Digital and the impact on E&P

Digital and the impact on E&P Melissa StarkThe Next Big thing in E&P, E&P Committee, IGU

March 2016

Copyright © 2016 Accenture. All rights reserved. Accenture Confidential Information. 2

Digital will transform what the E&P workforce will be able to achieve

Deeper insight even

foresight

Well-informed trade-off

decisions

Faster execution cycle

times

More collaboration and

“networks”

Dramatically increased

productivity


Digital technologies has transformed many industries and E&P will be no

exception

Digital Technologies

Rapid Scalable Intelligent Connected

ERP

Devices Sensors

IT/OT

CLOUD/ 3D PrintingHow things are delivered?

Infrastructure for connected solution to

delivery fast & cost effective projects and

run systems with agility

BIG DATA/ANALYTICSHow insight is created and put into

action? Data driven insights and

decisions to develop projects &

optimize assets

MOBILITY How things are sourced, consumed

and leveraged? Always connected

experience across form factor

WORKFORCE/

COLLABORATIONHow things are discovered and people connect?

Collaboration within teams / partners / suppliers

across the ecosystem

ROBOTICS/

INTELLIGENT HARDWARE How processes and activities are automated,

reducing the need for labour, through

cognitive computing

Digital Impact


Cases we will cover today

Big Data and Analytics: Woodside Petroleum

Big Data and Analytics/Mobility: Rio Tinto

Intelligent Hardware/Cloud/Analytics: Columbia Pipeline

Cloud/ 3D Printing: Offshore Operator

Mobility and Collaboration: Onshore operator


Big Data and Analytics: Woodside Petroleum Video

https://www.accenture.com/us-en/insight-

perspectives-energy-woodside-predicts-

the-future

Shaun Gregory, Senior Vice President of

Science, Technology and Strategy

discusses how digital technologies are

helping Woodside creating an intelligent,

agile and competitive organization.

https://www.accenture.com/us-en/insight-perspectives-energy-woodside-predicts-the-future


Big Data and Analytics: Woodside Petroleum Overview

• Woodside has as operated the NSW for 30 years, with an extensive portfolio of offshore facilities and 6 LNG trains

across Karratha and Pluto Gas Plants

• Current production stands at 90MMBoe/year

• Has an expanding portfolio of global exploration opportunities -positioning them well for international growth in the field

Client Context

• Predictive analytics for reliability engineers to improve

maintenance decisions

• Predictive analytics for surveillance engineers to make more

informed process control and plant management decisions

• A flexible, scalable analytics environment compliant with

Woodside security policy

The Analytics Programme 2015

Analytics

Environment

Reliability

AnalyticsSurveillance

Analytics

• To be data driven company,

powered by analytics

• Intelligent Operations -

predictive insights and

recommendations to intervene

and deliver measurable

business improvements.

Client Vision

• Measureable reliability

improvements through

predictive maintenance

• Increased production

volumes through predictive

process control

Client Value

Focus

AUD 300-

400M*

• Operations

• Exploration

• Integrated

Value Chain

16Data Scientists

Surveillance Engineer Analytics

• Predictive models to allow process control engineers to monitor top 500

parameters of LNG plant in real-time

• 200,000 rows of sensor data injected into the platform every minute

• 3,500 predictive analytics models executed every 10 minutes

(500,000 calculations a day)


Growing performance gap between those who are able to leverage the data

to make better decisions faster and those who cannot

Big data, analytics and visualisation techniques will dramatically

shorten the cycle time and risk of decision making

7

Key points

• Data scientists will enter the operational environment and use advanced

mathematics, statistics, algorithms from other industries to solve problems, but they

need to collaborate with operations to understand the context and meaningfulness of

the patterns they find

• Predictive and fit for purpose maintenance to prevent events that result in production

losses, additional costs, or HSE risks (vs. being determined by recurring frequency)

• Accelerate learning and continuous improvement becomes more important

• Visualisation of relationships/dependencies becomes prevalent

• Younger workforce advantaged (aging workforce no longer as big of an issue)


Case Study: Rio Tinto Digital Turnaround

• Accenture enables over 1800 Contractors to

be tracked with RFID tags during an industrial

shutdown

• Tracking enables improved management of

contractor workforce time on tools, better

management of fatigue, management of

density alerts, and improved contractor

financial reconciliation

• Data captured wirelessly from workers will be

used to determine how future shutdowns can

be better managed

Digital Turnaround

video

https://www.youtube.com/watch?v=odEj38v1ozo





Digital Turnaround- Contract Workforce and Materials Management

“Digital Turnaround” incorporates contractor and asset tracking technology, mobility

applications, tablets and cloud analytics to drive industry transformations

Turnaround Challenges

Safety risk heightened due to 1000’s being on site

Schedule and Budget overruns on average 15-30%*

Contractor time on tools averages less than 50%*

5-15 % discrepancies in contractor billings

~1500+ contractors on site per day across 40 vendors

Service Platform(Near Real Time Visual Analytics)

Approach

• Monitor location and productivity in real-time using tagged equipment and

vehicles

• Perform asset tracking, productivity monitoring and travel time reduction using

analytics

• Wi-Fi already installed, extended mesh wireless network w/ 35 access points

• Implemented and operational in 70 days

Value Proposition:

* AP Networks Turnaround database covering more than 200 turnarounds

$

Enhanced safety

Increased productivity (5-15%)

Reduced billing discrepancies (3-5%)

Potential for shorter outage cycles

1 2

3 4


MM for Services – move from just catching billing errors to changing the

commercial model and management

The data and analysis from “digital turnaround” can support the

optimisation of the demand, sourcing, and management of services

Examples

• Near real-time optimisation of commercial terms

• Near real-time information on effectiveness dimensions- eg. time on tools, fit for

purpose staffing of different levels of staff, use of rush orders, waste and inventory

levels, etc… making performance management of contract much more powerful

• Simplification and streamlining of service entries and acceptances

• Increased transparency on impacts of change requests

• Embedded continuous improvement process (CP, Business, Supplier) to highlight

issues and suggest improvements, changes that could increase the value – not just

cost but also quality, risk, HSE and schedule

• Facilitates joint forecasting, resource sharing, process and capability sharing with

suppliers







Mobility/Collaboration/FFE: Onshore operator


A step change in the way people, processes, technology and data are

integrated, supported by the right culture to achieve an empowered field force

Vision for Field Force Enablement

OUTCOMESVISION

Reduction in

Operating Costs

Increase in

Availability

Top Quartile

Safety

Data VelocityImproved availability and

access to data to make

informed decisions at the

point of work execution.

Analytics Driven

Decision MakingEffective and rapid decision

making to proactively

manage field operations.

Seamless

CollaborationEnable smarter

collaboration to

effectively resolve

problems and improve

knowledge sharing.

Relationships at

ScaleEnhance relationships

between field operations and

external stakeholders to

achieve positive business

outcomes.

Boundary-less WorkersIncreased flexibility to choose

innovative modes of operation

enabled by technology and new ways

of working.

Safety First Reduce exposure to risk

for personnel and

equipment through

improved ways of working.

FFE

Vision


Workforce Productivity Maintenance Technician Use Case


Workforce Productivity Well Operator Use Case

15


Workforce transformation- more work in less time with fewer workers

Industry workforce productivity could double with the right

visibility, tools, instant access to information, and workflow

Key Points.

• Frictionless working. Eliminate cumbersome handovers, periods of

stop/start, travelling to base, waiting.

• New way of working. The iPad or the iPhone, a standard part of the

toolset- workers do not wait for an answer- they look it up, contact

an expert; paperwork is done online with simple apps

• Real-time optimisation of unplanned events. Control tower to re-

route jobs/workers in the field (i.e., similar to logistics control towers)

• Automatic capture and hard-coding of learnings into the

process/data

.


Faced with unprecedented challenges, e.g., increased compliance

regulations, rising demand, and an aging infrastructure, the ability to safely

manage and optimize pipeline assets has never been more critical

Intelligent Pipeline Solution

• Cloud-based platform

• Cyber secure hosting

• Desktop & mobile access

• Simple HTML5-based user interface for rapid development &

adoption

• Integrated internal & external historic & near real-time data

• Geospatial visualization tool

• Integrated geospatial view of assets

• Enterprise asset management dashboard

• Predictive risk modeling tools

• Comprehensive condition monitoring &

reporting

• Automated event alerts

• Material balance dashboard

INFRASTRUCTUREFUNCTIONALITY

http://www.intelligentpipelinesolution.com/

http://www.intelligentpipelinesolution.com/


Case Study: Columbia Pipeline Group- Intelligent Pipeline Solution

Scope

Release 1: Data integration, modeling, viewing, and other tools to speed the information

collection and availability

‒ Data Convergence across 7+ internal systems as well as additional external data

sources and exported to the GE Cloud and PredixTM platform

‒ Asset and threat geospatial visualization

‒ Active Risk Monitoring and Notifications – updated daily

• Functional focus on integrity and risk

• Next Release focused on data confidence and data validation and what-if analysis

Business Situation

• Columbia Pipeline Group owns and

operates more than 15,000 miles of

strategically located inter-state

natural gas pipelines

• Integrated with one of the largest

underground storage systems in

North America

• Approximately 1.3 trillion cubic feet of

natural gas flows through pipeline

and storage systems each year

Business Challenge

• Aging infrastructure

• Highly dependent on paper and silo’d data

• Recent regulatory or public scrutiny

• Aging workforce

• Need to transfer institutional knowledge

• Need enhanced visibility into condition of assets

• Insufficient analytics to drive proactive strategic decision making

Benefits

• Improve the safety, reliability and efficiency of pipeline operations

• Integration of disparate data sets to provide a comprehensive and near real-time view of

pipeline assets and operations for increased situational awareness and enable

predictive analytics to allow for informed, proactive decisions

• Improved integrity and risk management through an integrated, geospatial view of

pipeline assets aligned with critical factors related to pipeline integrity

“The Intelligent Pipeline Solution provides an integrated, geospatial view of our pipeline assets aligned with critical factors related to

pipeline integrity” COO, Columbia Pipeline Group.

https://newsroom.accenture.com/news/ge-and-accenture-announce-columbia-pipeline-group-first-to-deploy-break-through-intelligent-pipeline-solution.htm


Ability to use unprecedented amounts of data gathered from disparate

systems, weaving systems, data, and people together

Intelligent assets will have a big impact on safety, efficiency and

effectiveness, and how data and technology can be used

20

More information. Intuitive dashboard (e.g. high risk, high consequence areas)

consolidates data sources for better, faster decisions and safer outcomes

Reduce need for workforce to enter high risk, remote areas. Remote

monitoring and alerts, use of drones for inspection

Achieve more with less. Enterprise-wide visibility improves prioritization of resource

allocation and capital spend

Learning built into asset memory. Asset has a record of what’s happened and (with

AI) could suggest adjustments to maintenance plans based on what it expects

A clearer vision. A scalable platform that combines machines, data and people for

greater situational awareness

Fill in the blanks. Mix of old and new assets. Can use data from new assets

(adjusted for old asset parameters) to fill in the blanks to create a full asset picture

ENHANCED SAFETY

OPTIMIZED EFFICIENCY AND EFFECTIVENESS

DATA AND TECHNOLOGY TRANSFORMATION





Intelligent Hardware/Cloud/Big Data and Analytics: GE Pipeline




• 3D Printing has been around for 30 years, now it is on the brink of mass adoption

• It is transforming from rapid prototyping to direct digital manufacturing: the quality and

possibilities have increased significantly

• All types of materials can be printed: metals, glass, plastics, ceramics, concrete, wood etc.

• Industries on the forefront are: aviation, healthcare & automotive

3D Printing


5 Main Value Drivers

• Sustainability: Less material

needed (no scrap), less

transportation costs

• Automated Decentralized

Manufacturing: Remote Locations

• Novel designs: aircraft weight

reductions, eliminate assembly

steps, optimized designs on flow,

surface properties etc.

• Customization: visualizations, show

3D printed selfie

• Maintenance Management: ability

to decrease lead-times, reduced

warehouse footprint, ability to

produce products which are not

made any more traditionally


3D printing techniques

Extrusion of a filament of plastic

resin, metal or other material though

a heated nozzle that traces the parts

layer by layer

Sample vendor:

Stratasys (www.stratasys.com)

Fused Filament Fabrication

Fusing of small particles of plastic,

metal, ceramic, or glass powders

into a mass that has a desired 3-

dimensional shape

Sample vendor:

EOS (www.eos.info)

Laser Sintering

Curing and solidifying of a liquid

resin by employing an ultraviolet

laser beam to build parts

Sample vendor:

3D Systems (www.3dsystems.com)

Stereolithography

Plastics: Acrylonitrile Butadiene Styrene (ABS), Polylactic acid (PLA), Polycarbonate (PC) etc.

Metal: Stainless steel, Tool steel, Titanium alloy, Aluminum cast alloy, Gold, Silver etc.

Other Material: Ceramics, Glass, Composites (including carbon fibers), Sand etc.

There are many “custom” / proprietary materials which have been invented by the printer manufacturers.

Printing materials


Case Study: 3D printing saves IOC months of work in the

development of a FPSO

Context ...

• Company’s first FPSO (Floating Production, Storage and

Offloading unit) in the region

• One of the deepest facilities of its kind in the world (ultra-

deep-water)

• Will pioneer the use of innovative mooring technology,

disconnectable and which moves in the wind and waves,

• Innovative solutions in the design, providing mooring tension

adjustability- key component of the FPSO

• Regulatory body wanted to see the working model of

the FPSOs innovative solution

• Since the technology is new to the Region, IOC was

obliged to gain approval from the Regional HSE Authority

prior to its use

• Rapidly printed 3D objects with the support of the client

Innovation and Technical team. They 3D printed all the

new solution and buoy parts to build a complete scale

model

Advantages

• Took only 4 weeks to print instead of months

• Saved $ 40 million by noticing design flaws at early stage

• Was used for testing (regulatory requirements)

• Increased safety

• Increased delivery performance by detecting design flaws

earlier

Client Projects VP: “A strong integrated team ….. to use 3D printing

technology to ensure early on in the project that we had the right design

and construction approach. This is how we get it right the first time.”

The Challenges

The Solution: 3D Printing

The project


3D printing of missing spare parts

Example scenario enabled by 3D printing

Example – Worker needs a replacement part in

order to maintain a piece of equipment.

1. The worker selects the part from a list of

available-to-print parts,

2. An on-site printer manufactures the part

3. Worker validates part has successfully printed

4. Worker installs printed part into equipment

Example of potential cost avoidance due

to unavailability of spare parts

Example 1 - Lost Capacity: $18M

An O-Ring in a Pressure Safety Valve

fales, the O-Ring in the warehouse has

disintegrated, the leadtime is more than 3

days. 3 Days of deferement costs

Example 2 - Lost Capacity: $2.9M

The drive rod in a compressor fails, no

spare parts are stocked and the

manufacturer has been bankrupt for years


Part of a pump fails. The part is not

produced by the manufacturer anymore

and the whole pump has to be replaced


A pipe valve and pipe corrodes, causing

leakage in the quench system. No

emergency clamps of that exact size are

stocked


The supply chain rationale will change from centralised bulk production

and large orders to local production for small orders for some products

3D Printing will radically change supply chains

Current – Centralised bulk production and delivery

of large orders to a limited number of end points

3DP future – localised, small batch production and

delivery of small orders to many end points

Simplification of the supply chain with 3D printingTypical steps in the manufacturing supply chain

http://ec2-107-22-196-248.compute-1.amazonaws.com/wp-content/uploads/2012/03/3dprinting-scm.png

http://ec2-107-22-196-248.compute-1.amazonaws.com/wp-content/uploads/2012/03/3dprinting-scm.png


And there is so much more….

Automated Drilling Analytics to manage

NOJV performance

Claims analytics applied to

capital projects variationsFrom Data Warehouses to

Data Lakes

String matching to measure

D&C operational variability

Well completion analytics

source: NOVsource: Accenture source: MIT, Accenture

source: Accenture source: Accenturesource: Ayasdi


Implications for “The Next Big Thing in E&P” study group

Activity: Split into 4 groups and work through key scoping decisions that the study group has to make.

(1) How aggressive should the study group objectives be, e.g.,

• Identify and describe the digital technologies that could have an impact on E&P of natural gas

• Identify where in the E&P natural gas value chain the different digital technologies would have

an impact with respect to production, cost of activity and execution cycle time?

• Assess the relative potential and prioritise the digital technologies, resulting in

recommendations for individual producers

• Make recommendations for industry-wide collaboration to develop and implement the digital

technologies

(2) What should the study group approach to digital technologies be, e.g.,

• Member diagnostic of the potential of digital technologies

• Study of studies/external industry expert input on the topic

• Other suggestions…

(3) Review 5 cases and answer the following from your organisations’ perspective:

• Where could the technologies be applied and have the biggest impact (production, cost, cycle

time) and why?

• What is relative attractiveness of these technologies and why?

• Assess them on the implementation. Which technologies would be harder or easier to

implement and why?

• What technologies are missing?

• How important and difficult do you believe the culture/change management will be and why?

Digital and the impact on E&P

Documents

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