Nikolaou

Digital Oilfield

Basics

Specifics

Lessons from Digital Oilfield:

Downstream
An Overview and Lessons Learned
Lessons from
Upstream

Conclusions

Michael Nikolaou
Chemical & Biomolecular Engineering
Petroleum Engineering
 Nikolaou
Digital Oilfield What Is the Digital Oilfield?

Basics • Orchestration of disciplines, data, engineering

applications, and workflow integration tools supported
Specifics
by digital automation
Lessons from • Early 2000: Emphasis on real-time optimization:
Downstream
– A process of measure-calculate-control cycle
Lessons from – at a frequency which maintains the system’s optimal operating conditions at all
Upstream times
– within the time-constant constraints of the system,
Conclusions
– whilst sustainably maximizing production,
– minimizing CAPEX/OPEX,
– environmental impact, and
– simultaneously safeguarding the safety of the people involved and the integrity of
the associated equipment

2
 Nikolaou Digital Oilfield:
Digital Oilfield Technology Enablers

Basics

Specifics

Lessons from
Downstream

Lessons from
Upstream

Conclusions

3 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Recent Digital Oilfield Experience

Basics • Production optimization

Specifics
• Drilling and completion

Lessons from
Downstream

Lessons from
Upstream

Conclusions

4
 Nikolaou
Digital Oilfield “People, Process, and Technology”

Basics
Behaviors Skill Sets
Specifics
Roles & Responsibilities Organization Motivation
Lessons from
Downstream Best Practices & Methods
Management Infrastructure
Systems
Alignment & Collaboration
Lessons from Data Architecture

Upstream Uncertainty Management Processes Technology

Requirements

Conclusions
Formal policies and procedures

Sustainable Improvement of production work-processes Value

Growth through proper alignment of factors Created

5 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Digital Oilfield Components

Basics

Specifics

Lessons from
Downstream

Lessons from
Upstream

Conclusions

6 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Executing a Digital Oilfield Project

Basics

Specifics

Lessons from
Downstream

Lessons from
Upstream

Conclusions

7 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Digital Oilfield IT Architecture

Basics

Specifics

Lessons from
Downstream

Lessons from
Upstream

Conclusions

8
 Nikolaou Of Parachutes and Feedback Loops:
Digital Oilfield Working Open and Closed

Basics

Specifics
Measure
Lessons from
Downstream
Action/
Lessons from Change
Analyse
Upstream

Conclusions

Decide Evaluate

9
 Nikolaou
Digital Oilfield Digital Oilfield Applications

Basics • Integrated Asset Management

Specifics
• Real-Time Drilling and Completions
• Real-Time Production Optimization
Lessons from
Downstream

Lessons from
Upstream

Conclusions

10 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Digital Oilfield Applications (Cont’d)
Integrated Asset
Management
Basics • Advanced geology and
integrated interpretation
Specifics platforms
• High performance computing
center for multi-scenario
Lessons from analysis and multi-million
cells reservoir simulation
Downstream • Automated reservoir history
match
Lessons from • Real-time down-hole
pressure and rate analysis
Upstream • Real-time reservoir
surveillance practices using
Conclusions seismic-based, electro-
magnetics, tracers,
streamline simulation and
data-driven
• Smart waterflooding
• Integrated forecasting
• Integrated planning and
scheduling
• Automated asset portfolio
management
• Surrogate and proxy
modeling of subsurface
11
Real-Time Production Real-Time Drilling &
Optimization Completions
• Automated workflows for well • Remote operating centers
test validation, well model • Remote geo-steering
update, and plant update. • Anti-collision optimization
• Real-time KPI calculations • Real-time weight on bit
• Continuous plant efficiency, optimization
uptime and availability • Real-time fracture
• Real-time integrated optimization
production optimization • RFID-based for downhole
• Virtual metering: multiphase completions control
flow rates, soft sensors, and • Smart diagnosis and by
zonal allocation exception
• Smart well monitoring and • Operations dynamic
control simulator
• Smart diagnosis and by
exception-base surveillance,
expert alarming
• Predictive advisory short-term
forecast
• Artificial lift diagnosis and
optimization
• Immersive collaboration
environments
• Remote operating centers
• Operations dynamic simulator
• Advanced process control
 Nikolaou Real-Time Production Optimization:
Digital Oilfield A Multi-Level Framework
Numerical,
External Scheduled Corporate Safe Operating
Analytical or Data
Basics References Downtime Targets Envelopes
Driven

Specifics Expected performance is Establish

Expected
Optimum Optimize & Live Model Establish
Models &
continuously challenged by Forecast Forecast
updating optimum forecast Performance Status

Lessons from with corporate targets and

performance
current asset status
Downstream

Field Status
Expected
Slower
Surveillance Loop

Lessons from
Upstream Identify Gap Actual Establish Corrected actual Analyze and
Actual
or losses performance
performance performance Interpret

Conclusions
Asset is controlled by applying Establish
actions as a result of gap Faster Validate and
Actions to
analysis between actual and close gaps Surveillance Loop reconcile data
expected performance

Physical Measure and

Apply actions
Asset Gather Data

12 Source: Saputelli et al., SPE 84064-PA, 2005

 Nikolaou
Digital Oilfield Automation: A Multi-Level Framework

Basics Business Headquarters

Specifics Capacity Planning Design -Asset life cycle and installed based maintenance or growth
[months/years] -Supply Chain Management & Market and customer demands

Lessons from -Planning of injection/production plan and resources

Downstream Operational Planning -Planning drilling and workover resources
[months/years] -Supply Chain Management & Market and customer demands

Lessons from -Scheduling of injection/production plan and resources

Scheduling
Upstream [days/months]
-Opening and closing wells or partial completions
-Adjusting well operating parameters

Conclusions Supervisory Control -SCADA systems for coordinating flow stations and pipelines
[minutes/hours] -Gas distribution/optimization on a pipeline network
-Monitoring wellheads, multiples and flow stations

Regulatory Control -Flow, pressure and temperature in wells and separator

[sec/minutes] -Fuel injection to produce heat out of a boiler

Well & Surface facilities

Source: Saputelli et al., SPE 84064-PA, 2005

 Nikolaou
Digital Oilfield Multi-Level Automation in Downstream

Basics Business Headquarters

Specifics Capacity Planning Design

[months/years]
Lessons from
Downstream Operational Planning
[months/years]

Lessons from
Scheduling
Upstream [days/months]

Conclusions Supervisory Control

[minutes/hours]

Regulatory Control
[sec/minutes]

Refinery/chemical plant/...
Well & Surface facilities

Source: Saputelli et al., SPE 84064-PA, 2005

 Nikolaou Lessons from Downstream:
Digital Oilfield The Digital Process Control (DPC) Story

Basics • 1948 – Feasibility speculation, Scientific American

• 1949 – MIT paper suggesting DPC
Specifics
• 1952 – Shell discusses DPC
Lessons from • 1955 – ICI publishes book on DPC
Downstream
• 1956 – Measurements from DuPont plant in Niagara
Lessons from Falls transmitted via telephone wire to Burroughs
Upstream computer in Philadelphia; results sent back to plant;
implemented manually
Conclusions
– Supervisory and direct control
• 1959 – First DPC system (RW-300) on-line at Texaco
refinery, Port Arthur, TX
• 1960s – Management negative about high cost of DPC
• 1975 – Microprocessor-based Honeywell TDC-2000
 Nikolaou Lessons from Downstream:
Digital Oilfield The Model-Predictive Control (MPC) Story

Basics • 1976 – First paper on new kind of heuristic control

Specifics
• Late 1970s – MPC development, installations in US,
Europe
Lessons from
Downstream
• Early 1990s – MPC mature technology, widely installed
– Real-time optimization, direct process control integration
Lessons from • Early 2000s – Planning/scheduling, real-time
Upstream
optimization, direct process control integration efforts
Conclusions • Mid 2000s – Remote control of petrochemical units over
the Internet commercially viable
 Nikolaou Lessons from Downstream:
Digital Oilfield Unfulfilled Promises

Basics • Early MPC efforts thwarted by poor human-machine

communication
Specifics

Lessons from
Downstream
• “Expert systems will replace the need for experts”

Lessons from
Upstream • “Neural networks can learn anything”

Conclusions
• “The plant of the future will have two operators: A man
and a dog…”
– So, is more or less automation better?
• Key: Situational awareness
 Nikolaou Lessons from Downstream:
Digital Oilfield Risks vs. Unexpected Benefits

Basics • Plant-wide real-time monitoring

– Widespread use of multivariate statistics et al.
Specifics

Lessons from • What-if analysis via computer simulation

Downstream
– Operator training
Lessons from
Upstream
• Despite replacement of some process operators,
Conclusions remaining empowered operators embraced change
– Buy-in necessary
 Nikolaou Digital Oilfield:
Digital Oilfield Risks vs. Unexpected Benefits

Basics • Digital oilfield a necessity

Specifics
• Simple remote communication and control often more
valuable than more sophisticated solutions
Lessons from
Downstream

Lessons from
Upstream

Conclusions

19
 Nikolaou Digital Oilfield:
Digital Oilfield When Expectations Are Not Met
• People
Basics
– Limited motivation to change work habits
– Lack of commitment
Specifics – Poor engagement between project sponsors, asset users, and technology providers

Lessons from • Automated workflows

Downstream – Poor definition and effectiveness of the workflow
– Automation of problematic workflows
Lessons from – Long execution times
Upstream – Little ability to modify/maintain newly implemented workflows without IT support

Conclusions • Processes
– Perception of benefits not clear
– Poor definition and effectiveness of new work process
– Little time dedicated to understanding reservoir, well, and surface issues

• Technologies
– Data management: Cleansing and integration never ending tasks
– Solution maintenance/updating

20 Source: Saputelli et al., SPE 167269, 2013

 Nikolaou
Digital Oilfield Crystal Balls

Basics • “…picking the winners ‘offers plenty of scope for error’…

In the past 25 years, 3D seismic has proved a real
Specifics
winner, while the considerable investment in chemical
Lessons from recovery and oil shale technology has yet to show a
Downstream commercial return.”
Lessons from – SPE special session on the ‘slow rate of technology take-up’ in the oil and gas
Upstream industry, 2005

Conclusions

21
 Nikolaou
Digital Oilfield Conclusions

Basics • “Teething problems” normal

– Have been experienced by other industries
Specifics

Lessons from • Uncertainty creates both risk and opportunities

Downstream
– Mitigate risk
Lessons from – Prepare for unforeseen benefits
Upstream

Conclusions • Plenty of technology available

– Select/adapt winners
– Future improvements virtually certain
– “People, process, technology” cliché very true
– Value of education