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Review of Marathon‟s Digital Oilfield Proof of Concept

Global Energy Forum - 3/25/2008 Marty Henderson Upstream IT Consultant

Marathon Statistics at a Glance
 Fortune 50 company  Established in 1887

 4th largest US based integrated oil & gas company
 5th largest US refiner  Market Cap: ~ $35 billion  2007 Revenues: $65 billon  2007 Net income: $4 billion

 2007 Net Production Sold: 351,000 BOE/D
 2006 Proved Reserves: 1.3 billion barrels  Employees: ~29,000

 Headquartered in Houston, Texas


Upstream Focus Areas 3 Production Exploration/exploitation .

Paul Park Detroit Canton Robinson Catlettsburg Coastal Terminal Inland Terminal Garyville Texas City A comprehensive.Refining. Marketing & Transportation Refinery Pipeline Terminal St. integrated focus 4 4 .

Canadian Oil Sands Edmonton Hardisty Regina Montreal Superior EPL Portland St Paul Casper Guernsey Stockbridge Sarnia Detroit Chicago Canton Robinson Patok a Cushing MPL Catlettsburg Flow Corsicana Midland Garyville St. James LOOP Pipeline Location Refinery Source: Marathon Texas City 5 .

greater credibility. more opportunities. timely information leads to better decisions and productivity gains”  “Better decisions lead to better results. speech to 2006 Digital Oil Conference 6 .Marathon‟s Vision  “Technology enhances partnering through collaboration”  “Quality. greater shareholder value” Steve Hinchman. Marathon’s Senior VP of World Wide Production.

and composite views in mash ups from many source systems. field. maps. 7 .What is Marathon‟s view of the Digital Oilfield?  One Place to go for Information – The Digital Oilfield provides one place where consumers of information (well. tabular. etc) can go to contextually access the information they need linked to the underlying data stores of record (applications). facilities. KPI's.  Intuitive presentation of Information – Information is combined and presented via graphs. – Training time reduced – users presented with just the data needed for decision support.  Role based Information – It provides the high level management reports on performance as well as the ability to drill into detail engineering or operating information though its intent is to not replace the more sophisticated application tools. platform.

Hyperion Digital Oilfield Historian – OSI-Pi 8 Date and Tracking Info Here .Types of Business Decisions Strategic Tactical Operation Options Expire Composite View Digital Oilfield Months Weeks Days Hours Delayed Decision Point Minutes CPM .

Project History (4 ½ months)  Vision originated from Oil/Gas Conference (GEF)  Utilize Marathon‟s Strategy toward SharePoint 2007  Leverage Microsoft‟s Oil/Gas Experience  Proof of Concept approach  Aberdeen selected for pilot  Kick off meeting on June 26th  Sponsor Review meeting Oct 11th in Aberdeen  Final Review Nov 13th in Houston 9 .

US Sponsor Aberdeen. UK iStore Developers Houston. US IT Project Manager Aberdeen.Geographically Distributed Project Team IT Program Manager Colorado. UK Corporate Decision Makers Houston. UK IT Project Sponsor Houston. UK 10 . US Production Clients Aberdeen. US Subsurface Clients Aberdeen.

Oracle. Verify this solution is applicable to several different user groups (roles).Project Deliverables      Demonstrate business value from better decision making with access to better information.  Demonstrate iStore technical expertise with SharePoint. Expose expert engineer data to a wider audience. PHD. etc. Confirm the concept of integrating information on the visualisation layer instead of the data layer. Validate Virtual Earth solution.   11 Date and Tracking Info Here .Net. . SQL Server. Improve efficiency by reducing the time to find engineering information. Validate Microsoft Office SharePoint Server 2007 (MOSS) is suitable for this solution for both local and remote users. connecting to a variety of local and remote data sources. Demonstrate iStore‟s oil industry data expertise by implementing a set of deliverables in a restricted timeframe.

Digital Oilfield – Production Tasks  Actual Production vs. Potentials – Currently difficult to plot due to data sources – Combined view of data from two sources – Morning report data in excel – must be manually downloaded. not “live”  Comparison between what our wells could produce and what they have produced  Monitor performance  Exposes data inconsistencies 12 .

West Brae Well Test Viewer – Allows problems with a well test to be readily identified – Ability to submit corrected well test start / end times through this tool would be a major step (workflow) 13 .Digital Oilfield – Production Tasks  Production .

14 .Digital Oilfield Overview –  Subsurface – Well Curve Viewer South Brae well A4  Option to split view and show well trajectory – again with cursor linked to allow for interactive data viewing.

However onshore has great benefit.  EBU is predominantly an offshore environment so would not see advantage of any „Virtual earth‟ style views.  Some issues with well trajectories and labels – from COMPASS. 15 .Digital Oilfield Overview –  Subsurface Virtual Earth Map  Important because it gives spatial understanding of where wells and fields are relative to one another.

Example Reference Architecture 16 .

Lessons Learned – POC Project Approach In a very short time this approach  Demonstrated capabilities of Information Store  Increased our understanding of DOF potential  Gave an insight into the final solution requirements – Seeing the POC deliverables helped us to clarify what we needed from such a tool  Highlighted the impact of such a tool on processes and procedures  POC exposed underlying problems quicker – transparency 17 .

UK IT Program Manager Colorado. US  Digital Oilfield is part of a larger strategy. UK Corporate Decision Makers Houston. IT Project Sponsor Houston. UK 18 Digital Oilfield .Keys to Success  A Project Sponsor willing to take risks.  IT Management support for adjusting priorities. UK IT Project Manager Aberdeen.  An Organization that embraces change.Lessons Learned . US Subsurface Clients Aberdeen.  Support from Corporate Client group – WWP Data Management Group.  Delivering on your promises. Production Clients Aberdeen. US Sponsor Aberdeen.  Ownership transferred to the business. US iStore Developers Houston.  A business project advocate who sees the vision.

so it doesn‟t become just another tool. Makes data available to a wider audience – more self service enabled  Demonstrated power of visualization of integrated data from multiple data sources – Our challenge there was working out how objects were named across sources and providing a translation table  Handles structured data sources – – Less successful with excel and access   Losses data task not completed Well history task not successful Exposed missing data    Validated that Microsoft Office SharePoint Server 2007 (MOSS) is appropriate for this solution.Lessons Learned – Tool  Web-based visualization tool – – makes information available to the decision maker “Anytime. Develop strategy for use of tool. Response time. 19 . education. Must provide the support model for pleasant user experience. Anyplace. and speed of making enhancements. Anywhere”. communication.

Production Optimisation Improvement  Digital Oilfield closely fits our needs for production optimization – POC helped us to understand what we needed  To realize the value. it needs to be implemented as part of a wider strategy Digital Oilfield Morning Report Losses Shift logs Forecasting PRS Update DCS Data Historian Well Knowledge Project 20 .

Realizing the Potential  The real value of this technology comes from integrating the data with workflows and providing composite views Documents Production Data Forecasts Morning Report Losses Well History 21 .Lessons Learned .

though there may be intentional exceptions to this. downstream and marketing).  Uses Technologies that can leverage sourcing model – technologies new IT folks will want to learn and support. 22 .  Uses framework that can be used across the enterprise (upstream.Lessons Learned – Digital Oilfield Report Strategy  Read data sources in Real Time from system of record.  High level simple reports for each relevant source. no data warehouse.  Composite reports can include mapping data with textural data.  Simple composite reports which integrate data from multiple sources.

 Complete European Production Operations in 2008 (UK.  Complete US locations in 2009. 23 .  In first half of 2008.Future Plans  Digital Oilfield Program started with 3 Project Managers for Marathon’s 3 Business Units.  Complete Central Africa Production Operations in 2008 (EG. pilot a US location and implement 2 US locations by end of 2008. and Ireland). Norway. LNG and Gabon).

Marathon‟s Digital Oilfield Proof of Concept Marty Henderson Global Energy Forum 2008 24 .