Oilfields of the future – today

With Rohde & Schwarz, BT Global Services, m:pro IT Consult

Three industry experts debate the tangible benefits of digital oilfield technologies. The panel includes Rohde & Schwarz’s Eshwarahally S. Vikas, Matthew Owen of BT Global Services and Jens H. Schroeder of m:pro IT Consult.

The digital oil field: quicker decisions in a rapidly changing market

“A good decision is not made by transferring data or even effective communications. Reaching a good decision is a process. You need to understand who the key stakeholders are at each step. You need the right-time information for them. ”
-Jens Schroeder, m:pro IT Consult

O&G. Oil & Gas producers globally are currently investing heavily in ICT to develop their digital oilfield initiatives, how will this investment translate to increased production rates and greater operational efficiency?
Matthew Owen. The goal of digital oilfield initiatives is to improve the economics of production and to turn a producing asset into an efficient ‘hydrocarbon factory’ where inputs, processes and outputs are managed and optimised on a real time ‘dashboard’. This requires adoption of new working practices and collaboration tools, such as audio and video conferencing and unified communications (UC). The result is accelerated and improved decision making as experts can access critical data and global teams can convene meetings instantly, regardless of location. Where digital oilfields have been fully implemented IOCs (international oil companies) report recovery, production and efficiency gains into double figures.

Jens H. Schroeder. The investments are essential and spot on in this distributed business. For me the biggest gains come from good decisions and the required collaboration to reach, communicate and implement them. This involves that the key stakeholders and experts view, exchange, and react on consistent and reliable information to known quality. This follows the objective for the right information to the right person at the right place at the right time in no time – the right-time information.

Eshwarahally S. Vikas. Increase production rates goes hand in hand with increase operational efficiency. Modern ICT solutions and, in particular digital trunked radio systems, offer a far more efficient usage of available spectrum and provide the user with enhanced operational safety as well as the ability to replace multiple legacy systems with one more integrated solution. Examples being voice and data transmission, SCADA, fax, SDS and emails running via one safety-oriented network.

O&G. What are the main challenges faced by O&G companies when integrating new technologies and software in to their existing ICT infrastructure?
MO. A major challenge is the legacy of O&G companies’ historical ‘DIY’ approach to ICT which spawned applications, protocols and networks that won’t ‘talk’ to each other, multiplying the cost and complexity of IT deployments. Now, XML based, ‘SOA’ solutions enable data to be combined from multiple sources and manipulated in whichever application is favoured by the client. In BT’s experience, the most effective way to exploit the potential of SOA is to ensure that the converged IT environment provides a solid foundation for the application layers. We call this the ‘Services Oriented Infrastructure’ and  we produce roadmaps for our clients ensuring the journey to convergence is smooth and cost effective.

JS. Network and telecommunication companies have done an excellent job bringing together the different devices such as phones, computers, instrumentation and the multiple communication means such as cable, satellite and mobile networks. This facilitates the exchange of data – today relatively fast and reliable. In my opinion, one of the main challenges is still on the next level, when data is turned into information. What is the right-time information? Specific technologies and software applications individually have a big contribution. However, integration at this level is required to get to right-time information and enable meaningful collaboration. A common answer to questions about challenges in new technologies and new software is ‘The Human Factor’. This answer will stay valid until we really pay attention or are more ready for it. How can we really support the work of the individual? Obviously not by sending more data, more emails, more invites to meetings and teleconferences, or more training sessions for a new and great software app.

ESV. Systems full compatibility is one of the major challenges faced by the oil and gas companies. It is therefore critical that a customer seeks a vendor that actively displays both the capability and the proven track record of successfully integrating their newer products into existing legacy systems. The importance of the preparation and specifically, the transfer of knowledge, leading up to this point cannot be stressed enough. Prospective users of new systems should ensure that their vendors have a robust and capable training concept, backed up with the right personnel, to ensure that the transfer of skills and qualification of staff is effectively carried out prior to the commencement of operations.

O&G. How do your solutions help producers better gather and analyse oilfield information?
MO. Beyond the core networked IT environment, BT has focused innovation on two key aspects of data collaboration: 3D seismic graphics and real-time process monitoring:

BT Graphics Acceleration Technology achieves over 99 percent visually lossless compression, enabling geoscientists or engineers to remotely view, manipulate and collaborate on complex 3D seismic or CAD models from anywhere, using whatever communications are available.
 
Then we have BT Real Time Data Exchange (“RTX”). Historically, third party monitoring of production processes and machinery to provide condition-based maintenance needed separate links between each supplier’s IT network and each item being monitored, running into hundreds of links per asset. BT RTX simplifies this to a single secure link into the BT network, with a ‘drag and drop’ interface to assign data streams to the appropriate, securely authenticated suppliers.

JS. In our solution/integration platform, we concentrate on three important areas:
• Smarter data management and integration. Here we collect, distribute, abstract, aggregate, correlate, and translate data from all sources into information. The objective is to have the information ready in any dimension if and when required.
• Easy to use but powerful user interfaces. It is impossible to foresee all information requirements of all persons in all situations. The objective is to access and present the information in a highly interactive, intuitive, and common user interface. Fast navigation, drill down, and analysis tools also put the surrounding information at your fingertips.
• Effective collaboration and workflow. With workflow as a building block, this level puts the areas above to work in a collaborative and documented fashion. The objective is to provide synchronous and asynchronous communication, conferencing, and co-ordination activity through a variety of devices and channels.

ESV. TETRA networks enable instant information availability to help make quick decisions to confirm, modify or change the producer’s strategy and thereby avoiding unnecessary costs and saving time. One example would be the collection of telemetry information throughout a radio communication network and the transmission into a control room. The so-called SCADA application as well as instant resource location and automatic vehicle location via GPS can be run via one safety-oriented network.

O&G. What role do effective communications and data transfer technologies play in ensuring accurate oilfield decision making?
MO. Good decisions rely on accurate supporting data being accessible by the key people at the right time. Collaboration solutions such as BT RTX and Microsoft Office SharePoint Server (MOSS) ensure information that was previously captured in multiple reports, departments, and geographies, taking days or weeks to access and analyse, can now be quickly viewed and acted on in real-time to make faster, better decisions. For instance, one major US oil producer asked BT to help improve the availability of daily production KPIs from a large, widely dispersed asset. BT built a KPI dashboard using MOSS so that familiar Office components like Excel are now used to drive real-time decision-making, improving the asset’s operational efficiency.

JS. They are key enablers. However, a good decision is not made by transferring data or even effective communications. Reaching a good decision is a process. You need to understand who the key stakeholders are at each step. You need the right-time information for them. You need to know at which step in the process you are. Do you remember your last visit to the opera? The conductor has not yet arrived but the orchestra is already seated. Each professional and skilled instrumentalist plays essential notes on his instrument. The dissonance strikes you. The conductor enters the hall and a moment of silence relaxes your ear. The program begins and you are overwhelmed by harmony and precision. Coming back to the question, you need a conductor and for the business you even require many orchestras simultaneously play in harmony. You need an integration platform.

ESV. Effective communications and data transfer play a pivotal role in ensuring accurate oilfield decision making. This is not only valid in normal daily operations but also in emergency situations as it:

• Provides concrete basis when making decision (no assumptions)
• Reduces doubt so no time wasted
• Allows easy double checking, if required
• Enables remote logging in
• Allows remote accessibility, which saves both time & money
• Reduces false alarms and also saves both time and money
• Minimises risk

O&G. Do you expect elements of the digital oil field concept to become more prominent in streamlining O&G companies overall business processes?
MO. The ‘DOF’ concept is an upstream example of a move towards the ‘real-time enterprise’ which in recent years has seen large scale deployment of business intelligence and workflow tools integrated with ERP. The common objective is to give senior executives ‘dashboards’ of knowledge mined from critical real-time data right through from the oilfield, refinery, trading room, down onto the fuel forecourt. Many DOF technologies are already adapted and shared between the upstream and downstream businesses, and this will only accelerate as the IT environment increasingly standardises around IP and solutions components become more modular.

JS. I actually see two areas to become more prominent. One area is integration at the application/business level and the other area is distributed collaboration including smarter workflow solutions. Both are essential to capture, manage, maintain and execute business and communication processes. But on top of everything, don’t forget ‘The Human Factor’.

ESV. Absolutely yes, the digital oil field will allow more data to be collected from anywhere on the oil field and to be sent to many operational and research centres simultaneously enabling different interpretations to be gathered and accurate and quicker decisions to be made in the fast changing market environment.

About the contributors:

Jens H. Schroeder is President/CEO of m:pro IT Consult, a project services and software products company that enables petroleum refining, petrochemical and other industries to achieve total integration of information sources and applications. Schroeder has over 20 years of experience in the execution of international projects, IT consulting and software development.

Matthew Owen is Head of Marketing, Oil & Gas, at BT Global Services. Owen has been with BT since 1998, focused on innovation and driving new networked IT services solutions into industries including oil and has. His aim is to move the BT brand beyond its roots in communications to be recognised as a global IT services partner to oil and gas companies.

Managing Director Eshwarahally S. Vikas is Head of Sales and Marketing of Rohde & Schwarz products in Middle East & Africa. He has been with the company for over 12 years and has worked extensively in the Middle East and Africa. He is an engineer by profession and has a MBA degree.