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Streamlining Project Controls for Midstream & Downstream :The Technology Advantage
Rob Burton, Major Projects Program Manager, TransCanadaBalaji Sreenivasan, Founder/CEO, Aurigo Software
Agenda Oil & Gas Industry TODAY
Technology Play in Upstream Oil Extraction and
Drilling
Waterfall Effect | Midstream / Downstream
TransCanada Business Environment
Technology Selection and Approach
Saving Money and Time for TransCanada
Supply & Demand - 2015
- Increased supply
- Saudi Arabia equally surprised
- Economic conditions drove efficiency
- Technology will continue to have long-term impact on lowering costs
Energy Prices Crashed in 2014
Reasons for Price Drop
Increased efficiency of production
New sources via fracking, Shale Oil and others
Made possible with technology
Disruptive approach from smaller players
Application of Technology Brings Costs Down
The Waterfall Effect – Focus on Midstream & Downstream
Early Stage of American Energy Renaissance primarily in
upstream exploration and production (E&P)
Technology will continue to lower costs in the midstream and downstream markets, just as it
did for upstream
The next phase is midstream and downstream, with an increase in expenditure by over
250%*
Technology will lower capital construction costs for midstream and downstream
Technology can control and reduce costs of constructing pipelines, storage terminals, and
refineries by up to 6%.
Technology can control and reduce costs of constructing pipelines, storage
terminals, and refineries by up to 6%
*2014 Outlook on the O&G Industry by Deloitte
Unparalleled Portfolio of Complementary Energy Infrastructure Assets
‾ One of North America’s Largest Natural Gas Pipeline Networks
‾ 68,000 km (42,000 mi) of pipeline‾ 406 Bcf of storage capacity‾ 14 Bcf/d or 20% of continental
demand‾ Premier Liquids Pipeline System
‾ 4,250 km (2,600 mi) of pipeline‾ 530,000 bbl/d or 18% of Western
Canadian production‾ Largest Private Sector Power Generator
in Canada‾ 19 power plants, 10,900 MW
‾ Total Assets ~ $57 billion
TransCanada Business Environment
TransCanada Business Environment
* Certain projects are subject to various conditions
including corporate and regulatory approvals.
$45 Billion Portfolio of Commercially Secured Projects*
⁻ Industry-leading growth portfolio
⁻ $24 billion of liquids pipelines
⁻ $19 billion of natural gas pipelines
⁻ $2 billion of power generation facilities
⁻ All backed by long-term contracts or a
regulated cost-of-service business model
TransCanada Project Controls Solution
• Full automation of all processes
• Better decisions with analytics
• Reduce overhead and overages
Increase Productivity
• Fully integrated GIS information for inspections
• Integrate quality metrics (NCR, etc.) with SAP
LeverageSAP and GIS
• Direct data entry in the field
• Field to web, web to SAP
• Analytics everywhere
Enable Mobility
• Intelligent data in addition to document control
• Project controls, quality, construction management
• Additional modules - land, scheduling, pipeline
Integrated Solution
What We Did/Where We’re At
⁻ Identified and reviewed 25 existing
technology solutions in Major Projects
⁻ Assessed and ranked over 30
technologies in total
⁻ Piloted with 2 vendors
⁻ Selected Aurigo Masterworks to enable
our processes
⁻ Launched the Technology Enablement
Project in November 2014
Development
2014
Implementation
1 – 3 Years
Operation
Ongoing
Initial Configuration Phase
Project Controls (future)
Engineering
Field Construction
(Linear)
Document and Drawing Management
Project Controls (future)
Land Management
(future)
Business Challenges
-Increasingly complex regulatory environment-Require better data capture, analysis and reportingcapabilities
-Rapid growth to support $45B project portfolio-Require process workflow to move away from the “experience” model
-Diverse project structures, processes and systems-Capital Project Management System in place but notdetailed enough at procedural level-Require structured guidance for project teams to improve efficiency and consistency of our project delivery
Solution: a single, integrated technology system to enable our capital project processes and procedures
Benefits to TransCanada
⁻ TransCanada is the premier builder and owner of energy pipelines in North America with pipeline projects to East, West and South of the US and Canada
⁻ Estimated investments at about $ 45 BN including Keystone and Energy East
⁻ Improve quality, reduce costly errors, regulatory compliance