Timothy Smith Petro Lucrum, Inc.

1. PETRO LUCRUM, INC.
"Don't be afraid to give up the good to go for the great." ~ John D Rockefeller
Applying Artificial Intelligence to Improve Pipeline Integrity

2. PETRO LUCRUM, INC.
DISCLAIMER
The information provided about projects and opportunities on this site are based on the best available information but has not be verified by Petro Lucrum and is
subject to change at anytime. Petro Lucrum does not make any warranties about the information provided herein and each respective party much do their own due
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subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking
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potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development,
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to war, accidents, political events, civil unrest, acts of God or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting
Countries); the potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under
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disposition of assets; gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or
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affected by general domestic and international economic and political conditions. This list is limited and additional risk not mentioned may apply including
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email us immediately and we will take care of it info@petrolucrum.com.

3. PETRO LUCRUM, INC.
PETRO LUCRUM INC. IS…
● 4th Generation Single Family Office.
● Focused on USA, onshore, operations and
technology
● Active in A & D, private & public equity.
● Headquartered in Houston, Texas.
PETRO LUCRUM INC. OPERATES…
● Oil & gas drilling
● Oilfield services
● Energy ventures
● Pipeline and facilities

4. PETRO LUCRUM, INC.
ABSTRACT
● Operators' perspective utilizing AI technology
providing predictive analytics and automated leak
detection
● Utilization of data optics such as drones, cameras,
and phone cameras to provide predictive
maintenance
● AI automation provides improved safety, better
efficiencies, less downtime, and reduces human
errors
● Automated detection of corrosion, stress cracks, and
soil changes for optimizing pipeline integrity

5. PETRO LUCRUM, INC.
RECORD ENERGY CONSUMPTION
Source: BP

6. PETRO LUCRUM, INC.
ENERGY MARKET: ARTIFICIAL INTELLIGENCE
Source: Emergen Research

7. PETRO LUCRUM, INC.
MIDSTREAM LEAK BY CAUSE
Source: Geospatial & PHMSA

8. PETRO LUCRUM, INC.
OLD / CURRENT TECHNOLOGY
Source: Birlasoft

9. PETRO LUCRUM, INC.
CURRENT APPLICATIONS
● Pipeline Failure Stimulation
● Pipeline Remaining Life Prediction
● Inline Inspection Tool Performance
● Dig Planning Automation
● Long Range Planning

10. PETRO LUCRUM, INC.
HISTORICAL PRACTICES
● Pipeline integrity management (PIM) is
implemented to lower the risk of failure due to
degradation and to maintain the functionality
and safety of pipelines.
● Currently, standalone software (even the typical
AI / ML promoted) is not integrated thus posed
inefficiency in overall integrity management
● Tedious, data risk and time consuming

11. PETRO LUCRUM, INC.
CHALLENGES
● Typical software is lacking ‘intelligence’
and analytics:
○ Manual data uploading and analyses.
○ Require full human intervention
during crisis/emergency.
○ No ‘split-second’ and ‘real-time’
capability to analyze pipeline
conditions.
○ No ‘self-learning’ for critical analyses
and enhancement of ‘historical’
database.

12. PETRO LUCRUM, INC.
NEW TECHNOLOGY TO GATHER DATA
● Our application is data agnostic, allowing us to
work with any form of data collection methods
including:
○ Aerial light detection and ranging sensor
(LiDAR) to pinpoint and measure leaks.
○ Airplanes equipped with sensors, coupled
with weather and atmospheric information to
measure methane emissions.
○ Airplane-mounted methane detection
spectrometer with simultaneous optical
imagery and geolocation to quickly locate
large leaks.
○ Helicopter-mounted, gas imaging surveys.
○ Drone-mounted gas sensors to detect and
quantify methane emission rates.
○ Truck-mounted autonomous sensors
measure methane emissions.
○ Stationary methane and wind sensors
continuously monitor for emissions.

13. PETRO LUCRUM, INC.
INDUSTRY ACCEPTANCE
● Non-destructive testing being utilized
● Drones, robotics, and sensors are all being
used to collect large data sets
● Mitigating Emissions
● Combustible Gas Indicator Application
● AI can ensure overall quality assurance
(QA) in all pipeline aspects
● Quicker response times in the event of an
incident

14. PETRO LUCRUM, INC.
WHY ARTIFICIAL INTELLIGENCE?
● Operators will be able to integrate their operational and
commercial management
● Quickly optimize the daily operational plan and
schedule
● By optimizing the operational strategy, not only based
on capacity but also considering the realtime and future
integrity of the pipeline, when modeling operational
scenarios is a powerful concept
● With the advent of useful machine learning and
analytics engines, the pipeline will be able to virtually
run itself

15. PETRO LUCRUM, INC.
WHY NOW?
● Technology expansion
● Advancements of data optics
including cameras and drones
● Greater IoT capabilities
● Digitalization of the industry
● The amount of data being created

16. PETRO LUCRUM, INC.
IMPLEMENTATION
● Identifying underlying statistical patterns enhancing in example
predictive models, anomaly detection, and operational
monitoring.
● Machine learning has been used with tremendous success on a
range of problems across industries
● Pipeline corrosion is one of the primary causes for pipeline
failure
● As a proactive IM strategy, it is highly dependent on the ability
to accurately predict the rate of corrosion growth
● Used to determine the structural integrity of sections of a
pipeline
● Determining the suitability of machine learning for defect
assessment and potential use in assisting predictive corrosion
models

17. PETRO LUCRUM, INC.
USE CASE: GAS EMISSION DETECTION
Source: Euro Space Agency

18. PETRO LUCRUM, INC.
USE CASE: INTEGRATING RIGHT OF WAYS
Source: University of ND

19. PETRO LUCRUM, INC.
USE CASE: LEAK DETECTION: INFRARED
Source: MDPI

20. PETRO LUCRUM, INC.
USE CASE: DEFECT DETECTION: MAGNETIC FLUX
Source: MDPI

21. PETRO LUCRUM, INC.
DIGITALIZATION WORKFLOW

22. PETRO LUCRUM, INC.
DIGITAL OILFIELD REALITIES
Petro Lucrum
Engaged
● Data management is worse than you think
● Technology Capabilities>deployed Technologies
● Organization capabilities for digital oilfield are more than
just a strategic staffing numbers game
● Most folks out there are too busy to listen
● Lessons learned from refining and process industries
are hard to transfer

23. PETRO LUCRUM, INC.
FUTURE APPLICATIONS
● Imaging technology to add intelligence to
remote assets and operations
● See the difference with Change Detection
● Image analytics can also be used for people
for project management and safety protocols
● Real-time visibility of infrastructure integrity
● Availability of real-time product flow and
imagery information that will be available for
analytics

24. PETRO LUCRUM, INC.
BREAKING DOWN THE SILOS
They are seeking to take full advantage of
instrumented, interconnected smart field
technologies by focusing on three primary areas:
● Integrating petro-technical processes to take
advantage of real-time data
● Building rationalized and standardized data
models
● Establishing data governance and ownership
processes

25. PETRO LUCRUM, INC.
ECONOMICS
● Calculating Return On Investment
○ Asset Management
○ Operational Efficiency
○ Integrated Safety

26. PETRO LUCRUM, INC.
NEW USES
● Automation of leak and defect detection, inspection, corrosion
detection, safety management, optimization, data collection and
analytics to create action plans that will be used by the engineering
teams
● Using satellite and permitting data to determine where unauthorized
building or development is occurring on or near pipelines
● Using our proprietary LIDAR scan software, we can take the amount of
data that is typically too large for anyone in house to deal with - making
the data useless or lost - requiring expensive LIDAR hardware and
refine it to specifications without any additional hardware
● Connect live tracking data for crews who are performing inspection or
maintenance in order to improve accountability, tracking and project
management
● Use of various drone mounted gamma ray, magnetic, electromagnetic
and ground penetrating radar to identify subsurface mapping for hazard
detection, leak detection and buried infrastructure / pipeline issues

27. PETRO LUCRUM, INC.
● Turning data into information, insight and action
● 50% increase global energy consumption over 25 years
● Through:
● Technology
● People
● Data
● Other
● Organizational enablers
● It’s not a quick fix
ROAD AHEAD

28. PETRO LUCRUM, INC.
● Geospatial: geospatial.blogs.com
● Integra Data and Analytics: integradas.ca
● Research Gate: researchgate.net
● Pipeline Journal: pipeline-journal.net
● School of PE: schoolofpe.com
● UIS Brage: uis.brage.unit.no
● Oil and Gas Engineering: oilandgaseng.com
● Oil and Gas Technology: oilandgastechnology.net
● InfraSix, LLC: http://InfraSix.com
SPECIAL THANKS

29. PETRO LUCRUM, INC.
Petro Lucrum, Inc.
Office: 1-832-993-5426
Address: 3525 Sage Road, Suite 1416 Houston TX 77056
Email: Tim@PetroLucrum.com
Website: http://PetroLucrum.com
LinkedIn: http://www.LinkedIn.com/in/TimothySmithSFO
SINGLE FAMILY OFFICE
Petro Lucrum, Inc