduling - Adjusting well operating parameters [days/months] - SCADA systems for coordinating flow stations and pipelines - Supervisory Control - Gas distribution/optimization on a pipeline network [minutes/hours] - Monitoring wellheads, multiples and flow stations Regulatory Control - Flow, pressure and temperature in wells and separator [sec/minutes] - Fuel injection to produce heat out of a boiler Fast cycle Well & Surface facilities Source: Saputelli SPE 83978

  7. The Problem? • Theorem 1: 50% of the problems in the world result from people using the same words with different meanings • Theorem 2: The other 50% of the problems results from people using different words with the same meaning Stan Kaplan, Risk Analysis, Vol. 17, No. 4, 1997

  8. POSC: A short history Founders: BP, Chevron, Elf, Mobil, Texaco 1990 Epicentre published 1993, most recent update (v3.0) 2001 POSC/Caesar joint work 1995 Interoperability specifications 1996 Organizational change: Sponsor to Membership organization 1998 XML beginnings / seminars 1999 (MMS eReporting) Web Services pilot 2001 XML schema / modules 2002 SIGs reborn 2002 DSS SIG / E&P Catalogue 2002 New Name 2003 WITSML to POSC 2003 PIDX MOU 2003 IntOPS 2003 - 2004 NDR5 2004 POSC Caesar MOU 2004 (IIP) WITSML V1.3 2004 (Release Candidate)

  9. Some factsNot-for-profit consortiumLocation: Houston, LondonMembers: 50+International membershipOil [9]Anadarko, BP, ChevronTexaco, CNPC, ExxonMobil,Hydro, ONGC, Pioneer, Shell, …Service / Software [22]Halliburton, Paradigm Geo., Schlumberger, … Government / Regulatory / Noncommercial [20]US DOE, US DOI, UK DTI, Norwegian NPD, …

  10. Governance11 Directors elected from Membership for 3 year termsHerb Yuan, Chairman (Shell)Stewart Robinson, Vice Chairman (UK DTI) David Archer, President / CEO (POSC) Peter Bernard (Landmark)Peter Breunig (ChevronTexaco)Steve Comstock (ExxonMobil)Tom Halbouty (Pioneer Natural Resources)Yogesh B. Sinha (ONGC)Ihab Toma (Schlumberger SIS)Morag Watson (BP)Eldad Weiss (Paradigm)

  11. Board Economics Reservoir Production Engineering Geology Expl Petrophysics Petroleum Geology Engineering Drilling Production Facilities Engineering Engineering Engineering Drilling Completion & Production Geophysics Operations Workover Operations POSC Standards / SIGs Reference Data Standards E&P Catalogue Standards Practical Well Log Standards Industry Dictionary Data Store Solutions SIG Business Objects eRegulatory SIG NDR Meetings IntOPS SIG XML exchange standards, design guidelines, profiles WellHeader, WellPath, WellLog, LogGraphics, etc.

  12. Standards … from a major operator’s point of view • It is better to be common than to be the best • We will get common before we get best • Claim • Savings of $100 Million / year due to internal standardization

  13. POSC Standards in Products

  14. POSC Standards in Products

  15. POSC Special Interest Groups • In general, SIGs are User Communities focused on a standard, a work process, or some other common interest. • Current SIGs: • Data Store Solutions (DSS) SIG • WITSML (Drilling) SIG • Integrated Operations (IntOPS) SIG • Practical Well Log Standards (PWLS) SIG • Geoshare SIG • eRegulatory SIG • Characteristics: • Open to POSC members and non-members • Determines, publishes, and promotes consensus recommendations

  16. POSC Standards & SIGs

  17. WITSML™ – WWW.WITSML.ORG Wellsite Information Transfer Standard Markup Language The “right time” seamless flow of well site data between operators and service companies to speed and enhance decision-making A New Open Information Transfer Standard for the Oilfield

  18. Office Anywhere Depth based project data db RTS service Timebased drilling data db (Coming soon) Onshore Operational Centre Home Global acquisition & access of RT drilling data Source: Statoil

  19. The Right Initial Players - clear focus BP & Statoil Baker, Halliburton, Schlumberger, NPSi Strong Commitment Initial funding by oil companies Oil & service companies remain engaged after initial delivery Effective Processes Practical, incremental approach Clear focus on target outcomes - through implementation Frequent communications - steering & technical teams Choice of Technologies XML, SOAP Comprehensive Output and Documentation XML Schemas + Server API + sample implementation Openness / Evolution Public seminars and presentations Transfer to POSC for commercially neutral custody, publication, promotion and evolution Some lessons learned / best practices

  20. POSC Challenges • Help deliver the vision of a digital EP Business • Deliver data and real-time standards • expand the WITSML footprint – production data, • expand data types – seismic, models, engineering data ?, . . • increase clarity in delivery milestones and targets in coming years • Facilitate implementation and take-up of EP standards • engage with operators and service companies • Foster membership time commitment to SIGs (5-10%) • Continue to increase visibility in industry - increase geographic reach • Improve coordination between standard setting bodies Source: Herb Yuan (Shell)

  21. David ArcherPresident / CEO24 Greenway PlazaSuite 1000-BHouston, TX 77046+1 713 267-5142 phone+1 713 784-9219 faxarcher@posc.orghttp://www.posc.org

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