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Building a Smarter Planet




      Repsol shows the future of offshore
      exploration with more powerful and
      detailed seismic imaging


                     Overview

      ■   Business Challenge
          For its oil exploration activities
          in the deep waters of the Gulf of
          Mexico—a region known for
          complex geological conditions
          that make finding oil and gas
          hard—Repsol needed to aug-
          ment its seismic imaging capa-
          bilities to reduce the risk of
          drilling “dry holes” and shorten
          the time to “first oil.”
      ■   Solution
          Repsol worked with IBM to            Repsol is an international integrated oil and gas company, operating in over 30 countries. It is the leader in
                                               Spain and Argentina, one of the ten largest private oil companies in the world and the largest private
          build a powerful new system          energy company in Latin America in terms of assets.
          capable of running the next
          generation of more accurate          The world’s petroleum producers rec-                         “ We see IBM’s
          seismic algorithms—and do so         ognize that when it comes to finding
                                                                                                              technology and
          faster than the rest of the indus-   and exploiting new sources, the days of
          try. Leveraging advanced multi-      “easy oil”—that which is found in large
                                                                                                              expertise as game
          core technology, and optimizing      reservoirs either on shore or in shallow                       changing in the area of
          algorithm code for maximum           coastal waters—are largely over. The                           oil exploration because
          performance—Repsol can spot          new frontier for exploration, and the                          they enable a new
          likely opportunities for oil and     biggest hope for future large discover-
                                                                                                              level of analytical
          gas discovery more accurately        ies, lies farther offshore, in reservoirs
          and bring it to market faster.       miles beneath the seafloor in waters
                                                                                                              insight that fits with
      ■   Key Benefits                          that can be miles deep. These extreme                          our need for cost
          — 85 percent reduction in time       conditions make deep-water oil explo-                          effectiveness,
             required to run next genera-      ration and production an expensive                             sustainability and fast
             tion seismic algorithms           proposition. In the Gulf of Mexico, for
          — Substantially lower power
                                                                                                              time-to-market.”
                                               example, the total cost of developing a
             and cooling costs                 deep-water field is often measured in                            —     Francisco Ortigosa, Director of
                                                                                                                     Geophysics, Repsol YPF
          — Fewer dry holes and wasted
             resources
Achieving a new level of accuracy and efficiency in deep-sea oil exploration




                                                the billions of dollars, while the cost of operating just a single offshore platform
 Business Benefits
                                                exceeds half a million dollars per day. That’s not to mention the perennial threat of
 ●   85 percent reduction in time required      hurricanes damaging infrastructure and disrupting exploration and production
     to run the next generation of
                                                efforts. What draws many of the world’s largest oil exploration and production com-
     highly accurate—and compute-
     intensive—seismic algorithms               panies to the Gulf of Mexico despite these costs and challenges are the region’s
                                                enormous reserves of recoverable oil, a figure the U.S. Department of the Interior’s
 ●   More detailed rendering of complex
     subsurface structures such as salt
                                                Minerals Management Service puts at 56 billion barrels.
     domes, resulting in fewer dry holes
     and wasted resources                       Getting a better picture
 ●   Faster time to market for new oil and      While pinpointing the exact location of oil and gas reservoirs is always a challenge,
     gas properties by shortening the           the geological complexities of the Gulf of Mexico accentuate the challenge consid-
     seismic data analysis phase
                                                erably. More than 100 million years ago, evaporating seas left a thick, extremely
 ●   Reduced risk in bidding for offshore oil   dense layer of salt, which was then gradually covered by the newer sediments that
     and gas leases
                                                make up today’s seafloor. Over time, intense pressure caused the salt to well up at
 ●   Substantially lower power and cooling      various points and form “salt domes,” mushroom shaped structures that proved
     costs resulting from the increase in
                                                ideal for trapping oil deposits but are notoriously difficult to see beneath. To find oil
     computing efficiency enabled by the
                                                deposits, exploration companies use advanced seismic imaging technologies to
     multicore optimization of Repsol’s
     seismic algorithms                         get as detailed a picture as possible of the subsurface landscape, much like mag-
                                                netic resonance imaging is used to scan the inside of a human body. The level of
                                                detail ultimately achieved is a function of complex algorithms, which translate huge
                                                amounts of seismic data into 3-D maps that are then visually interpreted by teams
                                                of experts. Like any business decision, their judgment—as to the presence of
                                                possible hydrocarbon-bearing structures—is only as accurate as the data it’s
                                                based on.


                                                Therein lies the unique challenge of salt domes. Because of crystalline structure
                                                (which creates “noise” in the seismic data), it takes far more complex algorithms
                                                to achieve the accuracy oil companies need to drill precisely in the right location
                                                and thus avoid “dry holes,” whose costs can exceed $125 million. As an oil and
                                                gas company with a big stake in the Gulf of Mexico, Madrid-based Repsol
                                                (www.repsol.com) was determined to maximize the effectiveness of its exploration
     “ Our ability to                           efforts—which meant adapting its methods to meet the challenges posed by salt
       leverage advanced                        domes. Its intent was to better delineate geological structures deep below the sur-
       seismic algorithms                       face by applying a far more powerful algorithmic approach known as reverse time
                                                migration, whose extreme computational intensity had until then prevented oil com-
       fundamentally changes
                                                panies from employing it. Repsol turned to IBM to help make this significant break-
       the way we manage                        through in applied seismic techniques.
       the risks and seize the
       opportunities of deep-                   Companies involved in oil exploration need to make practical decisions. They need
       sea oil exploration.”                    to know when and how much to bid on offshore drilling leases. And perhaps most
                                                importantly, with oil more likely to be found in smaller, localized pockets, they need
       —   Francisco Ortigosa
                                                to know where to drill. Given the huge financial stakes and the limited duration of
drilling leases, time is the enemy. A dry hole exacts not only explicit drilling costs,
                                                                                          Solution Components
but also the cost of missed opportunities and delayed cash flow, both of which
destroy value. The same logic holds true for pre-drilling analysis. Despite its impor-    Processor

tance, oil companies simply can’t afford to delay their exploration programs by           ●   IBM PowerXCell 8i
running seismic algorithms that can take as much as four months to run. That’s            Hardware
why—when faced with the trade-off between imaging precision and computational
                                                                                          ●   IBM BladeCenter QS22
time—oil companies largely choose the latter out of necessity.
                                                                                          ●   IBM System Storage™

Making the jump to more accuracy                                                          ●   IBM TotalStorage
Repsol, however, believed that the unique challenges of deep-sea drilling in the          Services
Gulf called for a rethinking of this paradigm, and that the key to enabling this
                                                                                          ●   IBM T.J. Watson Research Center –
change was a quantum jump in computational capabilities that would make reverse               Multicore Computing Group
time migration practical. Like its peers, Repsol has long relied on supercomputing
                                                                                          ●   IBM STG Cell Ecosystem & Solutions
clusters to run its seismic algorithms. In mapping out its next strategy, the com-            Enablement Group
pany saw the use of higher performance multicore processors as integral to its
plans. What became increasingly clear over time, however, was just how
important—and challenging—it was to optimize seismic algorithms to fully leverage
multicore technology. After evaluating servers based on quad core technology,
Repsol saw that processor scalability limitations would necessitate a much larger
infrastructure to handle its massive computing requirements, which would produce
unacceptably high power and cooling costs. That’s when it took a closer look at
the IBM PowerXCell™ 8i processor.


In the PowerXCell 8i, Repsol saw not only the power of its heterogeneous,
nine-core processing architecture—which is well-suited to the specialized
processing demands of reverse time migration—but also the opportunity
to fully exploit it by capitalizing on the unmatched expertise of IBM Research in
optimizing algorithms to run on multicore systems. What’s more, Repsol saw the
PowerXCell’s 16-x advantage in computing power per watt as a way around the
                                                                                          Smarter Petroleum Exploration
power and heat dissipation issues that would threaten the viability—both economic
and technical—of a less efficient architecture. Repsol ultimately chose the               Repsol is breaking new ground in
                                                                                          improving the accuracy of deep-sea oil
PowerXCell 8i, running on a series of IBM BladeCenter® QS22 blade servers as
                                                                                          exploration by harnessing the most
the foundation of an initiative now known as Project Kaleidoscope.                        powerful and efficient multicore
                                                                                          processing technology on the planet. By
Deployed by IBM located in Houston, Texas, the Project Kaleidoscope infrastruc-           building a new seismic computing
                                                                                          infrastructure—and optimizing its seismic
ture is comprised of 288 IBM BladeCenter QS22 blade servers supported by a
                                                                                          algorithms to fully leverage its advanced
large network of IBM TotalStorage® storage hardware. In parallel with this deploy-        multicore properties—Repsol can now
ment, staff from IBM STG Cell Ecosystem & Solutions Enablement Group and the              run the most comprehensive algorithms,
IBM T.J. Watson Research Center’s Multicore Computing Group worked closely                which have until now been out of reach
                                                                                          of oil and gas companies due to their
with parallelization experts from the Barcelona Supercomputing Center (BSC) to
                                                                                          extreme computational intensity.
optimize the reverse time migration algorithms for peak processing on the
PowerXCell. Testing of the system on BCS’s MareNostrum supercomputer—                       © Copyright IBM Corporation 2009
                                                                                              IBM Corporation
built by IBM and the most powerful in Europe—showed that IBM PowerXCell 8i                    1 New Orchard Rd.
processor ran these algorithms as much as six times faster than existing seismic              Armonk, NY 10504
                                                                                              U.S.A.
analysis platforms.
                                                                                              Produced in the United States of America
                                                                                              January 2009
                                                                                              All Rights Reserved
Changing the game
                                                                                              IBM, the IBM logo, ibm.com, BladeCenter,
In the larger scheme, Repsol’s embrace of a new approach to processing seismic                PowerXCell, System Storage and TotalStorage
data puts the company in a stronger competitive position because it has gained                are trademarks or registered trademarks of
                                                                                              International Business Machines Corporation in
the ability to look deeper into seismic data—without having to compromise the tim-            the United States, other countries, or both. If
ing and quality of its decisions. In this sense, Repsol has broken through the accu-          these and other IBM trademarked terms are
                                                                                              marked on their first occurrence in this
racy-versus-speed trade-offs that have defined seismic exploration until today. It             information with a trademark symbol (® or ™),
has done so by reducing the time required to run complex imaging algorithms like              these symbols indicate U.S. registered or
                                                                                              common law trademarks owned by IBM at the
reverse time migration from four months to two weeks. Access to more detailed                 time this information was published. Such
and fine-grained seismic images enables Repsol to make more accurate and data-                 trademarks may also be registered or common
                                                                                              law trademarks in other countries. A current list
driven drilling decisions, substantially mitigating the risk of dry holes associated with     of IBM trademarks is available on the Web at
the Gulf of Mexico’s salt domes. Elsewhere, this richer view of potential petroleum           “Copyright and trademark information” at
                                                                                              ibm.com/legal/copytrade.shtml
deposits provides Repsol with an advantage in bidding for offshore properties,
                                                                                              Other company, product or service names may
both by lessening the likelihood of paying too much and helping Repsol spot                   be trademarks or service marks of others.
undervalued properties.                                                                       This case study illustrates how one
                                                                                              IBM customer uses IBM products. There
                                                                                              is no guarantee of comparable results.
Francisco Ortigosa, Director of Geophysics, sees Repsol’s leadership in the area of           References in this publication to IBM products
advanced seismic algorithms as greatly enhancing the company’s ability to find and             or services do not imply that IBM intends to
                                                                                              make them available in all countries in which
capitalize on the Gulf of Mexico’s rich deep sea exploration and production oppor-            IBM operates.
tunities. “Our ability to leverage advanced seismic algorithms fundamentally
changes the way we manage the risks and seize the opportunities of deep-sea oil
exploration,” says Ortigosa. “In the same way, we see IBM’s technology and
expertise as game changing in the area of oil exploration because they enable a
new level of analytical insight that fits with our need for cost effectiveness,
sustainability and fast time-to-market.”


For more information
Please contact your IBM sales representative or IBM Business Partner.


Visit us at: ibm.com/chemicalspetroleum




                                                                                              ODC03119-USEN-00

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Customer Case Study - Repsol

  • 1. Building a Smarter Planet Repsol shows the future of offshore exploration with more powerful and detailed seismic imaging Overview ■ Business Challenge For its oil exploration activities in the deep waters of the Gulf of Mexico—a region known for complex geological conditions that make finding oil and gas hard—Repsol needed to aug- ment its seismic imaging capa- bilities to reduce the risk of drilling “dry holes” and shorten the time to “first oil.” ■ Solution Repsol worked with IBM to Repsol is an international integrated oil and gas company, operating in over 30 countries. It is the leader in Spain and Argentina, one of the ten largest private oil companies in the world and the largest private build a powerful new system energy company in Latin America in terms of assets. capable of running the next generation of more accurate The world’s petroleum producers rec- “ We see IBM’s seismic algorithms—and do so ognize that when it comes to finding technology and faster than the rest of the indus- and exploiting new sources, the days of try. Leveraging advanced multi- “easy oil”—that which is found in large expertise as game core technology, and optimizing reservoirs either on shore or in shallow changing in the area of algorithm code for maximum coastal waters—are largely over. The oil exploration because performance—Repsol can spot new frontier for exploration, and the they enable a new likely opportunities for oil and biggest hope for future large discover- level of analytical gas discovery more accurately ies, lies farther offshore, in reservoirs and bring it to market faster. miles beneath the seafloor in waters insight that fits with ■ Key Benefits that can be miles deep. These extreme our need for cost — 85 percent reduction in time conditions make deep-water oil explo- effectiveness, required to run next genera- ration and production an expensive sustainability and fast tion seismic algorithms proposition. In the Gulf of Mexico, for — Substantially lower power time-to-market.” example, the total cost of developing a and cooling costs deep-water field is often measured in — Francisco Ortigosa, Director of Geophysics, Repsol YPF — Fewer dry holes and wasted resources
  • 2. Achieving a new level of accuracy and efficiency in deep-sea oil exploration the billions of dollars, while the cost of operating just a single offshore platform Business Benefits exceeds half a million dollars per day. That’s not to mention the perennial threat of ● 85 percent reduction in time required hurricanes damaging infrastructure and disrupting exploration and production to run the next generation of efforts. What draws many of the world’s largest oil exploration and production com- highly accurate—and compute- intensive—seismic algorithms panies to the Gulf of Mexico despite these costs and challenges are the region’s enormous reserves of recoverable oil, a figure the U.S. Department of the Interior’s ● More detailed rendering of complex subsurface structures such as salt Minerals Management Service puts at 56 billion barrels. domes, resulting in fewer dry holes and wasted resources Getting a better picture ● Faster time to market for new oil and While pinpointing the exact location of oil and gas reservoirs is always a challenge, gas properties by shortening the the geological complexities of the Gulf of Mexico accentuate the challenge consid- seismic data analysis phase erably. More than 100 million years ago, evaporating seas left a thick, extremely ● Reduced risk in bidding for offshore oil dense layer of salt, which was then gradually covered by the newer sediments that and gas leases make up today’s seafloor. Over time, intense pressure caused the salt to well up at ● Substantially lower power and cooling various points and form “salt domes,” mushroom shaped structures that proved costs resulting from the increase in ideal for trapping oil deposits but are notoriously difficult to see beneath. To find oil computing efficiency enabled by the deposits, exploration companies use advanced seismic imaging technologies to multicore optimization of Repsol’s seismic algorithms get as detailed a picture as possible of the subsurface landscape, much like mag- netic resonance imaging is used to scan the inside of a human body. The level of detail ultimately achieved is a function of complex algorithms, which translate huge amounts of seismic data into 3-D maps that are then visually interpreted by teams of experts. Like any business decision, their judgment—as to the presence of possible hydrocarbon-bearing structures—is only as accurate as the data it’s based on. Therein lies the unique challenge of salt domes. Because of crystalline structure (which creates “noise” in the seismic data), it takes far more complex algorithms to achieve the accuracy oil companies need to drill precisely in the right location and thus avoid “dry holes,” whose costs can exceed $125 million. As an oil and gas company with a big stake in the Gulf of Mexico, Madrid-based Repsol (www.repsol.com) was determined to maximize the effectiveness of its exploration “ Our ability to efforts—which meant adapting its methods to meet the challenges posed by salt leverage advanced domes. Its intent was to better delineate geological structures deep below the sur- seismic algorithms face by applying a far more powerful algorithmic approach known as reverse time migration, whose extreme computational intensity had until then prevented oil com- fundamentally changes panies from employing it. Repsol turned to IBM to help make this significant break- the way we manage through in applied seismic techniques. the risks and seize the opportunities of deep- Companies involved in oil exploration need to make practical decisions. They need sea oil exploration.” to know when and how much to bid on offshore drilling leases. And perhaps most importantly, with oil more likely to be found in smaller, localized pockets, they need — Francisco Ortigosa to know where to drill. Given the huge financial stakes and the limited duration of
  • 3. drilling leases, time is the enemy. A dry hole exacts not only explicit drilling costs, Solution Components but also the cost of missed opportunities and delayed cash flow, both of which destroy value. The same logic holds true for pre-drilling analysis. Despite its impor- Processor tance, oil companies simply can’t afford to delay their exploration programs by ● IBM PowerXCell 8i running seismic algorithms that can take as much as four months to run. That’s Hardware why—when faced with the trade-off between imaging precision and computational ● IBM BladeCenter QS22 time—oil companies largely choose the latter out of necessity. ● IBM System Storage™ Making the jump to more accuracy ● IBM TotalStorage Repsol, however, believed that the unique challenges of deep-sea drilling in the Services Gulf called for a rethinking of this paradigm, and that the key to enabling this ● IBM T.J. Watson Research Center – change was a quantum jump in computational capabilities that would make reverse Multicore Computing Group time migration practical. Like its peers, Repsol has long relied on supercomputing ● IBM STG Cell Ecosystem & Solutions clusters to run its seismic algorithms. In mapping out its next strategy, the com- Enablement Group pany saw the use of higher performance multicore processors as integral to its plans. What became increasingly clear over time, however, was just how important—and challenging—it was to optimize seismic algorithms to fully leverage multicore technology. After evaluating servers based on quad core technology, Repsol saw that processor scalability limitations would necessitate a much larger infrastructure to handle its massive computing requirements, which would produce unacceptably high power and cooling costs. That’s when it took a closer look at the IBM PowerXCell™ 8i processor. In the PowerXCell 8i, Repsol saw not only the power of its heterogeneous, nine-core processing architecture—which is well-suited to the specialized processing demands of reverse time migration—but also the opportunity to fully exploit it by capitalizing on the unmatched expertise of IBM Research in optimizing algorithms to run on multicore systems. What’s more, Repsol saw the PowerXCell’s 16-x advantage in computing power per watt as a way around the Smarter Petroleum Exploration power and heat dissipation issues that would threaten the viability—both economic and technical—of a less efficient architecture. Repsol ultimately chose the Repsol is breaking new ground in improving the accuracy of deep-sea oil PowerXCell 8i, running on a series of IBM BladeCenter® QS22 blade servers as exploration by harnessing the most the foundation of an initiative now known as Project Kaleidoscope. powerful and efficient multicore processing technology on the planet. By Deployed by IBM located in Houston, Texas, the Project Kaleidoscope infrastruc- building a new seismic computing infrastructure—and optimizing its seismic ture is comprised of 288 IBM BladeCenter QS22 blade servers supported by a algorithms to fully leverage its advanced large network of IBM TotalStorage® storage hardware. In parallel with this deploy- multicore properties—Repsol can now ment, staff from IBM STG Cell Ecosystem & Solutions Enablement Group and the run the most comprehensive algorithms, IBM T.J. Watson Research Center’s Multicore Computing Group worked closely which have until now been out of reach of oil and gas companies due to their with parallelization experts from the Barcelona Supercomputing Center (BSC) to extreme computational intensity. optimize the reverse time migration algorithms for peak processing on the
  • 4. PowerXCell. Testing of the system on BCS’s MareNostrum supercomputer— © Copyright IBM Corporation 2009 IBM Corporation built by IBM and the most powerful in Europe—showed that IBM PowerXCell 8i 1 New Orchard Rd. processor ran these algorithms as much as six times faster than existing seismic Armonk, NY 10504 U.S.A. analysis platforms. Produced in the United States of America January 2009 All Rights Reserved Changing the game IBM, the IBM logo, ibm.com, BladeCenter, In the larger scheme, Repsol’s embrace of a new approach to processing seismic PowerXCell, System Storage and TotalStorage data puts the company in a stronger competitive position because it has gained are trademarks or registered trademarks of International Business Machines Corporation in the ability to look deeper into seismic data—without having to compromise the tim- the United States, other countries, or both. If ing and quality of its decisions. In this sense, Repsol has broken through the accu- these and other IBM trademarked terms are marked on their first occurrence in this racy-versus-speed trade-offs that have defined seismic exploration until today. It information with a trademark symbol (® or ™), has done so by reducing the time required to run complex imaging algorithms like these symbols indicate U.S. registered or common law trademarks owned by IBM at the reverse time migration from four months to two weeks. Access to more detailed time this information was published. Such and fine-grained seismic images enables Repsol to make more accurate and data- trademarks may also be registered or common law trademarks in other countries. A current list driven drilling decisions, substantially mitigating the risk of dry holes associated with of IBM trademarks is available on the Web at the Gulf of Mexico’s salt domes. Elsewhere, this richer view of potential petroleum “Copyright and trademark information” at ibm.com/legal/copytrade.shtml deposits provides Repsol with an advantage in bidding for offshore properties, Other company, product or service names may both by lessening the likelihood of paying too much and helping Repsol spot be trademarks or service marks of others. undervalued properties. This case study illustrates how one IBM customer uses IBM products. There is no guarantee of comparable results. Francisco Ortigosa, Director of Geophysics, sees Repsol’s leadership in the area of References in this publication to IBM products advanced seismic algorithms as greatly enhancing the company’s ability to find and or services do not imply that IBM intends to make them available in all countries in which capitalize on the Gulf of Mexico’s rich deep sea exploration and production oppor- IBM operates. tunities. “Our ability to leverage advanced seismic algorithms fundamentally changes the way we manage the risks and seize the opportunities of deep-sea oil exploration,” says Ortigosa. “In the same way, we see IBM’s technology and expertise as game changing in the area of oil exploration because they enable a new level of analytical insight that fits with our need for cost effectiveness, sustainability and fast time-to-market.” For more information Please contact your IBM sales representative or IBM Business Partner. Visit us at: ibm.com/chemicalspetroleum ODC03119-USEN-00