The E&P Industry and the POSC Community

David ArcherPresident / CEO

Regional SIG Seminar New Delhi, India

14 January 2005

Source: Downes & Mui, “Unleashing the Killer App”

Oil fields of the future: real-time oil and gas operations

Onshore Facilities

Decision Centers

Offshore Facilities

new capabilities – much more data; much more exposure

Source: Peter Breunig (CVX)

The Vision:An integrated digital EP Business with processes sufficiently automated to

enable people to achieve superior business performance.

Source: Herb Yuan (Shell)

Smart SystemsThe basic approach of all “smart technology” is measure-model-control

– measure system properties– model actual vs desired behaviour– derive required correction parameters (adaptive control)– implement control

∆INTOPS

Acquire

Model

Analyze

Control

Source: Shell

INTOPS = Integrated Operations

Business Headquarters

Capacity Planning Design [months/years]

Operational Planning [months/years]

Scheduling [days/months]

Supervisory Control [minutes/hours]

Regulatory Control [sec/minutes]

Well & Surface facilities

- Flow, pressure and temperature in wells and separator-Fuel injection to produce heat out of a boiler

- SCADA systems for coordinating flow stations and pipelines- Gas distribution/optimization on a pipeline network- Monitoring wellheads, multiples and flow stations

- Scheduling of injection/production plan and resources-Opening and closing wells or partial completions

-Adjusting well operating parameters

- Planning of injection/production plan and resources- Planning drilling and workover resources

- Supply Chain Management & Market and customer demands

- Asset life cycle and installed based maintenance or growth- Supply Chain Management & Market and customer demands

Aut

omat

ion

leve

lTim

e-scale

Fast cycle

Slower cycle

Source: Saputelli SPE 83978

Time Scales (106 range)

INTOPS

Acquire

Model

Analyze

Control

The Problem?• Theorem 1: 50% of the problems in the world result from people

using the same words with different meanings• Theorem 2: The other 50% of the problems results from people

using different words with the same meaning

Stan Kaplan, Risk Analysis, Vol. 17, No. 4, 1997

POSC: A short historyFounders: BP, Chevron, Elf, Mobil, Texaco 1990

Epicentre published 1993, most recent update (v3.0) 2001POSC/Caesar joint work 1995

Interoperability specifications 1996Organizational change: Sponsor to Membership organization 1998

XML beginnings / seminars 1999 (MMS eReporting)Web Services pilot 2001

XML schema / modules 2002SIGs reborn 2002

DSS SIG / E&P Catalogue 2002New Name 2003

WITSML to POSC 2003PIDX MOU 2003

IntOPS 2003 - 2004NDR5 2004

POSC Caesar MOU 2004 (IIP)WITSML V1.3 2004 (Release Candidate)

Some facts

Not-for-profit consortiumLocation: Houston, London

Members: 50+International membership

Oil [9]Anadarko, BP, ChevronTexaco, CNPC, ExxonMobil,

Hydro, ONGC, Pioneer, Shell, …Service / Software [22]

Halliburton, Paradigm Geo., Schlumberger, … Government / Regulatory / Noncommercial [20]

US DOE, US DOI, UK DTI, Norwegian NPD, …

Governance

11 Directors elected from Membership for 3 year terms

Herb Yuan, Chairman (Shell)Stewart Robinson, Vice Chairman (UK DTI)

David Archer, President / CEO (POSC) Peter Bernard (Landmark)

Peter Breunig (ChevronTexaco)Steve Comstock (ExxonMobil)

Tom Halbouty (Pioneer Natural Resources)Yogesh B. Sinha (ONGC)

Ihab Toma (Schlumberger SIS)Morag Watson (BP)

Eldad Weiss (Paradigm)

Board

Economics

ReservoirEngineering

ExplGeology

Petrophysics PetroleumEngineering

Drilling

Engineering

ProductionGeology

Production

Engineering

Facilities

Engineering

ProductionOperationsGeophysics

DrillingOperations

Completion &Workover

E&P Catalogue Standards

XML exchange standards, design guidelines, profiles

Data Store Solutions SIG

IntOPS SIG

Reference Data Standards

Industry Dictionary

Business Objects

eRegulatory SIG

Practical Well Log Standards

WellHeader, WellPath, WellLog, LogGraphics, etc.

NDR Meetings

POSC Standards / SIGs

Standards … from a major operator’s point of view

• It is better to be common than to be the best• We will get common before we get best• Claim

– Savings of $100 Million / year due to internal standardization

POSC Standards in ProductsStandard Service Co./Product(s) NotesWITSML V1.2 Baker Hughes/RigLink Implementation

Landmark/RightTime/OpenWire Implementation

Schlumberger/InterAct Implementation

Sense Intellifield Implementation

Petrolink Implementation

SDC Geologix/GEO Implementation

Knowledge Systems Inc. Implementation

E&P Catalogue Flare Solutions/E&P Catalogue (Landmark/CDS)

Implementation

WellHeaderML CDA, BGS, DEAL, DTI/UK Repository Implementation

PPDM WellHeader Profile

WellPathML PPDM Directional Survey Profile

WellLogML Oilware Implementation

ChemicalML DTI/PON 15 Permitting, UKOOA EEMS Reporting

Implementation

POSC Standards in ProductsStandard Service Co./Product(s) NotesPWLS V1/V2 BakerHughes/RECALL Implementation

Paradigm/Geolog Reference

Landmark/PetroBank Reference

PPDM V3.7 Supported

RP66 Many

Geoshare Many

Epicentre V2/V3 Landmark/OpenWorks, PetroBank, CDS Reference

Schlumberger/Finder, GeoFrame, Seabed Reference

CGG/Petrovision Implementation

Interoperability OpenSpirit Corp. Baseline

Shared Earth Model Schlumberger/GeoFrame Baseline

Reference Value Standards

Many

POSC Special Interest Groups• In general, SIGs are User Communities focused on a

standard, a work process, or some other common interest.• Current SIGs:

– Data Store Solutions (DSS) SIG– WITSML (Drilling) SIG– Integrated Operations (IntOPS) SIG– Practical Well Log Standards (PWLS) SIG– Geoshare SIG– eRegulatory SIG

• Characteristics:– Open to POSC members and non-members– Determines, publishes, and promotes consensus recommendations

POSC Standards & SIGsStd/SIG DSS WITSML Int. Ops. PWLS eRegulatory Geoshare

Data Exch

- WITSML (drilling & arch.)

- WITSML (other)

Practical E&P

- Ref Vals

- Catalog

- Well Log

- Other

Data Mgt

- Epicentre

- Geoshare

App Interop

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

A New Open Information Transfer Standard for the Oilfield

Global acquisition & access of RT drilling data

Depth based project data db

Timebased drilling data db

(Coming soon)

RTSservice

Onshore Operational Centre

Anywhere

Home

Office

Source: Statoil

The Right Initial Players - clear focusBP & StatoilBaker, Halliburton, Schlumberger, NPSi

Strong CommitmentInitial funding by oil companiesOil & service companies remain engaged after initial delivery

Effective ProcessesPractical, incremental approachClear focus on target outcomes - through implementationFrequent communications - steering & technical teams

Choice of TechnologiesXML, SOAP

Comprehensive Output and DocumentationXML Schemas + Server API + sample implementation

Openness / Evolution Public seminars and presentations

Transfer to POSC for commercially neutral custody, publication, promotion and evolution

Some lessons learned / best practices

POSC Challenges

• Help deliver the vision of a digital EP Business• Deliver data and real-time standards

– expand the WITSML footprint – production data,– expand data types – seismic, models, engineering data ?, . . – increase clarity in delivery milestones and targets in coming years

• Facilitate implementation and take-up of EP standards– engage with operators and service companies

• Foster membership time commitment to SIGs (5-10%)• Continue to increase visibility in industry - increase geographic reach• Improve coordination between standard setting bodies

Source: Herb Yuan (Shell)

David ArcherPresident / CEO

24 Greenway PlazaSuite 1000-B

Houston, TX 77046

+1 713 267-5142 phone+1 713 784-9219 fax

archer@posc.orghttp://www.posc.org