Real-Time Drilling Operations CentersA History of Functionality and Organizational

Purpose

Dr. Jake Booth

Booth Consulting L.L.C.

SPE 123225

Digital Energy

Conference, 2009

SPE 126017

Intelligent Energy

Conference, 2010

Drilling Operations CentersTimeline of Significant Initiatives

Exxon Acquisition

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

10/81 Superior DSC

9/83 Tenneco CSDC

9/84 Amoco DCC

Chevron Acquisition

Mobil Acquisition

1992 1993 1994

First Generation

20061995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2007 2008

SPE 123225

12/01 Statoil OSC

11/02 ConocoPhillips ODC

12/01 Norsk Hydro / BH BEACON I BEACON II

Early ‘02 Shell RTOC

1/08 Saudi Aramco RTOC

?/04 Chevron WellDECC

10/02 BP Drilling OOC

Second Generation

SPE 126017

Present Scope – Operator

Strategies for Drilling

Drilling Operations Centers – First Generation

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

10/81 Superior DSC

9/83 Tenneco CSDC

9/84 Amoco DCC

Chevron Acquisition

Mobil Acquisition

1992 1993 1994

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

US Rig Count

Data Transmission

Data Display

Formal Data Management

Data Analysis

Drilling Operations Centers – Spectrum of Functionality

Surveillance and Increased Visibility of

Data

Realtime Technical Applications

New Ways of Working

Integration of Data from multiple sources

Live Technical Models

Changes in Organizational Accountability

People Integration

Cross-Disciplinary Work Flows

Virtual Teams –Relocation of Personnel

Increasing system complexity and need for organizational change

Superior DSC (1981 to Present) - Summary

• Initial Vision– In response to 1978 Natural Gas Act, deep high-pressure wells, high rig

count (> 4,000), low crew experience.

• “Optimization in well planning, early recognition of warning signs, improved decision making and better communication”

• Joint agreement with Dresser Magobar

• Organizational Role• “It was clearly understood by all that this was a tool to assist rig site

personnel with back-up surveillance and assist office personnel responsible for certain decisions with a complete picture of the well site operation.”

• “Careful planning and a thorough explanation allowed field personnel not to view this system as an invasion of their area of responsibility.”

Superior DSC – 1981

The Console Area in Superior Oil’s Drilling Support and Communications

Center in Lafayette

Superior DSC – 1981

Rusty Williams leaning on the Data General S250 Mini-Computer*.

Adjacent is the 9 track 800/1600 bpi Tape system for back up, then a 96

Mb Hard Drive

“The Soul of a New Machine” Tracy Kidder, 1981. Pulitzer Prize

Superior / Mobil / ExxonMobil

• Mobil - 1984

– Facility Upgrades• Satellite Earth Station installed (then relocated to Dallas)

• Mini-Centers installed in New Orleans, Houston, Woodlands

• Standard Drilling Reporting System (DRS – 1988)

• Increased telecommunications role. Integration with desktop computers

• ExxonMobil - 1999• Relocated to Houston

• Data General equipment and legacy software retired

• DRS replaced by commercial solution

Tenneco CSDC (1983 – 1990)

• Vision

– Improve efficiency and reduce costs.• Time code analysis. Rig contractor performance analysis

• Organizational Role

– Console staffed by contract personnel

– “As the system effectiveness increased, there was some reluctance on the part of rig personnel to accept the system.” (notification protocol implemented)

Tenneco / Chevron

• Chevron 1988

– Relocation to Chevron’s Drilling Technology Center in Houston

– Major upgrade

• UNIX workstations (including rig-based system)

• Major graphical software development initiative

• Organizational Role

– Broader scope (Technology, Engineering & Geoscience)

Amoco DCC (1984 – 1989) - Summary

• Vision– “A new approach to drilling wells”

– State of the art technology

• Satellite Communications / Full Motion Video

• Drilling Simulator (developed with Logicon) - 70 interconnected technical models. “real-time and faster than real-time simulations of drilling a well”

• Organizational Role– Critical Well Facility

• Advanced Computing Systems

• Satellite Communications Infrastructure

• Technical Experts (with operational and research credentials)

Amoco – Drilling Command and Control Center

“no keyboards”

“extensive use of color

graphics”

Navarin Basin Campaign - 1985

• Five wells drilled during weather

window

• Two Arctic class semisubmersible

rigs

• Wareship and Tanker

• Onshore aviation base

• 300 personnel in field

• “Optimum Drilling Plan” developed

at CWF (and CWF Drilling

Supervisor accountable for its

implementation)

Results (Zaremba et al, 1986):

“…..spectacular. The CDF systems methodology responded quickly

and effectively to all critical situations and resolved the problems”.

“The most important part of the CDF approach, reduction of the

learning curve, was amply achieved with a claimed improvement rate

three times the industry average?

Drilling Operations CentersTimeline of Significant Initiatives

Exxon Acquisition

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

10/81 Superior DSC Mobil Acquisition

1992 1993 1994

9/83 Tenneco CSDC

9/84 Amoco DCC

Chevron Acquisition

First Generation

20061995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2007 2008

12/01 Statoil OSC

11/02 ConocoPhillips ODC

12/01 Norsk Hydro / BH BEACON I BEACON II

Early ‘02 Shell RTOC

1/08 Saudi Aramco RTOC

?/04 Chevron WellDECC

10/02 BP Drilling OOC

Second Generation

2nd Generation EnablersConvergence of Several Technologies

• Advances in IT– Telecommunications – Satellite, Fiber-Optic

– Visualization

– Proliferation of digital data

• Integrated Workflows– Shared Earth Model

– Visualization Centers

• Advances in Drilling and Downhole Measurement Technologies– Rotary Steerable Systems

– Increased range of downhole measurements

• Efficiency and Sustainability Strategies

Regional Strategies

• North Sea (Norsk Hydro, Statoil, BP, Conoco Phillips)– Post Peak era. Shift toward long-term sustainability, efficiency

– Overarching Integrated Operations strategy from Norwegian OLF (cross-company collaboration, POB reduction etc.)

– Shared Infrastructure (Fiber Optic backbone *1,143 km installed in ’98-’99+, Secure Oil Industry Link *SOIL+ network)

– Re-emergence of interest in standards (Statoil DART. XML. WITS WITSML)

• Gulf of Mexico (Shell, Chevron)– Deep water, sub-salt strategies

• Middle East (Saudi Aramco)– Integrated Operations, Horizontal drilling (increase and extend

production from mature fields / establish production on long-discovered fields)

North Sea (1)

• Norsk Hydro– Partnered with Baker Hughes Inteq (BHI) on Baker Expert Advisory

Center & Operations Network (BEACON). Operational in 2000.

– New staffing model. Positions moved onshore, essentially unchanged.

– Suspended in 2004. Redesigned staffing model and negotiated changes with unions. Resumed in ’05

– Norsk Hydro established an Onshore Operations Center in their office to enhance collaboration between Drilling, Geoscience and service company FE providers. Used to support five offshore fields

– By mid 2006 on Troll Field (Dyve Jones et al, 2008)

• 150 wells – 250 horizontal sections

• 900,000 m drilled. 560,000 m (60%) was in reservoir

• Average length of horizontal sections had increased from 1,500 m to 5,000 m

• TVD placement accuracy had improved from ±1.5 m to ±0.5 m

North Sea (2)• Statoil

– Onshore Support Center operational in 2003 for drilling increasingly complex 3D wells in the Heidrun and Visund Fields

– Fiber optic link cited as key enabler

– Internal Drilling Automation in Real Time (DART) strategy started in ’99, focused on improvements in well positioning, data transfer and data quality control

– DART Link established a standard format for data acquisition from multiple vendors. A technology partnership with BP led to broader use and to development of WITSML

– In 2005 Statoil launched an Integrated Operations corporate initiative

– Statoil and Norsk Hydro merged in 2007

– Global Sub Subsurface Support Center (Lowen, 2009)

– Have piloted a ‘follow-the-sun’ 24/7 support model, use of wired drillpipe on Troll Field

North Sea (3)

• BP– “Team 2000” project initiated in 1997. Also partnered with BHI in

development of BEACON

– Piloted in 2001. Suspended due to “human factors….. Compounded by reliability and maintenance problems”. Resumed in late 2001

– Focus on process change and use of Advanced Collaborative Environments (ACEs). Partnered with University of Aberdeen and Boston University in designing new work processes and managing organizational change

– Gradually moved toward an operator managed model for WITSML which involved coordinated testing and ownership of key components of the architecture

North Sea (4)

• ConocoPhillips– Onshore Drilling Center started operations in 2002. Multidisciplinary

team for well planning, and improved integration between drilling and geology groups

– eDrilling - real-time drilling simulation, visualization and control

• Mechanical Earth Model, T&D, Wellbore Stability, Pore Pressure, ROP and Drill String Mechanics

– Investigating concepts such as Information Overload, Decision Theory, Decision Models and Bayesian Networks

Gulf of Mexico

• Shell– New Orleans ROTC started in 2002

– Reduce deep-water well costs by providing proactive support

– Staffed by combination of operator and service company personnel

– Expanded in 2003 to support up to 15 rigs

– Satellite centers use to extend support to other areas (e.g. Egypt in 2007)

• Chevron– Well Design Execution and Collaboration Center (WellDECC) started in

2004

– Focus on technically complex, expensive deep water wells

– Integrated with Chevron Project Development and Execution Process (CPDEP)

– Staffed by combination of operator and service company personnel

Middle East

• Saudi Aramco– Use Maximum Reservoir Contact (MRC) wells to extend production of

long-established fields and efficiently exploit long-discovered fields with complex geology

– Large scale onshore operations (more than 600 wells planned for new Manifa and Khurais fields)

– In 2005 commissioned a 24/7 Geosteering Operations Center working in conjunction with several Real-time Operations Centers.

– Operator owned real-time data architecture

– “… most active user of the WITSML standard worldwide”

Functionality and General Trends

• Foundational Capability– Ongoing Management and Quality Assurance of Data (trustworthy data)

– 24/7 operation

• Standards – Data and Architecture– WITSML – maturing of standard

• New players (IBM, Microsoft, SAIC, Accenture / Performix, Mobilize)

• New roles - full well life-cycle service model (Kongsberg, Petrolink)

– Formal management of Real-time System Architecture

• Higher Level Processes– Multidisciplinary, collaborative work processes (e.g. geosteering)

– Improve efficiency of drilling process (sophisticated technical models, automation, control)

– Knowledge Management

• Organizational and Behavioral Change Management– Technology changes rapidly. People and organizations change relatively slowly