The Digital Oil Field
Hype Cycle:
An Assessment of where the Oil &
Gas efforts are today
Baker Hughes Innovation Forum
Houston, TX
December 10, 2013
Agenda
• The Future of the Digital Oil Field
• The Digital Oil Field Hype Cycle
• Barriers to Adoption
–
–
–
–
The “Integration” Challenge
The “Innovation” Challenge
The “Complexity” Challenge
The “Data Foundation” Challenge
• How do you talk to a Digital Engineer? The
“Knowledge Exchange” Challenge
THE FUTURE OF THE DIGITAL OIL
FIELD
Observations
Resistance if Futile
• The trend of field automation, real-time systems and earth & reservoir
modeling suggests that the Digital Oil Field is a reality
• New engineers and earth scientists are entering the workforce with high
digital literacy (from lifelong experiences with consumer IT) and with some
training in programming
• More and more petroleum engineering and earth science “intellectual
property” comes in the shape of software
But, Houston we have a problem
• Most of the “innovation” comes from end users or consultants working on
project, the impact of central research groups are decreasing, most of the
execution & support details are left to local IT
• Significant gaps continue to surface (lack of reuse, fragile integration, poor
data foundation, lack of end-to-end system design)
THE EMERGING WORLD OF THE
DIGITAL ENGINEER
T-shaped expertise
A mix of technology/science, business and
management will ready future innovators for the
big challenges presented by a knowledge-driven
economy.
BROAD
Science
&
Technology
Business Models
&
Processes
SSME
People
&
Culture
D
E
E
P
10
"IT professionals will need to possess expertise in
multiple domains. Technical aptitude alone will no
longer be enough. IT professionals must prove
they can understand business realities – industry,
core processes, customer bases, regulatory
environment, culture and constraints. Versatility
will be crucial.“ – Gartner Group IT Professional
Outlook
THE DIGITAL OIL FIELD HYPE CYCLE
Technology Hype Cycle
Gartner 2010 Emerging Technologies Hype Cycle
The Digital Oil Field Hype Curve 2013
10
9
8
11
1
7
y6
6
12
13
5
3
4
2
1. Real-Time Drilling
2. Equipt. Health Monitoring
3. Heavy Oil
4. Artificial Lift
5. EOR
6. Production Surveillance
7. Reservoir Performance
8. IO Center
9. Big Data Analytics
10. Born Smart facilities
11. Logistics
12. Advanced Process Control
13. Remote Operations
Barriers to Adoption
THE INTEGRATION CHALLENGE
The “Integration” Challenge
•
•
•
•
•
From Field to Office
From Reservoir to Well to Facilities
Regional, between similar fields
Along the Supply Chain
Fully Integrated Operations
THE COMPLEXITY CHALLENGE
THE INNOVATION CHALLENGE
Types of Innovation
• “Do New Things”: Invention
• “Do Things Better or Faster”: Continuous
Improvement / Lean Sigma
• “Do Things Cheaper”: Frugal Innovation
• “Do Things Differently”: Transformation
Where does Innovation Happen?
• Invention in the Center (R&D department)
• Commercialization (productization) in the
center (economies of scale)
• Adoption at the edge (business units)
• Innovation could happen anywhere
– Lease Innovation (external consultants)
– Buy Innovation (from market suppliers)
– Problem Solvers are usually at the edge where the
problems are
THE DATA FOUNDATION
CHALLENGE
Information
Quality Train
Wrecks
THE KNOWLEDGE EXCHANGE
CHALLENGE
THE FUTURE BELONGS TO THE
DIGITAL ENGINEER
JIM CROMPTON
DIGITAL OILFIELD USA SUMMIT
DECEMBER 10, 2013