1 oil & gas market and core operations overview oil & gas market and core operations...
TRANSCRIPT
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Business Challenges for Oil & Gas
• Increasing regulatory requirements
• State-sponsored hacking and associated security risks
• Increasing data needs
• Decline in the price of oil - overall market volatility
• Competitive market cutback strategies
• Economic impacts
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Supply and Demand
SupplyDemand
• US Production• US Inventories• US Shale BE Cost of
$40• US 1.1M Wells• No OPEC Production
Cuts• Iraq/Iran • Russia• Venezuela• New discoveries and
long lead projects
• US: Solar and Wind• US GDP: 2.3% ave• China GDP• India GDP• Japan Negative GDP• Eurozone uncertainty• Electric Cars• Increasing vehicle mpg• Auto share and ride
share programs• IoT and Workforce
optimization
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Global Market by the Numbers: Supply & Demand
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Global Break-Even Costs
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US Oil & Gas Industry by the Numbers
• 1.1M Oil and Gas Well Heads; 1,880 Drill Rigs• Petroleum and Natural Gas Extraction:
• 11,500 companies(184,000+ Employees) • 352 companies with > 50 Employees (108,000 Employees)
• 200,000 miles of crude oil and refined petroleum product pipelines• Pipeline Transport Companies:
• 5,090 companies(72,000+ Employees) • 139 companies with > 50 Employees (32,500 Employees)
• 38 Jones Act vessels (U.S. flag ships that move products between U.S. ports)
• 3,300 coastal, Great Lakes and river tank barges• 200,000 rail tank cars• 144 refineries• 1,400 petroleum product retail, 100,000 tanker trucks, and 123,289
Convenience stores selling Gasoline• 475,000 storage tanks
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US Oil & Gas Industry Core Operations
Land Management
Seismic
Drilling/Completion
Production/Storage
Transport
Refine
TransportTerminal
Retail
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US Oil & Gas: Drilling and Well Completion
Drilling/Completion:
• Cost to Oil & Gas company: $5M+ per Drill Rig per Well Head(s)
• Drill Rigs• 6-8 weeks per well (mobile asset)
• Typical deployment in rural areas
• 25-30 people onsite from different vendors
• 500MB/month/Rig
• New development of Multiple Lateral Drills per pad site (2 to 24 drills per pad)
• 10% to 20% estimated miss rate: miss pocket completely or hit the pocket partially
• 50+ sensors per Rig collecting data: Power/Generators, Tank Levels, Gas emissions, Toxic compounds from drill site, etc.
• Data stored locally on Hard Drive and then sent to Petroleum Engineers (90% of Rigs are not connected to the network)
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Mobile Communications Solution
Mobile Communications Solution
Dynamic Mesh
• Cellular Only• Cellular Primary + Satellite
Secondary
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US Oil & Gas: Transport
Green: Oil pipelines
Red: Natural Gas pipelines
Blue: Refined Petroleum pipelines
Characteristics of Crude Oil pipelines:• Up to 48 Inches in diameter • Flow rate of up to 510K barrels per day
for Trans Alaska Pipeline System• Oil movement of 1 to 6 meters per
second• Pinhole size leak at 1.5% of max flow
rate for 14 days – 189K barrels of oil leaked (source PHMSA)
160K+ miles of pipeline with an average of 1-2 sensors per mile
Source: Theodora
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Chevron Pipeline
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12
Requirements
Improve efficiency with an end-to-end, integrated platform and solutions.
Leverage expertise from consultants/professional services.
Increase effectiveness by interpreting data correctlyin near real-time.
Enhance operational efficiencies with mobile management and workforce optimization
Protect all lines of business by managing risk across the board.
Maintain compliance with strict security policies.
Focus on core business.