Big Data:

Bringing Safety and Reliability to the Digital Oilfield

Agenda

Introduction

What is Big Data?

What is the Digital Oilfield?

Big Data Meet The Digital Oilfield

AMP Analytic Monitoring Platform

KUDI the key to making good decisions

Big Data : Oil

Who is R2O?

Established in 2013
Headquarters in Houston, Texas
Edmonton Research Park
550 Employees and Contractors in 17 offices in
Canada and the USA
900 upstream and midstream Oil & Gas
customers in Canada, the USA, and in 23 other
countries
Top-line revenue in 2011 of $92 million
ZED on the TSX-V
A recognized Great Place to Work for the past
four years by the Great Places to Work Institute

What does R2O do?

Exploration

Operations

Reclamation

R2O provides services enabled by people and

technology to upstream and midstream
customers in the Oil & Gas Industry

These services help

our customers:
Avoid Downtime
Reduce Operating
Costs
Address HS&E
challenges
Improve Compliance
with Industry
Directives

We help customers Realize Production Potential

4

How does R2O do this?

Display

Transport
Telecom
Network

Source:
Upstream and
midstream
gathering system

R2O
Network

Validate
Store
Add Value

R2O runs its business as a cloud-based service

capturing accurate, timely data from the wellsite

How does R2O get data?

1. Field Management Solutions
Produce, Monitor, Alarm, Control
Near-real-time (minute, hourly)
SilverJackTM

MTRAC

Smart Alek
R2O ConnectTM
SCADA
The richest source of timely, accurate, actionable data
comes from real-time monitoring at the well-site
6

How does R2O get data?

2. Central Processing
Historical Data
Daily resolution, gathered
daily, weekly or monthly

R2O EFM Walk-up

3. Data Exchange
Varying frequencies and
resolutions
R2O Data
ExchangeTM

R2O True
ChartTM

R2O also gathers historical data by means of

manual collection or via third-party systems

How do we view the data?

R2O DashboardsTM

R2O VitalTM

Data Management Solutions

Analyze, Report

R2O AccessTM

R2O offers SaaS tools to view and analyze the

various types of data we collect

What type of data do we collect?

1. Customer Data

Server-based: Monitoring customer visits and browser type via Google

Analytics
R2O is using industry tools to monitor customer
behaviour today, but this will move towards
segmentation and persona-based modeling

What type of data do we collect?

2. Operational Data

Field-based: Operational Data

from a SilverJack ControllerTM

Server-based: Operational Data and Apdex

score from New Relic monitoring Software

As a cloud-based server provider, we need to

monitor the health of the assets supporting our
customers production process

10

Load on Rod String

What type of data do we collect?

Displacement of Rod String

Pump cards showing load on the rod string as a
function of displacement during the stroke cycle
11

What type of data do we collect?

3. Production Data

Volume or mass flow rates of fluids can be

determined using the Bernoulli principle/equations
12

What do we do with the data?

Reporting Compliance and Auditing (Today)

Cash-flow and payments to ERCB and partners

Static Alarm Thresholds (Today)

Customer configures alarms for individual sensors/data types

Set High and Low Process Control Limits to create server or
field-based alarms

Open- and Closed-Loop Control (Today)

Enable remote control of the well through the SaaS offering

based on observed data to effect changes in well behaviour
(Human feedback loop)
Enable autonomous control of the well locally at the well
through intelligent instrumentation (Algorithmic feedback
loop)
Report, Alarm, Control
13

Future Analytics development

Adaptive Alarm Thresholds
Algorithms monitor underlying process and adjust control
limits if appropriate
Predictive Process Behaviour

Look for patterns in historical production data to predict

future well behaviour
Customer Analytics

Profiling into User Personas and study software grazing

patterns to optimize work-flow design or recommend
additional tools that might add value

Condition-based maintenance

Sensors report various operations pieces of data that are then

analyzed to predict when servicing or preventative
maintenance might be required

14

What comes next?

Continue to develop Analytics Program
through a combination of internal
investments and partnerships
Signed a five-year agreement with TR
Labs in February 2012 for an ongoing
Data Analytics program
Build Partnerships with talented
companies interested in doing analytics
work in Oil & Gas

R2O is committed to transforming data to help upstream

and midstream customers realize their production potential
15

What is Big Data?

IDC Definition: Big Data Technology

The Big Data Technology Stack

Big Data:
Creating Value

Decisions
Value is created when good decisions are
made & implemented:
To add new assets, modify existing ones,
identify & resolve problems, and change
operating practices or procedures

What is Digital Oilfield?

The vision for the Digital Oil Field is one where

operators, partners, and
service companies seek to take advantage of
improved data and knowledge
management, enhanced analytical tools, real-time
systems, and more
efficient business processes
CERA: Digital Oil Field of the Future

Analytics Monitoring Platform - AMP

Improving Oil & Gas Operations With Big Data and Analytics

Templates
Your own sub headline

Templates

This is an example text. Go ahead and

replace it with your own text. This is an
example text. Go ahead and replace it
with your own text.
This is an example text. Go ahead and
replace it with your own text.

Your own footer

Templates

tThis is an example text. Go ahead and

replace it with your own text. tThis is an
example text. Go ahead and replace it
with your own text.
This is an example text. Go ahead and
replace it with your own text.

Your Logo

Templates
Your own sub headline

Templates

This is an example text. Go ahead

and replace it with your own text.

Templates

This is an example text. Go ahead

and replace it with your own text.

This is an example text. Go ahead and

replace it with your own text. This is an
example text. Go ahead and replace it with
your own text.
This is an example text. Go ahead and
replace it with your own text.

Templates

This is an example text. Go ahead

and replace it with your own text.

Your own footer

Your Logo

Templates
Your own sub headline
Templates
1

This is an example text. Go

ahead and replace it with
your own text. This is an
example text. Go ahead and
replace it with your own
text.
This is an example text. Go
ahead and replace it with
your own text.

Your own footer

Templates
2

tThis is an example text. Go

ahead and replace it with
your own text. tThis is an
example text. Go ahead and
replace it with your own
text.
This is an example text. Go
ahead and replace it with
your own text.

Templates

tThis is an example text. Go

ahead and replace it with
your own text. tThis is an
example text. Go ahead and
replace it with your own
text.
This is an example text. Go
ahead and replace it with
your own text.

Your Logo

Logger

Sender

Formatter

Converter

Requester

Encryptor

Notifier

Monitor
Compressor
Your own footer

Your Logo

Template Text
Text for templates
-Example text
Text
Template Text
Text for templates
-Example text
text

Templates
Your own sub headline

This is
placeholder text.

This is an example text. Go ahead and replace it

with your own text. tThis is an example text. Go
ahead and replace it with your own text. This is
an example text. Go ahead and replace it with
your own text.

This is
placeholder text.

This is an example text. Go ahead and replace it

with your own text. This is an example text. Go
ahead and replace it with your own text. This is
an example text. Go ahead and replace it with
your own text.

This is
placeholder text.

This is an example text. Go ahead and replace it

with your own text. tThis is an example text. Go
ahead and replace it with your own text. This is
an example text. Go ahead and replace it with
your own text.

Your own footer

Your Logo

Templates
Your own sub headline
Template Text
Text for templates
-Example text
Text
Template Text
Text for templates
-Example text
text

This is an example text. Go ahead and replace it with your own text. This is an example text. Go ahead and replace it
with your own text. This is an example text. Go ahead and replace it with your own text.

Your own footer

Your Logo

Templates
Your own sub headline
Templates

This is an example text. Go ahead and replace it with your own text. tThis is an example text. Go ahead
and replace it with your own text. This is an example text. Go ahead and replace it with your own text.

Templates

This is an example text. Go ahead and replace it with your own text. This is an example text. Go ahead
and replace it with your own text. This is an example text. Go ahead and replace it with your own text.

Templates

This is an example text. Go ahead and replace it with your own text. tThis is an example text. Go ahead
and replace it with your own text. This is an example text. Go ahead and replace it with your own text.

Your own footer

Your Logo

Your own footer

Your Logo

Templates
Your own sub headline

This is
placeholder text.

This is
placeholder text.

This is
placeholder text.

Your own footer

This is an example text. Go ahead and replace it with

your own text. tThis is an example text. Go ahead
and replace it with your own text. This is an example
text. Go ahead and replace it with your own text.

Your Logo

Templates
Your own sub headline
1

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

This is an example text. Go ahead and replace it with your own text. This is an example text.
Go ahead and replace it with your own text

Your own footer

Your Logo

This is an example text. Go ahead and

replace it with your own text. This is an
example text. Go ahead and replace it with
your own text.
This is an example text. Go ahead and
replace it with your own text.

Your own footer

Your Logo

Templates
Your own sub headline

Your own footer

This is
placeholder text.

This is
placeholder text.

This is
placeholder text.

This is
placeholder text.

This is
placeholder text.

This is
placeholder text.

Your Logo

Templates
Your own sub headline

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

This is an example text. Go ahead and replace it

Your own footer

Your Logo

Editable diagram Venn diagram

1.

Example
2.
3.

Example

Your own footer

This is an example text. Go ahead

and replace it with your own text.
This is an example text. Go ahead
and replace it with your own text.
This is an example text. Go ahead
and replace it with your own text.
This is an example text. Go ahead
and replace it with your own text.

Example

Your Logo

Templates

This is an example text

Line chart

This is an
example
text. Go
ahead and
replace it
with your
own text.

5
4

200
5

200
6

200
7

Your own footer

200
8

200
9

201
0

Your Logo

Templates
Progress chart Upward arrow

Example
Example

Example
Your own footer

Your Logo

Templates
Pie diagram
Templates

text
text

Logo

This is an example text. Go

ahead and replace it with
your own text. This is an
example text.
Go ahead and replace it
with your own text.
This is an example text. Go
ahead and replace it with
your own text.

text

Your own footer

Your Logo

Arrow Process
Your own subheadline

Text

Your own footer

Text

Text

Your Logo

Smarter Resources to Fuel a Smarter Planet

Ulisses T Mello, Ph.D.
Global Research Leader Petroleum Industry
IBM Research

2011 IBM Corporation

Angola Launch Event

Smarter planet: Thinking and acting in new ways to make our

systems more efficient, productive and responsive.

NEW
INTELLIGENCE

GREEN
AND BEYOND

SMART
WORK

DYNAMIC
INFRASTRUCTURE

+
INSTRUMENTED

INTERCONNECTED

INTELLIGENT
2011 IBM Corporation

Angola Launch Event

A smarter planet empowers organizations to do more, using less.

U.S. power company: Saves $1.2 million annually

by using an RFID-based fleet optimization system to
reduce the amount of repair work on their vehicles.

River and Estuary Observatory Network: Will create

the first technology-based real-time environmental
monitoring and forecasting network to guide better
policy, management and education for the Hudson
River and estuaries worldwide.

Stockholm, Sweden: An intelligent toll system in the

city center resulted in 20% less traffic, 40% lower
emissions and 40,000 additional users of the public
transportation system.

IBMs Carbon Tradeoff Modeler: Manages and

performs analytics to help companies reduce
emissions and make smarter, more cost-effective
energy choices.

2011 IBM Corporation

Angola Launch Event

What smart things are happening

in the oil and gas industry today?
Where are the greatest
opportunities for progress?

2011 IBM Corporation

Angola Launch Event

Global market forces require new approaches for the oil & gas industry

Volatility of Energy Supply and Demand

Operational
Transformation

Advances in
Technology

Industry
Challenges &
Opportunities

Climate Change
and Environmental
Concerns

Risk and Compliance

Pressures

2010 IBM Corporation

Angola Launch Event

To survive in todays changing oil and gas environment, smart

organizations are working to
EXPLORATION:
FIND OIL AND GAS MORE QUICKLY
Speed overall time to locate and evaluate fields,
plan field development and begin drilling operations.
Upstream
Petroleum
Integration
Optimization
Analytics

PRODUCTION:
EXTEND THE LIVES OF OIL AND GAS FIELDS
Integrate oil and gas production operations across the
entire field to support enhanced recovery methods that
increase recovery factors and extend the life of existing
oil and gas fields.
ASSET MANAGEMENT:
MAXIMIZE RETURN ON ASSETS
Reduce planned and unplanned asset shutdowns
in order to maximize asset utilization and production.
WORKFORCE COLLABORATION:
SHARE KNOWLEDGE ACROSS THE ORGANIZATION
Improve work efficiency and reduce safety and
reliability issues through workforce collaboration.

51
2010 IBM Corporation

Angola Launch Event

Smarter oil and gas: Enabling upstream petroleum.

SMART IS
Finding oil and gas more quickly
by integrating and processing
geophysical and other data
while developing new models
to find and analyze previously
inaccessible reserves.

SMART IS
Extending the lives of oil and gas
fields by achieving best-in-class
recovery of oil-in-place.

SMART IS
Maximizing return on assets
through improved asset
availability and reliability that
increases production rates and
reduces cost and safety risk.

SMART IS
Sharing knowledge across the
organization to facilitate high
impact teaming among highly
skilled experts.

2010 IBM Corporation

Angola Launch Event

Exploration: Setting the context.

5 miles

10%

33%

Oil and gas exploration

efforts are now searching
for resources as far down
as 4-5 miles beneath the
earths surface.

Although oil exploration

methods are improving,
they still may have only
a 10% success rate for
finding new oil fields.

In general, for every

three wells drilled,
only one yields
commercially viable
quantities of oil or gas.

Sources: See notes

2010 IBM Corporation

Angola Launch Event

Smarter exploration: Integrating and processing geophysical and

other data while developing new models to find and analyze
previously inaccessible reserves.

Find
Locate the oil or gas.

Evaluate / Appraise
Determine development viability.

Oil and gas exploration: two key components.

2010 IBM Corporation

Angola Launch Event

Smarter exploration: Integrating and processing geophysical and

other data while developing new models to find and analyze
previously inaccessible reserves.

Model
Process
Interpret

Apply advanced
research and
development to
generate new,
increasingly complex
modelsreducing
risk and increasing
accuracy.

Leverage
supercomputing
technologies and
expertise to make
sense of data
more quickly.

Enable experts
to literally see
historically invisible
factors, globally
and in real time.

Three fundamental processes span both of these components.

2010 IBM Corporation

Angola Launch Event

Smarter exploration: Integrating and processing geophysical and

other data while developing new models to find and analyze
previously inaccessible reserves.
Visual interpretation

Geological models

Seismic processing

Model
Process
Interpret

Petrophysical Analysis

Full reservoir models

Simulations

Proxy models

Forecasting

Expert collaboration

Property models

History matching

Automated framework models

The process is ongoing and iterative, with a spectrum of modeling, processing and visualization
driving further assessments and more accurate risk profiles.
2010 IBM Corporation

Angola Launch Event

Smarter exploration: Integrating and processing geophysical and

other data while developing new models to find and analyze
previously inaccessible reserves.

How will you do it?

Integrate seismic and geologic data from multiple sources and apply supercomputing technologies to analyze it.
Use advanced research, modeling and visualization to improve decision making, reduce exploration risk and cost,
and achieve faster time-to-oil.

Steps to take:
Acquire

Process

Visualize

Collaborate

geophysical, seismic
and other data.

data using high-powered

computing for rapid
cycle time.

data to uncover
new insights.

across geographical
boundaries to
most effectively
interpret results.

The benefits:
Reduced modeling and processing times
Faster identification of oil and gas
in difficult locations

Faster time to oil production

Lower risk of dry-hole

2010 IBM Corporation

Angola Launch Event

Smarter exploration: IBM is partnering with oil and gas

companies around the world to implement innovative solutions.

Repsol is breaking new ground in improving the accuracy

of deep-sea oil exploration by reducing by 85% the time
required to run the highly accurateand computeintensiveseismic algorithms.

ENI, an integrated energy company in Italy, implements

supercomputer technology to augment its seismic imaging
capabilities to tackle ever more complex exploration projects,
and at the same time improve its drilling success rate and
shorten the timeframe to first oil.

58
2010 IBM Corporation

Angola Launch Event

Smarter exploration: These solutions are powered by our unique

expertise spanning all facets of the upstream petroleum sector.

IBM Research and

centers of excellence:
For oil and gas exploration and
production, which include proprietary
IP for areas like basin modeling.

Deep computing expertise:

In algorithms as well as parallel and
multicore processing to maximize
supercomputing capabilities for oil
and gas. Discrete offerings include
BlueGene systems, POWER7
systems and IT powermanagement solutions.

Workforce collaboration solutions:

Integrate processes and technologies
such as Web-based tools, real-time
messaging, conferencing and networking
for real-time decision making.

2010 IBM Corporation

Angola Launch Event

Supercomputing peek speed trend - Moore Law

2008
Petaflop

11yrs

2019
Exaflop

RR

2010 IBM Corporation

Angola Launch Event

Interconnected and interdependent models will provide the

intelligence to predict outcomes and exercise closed loop control

Data validation,
Interpolation and
Explanation
Point detection Field
Reconstruction Connecting
the Dots

High-Quality
Trusted Data

assimilation /
inversion

Simulation &
Prediction
(What if Analysis)
Multi-Modal, Multi-domain

Potential
Outcomes
Uncertainty
Assessment

Context &
constraints

Decision
Model
(Optimum/
robust
action)

(Regulation
& Policies)

Modeling & Orchestration Platform

Oil & Gas
Observed
worlds

Distributed Energy Supply-Chains

Action(s)

Capturing
(Devices, Sensors, Imaging, Cell Phones)
High fidelity, continuous, human assist

Real world

Data & Measurement Platform

61

Water Systems

Actions

Command & Control

Centralized; Distributed;
Peer-to-Peer

Control Platform
2010 IBM Corporation

Angola Launch Event

C&P: Large-scale Basin Modelling

Improved modelling of the complex geological processes
Client
Requirement

Petrobras & Eni

Reduce the risk involved with finding new oil fields. Provide a better understanding
of basin evolution including salt motion

Problem / Issue

The dynamics of the geological basins are not directly observable.

Complexity lurk inside Mobile Rocks (Salt) behave like fluids under pressure.
Conditions can change the rock properties and impact in well prospects.
Need to understand those issues. Therefore basin simulation models are used to
visualise the evolution of basins. The better the model, the better the petroleum
systems definition and exploration.Current numerical basin models are not able to
handle such structural complexity

Solution

New large-scale, multiphase, numerical simulator

Using unstructured (tetrahedral) meshes
Provide unprecedented simulation of complex geological structures.
Designed from the scratch using object-oriented technologies using C++ and
Fortran
New algorithms for dealing with compaction in unstructured tetrahedral meshes
Used XML technology to integrate related systems.
Simulating the interaction of complex geological processes
Such as geological basin formation, compaction, salt motion and fault
displacement
As well as multiphase fluid flow in porous sediments during the evolution of
sedimentary basins.
Better numerical models improve significantly the risk assessment of new
prospects in new frontiers as well as in mature basins requiring rejuvenation
2010 IBM Corporation

Angola Launch Event

Gulf of Mexico Basin Modeling Target 1 billion cells

Mello et al, 1998

2010 IBM Corporation

Angola Launch Event

Solution in
minutes using
1024 cores

temperature

pressure

2010 IBM Corporation

Angola Launch Event

226108 vertices
1213920 elements
32 processors

15.2 secs wall clock

HYPRE PILUT preconditioner
7 iterations
2010 IBM Corporation

Angola Launch Event

Seismic Imaging Reverse Time Migration using GPUs (Cell Processor)

Cell provided 10x average performance for some algorithms
Several collaborations with 3DGeo, Panorama Technologies
The Kaleidoscope Project is a good example in which Repsol YFP, 3DGeo
(Stanford Univ.), Barcelona Supercomputer Center (BSC), and IBM.
Reverse Time Migration (BP Model):

2010 IBM Corporation

Angola Launch Event

Repsol Kaleidoscope Project

MareNostrum,
Europes third
most powerful
computer, resides
in a chapel in
Barcelona
2010 IBM Corporation

Angola Launch Event

Smarter production: Extending the lives of oil and gas fields by

achieving best-in-class recovery of oil-in-place.
Production and
Performance
Reporting

Condition-based
Monitoring

Intelligent Alerts
and Event
Management

KPIs and
Production
Calculations

Collaboration
for Decision
Making

The five key components of Integrated Operations Services are critical to oil recovery.

2010 IBM Corporation

Angola Launch Event

Smarter production: Extending the lives of oil and gas fields by

achieving best-in-class recovery of oil-in-place.
Production and
Performance
Reporting

Condition-based
Monitoring

Intelligent Alerts
and Event
Management

KPIs and
Production
Calculations

Collaboration
for Decision
Making

Control Room
Mail, SMS and other
human alerts

Maintenance
Supervisor/Engineer

ERP, EAM and

other systems

Platform
Engineer

Production
Supervisor

Operator

HSE Engineer

Field and
Asset Owner

These processes take place in a centralized control room, where users and systems are integrated.

2010 IBM Corporation

Angola Launch Event

Smarter production: Extending the lives of oil and gas fields by

achieving best-in-class recovery of oil-in-place.

How will you do it?

Optimize your recovery of oil-in-place across the planet by analyzing and integrating processes at a single site,
repeating across multiple sites and even entire fieldsand then leveraging your methods and findings on a global scale.

Steps to take:
Assimilate

Instrument

Integrate

Implement

Analyze

Optimize

data to improve
modeling and
increase
efficiency.

operations to gain
performance and
productivity
data.

data across
wells and fields.

virtual
collaboration
capabilities.

historical trends
to create a senseand-respond
environment.

operations
across
assets.

The benefits:
Increased overall recovery factor
Extended field life
Increased operational efficiency

Reduced production costs

Reduced environmental
and safety risks

2010 IBM Corporation

Angola Launch Event

Smarter production: IBM is partnering with oil and gas companies

around the world to implement innovative solutions.

Statoil links advanced real-time sensing capabilities in

the field to collaborate and analyze resources across the
enterprise for Enhanced Oil Recovery (EOH) resulting in
significant increased production and improved operational
efficiency at reduced cost.

Shell, through a collaborative project with IBM, is exploring

advanced techniques for reconciling geophysical and
reservoir engineering field data. The project integrates
proprietary Shell software for reservoir simulation and
prototype software for optimization, using an HPC
infrastructure for application workloads. The data
reconciliation process is being reformulated and automated
to increase the cost-effectiveness and improve results.

71
2010 IBM Corporation

Angola Launch Event

Smarter production: These solutions are powered by our unique

expertise spanning all facets of the upstream petroleum sector.

IBM Research:
For oil and gas exploration and
production, which includes proprietary
intellectual property for areas like
reservoir management. In addition,
IBM has recently launched a research
facility in Brazil primarily focused on
natural resources and working
collaboratively with key industry clients.

Integrated operations
services solutions:
That help integrate and manage
specific functions including event early
warning, rotating and static equipment
monitoring, predictive/proactive
maintenance tracking, data validation
and well-performance and productiontarget monitoring.

Business analytics tools:

For oil and gas support trendbased well performance analysis,
predictive maintenance and
optimized operations.

2010 IBM Corporation

Angola Launch Event

Case:

Extending the life of oil and natural gas fields by the

joint inversion of well and 4D seismic data for history
matching

IBM's long-standing analytics and

simulation experience will meet Shell's
strong subsurface and reservoir
expertise to create a more efficient,
more accurate picture for reservoir
modeling.
The companies will explore advanced
techniques for reconciling geophysical
and reservoir engineering field data.
As a result of applying improved
algorithms, analytics and accelerated
simulations, Shell can reduce the
educated guesswork and extract natural
resources with more certainty and
efficiency, thereby optimizing the
recovery of oil and gas.
HOUSTON & ARMONK, N.Y. - 26 Feb 2010:

An example of the type of modeling image Shell uses to

represent a very complex set of data. The collaboration with
IBM is expected to bring even greater clarity to reservoir
modeling.

2010 IBM Corporation

Angola Launch Event

History Matching is an Inversion problem and can be cast as an

optimization problem

Simulator

porosity,
permeability

Source: Echeverra Ciaurri, D. et al 2008

Forward: given parameter and model, estimate observations

Inverse: given observation and model, estimate parameters
2010 IBM Corporation

Angola Launch Event

C&P: Joint Inversion of Reservoir Field Using 4D Seismic

Reservoir Management / Integrated Operations
Reservoir

Seismic

updating

geological
model
reservoir
parameters
m

rocks

reservoir
simulation

fluids

well
performances +
gradients w.r.t. m

seismic attribute
change
(impedances)

petro-physical
model
changes in
saturation &
pressure

saturation &
pressure

mismatch

dynamic well
log data
well
observations
history productions
2010 IBM Corporation

Angola Launch Event

Challenges and Technical Innovations Expected

Uncertain spatio-temporal data (reservoir
characterization)

Exploitation of problem structure - physical

and computational

Data with different space and temporal scales

Sparse representation a model can be

represented compactly by a small number of
parameters by choosing an appropriate
representation that exploits the spatial
resolution of the reservoir

Very large number of variables

Large-scale optimization problem

Non-convex objective function and nonlinear

constraints

Model reduction the model large

dimensionality can be reduced by using
techniques as multi-level formulation, which
targets efficient computation and robustness
Regularization modern regularization
techniques are expected to be used to
represent a-priori information more reliably
and ensure coupling of data relationships
Coupling - Improve degree of coupling
between seismic and well data using
information- and physics-based coupling

2010 IBM Corporation

Angola Launch Event

Asset management: Setting the context.

1.7 million

1,527

$1 million

Employee deficit
needed to run the
vast, remote oil and
gas operations by
2030

Average active rotary

drilling rigs in the U.S.
as of June, 2010.

Cost of some type of

pumping trucks
needed at well sites

2010 IBM Corporation

Angola Launch Event

Smarter asset management: Maximizing asset availability and

reliability to increase production rates while reducing cost and
safety risk.
Design and
Turnaround /
Shutdown

Engineering

Convergence

Collaboration
Operational
Intelligence

Health and Safety

Maintenance
Operations

Standardization

Improved operational intelligence enables better management of assets throughout their

complete lifecycles.
2010 IBM Corporation

Angola Launch Event

Smarter asset management: Maximizing asset availability and

reliability to increase production rates while reducing cost and
safety risk.

How will you do it?

Get the most out of your assets through more effective planning, work management and information integration. Achieve
greater cost and regulatory management while performing condition-based monitoring and working to integrate your operations.

Steps to take:
Improve

Initiate

Ensure

Optimize

operational intelligence
through a single,
integrated approach.

manual or automated
processes from asset
event alerts.

regulatory compliance
by integrating
processes.

Asset lifecycle using

advanced tools,
dashboards and
programming.

The benefits:
Improved asset utilization
Reduction in planned and unplanned shutdowns
Lower operations and maintenance costs

Improved regulatory compliance

Reduced environment and
safety risks

2010 IBM Corporation

Angola Launch Event

Smarter asset management: IBM is partnering with oil and gas

companies around the world to implement innovative solutions.

An international oil company integrated asset

management solution that keeps production levels high and
downtime low resulting in greater efficiency, lower costs,
improved safety and overall improved oil recovery rates.

An international oil company implemented a first-of-akind emergency solution that translates real-time RFID
data into actionable, visual information for new plant
safety procedures.

2010 IBM Corporation

Angola Launch Event

Smarter asset management: These solutions are powered by

our unique expertise spanning all facets of the upstream
petroleum sector.

Enterprise asset management

for oil and gas:
Improves safety, availability and
compliance of physical assets
through a holistic, integrated
approach that drives increased
operational intelligence through
common processes across the
organizationbut tailored to
business segments.

Turnaround optimization:
Leverages research analytics combined
with asset intelligence and supply chain
coordination to optimize planned and
unplanned shutdowns.

Health, safety, security

and environment solutions:
Use digital video surveillance
for asset risk management,
RFID technology for asset
location tracking and
implementation of environmental
management capabilities.

2010 IBM Corporation

Angola Launch Event

Smart Integrated Operations Value Realization

2010 IBM Corporation

Angola Launch Event

Statoil Example - TAIL Integrated Operations

A research project with focus on the Industries
Challenges

Condition
and
Performance
monitoring

Turnarounds
and
shutdowns

Common
integration
architecture

Concepts for safe

and cost-effective
operations
of facilities

Wireless
communication

Robotics
technology

Mobile ICT
infrastructure

Collaborative
visualization

2010 IBM Corporation

Angola Launch Event

Smart Integrated Operations Condition-based Monitoring Overview

Condition-based Monitoring requires 4 functions all of which have analytics at
their core:
-

Monitoring
Prediction and
Diagnosis
Maintenance planning and scheduling

Monitoring (mainly meant for alerting)

-

Model-based
Data driven

Prediction (A predictive model of expected behavior)

-

Data mining and machine learning to pro-actively identify the onset of aberrant behavior

Diagnosis
-

Root cause analysis

Rule based systems and production systems for diagnostic reasoning
Sequential decision making

Maintenance planning and scheduling:

-

Long term preventative planning

Scheduling jobs (preventative and repair)

Slide 84

2010 IBM Corporation

Angola Launch Event

How Does Event Analytics Work?

raw data

signal
cleansing &
transformation

Detect
temporal
clusters

Quantify
deviation

Combination
function

state-machine
reporting

T
control

2010 IBM Corporation

Angola Launch Event

Event Detection/Prediction Example

2010 IBM Corporation

Angola Launch Event

Event Detection/Prediction Example Separator States

- HIDDEN MARKOV MODEL TO DISCOVER STATES OF THE MACHINARY
- CORRELATION MODEL FOR EACH STATE SHOWING INTERACTIONS
0.6531

0.0399

0.0318
0.2099
0.1369
0.019
0.9492

Slide 87

0.9576

0.0085

2010 IBM Corporation

Angola Launch Event

Predictive Modeling and Maintenance Planning

Turnaround Optimization
ADAPTIVELY LEARN
PARAMETERS

R3

Temp
r(t)

R0
a(t)

OK

L(t)

D1

m(t)

R1
Repairs

Environmental Factors

4 states, characterized by a penalty on

production
OK (as good as new)
PARAMETRIC MODEL
Deteriorated
ADAPTATION
Failed
Temporarily repaired

DOWNTIME

R2

P*(t)

PLANNED DOWNTIME
UNEXPECTED DOWNTIME
AVAILABILITY

Slide 88

MAINTENANCE PERIOD
2010 IBM Corporation

The OpenO&M Initiative

Angola Launch Event

Brings People Processes and Technology Together

Enterprise Business Systems

Enterprise Resource Planning (ERP)

Maintenance

Operations

OpenO&M

FOUNDATION

Physical Asset Control

Real-time Systems

2010 IBM Corporation

Angola Launch Event

Workforce collaboration: Setting the context.

1 billion

55 years old

1 terabyte

Twitter processes 1 billion

messages per month; How
can this type of technology
be used to connect Oil and
Gas workers?

The average retirement

age for the industry is 55
years old; The average
employee age for a major
operator or service
company is 48 years old.

An oil field can generate

one terabyte, or 200
DVDs worth, of data
daily. An oil and gas
engineer can spend
up to 60% of their
time mining this data.

Sources: TK
2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: Facilitating teaming among

highly skilled experts.
Regional
Support

Field Office

Local Office

Field Office

Field Office

Data and Expertise

2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: Facilitating teaming among

highly skilled experts.
Regional
Support

Global
Support

General Remote
Support Center

Data and Expertise

2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: Facilitating teaming among

highly skilled experts.
Regional
Support

Global
Support

Networked
Organization

Global
Network

Data and Expertise

2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: Facilitating teaming among

highly skilled experts.

How will you do it?

Improve work efficiency and reduce safety and reliability issues by connecting experts all over the world and providing
them with the tools and capabilities they need to collaborate.

Steps to take:
Implement
global standard
processes and embed
collaboration
within them.

Establish

Incent

Apply

Team

a method to
track skills
competencies
and find expertise.

employees to share
their expertise.

technology to
facilitate the
involvement of
remote experts.

senior and junior

resources to
speed the flow
of expertise.

The benefits:
Reduced operational costs
Improved operational efficiency

Improved knowledge transfer

Reduced environmental and
safety risks

2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: IBM is partnering with

oil and gas companies around the world to implement
innovative solutions.

An international oil company created an integrated

collaborative environment as part of their intelligent oilfiled
initiative enabling workers to work as one team irrespective
of location to share real-time data streamed from the field
and using collaboration tools, such as video links, with
remote team members. The result is optimized core
processes, faster decisions, reduced cost and improved
performance.

95
2010 IBM Corporation

Angola Launch Event

Smarter workforce collaboration: These solutions are powered

by our unique expertise spanning all facets of the upstream
petroleum sector.

Process and organizational

design and change management:
Helps organizations develop
and aligned new collaboration
models and the processes
and technologies required to
enable the networked organization.

Workforce collaboration solutions:

Integrate processes and technologies
such as field force automation, webbased tools, real-time messaging,
conferencing and networking for realtime decision making.

Learning and knowledge sharing:

Leverages processes and tools to
support the creation, dissemination
and utilization of knowledge when
and where it is needed in the field,
at the production platform and in
the refining operations.

2010 IBM Corporation

Angola Launch Event

Why IBM?
Only IBM can provide you with the unique combination of tools and expertise
you need, across all elements of business, technology and research, to build
an integrated approach to managing your upstream businessesspeeding time
to production and increasing recovery factors while reducing costs and risks to
people as well as the environment.

2010 IBM Corporation

Angola Launch Event

The IBM Chemicals and Petroleum Integrated Information

Framework underpins our industry business solutions
The framework provides:
The framework combines market-leading technology
capabilities with pre-built solution accelerators, best
practices, and implementation patterns
IBM Chemical and Petroleum industry
Solutions
Business partner solutions
IBM Chemical and Petroleum Integrated Information
Framework
Consistent C&P
Representation
Standardize processes
and
Performance Measures

Industry Standards
Support
Visualization in Context of
Equipment Operations

An approach to link technology

directly with the business goals it
supports
Solution accelerators to speed
deployment of new capabilities
Re-usable implementation
patterns to lower risk and
decrease time-to-value
Support for open/industry
standards
Choice of business applications
and services from IBM business
partners

The IBM C&P Integrated Information Framework creates a more flexible

foundation for increased growth and efficiency
2010 IBM Corporation

Angola Launch Event

IBMs Chemicals and Petroleum Integrated Information Framework

enables organizations to start with any solution and build upon it over
time to achieve a simplified, strategic infrastructure.

Choose a project
and implement it
to achieve
immediate ROI.

Build on the value

of previous projects,
reusing assets and
implementation patterns.

Achieve a simplified,
strategic infrastructure.

2010 IBM Corporation

Angola Launch Event

Oil and gas companies achieve significant benefits by deploying

solutions on an integrated information Framework.

Improved productivity from real-time visibility of measurements in the context

of equipment.

Greater cost control based on performance comparisons across multiple assets.

Reduced planned and unplanned shutdowns achieved through the use of
enterprise-wide, event-based information.

Faster decision making with enterprise-wide access to real-time process

performance relative to KPIs.
Agility to incrementally expand across additional assets and processes.

2010 IBM Corporation

Angola Launch Event

IBMs Smarter Oil and Gas Solutions Overall Approach

INSTRUMENTED

INTERCONNECTED

INTELLIGENT

Ability to measure, sense and monitor the condition of

almost everything.

People, systems and objects can communicate and

interact with each other in entirely new ways.

Respond to changes quickly and accurately, and get better

results by predicting and optimizing for future events.

Smart Oil and Gas Solutions

Comprehensive set of capabilities to enable smarter decisions faster

Visibility

Collaboration

Analytics

Optimization

Smart Integrated Operations Enablement

One open channel to all data required to operate assets in real time

Semantic Model

Standard-Based

Standardized Metrics

Event Management

2010 IBM Corporation

IBMs Smarter Solutions for Oil and Gas

Angola Launch Event

Cross
Industry

Enterprise Resource Planning

Level
4*

- Upstream, Downstream (Petroleum, Oil Sands, Natural Gas, Chemicals) Templates

Smart Health, Safety, Security and Environment

- Supply Chain Sustainability Management, Compliance Management, Environment Management, Safety and Security, Audit and Inspections, Risk Compliance Monitor

Level
3*

Smart Operations Upstream Supply Chain Optimization

- Supplies (fluids, diesel, chemicals, repair parts, food and water) Planning & Scheduling

Smart Operations Downstream Supply Chain Optimization

- Blending Optimization, Refinery Scheduling, Pipeline Scheduling

- Workforce Scheduling, Emergency Scheduling

- Chemical Plant Scheduling, Tank Truck Scheduling, Workforce Scheduling

Smart Exploration
- Large Scale Basin Modeling,
- Seismic Processing / Digitalization
- Rendering & Visualization

Smart Performance Monitoring and Remote Operations

Smart Retail Solutions

- Well Monitoring, - Production Target Monitoring

- KPI Tracking, Virtual Worlds Collaboration

- Service Station Back Office

- Fuel & Convenience Store Solutions

Smart Asset Management

- Condition-Based Maintenance: Early Event Warning, Static, Rotating and Electrical Equipment Monitoring, MRO Forecasting, MRO Inventory Planning, MRO Procurement and Logistics
- Turnaround Optimization, Maintenance Planning and Scheduling, Corrosion Monitoring, Field Asset Tracking
- Greenfield Automatic Model Creation, Engineering Design to Commissioning Management

Advanced
Analytics
- Customer
Analytics
(social network
analysis, pricing
optimization)
- Financial
Analytics
(financial
integrated risk
management)
- Operations
Analytics
(workforce
analytics, supply
chain risk
management)

Smart Integrated Operations Enablement

Reference Semantic Models, Adaptors, Data Integrity, Visualization, Event Management, Rule Processing

- Core Analytics
(data
governance,
master data
management,
enterprise
content
management)

Production Execution
Platform Production Management, Refinery Production Management, Petrochemical Production Management, Government Specific Solutions

Facility Monitoring Systems (FMS), Digital Control Systems (DCS), Historians

Levels
0, 1, 2*

Smart Water
Smart
Building

Sensors, Actuators and Networks

Upstream

Strategy &
Transformation
- Green Strategy
- Merge &
Acquisitions
- Workforce &
Talent Solutions

Downstream
* ISA-95
Level Definition

Exploration

Production

Supporting
Resources

Crude
Supply

Crude
Acquisition

Refinery

Primary
Distribution

Terminal/
Depot

Secondary
Distribution

Retail
Station

2010 IBM Corporation

Angola Launch Event

Actions to take
Prioritize near-term benefit, high-value projects.
Business focus areas:
Exploration
Production
Asset Management

Workforce Collaboration
Apply analytics to support performance management.
Integrate analytics results into your business processes.

2010 IBM Corporation

Angola Launch Event

Unique value realized

Get started: Achieve a smarter exploration and production enterprise.

Establish
foundational
elements to enhance
exploration and
improve production.

Manage
Data

Processing times
Drilling costs
Operation efficiency

Integrate exploration
and production
capabilities across
standalone sites.

Analyze
Patterns

Decision making
Collaboration
Asset/maintenance costs
Health/safety risk

Optimize exploration and

production operations
across entire oil fields/
sites and ecosystem.

Optimize
Outcomes
Measures of Value

Recovery rates
Production costs

Use of smarter planet principles

2010 IBM Corporation

Angola Launch Event

IBM Research - intellectual capital and tools to solve complex

problems in a diversity of new emerging areas to further help
our clients to innovate and achieve competitive advantage
IBM Research

From the labs.

The worlds largest private

research institution
$6B annual R&D budget
8 research labs around the
world
~ 3,000 researchers
5 Nobel Prize winners
16 consecutive years of IBM
patent leadership
Skills in mathematics,
computer science, physics,
operations research and many
more

IBM Research Services

Advanced research
skills and technology
Deep industry
knowledge and
consulting expertise
Innovative approaches
to problem solving
Breakthrough thinking
in business process
research
Rich assets
Algorithms
Models and processes
Software and tools

to your
organization

2010 IBM Corporation

Angola Launch Event

IBM Research Laboratories

Zurich

Watson

Almaden

Beijing

Haifa

Tokyo

Austin
India

Brazil

IBM Research Lab

IBM announces 9th

Research lab in Brazil

Announced June 7th

2010 IBM Corporation

Angola Launch Event

IBM Research - Brazil

Mission: To be known for our
science and technology and vital
to IBM, IBM Brazil, our clients in Almaden Watson
the region, and globally
Austin
Leadership team in place and growing team
World class researchers with broad experience
and recognition
Excellent new Researchers

Strategic Focus Areas

Smarter natural resource discovery and
logistics
Smarter devices leveraging IBM semiconductor
technology
Smarter human systems focused on large
scale events
Service Systems

Zurich

Beijing

Haifa

Tokyo
India

Rio deJaneiro

Brasil
Sao Paulo

First Research lab in Southern Hemisphere

First Research lab in 12 years

Additional Focus Areas

Provide differentiation for customer engagements
in Brazil, Latin America, and West Africa
Focal point for leveraging world-wide Research
technologies and researchers

IBM @ Tutoia Street

So Paulo

IBM @ Avenue Pasteur

Rio de Janeiro

Locations
2010 IBM Corporation

Angola Launch Event

Smart Natural Resources Area

Area Leader: Ulisses Mello

Mission: To research and develop technologies for smarter natural resource

discovery, exploration and logistics, and addressing the sustainability and safety of
the resources industry. To extend IBMs collaboration with universities, government
organizations, and companies in Brazil and across Latin America.

Goal: To create the largest IBM C&P Research group in the world and become a
renowned leading group in Natural Resources Management
Computational Geosciences: Large-Scale Basin Modeling, Inversion and Data
Assimilation, Seismic Imaging, Highly Scalable Reservoir Simulation
Integrated Operations & Logistics: Streaming Computing Applied to Smart
Operations, Condition-Based Maintenance, Numerical Optimization Applied to
Smart, Integrated Operations, Offshore Logistics Optimization, Extending the
Integrated Operations Paradigm, Resource Constrained Project Scheduling
GEO
Optimization
Biofuels: GIS-based analytics and logistics.
GEO = Geosciences
AM = Applied Math
108

AM

CS+SYS

CS = Computational Sciences + Systems

2010 IBM Corporation

Angola Launch Event

Key Elements of IBM Collaborative Partnerships

Approach to find right:
location and partners
research areas
business models

Strategic
Research
Topics

Align (overlap) to long term research strategy

Access and hiring local talent

Key assets and resources

Competitive and available
Each party to get leverage of their
investment
IBM investment is a function of
strategic alignment
Open
Collaboration

IBM
Research
Value

Expand
Global
Reach

Strategic location to IBM, Business Units

Technical infrastructure and readiness
Matching research theme and location

FOAK, Joint Development, Collabs, etc

2010 IBM Corporation

Angola Launch Event

Smarter Oil and Gas: A Look into the Future

Advanced water management

Carbon capture and sequestration
Tracking of long-term environmental
impacts
Stream computing

2010 IBM Corporation

Angola Launch Event

2010 IBM Corporation

Angola Launch Event

IBM Smarter Solutions for Oil: enabling smarter decisions faster

Smarter Way

Typical Way
Engineers gather data,
then analyze

Engineers in each plant monitor

equipment

Production manages complex events on

their own external help is by
appointment
Reactive Maintenance

Real-Time Visibility

Engineers analyze, then act

Increase productivity by reducing data gathering from 75% of workload* to 0% of

workload

Effective Collaboration
Improve productivity of engineers and operations staff in the plant

For complex events, reduce event resolution cycle time by 75 90% *

Predictive Analytics
Reduce maintenance costs by 20%* by slashing emergency
maintenance facilitated by predictive systems

Equipment monitors equipment and

remote engineers are leveraged

Production has help in real time,

with experts

Proactive
Maintenance

Planned Operations

Reactive Operations
Increase throughput via better use of models to determine set points before operating
conditions change

Operators conservatively maintain

steady operations

Continuous Optimization
Improve process unit economics at both local and global level

Operators are enabled to achieve

economic and operational optimum

* IBM industry insights

2010 IBM Corporation

Angola Launch Event

Analytics / Intelligence Landscape

Stochastic Optimization

INTELLIGENT

How can we achieve the best outcome

including the effects of variability?

Prescriptive
Optimization

How can we achieve the best outcome?

Predictive modeling

What will happen next if ?

Simulation

What could happen ?

Competitive Advantage

Predictive
Forecasting

What if these trends continue?

Alerts

What actions are needed?

Query/drill down

What exactly is the problem?

Ad hoc reporting

How many, how often, where?

Standard Reporting

What happened?

Descriptive

Degree of Complexity
Based on: Competing on Analytics, Davenport and Harris, 2007
113

2010 IBM Corporation

Angola Launch Event

Examples of R&D activities that are creating technologies to enable

the Smarter Oil & Gas vision

Two major domains:

-

Smart Exploration and Production using Computational Geosciences

and High Performance Computing
HCP and Reverse Time Migration (with Repsol)
Large-scale basin Modeling (Eni & Petrobras)
4D Seismic history matching (with Shell)

Smart Integrated Operations / Smart Oil Fields

Integration infrastructure - IIF (Statoil)
Condition-based Maintenance
Turnaround optimization (with Statoil)

2010 IBM Corporation

Angola Launch Event

Examples of R&D activities that are creating technologies to enable

the Smarter Oil & Gas vision

Two major domains:

-

Smart Exploration and Production using Computational Geosciences

and High Performance Computing
Large-scale basin Modeling (Eni & Petrobras)
HCP and Reverse Time Migration (with Repsol)
4D Seismic history matching (with Shell)

Smart Integrated Operations / Smart Oil Fields

Integration infrastructure - IIF (Statoil)
Condition-based Maintenance
Turnaround optimization (with Statoil)

2010 IBM Corporation

THE BIG DEAL

ABOUT BIG DATA IN
OIL & GAS
BERT BEALS
CHIEF TECHNOLOGIST ENERGY INDUSTRIES

116

Big Data Potential

Defining Big Data and Analytics

Big Data and analytics technologies describe a new generation of
technologies and architectures designed to economically extract value
from very large volumes of a wide variety of data (structured and
unstructured) by enabling high-velocity capture, discovery, and/or
analysis.

IDC Energy Insights Visit us at IDC-ei.com

117

SOURCES OF BIG DATA GROWTH

THE DATA MULTIPLIER EFFECT
MACHINE
SENSOR DATA, COMPLEX DATA

VIDEO
RECORDING

HUMAN
SENSORS

DOCUMENTS

EMAIL
SATELLITE
IMAGING
VARIETY
VOLUME
VELOCITY

M2M LOG
FILES

ENTERPRISE CONTENT,
EXTERNAL SOURCES

BUSINESS
PROCESS
WEB LOGS
VARIETY
VOLUME

SOCIAL

DATABASE DATA

VOLUME

OLTP

1X

10X

BIOINFORMATICS

100X

More Data with More Complex Relationshipsin Real Time and At Scale
To manage, govern and analyze
118

BIG DATA THE PROMISE

SORTING THE REALITY FROM THE HYPE

Big Data application stack is complex

Data is highly fragmented
New skill sets
Difficult to know where to start

MPP

Hadoop

Search

Model

Database

In Memory DB

Text

NAS
ETL

Connectors
Clickstream

Machine Data

Video

Audio

Business Process

Web Logs

The Reality

Structured HTML
Semi-structured
Unstructured

Turning data flood into transformative

insight
Exploration without preconceived
notions

Meta Data

The Hype

Social Media

Federation

Virtualization

NoSQL

Analytics

Stream Processing

Visualization

Dark Data

Machine Learning

Real Time

How does Big Data help my Business?

How much will it cost?
Whats the ROI? How risky is it? When will I see results?
119

BIG DATA DRIVING BIG INNOVATION TODAY

Hitachi
Transportation:
Bullet Trains

Track/train sensors
Keep trains on schedule
Proactive maintenance

Hitachi Power:
Power Stations

Telemetry from seismic sensors

Time series data

Hitachi
Construction:
Excavators

Operational data from sensors

Insight for fleet managers

Hitachi, Ltd.:
Tokyo Stock
Exchange

High-speed index service

1/100th faster

#1 INDUSTRY MEGA DRIVER

SIMPLY STATED: WE NEED MORE ENERGY
INCREASE PRODUCTION AND KNOWN ENERGY RESERVES

Dramatic increase in demand

from emerging economies
(non-OECD)

Discover new reserves now:

75% of todays oil was
discovered before 1980

ExxonMobil 2012
BP 2011

121

ExxonMobil 2012

Sources: 2012 The Outlook for Energy: A View to 2040, ExxonMobil 2012; and BP Energy Outlook 2030, BP 2011

OIL&GAS REPRESENT THE MAJORITY OF

THE ENERGY INDUSTRY

60% of Global Energy demand fulfilled by Oil&Gas

Natural Gas is the fastest growing fuel source

BP 2011

ExxonMobil 2012

122

Sources: 2012 The Outlook for Energy: A View to 2040, ExxonMobil 2012; and BP Energy Outlook 2030, BP 2011

Big Data Potential

Volume, Velocity and Variety

More Volume

Exploration: WAZ and

IsoMetrix

More Velocity

Drilling: Nuclear,
electromagnetic, acoustic

Real-time data from

SCADA, drill heads, flow
sensors, or condition
sensors

Production: Optical
sensors

Stream vs. batch

processing

Potential Value

Help guide a fracking

process

When consequences of
failure are great

Show the way to

enhancing production

When a delay in processing

data may mean missing a
bid for an oilfield

IDC Energy Insights Visit us at IDC-ei.com

More Variety
Structured: Time series,
relational
Unstructured: CAD
drawings, specifications,
seismic, well log or daily
drilling reports
Semi-structured:
Processed data

Complexity involving many

engineering disciplines

Potential Value
Clearer view of potential
resources

Potential Value
Access data previously
inaccessible due to
multiple access patterns
or unstructured nature of
data

123

BIG DATA IN ACTION IN OIL&GAS

Big Data Analysis = Value
Business Decisions
E&P Investments
Inventory locations
Production planning
Safety

Seismic data
Bore hole sensors
Environmental sensors
Weather data
Production utilization
Storage capacities

Exploration

Spot pricing (trading)

Geo-technical applications

Transportation

Production

Inventory levels

Resource planning

Demand & forecast

Refining
Business intelligence

Distribution
Databases

Marketing and retail

Office applications

Location data

VELOCITY INGEST MORE DATA FASTER

Growing data
> 300 MB / Km2 early 90s
> 25 GB / km2 in 2006
> Growing to PBs / km2

Yesterday: 20 25,000 sensors, 500MB/s 2GB/s, 50

200,000 shots, 50 200TB data
Now: Full 3D acquisition, 8GB/s 20GB/s, 250TB 1 PB
Tomorrow: 50GB/s
Sources, Grid Computing Ahmar Abbas:
1 Luigi Salvador, High Performance Computing for the Oil and Gas Industry
2 ML Geovision www.alkorinternational.com

VOLUME - INSATIABLE APPETITE FOR INFORMATION

Technology as a
competitive weapon
Pushing technology
boundaries

Source: Henri Calandra, John Etgen,

Scott Morton Rice University

IT STARTS WITH THE DATA,

THEN IT NEEDS TO BE ANALYZED
TO EXTRACT INFORMATION

Never resting, methods

ready for anticipated
technology advances

Big Data in use

A different scale, PB file
systems as caches
Live in-feed from sensors
from sites world wide

Realtime drilling
operation center, a fully
integrated part of the
Valhall drilling operations
in Norway.

VARIETY: FIND AND PRODUCE FASTER,

SAFER, AND MORE EFFICIENTLY
Increase Reserves - Capacity scaling, changing workloads

Data
Acquisition

Data
Management

Seismic
Processing

Visual
Interpretation

Modeling Petrophysical
Automation
Analysis

Property
Modeling

Simulation

Upstream Oil&Gas:

Many interconnected, increasingly complex

and rapidly changing workflows
Exponential growth in the volume of data

Computational demands increasing by orders of magnitude

Manage complexity and increase efficiency
Facilitate collaborative computing and secure access to data
Increase efficiency and accelerate the TOTAL workflow

Big Data Potential

Data Access Challenges

Data locked in applications on the desktop and
cannot be shared efficiently
Legacy data that is in proprietary formats
Storage I/O requirements can still be a
challenge. There may not be enough capacity or
upload bandwidth.
The workloads may be random or sequential or
both in an unpredictable pattern.

IDC Energy Insights Visit us at IDC-ei.com

128

UNIFIED STORAGE FOR UPSTREAM OIL AND

GAS ORGANIZATIONS
Reduce Cost - Reduced complexity, higher efficiency

Accelerated exploration with optimized file storage

Highest per-node IOPs for unpredictable I/O
Ideal for mixed workflows requiring performance for
throughput-oriented and also for random data flows
Easy scalability and high availability
CIFS, NFS, iSCSI, Lustre, Hadoop

One storage platform for E&P and

the entire oil and gas enterprise

Enterprise

Open file system standards:

Unified

Single architecture for file and block

Comprehensive data management
across technologies
No compromise of performance versus control

Structured

Technical

Unstructured

OBRIGADO

Big Data Analytics in Oil & Gas

DataWeek Adam Farris (Drillinginfo), Atanu Basu (AYATA)
September 27, 2012

131

W o r l d s L a r g e s t I n d u s t r y S e c t o r

Oil & Gas (#1)

Total
Revenue =
$29.5 trillion

$5+ Trillion
8 out of Top 10

132

US Consumption, Production, and Imports

133

E n e r g y C o m p a n i e s A r e H e r e To S t a y

134

GARTNER Analytic Ascendency Model

135

Prescriptive Analytics Questions It Answers

Effects
Decisions
Predictions
What will happen?
When will it happen?
Why will it happen?

How will these decisions

impact everything else?

How do we benefit from

these predictions?

Predictive Analytics

Prescriptive Analytics

136

To p 3 P r i o r i t i e s i n O i l & G a s

Find Oil & Gas

Produce Oil & Gas

Reduce Environmental Impact

137

Find Oil & Gas

138

Produce Oil & Gas

139

Reduce Environmental Impact

140

Thank you!

Adam Farris
Senior Vice President
Drillinginfo
adam.farris@drillinginfo.com
512-550-6388

Atanu Basu
CEO & President
AYATA
atanu.basu@ayata.com
512-736-6781

141

THANK YOU!

Your Logo