smarter planet: oil and gas

© 2009 IBM Corporation

Let’s Build a Smarter Planet: Oil and Gas

George Mattathil

4/18/2011


Let’s build a smarter planet: Oil and Gas

Amount of oil, on

average, that is

recovered from an

existing reservoir.2

33%

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.1

1 terabyte

The need for progress is clear

90,000

Man-hours required to

execute turnaround

effort every two

years on an offshore

platform.3



The opportunity for progress is clear.

New technologies and

mathematical algorithms

exist to significantly

reduce the time to

analyze oilfield data to

find, map and understand

oil & gas reservoirs,

thereby speeding time to

recovery.1

85% reduction in seismic processing

A 1.5% increase in recovery

from existing wells, on

average, would yield

enough oil for half a year’s

global consumption.2

1.5% increase in oil recovery

10% improved asset utilization

Adopting best-in-class

asset management

strategies can reduce

asset downtime by

10%.3



For oil and gas organizations, this means finding a way to lead in a

new environment shaped by three key factors.

ENERGY AVAILABILITY TO MEET THE WORLD’S GROWING NEEDS

Projections show energy consumption increasing by 50% by 2030.1 Yet a great deal is still

unknown about the world’s oil and natural gas supplies: where to find it, how much is in which

reservoirs, how to extract more of it and even how best to distribute it once it is pumped out of

the ground or ocean.

ENERGY AFFORDABILITY—PRICE, VOLATILITY—OF DIRECT AND INDIRECT GOODS

TO CONSUMERS

Hit-or-miss exploration methods and an unreliable supply can and do impact the price of oil and

gas. Given the enormous price tag of drilling a new well—which can cost over $100 million—

and the complexity of managing production facilities, even modest increases in oil exploration

and production efficiency can tremendously improve energy affordability.

ENVIRONMENTAL IMPACT

Failure to implement new technologies and capabilities that minimize drilling footprint or

improve the safety and reliability of operations can lead to increased environmental risk due to

unnecessary drilling and oil production accidents (explosions, spills, etc.).



New technologies need to be applied to continuously absorb and

apply the sea of information generated across their value chains and

beyond – transforming raw data into actionable insight

DATA INSIGHT ACTION



Today, smart oil and gas organizations are working to make better

use of data in order to…

IMPROVE ASSET

MANAGEMENT

Boost asset availability, flexibility

and reliability to achieve greater

responsiveness to market

fluctuations.

OPTIMIZE GLOBAL OPERATIONS

Increase visibility, mitigate risk and lower

costs across the supply chain.

ENHANCE EXPLORATION

AND PRODUCTION

Capture and process a variety

of data to identify previously

inaccessible reserves and

improve well performance. SMART OIL

AND GAS



An opportunity for oil and gas companies

to think and act in new ways.

Enhancing

exploration and

production.

Improving asset

management.

Optimizing global

operations.

+ + =



Smarter oil and gas:

Enhancing exploration and production.

SMART IS

Reducing risks to people and the environment

by having the ability to sense and adjust

operations automatically before problems

occur.

SMART IS

Using supercomputing and advanced data

modeling to find, map and analyze reservoirs that

previously were inaccessible.

SMART IS

Implementing advanced sensors and integrating

operational data to optimize production and

increase the oil and gas extracted from current

reserves.

SMART IS

Using data mining to manage operations that

maximize well life and optimize equipment

production.




Improving asset management.

SMART IS

Leveraging new information and forms for

rending this information (visualization,

dashboards) for improved decision support.

SMART IS

Enhancing production flexibility and

responsiveness to supply and demand

fluctuations in the market.

SMART IS

Improving asset availability and reliability based

on predictive analytics.

SMART IS

Enabling operations to monitor themselves and

be run largely by a ―virtual‖ team of experts.




Optimizing global operations.

SMART IS

Integrating supply chain planning information

(production, inventory, logistics) across

disparate operations (locations and systems) to

manage costs and increase customer

satisfaction.

SMART IS

Using predictive weather models to decrease

storm-related damages and minimize

disruptions to supply.



It will use this data to generate insights that will be shared

within units and throughout the organization—driving targeted

actions to ensure efficient, safe and environmentally sound

operations.

EXPLORATION

Proprietary Real-time data

Historical data and expertise

External real-time data

Insights

Actions

PRODUCTION

SHIPPING

REFINING

RETAIL

STORAGE

DISTRIBUTION

Government regulations

Geological data

Market Conditions



IBM’s solution strategy is aligned with the needs of oil and gas

companies.

ORGANIZATIONS ARE FOCUSED ON… IBM IS DELIVERING…

Enhancing exploration and

production

Improving asset management

Optimizing global operations

High Performance Computing

Seismic Data Mapping

Reservoir Modeling

Virtualization

Integrated Operations

- Rotating & Static Equipment Monitoring

- Well Performance Monitoring

- Production Target Monitoring

- Data Validation

Integrated Information Framework

Advanced R&D Capabilities

Enterprise Asset Management

Health, Safety & Environment strategies

Business Performance Management

Supply Chain Optimization

Workforce Development

Integrated Operations Services

- Rotating & Static Equipment Monitoring

- Data Validation

Enterprise Asset Management

Turnaround Optimization

Integrated Information Framework

RFID Strategies and Technologies

Asset Lifecycle Management



Let’s work together to drive real

progress in our world.

We’ve only just begun

to uncover what is possible

on a smarter planet.

The world will continue to become smaller, flatter

and smarter. We are moving into the age of the

globally integrated and intelligent economy,

society and planet.

There’s no better time to start building smarter

petroleum organizations—focused on providing

energy affordably and safely. And there’s no

better time to invest in creating the kind of society

we all desire.



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IBM Corporation 2011

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