Smarter Resources to Fuel a Smarter Planet
Ulisses T Mello, Ph.D.
Global Research Leader – Petroleum Industry
IBM Research
© 2011 IBM Corporation
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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
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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.
IBM’s Carbon Tradeoff Modeler: Manages and
performs analytics to help companies reduce
emissions and make smarter, more cost-effective
energy choices.
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What smart things are happening
in the oil and gas industry today?
Where are the greatest
opportunities for progress?
© 2011 IBM Corporation
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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
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To survive in today’s 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.
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© 2010 IBM Corporation
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Smarter oil and gas: Enabling upstream petroleum.
1
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.
2
SMART IS
Extending the lives of oil and gas
fields by achieving best-in-class
recovery of oil-in-place.
3
SMART IS
Maximizing return on assets
through improved asset
availability and reliability that
increases production rates and
reduces cost and safety risk.
4
SMART IS
Sharing knowledge across the
organization to facilitate high
impact teaming among highly
skilled experts.
© 2010 IBM Corporation
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1
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
earth’s 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
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1
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
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1
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
models―reducing
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
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1
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
1
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
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1
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 accurate—and computeintensive—seismic 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.”
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© 2010 IBM Corporation
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1
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
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Supercomputing peek speed trend - Moore Law
2008
Petaflop
11yrs
2019
Exaflop
RR
© 2010 IBM Corporation
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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
16
Water Systems
Actions
Command & Control
Centralized; Distributed;
Peer-to-Peer
Control Platform
© 2010 IBM Corporation
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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
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Gulf of Mexico Basin Modeling – Target 1 billion cells
Mello et al, 1998
© 2010 IBM Corporation
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Solution in
minutes using
1024 cores
temperature
pressure
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226108 vertices
1213920 elements
32 processors
15.2 secs wall clock
HYPRE PILUT preconditioner
7 iterations
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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
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Repsol Kaleidoscope Project
MareNostrum,
Europe’s third
most powerful
computer, resides
in a chapel in
Barcelona
© 2010 IBM Corporation
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2
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
2
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
2
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 fields—and 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
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2
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.
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© 2010 IBM Corporation
Angola Launch Event
2
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
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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
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History Matching is an Inversion problem and can be cast as an
optimization problem
Simulator
porosity,
permeability
Source: Echeverría Ciaurri, D. et al 2008
Forward: given parameter and model, estimate observations
Inverse: given observation and model, estimate parameters
© 2010 IBM Corporation
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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
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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
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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
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3
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
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3
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
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3
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
3
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
organization—but 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
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Smart Integrated Operations – Value Realization
© 2010 IBM Corporation
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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
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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 39
© 2010 IBM Corporation
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How Does Event Analytics Work?
raw data
signal
cleansing &
transformation
Detect
temporal
clusters
Quantify
deviation
Combination
function
state-machine
reporting
T
T
f
T
control
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Event Detection/Prediction Example
© 2010 IBM Corporation
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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 42
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)
p
F
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 43
MAINTENANCE PERIOD
© 2010 IBM Corporation
The OpenO&M™ Initiative
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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
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4
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
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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
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4
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
4
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
4
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
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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.
50
© 2010 IBM Corporation
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4
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
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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 businesses—speeding time
to production and increasing recovery factors while reducing costs and risks to
people as well as the environment.
© 2010 IBM Corporation
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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
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IBM’s 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.
1
Choose a project
and implement it
to achieve
immediate ROI.
2
Build on the value
of previous projects,
reusing assets and
implementation patterns.
3
Achieve a simplified,
strategic infrastructure.
© 2010 IBM Corporation
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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
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IBM’s 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
IBM’s Smarter Solutions for Oil and Gas
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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
1
 Processing times
 Drilling costs
 Operation efficiency
Integrate exploration
and production
capabilities across
standalone sites.
2




Analyze
Patterns
Decision making
Collaboration
Asset/maintenance costs
Health/safety risk
Optimize exploration and
production operations
across entire oil fields/
sites and ecosystem.
3
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 world’s 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
São 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 IBM’s 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
63
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
Real-Time Visibility
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
• Increase productivity by reducing data gathering from 75% of workload* to 0%
of workload
Effective Collaboration
Engineers analyze, then
act
•
Improve productivity of engineers and operations staff in the plant
Equipment monitors equipment
and remote engineers are
leveraged
•
For complex events, reduce event resolution cycle time by 75 – 90% *
Production has help in real time,
with experts
Predictive Analytics
• Reduce maintenance costs by 20%* by slashing emergency
maintenance – facilitated by predictive systems
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
68
© 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