Hydrocarbon business overview

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Oil and Gas Exploration, Development and Production is a versatile and technologically diverse business. This presentation given to IT teams provides a overview

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Hydrocarbon business overview

  1. 1. Hydrocarbon Exploration & ProductionBusiness, Technology and Information Overview Scope of Document : Overview of E&P Business. Nature : Presentation Security : Public Author : G Srikanth Date and Version : 16-September-2008 v1.0Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  2. 2. Structure1. Story of Oil & Gas2. Science3. Technology4. Business5. Information SystemsReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  3. 3. Story of Oil & Gas - Origins Natural Gas and Oil seepages are known to Drake’s many civilizations (Eg. Well Jwalamukhi) Col. Edwin Drake discovered modern oil at Titusville, Pennsylvania Digboi-1 in 1859 Digboi in Assam is the world’s first oil field discovery outside USA (First in India) Oil wells in Titusville, 1880Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  4. 4. Story of Oil & Gas – World producers Oil Industry became World Oil Producers the backbone of world industrial development (replacing Coal) Geopolitics started orienting towards oil >1000 oil fields discovered Giant >1million wells drilled Big Medium >10T$ invested Small MinorReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  5. 5. Crude prices controlling global economyReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  6. 6. Story of Oil & Gas - Giant Fields India Ankleshwar Bassein Bassein, North Bombay High Dhirubhai (KG-DWN-98/2 block) Lakwa Moran NahorkatiyaSource:American Association of Petroleum Geologists (AAPG) Memoir #78Petroliferous Basins of India. ONGC Gas Field, Oil Field Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  7. 7. Hydrocarbons in Modern SocietyOil is the driver of modern civilization.HydrocarbonExploration & Production businessDiscovery and Profitable production of Oil and Gas Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  8. 8. Origin of Petroleum – Scene-1 Oil is a fossil fuel. It was formed more than 300-10 million years ago. Some scientists say that tiny diatoms is the source of oil. 3 1 Diatoms are sea creatures the size of a pin head. They do one 2 thing just like plants; they can 2 convert sunlight directly into stored energy 8Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  9. 9. Origin of Petroleum – Scene-2 In the graphic on the left, as the diatoms died they fell to the sea floor (1). Here they were buried under 3 1 sediment and other rock (2). The rock squeezed the diatoms 2 and the energy in their bodies 2 could not escape. The carbon eventually turned into oil under great pressure and heat. As the earth changed and moved and folded, pockets where oil and natural gas can be found were formed (3).Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  10. 10. Petroleum GeoscienceReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  11. 11. Geology Paradigm Largely Visual, Schematic and Interpretation based Heuristic and Empirical concepts and principles Wide ranging Scale-of-Support issues Many Workflows unchanged with IT. Examples: – Core Description – Well Log Correlation Limited algorithmic structure G Srikanth, ADCO. Abu Dhabi. UAEReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  12. 12. Sciences in Petroleum Geoscience1. Mathematics Fluid dynamics, Digital Signal Processing, Fourier analysis2. Physics Rock physics (petrophysics), Geophysics – Seismic , Instrumentation3. Geology Search, Discovery and Characterization4. Geophysics Seismic, Gravity and Magnetic surveys5. Chemistry Oil & Gas Composition, Properties, Drilling Mud chemistry, Rock chemistry6. Computer Fractals, ANN, Fuzzy Sets, Advanced GraphicsReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  13. 13. Technology in Petroleum E&P1. Computer Array Processors, HPC, Virtual Reality, Petabyte storage2. Chemical Processing, Extraction, Plant design, Reservoir engineering3. Civil Drill site preparation, plant sites, Field layout, Structural design of platforms4. Electronics & Communication Design surveillance and monitoring equipment, Communication, Instrumentation5. Geodetic Surveying and Positioning6. Environment Harazad studies, Spill management, Disposal7. Mechanical Drilling, Heavy Equipment, Plants8. Petroleum Well-Design, Flow-Networks, Production OptimizationReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  14. 14. Technology initiatives - Geophysics a. High Res. 3D1. To obtain High Resolution, High fidelity data for Imaging b. Q Marine Geologically Complex settings, c. Long Streamer Deep and Ultra Deep Water d. Solid Streamer a. True Amplitude Processing2. Enhanced Signal/Noise Ratio; b. DHI Imaging of Complex Geological Settings; Physical Properties of c. Demultiple: SRME/3DSRME/ Hi Res. Radon Rocks d. Imaging: PSTM/PSDM - Kirchoff/Wave Equation Migration e. AVO/AVA (LMR) Inversion f. Pre/Post Stack InversionReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  15. 15. Petroleum E&P Business Overview Business Vision E&D is essentially Centered $ $ around managing information – Quality ~10,000CrIRS – Completeness – Auditability Information Significant value accretionExecution Valuation E&D is essentially obtainingExploration & Auditing “reliable” information on O&GDevelopment Technology occurrence and recoverabilityReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  16. 16. Simplified E&P Business WBS Business Development, Planning, HR, Finance, Legal, HSE,Business Mgmt MarketingExploration & Science and Engineering domains Technology, Valuation & AppraisalDevelopmentEngineering & Engineering. Well Engineering, Surface Engineering &Technology Projects, Production Engineering Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  17. 17. State Gates in E&PReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  18. 18. prcsTypical E&P Organization CEO Business Exploration Development Production Services Support Field Asset Asset Operations Drilling Manager Manager Manager Technical Discipline EPC HR/IT/HSE ManagerReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  19. 19. E&P Business ChallengesReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  20. 20. E&P Critical Success Factors Access to Reserves – Sustaining discovery rate – Consistent Development Finding and Development Cost Technological Capability Information Capital Human Capital Value Maximization Environmental Friendliness Cost is a key differentiatorReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  21. 21. E&P Asset Life cycle – IS features Acquire Explore Develop Produce Abandon E&P Asset Life Cycle1. High Compute Capability2. Diverse Application Portfolio for every function3. High Data & Information Costs4. Large data volumes5. Complex Integration of wide range of data classes6. Information Uncertainty needing multiple analysis and processes7. World-wide operations and standard service requirements8. Remote and hazardous work areas9. Auditors, Certifiers, Collaborators and Regulators10. High business Impact IT Components in E&P technical areas are unique to the businessReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  22. 22. Application Portfolio for an Exploration ProcessesReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  23. 23. E&P – Compute Capability CharacteristicsSystems1. Teraflop processing power needed in many areas of work2. Very high memory capacity > 64GB needed in many applications3. Imaging Systems – very high end graphics4. Huge Data sizesApplications1. Specialized and very proprietary2. Bought-in – Seldom developed3. Multiplicity of Applications for same/similar functionality4. Proprietary data structures and models5. Long cycle times for expertiseReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  24. 24. Technical Data flow Seismic data Drilling data PDBStudies are carried out in StandardProject DataBases. These Data setsare organised by block andinterpretation Project Production Seismic Approved Data h at c ad Apps Data sets Geological B o l Apps Up Petrophys. Manual Apps Reservoir input Master data Integrated Data Apps Data groups include: CDB Externally • SeismicTechnical applications Prepared Corporate data • Geology data • Petrophysics • Reservoir A Corporate DataBase • Production Tape Library-2 Pbytes • Drilling is the repository of all Business • Culture approved technical data Management • Assets • Documents Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  25. 25. E&P - Information Characteristics1. High Information Costs2. Complex data models – Structure and Semantics3. Analytical complexity4. Information Uncertainty5. Large RiskReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
  26. 26. The Charm of Successful E&P • Spectacular Opportunity • Extensive Diversity • Strategic ContributionReliance Industries Ltd. Exploration & Production Business. India. 17-September-2008

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