Understanding the Remote Field Data Communications Challenge

Trevor TextorProject Manager, Rural IT & Telecom Consultant

Principal, Textor Corp.

-- Fostering “it just works” rural data communications systems that enable clients to focus on their core business --

www.textor.caca.linkedin.com/in/trevortextor

Agenda• Requirements-based frequency selection.• Impact of communications on the Oil & Gas

industry.• Delivering services - silo vs. central planning.• Rural Deployments - IT & Telecom Engineering.• Design approach.• Telecom as a Digital Oilfield enabler.

Spectrum Determines Physical CharacteristicsNo Frequency “Silver Bullet”

Frequency vs. Spectral Efficiency

Spectral Efficiency Measures efficiency of a communication system measured in bits/hertz.

Cooper’s Law The ability to transmit different radio communications at one time and in the same place has doubled every 30 months since 1895 (120 years).

Benefits of Improved Rural Communications

Communications

Safety Business Functionality Savings

Total Cost of Ownership (TCO)

Telecom Utility TCO = Capital Costs + Operating Costs + Downtime Costs

The cost effect of a telecom outage can vary from:

• As little as ~$3K/day/site.• As much as millions per day.

Team Silos

Multiple teams delivering telecommunications has negative impacts such as:• Taking the team away from its intended function.• Inefficient workarounds.• May not have telecom skills.• Lack of coordination results in:– Supply chain management problems.– Technology interaction issues.

The Need for a Central Coordinating Function

Oil & Gas Business Cycle:

• Oil & Gas investment is largest in the early stages.

• Utilities leverage best results when introduced early.

IT Rural Communications Skill Deficiency

• Urban communications = Rent services• Rural communications = Rent or Build?• Oil & Gas business clients expect IT to deliver.• Building is an engineering project, IT

commissions services.

This disconnect is a big problem.

The “Off the Shelf” FallacyPassive vs. Active Components

Total Cost of Communications = Passive 80-95% + Active 20-5%

Passive = civil engineering works required to support telecommunications.– Towers, trenches, Conduits, cables, buildings– Fallacy is that towers can be “off the shelf” (no civil and

telecom engineering required)

Active = the actual electronic components that makes telecommunications happen.

ServicesInternet/Email/Voice/Video/911 Emergency ServicesRemote sensing, Monitoring & automation, Real time drilling, Intelligent completions, Visualization & modelling

Active Components 5-20%(radios, routers, switches)

Passive Components 80-95%(civil engineering works; towers, trenches, laying duct/cable)

Tower Placement & Size Matters

Tower Design Type:

“Off shelf” Requirements based

Initial Cost: $30K $80KWell Cost: $2M $100K

LMR Range: Limited Improved

Future Proof? No: $80K new tower Yes

Total: $2.1 M $0.2M

Telemetry example of two tower design approaches

Piecemeal vs Utility System Design

Piecemeal• One at a time design• Expensive• Complaints an indicator

Utility System• Inter-site design• Better service overall• 3x cheaper• Capital payback: 1 – 3 yrs• Downtime reduced ~2.5

days/site/year

The Digital Oilfield

• Formative study conducted in 2003• Many improvements can be further enabled

by a connected field (utility)– Covers Area of Interest– Committed resource– Full control (QoS)

Digital Oilfield Technology ImprovementsCERA estimated range of efficiencies:

Improve hydrocarbon recovery: 1-7%

Accelerate production: 1-6%

Improve operating efficiency: 3-25%

Reduce drilling cost: 5-15%

Reduce downtime: 1-4%

5 main technology areas:

Remote sensing

Intelligent completions

Monitoring & automation

Real time drilling

Visualization & modelling

A Connected Digital Oilfield Is PossiblePetroleum Development Oman (45,000 sqr km)• Increased a mature oilfield’s

production by 100K barrels/day. At $90/barrel this is $3.2 Billion/year in additional revenue within one year.

• Reduced drilling & completion days to online from 39 days to 14 days.

• 10 month payback.

ConclusionSix Misconceptions Dispelled…

1. There is no silver bullet - Radio frequency choice is determined by requirements.

2. Radios cannot be evaluated based on frequency; instead use Spectral Efficiency.

3. Radio equipment is not the final cost; include business impacts & lost opportunities (TCO).

ConclusionSix Misconceptions Dispelled…

4. Teams cannot effectively manage their communications needs; a coordinating function has cross-silo visibility and the ability to design holistically.

5. Civil engineering projects should not be “Off the Shelf”. Everybody wins when active and passive infrastructure is designed holistically as a utility.

6. A connected field is possible and recommended!

Questions / Thank You

Trevor TextorProject Manager, Rural IT & Telecom Consultant

Principal, Textor Corp.

-- Fostering “it just works” rural data communications systems that enable clients to focus on their core business --

www.textor.caca.linkedin.com/in/trevortextor

Comparing Radios

Factors for comparison:• Best Bits/hz• Best receive sensitivity• Best Packets per second (pps)• Electrical supply• Rated Environmental conditions• Software features (“IT”)

Telecom Passive Asset Ownership Industry