GIS Technology in the Petroleum Industry

121 August 2002

GIS TechnologyGIS Technology

in the Petroleum Industryin the Petroleum Industry

W. N. (Bill) WallyW. N. (Bill) WallyWNW Consulting, LLCWNW Consulting, LLC

Tel: 713-857-5170Tel: 713-857-5170FAX: 713-665-7555FAX: 713-665-7555

Internet: gis_guy@swbell.netInternet: gis_guy@swbell.net

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GIS TechnologyGIS Technologyin the Petroleum Industryin the Petroleum Industry

• BackgroundBackground• What is a GISWhat is a GIS• Business driversBusiness drivers• Issues Issues • Future expectationsFuture expectations• SummarySummary

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BackgroundBackground

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Major oil company operationsMajor oil company operations

• International in scope (for over 100 years)International in scope (for over 100 years)• Challenges:Challenges:

– Technical (e.g. deepwater oil production, gas-to-liquids)Technical (e.g. deepwater oil production, gas-to-liquids)– Environmental (HCAs, protected habitats, spills)Environmental (HCAs, protected habitats, spills)– Economic (volatile oil prices, low profitability)Economic (volatile oil prices, low profitability)– Legal (royalty payments, reporting requirements)Legal (royalty payments, reporting requirements)

• 49 CFR part 19549 CFR part 195

• Large volumes of complex data that must beLarge volumes of complex data that must be– managedmanaged– organizedorganized– displayeddisplayed

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Oil industry GIS chronologyOil industry GIS chronology

• Early ~1980’s adopters include Exxon, Shell, AmocoEarly ~1980’s adopters include Exxon, Shell, Amoco– ““It’s the only technology that can manage most of our data -- wells, leases, It’s the only technology that can manage most of our data -- wells, leases,

grids, seismic lines, culture, etc.”grids, seismic lines, culture, etc.”

• Many competing technologies (mostly VMS/Unix)Many competing technologies (mostly VMS/Unix)– in-house, Genasys, Vortex, etc...in-house, Genasys, Vortex, etc...

• Confusion/conflicts between CAD and GIS Confusion/conflicts between CAD and GIS • 1989 - “Operation Database/GIS”1989 - “Operation Database/GIS”• 1990 - ex-Texaco geologist Bill Slinkard joined ESRI 1990 - ex-Texaco geologist Bill Slinkard joined ESRI

– PUG was formedPUG was formed

• 2000 - ESRI becomes the defacto GIS standard for the petroleum 2000 - ESRI becomes the defacto GIS standard for the petroleum industryindustry

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• $104 billion annual revenues (2001)$104 billion annual revenues (2001)• ($3.7 billion net)($3.7 billion net)

• Operations in 180 countriesOperations in 180 countries• ~ 20,000 miles of pipelines~ 20,000 miles of pipelines• 11.8 billion barrels oil & gas equivalent reserves11.8 billion barrels oil & gas equivalent reserves• 2.7 million BOPD daily production worldwide2.7 million BOPD daily production worldwide

• (~3% of worldwide consumption) (~3% of worldwide consumption) • ~50,000 employees~50,000 employees

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What is a GIS?What is a GIS?

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• A geographic information system (GIS) is software that uses A geographic information system (GIS) is software that uses locationlocation to to link digital databases, providing users with link digital databases, providing users with map-based access to map-based access to information.information.

• A GIS can also link to data A GIS can also link to data that is not in the GISthat is not in the GIS::– reports (e.g. environmental hazards, material safety data, contracts)reports (e.g. environmental hazards, material safety data, contracts)– Safe Operations - Process Safety Information:Safe Operations - Process Safety Information:

• PFDs, P&IDs, Safe Charts, Equipment Layouts, Area Classifications, Fire & Safety Layouts, Electrical One PFDs, P&IDs, Safe Charts, Equipment Layouts, Area Classifications, Fire & Safety Layouts, Electrical One Lines, etc.)Lines, etc.)

– other facilities databases for safe operations management practices other facilities databases for safe operations management practices • Management of Change, Process Hazard Analysis, etc.Management of Change, Process Hazard Analysis, etc.

– images (pictures, scanned drawings, CAD)images (pictures, scanned drawings, CAD)– videosvideos– other databases (e.g. Oracle)other databases (e.g. Oracle)

• This is a This is a very powerful featurevery powerful feature, since it allows digital data to be accessed , since it allows digital data to be accessed geographically, without first copying it into a GISgeographically, without first copying it into a GIS

What is a GIS?What is a GIS?

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How does a GIS work (1)?How does a GIS work (1)?

• A GIS stores, analyzes, and displays A GIS stores, analyzes, and displays geographic datageographic data

and and attributesattributes of geographic data of geographic data

• Geographic dataGeographic data is data about things that have a location: is data about things that have a location:• trees trees (species, age, height,…)(species, age, height,…)

• houses houses (owner, street address, # of rooms, age, ….)(owner, street address, # of rooms, age, ….)

• roads roads (name, # of lanes, surface, quality)(name, # of lanes, surface, quality)

• cities cities (name, population, age, etc.)(name, population, age, etc.)

• countries countries (name, population, etc.)(name, population, etc.)

• wells wells (id, status, when drilled, current oil production, etc.)(id, status, when drilled, current oil production, etc.)

• A GIS displays geographic data as if it were a series A GIS displays geographic data as if it were a series

of transparent maps, overlain on each otherof transparent maps, overlain on each other

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Example GIS displayExample GIS display

ThemesThemes

TableTable

View (map)View (map)

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What data do we access with a GIS?What data do we access with a GIS?

• wellswells

• pipelinespipelines

• seismic survey locationsseismic survey locations

• production and refining facilities production and refining facilities

• engineering drawingsengineering drawings

• photographs of facilities, wellheads, etc.photographs of facilities, wellheads, etc.

• safety and environmental reportssafety and environmental reports

• land ownership and permitsland ownership and permits

• roads, rivers, village boundariesroads, rivers, village boundaries

• digital orthophotos and satellite imagesdigital orthophotos and satellite images

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What is different about a GIS?What is different about a GIS?

Although the primary GIS “product” is a map, it is different Although the primary GIS “product” is a map, it is different

from conventional maps because:from conventional maps because:• it is a graphical display conveying spatial informationit is a graphical display conveying spatial information

about the underlying data, that can be about the underlying data, that can be interactivelyinteractively

modifiedmodified by the end-user by the end-user• the map scale is completely variable -- this hasthe map scale is completely variable -- this has

significant implicationssignificant implications regarding location data accuracy regarding location data accuracy • GIS data can be GIS data can be sharedshared, i.e. accessed by different users in, i.e. accessed by different users in

different ways different ways at the same timeat the same time

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GIS Business DriversGIS Business Drivers

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GIS Business Drivers:GIS Business Drivers:

Multidisciplinary asset teamsMultidisciplinary asset teams

• More data sharingdata sharing among– geophysics– geology– petroleum engineering– facilities engineering– land/legal– safety and environment

• One thing in common:– WHEREWHERE is the asset?

• GIS “spatial window”“spatial window” is the best way to access diverse data

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GIS Business Drivers:GIS Business Drivers:Expanding IT marketplaceExpanding IT marketplace

• Leverages other industriesLeverages other industries• Lowers costs “per seat”Lowers costs “per seat”• 10,000 times as many users - same price10,000 times as many users - same price• Cost comparison:Cost comparison:

CompanyCompany IndustryIndustry GeneralGeneral

SpecificSpecific SpecificSpecific PurposePurpose

$ Development $ Development $$1,000,0001,000,000 $10,000,000$10,000,000 $200,000,000$200,000,000

# of sites # of sites 11 100100 1,000,0001,000,000

$ per site $ per site $1,000,000$1,000,000 $100,000$100,000 $200$200

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GIS technology has a proven performance record:GIS technology has a proven performance record:• cutting costs of constructioncutting costs of construction

– production facilities - by providing better “as-builts”, and also accurate maps production facilities - by providing better “as-builts”, and also accurate maps of nearby hazards or other sensitive areas of nearby hazards or other sensitive areas

– pipelines - more accurate routing means more accurate estimates of pipelines - more accurate routing means more accurate estimates of quantities needed for pipe materialsquantities needed for pipe materials

• supporting G&G, Engineering, HSE, emergency response, and related supporting G&G, Engineering, HSE, emergency response, and related reporting requirementsreporting requirements– government agencies now require GIS datasets as well as reportsgovernment agencies now require GIS datasets as well as reports

• high-grading existing location datahigh-grading existing location data– wellswells– pipelinespipelines– facilitiesfacilities

ChevronTexaco example: ChevronTexaco example: to comply with FTC requests, created ~100 custom maps showing to comply with FTC requests, created ~100 custom maps showing CHV/TX/competitor pipelines, facilities, properties, production, etc. in CHV/TX/competitor pipelines, facilities, properties, production, etc. in less than 2 monthsless than 2 months

Value of GIS TechnologyValue of GIS Technology

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• Estimated cost savings resulting from better decision-making: – 1% of current worldwide expenditures for

• drilling rig positioning • emergency response• offshore flowline construction• tanker truck fuel costs

– 1% of $1 billion = $10 million

• Estimated cost increases from failing to correctly report operations activities to appropriate government, environmental NGOs, and local stakeholders:– mega$$$$....

GIS Business Drivers:GIS Business Drivers:Business CaseBusiness Case

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GIS Organization ModelGIS Organization Model

InformationInformationTechnologyTechnology

GIS GIS AdvisorAdvisor

GIS GIS SupervisorSupervisor

TechnicianTechnicianAnalystAnalyst

Corp. GIS Steering Committee/GRTCorp. GIS Steering Committee/GRT

UpstreamUpstream

GIS data coordGIS data coord.1 FTE.1 FTE

ProductsProducts

GIS data coordGIS data coord.1 FTE.1 FTE

HSEHSE

GIS data coordGIS data coord.1 FTE.1 FTE

etc.etc.

GIS data coordGIS data coord.1 FTE.1 FTE

AnalystAnalyst TechnicianTechnician

Corporate DivisionsCorporate Divisions

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Enterprise GIS CommentEnterprise GIS Comment

“A GIS/Web combination is the best opportunity to create an enterprise management system that presents technical, financial, HR, and media information in a single interface for complex problem resolution and decision-making.

The GIS spatial presentation and analyses capabilities are well suited for organizing complex information in a manner that transcends language barriers.

As such, it is an ideal enterprise management system for global As such, it is an ideal enterprise management system for global companies operating in multiple cultures.”companies operating in multiple cultures.”

Mark Koelmel - Chief Operating Officer Chevron SASOL Ltd.Mark Koelmel - Chief Operating Officer Chevron SASOL Ltd.

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20012001

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19991999

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Issues and challengesIssues and challenges

• Data managementData management– Data ownership and responsibility Data ownership and responsibility

– Metadata standards Metadata standards

– Replication between GIS servers and laptopsReplication between GIS servers and laptops

– Backup and tuning of very large GIS databasesBackup and tuning of very large GIS databases

• General: General: GIS concepts still not well understoodGIS concepts still not well understood

– coordinate systemscoordinate systems

– location accuracylocation accuracy

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Future expectationsFuture expectations

• Improved “conflation” toolsImproved “conflation” tools• 3-D GIS3-D GIS

– don’t stop at ground leveldon’t stop at ground level– stratigraphic cross sectionsstratigraphic cross sections– reservoir visualizationreservoir visualization

• GIS technology is still too GIS technology is still too complicated...complicated...

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• The petroleum industry already realizes tangible benefits using The petroleum industry already realizes tangible benefits using geographic data and GIS technology to make better operational geographic data and GIS technology to make better operational decisionsdecisions• New capability in New capability in ArcGIS 8.3ArcGIS 8.3 significantly expands its value and significantly expands its value and relevance:relevance:

• GeodatabaseGeodatabase - everything appears in the same place - everything appears in the same place• comprehensive metadatacomprehensive metadata• coordinate transformation “on the fly”coordinate transformation “on the fly”• imageryimagery• very high performancevery high performance

• Linear ReferencingLinear Referencing (esp. for pipelines and seismic) (esp. for pipelines and seismic)• Survey AnalystSurvey Analyst - finally addressing - finally addressing conflationconflation• ArcIMSArcIMS (Internet Map Server) for web-based access (Internet Map Server) for web-based access• ArcReaderArcReader for easy distribution of GIS data and maps for easy distribution of GIS data and maps

• For the petroleum industry, GIS technology is now mature enough to For the petroleum industry, GIS technology is now mature enough to warrent world-wide Corporate Level commitment, to insure its proven warrent world-wide Corporate Level commitment, to insure its proven abilityability to assist in capital stewardshipto assist in capital stewardship is employed to maximum is employed to maximum advantage throughout the entire enterprise.advantage throughout the entire enterprise.

SummarySummary

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The Ultimate GoalThe Ultimate Goal

““Geography brings us together”Geography brings us together”

FinancialFinancialHardcopyHardcopy

LeasesLeases WellsWells SeismicSeismic FacilitiesFacilities

Produc- tionProduc- tion Etc.Etc.

Single database imageSingle database image

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• ~450 companies/organizations including Anadarko, BP, Anadarko, BP, ChevronTexaco, ConocoPhillips, ExxonMobil, Landmark ChevronTexaco, ConocoPhillips, ExxonMobil, Landmark Graphics, Marathon, Saudi Aramco, Schlumberger, Shell, Graphics, Marathon, Saudi Aramco, Schlumberger, Shell, Unocal, USGSUnocal, USGS

• Geodatabase - everything appears in the same place– comprehensive metadata– coordinate transformation “on the fly”– imagery– very high performance

• ArcIMSArcIMS - GIS access from any web browser

• Overlapping/disjoint polygons (regionsregions)

• Overpost resolution (MaplexMaplex)

• Linear Referencing (esp. for pipelines and seismic)

ESRI Petroleum User Group (PUG)ESRI Petroleum User Group (PUG)