A new OSRP business model

1. Dear Sponsors , Colleagues and Stakeholders,
I hope that this note finds you very well.
This e mail has several purposes and messages: (1) to share the new M-OSRP
business model and IBM proposal for
cost effective compute access, processing and optimization ; (2) to invite input for
/participation in the pilot project lead by Scott Morton of Hess Corp. for the IBM
iCloud HPC proposal ;(3) discuss the ConocoPhillips speedup of the ISS internal
multiple attenuator, reducing a 3D runtime by a factor 1000 , e.g. reducing a 3D
run from three years to one day, without compromising effectiveness; (4) to
describe the upcoming M-OSRP next set of stand-alone game-changing
deliveries and how they relate to specific technical challenges and priorities in the
current industry downturn, and will benefit from the IBM iCloud HPC proposal,
and (5) invitation to the M-OSRP Annual Technical Review and Meeting ,
Wednesday and Thursday June 8, 9, 2016 at the UH Hilton, and (6) the note
below has distinct and separate positive messages for both sponsors and non-
sponsors.
The new M-OSRP business model
The new M-OSRP business model and IBM proposal recognize and respond to
the current petroleum industry downturn, with , e.g., cost cutting, reduced capital
expenditure, selling assets, challenges with replacing reserves, achieving
improved ROI. And within that difficult environment to deliver the stand alone
capability to make currently inaccessible assets accessible, and accessible
prospects better defined and delineated. That will result in enhanced exploration
and more effective appraisal analysis and development opportunities - thereby
contributing to new discoveries and increased production and improved reserve
replacement.
The IBM i Cloud HPC proposal
The IBM iCloud HPC proposal provides a pay-as-you-go plan and strategy for
the compute access, seismic processing and optimization of the current M-OSRP
stand-alone capable codes ( that are often compute demanding) and the next
generation of necessary and yet more effective M-OSRP deliverables ( that have
a commensurate greater compute demand and requirement) in a cutting costs
reduced capital expenditure environment . Among projects and deliverables are :
removing ground roll without damaging reflection data, internal multiple
elimination, and a new and first migration method that is equally effective at all
frequencies at the target and reservoir. What M-OSRP will do will not change;
what M-OSRP will deliver to our sponsors and the petroleum industry will
change.
In the link below, please find videos of the presentations from the Dec. 17, 2015
IBM meeting at M-OSRP/UH: a IBM iCloud HPC proposal and new M-OSRP
business model

2. http://mosrp.uh.edu/news/ibm-proposal-for-cost-effective-processing-a-new-
mosrp-business-model
The pilot project
Scott Morton of Hess Corp. is leading a pilot project to examine, analyze and
report on the IBM iCloud proposal using M-OSRP delivered multiple attenuation
codes with a Hess data set. For M-OSRP sponsors: please feel free to contact
Scott on any issues you would like to see examined in this iCloud pilot test. Scott
Morton can be reached at smorton@hess.com.
For non-sponsors
For non-sponsors who might be interested in this pilot, and the new M-OSRP
business model and IBM proposal, please feel free to contact me at
aweglein@Central.UH.EDU.
The new M-OSRP Business Model and the IBM iCloud HPC proposal
The cost-effective processing access will influence and benefit drilling decisions
that are optimally informed with reduced dry hole drilling and to optimize field
development wells, for offshore and on-shore conventional and unconventional
plays. M-OSRP has been and remains committed to research that identifies the
most serious and significant impediments to that effectiveness and addresses
and delivers the most capable and effective response to the significant
challenges to E&P goals and objectives.
The new business model maintains that high impact research commitment and
what we will do, but changes what we will deliver. The new M-OSRP business
model has a cost-effective IBM iCloud HPC pay-as-you-go proposal for access,
processing and optimization that provides a new benefit and ROI to our
sponsors.
For non-sponsors : Many oil and service companies (that even under better
industry circumstances) do not have a business model that depends on support
of directed fundamental high impact research programs, could be interested in
the pay-as-you-go access, in a cost and capital expenditure reduced
environment, to achieve high end processing capability.
For sponsors and non-sponsors: This will be the new M-OSRP business model
going forward, near-term and after our industry rebounds and recovers.
ConocoPhillips speedup of the ISS internal multiple attenuator : We are in
discussions with ConocoPhillips for implementation cooperation and also
discussing incorporating that advance within the new M-OSRP business model
and IBM i Cloud HPC proposal.

3. We are also exploring whether/how the ConocoPhillips speedup could benefit our
upcoming deliverables that are needed for currently inaccessible assets and are
more effective, and are specifically designed to remove multiples that interfere
with primaries , without damaging , for example, the image at the reservoir for
structural plays or amplitude analysis ( for both offshore and on-shore
conventional and unconventional plays). They are more computationally
demanding than the M-OSRP ISS internal multiple attenuator. Those types of
interference can frequently occur in offshore plays and very frequently occur for
conventional and unconventional on-shore plays.
Please see the link below that describes and exemplifies the offshore and on-
shore challenges and open issues and our strategy and response that addresses
it for both marine and on-shore plays.
We think that several different current developments within M-OSRP that are
more capable at removing internal multiples than the ISS internal multiple
attenuator might also benefit from the ConocoPhillips speedup for the ISS
internal multiple attenuator.
Making currently inaccessible assets accessible, and accessible prospects better
delineated and defined
The increased effectiveness that M-OSRP is developing and will deliver to our
sponsors is designed to remove multiples that interfere with primaries , without
damaging , for example, the image at the reservoir for structural plays or
amplitude analysis. Those types of interference can frequently occur in offshore
plays and very frequently occur for conventional and unconventional on-shore
plays.
The current most capable strategy consisting of an ISS internal multiple
attenuator plus adaptive subtraction can and will damage a target reservoir
primary that interferes with a multiple. Damaging a target primary is an extremely
serious matter, and processors/interpreters will often leave in the interfering
multiple on top of the reservoir rather than risk damaging or destroying a target
primary.
One of our next M-OSRP deliverables directly responds to that current open
issue and significant off-shore and on-shore exploration and development
challenge.
When we sometimes hear ‘we are not interested in multiples’ , we respond that
everyone is interested in the increase of accessible prospects and plays and
advances in effective structural and amplitude analysis that are currently
precluded or impeded-- and where a significantly more effective multiple removal
is absolutely essential to make those currently inaccessible prospects accessible

4. and able to contribute to exploration and production successes and reserve
replacement. That’s why more effective multiple removal is interesting.
Speaking of ‘interested’ and ‘not interested’ , it is reasonable and understandable
that more oil and service companies would be interested in availing themselves
of the most capable and cost effective seismic processing , than would be
interested in supporting fundamental directed high impact research for the next
and necessary level of increased seismic effectiveness- that’s always been true
and will always remain true- and especially under a difficult downturn. The new
M-OSRP business model and IBM iCloud HPC proposal recognizes that set of
reasonable and understandable interests and responds to and provides the
former, to protect and support the latter.
Please see the video in the link below where that open issue and current
challenge and our response and delivery are described.
http://mosrp.uh.edu/news/responding-to-the-current-challenges-in-offshore-
onshore-multiple-attenuation
Researching and delivering the next generation of seismic migration for
improving structural plays and more effective amplitude analysis
The ability to produce an effective structural map and to apply amplitude analysis
depends on several factors including: (1) the data acquisition, (2) de-ghosting
and (3) the methods employed to deliver and analyze that data at the target and
reservoir. The latter is a weak link today in the seismic processing chain, and , for
example, all migration methods today, including RTM, and all extensions of the
original RTM idea have high frequency approximations. Hence, they do not treat
the new broad band data with equal effectiveness where it is relevant and most
important, at the target and at the reservoir. M-OSRP has developed the first
migration method that is equally effective at all frequencies, and at the place
where that broad band data is needed: at the reservoir.
Please see the link below.
It will be more effective than all current migration methods including in particular
all RTM methods, and it will have a commensurate higher compute requirement.
It has the potential to better assess structural targets beneath highly absorptive
overburdens , and to perform amplitude analysis , including the variation of
amplitude along a laterally extensive unconventional reservoir. Along with our
multiple removal algorithms it will benefit from and require the IBM iCloud HPC
proposal.
Please see the link below with a video recording presentation “ The first migration
method for a heterogeneous medium that is equally effective at all frequencies :
a new and more effective imaging tool box option for amplitude analysis ( e.g.,

5. FWI and AVO)for conventional and unconventional prospects, and for subsalt
and sub-basalt structural plays” , Arthur Weglein, UH, December 14, 2015.
https://drive.google.com/file/d/0B4HzpkppeJ-
oZV90NzBoQUJ5T2c/view?usp=sharing
In summary, please see the “Executive Summary Video with Delivered and
Documented Added-Value and Impact” .
Executive summary video: the M-OSRP delivered added value and documented
E&P impact, March 9, 2015
http://mosrp.uh.edu/news/mar-9-exec-summary-video
Below please find the earlier correspondence with Daryl Williams of IBM, that we
previously shared on the IBM i Cloud HPC cost effective , reduced capital
expenditure processing proposal.
We look forward to staying in touch on the pilot project with Scott Morton, and
seeing you at our Annual Technical Review June 8, 9, 2016 at the UH Hilton.
As always, sending my warmest and very best regards,
Art
Dr. Arthur Benjamin Weglein
Hugh Roy and Lillie Cranz Cullen Distinguished University Chair in Physics
Director, Mission-Oriented Seismic Research Program
Professor, Dept. of Physics, and Professor, Dept. of Earth and Atmospheric
Sciences
Physics Department , SR1 617
University of Houston
Houston, Texas 77204-5005
Office phone 713-743-3848
Office fax 713-743- 3589
aweglein@uh.edu