INFORMATION STANDARDS:
An Essential Enabler for
Integrated Operation of the
Digital Oilfield
and Successful Realization of
National Objectives
National Data Repository Conference #7
Cartagena, Colombia
18-20 September 2006
Alan Doniger
Chief Technology Officer
POSC
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POSC and NDR
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Long-term Partners
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Strong Support from the beginning and in the future
We make presentations about POSC industry standards
We publish conference announcements and material
Today’s Themes
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Update: POSC is changing!
Update: The standards are growing; we continue to
learn better ways of collaborating and delivering value!
Thoughtful Questions for You…
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How can you help POSC be more helpful?
How can POSC help you help each other
between conferences?
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About POSC
Petrotechnical Open Standards Consortium
 Not-for-profit membership corporation
 Founded 1990 by 5 energy companies
 50 + members
 Upstream E & P is our subject area
 www.posc.org is our Web site
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Members: Energy Co’s,
Service Co’s, Software Co’s
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BP
Chevron Corporation
ExxonMobil Corporation
Norsk Hydro a.s.
Oil & Natural Gas Corporation
Limited (ONGC)
Pioneer Natural Resources
USA, Inc.
Shell
Aspen Technology Inc.
Flare Solutions Ltd.
Halliburton
Landmark Graphics Corp.
Intelligent Agent Corporation
Interactive Network
Technologies, Inc. ( INT)
Knowledge Systems, Inc.
M & H Energy Services
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MetaCarta Inc.
Oil IT Journal
Oilware, Inc.
OpenSpirit Corporation
Paradigm Geophysical
Petris Technology, Inc.
Petrolink Services
Petrotechnical Data Systems
BV (PDS)
RF - Rogaland Research
Roxar
Satyam Computer Services
Ltd.
Schlumberger
SDC Geologix Ltd.
Seismic Micro-Technology, Inc.
(SMT)
United Petroservices Energy 4
Group
Members: Government Agencies,
Academics, Industry Groups
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American Geological Institute
(AGI)
British Geological Survey
Bureau of Land Management
(US BLM)
Common Data Access Limited
(CDA)
Department of Trade and
Industry (UK DTI)
Geoscience Australia
Geoshare Users' Group (GUG)
Institut Français du Pétrole
(IFP)
Internet Society
Minerals Management Service
(US MMS)
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Nancy School of Geology
(GOCAD Project)
Norwegian Petroleum
Directorate (NPD)
Object Management Group
OFS Portal
Open Geospatial Consortium
(OGC)
Petroleum Industry Data
Exchange (PIDX)
POSC/CAESAR Association
Romanian Society of
Geophysics (RSG)
The Open Group
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Areas of Focus
Global Unique Well Id Stds
Board
E&P Business Process
Reference Model
E&P Catalogue
Standards
Data Management SIG
Economics
Drilling SIG
Production Reservoir
Geology Engineering
Expl Petrophysics
Geology
Drilling
Engineering
Geophysics
Reference Data Standards
Drilling
Operations
Production SIG
Petroleum
Engineering
Production
Engineering
Completion &
Workover
eRegulatory SIG
Facilities
Engineering
Production
Operations
XML exchange standards, design guidelines, profiles
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The New POSC
POSC Board: Re-ignite upstream industrywide interest in standards definition and
adoption by
 Taking a fresh look at the organization
Capabilities
 Delivery model
 Positioning
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Including broader representation
More national energy companies
 More regulatory agencies
 More vertical service companies
 More horizontal IT organizations
 More professional services organizations
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The New POSC
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Focusing on value
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Re-inventing the organization
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Community effect
Information exchange efficiency
Value delivered by existing standards
Drive through to deep deployment
Same upstream E&P focus, but
New leadership
Clarified mission and vision
New name
New image
Launch November 8, 2006, Houston
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DATE/TIME:
November 8, 2006
3:00-5:00PM Summit
5:00-8:00PM
Reception
Join your E&P colleagues to hear the latest in thought leadership
for upstream oil and gas standards. Catch up with exciting
changes taking place at POSC: new leadership, new mission and
enhanced membership value.
PLACE:
Marriott West Loop
This exciting event will introduce our Energy Standards Resource
Centre, new collaborative services on offer and the development
of a global open standards user community.
Hotel Information:
marriottwestloop.com
1750 West Loop South
Houston, Texas 77027
A special hosted reception will follow immediately after the
Standards Summit from 5:00 – 8:00 PM, so Register Now!
•Meet the new leadership
•Connect with E&P colleagues
•Catch up on new offerings
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The Prize
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The upstream oil and gas industry
believes that increased standardization
can result in billions of dollars of additional
value in the area of production
optimization, alone, and knows that there
are additional billions to be saved in other
areas of the business.
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Example (from PRODML Work Group)
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Consider this in terms of production increase potential:
 Shell produces about 4 million bbls oil equivalent per
day
 With optimization, conservatively, Based on 5%
improvement, that would add 200k bbls per day.
 To achieve that much more production, 2 platforms
would have to be built and put in service in the Gulf of
Mexico
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Cost: 3 billion USD
Time: 5 years
Resources: up to 3 thousand people.
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E & P Standards
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Recent investment in E&P standards
efforts focus on information exchange in
high value areas, such as Drilling (costs)
and Production (revenues)
WITSML: Drilling Data to Office
(started 2000)
 PRODML: Production Optimization
(started 2005)
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WITSML™ – WWW.WITSML.ORG
Wellsite Information Transfer
Standard Markup Language
“The ‘right-time’ seamless flow of
well-site data between operators and
service companies to speed and
enhance decision-making”
An Open Information Transfer Standard for the Oilfield
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•General
•Well
•Message
•Operations Report
•Real Time
•Wellbore
•Wellbore Geometry
•Risk
Surface Logging
•Mud Log
Surveying
•Survey Program
•Target
•Trajectory
Logging While
Drilling
•Log  Well Log
(includes Wireline)
•Formation Marker
WITSML Data Objects
Communication
•Subscription
•Server Capabilities
Rig Instrumentation
•Rig / Rig Equipment
•Cement Job
Fluids Systems
•Fluids Report
Coring
•Sidewall Core
•Conventional Core
Directional Drilling
Systems
•Tubular /
•Bit Record
•BHA Run
Existing
Updated
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New
Source: BakerHughes/Paradigm
Extending WITSML
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WITSML’s original mandate for at-wellsite and
wellsite-to-operator (contextual and real-time)
data transfers is proving to be extensible:
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operator-to-wellsite and operator-to-regulator
transfers
data-flows to partners, labs, repositories and more
re-using the common architecture, infrastructure and
terminology
providing maximal commercial product and service
incentives and benefits
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PRODML Introduction
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Everyone speaks about “Fields of the Future,”
but want them now
The application integration task can be
extremely difficult
• What if we had an industry standard that
would interface – not necessarily integrate –
applications?
• Wouldn’t that be a good thing?
• This is a problem that everyone faces.
PRODML can help achieve that
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Who built PRODML V1?
Operators
Vendors
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BP
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Chevron
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ExxonMobil
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Shell
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Statoil
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Halliburton
Standards
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POSC
(heavily
Invensys (ctl sys) invovled;
OSIsoft (historian) brought much
knowledge;
PETEX (app suite) becomes
custodian as
Schlumberger
of Oct. 2006)
Sense Intellifield
(infrastructure)
TietoEnator (EC)
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Weatherford
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E&P Data Problem
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Real time data rich, information poor
Exxon, BP, Shell, Chevron, Statoil, etc., have
millions of electronic instruments
Generating terabytes of data every day
Fields are becoming more and more
electronic
How can PRODML help turn this data into
useful information?
It is getting worse. Fibre optic technology is recording
pressures and temperatures every 2 feet! Seismic
during production will generate masses of data!
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Disintegrated Applications and
Models
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Abnormal Situation Management
Production Allocation - Energy Components (TE)
Optimization Applications – CaseLift (Weatherford)
Maintenance Management - SAP
Reservoir Simulations - MBAL (Petex)
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Well Simulations - Prosper
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Pipe Line Simulations – Pipesim (Schlumberger)
Process Simulations - Romeo (Shell  Invensys)
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Make Data Useful
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Use data to enable continuous optimization
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Artificial Lift Optimization
Continuous estimate of well/reservoir oil, gas, water
flows
Safeguard integrity
Abnormal situation management
Right information to right people, at right time, in right
context, in right workspace to serve right work
process
Enable remote operations and real-time process
control
Example:
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Gas Lift Optimization
True Production Potential
Periodic Manual Optimization
No Optimization Activity
Oil Production
.
1.0
0.5
0.0
1
Real-time data to
and from wells
SCADA
or
Historian
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Real-time data
to and from
SCADA
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Gas Lift
Optimization
Application
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Optimal set
points from
model
Real-time data
to model
Time
2-Phase
Flow Model
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Technical Integrity Problem
Who is watching the unmanned wells and facilities ‘round the clock?
•Technical Integrity is a key
objective.
•Gauge operators often only visit a
well once during each month.
•That is not ensuring technical
integrity.
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Technical integrity most
important
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North Sea one week before Piper Alpha
 Explosion in gas compression module
 SCADA system retrieved data, cause
found
 Incident could have been prevented
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Piper Alpha was the worst disaster in oilfield
history.
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It happened after 10 o’clock on July 6, 1987
167 lives were lost.
Survivors had to jump into the North Sea’s
hostile conditions.
The oil company involved lost all of its
business in the North Sea.
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Technical integrity most
important
Other incidents
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Longford
Texas City Refinery raffinate splitter
Flow assurance – hydrates, leaks
Production facilities get more fragile
as they age!
Only one week before the Piper Alpha
incident, Shell had a similar problem in a
gas lift and gas compression area. The
system on-board sniffed the gas and shut
the system in. Nobody was injured. The
explosion just shut everything down. The
SCADA system took snapshots that were
analyzed in Aberdeen. Very soon, we knew
what happened…
We still don’t know what happened to Piper
Alpha!
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Technical integrity most
important
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The Shell team concluded that there was
sufficient information in the system to have
PREVENTED the initial failure. At that time,
we weren’t smart enough t
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In the Texas City refinery failure last year,
they had a rafinate splitter with a build-up in
the column to the point of ignition. The
explosion followed the build-up after four or
five hours. Data running through simulations
should have identified the integrity violation
before the catastrophic failure. Appropriate
executive action could have taken place to
prevent the disaster.
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Unfortunately, there were literally hundreds
of such incidents!
We still don’t know what happened to Piper
Alpha!
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PRODML Producing Asset Scope
The Production Domain
Initial
Scope*
Gas
Treating
Facilities
Gathering
Separation &
Distribution
Oil
Treating
Facilities
Injection
Gas
Export
Facilities
Oil
Export
Facilities
Gas & Oil
Contract
Deliverability
(Water, Steam, CO2)
Water
Handling
•From bottom of the well to initial separation
•Decisions we can effect in a day
Reservoir Management:
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*Scope has expanded downstream
The PRODML Bridge
Real Time Data
• ESD
Data in (input)
Optimization
Applications
• F&G
• Abnormal Situations
• Process
• Hydrocarbon Accounting
– Reservoir
– Well
– Surface
– Export
– Pipeline
• Maintenance Management
• Reservoir Simulations
• Well Simulations
• Pipe Line Simulations
Data out (set points or • Process Simulations
recommendations)
Data Across
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Potential Enabled Business
Benefits
 Improved
technical integrity
 Improved safety
 Increased production
 Reduced OPEX
 PRODML is the key enabler for
these benefits!
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Halliburton speaker at OTC ’06: “Integration
is the issue.” PRODML is our answer!
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IHS Signs LOI with POSC
to Offer Enhanced GUWI Service
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Unique Ids for all
Known Wellbores
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Can replace diverse
practices and naming
conventions.
Applies to all 4+
million wellbores
world-wide
Services available to
the entire industry
Uses and builds on the
existing IHS
International Id
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POSC will
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Publish GUWI industry
standards
Host a DM SIG WIS
Work Group
representing operators
and service providers.
Contract with IHS for
centralized services
(by year-end 2006)
Contract with other
service providers for
secondary services
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Well Identity Services
Registration
Request
Registration
Request
Well Identity
Services
(operated
by IHS)
Well
Identity
Services
(indirectly
thru
others)
Host: POSC
DM SIG
WIS Work
Group
POSC
Well Identity
Standards
Matching
Request
Matching
Request
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Lessons Learned
Show Leadership Where You Can.
Blend Standards for Industry and Agencies.
Be Visionary, but Act
Incremental, Iterative.
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North Sea Leadership
U. K. DTI promoted the development of
XML data transfer standards by POSC for
national repository input/output use, e.g.
WellHeaderML, WellPathML,
WellChemicalML
 Norway NPD based the DISKOS national
repository on a key portion of POSC’s
Epicentre® data model
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Leading to a commercial product line
 And repositories in many more nations!
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U.S. ePermitting
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Patience, patience, patience
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“We are now ready to make use of the good
work you (POSC) have done over the past
few years.” (Representative of a group of U.S.
state agencies)
When regulatory agencies find industry
standards worthy of using and expanding
… instead of building separate standards
of their own, … good things can happen.
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ePermitting and WITSML™
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The California state agency decided to build
ePermitting data transfer on the WITSML family
of standards in 2004
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If not for unrelated problems, this would have been in
use from 2005. It now looks like Q2 of 2007.
The Ground Water Protection Council (GWPC)
group of ~20 U.S. producing state agencies
have also endorsed this approach.
Look at the current promotional brochure from
GWPC and Chevron…
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Lessons Learned
Drive Standards Collaboration
through “Development” to “Early
Adoption” and “Beyond”
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Case in Point: WITSML
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BP and Statoil
Saw the vision
 Organized vendors
 Drove the initial development and encouraged
product implementation
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Six years later
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WITSML is successful
 (+)
and has led to standards in other areas
 (-) growth to the ‘next’ plateau in uncertain
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Case in Point: PRODML
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BP, Chevron, ExxonMobil, Shell and Statoil
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Saw the vision
Organized vendors
Drove the initial development and funded realistic
pilot implementations on a collaborative basis
One year later
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PRODML V1 is about to be published
There is a good chance that these and other energy
companies will drive incremental annual efforts within
the POSC community to add features and function
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Lesson: Drive to deep deployment and full market share
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After all, “Standards” are products, too.
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Next…
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We hope to see more PRODML-like
collaborations:
Visionary (Value-driven)
 Step-by-step staging (Iterate/Incremental)
 Funding members + key vendor = resources
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 Given
time and project management
 Drive through to realistic pilot projects
Leaders remain involved
 Better collaborative tools and accessible
results
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Thoughtful Questions
for You
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Questions

How can you help POSC be more helpful?

How can POSC help you help each other
between conferences?
44
How can you help POSC
be more helpful?

My Ideas

Tell us about
 your
problems.
 your dreams.

See if what you need is found in our
Standards Resource Centre
so, use it – and help make it better
 If not, help us understand – other may need it, too
 If

Your Ideas
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?
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How can POSC help you
help each other between conferences?

My Ideas
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We could manage
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An NDR mailing list – or a number of subject-specific mailing
lists
NDR Web-based discussion forums
A process for NDR regional and/or subject groups for form
(virtual or physical)
A process to harvest NDR proposals, results, etc. into
agendas of future conferences
Your Ideas
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?
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Thank You!
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DATE/TIME:
November 8, 2006
3:00-5:00PM Summit
5:00-8:00PM
Reception
Join your E&P colleagues to hear the latest in thought leadership
for upstream oil and gas standards. Catch up with exciting
changes taking place at POSC: new leadership, new mission and
enhanced membership value.
PLACE:
Marriott West Loop
This exciting event will introduce our Energy Standards Resource
Centre, new collaborative services on offer and the development
of a global open standards user community.
Hotel Information:
marriottwestloop.com
1750 West Loop South
Houston, Texas 77027
A special hosted reception will follow immediately after the
Standards Summit from 5:00 – 8:00 PM, so Register Now!
•Meet the new leadership
•Connect with E&P colleagues
•Catch up on new offerings
48