Upstream Oil & Gas Operations

8/8/2019 Upstream Oil & Gas Operations

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Prepared by: Group 5Keshav Madan ~20091016Kesher Sumeet ~20091019Mayur Khatri ~ 20091024

Prerna Singla ~20091029Pulkit Bhatnagar ~20091030

Rutvi Jain ~ 20091042

Saurabh Dubey ~20091046

Upstream Oil & GasOperations


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Before they can finalize a project plan theyneed hard data that reveals what it will take to

get the wells to perform at optimal levels.Similarly, investors need to have confidence in

their forecasts to be assured of a worthwhilereturn

Most oil and gas operators areexperts at managing wells, notdata points.

Jeff Dyk


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Integration in the Upstream Three Domains


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Sources of Value FromIntegration


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Framing the Problem Integration Challenges


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Notable Initiatives


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Implementing standards forimproved communication

Several data standards are used to increaseintegration for exploration, drilling, andproduction.

Currently Big Chasm exist between datastandards and business process.

Example: Common data standard forgeophysical data, which is used globally.The tools may include built-in

adaptorsProduction accounting systems

ProcurementMaintenance

ChallengesDisparate sources and nature of dataComplex workflows and different toolsets


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Equipping Managers forBetter Asset Management

It empowers people in the field with currentbusiness information.

Strong local control of operations reported to

be most effective in decision-making.It leads to faster review and approval.

Provide additional information back to fieldpersonnel via Web portals like automationof invoicing and providing access, viahandhelds, bill of materials (BoM).


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Tools for Improving WorkforceEfficiency

Aim of E & P companies is to have fewerpeople in the field and thus people in officeaided by various IT tools.

Information from the field frequently isessential to focus resources mosteffectively. It helps in improving theworkforce efficiency.

Due to the uncertainty in achieving apositive return on investment (ROI) everyinvestment is made carefully in terms ofboth ROI and immediate impact on profits.


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Current Workflows andProcesses


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Gaps in Integration

:Three specific technical difficulties.1 - -Too many point to point solutions

.2 - Supply chain technology service company toproducer

.3 Gas imbalances between production and revenuedata


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Relative usage of interoperability on a scale of 1(hardly used) to 5 (Extensively used)

Use of InteroperabilityTechnologies

Technology Usage Factor Java 3.3

.Net 2.8

Standards 2.3

Web Services 1.9

SOA 1.2


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Interoperability Technologies While . et ,scored somewhat lower than Java respondents agreed

.that their organizations are increasingly migrating to Net in

.a systematic way

Use of Java &is concentrated in G G technical computing.applications

WITSML -is used extensively in Norway and by some of the super,majors and to some extent in service companies but not yet

within the independents

eb services have been billed in the industry as the answerto many integration needs

-Service oriented architecture ( )OA had the lowest utilization.of all the technologies represented


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n e gen n egra onFramework

Integration is the key to realizing the vision of.the digital oilfield

Producers are now realizing increased value fromvertical integration from subsurface throughenterprise systems

- -This framework would enable the plug and play of- - ,best of breed applications and possess four:fundamental characteristics

I. Scalable

II.Support standards

III.Reduce project timelines, lifecycle costs, andrisk

IV.Support security policies


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n integration framework increaseroductivity by making informationvailable across the enterprise .


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Case Study- Laredo PetroleumInc.

Laredo Petroleum, Inc., an exploration andproduction company headquartered in Tulsa,Oklahoma. Laredos strategy is to makestrategic acquisitions and participate in jointdrilling ventures that have upside potential inthe targeted area of the Mid-Continent andPermian Basin Regions of the U.S.

Laredo acquires and develops natural gas, oilreserves, and strategic gathering systems. The

company actively seeks and evaluatesacquisition opportunities to create valuethrough operational improvements, gatheringsystem expansion, development drilling, and

exploration ventures. Laredo uses O & G TAMto automate these activities. The system pulls


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Total Asset Manager-Information Builder


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What TAM does?

TAM automated well lifecycle strategy. It

pulls data from multiple applications intoone trusted source for easy access and

utilizationFrom the TAM system, The company created

dashboards that help highlight problematicareas quickly and easily. Now, technical

professionals spend most of their timesolving problems, not wasting their timesorting through cumbersome databases.


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Cont...

TAM tracks key performance indicators (KPIs)that help Laredo improve :asset visibilityminimize downtimeincrease capacity

manage capital burn rate, and other criticalbusiness functions

Its KPIs and dashboards include :Capital Budget ManagementDrilling and Well workLease ExpirationsFailure AnalysisProduction Performance


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TAM Reports

The Daily Production Report, presents detailsabout daily and forecasted production,with a seven-day rolling average for one ormultiple wells.

The Base Production Report shows themonthly value of forecasted base

production and monthly actual production.The Lease Operating Expense Report reveals

what Laredo budgeted for particular wells

that month and where they stand now. The Lease Expiration Report tracks

thousands of leases on many pieces ofland to make sure those leases are

renewed correctly and on time.


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Cont...

TAM delivers daily reports about the status ofeach well. These reports help Laredo optimizebusiness processes to maximize their assetson a daily basis.

For example, the Daily Operations Report is sent

out by e-mail to the people overseeing thewells. It contains daily information about thework done on the wells, who did the work, jobcompletion status, and well productioncompared to seven days prior.

Key data points within the report are associatedwith thresholds, and TAM uses alertingtechnology to notify people when thresholdsare exceeded. This proactive function keepsmanagers abreast of progress towardsscheduled goals, budgets, and completion


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Application OF BIDM InUpstream

Oracle offers complete data managementsolution for E & P using BI and DM.

Integrates 3-D geospatial visualization withstructured and unstructured operational data.

Offers the fastest time to value and lowest costof any integrated oilfield solution.

SAS can scrutinize data across upstream.Can streamline the requisite EDA.IBMs Cognos provides users who can move

quickly from summary level to granular detail,exploring large information sets with drag anddrop techniques.

Reservoir surveillance and performanceoptimization.


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Cairns Process Redesign

Pay

m

en

t

OLD PROCESSOLD PROCESS

Purchasing

Cairn receiving

Accounts payable

SupplierPurchase

order

Copy ofpurchase

orderGoods

Receivingdocument

In

voi

ce

500 Employees

NEW PROCESSNEW PROCESS

Purchasing

Cairn receiving

Accounts payable

SuppliePurchase

order

Goods

Pay

me

nt

125 Employees

Data-base


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Networked vs. HierarchicalOrganization

Hierarchical Organization Networked Organization

Form al

H ig h ly stru ctu re d

M a n a g e

C o n tro l

D ire ct

E m p loy ee s a costIn fo rm a tio n m a n a g e m e n t

-owned H ie ra rch ica lO rg a n iza tio n s

R isk a v o id a n ceIn d iv id u a l

co n trib u tio n s

In fo rm a l

Lo o se ly stru ctu re d

/D e le g a te le a d/O w n e rsh ip p a rticip a ti

o nE m p o w e r

E m p loye es a n assetIn fo rm a tio n sh a re d

o w n e rsh ipFla tte r O rg a n iza tio n s

R isk m a n a g e m e n t

Te a m co n trib u tio n s


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ConclusionWhat Benefits Would the Right Solution

Bring?

Improve reservoir drainage

Efficiency and productivity

Equipment condition monitoring andreliability

Supply-chain integration

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Upstream Oil & Gas Operations

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