DOC ID© Chevron Corporation 2005

WITSML Paris16-May-2007Rick Morneau

“To be the global energy company most admired

for its people, partnerships, and performance.”

Energy Technology CompanyPartners Creating Value

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Agenda

Chevron technology strategies

Standards

Why Chevron joined the WITSML SIG

Existing tools

Chevron’s WITSML activities

Summary

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Energy Technology CompanyBusiness Fundamentals

Role is an internal technology provider and integrator & supplying differentiated energy technology solutions & services.

Value creation is achieved by rapidly integrating and applying technologies & practices to achieve superior operational and financial performance.

Business Model based on Multi-tiered funding & external leverage Corp. funded Strategic Research (long term

3+ years) Business-driven R&D (Tech Development)

(shorter term 1-3 years) On-demand technical services & support

Each Department operates as a fully

cost-recovered organization.

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What becomes critical to the digital technology part of the energy business.

Technology applicationapplication is critical to adding value.

Remote operationsRemote operations will be critical in deepwater.

Remote operations may be critical in shelf and land environments.

Big service companies providing all the innovation is not going to happen (margins are too small).

Improved resolutionresolution within the reservoir is critical because:

deepwater wells cost a lot,

fully exploiting existing assets is essential.

Integration opportunities become critical.

Innovation will come from the “fringes of technology”“fringes of technology”, improving equations, reducing approximations and refinement of measurement.

WorkflowWorkflow efforts will be critical to define business value.

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Standards

What do standards mean?

Least common denominator?

No!

Raising the bar? Yes!

Defines what good looks like

Loss of creativity? No!

Actually can enhance

creativity by supplying

framework for innovation

Allows inoperability – not

tool based

What can standards accomplish?

Improve technical analysis

Increased reliability and predictive

accuracy for technical evaluations:

Operational Excellence

Improve organizational efficiency

Standard workflows and processes

to improve organizational

efficiency: Organizational

Capability

Improve portfolio decision quality

Improved ROCE through

reduction in number of dry holes:

Capital Stewardship

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Why Chevron joined the WITSML SIG

We consider WITSML to be a compelling activity but realization of the potential requires follow through by all parties

Impressed by the software solution providers interaction within the WITSML community

Want standards that are working

There are Real implementations, not just theory

On path toward Web services

Important standard for exchange of data

Opportunity to expand the standard

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Current Uses

Using WITSML vendor servers for some deep

water drilling projects for MWD/LWD.

Brazil, Nigeria, Angola and Gulf of Mexico

with increased take-up.

Landmark’s OpenWire

Well bore mechanical viewing tool integrated

into our decision support system

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Current Activities / Direction …

Well Plan

Complete Well

Workover review

Update completed well info

Real Time data

Today this is where we stop

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Current Activities / Plans

Real-time drilling operations

Transfer from drilling system to data

management system for operations and

planning

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Current Activities / Plans

Rig

Drilling

System

Drilling

System

Drilling Center

Environment

Database

AppsApps

AppsApps

WITSML

Proprietary

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Summary

We are building more internal expertise… slowly

Expect benefits from a commercial tools

Developing adaptors for our data stores

Encouraging vendors to provide both import/export WITSML

Need to find ways to both lower the cost for acquiring real time data for non-DW wells and to help others in CVX understand the value proposition of WITSML

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Thank You

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