The Operational andEconomic Benefits of Remote  Production Monitoring      Mid Continent Digital       Oilfield Conference...
Production Data GatheringSpectrum: Hand Readings                      Pumper Hand Entry     Field Data Capture   Remote Mo...
Production Data GatheringSpectrum: Field Data Capture                      Pumper Hand Entry     Field Data Capture     Re...
Production Data GatheringSpectrum: Remote Monitoring                      Pumper Hand Entry     Field Data Capture      Re...
Production Data GatheringSpectrum: SCADA                      Pumper Hand Entry     Field Data Capture      Remote Monitor...
Remote Monitoring vs.SCADA       X      SCADA   “We Report, You Decide”
Benefits of Remote MonitoringReduce downtime duration; increase productionReduce spill frequency and liability through mon...
What can you see?Process Variables                  Production Equipment  Tank Levels                        Pump Off Cont...
Remote Monitoring Components            Tank Battery                           Cell                           Sat         ...
Sensors and LocalCommunicationSensors  Industry sensors or proprietary?  Modbus DevicesLocal Communication  Short range ra...
RTU, Long RangeCommunication, DatabaseHUB™ RTU   Gather and package data    for transmission to    databaseCommunication  ...
Presentation/Access/HMIBrowser based vs.  client/serverUser RightsTables, graphs, history,  alarmsReports and export
Pumpers/Field Personnel“Forewarned is Forearmed”Plan day and route based on  dataPump by exceptionAlarms/CalloutsContract ...
EngineersEasy access to trendsIdentify growing problems   e.g. paraffinMonitor production equipment   e.g. rod pumps, ESP’...
Management/Marketing/AdminOverview of production  vs. expectationsEFM and LACT data for  marketing,  transportation and  a...
Economics of RemoteMonitoring                        Isolated or                          Remote                         L...
Quantify the BenefitsBenefits are probabilistic  (If you knew which one site would go down,    you’d just monitor that one...
Production IncreaseDistribution Example                            Average=1.9%0.0%   0.5%   1.0%   1.5%   2.0%   2.5%    ...
Economic Evaluation                                        WELLKEEPER ECONOMIC ANALYSISCustomer                           ...
Economic SensitivityExample             IRR versus Tank Battery Production (BOPD)      80%      70%      60%      50%IRR  ...
One Final Analogy…     “Why settle for only daily data?”
Thank You!              Jim Taylor           Wellkeeper, Inc.     jim.taylor@wellkeeper.com        www.wellkeeper.com     ...
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Benefits Of Remote Monitoring Mid Con Digital Oilfield Conf August 15 2012

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  • Good morning. I’d like to start with an overview of the remote production data gathering landscape. First, and still very popular with the small to mid sized independent, is hand gathering by pumpers on a daily basis. It is the tried and true method, with data phoned or faxed in daily after the pumper makes his rounds. The home office then enters the data into their own systems for reporting.
  • Field data capture, through any number of handheld or portable devices, allows for daily data to be entered on the device and then transmitted. These systems reduce transcription errors and can integrate into the company’s systems directly.
  • Remote Monitoring replaces the once a day hand entry with multiple readings taken by sensors in the field. That data can be transmitted over 300 times per day, with the frequency determined by the communication method that is used. The readings can be used to generate alarms and callouts throughout the day, they can be stored for easy access to history and trends, and can generally be accessed from the internet.The extra information helps increase field staff effectiveness and productivity.Remote monitoring systems can provide some degree of remote control, but are limited by the digital cell or satellite communication that is used.Costs increase with the need to install sensors and communication devices, and pay for the communication system that is used.
  • Full SCADA systems require secure and near continuous communication to allow for remote control and confirmation of control changes. Most of the majors and many large independents have installed full SCADA on their production operations, allowing for restructuring of their field staff and maximizing field coverage per person.
  • A couple of cute ways to differentiate Remote Monitoring from SCADA, is that Remote Monitoring is SCADA without the “C”.Also, I’m indebted to Fox News for their very applicable tag line:With Remote Monitoring, “We Report, You Decide”.
  • The frequent and easily accessible readings make several benefits possible:Downtime duration can be reduced, since you know when something goes down rather than find out the next day when the pumper returnsSpill frequency can be reduced since levels are read and callouts can be triggered before the tank overflowsYou can minimize the time your field people spend on top of tanks, reducing their safety exposureWith “morning report” data available, field operations can plan their day based on priorities, rather than a set route.
  • The process variables and production equipment that is visible in a remote monitoring system is really just limited by what you want to see, and what you think is important. As long as there is a sensor made to measure what you want, or a Modbus register available to read it, you can have 24/7 access to what your remote operations are doing.
  • The components of a typical remote monitoring system are pretty consistent:Field sensors and local communication to get the data to an RTUAn RTU to package the readings and transmit data packets to a database for storage and retrievalAnd then a way to access the data and transfer it to other downstream systems as needed.
  • There is no one best choice on sensors, with some companies using proprietary designs and others using industry manufactured sensors for their readings. Modern production equipment also use Modbus protocols to allow for direct access to digital data.The choice of using short range radio or hardwired connections from the sensors to the RTU is also an issue for optimum economics, depending upon the distances involved.
  • The RTU, long range communication and database subsystems complete the delivery and storage of data for later access.Long range communication choices are a balance of cost and communication requirement, with the trend towards higher, low cost bandwidth, is enabling the gathering of ever more data at an acceptable cost.Finally the location of the database can range from a local single server to co-location facilities, and many Remote Monitoring companies are migrating to the cloud.
  • The effective and intuitive presentation of data to the user is equally important for long term customer satisfaction. Some systems use a client/server structure while others use the local browser. There are issues of user rights administration and the ability to see information in a format that is most useful and exportable to other systems.
  • Remote monitoring appeals to at least three groups of employees: the field, the engineers and the bosses.Giving your field organization information to start their day means that they know what they are getting into before they ever go out.A pumper may not even have to go to a particular site every day, and the system can reduce mileage and safety exposure without losing access to critical information about the operations.
  • Engineers really value the easy access to historical trends and the ability to easily monitor production equipment. They can foresee impending problems and work to optimize and maximize production across an entire field with ease.
  • Management and marketing functions can see the ‘big picture”, and have easy access to production and allocation data. Direct entry of data into downstream systems can reduce clerical errors and minimize administrative costs.
  • So what would be the ideal Remote monitoring site?Out in the boonies, an important high producer, in an environmentally sensitive location, with a history of problems and a high ratio of fluid production to tankage, just waiting to spill.So why not monitor just those sites?
  • If you think about it for a second, many of the benefits are probabilistic in nature. You don’t know when or if a single site will have a downtime event. So, like most probabilistic things, the best strategy is to build a portfolio of monitored sites. You want to have enough sites monitored so the economic benefit of the portfolio is likely to occur, even if one site never has a problem. The actual benefits are directly related to the particulars of your operation, and you can estimate the results based on your own company’s history.
  • This chart represents the spread of production increase experienced by one of our customers, illustrating the wide range of outcomes. Anywhere from 0% to well over 5 to 10% downtime reduction is possible with a remote monitoring system.
  • Based on an individual operator’s history and judgment, the benefits of remote monitoring can be quantified, and the investment economics can be calculated. In this particular instance, with a $100/month fee, $70/bbl oil, $2.50/MMBTU gas, and a $100/bbl spill clean up cost, this 50 BPD tank battery had a very attractive IRR and a payout in just over 1 year.Economics like these can be run for each site in the portfolio, with an output ready to attach to an AFE
  • Since the capital investment for remote monitoring is pretty low, it can be economically attractive even to as low as 15 BOPD through a tank battery.The advantages that come with the ability to see your remote operations in near real time should really be explored to improve your production operations.
  • I’ll close with one final analogy.When my wife and I raised our boys, we kept an eye on them when we could and everything turned out just fine. But in the years since then, the cost of baby monitors came way down. Nowadays, there is hardly a new parent couple that does not buy and use a monitor so they know right away if something is wrong.If something is important to you, like your baby or the far flung revenue stream that is your production operations, you really should keep a close eye on it!Thank you.
  • Benefits Of Remote Monitoring Mid Con Digital Oilfield Conf August 15 2012

    1. 1. The Operational andEconomic Benefits of Remote Production Monitoring Mid Continent Digital Oilfield Conference August 15, 2012 Tulsa, Oklahoma Jim Taylor Wellkeeper, Inc.
    2. 2. Production Data GatheringSpectrum: Hand Readings Pumper Hand Entry Field Data Capture Remote Monitoring SCADA DeviceData Frequency 1 per dayIncremental Benefit Status QuoCommunication Call in/faxCost Base personnel cost
    3. 3. Production Data GatheringSpectrum: Field Data Capture Pumper Hand Entry Field Data Capture Remote Monitoring SCADA DeviceData Frequency 1 per day 1 per dayIncremental Benefit Status Quo •Reduce transcription errors •Integration with other systemsCommunication Call in/fax UploadCost Base personnel cost ~$10-15 per month
    4. 4. Production Data GatheringSpectrum: Remote Monitoring Pumper Hand Entry Field Data Capture Remote Monitoring SCADA DeviceData Frequency 1 per day 1 per day 24 to ~300 per dayIncremental Benefit Status Quo •Reduce transcription •Reduce transcription errors errors •Integration with •Integration with other systems other systems •Alarms/Alerts •Internet access •History/Trends •Some remote control •Field productivityCommunication Call in/fax Upload Digital cell/satellite/radioCost Base personnel cost ~$10-15 per month Sensor install+approx $100/month (comm & software)
    5. 5. Production Data GatheringSpectrum: SCADA Pumper Hand Entry Field Data Capture Remote Monitoring SCADA DeviceData Frequency 1 per day 1 per day 12 to ~300 per day Near continuousIncremental Benefit Status Quo •Reduce transcription •Reduce transcription •Reduce transcription errors errors errors •Integration with •Integration with •Integration with other systems other systems other systems •Alarms/Alerts •Alarms/Alerts •Internet access •Internet access •History/Trends •History/Trends •Some remote control •Full remote control •Field productivity •Field staff reductionCommunication Call in/fax Upload Digital Dedicated radio cell/satellite/radioCost Base personnel cost ~$10-15 per month Sensor install+approx Long range radio $100/month (comm & systems, high end software) software
    6. 6. Remote Monitoring vs.SCADA X SCADA “We Report, You Decide”
    7. 7. Benefits of Remote MonitoringReduce downtime duration; increase productionReduce spill frequency and liability through monitoring and alarmsReduce safety liability (H2S exposure, tank climbing)Optimize field operations
    8. 8. What can you see?Process Variables Production Equipment Tank Levels Pump Off Controllers Pressures ESPs Tubing, Casing, etc. EFMs Flow Rates Plunger Lift Gas, Oil, Water Pumps Temperatures LACT Units Heater Treater, Amine, etc. Compressors H2S Concentration “If it can be measured, it can be monitored”
    9. 9. Remote Monitoring Components Tank Battery Cell Sat Radio Web InterfaceWellheads Database and HUB™RTU Software File Transfer Sensors
    10. 10. Sensors and LocalCommunicationSensors Industry sensors or proprietary? Modbus DevicesLocal Communication Short range radio or hard wired?
    11. 11. RTU, Long RangeCommunication, DatabaseHUB™ RTU Gather and package data for transmission to databaseCommunication Digital Cellular Satellite/Hybrids Radio Wireless BroadbandDatabase Co-lo Facility Cloud
    12. 12. Presentation/Access/HMIBrowser based vs. client/serverUser RightsTables, graphs, history, alarmsReports and export
    13. 13. Pumpers/Field Personnel“Forewarned is Forearmed”Plan day and route based on dataPump by exceptionAlarms/CalloutsContract PumpersReduce mileageReduce safety exposure
    14. 14. EngineersEasy access to trendsIdentify growing problems e.g. paraffinMonitor production equipment e.g. rod pumps, ESP’s, compressors
    15. 15. Management/Marketing/AdminOverview of production vs. expectationsEFM and LACT data for marketing, transportation and allocationDirect data entry into corporate systems
    16. 16. Economics of RemoteMonitoring Isolated or Remote Location High fluid Important: to tankage High ratio Ideal Producer RM Site History of High Exposure: H2S or problems Environmental
    17. 17. Quantify the BenefitsBenefits are probabilistic (If you knew which one site would go down, you’d just monitor that one!)Apply across enough sites to get the broader benefitsCompany-wide deploymentUse your actual downtime and spill history to estimate improvements
    18. 18. Production IncreaseDistribution Example Average=1.9%0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% More Percentage Increase
    19. 19. Economic Evaluation WELLKEEPER ECONOMIC ANALYSISCustomer XYZ Oil and GasCase: Single Battery; 50 BPD Oil, 10 MCFD Gas, 200 BPD WaterDate: 8/1/2012Input Summary: Economic IndicatorsLeases, wells, monitoring points (#) 1 NPV @ 10% $46,055Exisiting Production IRR= 76% Oil (BPD) 50 Straight Payout Period (years) 1.3 Gas (MCFD) 10 Water (BPD) 200Assumed Increased Production 1.0% First Year Wellkeeper Annual BenefitsNumber of Pumpers 0.1 Increased Production $12,136 75%Reduction in # of Spills per 10 years 2 Decreased Spill Costs $3,030 19% Pumper Optimization $1,028 6%
    20. 20. Economic SensitivityExample IRR versus Tank Battery Production (BOPD) 80% 70% 60% 50%IRR 40% 30% 20% 10% 0% 10 20 30 40 50 BOPD Base: 50 BOPD, 10 MCFD, 200 BWPD, $70/bbl, $2.50/MMBTU, 1% downtime reduction
    21. 21. One Final Analogy… “Why settle for only daily data?”
    22. 22. Thank You! Jim Taylor Wellkeeper, Inc. jim.taylor@wellkeeper.com www.wellkeeper.com 888-935-5533
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