Oil and Gas Exploration, Development and Production is a versatile and technologically diverse business. This presentation given to IT teams provides a overview
1. Hydrocarbon
Exploration & Production
Business, Technology and Information Overview
Scope of Document : Overview of E&P Business.
Nature : Presentation
Security : Public
Author : G Srikanth
Date and Version : 16-September-2008 v1.0
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
2. Structure
1. Story of Oil & Gas
2. Science
3. Technology
4. Business
5. Information Systems
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
3. Story of Oil & Gas - Origins
Natural Gas and Oil
seepages are known to Drake’s
many civilizations (Eg. Well
Jwalamukhi)
Col. Edwin Drake
discovered modern oil at
Titusville, Pennsylvania
Digboi-1
in 1859
Digboi in Assam is the
world’s first oil field
discovery outside USA
(First in India)
Oil wells in Titusville, 1880
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
4. Story of Oil & Gas – World producers
Oil Industry became
World Oil Producers the backbone of world
industrial
development
(replacing Coal)
Geopolitics started
orienting towards oil
>1000 oil fields
discovered
Giant >1million wells drilled
Big
Medium >10T$ invested
Small
Minor
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
5. Crude prices controlling global economy
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
6. Story of Oil & Gas - Giant Fields India
Ankleshwar
Bassein
Bassein, North
Bombay High
Dhirubhai (KG-DWN-98/2 block)
Lakwa
Moran
Nahorkatiya
Source:
American Association of Petroleum Geologists (AAPG) Memoir #78
Petroliferous Basins of India. ONGC Gas Field, Oil Field
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
7. Hydrocarbons in Modern Society
Oil is the driver of modern civilization.
Hydrocarbon
Exploration & Production business
Discovery and Profitable production of Oil and Gas
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
8. Origin of Petroleum – Scene-1
Oil is a fossil fuel. It was formed
more than 300-10 million years
ago. Some scientists say that
tiny diatoms is the source of oil.
3 1 Diatoms are sea creatures the
size of a pin head. They do one
2
thing just like plants; they can
2
convert sunlight directly into
stored energy
8
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
9. Origin of Petroleum – Scene-2
In the graphic on the left, as the
diatoms died they fell to the sea
floor (1).
Here they were buried under
3 1 sediment and other rock (2).
The rock squeezed the diatoms
2
and the energy in their bodies
2
could not escape.
The carbon eventually turned
into oil under great pressure
and heat. As the earth changed
and moved and folded, pockets
where oil and natural gas can
be found were formed (3).
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
11. Geology Paradigm
Largely Visual, Schematic and Interpretation based
Heuristic and Empirical concepts and principles
Wide ranging Scale-of-Support issues
Many Workflows unchanged with IT. Examples:
– Core Description
– Well Log Correlation
Limited algorithmic structure
G Srikanth, ADCO. Abu Dhabi. UAE
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
12. Sciences in Petroleum Geoscience
1. Mathematics Fluid dynamics, Digital Signal
Processing, Fourier analysis
2. Physics Rock physics (petrophysics), Geophysics –
Seismic , Instrumentation
3. Geology Search, Discovery and Characterization
4. Geophysics Seismic, Gravity and Magnetic surveys
5. Chemistry Oil & Gas Composition, Properties, Drilling
Mud chemistry, Rock chemistry
6. Computer Fractals, ANN, Fuzzy Sets, Advanced
Graphics
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
13. Technology in Petroleum E&P
1. Computer Array Processors, HPC, Virtual Reality, Petabyte
storage
2. Chemical Processing, Extraction, Plant design, Reservoir
engineering
3. Civil Drill site preparation, plant sites, Field layout, Structural
design of platforms
4. Electronics & Communication Design surveillance and
monitoring equipment, Communication, Instrumentation
5. Geodetic Surveying and Positioning
6. Environment Harazad studies, Spill management, Disposal
7. Mechanical Drilling, Heavy Equipment, Plants
8. Petroleum Well-Design, Flow-Networks, Production Optimization
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
14. Technology initiatives - Geophysics
a. High Res. 3D
1. To obtain High Resolution, High
fidelity data for Imaging b. Q Marine
Geologically Complex settings, c. Long Streamer
Deep and Ultra Deep Water
d. Solid Streamer
a. True Amplitude Processing
2. Enhanced Signal/Noise Ratio;
b. DHI
Imaging of Complex Geological
Settings; Physical Properties of c. Demultiple: SRME/3DSRME/ Hi
Res. Radon
Rocks
d. Imaging: PSTM/PSDM -
Kirchoff/Wave Equation
Migration
e. AVO/AVA (LMR) Inversion
f. Pre/Post Stack Inversion
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
15. Petroleum E&P Business Overview
Business Vision
E&D is essentially Centered
$ $ around managing information
– Quality
~10,000CrIRS – Completeness
– Auditability
Information Significant value accretion
Execution Valuation E&D is essentially obtaining
Exploration & Auditing “reliable” information on O&G
Development Technology occurrence and recoverability
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
16. Simplified E&P Business WBS
Business Development, Planning, HR, Finance, Legal, HSE,
Business Mgmt Marketing
Exploration & Science and Engineering domains
Technology, Valuation & Appraisal
Development
Engineering & Engineering. Well Engineering, Surface Engineering &
Technology Projects, Production Engineering
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
17. State Gates in E&P
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
18. prcs
Typical E&P Organization
CEO
Business
Exploration Development Production Services
Support
Field
Asset Asset
Operations Drilling
Manager Manager
Manager
Technical
Discipline EPC HR/IT/HSE
Manager
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
20. E&P Critical Success Factors
Access to Reserves
– Sustaining discovery rate
– Consistent Development
Finding and Development Cost
Technological Capability
Information Capital
Human Capital
Value Maximization
Environmental Friendliness
Cost is a key differentiator
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
21. E&P Asset Life cycle – IS features
Acquire Explore Develop Produce Abandon
E&P Asset Life Cycle
1. High Compute Capability
2. Diverse Application Portfolio for every function
3. High Data & Information Costs
4. Large data volumes
5. Complex Integration of wide range of data classes
6. Information Uncertainty needing multiple analysis and processes
7. World-wide operations and standard service requirements
8. Remote and hazardous work areas
9. Auditors, Certifiers, Collaborators and Regulators
10. High business Impact
IT Components in E&P technical areas are unique to the business
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
22. Application Portfolio for an Exploration
Processes
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
23. E&P – Compute Capability Characteristics
Systems
1. Teraflop processing power needed in many areas of work
2. Very high memory capacity > 64GB needed in many applications
3. Imaging Systems – very high end graphics
4. Huge Data sizes
Applications
1. Specialized and very proprietary
2. Bought-in – Seldom developed
3. Multiplicity of Applications for same/similar functionality
4. Proprietary data structures and models
5. Long cycle times for expertise
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
24. Technical Data flow
Seismic data Drilling data
PDB
Studies are carried out in Standard
Project DataBases. These
Data sets
are organised by block and
interpretation Project
Production
Seismic
Approved Data
h
at c ad
Apps Data sets
Geological B o
l
Apps Up
Petrophys. Manual
Apps
Reservoir input Master data
Integrated Data
Apps Data groups include:
CDB
Externally • Seismic
Technical applications Prepared Corporate data • Geology
data • Petrophysics
• Reservoir
A Corporate DataBase • Production
Tape Library-2 Pbytes • Drilling
is the repository of all Business • Culture
approved technical data Management • Assets
• Documents
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
25. E&P - Information Characteristics
1. High Information Costs
2. Complex data models – Structure and Semantics
3. Analytical complexity
4. Information Uncertainty
5. Large Risk
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008
26. The Charm of Successful E&P
• Spectacular Opportunity
• Extensive Diversity
• Strategic Contribution
Reliance Industries Ltd. Exploration & Production Business. India. 17-September-2008