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Create Business Value with Operational
Business Intelligence Tools
Sam Raju, Chief Architect, Customer Solution Adoption, SAP Labs, LLC
Ken Landgren, Director Oil & Gas IBU, SAP
Siddharth Taparia, Senior Director Business Analytics, SAP
Stéphane Lauzon, Director Oil & Gas IBU, SAP
Jagannath Das, Solution Manager, SAPA col laborat ion of:
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Production Loss Analysis
and Workover Profitability Analysis
Ken Landgren, Jagannath Das, Steve GallingtonOctober, 2011
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Story Summary
A field produces primarily gas, with some water production. The gas fieldmakes extensive use of compressors.
In 2006, production seems normal.
In 2007, the operator notices that monthly gas production is falling below plan.
Investigation also reveals that failure rates for compressors have increased.Deeper investigation reveals a root cause as fuel filter failures. A newmaintenance program is designed to replace the worst performing filters morefrequently.
In 2008, the results show reduced failures.
In 2009, the operator notices that some of the gas wells are underperforming due
to liquid loading. The operator does an analysis to understand the cost/benefit of initiating a workover program to swab the underperforming wells to unload theliquids. The expected payout for each well is under 15 days, so the swabbingprogram is undertaken.
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Data Summary
3 Fields
1053 wells
10 years
Daily Data
3.85 Million Rows
Cost Data
Equipment Failure Data
Production Data
– Well Volumes Data
– Well Pressure Data
– Reservoir pressure Data
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Scenario Architecture
Production Cost Maintenance Revenue
HANA
Analytics -- Answers
Excel Explorer Xcelsius Web Intelligence
•Integrated
•Flexible
•Fast
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Agenda
Two Related Scenarios for a Producing Asset
• Production Loss Analysis
• Workover Profitability Analysis
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Lost Production Analysis*
Situation
A field produces primarily gas, with some water production
The gas field makes extensive use of compressors
* Inspired by “Use SAP PM to Capture Quality Equipment Reliability Data,” by Dan MacPherson and Chad Wallace, Nexen, SAP-
Centric EAM 2010 Conference
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Gas Production Report
In 2007, the operator observes the planned and actual monthly gas production
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Gas Shortfall Report
In a deeper analysis the operator notices that monthly gas shortfalls have increased
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Equipment Failure Report
Investigation also reveals that failure rates for compressors have increased
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Lost Production Analysis
Compressor maintenance downtime analysis
Lots of maintenance events due to equipment failure
Desire is to reduce the equipment failures
What is the best way?
Answer
Root cause analysis based on equipment codes
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Lost Production Analysis
Most frequent
Maintenance
Items: Fuel filter
Battery
Alternator
Seals
• Pareto Analysis on Failure causes
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Equipment Failures by Model
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Lost Production Analysis
What is the failure distributionamong different compressor models?
3400 series shows a higher failure rate as a percentage of population
– Smaller fuel filter
3500 series shows a lower failure rate
– Larger fuel filter
Recommendation: Increasemaintenance frequency on 3400series
• Analysis of fuel filter events
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Lost Production Analysis
Where should newmaintenance program be
started? Wells with a combination of
high production and highdowntime
Populate HANA with wellproduction data
Prioritize wells by highproduction and highfailures
• Bad actor report – ranked by production
Higher priority, ranked onproduction and downtime
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Lost Production Analysis Results
Fuel Filters
Reduction in fuel
filter events
January to April
Stable reducedrates May through
December
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Gas Production Report
In 2008, the operator observes the planned and actual monthly gas productionseem better
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Gas Production Report
Also in 2008, the gas shortfalls have decreased
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Failure Coding for Lost Production Analysis
Important Points
Most traditional analysis requires data extraction from SAP.
– This is labor intensive, and can lead to errors
– HANA is directly connected to data sources, reducing effort and error The process works. This story is inspired by a published example.
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Workover Profitability Analysis
The operator has succeeded in addressing the problem of lost production due to
compressor failures. The next problem is well underperformance.
As the wells produce gas, they also produce formation water. Often, the formationwater falls to the bottom of the well, and slowly builds up. As the liquid level in thewell rises to cover the perforations, it exerts hydrostatic pressure that diminishes theflow rate, and can eventually kill the well. This process is called liquid loading.
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Gas Production Report
During the first 6 months of 2009, the planned and actual monthly gas productionlooks OK.
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Gas Shortfall Report
However, a closer analysis shows the gas shortfalls are increasing
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Gas Shortfall Report
The gas shortfall is concentrated in a few wells out of the 1000 in the asset
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Gas Shortfall Report
There are 10 gas wells that are underperforming
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Gas Well Workover Example
A swabbing operation can be initiated. Swabbing will unload the liquids from the gaswells. During each swabbing operation the well is shut in for one day. After swabbing, production increases to the expected rate.
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Single Well Projected Underperformance
The current performance is projected to the future and compared with the plan.
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Single Well Swabbing Projected Results
The projected results of swabbing are added and compared with the plan.
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Single Well Projected Revenue Underperformance
By bringing in gas price, the revenue performance can be projected and compared with theplan
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Cost Analysis for Gas Well Workover
During each swabbing operation the well is shut in for one day, losing the revenue for that day,and incurring a cost for the swabbing job. After swabbing, production revenue is projected toincrease to the originally planned rate.
Start of Underperformance
Swabbing
The blue linerepresents theoriginal revenueplan. The greenline shows therevenue lost duringthe workover shutdown and theadditional cost of the swabbing job.
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Single Well Swabbing Profitability
Revenue gainfrom Swabbing
How many days will it take for the revenue gain to pay off the total cost (lost production plus job cost) for the swabbing job?
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Cost Analysis for Gas Well Workover
Swabbing jobs cost $800.For a well that is underperforming due to liquid loading, how many days of increasedproduction will pay out the project?
Swabbing
Payout
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Multi-Wells Swabbing Profitability
How will this work if we plan the operation for all 10 wells?
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Cost Analysis for Gas Well Workover
The results show that for an average well, the cost of the swabbing operation ispaid out in under 15 days.
The sooner the well underperformance due to liquid loading is discovered and addressed,the less will be the production loss due to underperformance.
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Story Recap
Lost Production Analysis
Results
Identified most numerous failure causes
Implemented programs to reduce most costly failures first
Reduced failure rates
Workover Profitability Analysis
Results
Cost-benefit analysis shows that a workover will payout for each well in under 15days
The swabbing program is undertaken.
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The rest of the story
A schedule is proposed to regularly swab the wells to unload the liquid that hasbeen accumulating.
The compressor maintenance intervals are synchronized with the swabbingintervals so the downtimes for swabbing and for compressor maintenance arematched, further reducing overall downtime.
Asset profitability is increased, and everyone gets a bonus.
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Jagannath das [email protected]
Steve [email protected]
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Sam Raju, SAP Labs, LLC, [email protected]
Ken Landgren, SAP, [email protected]
Siddharth Taparia, SAP, [email protected]
Stéphane Lauzon, SAP, [email protected]
Jagannath Das, SAP, [email protected]