Nikolaou

Digital Oilfield
Basics
Specifics
Lessons from
Downstream

Digital Oilfield:
An Overview and Lessons Learned

Lessons from
Upstream
Conclusions

Michael Nikolaou
Chemical & Biomolecular Engineering
Petroleum Engineering

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

What Is the Digital Oilfield?

Orchestration of disciplines, data, engineering
applications, and workflow integration tools supported
by digital automation
Early 2000: Emphasis on real-time optimization:
A process of measure-calculate-control cycle
at a frequency which maintains the systems optimal operating conditions at all
times
within the time-constant constraints of the system,
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

Nikolaou
Digital Oilfield

Digital Oilfield:
Technology Enablers

Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Source: Saputelli et al., SPE 167269, 2013

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Recent Digital Oilfield Experience

Production optimization
Drilling and completion

Nikolaou
Digital Oilfield

People, Process, and Technology

Basics
Behaviors

Skill Sets

Specifics
Roles & Responsibilities

Lessons from
Downstream
Lessons from
Upstream

Best Practices & Methods

Alignment & Collaboration
Uncertainty Management

Conclusions

Motivation

Infrastructure

Management
Systems

Data Architecture
Processes

Technology

Requirements

Formal policies and procedures

Sustainable
Growth

Organization

Improvement of production work-processes

through proper alignment of factors

Value
Created

Source: Saputelli et al., SPE 167269, 2013

Nikolaou
Digital Oilfield

Digital Oilfield Components

Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Source: Saputelli et al., SPE 167269, 2013

Nikolaou
Digital Oilfield

Executing a Digital Oilfield Project

Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Source: Saputelli et al., SPE 167269, 2013

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Digital Oilfield IT Architecture

Nikolaou
Digital Oilfield

Of Parachutes and Feedback Loops:

Working Open and Closed

Basics
Specifics

Measure

Lessons from
Downstream
Lessons from
Upstream

Action/
Change

Analyse

Conclusions

Decide

Evaluate

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream

Digital Oilfield Applications

Integrated Asset Management
Real-Time Drilling and Completions
Real-Time Production Optimization

Lessons from
Upstream
Conclusions

10

Source: Saputelli et al., SPE 167269, 2013

Nikolaou

Digital Oilfield Applications (Contd)

Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream

Integrated Asset
Management

Conclusions

11

Advanced geology and

integrated interpretation
platforms
High performance computing
center for multi-scenario
analysis and multi-million
cells reservoir simulation
Automated reservoir history
match
Real-time down-hole
pressure and rate analysis
Real-time reservoir
surveillance practices using
seismic-based, electromagnetics, tracers,
streamline simulation and
data-driven
Smart waterflooding
Integrated forecasting
Integrated planning and
scheduling
Automated asset portfolio
management
Surrogate and proxy
modeling of subsurface

Real-Time Production
Optimization

Automated workflows for well

test validation, well model
update, and plant update.
Real-time KPI calculations
Continuous plant efficiency,
uptime and availability
Real-time integrated
production optimization
Virtual metering: multiphase
flow rates, soft sensors, and
zonal allocation
Smart well monitoring and
control
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

Real-Time Drilling &

Completions

Remote operating centers

Remote geo-steering
Anti-collision optimization
Real-time weight on bit
optimization
Real-time fracture
optimization
RFID-based for downhole
completions control
Smart diagnosis and by
exception
Operations dynamic
simulator

Basics
Specifics
Lessons from
Downstream

Expected performance is
continuously challenged by
updating optimum forecast
with corporate targets and
current asset status

Lessons from
Upstream

Establish
Expected
Performance

Identify Gap
or losses

Conclusions
Asset is controlled by applying
actions as a result of gap
analysis between actual and
expected performance

12

Corporate
Targets

External Scheduled
References Downtime

Optimum
Forecast

Safe Operating
Envelopes

Optimize &
Forecast

Live Model

Slower
Surveillance Loop

Actual
performance

Establish
Actual
performance

Numerical,
Analytical or Data
Driven

Establish
Models &
Status
Field Status

Digital Oilfield

Real-Time Production Optimization:

A Multi-Level Framework

Expected
performance

Nikolaou

Corrected actual
performance

Analyze and
Interpret

Establish
Actions to
close gaps

Faster
Surveillance Loop

Validate and
reconcile data

Apply actions

Physical
Asset

Measure and
Gather Data

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

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Automation: A Multi-Level Framework

Business Headquarters

Capacity Planning Design

[months/years]

-Asset life cycle and installed based maintenance or growth

-Supply Chain Management & Market and customer demands

Operational Planning
[months/years]

-Planning of injection/production plan and resources

-Planning drilling and workover resources
-Supply Chain Management & Market and customer demands

Scheduling
[days/months]

-Scheduling of injection/production plan and resources

-Opening and closing wells or partial completions
-Adjusting well operating parameters

Supervisory Control
[minutes/hours]

-SCADA systems for coordinating flow stations and pipelines

-Gas distribution/optimization on a pipeline network
-Monitoring wellheads, multiples and flow stations

Regulatory Control
[sec/minutes]

-Flow, pressure and temperature in wells and separator

-Fuel injection to produce heat out of a boiler

Well & Surface facilities

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

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Multi-Level Automation in Downstream

Business Headquarters

Capacity Planning Design

[months/years]
Operational Planning
[months/years]
Scheduling
[days/months]
Supervisory Control
[minutes/hours]
Regulatory Control
[sec/minutes]

Well & Surface facilities

Refinery/chemical
plant/...

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

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Lessons from Downstream:

The Digital Process Control (DPC) Story
1948 Feasibility speculation, Scientific American
1949 MIT paper suggesting DPC
1952 Shell discusses DPC
1955 ICI publishes book on DPC
1956 Measurements from DuPont plant in Niagara
Falls transmitted via telephone wire to Burroughs
computer in Philadelphia; results sent back to plant;
implemented manually
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
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Lessons from Downstream:

The Model-Predictive Control (MPC) Story
1976 First paper on new kind of heuristic control
Late 1970s MPC development, installations in US,
Europe
Early 1990s MPC mature technology, widely installed
Real-time optimization, direct process control integration

Early 2000s Planning/scheduling, real-time

optimization, direct process control integration efforts
Mid 2000s Remote control of petrochemical units over
the Internet commercially viable

Nikolaou
Digital Oilfield
Basics
Specifics

Lessons from Downstream:

Unfulfilled Promises
Early MPC efforts thwarted by poor human-machine
communication

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
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Lessons from Downstream:

Risks vs. Unexpected Benefits
Plant-wide real-time monitoring
Widespread use of multivariate statistics et al.

What-if analysis via computer simulation

Operator training

Despite replacement of some process operators,

remaining empowered operators embraced change
Buy-in necessary

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

19

Digital Oilfield:
Risks vs. Unexpected Benefits
Digital oilfield a necessity
Simple remote communication and control often more
valuable than more sophisticated solutions

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Digital Oilfield:
When Expectations Are Not Met
People

Limited motivation to change work habits

Lack of commitment
Poor engagement between project sponsors, asset users, and technology providers

Automated workflows

Poor definition and effectiveness of the workflow

Automation of problematic workflows
Long execution times
Little ability to modify/maintain newly implemented workflows without IT support

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

Lessons from
Downstream

picking the winners offers plenty of scope for error

In the past 25 years, 3D seismic has proved a real
winner, while the considerable investment in chemical
recovery and oil shale technology has yet to show a
commercial return.

Lessons from
Upstream

SPE special session on the slow rate of technology take-up in the oil and gas
industry, 2005

Basics
Specifics

Conclusions

21

Nikolaou
Digital Oilfield
Basics
Specifics
Lessons from
Downstream
Lessons from
Upstream
Conclusions

Conclusions
Teething problems normal
Have been experienced by other industries

Uncertainty creates both risk and opportunities

Mitigate risk
Prepare for unforeseen benefits

Plenty of technology available

Select/adapt winners
Future improvements virtually certain
People, process, technology clich very true
Value of education