“WE USED TECHNOLOGYto change what we do,rather than op timisewhat we have always

done.” —Jim Williams, Chevron manager.Oil and gas companies are applying the

latest automation technologies not only toenhance exploration and productioncapabilities, but also to diminish risks toemployees, preserve the environment andoptimise daily operational methodologies.Present technologies have redefined howcompanies manage real-time data,automated workflows, analytical decision-making and corporate key performanceindicators (KPI) tracking.With the advent of smart wells and real-

time automation technologies, oil and gascompanies are looking at assets in a newlight, which helps in making informeddecisions while reducing risks. Suchmethodologies will not only improve overalloperations, but will also allow companies toadapt data-driven operating models.However, the big question remains: how willthese real-time data-driven models and newtechnologies shape the future of the oil andgas business?

The presentDevelopments in informational and operationaltechnologies have been groundbreaking in thepast decade. Our generation has witnessedthis, with the average human easily adaptingto the newest, state-of-the-art smart phones.

This same philosophy is finding its way intodaily business practices in the oil and gassector. Producers have readily invested in suchtechnologies and are now reaping the results. Technologies find ways into an oil and

gas group through different channels andstakeholders. For example, a production orreservoir team might bring in distributedthermal sensing (DTS), zonal flow control(ZFC), down hole gauges (DHG), and artificiallift systems (ALS) under its portfolio. On theother hand, an automation team might beworking on bringing in smart sensors,telemetry and data communication systems.Finally, an IT team within the company willbe responsible for providing datamanagement and will assist with softwareand collaboration projects. All stakeholders

will then play key roles in bringing togetherthe building blocks to construct a smart fieldmodel that best meets the company’sunique requirements. With the availability of real-time data and

new insight in daily operations, oil and gascompanies are now looking into furtherenhancements to automate - to someextent, if not all - key optimisation tasks. Thedevelopment of innovative ideas resultingfrom present smart field initiatives will pavethe way for new technological advances,which will define the future of oil and gasfields.

The futureThe adaptation to smart fields has allowed theoil and gas industry to break away from silos

The Schneider Electric model of the smart oil and gas field

Javier Díaz Lugo and FahdSaghir on how new technologieswill lead to an increasinglyintergrated operations approach.

Oil and gas fields

get smart

Technologies findways into an oil and gasgroup through differentchannels and stakeholders”

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and adopt an integrated operations approach.The outcome is new ideas that can beconverted into future technologies specificallydeveloped for the smart oil and gas field.Some technologies are already knocking at thedoor. Here is a look at what the future holds:

Internet of Things (IoT)Recently, we have seen IoT being discussedin numerous papers and it is currently a buzzword among technology enthusiasts. Simplyput, it is the idea of allowing inter-machinecommunication through embeddedcommunication devices. It is an excitingprospect, as it will allow machines to providedetailed diagnostics and data while sharingkey information about processes in real-time.Preventive maintenance reporting capabilitieswill be embedded directly at the source,allowing for immediate corrective responses,and thus minimising production loss. This willbe particularly advantageous in scenarioswhere resources are scarce and assets arelocated in remote facilities. Adaptation of IoTin the oil and gas industry alone could improvemaintenance, safety and optimisation.However, as is the case with any internet

service, cyber security becomes a keybuilding block for IoT. It is imperative thatwhile companies become more open to dataconnectivity, they also pay attention to cybersecurity infrastructure by following soundand proven industrial practices.

Robotics Remotely operated vehicles (ROVs) have beenused for many years at offshore productionfacilities. However, given that exploration isnow being done in further inaccessible areas,using robots for conducting routinemaintenance and inspection activities isbecoming more attractive. Robots provide a24/7 surveillance option to operators atremote offshore facilities. ROV tasks couldrange from running a routing visual inspectionroutine to conducting minor maintenancetasks. This would allow operating companiesto save on travel and reduce exposure tohealth, safety and environmental factors. Drones, on the other hand, are already a

popular method for surveillance. Inhazardous locations, such as flares and oilstorage tanks, drones can be useful inproviding real-time surveillance in hard-to-reach areas. Equip a drone with an infra-redcamera and you have a real-time, mobile

leak detection device at your disposal. These technologies are already available

and being used on a very small scale by afew oil and gas companies. However, it willbe interesting to see how thesetechnologies integrate into operationalactivities once applied on a larger scale, andif this changes the approach toward roboticsin the oil and gas industry overall.

Multi-disciplinary workforceWith people from different disciplinesincreasingly coming under one roof to optimiseproduction and improve daily operations, thetrend will be towards companies adapting amulti-disciplinary approach. Automation and IT disciplines now better

understand overall exploration andproduction dynamics, and have becomeconversant with identifying gaps to improvethe smart fields approach that caters to acompany’s core business of oil and gasproduction. Concurrently, production andreservoir disciplines have become morealigned with real-time technologies and cannow assist in the selection of appropriatetools that will help enhance the smart fieldconcept.A multi-disciplinary approach will have a

positive impact on how companiescollaborate in the future. This will allowbetter understanding across the board, andeffectively enhance individual performanceand boost company productivity.

Improved real-time fluid and petro-physical analyticsThe reservoir is the oil and gas company’smain asset, and the only money-source.

Ironically, the reservoir is the most unfamiliarplace in an organisation. Principal data frompetro-physical and fluid characterisation areused to build the reservoir model anddetermine the field development plan. Most of the petro-physical and fluid

analyses is carried out manually inlaboratories. The complexity of protectingthe in-field samples and reproducingreservoir conditions in laboratories, togetherwith the costs involved, mean this kind ofdata is particularly precious to engineers incharge of models.With the smart oil and gas field of the

future, properties like viscosities, pressure-volume-temperature, chemical reactionsbetween injected fluids and the diverse rocktypes in the reservoir could be monitored inreal-time. It is necessary the oil industryinvest in R&D to support this technology.Nothing should be more important to the oilindustry than knowing what is in thereservoir.

Closed loop reservoir optimisationThe main dilemma in managing a reservoir isdiscovering how to increase the oil recoveryfactor of a field. Even by applying enhanced oilrecovery, mature fields still keep too much oilat the end of the life-cycle of a reservoir.Current technologies do not make a totalsweep of oil.Today, reservoir management is limited

to following field development plans withdynamic models that are updatedsporadically due to the lack of new rock andfluid information. Future models need to beupdated in real-time in order to react todynamic reservoir conditions.

ROVs have been used at offshore facilities for many years (photo: Ocean Networks Canada)

Automation and ITdisciplines now betterunderstand overallexploration and productiondynamics”

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In addition to enhancing dynamicreservoir simulation, there is a large gap inhow production technologies interact withautomation technologies. With the number ofsmart completions increasing steadily, not alloil and gas operators are able to reap the fullbenefits from multiple smart well

technologies. DTS, ZFC and DHGs areworking independently from surface-basedautomation systems. The value of thesesmart well technologies will increaseexponentially if they are used as part of aclosed-loop control with surface automationtechnology. The ability to manage water

injection by controlling motor-operated valvesbased on real-time DTS data can improve theinjection regime throughout the reservoir.Tying in multi-phase flow meters with ZFCcan allow operators to maximise productionby optimising flow from each zone. The number of combinations is countless

and requires an out-of-the-box approach tomerge production and automationtechnologies. Additionally, by combining real-time models with the above-mentionedapproach, IoT will not only optimise the waywe produce, but will radically change theway we operate an oilfield, thus reallyoptimising the field development plan. n

Javier Díaz Lugo is an upstream oil and gassolution architect and Fahd Saghir is a systemand architecture expert at Schneider Electric.

The number ofcombinations is countlessand requires an out-of-the-box approach”

IoT will not only optimise the way we produce, but will also radically change the way we operatean oilfield

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