It’s About Time

Sanjaya Sood

May, 2006

2 Initials

Key Industry DriversThe Emergence of Three Main

Trends• Introduction of new enabling

technology, bringing huge

improvements in reservoir

productivity

• Increasing demand for real-time

information, modeling, visualization

and decision making tools

• Periods of consolidation and

downsizing, resulting in the

industry expertise having aged

significantly

3 Initials

The Intelligent Oil FieldField Operations

Field Assets

External Stakeholders

Corporate Management

4 Initials

Intelligent Oil Field Enablement

• Digital enablement of oilfield operations

• Time-lapse seismic, real-time drilling, real-time production

• Downhole intelligent completions technology

• Downhole valves and sensors including multiphase meters and fiber-optic systems to track production from pore to pipeline

• Remote control centers linked by digital networks to field operations, management and external stakeholders

• Real-time workflows to enable core E&P processes

• Large scale data and systems integration

Where we are today

6 Initials

Real-Time Drilling

Features• Real-time model-based surveillance

• Earth-driven drilling optimization

• Integrated well-planning

• Secure digital infrastructure

• Remote team collaboration

Benefits• Improved productivity

• Better management of risk

• Improved efficiency with reduced cost

7 Initials

Rotary Steerable Systems for Real-Time Drilling

• Traditional directional drilling– Points the bit from surface– Rotates only the bit– Pushes and slides the drill string

• Rotary steerable drilling– Sends the desired direction to the

drilling tool downhole– Rotates the entire drilling string– Steers the well by configuring the

downhole tool to orient the bit

8 Initials

Real-Time Drilling – Complex Well Trajectories

• Total E&P UK plc, Shell,

ExxonMobil, Dana Petroleum

– North Sea

• Integration of rotary

steerable system with

advanced LWD for optimum

well placement

• All four reservoir targets

achieved

• Cost reduced

• Drilling efficiency improved

• Production 25% more than

predicted

PowerDrive geoVISION Gamma Resistivity PowerPulse

Block A Block D

Target 1 Target 2 Target 3

Target 4

TVDS

S m

eter

s

-1900

-1950

-2000

9 Initials

Real-Time Production Systems

• Digitally-enabled artificial lift systems

• Digitally-networked, remote surveillance and system control equipment

• Workflow processes to identify, diagnose and optimize lift and well performance

• Remote engineering experts to analyze sand-face, reservoir and network performance

10 Initials

Real-Time Production Monitoring

A – Pump started

B – Chemical injection

C – Pump stopped to change leaking valve downstream – threshold triggering event

D – Chemical injection

E – Increasing pressure due to damaged choke on adjoining well

F – Routine maintenance shut down

G – Variable speed drive frequency increased

11 Initials

Real-Time Production Pump Monitoring

0

200

400

600

800

1000

1200

1400

Well 1 Well 2 Well 3 Well 4 Well 5 Well 6 Well 7 Well 8 Well 9 Well 10 Well 11 Well 12

Oil P

rodu

ctio

n B/

D

Conventional ESP Instrumented ESP Total net gain

• Identification of wells for

pump-upsizing

• Determination of wells for

acid-stimulation

• Identification of excess

wear

• Total of 31 wells in field,

2600 bopd added

12 Initials

Real Time Monitoring and Delivery

13 Initials

VSAT

• ''A VSAT', for Very Small Aperture Terminal, is a 2-way satellite ground station with a dish antenna that is smaller than 3 meters, as compared to around 10 meters for other types of satellite dishes.

• Schlumberger Oilfield Research co-developed the world's first VSATs with Hughes Aerospace in 1985, to provide man-portable network connectivity for oil field drilling and exploration units. VSAT's are still used at well sites today to transmit real-time data back for processing.– From Wikipedia, the free encyclopedia

14 Initials

Challenges

• Workflows• IT Infrastructure• Business Model

15 Initials

Workflows that Work

• Managers need a clear idea of how to gain the benefits of implementing a real time or e-Field project

• The choice of sensors, data, bandwidth, applications, people, and processes must be driven by the oil and gas production problem to be solved

16 Initials

Ready to Run

• IT infrastructure must provide– End-to-end security

– Interaction with data in the right time

– Integration with other data and systems

– Solutions for presentation and evaluation

– Capability for collaboration

• IT infrastructure implementation must be reliable and repeatable

17 Initials

Business Models

• Centralized model– Little control or flexibility– Obstacle when business units do not see initial

benefits – Simple to administer

• Decentralized model– Totally flexible– Business units can choose resources based on

needs – Highly inefficient

18 Initials

Business Model that Makes Sense

• Combination Approach– Common costs reallocated to the business

units– Business units can purchase products and

services as needed– Transitions to a pay per usage based on

needs

19 Initials

The right people, viewing the right information, at the right time

In Conclusion

• The industry is on the right path to the vision

• Progress has been made but it will take time to get there– O&G technology exists– IT exists– Processes exist– Funding exists

• What is missing– Understanding the benefits for

the workflows– Reliable, repeatable IT

enablers– Business model

20 Initials

It’s About Time

ssood@slb.com