NPF conference September 17-18, 2008

Intelligent Fields and Integrated Operation

Integrated Operations beyond 2020

Center for Integrated Operations in the Petroleum Industry

Jon Kleppe and Jon Lippe

INDUSTRIAL PARTNERS

RESEARCH PARTNERS

COLLABORATING INTERNATIONAL ACADEMIC PARTNERS

Many ideas in this presentation are based on contributions from our partners:

What happened the last 15 years?-with relevance to Integrated Operations

Technology (ICT)•The internet and www•email for all•PC revolution•PDA and Cell phones•ISDN, ADSL, WLAN•Microsoft, Linux•High performance computing and visualization•IO specific: Fiber optics on the NCS, operation centers

People and Organizations•Business Process Reengineering (BPR)•Knowledge management•Core competence strategy thinking (Gary Hamel)•Flat organizations•Multidiscipline teams•IO integrated teams in reservoir, production, drilling

Processes•Global outsourcing and production•E-Commerce•Value chain management, Integration of business processes of customers and suppliers

Radio Lux generation (age 55-70)

Gaming generation (age 10-25)

Cell Phone/email generation (age 25-40)

Color TV generation (age 40-55)

Recruitment base

Challenges, Entrepreneurs

Seniors, Top managers

Veterans, AdvisorsHierarchy

Predictability

Flexibility, mobility

Virtual Life

ROLE IN BUSINESS

What will happen with the workforce the next 15 years?

Gaming generation (age 25-40)

Cell Phone/email generation (age 40-55)

Color TV generation (age 55-70)

Recruitment base

Challenges, Entrepreneurs

Seniors, Top managers

Veterans, AdvisorsPredictability

Flexibility, mobility

Virtual Life

ROLE IN BUSINESS

?

"In the future you can collaborate with

anyone,

anywhere,

at anytime,

and at almost any level of interaction"

David Coleman, Founder and Managing Director of Collaborative

Strategies, (www.collaborate.com)

Virtual teams in a “Flat world”

Cave technology 1990 –collaboration

Collaboration technology

• Like Jack Bauer in “24”

• Mobile computing and wireless networks will be many times faster than today’s work stations

• Extended collaborative services available (visualization, VR, data sharing, communication, virtual meetings)

• Seamless and safe data management/exchange through the web, communication standards

• “Intelligent” data retrieval, search engines based on semantic web

Collaboration

Collaboration technology 2008

Virtual collaboration 2020

Collaboration

Interactive technology 2020

Multiple display faces

Virtual collaboration 2020

2008: A NEED FOR INTEGRATION OF INFORMATION

Most information systems today are still designed by specialists, for specialists

Models in different domains will communicateInterconnection between models

Attitudes

Collaboration skills

Knowledge about other disciplines

Specialized knowledge

The new petroleum engineer:T-competence

New specialist: Team coordinator

“Specialist General practioner”

Specialists are still needed, but their competence is extended

The role of the universities in education of “IO ready” petroleum engineers

The Future WorkspacePerspectives on Mobile and Collaborative WorkingMOSAIC project, final report (http://www.ami-communities.eu)

“Ad-hoc networks of mobile professionals supported by ubiquitous* collaboration services”

Ubiquitous* (Wikipedia): Seeming to appear everywhere at the same time

Ormen LangeOperation room

Expert groups

Shell Global

Norske Shell Stavanger office

Nyhamna office Kristiansund office (Råket)

Draugen Operation room

Contractors

Shell Draugen and Ormen Lange operations

Actors in Production Optimization

Source: Camilla Tveiten, NTNU/SINTEF, Courtesy Shell

Communication patternShell Draugen and Ormen Lange operations

Actors in Production Optimizing

Source: Camilla Tveiten, NTNU/SINTEF, Courtesy Shell

Consequences for organization and management

Complexity of networks between integrated teams makes traditional hierarchical structures less efficient

Teams will connect “like neurons”, depending on what gives added value. The networking process is hard to manage directly.

Management is redefined:

What will be words like “control”, “responsibility”, “reporting to…” mean in the new IO environment?

Top level management building culture-Development of culture, values, goals, KPI’s-Long term strategies and decisions

Middle management Team facilitators/coordinators, network coordinatorsConversion from middle management to team facilitation and coordinationWill it be the same people? Retraining?

Team responsibility-Smart decisions. Quality assurance will have to take place inside the team- Connect to other teams and specialists, collect information and expert support

Integrated operation will expand to the whole value chain from exploration to marketing

…giving added value, but also increasing the complexity of communication

Technology: Remote operation

Sensor and data transmission technology Nano technology/wireless sensors and new signal transmissions

New opportunities for information from reservoir, downhole, subsea and top site

Drilling information

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ata

Time

The amount of data will increase drastically need for automatic data processing

Workload oil company

Workload service/system supplier

Total amount of data to be analyzed

Amount of data to be analyzed by supplier

Courtesy to Trond Lilleng, StatoilHydro

CONSEQUENCES

1. Suppliers will receive a larger and larger portion of data analysis tasks

2. Suppliers will have deep competence of models and tools, and need to be integrated in the optimization teams

Te

am p

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orm

ance

Time

MODEL BASED DECISIONS

Team integration, communication

Model based decision making

Total team performance

Shift from reality to “virtuality”

Practical experience is hard to represent in mathematical modelsWill it still be ”valid”?

Practical experienceHolistic view

Model based thinkingAnalytical approach

Models are simplifications of realityAre we aware of their limitations?