‘
Outlining the History of Digital Oilfield (DOF),
Integrated Operations (IO) and Collaborative Working
in Oil and Gas Ove...
Our expertise
• an unrivalled resource in the application of Integrated
Operations (IO) and digital oilfield enabled capab...
our clients - oil and mining companies
Integrated Operations, Strategy and Implementation and
IO for Projects, implementat...
our clients - oil and mining companies
Operations IO strategy and IOC centre design for APLNG
based in Brisbane
IO strateg...
Integrated Operations – is seen as the future and the
way of optimising the oil and gas business
Flow Assurance Analysis
S...
i-Field, Digital Oilfield, Smart Fields, Integrated
Operations ..what does it all mean?
fieldofthefuture
tm
Smart Field
XM...
Value Realised in Oil and Gas
• Production Efficiency – 0.5 – 5%
• Operations and Maintenance
– Opex Cost Reduction 5-15% ...
Senior management sees Integrated
Operations transforming our industry
“Integrated Operations is a revolution that is resh...
Shell Benefits from Smart Fields
SPE - 128245
Reported in 2010
• Up to end 2009
• Based on $30 boe
• Entire SmartField
Pro...
BP FotF and ACE Implementation
SPE 128672
What is Integrated Operations?
‘The vision for the Digital Oil Field is one where operators, partners,
and service compani...
Drivers
• Discoveries in increasingly
remote locations
• Key skill shortages
• Increasing technical nature of
new discover...
The History of Integrated Operations has shown the
following trend Value gained over time
Value
Time
Technology
Physical
E...
Value
Time
Technology
Process
Physical
Environment
• Process Workflows need to be updated
• For the reduced decision makin...
Value
Time
People
Technology
Process
Physical
Environment
• A people approach to MOC is the key to success
• A process onl...
Value
Time
People
Technology
Process
Physical
Environment
Organisation
Micro
• The micro-organisational structure needs to...
Value
Time
People
Organisation
Technology
Process
Physical
Environment
Organisation
Micro
Macro
• The Company or Macro Org...
An Integrated approach
Value
Time
People
Organisation
Technology
Process
Physical
Environment
Organisation
Micro
Macro
Int...
Integrated Operations - A Capability Approach
‘By a capability we mean the combined capacity and ability to plan and execu...
The measurement to decision lifecycle
StoreMeasure Data
Transmit
Building Trust
Building Confidence
Building
Understanding...
IO elements for Success
Highest
Cost
Highest
Value
Change, Leadership, Training
Decision and Action
Organisation and Gover...
Shared Situational Awareness
Shared Knowledge
& Situational Awareness
• Quality Real Time
data/information
• Mutual Unders...
Situational awareness
A definition of situational awareness is:
• “If you have a function to perform in a situation that i...
…its about collaboration…
Drilling &
Well
Maintenance
Equipment
Maintenance
Production
Reservoir
Geology
Logistics
Well
Pl...
• A new way to organize an operation
• Collaboration between people, across disciplines,
companies and places
• Truly inte...
The focus and value of IO is in moving towards
real time decision making and optimisation
Mins > Hours Hours > Days Days >...
Collaborative Environment Success Factors
• The ability to Collaborate
• One to One, One to Many, Many to Many
• Always on...
A network of Collaborative Environments build
a vision of a new way of working
Integrated Organisation – Fully Integrated Asset Management
Benefits:
• Increased availability
• Reduced maintenance costs...
Changes enabled by Integrated operations
Before With IO
Serial
Single discipline
Dependent of physical
location
Decisions ...
Conclusions
• The vision of a ‘new way of working’ is beginning to be
realised in many companies
• It is about Distributed...
Integrated Operations – is a framework to optimise the
other business’ – Mining
Real-time Data
And Visualization
Collabora...
‘
Stuart Carnell
stuart.carnell@stepchangeglobal.com
+61 419 169 232
Questions
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Stuart Carnell, Stepchange Global - Outlining the History of Digital Oilfield (DOF), Integrated Operations (IO) and Collaborative Working in Oil and Gas Over The Last Decade

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Stuart Carnell, Senior Integrated Operations Advisor, Stepchange Global delivered this presentation at the 2nd Annual Control Room Design & Operations Conference.

This conference provided insights into streamlining operations, optimising efficiency & managing costs in your control room facilities, through effective design and operations.

For more information, visit http://www.informa.com.au/controlroomdesign14

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Stuart Carnell, Stepchange Global - Outlining the History of Digital Oilfield (DOF), Integrated Operations (IO) and Collaborative Working in Oil and Gas Over The Last Decade

  1. 1. ‘ Outlining the History of Digital Oilfield (DOF), Integrated Operations (IO) and Collaborative Working in Oil and Gas Over The Last Decade Stuart Carnell – StepChange Global Control Room Design & Operation Conference – March 2014
  2. 2. Our expertise • an unrivalled resource in the application of Integrated Operations (IO) and digital oilfield enabled capabilities • working with the leading companies in the field • programmes, projects and pilots • expertise from within oil and gas companies • associations with leading institutions • expertise in building ‘capability platforms’ • people lead management of change • people that have expertise across the entire value chain • subsurface, surface, projects, operations, LNG, mining
  3. 3. our clients - oil and mining companies Integrated Operations, Strategy and Implementation and IO for Projects, implementation of new operational models Advanced Collaborative Environment Expert Strategy for Aberdeen based assets Strategy for application of IO to Brownfield redevelopments and marginal Greenfield projects Integrate Operations centre design and IO advisory services Australian Operations – Brisbane GLNG and EABU Collaborative Environment Strategy and Pilot IO Operations Implementation Strategy for the Goliat Field IO Strategy support for the Operations of the future program IO internal training workshop for senior managers
  4. 4. our clients - oil and mining companies Operations IO strategy and IOC centre design for APLNG based in Brisbane IO strategy support for the Western Australia business unit Design of the IROC control floor layout in the new office building in Perth Corporate IO strategy – Support and advisory services to the corporate IO Programme office IO Strategy advice workshop for the Indonesian regulator and operators IO benefits study and value capture framework for the ADCO North East Bab Asset Full IO strategy plus IO centre design for operation, drilling and subsurface IO Strategy support and IO Centre design services for the Woodside Browse iOps programme ‘Integrated Operations’
  5. 5. Integrated Operations – is seen as the future and the way of optimising the oil and gas business Flow Assurance Analysis Surveillance and Control of Subsea Production Systems Umbilical and Flow line Monitoring Drilling and Completions Production optimization Condition Based monitoring IWIS Real-time Data And Visualization Collaborative working (CWEs) Remote Operations & Management Knowledge Management Production Excellence Reliability and Maintenance Operations Excellence Reservoir Management Integrated Planning Environmental Monitoring Major Projects Asset Integrity Intelligent Completions Well Optimisation
  6. 6. i-Field, Digital Oilfield, Smart Fields, Integrated Operations ..what does it all mean? fieldofthefuture tm Smart Field XM2010 ‘Integrated Operations’ Integrated Operations Integrated Operations GEDIG i-Value
  7. 7. Value Realised in Oil and Gas • Production Efficiency – 0.5 – 5% • Operations and Maintenance – Opex Cost Reduction 5-15% Standard Industry figures • Drilling and Well Planning – Reduction in NPT – 5-15% reduction in total well time – Concurrent Planning – Well planned < 2 weeks – Improved well targeting and reservoir contact • HSE – 25% Reduction in offshore staff by Statoil – Risk Reduction – Operating Envelope • Brownfield – Field life extension by the application of IO • Projects – No IO Design being offered by EPC Contractors – Brownfield learning bolted on to a greenfield
  8. 8. Senior management sees Integrated Operations transforming our industry “Integrated Operations is a revolution that is reshaping our industry” – Helge Lund – StatoilHydro – iE2008 “All new fields will be intelligent fields” – Amin Nasser – Saudi Aramco “I expect the use of Smart Technology to accelerate over the next decade” – Malcolm Brinded – Shell – iE2008 “Our Operations Centre in Aberdeen monitors 28 rigs simultaneously” – Andrew Gould – Schlumberger iE2008 “We have gained 85 mboed of production at $3-6 per boe” – Dave Latin – BP Digital Energy Conference 2009
  9. 9. Shell Benefits from Smart Fields SPE - 128245 Reported in 2010 • Up to end 2009 • Based on $30 boe • Entire SmartField Programme
  10. 10. BP FotF and ACE Implementation SPE 128672
  11. 11. What is Integrated Operations? ‘The vision for the Digital Oil Field is one where operators, partners, and service companies seek to take advantage of improved data and knowledge management, enhanced analytical tools, real-time systems, and more efficient business processes’ CERA: Digital Oil Field of the Future What is enabled by an IO? • Moving to a real time or near real time way of working • Connection of one or more remote sites or teams to work together • Moving to more multidiscipline way or working • Value chain integration and optimisation ‘How we run our companies in the future’
  12. 12. Drivers • Discoveries in increasingly remote locations • Key skill shortages • Increasing technical nature of new discoveries • Performance Improvement • Production efficiency • Reservoir recovery • Operational cost base • High or Low Commodity Price? • Risk reduction both HSE and Production. • Value chain integration Enablers • High bandwidth communication • Large storage capacity • Quality video conferencing • New sensor technologies • New Analytical Methods • New Business Processes • New SCM Models • New Operational Models • New Organisational Models Drivers and Enablers for Integrated Operations
  13. 13. The History of Integrated Operations has shown the following trend Value gained over time Value Time Technology Physical Environment • The Technologies are all available? • Technology is the enabler • The design of the Physical Environment can be done
  14. 14. Value Time Technology Process Physical Environment • Process Workflows need to be updated • For the reduced decision making cycle time • For alignment of geographically remote communities • Temptation is to ‘fix the processes’ roll out • Experience has shown that this approach is only partially successful • Work processes in Collaborative Environments evolve! The History of Integrated Operations has shown the following trend Value gained over time
  15. 15. Value Time People Technology Process Physical Environment • A people approach to MOC is the key to success • A process only approach to MOC will not work! • If your people are not aligned with your management vision it will not be a success, top to bottom • Need to work with all levels in an organisation The History of Integrated Operations has shown the following trend Value gained over time
  16. 16. Value Time People Technology Process Physical Environment Organisation Micro • The micro-organisational structure needs to follow the value opportunity • Multidiscipline teams are needed to optimise • Geographical boundaries become irreverent The History of Integrated Operations has shown the following trend Value gained over time
  17. 17. Value Time People Organisation Technology Process Physical Environment Organisation Micro Macro • The Company or Macro Organisational model will need to support the change in the way of working • There are global opportunities • Optimisation of the extended Oil/Gas Value Chain • Support functions need to be operationally aware The History of Integrated Operations has shown the following trend Value gained over time
  18. 18. An Integrated approach Value Time People Organisation Technology Process Physical Environment Organisation Micro Macro Integrated approach to MOC is needed For a successful company wide implementation of Intelligent Fields Concept and a move to a ‘Global Real time Organisation’ Capability Deployment rather than technology implementation
  19. 19. Integrated Operations - A Capability Approach ‘By a capability we mean the combined capacity and ability to plan and execute in accordance with our business objectives through a designed combination of human skills, work processes, organisational change and technology’* A Capability is a performance improvement methodology that is value driven, measurable and action oriented. To have the ‘Capability’ to improve business value you must have all of four key elements in place:  Process – What is the core value process and underlying processes that is to be improved and updated  Technology – What technologies are needed to improve the process  People/Resource – What skills, competencies and behaviours are needed to execute the process and use the supporting technologies  Organisation/Governance – What organisational structures, incentives and relationships are needed to execute the process * Henderson and Kulutilaka 2008 – Boston University School of Management
  20. 20. The measurement to decision lifecycle StoreMeasure Data Transmit Building Trust Building Confidence Building Understanding Implement Decision Obtain Value Analyse Improving Operational Excellence
  21. 21. IO elements for Success Highest Cost Highest Value Change, Leadership, Training Decision and Action Organisation and Governance Collaborative Working Information Analysis Information Visualisation Communications Infrastructure Data Capture and Storage Value Creation Work Process
  22. 22. Shared Situational Awareness Shared Knowledge & Situational Awareness • Quality Real Time data/information • Mutual Understanding - Shared Mental Model • Trust Break Even Throughput Time Operating Target Design LimitOperational Safety Margin Loss Shut Down Profit Partial Shut Down Plant Upsets Lost Opportunity Where the Money is: Eliminate the Red ……….. ……….. Squeeze the Green Break Even Throughput Time Operating Target Design LimitOperational Safety Margin Loss Shut Down Profit Partial Shut Down Plant Upsets Throughput Time Operating Target Design LimitOperational Safety Margin Loss Shut Down Profit Partial Shut Down Plant Upsets Lost Opportunity Where the Money is: Eliminate the Red ……….. ……….. Squeeze the Green Measurable Improved Performance Synchronised Action & a Reduced Cycle Time Observe Action Decide Analyse Capability to Add Value • People • Process • Technology • Organisation ‘to know what is going on so you can figure out what to do’.
  23. 23. Situational awareness A definition of situational awareness is: • “If you have a function to perform in a situation that is fairly complex and dynamic, such that you have to make decisions, then you have to be aware of what is going on—at different levels—if you are to make the right decisions to achieve your goals”. A simpler definition of situational awareness is: ‘to know what is going on so you can figure out what to do’. There are three steps in the development of a team's shared situational awareness. • Build individual situational awareness. • Share individual situational awareness in order to build a shared mental model from the individual mental models. • Develop the group's shared situational awareness. This is the integration of the different individual mental models of the situation.
  24. 24. …its about collaboration… Drilling & Well Maintenance Equipment Maintenance Production Reservoir Geology Logistics Well Planning …between disciplines, across business units, with suppliers and locations
  25. 25. • A new way to organize an operation • Collaboration between people, across disciplines, companies and places • Truly integrated Multidiscipline teams • Distribution of internal & external information • and knowledge • Better use of scarce resources • A dynamic organization • Distributed real time working • Has reduced decision time and improved decision making • Is the way you add value from Integrated Operations Collaborative Environments
  26. 26. The focus and value of IO is in moving towards real time decision making and optimisation Mins > Hours Hours > Days Days > weeks Weeks > Months > Years Timescale of Work Process CE Key Processes Well Optimisation Production Optimisation System Optimisation Drilling Performance Optimisation Defect/Fault Resolution Maintenance and Eng Support Level 1 ‘Near Real Time Team’ • Support to CE • Located close to CE • Asset Based Team • Multidiscipline e.g. Res Surveillance. • Dedicated Resource Short Cycle Time Level 2 ‘Support Team’ • Discipline Based Eng Functions • Assurance • Shared Asset Resource • Located farther from CE • Maintenance Planning ‘Support Functions’ • HR, IT, • Eng Mods & Changes • Shared Resource • Located Remote from Collaborative Environment Level 1 Support ‘Real Time Team’ • Real Time Data Enabled • Real Time Decision Making Plan Implementation Short Term Planning Long Term Planning Technology Plans etc… Integrated Field Planning Real Time Optimisation is Core to CE environments
  27. 27. Collaborative Environment Success Factors • The ability to Collaborate • One to One, One to Many, Many to Many • Always on VC to build situational awareness • Full time occupancy of the rooms – The entire asset team is involved • Modes of working • Planned and execute • Synchronised way of working • Organisational Alignment • Team organisation needs to be aligned to Collaborative way of working • Often a move to multidiscipline Asset Teams • One team approach i.e. team in the field and the office the same team • Performance incentives for the teams need to be aligned • Change management and coaching to change the way of working
  28. 28. A network of Collaborative Environments build a vision of a new way of working
  29. 29. Integrated Organisation – Fully Integrated Asset Management Benefits: • Increased availability • Reduced maintenance costs • Guaranteed performance for known through life cost • Long term benefits for both operator and supplier • Optimised processes and organisational structure • Value driven organisation wide decisions • Understand interdependencies
  30. 30. Changes enabled by Integrated operations Before With IO Serial Single discipline Dependent of physical location Decisions based on experience data Reactive Parallel Multidiscipline teams Independent of location Decisions based on Real-time Data Proactive A big change to the way we work
  31. 31. Conclusions • The vision of a ‘new way of working’ is beginning to be realised in many companies • It is about Distributed Real Time Working • There is significant proven value in Integrated Operations • Technology is the enabler but Consideration of People, Process and Technology a key to success • IO is very Company, Culturally and Organisationally specific • The vision is how we tie together IO Projects • IO is fundamentally changing the way we do business in Oil and Gas • Integrated Operations is how we will run our companies in the future
  32. 32. Integrated Operations – is a framework to optimise the other business’ – Mining Real-time Data And Visualization Collaborative working Remote Operations & Management Knowledge Management Production Excellence Reliability and Maintenance Operations Excellence Water Management Integrated Planning Environmental Monitoring Asset Integrity Energy Management Product Quality Production optimisation Event Management Expert Support
  33. 33. ‘ Stuart Carnell stuart.carnell@stepchangeglobal.com +61 419 169 232 Questions

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