#18 Digital Energy Journal - April 2009

8/9/2019 #18 Digital Energy Journal - April 2009

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April / May 2009 Issue 18

Production:

Implementing digitalenergy - lessons fromUS Air Force

The company thatmonitors 20,000 wells

Oil and gas industry liketeenagers with datamanagement

Subsurface:

Using dynamic dampeners to drill 50 per cent faster

Secrets of networked drill pipe Associate Member


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Contents

Improvements with broadband networked drill stringNetworked drill pipe transmits data from downhole MWD/LWD tools at 57,000 - bps far more

than the 6 bits per second commonly available using mud pulse. We asked National Oilwell

Varco how it works.

Communicating from downhole with a chirpCalgary company XACT Downhole Telemetry Inc. has developed a way of transmit 20 bits per

second (bps) uncompressed data from downhole to surface that is independent of the drilling

fluid and formation properties.

Geotrace introduces ray-traced anisotropic PSTMSeismic data processing and data management company Geotrace has announced its new

KirchMig tool for anisotropic ray traced prestack time imaging

Drilling technology - evolution or revolutionThe second plenary session of the IADC conference had the theme technology evolution or

revolution, talking about how the drilling industry develops new technology, and whether it

is innovative enough to develop new technologies and methods needed to help produce the

oil which the world needs

50 per cent faster drilling with APS active damperAPS Technology has developed a system to keep your drillbits in constant contact with the

formation by reducing bit bounce and stick slip which could help you drill 50 per cent faster,

and make your drill bits last 25-30 per cent longer

SPT Group launches new version of DrillbenchNorwegian software and simulation company SPT Group has launched a new version of

Drillbench, its software for simulating and modeling drilling operations

7

April / May 2009 Issue 18

April - May 2009 - digital energyjournal

Digital Energy Journal is a magazine for oil and

gas company IT professionals, geoscientists, en-

gineers, procurement managers, commercialmanagers and regulators, to help you keep up

to date with developments with digital technol-

ogy in the oil and gas industry.

Each issue of Digital Energy Journal print maga-

zine is mailed to 2,000 oil and gas executives,

with a further 500-1000 copies distributed at

trade shows, as well as being downloaded ap-

prox 2,000 times as pdf.

Subscriptions:Apply for your free print or elec-

tronic subscription to Digital Energy Journal on

our website www.d-e-j.com

Printed by Printo, spol. s r.o., 708 00 Ostrava-Poruba,

Czech Republic. www.printo.cz

Digital Energy Journal213 Marsh Wall, London, E14 9FJ, UK

www.digitalenergyjournal.com

Tel +44 (0)207 510 4935

Fax +44 (0)207 510 2344

EditorKarl Jeffery

[email protected]

Technical editorKeith [email protected]

SubscriptionsKarl Jeffery

[email protected]

Advertising and sponsorshipAlec EganTel +44 (0)203 051 [email protected]

Lessons from the US Air ForceThe oil and gas industry could learn a few lessons from the US Air Force in working out the

best way to implement and integrate new technology, says Houston oil and gas consultantDutch Holland of Holland & Davis

The company that monitors 20,000 gas wellsOklahoma company Universal Well Site Solutions has implemented its remote monitoring and

control system at 20,000 coal bed methane wells including technology to switch your pump

and on off remotely

Sword developments with electronic documentationEuropean business software and applications company Sword Group is aiming to take oil and

gas engineering document management to a new level where documentation systems can

really be used to help maintain safety and efficiency

Oil and gas industry teenagers with data managementThe oil and gas industry is like teenagers with data management getting there slowly, but

still needing some prodding, cajoling and forcing to get them to do it properly, delegates to

SMIs E&P Information and Data Management conference in London on Feb 10-11 heard

Using live 3D drawings instead of technical documentationSilicon Valley company Right Hemisphere has a new vision for technical manuals of the future

replacing them with live 3D images of the equipment

22

Oil and gas production

17

3

1

Front cover: IntelliServ's networked drill pipe

can carry data at 57,000 bits per secondfrom measurement tools in the bottomholeassembly and for the first time all along thedrillstring. In the photo - the electronics inthe link subs get checked before beingassembled into the pipe.

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23

LeaderPlanning this Septembers Offshore Europe conferenceWe interviewed Thomas Thune Andersen, this years chairman of Aberdeens Offshore Europe

exhibition and CEO of Maersk Oil, about plans for this years event on September 8-11

Western Gecos land seismic systemWesternGeco has launches UniQ; a new integrated point-receiver land seismic system.

Pronounced Unique, the system can record up to 150,000 live channels at a two millisecond

sample interval

Norway broadening its data reporting requirementsThe Norwegian Petroleum Directorate (NPD) is considering broadening its reporting

requirements, forcing companies to supply both their pre-stack data as well as all relevant

processed post-stack, and implementing mechanisms to ensure that data from relinquished

areas is collected and efficiently managed

Exploration and drilling

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4

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The 5th INTERNATIONAL CONFERENCE ON INTEGRATED OPERATIONS IN

THE PETROLEUM INDUSTRY, TRONDHEIM, NORWAY 2930 SEPTEMBER 2009

Established by the Research Council of Norway

Kyoto University

Partners in the Center for Integrated Operations in the Petroleum Industry:

Cooperating academic partners:

eFieldsSmart Fields

Digital Oil FieldsFields for the Future

International meeting place for business and science

IO 09 Science and practice is the international meeting place that will bring you to the network and give you trends and opportunities

for research and business in integrated operations. You will meet the players from oil companies, suppliers, research laboratories and

price situation in order to improve productivity and save costs.

Where Science and Practice meet

This conference is about the methods and tools for integrated operations, today and in the future. IO09 is the place where science and

practice meet. It will present the experience from some of the most advanced oil companies, system suppliers and research institutions

meeting place for generating new impulses in the further development of integrated operations practice. See: www.ioconf.no

Sessions

IO 09 will highlight aspects of the technologies and work processes for better productivity and safety.

2. Smarter oil and gas world experiences and solutions

3. Pushing the boundary of integrated modeling

4. New work processes and collaboration environments

7. IO solutions for improved safety and environment

Sponsoring organization:

innovation and education on integrated operations. www.ntnu.no/iocenter


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Leader

April - May 2009 - digital energyjournal 3

The North Sea has always been a key melt-

ing pot, says Thomas Thune Andersen,

chairman of Offshore Europe, also CEO of

Maersk Oil and a member of the executive

board for AP Moller-Maersk, the worlds

largest container shipping line.

A lot of industry has been developed

and driven there. Everything around health,

safety and environment (HSE). A lot of that

has been exported.

We have a lot of companies who havedeveloped from there. They have a long term

future. They are doing things in the Middle

East and so on.

So it seems reasonable to expect that

there will be plenty of interest in this years

Offshore Europe conference and exhibition,

which is (alongside Norways ONS, held on

alternate years) the largest event for North

Sea oil and gas.

Fundamentally it is my hope that any-

one who has joined Offshore Europe leaves

it inspired, with more enthusiasm to go backto their job, he says.

I've been to a number of Offshore Eu-

rope sessions. It seems like a place where

things are happening and a vehicle for new

ideas. I thought it was quite exciting to be a

chairman.

The 2007 event attracted 40,000 visi-

tors each day, with 1,455 exhibitors, and ex-

hibition space this year is already sold out.

There is a lot of confidence in the success

despite the economic downturn.

Its our obligation now to make sure

exhibitors get the value out of that, he says.

We hope some people will make a bit of

business.

The main thing that we would hope to

achieve from this conference when it is over,

will be to have addressed young people ei-

ther joining the industry or who have an in-

terest in the industry who can come and

get inspired and learn about what the oppor-

tunities are for them.

Offshore Europe attracts people of all

different aspects, he says. Its a forum

where people can talk. There's few placeswhere people in the industry get together. We

want an environment where its easy to net-

work.

It is important that people aim to make

contributions to the event as well as look for

what they can get out of it. The quality of

what comes out is as good as what comes

in, he says.

The theme this year is energy at a

crossroads, looking in particular at technol-

ogy, climate, industry operational models

and people.

The themes were decided on 12 months

ago. The world has turned upside down in

some ways since we did it, he says. But

the topics are more relevant.

Technology and innovationNew technology will be a key area for Off-

shore Europe. We want to share the latest

technology, trendsetting stuff, he says.

We are getting more input to the tech-

nical papers - it is evidence that the industry

is very much alive, he says. Its important

there are hardcore technical papers.

Mr Andersen defines two different

types of innovation traditional innovation,

such as where a large company developsnew ideas, and open innovation, when new

ideas are developed by diverse groups of

people.

For open innovation to succeed, com-

panies need to be open to the idea of inte-

grating with other companies, and entering

partnerships, he says.

Mr Andersen strongly believes that

there is a continued need for integration and

partnerships in the oil and gas industry, par-

ticularly to get new technologies being de-

veloped and used.

You need a good transparency of

where the technology is, and less focussed

about who brings it to market, so we allow

some of these ideas to come faster to the

forefront, he says. The need for being open

and sharing is more important.

Mr Andersens views about integration

have been influenced, to some degree, by his

Danish background. Denmark is fairly

small - in certain areas we are world class

but we can't be experts in all things, he says.

When we have been doing things in

Denmark - it has been done very much withpartnering, he says. It shows a need for in-

tegration.

ClimateThe event, on Sept 8-11 2009, is just a few

months before the United Nations Copen-

hagen Climate summit on December 6-18

2009, where there are high expectations that

the world might agree on new targets for

greenhouse gas emissions.

Connie Hedegaard, Danish Minister for

Climate and Energy, and host of the Decem-

ber United Nations summit, will address Off-

shore Europe.

The outcome of the Copenhagen sum-

mit could affect the oil and gas industry in

many ways such as by helping encourage

carbon capture and storage, encouraging

lower energy use in oil and gas extraction,

and reducing overall oil and gas demand.

For me, climate change is a pretty

wide subject, he says. If there is to be a

low carbon future how does that impact

us? What does it mean for the oil industry to

make sure we reach the goals?

Then its an issue of - how can we ex-

tract resources with the lowest energy foot-

print? What is the best way of doing thesethings?

We are preparing our role in industry

to make sure we can be socially responsible

companies, and working out what the right

targets are.

"Fundamentally it is my hope that anyonewho has joined Offshore Europe leaves itinspired" - Thomas Thune Andersen,chairman of Offshore Europe, also CEO of

Maersk Oil

We interviewed Thomas Thune Andersen, this years chairman of Aberdeens Offshore Europe exhibition

and CEO of Maersk Oil, about plans for this years event on September 8-11.

Planning this Septembers OffshoreEurope conference


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Leader

digital energyjournal - April - May 2009

to support the extreme channel capacities

and associated data volumes and quality con-

trol requirements, a new architecture has

been developed. Everything is redesigned,from the GAC sensor and the ground elec-

tronics to the recording truck and camp data

processing trailers, says Mr Papworth.

The high channel count point-receiver

technology is combined with a continuous

Western Gecos land seismic systemWesternGeco has launched UniQ, a new integrated point-receiver land seismic system. The system canrecord up to 150,000 live channels at a two millisecond sample interval.

One of the biggest components is car-

bon capture and storage, he says. It is get-

ting a lot of support. There's a huge focus on

it right now - a lot of research and develop-

ment. I think we will see great break-

throughs.

There's different players involved -

power stations [to separate out the carbon

dioxide], engineering companies [to trans-

port it] and oil companies [to inject it in un-

derground reservoirs].

Mr Andersen is particularly interested

in the idea of using carbon dioxide to help

get more oil out of ground (enhanced oil re-

covery). I think its hugely important as a

general concept, he says.

Operating modelDiscussions will be held at Offshore Europe

about gradual changes in the operating mod-

els of the oil and gas industry.There are a number of unique things

happening around state control of resources,

access to resources, and what's happening

with the resources, he says. There's a need

to look at trends and the operating model.

If we were 3-5 years in the future and

look back, we'll see this as a time there were

some structural changes. It would be excit-

ing to have a discussion around that.

Well have a panel of people from the

different groups national oil companies, in-

ternational oil companies.

PeopleThe people issue is most important, he says.

How do we attract and motivate people and

in a way which is sustainable?

The most important thing is we show

the outside world that this is an industry with

a lot of future.

However, we can't turn a blind eye to

the fact that there's an economic crisis outthere, he says.

During the economic downturn, it is

important that companies ensure that their

core competencies are protected.

No-one feels they can do this without

a sophisticated and professional approach,

he says. Were getting into deeper water

and more harsh climate environment. There

will be quite a lot of companies who will see

their competitive advantage in being at the

forefront of technology.

In particular, the industry should be en-

couraging more children to study science

and engineering. Overall we're short of peo-

ple with a science and engineering back-

ground, he says. I think that's a whole

mindset around education.

The Offshore Europe event will work

together with the Oil and Gas Academy OPI-

TO (see www.opito.com), which will bring

in large numbers of school children to the

event on the final day. Also a large numberof students are expected to attend.

Geophysical services company WesternGe-co has launched a new land acquisition and

processing seismic system called UniQ. The

system combines high channel count point-

receiver technology with support for ad-

vanced simultaneous source techniques.

Field tested in the Arctic and the desert,

UniQ can address land seismic challenges in

a multitude of environments from the hottest

deserts to freezing conditions.

The system is designed to extend the

capacity, flexibility, reliability, efficiency

and quality of land seismic data acquisition,

particularly in areas of complex geology and

high-noise environments, says UniQ land

marketing manager, Stuart Papworth. UniQ

can be used for fast-moving, fit for purpose

exploration surveys and also wide-azimuth,

broad-bandwidth appraisal and development

surveys, he adds.

A high channel countUniQ builds upon the existing high fidelity

provided by the broad bandwidth Geophone

Accelerometer (GAC) sensor and the West-

ernGeco Q-Land point-receiver acquisitionand processing system. Q-Land, launched in

2002, is acknowledged for its capabilities of

acquiring up to 30,000 live channels. UniQ

however, takes Q-Land successes further,

boasting support for up to 150,000 live chan-

nels at a 2 millisecond sample interval.According to Mr Papworth, The abili-

ty to acquire and process high-channel-count

point-receiver surveys has brought about a

step change in the quality of onshore seis-

mic imaging.

Mr Papworth explains why a high

channel count is important, In current land

projects, source points are often repeated

twice or more in order to acquire well-sam-

pled full-azimuth (FAZ) data. This is ineffi-

cient and expensive: twice the shot points

means it takes twice as long to complete the

survey with double the costs. So, how do you

reduce the number of shots?

The great thing about seismic is that

geophysically, sources and receivers are in-

terchangeable you can compensate for hav-

ing few receivers by having more shots, and

vice versa; you can reduce the number of

shot-points by increasing the number of live

receivers. This is where the extreme channel

counts supported by UniQ come in. UniQ

enables us to field the right number of point-

receivers to do any job optimally, including

efficient full-offset, FAZ land surveys - theholy grail of seismic.

Precision ImagingUniQ, however, is not simply a scaled-up

version of existing land systems. In order

The UniQ GAC is a motion sensor that deliverssignificantly reduced signal distortion andincreased bandwidth


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Leader

April - May 2009 - digital energyjournal 5

acquisition system that eliminates dead-time

between acquisition records, and supports si-

multaneous source techniques. Seismic data

are continually streamed from the sensors to

the central system so that there is no delay-

inducing system cycle time between shots.

System timing is GPS based, increas-

ing accuracy, and the GPS time-stamps are

used to separate the data into shot-records

either in the recording truck or in camp. The

field planning software, source and record-

ing control systems and camp data-process-

ing facilities are all designed to work in an

integrated manner to enable efficient equip-

ment layout and optimized data handling

while ultimately reducing the time from shot

to processed deliverable.

Receiver lines are formed by connect-

ing sensor strings back-to-back to create

long segments that are powered at both ends.

Each string does not require a take-out, andthere are no heavy lines cables to deploy and

retrieve.

Cut a sensor string anywhere, and data

and power continue to flow from both sides,

keeping the sensors up and running until the

break can be repaired. A network of light-

weight fiber-optic cables replaces the tradi-

tional single backbone, and automatically

routes data via an alternate path in case of a

cable break.

The UniQ sensors are also plug-and-

play, running their own self-tests before be-ing ready for acquisition seconds after con-

nection. Sensor data are completely self-de-

scribing, sending coordinate, test, and envi-

ronmental data back to the recorder for in-

corporation into the seismic data headers.

This reduces the risk of errors in data

processing and speeds up turn-around-time,

says Mr Papworth. Clean data is essential

to producing high quality imaging results atany stage of oilfield exploration and devel-

opment.

UniQ is also fully compatible with all

the high productivity vibrator techniques that

are becoming standard.

Desert Explorer vibrators probe shifting dunes of indeterminate velocity and thickness to imagethe rock formations beneath

For more information about UniQ, please

visit www.westerngeco.com/UniQ

or email [email protected]

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bi-weekly e-mail news service.

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Leader


Norway broadening its data reportingrequirements

The Norwegian Petroleum Directorate (NPD) is considering broadening its reporting requirements,forcing companies to supply both their pre-stack data as well as all relevant processed post-stack, andimplementing mechanisms to ensure that data from relinquished areas is collected and efficientlymanaged, says Eric Otto Toogood, project manager of DISKOS, the data repository operated by theNorwegian Petroleum Directorate in collaboration with the Norwegian oil industry.

NPD is keen to include pre-stack data be-

cause many companies are asking for it. A

lot of smaller companies coming to Norway

would like to go back to field data using

modern reprocessing techniques, he said.

DISKOS is also expanding its efforts to

track down non-reported data where com-panies have data they are supposed to sub-

mit, but they dont.

It is also keen to prevent companies

from supplying data to the NPD in propri-

etary formats, because it does not feel so

confident it will always be able to read the

data when it needs to, decades into the fu-

ture. We have some proprietary formats,

that we are keen to replace with open stan-

dards, but this can often be a technical chal-

lenge he said. We really want to get away

from there.DISKOS wants to be able to make data

from relinquished acreage more widely

available. In other words, if you dont want

to drill in a certain area, there is an obliga-

tion to relinquish the acreage but the chal-

lenge remains in giving other companies ac-

cess to all the available data i.e. maybe to

have access to most, or all of your data.

There might be tough fighting when

we change reporting requirements, he ad-

mitted.

NPD is keen to make it easier for peo-

ple to use and access the data. We want

make the data available to non expert users,

he said and is looking forward to the imple-

mentation of a more sophisticated, user

friendly front-end in the PetroBank software

currently being used by Diskos.

The DISKOS service recently changed

its service provider for managing the opera-

tions. The previous contract was awarded to

Schlumberger for 2004 to 2008, and now to

Landmark for 2009 to 2014.

The DISKOS initiative began original-

ly as the Geobank project in the early 1990sand began normal operations in 1995 run by

the company PetroData as a repository for

post-stack seismic data, with 5 companies

involved; now there are 52 members and da-

ta coverage has expanded to well and month-

data management point of view is a complex

process, particularly when moving it from

one storage media to another one, especially

if older media look like they will become ob-

solete.

You have to reformat data its an ex-

pensive business, he said. The main issueis the ability to read media. We need to keep

data for at least 10 years and hopefully a lot

longer. You need durable systems that can

withstand change.

Putting data into a managed solution

such as Diskos solves all of these problems

as the data sets are continually being re-

freshed onto new media through an agree-

ment with the service provider. The current

approach is to have a mix of technologies

where both tape and disc based solutions

work in concert, giving the best of bothworlds.

The database has about 120 terabytes

in it, with 16 people employed to manage it.

The data is passed through quality control

checks as it is entered into the database. It is

normally in SEG-Y format for seismic data

and a number of standard formats for well

and production data, he said.

In the past the NPD had physical data

stored on paper, sepia, film, microfilm and

tape, which is the typical situation facing

many companies worldwide today. One key

task is often in digitising paper well logs. It

is time consuming but enables us to do more

with the data, he said.

We think weve set up a high quality

database. Weve had a lot of members, I

think theyre getting value for money, he

said.

The DISKOS members typically down-

load around 3.5 terabytes of data per month

out of the database, he said.

ly production data.

Any oil company can join DISKOS;

Norwegian Universities are allowed to ac-

cess non-confidential data for academic and

research purposes. There are opportunities

for companies other than oil companies to

access public data, but without online ac-cess. Giving non-oil companies online ac-

cess to the database is a priority for Diskos

in 2009.

Managing the dataOne of the biggest challenges for DISKOS

is managing the enormous amount of data.

The rate of data collection is increasing

all the time. 2007, 2008, and probably 2009

are record years for acquiring seismic data

in Norway, he said.

The Norwegian government keeps dataabout all the seismic surveys which have

ever been carried out and all of the explo-

ration wells, so that it always has the best in-

formation possible about what has been

found out so far about its oilfields and the

resource potential of the Norwegian conti-

nental shelf in general.

We need user friendly systems and to

be able to find data over the long term and

we want to reduce the cost of moving data

around.

One of the biggest challenges is keep-

ing DISKOS as complete as possible. There

is no easy way of knowing if DISKOS has

got all of the available data in its system,

even though there are very specific regula-

tions to ensure that all seismic, well and pro-

duction data data gathered on the Norwegian

continental shelf are reported to the authori-

ties.

A further challenge is making sure that

all of the data is high quality, and not dupli-

cated, he said.

There is a disaster recovery site over

10km from the main operation database,where a back-up copy of all the data is

stored. If there is any problem with the main

database the back-up copy can be opera-

tional (for read only purposes) in 5 days.

Looking after data from a traditional

This article is based on a speech given by

Mr Toogood at the SMI E&P Information

and Data Management conference in Lon-

don on Feb 10-11 2009


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Improvements with broadbandnetworked drill stringNetworked drill pipe transmits data from downhole MWD/LWD tools at 57,000 - bps far more than the

6 bits per second commonly available using mud pulse. We asked National Oilwell Varco how it works.

National Oilwell Varco reports that its Intel-

liServ Broadband Network service delivered

high-definition subsurface information in

more than 60 wells since its commercializa-

tion early 2006, drilling over 610,000 feet in

four continents in onshore and offshore envi-

ronments, in vertical, deviated and horizon-

tal wells.

The abilities with a broadband network

and data acquisition all along the drill string

is enormously helpful in making operationaldecisions in real time, and placing the well-

bore in the right place while continuously

monitoring what is happening downhole.

The broadband network carries data at

speeds of 57,000 bits per second far more

than 1 to 20 bits per second typically avail-

able with other technologies for communica-

tions from the drill bit, such as mud pulse,

electromagnetic or acoustics.

Further, the broadband network has a

constant signal strength with increasing well

depth, while the data-rate typically degradesfrom 20 bps at shallow depths to as little as

1bps at extreme depths with mudpulse.

Many people have tried to develop

wired drill pipe over the years, but they could

not find a way of getting around the problem

on how to establish connections between

lengths of drill pipe allowing data flow across

that would not be affected by dirt or mud on

the connections. For example, a typical met-

al to metal connection (such as the cables that

plug into your computer) would not work.

GrantPrideco developed a double shoul-

dered premium connection (subsequently ac-

quired by National Oilwell Varco in Decem-

ber 2007) that helped solve the problem: In-

stead of having a live metal to metal data con-

nection at the pipe joints, an inductive coil

was placed on the secondary shoulder.

The inductive coil generates a magnetic

field from the current supplied on a coaxial

cable, which runs through each length of drill

pipe, connecting with the inductive coil on

the other end of it.

The data therefore is communicated

through the magnetic field at the connectionand not from metal to metal contact, so coils

covered in dirt do not affect data communi-

cation.

Still, it is important to keep the coils as

close together as possible: The further they

properly cleaned. Pack-offs - a build-up ofcutting beds in the wellbore that resulted

from insufficient hole cleaning can be pin-

pointed, as well as the location of a forma-

tion fluid influx as they happen.

All major MWD/LWD service

providers can connect to the bottom end of

our network with successful deployments in

four continents, he says. You can also to

send instructions to, and diagnose problems

with, downhole tools without having to pull

the tools out of the hole.

We can actuate tools, diagnose in case

of problems, we update their settings. We

have seen cases where we reprogrammed

tools downhole, while without the connectiv-

ity of the broadband network this would have

required to trip the tools to surface to perform

this task.

When the tools are used on a broad-

band network, you have the bidirectional

communication with the ability to fine-tune

the settings of the downhole measurement

tools and have the ability to diagnose tool

problems while the tools are still downhole.

Mr Veeningen says that the technologycould also be used in completions and well

tests.

The next generation downhole tools

could be actuated with a click of a mouse, as

opposed to running slick line, he says.

are apart, the more signal at-

tenuation. Electronic re-

peaters, running on batteries

are installed every 450m of

drill pipe to boost the sig-

nal.

Although the concept

of a broadband network

looks very simple it took a

long time to figure out how

to do it, says Monte John-son, R&D Manager software

and electronics, with Intel-

liServ, the division of NOV

which developed the net-

work.

The broadband net-

work provides full range of

benefits. For example, 10%

time savings has been real-

ized simply through the abil-

ity to quickly downlink in-

structions to the rotary steerable tools insteadof the normal communications using the mud

pumps for downlink communications, he

says.

This result in better borehole manage-

ment as the rotary steerable commands can

be sent more frequently.

All service companies connectDaan Veeningen, business development man-

ager, Intelliserv, emphasizes that NOV pro-

vides the oil industry a network, not just a da-

ta communication link from the bottom of the

drill pipe to surface.

Sensors placed at network nodes all

along the drill string at discrete intervals take

measurements of the annular pressure and

temperature. This high-definition informa-

tion in real time helps ensuring the hole is

Intelliserv's wired drill pipe - an inductive coil onthe end of each pipe section communicatesdata to the next length of pipe, withoutneeding a direct metal to metal connection

IntelliServ's networked drill pipe can carry data at 57,000 bitsper second from measurement tools in the bottomholeassembly and for the first time all along the drillstring. In the

photo - the electronics in the link subs get checked before beingassembled into the pipe


10/32


digital energy journal - April - May 2009

Communicating from downhole with a chirpCalgary company XACT Downhole Teleme-

try Inc. has developed a way of transmit 20

bits per second (bps) uncompressed data from

downhole to surface that is independent of the

drilling fluid and formation properties.

This impressive data rate is a big im-

provement on the typical 0.5 to 3 bps for mud

Pulse and the 3 to 6 bps for EM telemetries.

XACT predicts it will increase this rate to 40

bps this year.

To date XACT has drilled more than 125

wells using acoustic technology, including a

vertical well of more than 3,000m measured

depth.

Many companies have tried using sound

energy to carry drilling data from the bottom

hole assembly (BHA) in a live drilling envi-ronment, but have not been successful.

The trick, says Dr. Paul Camwell,

XACTs CTO, is to understand the acoustic

channel i.e. work within the constraints of

how the acoustic energy moves up the drill

pipe, and the optimum way it should be de-

coded at the surface.

The original work was carried out at San-

dia National Labs (New Mexico) under the di-

rection of Dr. Doug Drumheller in the 80s and

90s, and today XACT leads the industry in

carrying out the R&D necessary to protect andcommercialize the technology for drilling ap-

plications.

The acoustic wave utilized by XACT

travels through the drill string independently

provide complementary technologies. For in-

stance, XACTs through-bore tool aides thedeployment of the ThruBitTM suite of Surel-

ogTM logging tools, and XACTs high data

rate and third-party interface enables a lower

cost drilling and logging solution for clients.

XACT clamps an Electronic Acoustic Receiver(EAR) around the kelly saver sub to receiveacoustic data sent from near the drill bit tosurface via the drill pipe walls, and hence byradio to the driller.

of drilling fluid and formation properties, de-

pending only on the presence of metal drill

pipe. Thus underbalanced drilling is a natural

application for their tool.

The telemetry signal is carried in the drill

pipe and comprises data bits that are encoded

via a series of chirps - a sweep of frequencies

in the 650Hz range. The energy source that

generates the chirps is a piezoelectric stack

that transforms high voltage electrical waves

into mechanical waves, these being introduced

into the surrounding steel of the acoustic

telemetry tool and hence into the drill string

where they propagate at speeds of approxi-

mately 5,000m/sec.

XACT is also presently commercializing

distributed sensor nodes that can be placed atappropriate distances along the drill string.

These, like the primary tool in the BHA, are

able to measure drilling parameters such as

pressure, temperature, shock and vibration.

The distributed nodes can also detect and de-

code the acoustic signals received from below

and relay them on to the surface at higher pow-

er, thus providing greatly extended telemetry

range.

The major investor in XACT is Shell

Technology Ventures Fund 1 BV. The fund is

managed by the independently-owned compa-ny Kenda Capital BV. The Fund specializes in

funding companies that provide step-change

technologies primarily in the upstream oil and

gas sector, particularly when such companies

Schlumberger new drilling telemetrySchlumberger has launched the Orion II*

telemetry platform to increase the rate of data

transmission to surface from their downhole

logging-while-drilling (LWD) and measure-

ment-while-drilling (MWD) services. It also

cancels drilling and rig noise that adversely af-

fects data quality.

Downhole, new compression algorithms

increase the quantity of data transmitted at a

given physical telemetry rate, and new signal

modulation methods push mud pulse signals

further.

At the surface, new signal detection and

noise cancellation methods demodulate ex-

tremely weak signals at high physical teleme-

try rates to enhance data quality.In fact, the system can send 12 bits per

second of actual data through the mud - called

physical telemetry.

The system also possesses new data com-

pression technologies that can compress a data

stream as high as 120 bps -

known as effective telemetry.

When a service runs the Orion

II telemetry platform 120 bps

are effective on a 9 bps physical

telemetry rate.

Log curves can be com-

pressed instead of compressing

individual pieces of data. This

enables an excellent compres-

sion ratio with no deviation from

recorded data, says Gilles Vie,

Schlumberger product champi-

on for Orion II.

The system was used on

the longest well ever drilled, at40,320 ft well for Maersk Oil Qatar.

During the project, 3 bps were sent while

drilling at depths up to 35,000 feet where the

MWD was downlinked to 1.5 bps telemetry,

which was used to total depth. During the proj-

ect, Maersk Oil Qatar also ran the Schlumberg-

er PowerDrive* rotary steerable system, geo-

VISION* imaging-while-drilling service and

adnVISION* azimuthal density neutron tool.

*Mark of Schlumberger


11/32


12/320



Drilling technology - evolution orrevolution

The second plenary session of the IADC (International Association of Drilling Contractors) conference in

Amsterdam, March 17-19, had the theme technology evolution or revolution, talking about how thedrilling industry develops new technology, and whether it is innovative enough to develop newtechnologies and methods needed to help produce the oil which the world needs.

Lance Cook, global wells technology manag-

er with Shell, and chair of the session, stressed

that we'll need all the innovation and innova-

tive people we can get to get the hydrocarbons

the global economy is projected to need in to

the pipelines.

I feel that this industry is quite innova-

tive, he said. If our industry wasnt as inno-

vative and capable of delivering, the prognos-tications that peak oil would occur in the

1970s or 1980s would have been correct.

I believe the unprecedented economic

growth of the last century was enabled by the

cheap energy this industry provided, he said.

In 2005, we took 60 days to drill a

13,500 foot well in a tight gas field. Now its

a little over 3 weeks, with technologies like

rotary steerables and underbalanced drilling.

Meanwhile the wells are producing 3-4

times more than in 2005, due to technology

improvements in areas like fracturing. So adrilling rig in 2009 can put 10 times as many

hydrocarbon molecules in the pipeline as it did

in 2005.

If the auto industry did as well as that,

they'd be making 400 mpg cars.

Mr Cook noted that in this economic en-

vironment, it can be easier to find manufac-

turing space to build new/prototype equip-

ment. In the recent high activity times get-

ting manufacturing space was nearly impossi-

ble, he said.

Mr Cook observed that many revolution-

ary steps are driven by a crisis. This industry

is brilliant when we get into a corner, he said.

One example is Shell's work to develop

expandable casing, which was pulled from the

lab to solve a tricky problem. We couldnt

reach our objectives even with a new genera-

tion drillship we had commissioned. If we did-nt deliver a new method for getting the wells

to their objectives,we would have had to ex-

plain how we spent $350m on this new gener-

ation drilling rig for nothing.

Bob Bloom, NOVBob Bloom, senior vice president of National

Oilwell Varco, emphasized that people operat-

ing modern drilling equipment have access to

a wide amount of information that wasnt im-

mediately available in the past, and with to-

days advanced computerized controlled sys-tems, we can combine human intelligence and

experience with the control software to pro-

vide safer, more efficient, process oriented

drilling operations.

Drilling companies have been focusing

on knowledge transfer utilizing advanced

computer based training systems combined

with detailed hands-on courses and on-the-job

training. Training new personnel has certain-

ly been the most critical industry issue over

the last several years and we've done a great

job in that, and we're continuing to," he said.

"I don't worry about the 'great crew

change' - I think we'll get through it very well,"

he said. "There will be a big reserve of

boomers who will get tired of the golf course

and will come back. I have 3 associates 74

years old who came back to the industry."

One of the greatest breakthroughs in

drilling technology occurred in 1981 when the

top drive was developed, he said. "It revolu-

tionized our drilling performance and was one

of the most important changes in rig machin-

ery in 100 years."

With a top drive, it became possible todrill down triples or quads (tie together three

or four lengths of drill pipe) and back ream

(drill backwards in the reverse direction) while

circulating drilling fluid.

Another important development was the

high pressure washpipe, which can operate at

pressures of up to 7,500 psi where as con-

ventional washpipe systems can fail in under

50 hours of operation at high pump pressures

and elevated rotating speeds, he said.

High pressure wash pipe "has enabled

top drives to run over 1000 hours in high tem-

perature, high pressure and high speed appli-

cations without changing the washpipe," he

said. "That can save millions of dollars every

year in rig maintenance and unproductive

downtime."

One technology which didn't make it was

submarine drilling rigs (drilling from sub-

marines). "A project started in 1958 but it was

never built - the technical challenges were too

big," he said.

However those efforts led to the estab-

lishment of a company called " National Ad-

vanced Drilling Machines". This company de-

signed a 3000 HP land rig which could be op-

erated by one person - everything was mecha-

nized with little need for human involvement

on the drill floor.

This rig was also not successful - it hada 16 per cent down time and was very diffi-

cult to move. It had one of the first computer

control systems, using vacuum tubes, which

were easily damaged and needed replacing

every time the rig was moved.

I don't worry about the great crew change -Bob Bloom, senior vice president of NationalOilwell Varco

This industry is brilliant when we get into acorner - Lance Cook, global wells technologymanager with Shell


13/3211



However, some of this mechanical tech-

nology ended up being incorporated in the

NOV top drive, he said.

NOV is developing a new modular

drilling concept called the SPRED Rig, which

can drill wells three times more quickly than

today's rigs, and do casing and concreting op-

erations simultaneously on different well cen-

ters.

Another exciting new technology is us-

ing hammer mill technology on offshore rigs,

which can thermally treat turnings allowing

them to be dumped safely overboard without

causing environmental damage. "This can

save millions of dollars annually from not hav-

ing to transport drilling wastes to shore for

cleaning and disposal," he said.

Moving into the future "we need the right

people in our companies they need to be in-

novative, not afraid to fail, and enjoy collabo-

rating with others" he said.Mr Bloom said that new ideas often

come from small groups of 1 or 2 people.

One example is the active heave draw-

works (the pipe hoisting mechanism on some

new offshore rigs). "It was conceived in the

1980s in a relatively slow time," he said.

"One man championed that idea for 4-5 years

and there were a lot of naysayers, but eventu-

ally the idea was accepted and proved to be a

revolutionary product for the industry."

Luis Cortes Xavier Bastos, PetrobrasLuis Cortes Xavier Bastos, general Managerof Well Construction Engineering, Petrobras,

said that technology has added a lot of com-

plexity to our construction process it added

to the risks, he said.

Drilling performance has not improved,

in how much power reaches the cutting edge.

Only a small fraction of power reaches the

drillbit most is wasted in friction.

Non productive time has been constant

at 20-30 per cent for the past 20 years.

Lost time accident rates are high com-

pared to other areas of the oil business, he

said.

An interesting trend for the future will be

niche intervention vessels drilling rigs for

specific types of drilling jobs. A rig is not a

swiss knife, you cant use it for everything,

he said.

Are there any outsiders preparing a rev-

olution eg in space, robotics, nanotech in-

dustry? he asked. I dont know but we have

to be aware of them.

Innovative developments are often driv-

en by necessity ie people invent new thingswhen they are forced to, said Mr Bastos.

Tim Juran, SeadrillTim Juran, executive vice president, Seadrill,

noted that although the basic rig format hasn't

changed in

30 years, the

specifica-

tions have

changed.

For ex-

ample, the

typical maxi-

mum depths

of water be-

ing drilled

through have

increased

from 1,500

feet in 1981

to 10,000

feet now;

whilst typical

well depths

have in-

creased from 15,000 feet in 1981 to 35,000feet now.

Hoisting capacity has increased from 500

tons in 1980 to 1250 tons now; drill rig power

has increased from 8,800 hp on 1981 to 56,000

hp now, and rotating power has increased from

35,000 lb ft (using a kelly drilling) to 105,000

lb feet (using a top drive).

In 1981, rigs were typically kept in posi-

tion using mooring lines, but now they usual-

ly use dynamic positioning, he said.

The number of data points has increased

from under 50 to over 10,000.Pro-active formal risk assessment sys-

tems have evolved.

Drilling is planned around the technical

limits of the equipment.

The crew complement on platforms has

increased from 80 beds to 200 beds - and

theyre all filled, he said.

Troubleshooting has changed from see

it / fix it to remote diagnostics, he said.

Crew are given formal training, not just

soak time (time on the platforms where they

are expected to absorb everything).

The current generation of rigs, he said,

can be described as 6th generation which he

described as having prominently dynamic po-

sitioning, ultra deep drilling capability, next

generation control systems.

They also have a turnkey shipyard deliv-

ery where the entire rig is put together with

a shipyard, and the shipyard contracts directly

with the drilling equipment manufacturer to

provide the drilling system.

There is plenty more to be desired, he

said.

We must compress the competency de-velopment cycles for our people that is ab-

solutely essential.

Mr Juran said he would like to see a stan-

dard operating environment developed for

drillers, where they are provided with only es-

Innovators often come whenthey are forced - HalvorKjrholt, chief researcher,drilling and wells,StatoilHydro


14/32

ger' a

drilling tool

which can be

used for ex-

ploration it

literally

drills down

by itself and

clogs the

hole behind

it.

It is im-

portant that

oil compa-

nies make

the effort to

support

small com-

panies,

rather than

only workwith large service companies, as many are

tempted to do. We make a lot of effort to sup-

port small companies, he said. Small com-

panies come up with good ideas but not a com-

plete product.

IADC advanced rig technologycommitteesThe International Association of Drilling Con-

tractors (IADC) has established an 'Advanced

Rig Technology Committee' to help imple-

ment new rig technologies, chaired by DavidReid, vice president, E&P technology & busi-

ness for National Oilwell Varco.

The Committee's mission is to improve

rig safety and efficiency with sound operating

procedures, good automation and standardised

automation. It will look at the control philoso-

phy, the communications protocols between

equipment, personnel competency, and find-

ing ways to implement a comprehensive au-

tomation of the complete drilling process, in-

cluding integrating surface and downhole

equipment, and completions systems.

It has subcommittees for oil and gas op-

erators , reliability (looking particularly on the

top drive), guidelines (application of technol-

ogy), control motions (looking at static and

non static motions in drilling control), soft-

ware interface group communications be-

tween manufacturers, and future technology

trying to understand future needs.

In particular, the subcommittee will be

encouraging drilling contractors to provide

more detailed reports of problems they are en-

countering with top drives, which can be

shared with equipment vendors. It will alsomaintain a database about which technology

is being used where.

Further information is on the IADC web-

site www.iadc.org click on the section at

the top 'committees'.

2



sential information.

Id like to see us improve integration of

the rig with third party services, he said.

I want to take remote diagnostics to the

next level make predictions before down-

time occurs.

We have to continue to figure out how

to prevent hurting people and get to the point

where were not hurting anybody, he said.

Halvor Kjrholt , StatoilHydroHalvor Kjrholt, chief researcher, drilling and

wells, StatoilHydro, said that Statoil currently

gets 60 per cent of production from subsea

wells (wells with a Christmas tree on the

seabed). The trend is to put more and more

advanced equipment on the seabed, he said.

Average drilling performance in terms of

metres per day has been fairly constant over

the last decade. There were some improve-

ments around the year 2000 but then it wentback again, he observed.

Non productive time for rigs has stayed

at a fairly constant 20-30 per cent between

1998 and 2008, he said.

Improving this will probably require

more automation, he said.

Drilling is almost 100 per cent manual-

ly controlled, he said. People make mis-

takes. We have very little room for mistakes

theres not much forgiving in an operation to-

day. People are slower than computers in re-

acting.Besides the official calculated non pro-

ductive time, there is also what Mr Kjrholt

terms the unofficial nonproductive time the

difference between what is achieved and the

technical limit of what the drilling rig can do.

For example, on average a pipe connec-

tion takes over 2 minutes but an automated

system could do it in half a minute. With a lot

of pipe connections this adds up to a large

amount of wasted rig time.

I propose a focus on automation and

control processes, he said.

It is less dependent on individual's skills

and interpretations. We can handle low mar-

gins. We can have fast detection and reaction,

and superb repeatability. You can get closer

to the technical limit.

In future, Mr Kjrholt hopes to see a bet-

ter understanding of hole stability and hole

cleaning. We can limit operations in the well

to what is necessary, he said.

Mr Kjrholt said there is something of a

conundrum with the way the oil price encour-

ages innovation. When the price is low you

cant afford working on new ideas when theprice is high you dont have the time, he said.

Innovators often come when they are

forced, he said.

One of the most exciting new technolo-

gies being supported by StatoilHydro is a 'bad-

David Reid, vice president, E&Ptechnology & business forNational Oilwell Varco,Chairing the IADC AdvancedRig Technology Committee


15/3213



50 per cent faster drilling with APSactive damperAPS Technology has developed a system to keep your drillbits in constant contact with the formation byreducing bit bounce and stick slip which could help you drill 50 per cent faster, and make your drill bitslast 25-30 per cent longer.

Connecticut company APS Technology Inc

has developed an Active Vibration Damper

(AVD) for drilling, which can enable rate

of penetration to be increased by 50 per cent,

and make each drillbit last 25 to 30 per cent

longer, whilst helping to protect MWD/LWD

electronics.

It has already been used to drill 8 wells

in Texas and Wyoming.The AVD uses a patented damping

valve section employing a proprietary fluid

containing micron sized magnetic particles,

which changes the tools damping character-

ictics when a magnetic field is applied.

This fluid technology, known as mag-

netorheological, was originally developed

over 100 years ago, and has been used as a

damper on Ferrari cars, but this is the first

time it has been used to stabilize drillbits.

Drill pipe is typically an inch or more

smaller in diameter than the drilled hole, sothere can be a lot of rattling about, also

known as whirl. Weight-on-bit (WOB) and

rotating speeds may vary from moment to

moment.

Stabilisers are commonly used to try to

stop the drillpipe from whirling, but some-

times the stabilizers and drill bit get stuck as

the drill pipe rotates and moves downwards,

and then periodically jerk, a phenomenon

known as stick/ slip. Another type of

harmful vibration is axial vibration or bit

bounce.

The force a drillbit makes against the

rock due to whirl, stick/slip and bit bounce

can exceed 50 times the acceleration due to

gravity (g), a force big enough to cause a lot

of damage to the drillstring components in-

cluding bits stabilizers and MWD instrumen-

tation..

The AVD is designed to detect and

adapt to the resulting vibrations within mil-

liseconds.

Normal dampening techniques (such as

springs) do not work as well for stabilizing

drillbits, because the level of vibrationdamping is constant and sometimes drillers

need a lighter or stronger damping coeffi-

cient to get the smoothest ride. Spring may

also oscillate at certain speeds.

The APS tool constantly measures the

forces on the drill bit, and how viscous the

dampening fluid around the drill bit needs to

be, to keep the drillstring properly damped.

A magnetic field of appropriate strength is

applied around the MR fluid which causes it

to change viscosity. The MR fluid changes

from a free flowing oil to a extremely vis-

cous grease (with viscosity of cold peanut

butter) in milliseconds. The viscosity of theMR fluid and therefore the damping charac-

teristics of the AVD tool can be continuous-

ly adjusted based on drilling conditions.

The magnetic field used to change vis-

cosity of the MR fluid is created by large

coils, which use up to 150 watts of direct

current electricity generated by a mud tur-

bine alternator -- also made by APS Tech-

nology -- within the AVD.

I like to refer to it as a damper with a

programmable viscosity oil, said Steve An-

dersen, vibration product line manager withAPS.

The company won funding from the US

Department of Energy to develop the idea,

and it also partnered with a drilling compa-

ny for a certain period of time (under re-

quirements for DoE funding that companies

must be in partnerships).

Dirk Bosman, regional manager for

Middle East and North Africa with APS, be-

lieves that the company has faced some ob-

stacles in AVDs take-up, because it relies on

the support of drilling companies who also

make a lot of money selling drillbits and

are not so keen on any technology which

makes the drillbits last longer.

So it is important that oil and gas oper-

ators are well aware of the technology, so

they can demand that their drilling contrac-

tors use it and share in the cost savings de-

livered by longer bit runs and improved

ROP resulting from use of the AVD

tool.

The company is setting

the price of the tool so it

will be cost effectivewhen used both off-

shore and on-

shore.

Many of

the staff of

APS were previously employees of a com-

pany called Teleco Oilfield Services, which

was acquired and became Baker Hughes IN-

TEQ in 1992. Teleco was the first company

to develop commercial measure while

drilling (MWD) tools in the late 1970s.

If the drill bit is steadier, it can drill muchfaster

Drilling with APS Technology - a dampenerchanges viscosity 10 times a second, to keepthe drillbit as steady as possible onthe rock.


16/324


The biggest strength of the software, says

Agnes Scott, senior account manager

Americas with SPT Group, is the ability to

model transient effects within any drilling

operation.

For example, the difference in mud

pressure while drill pipe is being pulled in

and out; the way mud expands as it goes

deeper underground and increases in temper-

ature; the way the well slowly returns to ge-

othermal conditions (the same as the rockaround it) if there is no drilling going on.

Most other drilling simulator packages

on the market only offer a steady state simu-

lator, she says.

By modelling transient aspects of the

drilling, the software can go a few per cent

further than most other drilling simulation

packages on the market, she says.

Drillbench is used primarily in narrow

margin (particularly difficult) drilling opera-

tions, such as high pressure/high tempera-

ture wells and deep water applications,where you have to manage the drilling mud

carefully, taking into consideration both tem-

perature and pressure effects.

The new version of the software has

improved layout, reporting functions, and

easier exporting of data.

The new version has a tool to model the

gelling effect of your drilling fluid the way

fluid will gradually thicken if drilling is

stopped, making it slightly harder to start

drilling again.

It makes a huge difference to opera-

tional parameters, says Ms Scott. Mud

companies give you standard gelling param-

eters everybody knows that but it has not

been possible to visualize it before.

The new software has tools to model

multlple fluids in one circulation eg when

during a cementing operation, the well is

filled with a spacer, cement, spacer and then

mud. You can model the whole process in

one go.

Using Drillbench

The software is designed to be used bothwhile a drilling operation is being planned,

and also while it is running.

During drilling operations, by compar-

ing the drilling data with what is expected,

you get a quick indication if something

might be going wrong, she says.

And when an operation is completed,

you can run another simulation, to see if can

see if you can get the actual results in your

simulator, to get a judgement of how accu-

rate you data is.

The software is often used after a

drilling operation when people say we saw

something strange, can you try to see what's

happening, she says.

The software can be used for trainingand preparation purposes, to get a better un-

derstanding of the wells operational limita-

tions and to be better prepared for unplanned

events.

The software has been under develop-

ment for 11 years this is the version 5.

TestimonialsBP Aberdeen uses Drillbench for well plan-

ning and follow up, and also crew training

on high pressure, high temperature wells in

the UK.Shell USA says that it used Drillbench

to simulate its underbalanced drilling proj-

ect, and managed to discover underbalanced

drilling features it couldnt have found using

steady state software.

Baker Hughes Inteq says it used Drill-bench when planning drilling for its Marlin

A-5 well, and found the program made ac-

curate predictions of the downhole tempera-

ture and density profiles, as confirmed by the

downhole measurements.

StatoilHydro says it used Drillbench

when drilling its first deepwater exploration

well in Angola. It needed to drill the well

deeper than originally planned, and it used

the software to work out how it could safely

stretch the well design and saved one casing

string.

Wild Well Control Inc (USA) says it us-

es Drillbench to assist clients with critical

well planning and resolution of problems, in

particular analysing kicks and emergency re-

sponse operations.

StatoilHydro Zagros Oil & Gas, Iran

says it used Drillbench to plan wells of over

5000 total vertical depth in a remote area of

the Iranian desert, to identify limitations, op-

timize the casing program and cut costs, us-

ing the software both in planning and execu-

tion.

ConocoPhillips Scandinavian divisionsays it used Drillbench for decision making

in two difficult high temperature, high pres-

sure wells, and the software made a big con-

tribution to the companys ability to reach its

planned targets.

SPT Group launches new version ofDrillbenchNorwegian software and simulation company SPT Group has launched a new version of Drillbench, its

software for simulating and modeling drilling operations.

Mud companies give you standard gellingparameters everybody knows that but ithas not been possible to visualize it before -

Agnes Scott, senior account manager Americas with SPT Group

Simulating and modelling drilling operationsusing DrillBench



17/32

SPE Offshore Europe is where theE&P community meets to find thesolutions required to keep up withan accelerating technology race,and understand the demands ofa changing industry committed toensuring security of supply in anincreasingly complex world.

Learning. Innovation. Debate. Solutions.

Register for free for the

conference and exhibition at

www.offshore-europe.co.uk


18/32



Germanischer Lloyd and Noble Dentonmerge to create largest oil and gas

engineering consultancy

The company will provide a broad range of

technical services and consulting, to help oil

and gas companies make sure that what they

are doing is safe.

Both companies already have many

joint clients in the oil and gas industry, in-

cluding ConocoPhillips, Shell, BP, BG,Chevron, Exxon, Total, ONGC, Saipem, Sta-

toilHydro, Transcocean.

Germanischer Lloyd clients include

Hess, Talisman, Wood Group, Saudi Aram-

co, Repsol, Gaz de France, Petronas, and

Noble Denton clients include Petrobras, Ak-

er, APL, Heerema Energy.

GL employs over 5,500 skilled engi-

neers. It was founded in 1867, and its 2008

revenues were Eur 544m.

Noble Denton employs around 900 em-

ployees. It was founded in 1904, and its 2008revenues were GBP 100m (Eur 108m).

Pekka Paasivaara, member of the Ex-

ecutive Board Germanischer Lloyd, says that

many oil majors are looking for an engineer-

ing technical consultancy with a global

reach, and GL is keen to be that company.

Oil companies are searching for a technical

services partner on a global scale, he says.

This is particularly true for national oil

companies, which often do not have the in-

depth technical expertise in-house which in-

ternational oil companies have.

The combined company has offices in

all oil and gas centres, including Houston,

Mumbai, Jakarta, Kuala Lumpur, Singapore,

Doha, Abu Dhabi, London and Aberdeen.

Most clients are asking for local presence,

says Mr Paasivaara.

Services include technical and opera-

tional assurance (agreeing that plans are

technically and operationally OK), inspec-

tion, safety and risk consulting, engineering

design, software, testing, helping maintain

reliability, casualty investigation, as well as

project management.The focus is on all areas of oil and gas

industry and energy including renewables

and power.

Technical assurance is providing com-

panies with a second opinion that what they

are about to do will be safe. For example, if

a company is transporting a $500m topside

from South Korea to Africa, you want more

than for one company to say trust us, it will

be alright, says John Wishart, group man-

aging director of Noble Denton,

Both companies have undertaken arange of acquisitions over the past few years.

Last year, GL bought Advantica Group,

the former consulting arm of upstream gas

company BG, among a range of other acqui-

sitions, and Material Consulting Services, a

downhole consulting business in Houston.

Over the past few years Noble Denton

has acquired Martech Unlimited, a company

specialising in tanker vetting services, Po-

seidon Maritime, a dynamic positioning con-

sulting company, among other acquisitions.

Noble Denton has deep expertise indeepwater oil and gas, including about dy-

namic positioning of platforms, complex

mooring systems. It has expertise in the full

range of offshore equipment, including drill-

ships, FPSOs, floating LNG, pipelines, plat-

forms OSV, subsea systems.

It has a strong presence in Norway,

where it is able to get involved in a lot of the

technical development for offshore equip-

ment.

Growth areasThe companies are

keen to provide more

services for the grow-

ing wind energy sector

both onshore and off-

shore. Germanischer

Lloyd already has a

large consulting busi-

ness in wind power it

is currently helping

Gaz de France install a

wind park in Mexico.

There is particu-lar growth in demand

for technical expertise

in the deepwater envi-

ronment, including in

West Africa, Brazil,

Gulf of Mexi-

co and

Venezuela,

says Mr

Wishart.

There's

emergingtechnology -

there's always

a greater need

for assurance

and integrity,

he says.

Carbon

capture and

storage is

seen as an in-

teresting busi-

ness area.It would

also like to

expand further globally including in Chi-

na, Russia and Vietnam, Kazakhstan, Brazil,

West Africa, India and Australia. It also

wants to build up the corporate knowledge.

Noble Denton is one of the few compa-

nies in the sector which is able to provide in-

dependent advice, says Mr Wishart. In our

case, we have no-one behind us pulling the

strings.

Two engineering technical assurance companies, Germanischer Lloyd and Noble Denton, have mergedoperations to form what is probably the worlds largest oil and gas technical services company, with 6,400employees in 80 countries.

Oil companies aresearching for a technicalservices partner on a globalscale - Pekka Paasivaara,member of the Executive

Board Germanischer Lloyd

Noble Denton is one of the world's largest offshore consultancycompanies


19/32


17

Lessons from the US Air ForceThe oil and gas industry could learn a few lessons from the US Air Force in working out the best way toimplement and integrate new technology, says Houston oil and gas consultant Dutch Holland of Holland& Davis.

New technologies can be powerful and mind-

bending, especially in digital energy (DE).

Ever stepped into a visualization (viz)

center and put on the 3D goggles to watch col-

orful strata spun upside down and inside out?

Technologies can fascinate, intrigue and, most

importantly, change how the world works in

ways often dramatically better than yester-

year.

New technology can also be perplexing

when being moved from scientists hands in

research and development to everyday appli-

cation within an organization, as companiesattempt tying new technologies into opera-

tions.

Although technology integration was

not invented just the other day, the results in-

variably make it seem as if that were the case.

Implementation scenarios still play out ad-

versely at too many companies trying to

bridge R&D and operations. Why is the tran-

sition still so difficult and whats the solution?

Apples, oranges and test pilots

When executives attack problems within theircompanies, the tendency is to draw upon

knowledge about their specific industry, their

experience within that industry and experi-

ences of colleagues and customers within that

same industry.

Looking outside oil and gas, therefore,

seems to be comparing apples and oranges.

In other words, management is advised to

stick to the business they are in when brain-

storming for answers.

But the real-world tells a different story:

Look anywhere for solutions and find them

in seemingly unlikely places.

For example, who would guess that a

world-class solution for complex technology

integration for the oil industry might actually

come from the United States Air Force (US-

AF)?

The USAF invented the box, referred to

as an intelligent interface (Figure one), be-

tween R&D and operations to not only sup-

port technology integration but to actively

participate in product and mission innovation.

Since its formation in 1947, the USAFs

mission has called for continually improvingtechnology. Therefore, being technically-ori-

ented thinkers and overachievers, they devel-

oped an intelligent interface which has been

the key to innovating and integrating every

new aircraft into operations for more than half

a century.

So, to

get inside the

worlds most

effective inte-

gration of new

technology,

temporarily

suspend the

whole idea of

working at an

oil company,

don the test pi-lot gear and

get ready to

see how ex-

cellence is

routinely

achieved.

Home to the USAF intelligent interface

is Edwards Air Force Base, where the Test

and Evaluation Squadron and the USAF Test

Pilot School are located.

The test squadron ensures that all new

technology meets mission requirements and apivotal part of the process focuses on using

operational personnel who have completed

test pilot school. In other words, the interface

includes people from both operations and

R&D sides.

However, not just anybody can be air-

borne at Edwards AFB; only the best and

brightest are selected for this prestigious

school, with some applying several times be-

fore acceptance.

Ten years of pilot experience is required,

of which five years must be in a command po-

sition.

Further, although bravery and flying

skills are requirements, much more is de-

manded. This includes scientific and engi-

neering knowledge, critical and reasoned

judgment and managerial skills of the first or-

der.

They must also have an affinity for me-

chanical systems, an ability to feel the air-

plane, a well-honed sense of what is happen-

ing at all times and mature, reasoned judg-

ment. Upon acceptance, applicants undergo a

40-week intensive training program directed

at taking day-to-day operational opportunitiesand turning them into real technology proj-

ects that come back as airplanes.

Applying this to digital energyIn the ongoing goal to make new technology

work for a companys greater good, simply

linking an innovation to operations is not

enough.

The use of an intelligent interface helps

ensure that the power of DE technology is

used to enhance daily business operations,

now and in the future.The technology integration problem

stands out when people try to take complex

and sophisticated DE innovations and tie

them into a complex and sophistical opera-

tions system without the use of an intelli-

gent interface.

In place of an intelligent interface, how-

ever, is often a very unsophisticated integra-

tion approach staffed by transaction-oriented

personnel, frequently with little or no opera-

tional experience.. A passive, transaction in-

terface just is no substitute for an intelligent

interface that can analyze, modify and im-

prove the both operations and the technology.

Depending on ones perspective that

may seem doable or difficult but, whichever

applies, the DE/intelligent interface must op-

erate with a set of attributes. If not, once

again the necessary integration either will not

happen or will be exceptionally bumpy and

ultimately unsatisfactory.

One, a DE Intelligent Interface must be

a formally chartered function, not a set of in-

formal practices that may or may not have

worked in the past.Two, it must have leadership backing

and assigned responsibility to do this inter-

face, backed both by operations and the R&D

or IT side.

Three, the Intelligent Interface must

Look anywhere forsolutions and find them inseemingly unlikely places -Dutch Holland, CEO,Holland & Davis

Figure 1 - the US Air Force likes to see researchand development well integrated withoperations



20/32

and insertion, not have technology done to

them.

On the downside of not getting the po-

tential of technology due to not interactingand innovating around it, again an AF simi-

larity exists.

Not achieving technology integration

would be like the AF commissioning Boeing

to build an airplane, but never having the op-

portunity to test it and see if it could fly new

and different types of missions.

This causes them to miss out on a huge

element of both innovation and integration

since many innovations come from the Ed-

wards AFB test environment and go back to

Boeing for airplane improvement.Whats happening right now is that the

best and brightest still work very hard to get

into test pilot school because they know it is

the critical link between R&D and the flying

world. This is precisely not where the DE

world currently is.

In other words, more operations people

need to figuratively stand on stage and reach

out for the opportunities continually emerg-

ing from DE. The DE culture really needs

people who want to make things happen.

In order to do this, there must be a for-

mal organization spin, perhaps taking

lessons learned from the USAF. Not de-

pending on informally touching base across

the interface between R&D and flying, the

USAF employs a carefully planned DE intel-

ligent interface.

Today, this same kind of interface, while

only existing in some oilfield companies, is

something to which all companies can realis-

tically aspire and benefit from.



have a mission focus, not a technology focus.

Four, the interface should have functions

shown inside Figure 2.

Essentially, the DE/Intelligent Interface

is powered by the disciplines and principles

of systems and change engineering.

Staffed by the highly qualified opera-

tions personnel, these people should have

some of the key attributes as those in the AF

test pilot school. That includes ten years in

operations, five years with bottom-line re-

sponsibility and high credibility with opera-

tions personnel.

Additionally, they are marked and des-

ignated as comers in the organization and

known as Operations Stars, or proactive lead-

ers who are consciously competent. The lat-

ter refers to being able to articulate what op-

erations needs, wants and is doing.

They are anchored in what we do in op-

erations and the way we do it, not in the the-oretical way it ought to be done. More vis-

cerally, these individuals have business oper-

ations in their bones. They have a general

understanding of the IT environment rather

than knowing the nuts & bolts of DE tech-

nology and they must keep conversations fo-

cused on the mission first.

Reaping the benefitsThe idea of figuring out how to best make DE

pay off, using the context of the USAF, is to

challenge readers to take some or all the ideasand evaluate their own DE implementation

effectiveness, competence, horsepower and

future potential.

Even though DE was not unveiled the

other day, it is still relatively new and person-

nel at companies throughout the world are

continuing to determine how to best get their

collective arms around both DE technology

and its integration problems.

How new? Consider that the Society of

Petroleum Engineers (SPE) in April is hold-

ing its seventh annual conference on DE. In

contrast, the USAF would have already held

its sixtieth conference.

That means that the entire interfacing

process, no matter how far it has come, is still

in its infancy compared not only with what it

is and could be but with what it should be.

The upside for USAF test pilots is that

by completing the school, they get an impor-

tant career boost; some become astronauts.

On the oil and gas side, leaders in the energy

business of tomorrow are those who will be

able to harness technologies, including DE,

for their operations.And who are the leaders? They are the

ones who actively and aggressively find tech-

nologies that enhance operations in the first

place, then getting these technologies inte-

grated. They will lead technology innovation

Figure 2 - the functions of the intelligentinterface

Tell us about your experiencesWere always looking for digital oilfield

implementation stories, cases (good and

bad) and good ideas to feature. Send your

input to dutch at hdinc.com


21/32


22/32



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The company that monitors 20,000 gaswellsOklahoma company Universal Well Site Solutions has implemented its remote monitoring and control system

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www.universalwellsite.com

Universal Well Site Solutions of Oklahoma

reports that its wireless well remote monitor-

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20,000 coal bed methane wells across the

US, and also in China and Australia.

All of the equipment to be installed at

the well head is supplied as a single unit,

called a UniSkid, which includes electricity

Documents

#18 Digital Energy Journal - April 2009