Update on POSC xField WITSML SIG Public Meeting 29 April 2004 Calgary David Archer archer@posc

1. Update on POSC xFieldWITSML SIG Public Meeting29 April 2004CalgaryDavid Archerarcher@posc.org

2. POSC xField xField = { SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field, Field of the Future, Digital Oil and Gas Field, … }

3. The Smart Field measure-model-control … measure-model-decide-execute … throughout the asset lifecycle

4. ∆ Smart Systems From self-guiding missiles to self-replenishing fridges, the 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 Acquire Control Model xField Analyze Source: Shell

5. Slower cycle Time-scale Automation level Fast cycle Source: Saputelli SPE 83978

6. Layered Architecture Ref: SPE 79893

7. Some related activities CERA DOFF SPE Real Time Operations TIG SPE Digital Energy Study Group API/GCIMT eFields Project Real Time Reservoir Management [TTG Group-OG21] WITSML SIG Strategic Decision Sciences ‘Roadmap’ UH CIOO … Many internal / joint projects in oil / service companies …

8. CERA DOFF: Potential Industry benefits / remarks Enhanced recovery: 125 billion BOE Lower operating costs: $4-8 billion/year Increased production rates: increase utilization 2-6% Lower facilities cost: 5-10% (3-5 years) Decreased drilling costs: 5-15% But Benefits are not independent, and they require Integration of higher quality data Significant change in organizations and work processes Total asset awareness Acting on awareness Increased use of full asset awareness Source: CERA DOFF executive summary

9. Comments from Operators(re: DOFF) Better decisions faster Prediction vs. reaction $250 million USD / year cost savings It’s not about the technology Integrate facilities, wells, subsurface Find right level of ‘smartness’ for each asset

10. 1 CERA DOFF Executive summary 2 TTA report on Real Time Reservoir Management. OG21 - Norwegian Continental Shelf 3 L. Sapultelli, et al. SPE 83978 [JPT December 2003] xField = {SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field,…}

11. 1 L. Sapultelli, et al. SPE 83978 [JPT December 2003] 2 T. Unneland, IQPC RT Field Management, February 2004 3 Strategic Decision Science, Roadmap to Enterprise Optimization Study xField = {SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field,…}

12. Source: S. Shemwell, SDS, ( www.energypulse.net)

13. POSC xField: suggested work XML standards for collaboration extending footprint of WITSML to include all data types required for Production System Surveillance and Reservoir Surveillance Smart Sensors what is needed for plug-and-play at each level of OSI model API’s for downhole intelligent devices, protocols (SOAP?), metadata and metadata management Market Studies smart surveillance for “shared services” in data acquisition and management, value-added services (pre-processing, analysis, interpretation) publishing,… potential business models, and implementation technologies: web services.

14. POSC xField Approaches • Understanding / problem identification • - pursue problems will clear (shared) business purposes • Adopt / adapt WITSML • new Data Types to focus on Production Operations • production volumes, production tests, temperature, pressures • Focus = Architectures + Data • Develop standards via Pilot Projects • Players = oil + service + regulators • Incremental, rapid results • Catalogues of related work / relevant standards

15. POSC xField SIG events 8 May 2003 (Houston) http://www.posc.org/meetings/may03_SFields 23 May 2003 (London) http://www.posc.org/meetings/may03uksfields 19 November 2003 (Houston) @ POSC Annual Meeting http://www.posc.org/meetings/nov03 14 January 2004 (Houston) @ IOO Workshop http://www.posc.org/meetings/jan04_ioo 17 May 2004 (Houston) @ UH 13:30-16:30 http://www.posc.org/meetings/may04_ioo June or September 2004 (Europe)

16. xField meeting attendees Univ. of Houston ABB SDS AspenTech eProduction Solutions TheEnergyForum Anadarko BP ExxonMobil Marathon Shell Halliburton Schlumberger Accenture Total CGEY HP Microsoft SAIC SGI Invensys OSISoft Paras POSC UK DTI

17. An oil company perspective on Standards Standards save money! uniform hardware, applications, data save $100 Million/year Standards lead to better science and increased value Use standards to address interface issues It’s better to get common than to be best Industry standards provide cost effective bridge to the digital oil field

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

19. The Right Players - clear focus BP & Statoil Baker, Halliburton, Schlumberger, NPSi Commitment Initial funding by oil companies Oil & service companies remain engaged after initial delivery Processes Practical, incremental approach Clear focus on target outcomes - through implementation Frequent communications - steering & technical teams Technologies XML, SOAP Output XML Schema + Server API + sample implementation Openness / evolution Transfer to POSC for commercially neutral custody, publication, promotion and evolution Some lessons learned / best practices

20. David ArcherPresident / CEO24 Greenway PlazaSuite 1000-BHouston, TX 77046+1 713 267-5142 phone+1 713 784-9219 faxarcher@posc.orghttp://www.posc.org