Automation in the Oil

and Gas Industry:

Past, Present, Future
Larry Irving
VP, Oil and Gas Industry
 Agenda
 “Automation” of the past
 Current capabilities
 Challenges in the industry for tomorrow
 Promise of tomorrow; Monetizing proven
reserves:
– What does the “control loop” of the future look like?
– Barriers to achieving our goal
– Who drives the business?
 Challenge for the next generation of “Automation
Experts”

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 Our Three Roughnecks….

PAST PRESENT FUTURE

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Three Control Levels of Production
Optimization

LIFE OF FIELD PLANNING

History matching
STORAGE Well planning

ANALYSIS
Flow assurance
VALIDATION Condition Monitoring
Well optimization
Abnormal Situation
Prevention

CONTROL
MEASUREMENT Closed loop
APC/MPC
Loop tuning

DECISION
PROCESS ACTUATION SUPPORT
STRATEGY
 Automation Control Loop
of the Past
 Gathering information
 Interpretation

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 Final Control of the Past…

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 The “Control Loops” for Life of Field
Production Optimization: Past Practices
LIFE OF FIELD PLANNING
History matching
STORAGE Years Well planning

ANALYSIS
Flow assurance
VALIDATION Condition Monitoring
Well optimization
Months Abnormal Situation
Prevention
Value

CONTROL
MEASUREMENT Closed loop
APC/MPC
Loop tuning

Weeks

DECISION
PROCESS ACTUATION SUPPORT
STRATEGY

Time
 Automation Control of Today…
 It’s all about Data and
Communication!
– AGA Flow Calculations
– Historical Databases
– Event and Alarm Logs
– Data Security
– Embedded Communications
– Spontaneous Report-by-
Exception (SRBX)
– Host Communication
– Pass-Through Communication
– Closed-loop PID Control
– Logic and Sequencing Control

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 Today, We Can Instrument the Units…But
What do We do with the DATA?

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 Data and Alarm Overload!

I whished I knew
what was really
Important?

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 The “Control Loops” for Life of Field
Production Optimization: Current Practices
LIFE OF FIELD PLANNING
History matching
STORAGE Months/Years Well planning

ANALYSIS
Flow assurance
VALIDATION Condition Monitoring
Well optimization
Days/Weeks Abnormal Situation
Prevention
Value

CONTROL
MEASUREMENT Closed loop
APC/MPC
Loop tuning

Seconds/Minutes

DECISION
PROCESS ACTUATION SUPPORT
STRATEGY

Time
 Today’s Paradigm: Headwinds for the
Oil and Gas Industry
Rapid More
Depletion Complex
Rates Projects Fewer
Retiring
Specialists
Workforce

More Large CAPEX

Technology Project Costs

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 Growth Is Driving Investments
In Emerging Markets

Reach New
90 Customers
Which of the
Service following business
Existing objectives are
60 Customers
driving your
Reduce Increase Accessing decision to do
Costs Capacity Highly business in Brazil,
30 Skilled Russia,
Talent India or China?

Source:
PricewaterhouseCoopers’ 9th Annual Global CEO Survey.
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 Mature Markets Need Investment Too
• Aging infrastructure
• Increased regulatory scrutiny
• Lower tolerance for risk
• Energy management

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 Globally, Business Is More Complex
“The world’s private and public
sector leaders believe that a rapid
escalation of ‘complexity’ is the
biggest challenge confronting them”
Samuel J. Palmisano
Chairman, President and Chief Executive
Officer IBM Corporation
…and CEOs are unprepared
to deal with it*

*Source: April 2010, IBM CEO Study

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 Population Will Increase…
But The Workforce Will Shrink

2005
to
2050

Source: United Nations (UN)

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 The Knowledge Gap –
Who will Replace the Retiring Staff…?

“The offshore workforce shows significant gaps in the

experienced, mid-career range.
To some extent this is a symptom of our own success,
as personnel developed in the UK are much in
demand internationally”

Source: 2012 UKCS Workforce Demographics Report, Oil & Gas UK

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 “A Dear Child Has Many Names”…

Integrated Operations

i-Value

i-Field
tm
fieldofthefuture

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 ….but the Objectives are the Same!

 Improve Decision Making – Accurate real-time

field well data to the right people
 Improve Production and Maintenance
Planning – Accurate real time field well data will help
operations and maintenance to determine accurately
which wells to shut-in, put on work-over scheduling, etc.
 Production Optimization – Real-time field well
data will be used to optimize production (adjust gas lift
flows, water injection rates, ESP rates, etc.)
 Improve Safety – Asset information from diagnostics
will improve safety as troubleshooting tasks can be
done remotely; operations and maintenance personnel
know where to go and with what tools.
 Improve Availability – Accurate real time field well
data will tell operations the shut-in status of the wells
and which wells that should be in production. Quicker
actions can be made to reduce downtime.

Deliver information! Not

data
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 Enabling the Most Experienced Staff to
Remotely Serve Multiple Oilfield Locations
New trainees watching live
Morning site-worker meeting being conducted
from onshore via video, others watch and by
default are aware. Communication is key.
Continuous simulation &
optimization

Safety

Junior Senior
Operators Operators

Site crew being instructed how

to make repair and are guided by
Live video feeds on site. Control service specialist, via personal
system has sent an alert video feed and area video feed
indicating pump cavitation, or
seals leaking. Video feed
confirms pump cavitation. Safe
20 to dispatch
Emerson Confidential site personnel
 Delivering Better Results Through
Improvement in Operations
Reduce
cost per
BOE

More Knowledge
efficient Knowledge
capture &
drilling capture &
transfer
transfer

Safe
operation

Reduce Production
unplanned optimization
shutdowns

Reservoir
optimization

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The “Control Loops” for Life of Field
Production Optimization: Future

Business Opportunity
Intelligent Enterprise

LIFE OF PLANNING
FIELD History matching
STORAGE Days Well planning

ANALYSIS
Flow assurance
VALIDATION Condition Monitoring
Well optimization
Minutes Abnormal Situation
Prevention
Intelligent Wellhead

CONTROL
MEASUREMENT
Closed loop
APC/MPC
Loop tuning
Seconds

DECISION
PROCESS ACTUATION STRATEGY
SUPPORT
 A View of the Intelligent Field
Business Processes
Intelligent Enterprise

Intelligent Enterprise
Integrated Optimized Reliable
Operations Operations Operations

Reservoir Maintenance Oil & Gas Production

ERP Integration Well Advisory Asset Equipment


Management Reconciliation
Management Allocation Performance Setpoint Optimization Tracking


Mass Balance

Production Artificial Lift Well Test Field Level EOR

Production Remote Asset
KPI Dashboard Planning Optimization Optimization Optimization Mobile Worker
Cost Acct /Collaboration Management
Scheduling

SCADA

Intelligent Wellhead

Intelligent Wellhead


Chemical Water
Well Control Artificial Lift Separator Well Test Injection Well Gas Treatment Storage Compressor
Injection Management

Field Instrumentation


Wireless RTU”s & Flow Vibration Flow Downhole Flow
Analyzers Control Valves Regulators On/off Valves Fire & Gas
Transmitters Computers Monitors Assurance gauges Measurement
 Intelligent Field: Optimized Operations
Delivers the Manufacturing Execution
Business Processes

Intelligent Enterprise
Integrated Optimized Reliable
Operations Operations Operations
ERP Reservoir Maintenance Oil & Gas Production
Well Advisory Asset Equipment
Integration Management Reconciliation
Management Allocation Performance Setpoint Optimization Tracking
Mass Balance

Field Level
Production Artificial Lift Well Test
Production KPI Remote EOR Mobile Asset
Planning Optimization Optimization
Cost Acct Dashboard /Collaboration Optimization Worker Management
Scheduling

SCADA Rich
Applications,
broaden
Intelligent Wellhead Apps Suite

Chemical Gas Water

Well Control Artificial Lift Separator Well Test Injection Well Storage Compressor

Artificial Lift Well Test Injection Treatment Management

Advisory Setpoint
 Generates “what If”  Manages the test
Field Instrumentation  Calculates the optimum
scenarios
Wireless
Analyzers
Control RTU”s & Flow separator scheduling
Vibration Flow
Regulators
Downhole setpoint of the field
Flow
On/off Valves Fire & Gas
Transmitters Valves Computers Monitors Assurance gauges Measurement

 Models the impact of  Produces well  Automates

Emerson the process
adding wells or new allocation calculations strength,
of setpoint change
tighter
choke settings  Manage wells by integration
exception
 Closed loop control
 Maximize the Performance of our
Financial Investment
 Who will run the
show?
– Traders, p&l owners
– Our challenge: connect
the process to the
business opportunity;
Deliver on a “Single
knob control” to
maximize the return of
an asset

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 Oh, no – Not the old
People-Process-Technology Story Again…

People

Process Technology

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 Challenge for You: Deliver Next
Generation of Process Automation
 Your skillset is uniquely qualified to help deliver
the next generation of automation:
– Wireless!
– Collaborative!
– Socially Interactive!
– Digitally Savvy!
– Fearless! Challenge the slow inertia of change

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 Remember… Change can be Good!

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 If I Could Do it all Over Again…

 Find a Mentor to help!

 Choose a career and job that you have passion
for…
 Think long term when you take your first roles;
larger organizations generally have better
development programs
 Do your research before an interview!
 You should be the interviewer, too!
 It not initially about the $$$$

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