1.Oil & Gas Edition

Industry Edge Energy: Oil & Gas Edition

Feature stories

Five trends shaping the future of oil and gas

Three critical enablers supporting the industry’s future

Master big data to optimize the oil and gas lifecycle

HP Enterprise Services • Issue 008 • Fall 2012

The route to better, faster oil and gas is paved with newfound efficienciesToday’s world runs on oil and gas. Global demand continues to be strong and in many sectors increasing. With many existing reservoirs producing less, oil and gas companies are relying on technology to help find new reserves and increase production to meet those needs. Fortunately, a number of innovative developments are putting upstream and downstream goals within the industry’s reach.

To manage exploration, development, and production activities, oil and gas firms now use sensor technology, machine-to-machine capabilities, and real-time decision-making. When seamlessly integrated across multiple systems, these technologies can produce big benefits.

However, these benefits depend on a few critical enablers: information management

and analytics, security, mobility, and cloud-based solutions. While these capabilities can lead to big results, they must be monitored, controlled, and implemented by a company who knows this technology. The world of oil and gas – like many other industries – is nonstop. A disruption in any one of the areas can have profound and costly effects on exploration success, production output, and, ultimately, the bottom line.

To learn more about how technology is helping the industry overcome the challenges of remote and difficult-to-access resources, find meaning in the avalanche of data, and manage the layers of risk inherent in the extraction process, spend some time drilling down into the pages that follow.

4 Five trends shaping the

future of oil and gas

10 Exploit sensor data for

real-time decision-making

14 Three critical enablers supporting

the industry’s future

18 Master big data to optimize

the oil and gas lifecycle

22 Pump up efficiency with mobility

26 Once more unto the breach:

Comprehensive security in

the digital age

30 Considering the cloud?

34 Why HP?

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Five trends shaping the future of oil and gas

With the rise in demand, costs, and safety pressures, and the complexity that comes with exploration and production in challenging environments, the modern oil and gas industry faces major hurdles to success. The future of the industry depends on finding ways to use the

latest technological advances to produce more, at lower costs, while optimizing operations. From intelligent oilfields to enterprise security concerns to supply that is optimized for the marketplace, a number of industry-specific trends are emerging.

6. Oil & Gas Edition

Advance business models with the intelligent oilfield Trend #1

Energy firms are always searching for more

cost-effective ways to discover and drill for oil

and gas. New technologies, such as remote

sensors and mobility solutions, play a key role in

shortening exploration and development time by

enabling faster, better decision-making.

The use of sensors and mobility solutions

combine to form what the industry calls the

intelligent oilfield. Intelligence comes from

the ability to collect massive amounts of data

and then turn them into actionable insight. For

instance, drilling activities can be monitored

and managed in real time, thereby reducing

inefficiencies and ensuring safety while drilling.

Leveraging current data and high-powered

analytical tools with results communicated to a

mobile workforce, oil and gas engineers can use

this information to support a better business

model – one that has evolved over the years

from reactive to proactive in order to become

more predictive and preventative.

Next-generation technologies optimize operations and increase yieldsTrend #2

In the energy industry, even minor improvements

can be game changers. Oil and gas experts

recognize that unlocking an additional one

percent of the oil reserves currently trapped in

rock could result in an expansion of conventional

oil reserves by 88 billion barrels, which is enough

to replace three years of current production

and have a major impact on world production1.

This helps to explain why energy companies are

focusing on techniques to increase recovery rates

on existing fields, such as mining high fidelity

seismic data from field sensors to determine how

to operate assets at higher capacity rates without

overtaxing the equipment.

Experts are exploring other ways to increase

efficiency and optimize operations. For example,

they are experimenting with integrating and

mobilizing real-time operating and asset data.

This would enable the implementation of

condition-based maintenance and reliability

programs that increase output, decrease

downtime, and reduce costs. One estimate

highlights that a five percent reduction in

1 Shell Dialogues, “Using innovation to help meet the energy demand: solutions to extract more from existing fields,” Shell Netherlands, Oct. 5, 2011.

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downtime would equate to nearly $88 billion

in annual savings. Other improvements to

optimize operations include increasing the level

of remote management and automation, with

autonomous operations maintaining production

and support – regardless of potential

communications and environmental challenges.

Modern security requires an enterprise-wide approachTrend #3

In the recent past, oilfield security depended

on legacy infrastructure, which was limited

by a siloed approach to risk mitigation, global

security, and cost reduction. Today, the need for

increased collaboration between geographically

dispersed organizations as well as third parties

and joint venture partners underscores the

importance of adopting a holistic enterprise

view of security. Identity management, in

particular, is crucial to protecting both the

infrastructure and intellectual property, and the

security challenge becomes even more complex

in light of the need to work with third parties to

monitor and control access to sensitive data.

As more intelligent oilfields – also known as

digital oilfields – are deployed, the need to

monitor and manage critical assets such as

SCADA systems using remote technologies

increases. It challenges oil and gas companies

to reduce the vulnerability of those assets

against electronic intrusion, misuse, and theft.

In addition, because many of these intelligent

oilfields rely on unmanned operations, there’s

an increased need to protect the business

and supply from threats to both physical and

cybersecurity.

Regulatory and environmental compliance are criticalTrend #4

The number and complexity of regulations

governing the oil and gas industry have

gradually increased at the local and country

levels. While traditional regulatory areas – like

health and safety monitoring – will always be

an area of focus within the industry, there’s also

new public pressure on companies to increase

environmental stewardship. Companies that

are slow or neglectful in addressing the public’s

concerns risk damage to their reputation and

incurring additional litigation expenses.

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Health and safety as well as environmental

regulations focus on incident avoidance,

mitigation, correction, and documentation.

New information management and analytics

solutions are supporting compliance on both

fronts. It is now possible to link unstructured

documentation or regional regulation with

structured operational data to prove or

disprove perceptions surrounding how

an incident was managed.

Analytics optimizes supply and demandTrend #5The oil and gas market has been widely affected

by demand fluctuations and political instability.

To combat the lack of predictability in demand

and production, the industry is focusing

on balancing production costs with current

market pricing to maintain adequate margins.

Additionally, companies are looking to maintain

adequate reserves to hedge against challenges

with long-term production.

The technologies that support this kind of

portfolio optimization center on advanced

analytics to balance demand requirements,

supply requirements, and pricing (either

through production or trading). These analyses

require sophisticated financial calculations that

incorporate pricing trends, production histories,

and reservoir depletion data. With improved

forecasts, oil and gas companies can optimize

production to meet demand and set prices to

drive profitability and improve outcomes for

years to come.

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The price of not changingUnfortunately, the costs associated with

maintaining current cost structure, processes,

and procedures are as formidable as the need

to effect industry change. As production from

unconventional sources increases, models

to support them must change to reflect the

unique management needs of each geology.

Without a flexible business model, the industry

will encounter severely limited resources,

especially as skilled professionals retire. This

makes it more difficult to free up human and

financial resources to realize the competitive

advantage of innovation and bring new

products and services to market quickly.

Companies that are still shackled with an

inflexible legacy infrastructure will struggle

to support the new demands being placed on

them, and will be subsequently slower to adapt

to changing market and customer demands.

Organizational IT systems will continue to

function in silos, preventing the 360-degree

view of the enterprise required to make fast,

informed decisions.

Experience better outcomes and a brighter future with HPA true partner to the oil and gas industry, HP

helps companies capitalize on the power of

structured and unstructured data to drive

strong business performance and effective

decision-making. Security services and

solutions protect the entire enterprise, even

those assets beyond the firewall. Cloud and

mobility solutions allow decisions to be made

when and where they need to be to have the

greatest impact – not months later in an offsite

data center.

The HP portfolio of solutions helps position

global oil and gas clients to embrace a more

predictive and preventative operating model

that increases production and optimizes

resources while maintaining safety, security,

and environmental sustainability.

To learn more, visit the HP Oil, Gas, and Natural

Resources site.

11.Oil & Gas Edition

Exploit sensor data for real-time decision-making Each year, nonproductive time during drilling operations costs the oil and gas industry billions of dollars, accounting for a loss of approximately one-third of an oil and gas company’s average annual drilling budget. Whether the nonproductive time results from unavoidable downtime from maintenance activities, or from avoidable downtime caused by unforeseen problems, the result is still immensely expensive. HP Enterprise Services in collaboration with HP Labs is developing solutions that use data to deliver actionable insights that enable companies to minimize avoidable downtime and make unavoidable downtime more predictable.

The industry has been using SCADA systems,

control systems, precision sensors, and other

instruments to collect drilling, production,

and pipeline data for years. However,

this information was typically stored for

interpretation months later or for regulatory

purposes only and was rarely integrated. Today,

industry professionals are looking for real-time

access to the data as well as tools that enable

more informed decision-making.

HP technologists and researchers are

developing software that collects both sensor

data and other operational and environmental

information. In a process known as Live

Analytics, the breadth of disparate information

is aggregated using rich visualization and real-

time analytics over big data to deliver insights

into operational processes.

Live Analytics integrates live and historical data

as well as structured, semi-structured, and

unstructured data to fuse data management

with analytical models.

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Live Analytics enables oil and gas process

engineers to:

• Visualize large volumes of data

• Mine historical data for patterns and events

• Discover correlations, root causes, etc.

• Detect and predict patterns and events over

streaming data in real time

• Alert operations staff to take

appropriate action

Energize the information via visualizationThe common analysis and reporting tools

available today do not meet the needs of real-

time operational intelligence; they provide

only aggregate information based on tables,

spreadsheets, or fixed reports. Consequently,

it is difficult to perceive patterns and trends,

identify exceptions and alert conditions, zoom

in immediately on problem areas, and drill down

to understand root factors of problems.

One way to overcome these challenges is

through visual analytics, a rich combination

of information visualization and automated

analytic algorithms. Visual analytics taps into

the human abilities to perceive patterns and

quickly identify exceptions.

At HP Labs, we have created several innovative

visual analytics techniques that are based

on familiar visual metaphors, providing

customizable high-level “dashboard views”

for the executive and rich interactive “data

exploration” for the power user or analyst.

Companies can leverage HP’s data analytics

capabilities to make more of the data they

collect more useful in predicting downtime and

optimizing uptime in oil and gas exploration.

Make drilling more efficientThrough close collaboration, HP Enterprise

Services and HP Labs have turned cutting-edge

research into two proofs of concept. The first

proof point required mining operational data

from more than six months of operation from

five deep wells (approximately 25,000 feet

below the surface) and analyzing more than

180 parameters to characterize the drilling

systems and circulation system operations. This

data was then used to create models capable of

detecting sidetracks and stuck pipes, with the

goal of significantly increasing field recovery.

The second proof of concept examined data

from more than 250 shale gas well drilling

operations – including over 230 attributes

and 25,000 unstructured data log files – to

identify trending patterns of operational key

performance indicators. Extracting meaning

from the operational data involved analyzing

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historical data to identify patterns and the root

causes of issues. The historical information

was then compared against real-time data to

predict – and thereby prevent – downtime. These

projects can have a significant impact on the cost

of drilling thousands of shale gas wells.

These proofs of concept demonstrated the

benefits of using analytics to characterize and

optimize operational processes. Examples of

the insights gained include the following:

• Identifying the most predictive attributes

and observing their behaviors or signatures

before an event – such as tripping a well –

enabled the prediction of the duration of trip

time windows.

• Similarly, other signatures of combined

attributes enabled the modification of the

operational process plan to reduce downtime

by dynamically setting control parameters

such as mud quantity, drill bit rotation, power

requirement, and force/torque during drilling.

Additional insights into operational processes

can help avoid significant downtime resulting

from the lack of inventory or unscheduled

maintenance of operational equipment.

Interpreting the operational data led to the

creation of predictive analytics for key events

responsible for drilling downtime, enabling

more accurate cost forecasting and a better

business outcome.

Improve asset managementHP technologists have applied concepts from

virtual collaboration and Live Analytics to

manage operations of large and complex

assets. Using gaming industry technology –

instantaneous computational power and rich

3-D visualization capabilities – HP has developed

an advanced virtual collaboration solution.

This solution makes the benefits of multiple

information sources available to virtual users.

Integrating analytics and data mining techniques

and applying them to operational process

logs in a collaborative environment enable

better troubleshooting of drilling outages,

training of refinery employees, and operations

management of IT environments such as remote

data centers.

At HP, we look forward to the technological

advances that are in store for the oil and gas

industry. We will continue working with the

industry to discover novel ways of leveraging

granular analytics data that can increase

business intelligence and create outcomes

that matter.

To learn more about how HP is helping oil

and gas clients and to discover new ways to

implement emerging technologies, click here.

15.Oil & Gas Edition

Three critical enablers supporting the industry’s futureInnovations in mobility, security, and information management and analytics (IM&A) are enabling leaders in the oil and gas industry to realize greater efficiencies and output than what was possible only 10 years ago. Cost-effective remote sensors, wireless data transmission, and expanding data volumes, for example, have the potential to open up new drilling opportunities around the world, but gaining the greatest benefit requires an approach that truly integrates these three enablers.

MobilityThe use of mobile devices in the field is

not new in the oil and gas industry, but the

scope of mobile capabilities has expanded

dramatically. One-way data capture devices

are being replaced by mobile information

platforms that can wirelessly transmit

volumes of information for analysis from

remote locations to the office. Analysis results

are then received in the field, allowing workers

to make necessary adjustments. This two-way

communication also informs management of

where field workers are so task lists can be

restructured as daily priorities change.

Mobility also facilitates the use of sensors

to gather and store granular data related to

flow rates, pressures, and conditions. Data

that was previously stored for later review

can now be analyzed in real time, thereby

enabling quicker, better, and more educated

decision-making in the field.

In addition, delivering information to the

field also plays an integral role in equipment

maintenance. Data captured from existing or

new condition-based sensing via machine-to-

machine (M2M) solutions and applications can

be used to ensure optimal production without

compromising the assets.

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For instance, real-time operating data can

be linked with asset data (such as inspection

reports and maintenance documentation) to

detect performance anomalies that might

indicate equipment that’s deteriorating.

Instead of waiting for back-end processes to

be executed, this type of information can be

mobilized and deployed to the appropriate field

personnel for quick action and resolution, which

helps prevent failures in the field. Enabling quick

replacement or repurposing of equipment before

it fails helps reduce costs and makes downtime

more predictable.

Another way that mobility advances the industry

is by enabling companies to leverage capabilities

such as 3-D visualization to help field workers

better understand unique situations they might

encounter at remote sites. Using capabilities

commonly found in cell phones, 2-D and 3-D

images of equipment may be captured and

linked to back-end information stores. Far

more effective than written documents, these

visualizations can link to key information and

guide field personnel through inspections,

regular maintenance activities, training guides,

and troubleshooting.

SecurityWidespread collaboration of third parties,

independent software vendors, and joint

venture partners in the oil and gas industry

results in a pressing need to authenticate users

and limit access to only essential files, data,

or applications. Another element that makes

security crucial for oil and gas companies is that,

in development scenarios in particular, much

of the data is highly sensitive. The competitive

advantage provided by this information could

result in catastrophic circumstances if it were to

fall into the wrong hands.

Oil and gas firms must go beyond addressing

day zero threats and cybersecurity plans

to manage and maintain traditional assets

such as personal data and customer identity

information. Intellectual property comprising

seismic, engineering, and reservoir data, as well

as development plans and estimates, requires

strong data lifecycle management capabilities.

Because data sets and privacy needs are often

governed by regulations, knowing where data is,

where it’s going, and who is sending it is vital to

meeting requirements and keeping millions of

dollars in corporate assets secure.

Information management and analyticsDigital oilfields deliver an abundance of data.

Unfortunately, not everyone knows how this

data can be used and integrated with data from

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additional sources to make it truly meaningful.

IM&A solutions have the power to change this

by optimizing the upstream and downstream

information value chains. Oil and gas companies

with optimized value chains can refine their

business models from reactive to proactive in

order to become predictive and preventative. It

all relies on having the right information with the

right people when it is needed most.

By permitting companies to store and mine

volumes of both structured and unstructured

data, information management assures the

support of the integration of remote resources.

Solutions can pull resources from remote regions

and integrate them into the support, analysis,

and decision-making processes.

Contextual analysis has exceeded previous

capabilities, making data much more readily

accessible. In addition, innovative techniques

used to interpret unstructured data such

as seismic and geophysical information,

engineering drawings, videos, phone

conversations, and raw documents are

expediting data searches. Documents that might

have gone unused or underutilized in previous

years now have greater meaning and value.

Advances in IM&A also help ensure business

continuity as employee turnover occurs or

many experienced oil and gas professionals

retire. By permitting companies to store

and mine from volumes of structured and

unstructured data, information management

prevents the hard-earned knowledge from

leaving the company – or even the industry –

with these individuals’ departures.

Enabling the integrated approachMobility, security, and IM&A connect

operational and business systems, providing

an enterprise-wide view of security events,

resource locations, and operational patterns.

Oil and gas companies that leverage these

capabilities will be better suited to respond to

rapid market changes and focus on innovation

rather than the day-to-day operations,

resulting in a stronger competitive position.

A weakness in any of the three enablers –

security, mobility, or IM&A – could compromise

the integrity and availability of the information.

This leaves oil and gas companies vulnerable

to breakdowns in communication or unable to

access their own knowledge. As the industry

evolves to rely on more automated processes,

it is depending on capabilities that can support

and facilitate the seamless exchange of real-

time information.

To learn moreFor valuable insight on the power of IM&A,

see page 18.

To learn more about how mobility enables

a more efficient industry, see page 22.

For more information on the issues surrounding

enterprise security, see page 26.

18. Oil & Gas Edition

Master big data to optimize the oil and gas lifecycle Unleashing the power of data with information management and analytics (IM&A) solutions can enable oil and gas firms to use information strategically to reduce time to first oil, lower operating costs, and improve all areas of the oil and gas lifecycle.

Understanding and leveraging data in the

upstream business segment enables firms

to remain competitive throughout planning,

exploration, delineation, and field development.

The downstream segment depends on data

to maximize production with regards to

maintenance and forecasting. Fortunately,

oil and gas companies have access to an

abundance of valuable data in both upstream

and downstream operations. Unfortunately, this

information comes in various and increasingly

complex forms, making it a challenge for energy

firms to collect, interpret, and leverage the

disparate data.

IM&A solutions integrate common and

disparate data sets to deliver the right

information at the appropriate time to the

correct decision-maker. These capabilities

help companies act on large volumes of data,

transforming decision-making from reactive

to proactive and optimizing all phases of

exploration, development, and production.

IM&A solutions can benefit oil and gas firms by:

• Reducing time to first oil

• Increasing the productivity of assets across

their lifecycles

• Applying advanced business intelligence and

embedded analytics

• Ensuring the right information is available to

the workforce at the right time

• Improving planning and forecasting results

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Recognizing patterns in unstructured dataOne way to accelerate decision-making is

to link unstructured and structured data

together to enhance pattern recognition that

can improve the optimization of oil and gas

operations. For example, real-time data inputs

can be compared against patterns mined from

a historical database through base analytics or

enhanced visualization techniques. Companies

are able to identify issues and root causes in

massive volumes of information, then identify

and implement appropriate actions that will

treat the cause upon detecting the pattern,

rather than waiting for a crisis to trigger action.

Exploration

The challenge in exploration is to provide quick,

seamless, and automated access to structured

and unstructured seismic data for geophysical

interpretation. This linkage enables

geotechnical professionals to understand

the context in which seismic surveys were

conducted, and it makes supplementary

information available in real time to support

the decision-making process. Additional

benefits are gained when well master data

is integrated with unstructured information.

Correlating seismic and well production data

is critical to enabling unified production and

profitability analysis.

Integrating and potentially mobilizing this

information helps oil and gas firms optimize

processes by providing collaborative information

and integrating seismic data management with

unstructured information. This supports data

preservation, data quality, data accessibility, and

real-time process refresh.

For clients performing seismic studies, HP has

gone a step further – supporting high fidelity

seismic data capture by incorporating HP

accelerometers. These wireless self-powered

accelerometers provide greater density of

information, which results in increased visibility

and clarity to support geotechnical analysis.

Development

Development phase optimization includes

overall asset development, product lifecycle

management, and asset lifecycle management

techniques – with a focus on reducing the

duration of the development cycle. Optimizing

the supply chain in support of development

phase activities includes capturing and

validating information for drilling, well

development, facilities development, topsides

development, geophysical data, and security

efforts related to the access of control data.

IM&A supports analysis of data by following or

leveraging client or industry-based standards.

Compliance with standards ensures information

management capabilities are implemented and

supportable over the long term.

While current IM&A offerings can deliver

strong benefits, HP is working with clients

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to expand on the results and potential. HP is

piloting the deployment of additional sensing

capabilities during the drilling process,

which would allow more detailed subsurface

information to be gathered and correlated

with information originating from control and

historian systems. Enhanced benefits from the

initial results include:

• Provisioning of additional data that supports

flow rate analysis

• Capturing out-of-bounds activities during

well phase completion

• Establishing a broader information base for

use in pattern recognition of undesired events

HP leverages information gathered at the

development site to enhance results obtained

during the drilling process. Using complex

algorithms that correlate multiple information

sources, clients can identify signatures and

patterns associated with undesirable results.

Information is then fed back into automated

or manual control processes to either capture

potential events in real time or address needed

process changes to avoid suboptimal results.

Production

HP’s experienced IM&A professionals help clients

focus on uptime and production optimization

for both upstream and downstream operations.

Oil and gas companies can identify appropriate

signatures through the use of HP-developed

algorithms to analyze information from multiple

control systems and data historians. These

algorithms are then implemented in appropriate

real-time control systems to act automatically,

or support manual processes for intervention or

process change.

Around the world, HP works with clients to

optimize results such as uptime with condition-

based maintenance techniques involving the

linkage and analysis of real-time operating

data with asset maintenance and inspection

data. The increased use of mobility solutions,

whether based on common mobile devices or

sophisticated machine-to-machine systems,

provides another set of potential data

streams for either analysis or condition-based

monitoring activities.

In support of this, the trend toward an

integrated operations model – providing

common, standardized data for improved

processes and enhancing the ability to detect,

analyze, and show trends in operational data

aberrations – helps to significantly facilitate

optimizing uptime. For example, by leveraging

a predictive/preventative model, oil and gas

companies can better determine if a piece of

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equipment is degrading or requires inspection

or maintenance, or should have its primary

duty changed based on fatigue or power cycles.

Compliance and incident response

The increased web of local, state, and federal

regulations that change and mature with

increasing activity of nonconventional assets

has increased compliance requirements across

the oil and gas lifecycle. Documentation

and the ability to show traceability across

structured and unstructured information

help demonstrate what activity happened

and when, so it is clear when the energy firm

has completed the steps necessary to avoid

incidents, mitigate impacts, resolve problems,

and prevent similar incidents in the future.

Comprehensive IM&A solutions for the oil and gas industriesTo become one of tomorrow’s

market leaders, oil and gas

firms must unlock the value

within the huge amounts of

data they have. HP can help

these companies leverage

the power of technology to

capitalize on, not simply adapt

to, challenges involving the

management of this wealth of

information. By implementing

robust operational data stores for structured

and unstructured information combined

with powerful analytics platform capabilities

designed to handle large volumes of streaming

and historical data, firms can reduce time to oil

and improve operational results.

HP works with oil and gas clients to reduce

costs across the value chain by mining,

collecting, and correlating historical data

to determine the root cause of operational

inefficiencies. The IM&A portfolio extends from

upfront enterprise information management

consulting to implementation of IM&A solutions

at the enterprise level. HP integrates its

algorithmic analysis capabilities from HP Labs

and Enterprise Services with the HP Vertica

platform for real-time structured data analytics

and HP Autonomy for optimizing unstructured

data analytics.

To learn more about solutions that can help you

optimize the oil and gas lifecycle, download the

viewpoint paper “Master big data to optimize

the oil and gas lifecycle.”

23.Oil & Gas Edition

Pump up efficiency with mobility While mobility solutions have long been used for transferring field data to the office for analysis, oil and gas companies are now seeing value in extending coverage to drilling and production locations. In so doing, they are creating a fully bidirectional, always-on, real-time infrastructure that can drive significant improvements in operational efficiency.

24. Oil & Gas Edition

Mobility – including machine-to-machine

(M2M) solutions – helps increase reliability,

enhances resource allocation, and provides

access to the real-time data that enables field

workers to be more productive. Armed with

their mobile device of choice or ruggedized

versions, field staff are able to:

• Manage work schedules efficiently and

reduce downtime

• Maximize access to a limited and often

shrinking pool of subject matter experts by

receiving guidance on field problems and

operations remotely

• Document field conditions and accurately

convey situations to supervisors, subject

matter experts, and third-party analysts for

prompt guidance and problem-solving

• Enable in-the-field decision-making with

real-time access to drilling information, well

management applications, maintenance

records, inspection logs, and environmental,

health, and safety data

• Check inventory data or initiate the

procurement process for replacement parts

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Furthermore, field workers are also better

integrated into the management command and

control system. Mobility solutions with location-

based services (LBS) allow supervisors to adjust

workers’ task assignments to meet changing

conditions throughout the day. These real-time

adjustments keep limited resources continuously

prioritized, dispatched, and productive.

Put mobility to use both upstream and downstreamNew mobility solutions extend and integrate

rich, real-time communication across the

primary phases of the oil and gas industry while

helping to integrate the value chain through to

pipeline, wholesale, and retail distribution.

As exploration and production assets,

engineers, and other subject matter experts

become more geographically dispersed,

frequent communication and operational

integration are crucial. Drilling in challenging

physical environments and hazardous locations

comes with high operating expenses. While

downtime is never wanted, it is unacceptable in

these situations due to the astronomical costs.

Mobility reduces the delays that can occur in

dispatching, navigating, and decision-making.

Mobility also aids production by introducing

more cost-effective precision in managing,

maintaining, and repairing oil and gas assets.

Workers can be dispatched to a new problem

and provided with the navigational guidance

to solve it directly. RFID tags or bar codes

reduce errors that occur as a result of human

error inputting serial numbers and ensure that

workers know they are working on the right

piece of equipment.

Armed with access to maintenance records

and engineering drawings, workers can more

proactively address potential problems. They

can also search logs to find prior fixes, and

notify their supervisors to verify that the

repairs were successful.

M2M sensors also provide operational

benefits. These wireless sensors provide

the granularity of data and LBS information

needed to determine and isolate problems.

When alerted by these sensors, mobile-

equipped supervisors and field workers can

mobilize more efficiently to solve the problem,

ultimately reducing downtime, streamlining

trips to remote locations, and better

controlling maintenance costs and spend.

Harness the power of mobilityTo learn more about how HP can help oil and gas

companies leverage mobility solutions to achieve

operational excellence across the entire value

chain, read the viewpoint paper “Maximizing the

benefits of mobility for oil and gas.”

26. Oil & Gas Edition

What’s driving increased security needs?Security threats to the oil and gas industry –

whether physical or virtual in nature – have

the potential to make a huge, destructive

impact on firms and even the global

economy. From compromising sensitive

or competitive information to disrupting

power, the effects can be far reaching.

Unfortunately, securing today’s oil and gas

supply and the supporting infrastructure is

no simple task. Modern attempts to breach

oil and gas enterprise infrastructure and

data are characterized by sophistication,

agility, complexity, and coordination.

The need for enterprise-wide protectionOil and gas companies must secure the

enterprise to protect business operations, the

reputation of the business, as well as national

and international energy supplies. With immense

reliance on energy, security breaches for energy

Once more unto the breach: Comprehensive security in the digital age

27.Oil & Gas Edition

companies can be far more crippling overall than

security breaches of financial systems.

In the oil and gas industry, events like breaches,

the proliferation of remote technologies, and

compliance failures are driving the need for

comprehensive security strategies – strategies

that incorporate hardware, software, and

services to address vulnerabilities. But a

number of challenges stand in the way of

developing that comprehensive security

strategy. These challenges include:

• Legacy security portfolios – Developed

incrementally with building blocks, legacy

portfolios typically result in gaps and overlaps

in protection because they are not integrated.

• Sophisticated threats – Security protection

becomes increasingly complex over time.

• Diversity of users – Employees, third

parties, and joint venture partners make it

difficult to establish and enforce uniform

security measures.

• Integration within infrastructure – Multiple levels are being integrated, which

means that vulnerability in one level can

lead to vulnerability in another, as with

linked applications.

• Dynamic threats – The list of threats

is constantly changing, and adequate

protection one day does not mean it’s

adequate the next.

• Culture – Existing company culture

can be resistant to intrusive security

implementations.

Strategic considerations for enterprise-wide security and protectionA comprehensive framework

Threats, along with the proliferation of

potential entry points, make a siloed

approach to cybersecurity obsolete. Oil

and gas security based on a patchwork of

departmental or business unit solutions

is now too weak to counter current and

emerging threats. Instead, HP focuses on

securing the enterprise with an end-to-end

framework that takes a holistic approach to

understanding the business and its data.

The HP security architecture considers multiple

layers within your enterprise, including

governance, operations, data, networks,

applications, and endpoint security. For oil

and gas companies, it is particularly important

to address security concerns associated with

control systems – such as SCADA systems – and

smart endpoint devices that can be controlled

remotely. Existing processes such as identity

management and virus detection will need

to be addressed along with new processes

associated with data privacy and intrusion

countermeasures.

28. Oil & Gas Edition

Data privacy and security issues require enterprise-wide security architecture

Due to the actions of privacy advocacy groups

as well as legislative and regulatory bodies, oil

and gas firms must accommodate more data

privacy and security requirements than ever

before. These requirements and regulations

come with punitive financial penalties for the

company itself and for its executives.

To deal with security issues effectively, oil and

gas firms need an enterprise-wide security

architecture and need to develop processes

that safeguard data privacy and security. In the

case of data privacy, for instance, it is necessary

to create new data-type groupings within the

data taxonomy of the enterprise. These new

designations support applications, networks,

and devices to prevent unauthorized sharing or

disclosure of customers’ private data and the

firm’s own competitive data.

Today, enterprises need to build a robust

security posture to address the vulnerabilities

they face with enormous amounts of

unstructured data and related automated

data handling. Unstructured data, including

portfolio, geophysical, engineering, and

asset development documents, needs to be

integrated and secured as its high competitive

value attracts sophisticated assaults.

An enterprise cybersecurity integration

framework can help counter these threats while

delivering more value. One of the benefits of

a comprehensive security framework is the

ability to protect the large data sets that may

be mined for business intelligence. If handled

inadequately, the data becomes vulnerable

to unauthorized exposure through websites,

emails, notification texts, or public portals.

The consequences of this unwanted disclosure

to a company’s reputation, not to mention its

bottom line, can be devastating. Therefore,

to increase the privacy of the data, security

architectures must be linked to enterprise

data architectures that have been upgraded to

accommodate unstructured data.

A secure data strategy considers information across its lifecycle

A comprehensive security architecture

considers processes from beginning to end. The

enterprise security architectures developed

by HP incorporate this lifecycle approach to

data security from the initial data capture

to archiving. With the increasing demand for

business analytics, this lifecycle approach to

security is becoming even more crucial as the

data itself has value and should be protected as

well as the applications that access it.

Integration of legacy and next-generation technologies provides end-to-end view

Many progressive oil and gas companies have

encountered difficulties integrating intelligent

oilfield technologies with legacy point-to-point

technologies because of the required data

volumes and the complexity associated with

integrating disparate systems. With the trend

toward integrated operations, overcoming

difficulties with integrated architectures,

toolsets, and strategies becomes more critical.

These oil and gas companies most often

turn to service-oriented architecture (SOA)

29.Oil & Gas Edition

approaches in which they employ enterprise

service bus (ESB) toolsets, agile development

methodologies, and SOA governance. Used

correctly, SOA tools and architectures can

be powerful enforcers of enterprise security

policy. Used incorrectly, they can leave data

and processes unsecured. To successfully make

the move, SOA approaches must incorporate

adequate security design and testing.

A major element of an end-to-end enterprise

security architecture is granular visibility into

essential operations. Oil and gas companies

must be able to provide complete operational

monitoring, policy management, and

compliance, as well as generate regulatory

reports. Enabling this type of environment

demands a multifaceted view and is critical for

the cohesiveness of the overall architecture. To

be effective, the enterprise security architecture

should provide a robust security portal capable

of managing dynamic data inputs from

heterogeneous sources; the ability to generate

real-time alerts and updates to web, text, and

mobile users; and the functionality to support

regular compliance reporting.

Security demands a comprehensive framework and approachSecuring enterprise data in the oil and gas

industry is an evolving process that requires

a deep understanding of how to incorporate

protective measures in every element of

the infrastructure. Oil and gas companies

can ensure the security of their intellectual

property to succeed in an ultracompetitive

marketplace by developing a comprehensive

framework that accommodates complexity

in identity authentication, facilitates

collaboration and mobile access, and delivers

security beyond the firewall.

To learn moreFor details on the HP Enterprise Security

Services portfolio, click here.

• Security Consulting Services

• Managed Security Services

• Security Governance Services

Click here to learn more about market-leading

HP software that delivers security intelligence

spanning IT operations, applications, and

infrastructure. This solution set includes

industry-leading security toolsets such as:

• HP ArcSight security visibility software

• HP Fortify application security software

• HP TippingPoint network security software

30. Oil & Gas Edition

Considering the cloud? Follow three big rules to get started.

Accelerating the process of locating and producing oil and gas is a key success factor for the industry today, and harnessing massive amounts of data to generate insight is a critical requirement. The need to process information faster has compelled oil and gas companies to become early technology adopters. Through the years, technology can be credited for many industry advances and efficiencies, thanks to high performance computing, remote operations, or remote processing.

Cloud computing has the potential to once

again help accelerate the time to first oil,

and one would imagine an industry of early

adopters would jump on this new opportunity.

However, many oil and gas companies struggle

with inflexible, legacy infrastructures, and

competing technology priorities such as

security and mobility. Consequently, the oil and

gas industry has been slower to adopt the cloud

services model than other industries.

Defining the cloud

The National Institute of Standards and

Technology (NIST) defines cloud as “a model

for enabling convenient, on-demand network

access to a shared pool of configurable

computing resources (e.g., networks, servers,

storage, applications, and services) that

can be rapidly provisioned and released

with minimal management effort or service

provider interaction.”

Cloud embodies five essential characteristics:

• Usage-based metering and billing –

Cloud must offer and account for

“pay-as-you-go” capabilities.

• Reachable – Companies are able to leverage

the network with which the cloud collaborates.

• Self-service – Provide a simple, hassle-free

way to invoke its service and allow clients

to sign up, provision, and use compute

resources without waiting.

31.Oil & Gas Edition

• Resource pooling – Identify and provision

resources to clients without regard to the

physical location of the resource.

• Elastic – Users can expand and contract

usage based on their true application

execution time frames.

Cloud-based services can be delivered in various

ways. The three most common cloud models are:

• Infrastructure as a Service (IaaS) – Users

can rent storage, processing, network,

or other compute resources to build the

platform needed to support applications.

• Platform as a Service (PaaS) – Users are

given an environment to build an application

and use the resources of the hosting cloud.

• Software as a Service (SaaS) – Users

leverage business processes, activities, or

tasks done in full-featured applications that

are available by network (Internet) access and

are contracted for use on a subscription basis.

These services can be delivered through private

clouds, public clouds, community clouds, or

hybrid options.

Three big but simple rules for selecting cloud optionsSelecting a model for cloud usage is

determined by business requirements that

are driven by internal needs and rules from

clients, partner-specific stipulations, and

industry regulations regarding what data can

be accessed by whom and when. Key rules for

consideration include the special security and

service-level agreement (SLA) requirements

mandated by the industry. Additionally,

gatekeepers are essential for public cloud

governance. While not an exhaustive list, the

following rules cover most of the basics.

Rule #1 – Legislative and regulatory mandates, combined with business and partner rules, will determine each application’s ability to leverage the variations of cloud.

The biggest challenge to public cloud use for oil

and gas pertains to how proprietary information

is handled and secured when it’s not being

accessed by an application. The volume and

value of proprietary data, trade secrets, process

details, and the like are all magnified in an

industry with so much competition.

While access and transit of data can be tracked,

public clouds don’t necessarily indicate

where data is stored. In applications that use

native cloud access methods, the data might

physically reside on a device that is outside the

country being served and has the potential to

violate local regulations.

Rule #2 – The practice of requiring and managing to SLAs dictates viable cloud variations.

Infrastructure that supports the execution of

applications utilized by field workers typically

requires guaranteed service levels. Public

cloud providers find it difficult to manage to

32. Oil & Gas Edition

an SLA because they can’t necessarily control

system demand. Oil and gas companies tend

to be more likely to sign up for an SLA in

private or community cloud environments

where data location may also be specified, as

these models facilitate the implementation

of processes and governance models to assist

with control of the environments.

Rule #3 – Implementing a public or private cloud policy and enforcing it through a gatekeeper is key to success.

Public cloud offerings allow access to a subset

of resources and the ability to perform limited

testing on an application. They provide the

ability for anyone with a credit card to obtain

fast service. They can eliminate the “hassle

factor” applications development team

members often feel when they are trying to

obtain resources to complete assignments;

however, they can also lead to the next level

of “technology sprawl.” Public cloud is also

a strong option for production applications

in which the oil and gas company wants to

deliver information to the public, such as when

deploying a marketing campaign.

From an enterprise perspective, a public cloud

use policy must be established and enforced

through a gatekeeper governance model.

That policy must include clear directions on

what applications are eligible for public cloud

development. It must remind team members

that proprietary data cannot be used in testing

in non-secured environments. It must establish

time limits for use of public cloud resources

and must enforce the cleanup of resources no

longer required. The policy should require team

members to log their use of cloud, including

information on what application is exposed, what

data is being used, and how long the resources

will be needed, as well as for what purpose.

With these policies in place, alternatives

must then be offered through either standard

infrastructure offerings or private clouds that

provide the benefits and promise of the cloud,

yet respect and represent the reality of managing

complex compute and data environments.

HP as your cloud partnerHP provides cloud services to oil and gas

companies. From automated, flexible testing

services to support for complex analysis of large

data sets for compliance activities, business

needs are increasingly being met through the

flexibility offered by cloud models.

HP Converged Cloud Solutions, integrated

with enterprise security and mobility

capabilities, mitigate specific industry

concerns while providing enhanced access in

the field. HP addresses concerns for the oil

and gas industry relative to:

1. Security of information in the cloud. HP

Security Solutions enable protection,

management, and tracking of data. This

allows only approved users to access data,

to manage which users have access to what

data and where, and to enable tracking of

where valuable and sensitive corporate and

33.Oil & Gas Edition

client data has been copied and moved.

The solution includes providing HP cloud

services in HP data centers that are certified

by the U.S. Federal Government as meeting

NERC-CIP and NIST-800 security standards

or supporting clients in meeting these

standards for private or hybrid clouds.

2. Scale and speed of applications required

for 3-D and 4-D rendering and graphic

accelerators, including those applications

that have yet to move off the workstation.

Cloud-based processing enables

unprecedented speed and scale for support

of these applications.

3. Stringent response and availability targets

as well as the need for ironclad high-speed

continuance and recovery options.

4. Cultural resistance to moving to a service-

based solution versus building and owning

the infrastructure.

In addition to these business and information

concerns, HP also addresses issues regarding

cost, access, and capability. These include:

• Cost-efficiency and heightened return

on investment expectations, especially

in relation to new ventures and remote

exploration start-ups.

• Known price points for cloud-based IT

services that offer an immediacy of access to

off-the-shelf delivery, removing much of the

guesswork from those activities.

• Secure mobile access beyond transferring

field data to the office for analysis, and

mobile coverage that extends to drilling and

production locations.

• Integrated management and support for

the integration of local, automated, and

remote operations.

• Information management solutions

that help collect, process, and analyze

information without investment in large

infrastructure, to enable the integration

of structured data, unstructured data, and

associated analytical processing.

To learn more about how HP can help you apply

these big three rules of cloud computing, visit

the website.

Why HP?Energy producers around the world are searching for new reserves and looking for ways to efficiently produce existing supplies in-line with marketplace pricing. At the same time, they are working to balance supply and demand, ensure the security of the infrastructure and the supply chain, and reach new levels of operational efficiency. HP provides the people and technology solutions to help oil and gas companies achieve key business outcomes, including reducing time to first oil and creating a financially sustainable future.

By providing a broad portfolio of solutions, from security to information management and analytics (IM&A) to cloud and mobility, HP enables oil and gas companies to advance via a more predictive and preventative operating model. Ultimately, these solutions lead to increased production and optimized resources in all segments of the business. These and other HP capabilities make it possible for energy firms to leverage information technology in support of conventional and non-conventional production and operations activities while managing risk and responsibilities.

With decades of experience helping clients around the globe, HP understands the nuances of the oil and gas industry – from industry-specific issues and challenges to opportunities and best practices. Our innovative solutions provide the necessary infrastructure models and mobile application capabilities to facilitate field workforce activities, collaboration, and business process standardization – helping oil and gas companies deliver outcomes that matter.

HP:5/7Serves five of the top seven national oil companies around the globe

Leading ITIs a leading provider of IT services to the oil and gas industry worldwide

$3.5 billionInvests $3.5 billion in research and development each year

25 yearsHas been delivering ruggedized IT solutions and hardware to remote locations for more than 25 years

35.Oil & Gas Edition

Co-innovatorIs the co-innovator of the new information ecosystem, the Central Nervous System for the Earth (CeNSE), which delivers an unprecedented level of information to support increased analysis of conventional and non-conventional resources

50 PBManages the world’s largest private cloud with 50 PB of storage

575 cloudsPowers 575 private and public clouds with HP CloudSystem

10 yearsHas been developing mobile applications for more than 10 years

Employs 1,000Employs more than 1,000 mobile application development professionals with cross-platform experience30 + 115

Has more than 30 mobile UE experts and more than 115 mobile testing experts 3rd largest

Is the world’s third-largest managed security services provider1 million apps

Helps secure more than 1 million applications and 2.6 billion lines of code 600 patents

Has more than 600 security patents

Employs 3,000Employs more than 3,000 security and privacy professionals Reduces costs

Can reduce application operating costs by 30 to 60 percent, application maintenance by 50 to 65 percent, and application development costs by 30 to 50 percent

150+ successesHas more than 150 application modernization client successes

18 yearsHas 3,500 information management and analytics consulting professionals, averaging 18 years of experience

Fortune 500Has provided IM&A services to Fortune 500 clients globally, including leading integrated and non-integrated oil and gas firms, for more than 16 years

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© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

4AA4-3732ENW, Created October 2012

Learn moreLearn more by visiting hp.com/go/oilgas.