“how it enables the oil and gas industry” lewis...

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Digital Oilfield

“How IT enables the Oil and Gas Industry”

Lewis YimBEACON Global Services - Operations Manager

Baker Hughes Incorporate

20th October 2011 Baker

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Outline

• Intro

• Lifecycle of a Well

• IT in Oil & Gas

• Challenges

• What is Digital Oilfield?

• Opportunities/Solutions - BEACON

• Examples

• What’s next Digital Oilfield

• Questions

© 2011 Baker Hughes Incorporated. All Rights Reserved.2

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About Baker Hughes*


*FY 2010: Baker Hughes and BJ Services

Revenue R&E Employees Facilities Operations

$14.4billion

$425million

53,000+ 72countries

80+countries

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A Customer-Focused Organization

Gulf of Mexico

USLand

Canada

Latin America

Europe

Africa

Russia Caspian

Middle East Asia Pacific

Region headquarters

Geomarket headquarters


Business Segments

Reservoir DevelopmentServices

Drilling and Evaluation

Completions and Production

Pressure Pumping

Industrial Services

Integrated Operations

Global Support

Portfolio Management

Global Marketing

Supply Chain

Reliability and QualityBaker

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The lifecycle of a well


SeismicSurveys

Drilling LoggingWell

CompletionsFracturing/Stimulation

Production

Physical Environment MsMicometers+250°C30,000 PSI

DecadesKm

-50°C10s PSI

IT Environment 10^10 b/measurement100’s gb/sms

10s b/day10s b/s

Hours/Days

Business Environment $20K/Day$20+BLocal Farm10 Major customers

$500k/Day$10ks/hr

Arctic1000’s “mom & pop”

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IT in Oil and Gas


• Approx 1.4% of its total revenue being spent on ICT

• In 2008, the total spending reached $37.6 billion.

TelecomServices,

$4.7IT Services,

$5.0

ComputerEquipment,

$5.9IT

Outsourcing,$9.1

Software,$9.7

CommsEquipment,

$1.2

Global O&G IT budgetspending

(US$ billions, 2010*)

*Source: Forrester Research 2010 report

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IT in Oil and GasGlobal ICT budget Spending (US$ billions)


Forrester Forecast

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Challenges in Oil & Gas


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• Complexity of new wells

• HPHT

• Deep-water

• Unconventional oil & gas

• Extended reach

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• NPT (non productive time)

• Cost $26b

• Wellbore Stability (37%), Rig Failure (22%)

• Human Factors

• Health and Safety

• Aging Workforce (majority to retire in next 5 years)

• Inexperience

• Time

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• Geographical

• Emerging markets/experts

• Remote locations

• Travel

• Time zones

• Local legislation/regulations

• Demand

• Increased Energy consumption

• Government pressure

• Oil Price Up and DownBaker

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Pop Quiz


How much data does an oil rig produce per day?

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i-Field, Digital Oilfield, Smart Fields, IntegratedOperations, Field of the Future???


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What is Digital Oilfield?


„The vision for the Digital Oil Field is one where operators, partners, andservice companies seek to take advantage of improved data and knowledge

management, enhanced analytical tools, real-time systems, and moreefficient business processes‟

CERA: Digital Oil Field of the Future

• Move to a real time or near real time way of working

• Connection of one or more remote sites or teams to work together

• Moving to more multidiscipline way or workingBaker

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The Digital OilfieldCommonly terms used


Real-time Data

Visualization

Production optimization

Condition monitoring

Remote OperationsKnowledgeManagement

Flowline Monitoring

Control of Subsea Production Systems

Virtual Collaboration

Source: Step Change Global

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Building the DOF platform


Organisation

People

Process

Technology & Environment

Capability Deploymentnot

Technology Implementation

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Solutions/OpportunitiesBaker Hughes’ vision of Digital Oilfield


Real-TimeCollaboration

DataManagement

Global Standards

RemoteOperations

24/7 TechnicalSupport platform

BEACON - The Baker Hughes platform for remote

operations, managed at the enterprise level, deploying commonstandards and services to provide a global, secure servicedelivery model

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19

Opportunities – “Re-Manning”

Traditional offshore crew configuration with additional specialist services:

2 DD 2 MWD 2 DE 2 ML 2 Spec

+

+

BEACON offshore crew:

DDx ARTE ARTEDDx

=8 – 10

people

offshore

+ +

BEACON onshore crew:

=2 – 3

people

offshoreSpec SpecBak

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Opportunities – Data Delivery


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Opportunities - Real-Time VisualizationFrom the Driller …… to the Geologist

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Opportunities - Real Time Collaboration’s NetworkFrom Driller to Geologist


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IT EnablersWhere “Core” IT enables the Digital Oilfield


Digital Oilfield

Infrastructure

Hosting &Storage

Security

Software

VideoConferencing

Process

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Results


• Operations and Maintenance

– Opex Cost Reduction 5-15% Standard Industry figures

• Drilling and Well Planning

– Reduction in NPT 5-15% reduction in total well time

• HSE

– 25% Reduction in offshore staff

– Environmental monitoring opportunity

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What’s Next?


• More utilization of Cloud technologies

• Increased automation at rig sites

• DOF included in the design of new oilfields

• Preventative prediction

– think Minority Report

• Integration of other disciplines

– Supply Chain

– Finance

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