Energy and Utilities Industry Overview - IBM - United States and Utilities Industry Overview - IBM -...

© 2011 IBM Corporation

Smarter Resources to Fuel a Smarter Planet

Ulisses T Mello, Ph.D.Global Research Leader – Petroleum IndustryIBM Research


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Smarter planet: Thinking and acting in new ways to make our systems more efficient, productive and responsive.

GREEN AND BEYOND

SMARTWORK

NEW INTELLIGENCE

DYNAMIC INFRASTRUCTURE

+ +INSTRUMENTED INTERCONNECTED INTELLIGENT


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A smarter planet empowers organizations to do more, using less.

Stockholm, Sweden: An intelligent toll system in the city center resulted in 20% less traffic, 40% lower emissions and 40,000 additional users of the public transportation system.

IBM’s Carbon Tradeoff Modeler: Manages and performs analytics to help companies reduce emissions and make smarter, more cost-effective energy choices.

River and Estuary Observatory Network: Will create the first technology-based real-time environmental monitoring and forecasting network to guide better policy, management and education for the Hudson River and estuaries worldwide.

U.S. power company: Saves $1.2 million annually by using an RFID-based fleet optimization system to reduce the amount of repair work on their vehicles.


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What smart things are happeningin the oil and gas industry today?

Where are the greatestopportunities for progress?


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Risk and Compliance Pressures

Climate Change and Environmental Concerns

Volatility of Energy Supply and Demand

Operational Transformation

Advances in Technology

Industry Challenges & Opportunities

Global market forces require new approaches for the oil & gas industry


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Upstream Petroleum

IntegrationOptimization

Analytics

EXPLORATION:FIND OIL AND GAS MORE QUICKLYSpeed overall time to locate and evaluate fields, plan field development and begin drilling operations.

PRODUCTION:EXTEND THE LIVES OF OIL AND GAS FIELDSIntegrate oil and gas production operations across the entire field to support enhanced recovery methods that increase recovery factors and extend the life of existing oil and gas fields.

ASSET MANAGEMENT:MAXIMIZE RETURN ON ASSETSReduce planned and unplanned asset shutdowns in order to maximize asset utilization and production.

WORKFORCE COLLABORATION:SHARE KNOWLEDGE ACROSS THE ORGANIZATIONImprove work efficiency and reduce safety and reliability issues through workforce collaboration.

To survive in today’s changing oil and gas environment, smart organizations are working to…

6


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SMART ISExtending the lives of oil and gas fields by achieving best-in-class recovery of oil-in-place.

SMART ISFinding oil and gas more quickly by integrating and processing geophysical and other data while developing new models to find and analyze previously inaccessible reserves.

SMART ISMaximizing return on assets through improved asset availability and reliability that increases production rates and reduces cost and safety risk.

Smarter oil and gas: Enabling upstream petroleum.

1

3

2

SMART ISSharing knowledge across the organization to facilitate high impact teaming among highly skilled experts.

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Exploration: Setting the context.

Although oil exploration methods are improving, they still may have only a 10% success rate for finding new oil fields.

10%Oil and gas exploration efforts are now searching for resources as far down as 4-5 miles beneath the earth’s surface.

5 miles 33%In general, for every three wells drilled, only one yields commercially viable quantities of oil or gas.

Sources: See notes

1


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Smarter exploration: Integrating and processing geophysical and other data while developing new models to find and analyze previously inaccessible reserves.

Oil and gas exploration: two key components.

1

Locate the oil or gas. Determine development viability.Find Evaluate / Appraise


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Three fundamental processes span both of these components.

1

Apply advanced

research and

development to

generate new,

increasingly complex

models―reducing risk

and increasing

accuracy.

Leverage supercomputing

technologies and expertise

to make

sense of data

more quickly.

Enable experts

to literally see

historically invisible

factors, globally

and in real time.

Model

Process

Interpret


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The process is ongoing and iterative, with a spectrum of modeling, processing and visualization driving further assessments and more accurate risk profiles.

1

Seismic processing

Proxy models

Expert collaboration

History matching

Visual interpretation

Geological models

Simulations

Forecasting

Property models

Automated framework models

Petrophysical Analysis

Full reservoir models

ModelProcessInterpret


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Steps to take:


1

Collaborate across geographical boundaries to most effectively interpret results.

Acquire geophysical, seismic and other data.

Process data using high-powered computing for rapid cycle time.

Visualize data to uncover new insights.

The benefits:• Reduced modeling and processing times• Faster identification of oil and gas

in difficult locations

• Faster time to oil production• Lower risk of dry-hole

How will you do it?Integrate seismic and geologic data from multiple sources and apply supercomputing technologies to analyze it.Use advanced research, modeling and visualization to improve decision making, reduce exploration risk and cost, and achieve faster “time-to-oil.”


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ENI, an integrated energy company in Italy, implements supercomputer technology to augment its seismic imaging capabilities to tackle ever more complex exploration projects, and at the same time improve its drilling success rate and shorten the timeframe to “first oil.”

13

Smarter exploration: IBM is partnering with oil and gas companies around the world to implement innovative solutions.1

Repsol is breaking new ground in improving the accuracy of deep-sea oil exploration by reducing by 85% the time required to run the highly accurate—and compute-intensive—seismic algorithms.


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Smarter exploration: These solutions are powered by our unique expertise spanning all facets of the upstream petroleum sector.

Deep computing expertise: In algorithms as well as parallel and multicore processing to maximize supercomputing capabilities for oil and gas. Discrete offerings include BlueGene systems, POWER7 systems and IT power-management solutions.

IBM Research and centers of excellence:For oil and gas exploration and production, which include proprietary

IP for areas like basin modeling.

Workforce collaboration solutions: Integrate processes and technologies such as Web-based tools, real-time messaging, conferencing and networking for real-time decision making.

1


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Supercomputing peek speed trend - Moore Law

2008Petaflop 11yrs 2019

Exaflop

RR


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Interconnected and interdependent models will provide the intelligence to predict outcomes and exercise closed loop control

Command & ControlCentralized; Distributed;

Peer-to-Peer

Control Platform

Actions

Capturing(Devices, Sensors, Imaging, Cell

Phones)High fidelity, continuous, human assist

Real world

Data & Measurement Platform

Distributed Energy Supply-Chains Water Systems

Simulation & Prediction

(What if Analysis)Multi-Modal, Multi-domain

Decision Model

(Optimum/ robust action)

Data validation,Interpolation and

ExplanationPoint detection Field

Reconstruction Connectingthe Dots

Context & constraints

PotentialOutcomes

Observedworlds

Modeling & Orchestration Platform

Action(s)

High-Quality Trusted Data

(Regulation & Policies)

16

assimilation / inversion

UncertaintyAssessment

Oil & Gas


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C&P: Large-scale Basin Modelling Improved modelling of the complex geological processes

Client Petrobras & EniRequirement Reduce the risk involved with finding new oil fields. Provide a better

understanding of basin evolution including salt motion

Problem / Issue The dynamics of the geological basins are not directly observable.Complexity lurk inside – Mobile Rocks (Salt) behave like fluids under pressure.Conditions can change the rock properties and impact in well prospects.Need to understand those issues. Therefore basin simulation models are used to visualise the evolution of basins. The better the model, the better the petroleum systems definition and exploration.Current numerical basin models are not able to handle such structural complexity

Solution New large-scale, multiphase, numerical simulator Using unstructured (tetrahedral) meshes Provide unprecedented simulation of complex geological structures. Designed from the scratch using object-oriented technologies using C++ and FortranNew algorithms for dealing with compaction in unstructured tetrahedral meshes Used XML technology to integrate related systems.

Simulating the interaction of complex geological processes Such as geological basin formation, compaction, salt motion and fault displacement As well as multiphase fluid flow in porous sediments during the evolution of sedimentary basins. Better numerical models improve significantly the risk assessment of new prospects in new frontiers as well as in mature basins requiring rejuvenation


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Gulf of Mexico Basin Modeling – Target 1 billion cells

Mello et al, 1998


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temperature

pressure

Solution in minutes using 1024 cores


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226108 vertices 1213920 elements

32 processors

15.2 secs wall clock HYPRE PILUT preconditioner7 iterations


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Seismic Imaging – Reverse Time Migration using GPUs (Cell Processor)

Cell provided 10x average performance for some algorithms Several collaborations with 3DGeo, Panorama Technologies The Kaleidoscope Project is a good example in which Repsol YFP, 3DGeo

(Stanford Univ.), Barcelona Supercomputer Center (BSC), and IBM. Reverse Time Migration (BP Model):


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Repsol Kaleidoscope Project

MareNostrum,Europe’s thirdmost powerfulcomputer, residesin a chapel inBarcelona


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Smarter production: Extending the lives of oil and gas fields by achieving best-in-class recovery of oil-in-place.

The five key components of Integrated Operations Services are critical to oil recovery.

Production and Performance

Reporting

Condition-based Monitoring

Intelligent Alerts and Event

Management

KPIs and Production

Calculations

Collaboration for Decision

Making

2


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Smarter production: Extending the lives of oil and gas fields by achieving best-in-class recovery of oil-in-place.

These processes take place in a centralized control room, where users and systems are integrated.

Production and Performance

Reporting

Condition-based Monitoring

Intelligent Alerts and Event

Management

KPIs and Production

Calculations

Collaboration for Decision

Making

Mail, SMS and other human alerts

ERP, EAM and other systems

Control Room

Maintenance Supervisor/Engineer

Platform Engineer

Production Supervisor

Operator HSE Engineer Field and Asset Owner

2


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Assimilate data to improve modeling and increase efficiency.

Integratedata across wells and fields.

Analyze historical trends to create a sense-and-respond environment.

Optimize operations across assets.

Instrument operations to gain performance and productivity data.

Implement “virtual” collaboration capabilities.

Smarter production: Extending the lives of oil and gas fields by achieving best-in-class recovery of oil-in-place.2

• Increased overall recovery factor• Extended field life• Increased operational efficiency

• Reduced production costs• Reduced environmental

and safety risks

The benefits:

How will you do it?Optimize your recovery of oil-in-place across the planet by analyzing and integrating processes at a single site, repeating across multiple sites and even entire fields—and then leveraging your methods and findings on a global scale.

Steps to take:


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Smarter production: IBM is partnering with oil and gas companies around the world to implement innovative solutions.

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Shell, through a collaborative project with IBM, is exploring advanced techniques for reconciling geophysical and reservoir engineering field data. The project integrates proprietary Shell software for reservoir simulation and prototype software for optimization, using an HPC infrastructure for application workloads. The data reconciliation process is being reformulated and automated to increase the cost-effectiveness and improve results.

Statoil links advanced real-time sensing capabilities in the field to collaborate and analyze resources across the enterprise for Enhanced Oil Recovery (EOH) resulting in significant increased production and improved operational efficiency at reduced cost.

2


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Business analytics tools: For oil and gas support trend-based well performance analysis, predictive maintenance and optimized operations.

Smarter production: These solutions are powered by our unique expertise spanning all facets of the upstream petroleum sector.

Integrated operations services solutions: That help integrate and manage specific functions including event early warning, rotating and static equipment monitoring, predictive/proactive maintenance tracking, data validation and well-performance and production-target monitoring.

IBM Research:For oil and gas exploration and production, which includes proprietary intellectual property for areas like reservoir management. In addition, IBM has recently launched a research facility in Brazil primarily focused on natural resources and working collaboratively with key industry clients.

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Case: – Extending the life of oil and natural gas fields by the joint inversion of well and 4D seismic data for history matching IBM's long-standing analytics and

simulation experience will meet Shell's strong subsurface and reservoir expertise to create a more efficient, more accurate picture for reservoir modeling.

The companies will explore advanced techniques for reconciling geophysical and reservoir engineering field data.

As a result of applying improved algorithms, analytics and accelerated simulations, Shell can reduce the educated guesswork and extract natural resources with more certainty and efficiency, thereby optimizing the recovery of oil and gas.

HOUSTON & ARMONK, N.Y. - 26 Feb 2010:An example of the type of modeling image Shell uses to represent a very complex set of data. The collaboration with IBM is expected to bring even greater clarity to reservoir modeling.


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History Matching is an Inversion problem and can be cast as an optimization problem

Forward: given parameter and model, estimate observationsInverse: given observation and model, estimate parameters

SimulatorPROD4

Time (day)

Water Rate SC

(m3/day)

1,000 1,500 2,000 2,500 3,000 3,5000

50

100

150

caso1a_opt40.irfhist_r10.fhfcaso1a.irfcaso1a_opt40_8.irf

porosity, permeability Source: Echeverría Ciaurri, D. et al 2008


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C&P: Joint Inversion of Reservoir Field Using 4D SeismicReservoir Management / Integrated Operations

reservoir parameters m

reservoir simulation

well performances + gradients w.r.t. m

petro-physical model

seismic attribute change

(impedances)

geological model

well observations history -productions

rocks

mismatch

Reservoir Seismic

fluidschanges in saturation

& pressure

saturation & pressure

dynamic well log data


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Challenges and Technical Innovations Expected

Uncertain spatio-temporal data (reservoir characterization)

Data with different space and temporal scales

Very large number of variables

Large-scale optimization problem

Non-convex objective function and nonlinear constraints

Exploitation of problem structure - physical and computational

Sparse representation – a model can be represented compactly by a small number of parameters by choosing an appropriate representation that exploits the spatial resolution of the reservoir

Model reduction – the model large dimensionality can be reduced by using techniques as multi-level formulation, which targets efficient computation and robustness

Regularization – modern regularization techniques are expected to be used to represent a-priori information more reliably and ensure coupling of data relationships

Coupling - Improve degree of coupling between seismic and well data using information- and physics-based coupling


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3 Asset management: Setting the context.

Average active rotary drilling rigs in the U.S. as of June, 2010.

1,527Employee deficit needed to run the vast, remote oil and gas operations by 2030

1.7 million $1 millionCost of some type of pumping trucks needed at well sites


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Smarter asset management: Maximizing asset availability and reliability to increase production rates while reducing cost and safety risk.

3

Improved operational intelligence enables better management of assets throughout their complete lifecycles.

Turnaround / Shutdown

Design and Engineering

Health and Safety

Maintenance

Operations

CollaborationConvergence

Standardization

Operational Intelligence


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Improve operational intelligence through a single, integrated approach.

Initiate manual or automated processes from asset event alerts.

Ensure regulatory compliance by integrating processes.

OptimizeAsset lifecycle using advanced tools, dashboards and programming.

Smarter asset management: Maximizing asset availability and reliability to increase production rates while reducing cost and safety risk.

How will you do it?Get the most out of your assets through more effective planning, work management and information integration. Achieve greater cost and regulatory management while performing condition-based monitoring and working to integrate your operations.

3

Steps to take:

The benefits:• Improved asset utilization• Reduction in planned and unplanned shutdowns• Lower operations and maintenance costs

• Improved regulatory compliance• Reduced environment and

safety risks


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An international oil company implemented a first-of-a-kind emergency solution that translates real-time RFID data into actionable, visual information for new plant safety procedures.

An international oil company integrated asset management solution that keeps production levels high and downtime low resulting in greater efficiency, lower costs, improved safety and overall improved oil recovery rates.

3 Smarter asset management: IBM is partnering with oil and gas companies around the world to implement innovative solutions.


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Smarter asset management: These solutions are powered by our unique expertise spanning all facets of the upstream petroleum sector.

Enterprise asset management for oil and gas: Improves safety, availability and compliance of physical assets through a holistic, integrated approach that drives increased operational intelligence through common processes across the organization—but tailored to business segments.

Turnaround optimization:Leverages research analytics combined with asset intelligence and supply chain coordination to optimize planned and unplanned shutdowns.

Health, safety, security and environment solutions: Use digital video surveillance for asset risk management,RFID technology for asset location tracking and implementation of environmental management capabilities.

3


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Smart Integrated Operations – Value Realization


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Statoil Example - TAIL Integrated OperationsA research project with focus on the Industries Challenges

Robotics technology

Mobile ICT infrastructure

Condition and

Performance monitoring

Wirelesscommunication

Collaborativevisualization

Turnarounds and

shutdowns

Concepts for safe and cost-effective

operations of facilities

Common integration

architecture


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Slide 39

Smart Integrated Operations – Condition-based Monitoring Overview

Condition-based Monitoring requires 4 functions all of which have analytics at their core:- Monitoring- Prediction and - Diagnosis- Maintenance planning and scheduling

Monitoring (mainly meant for alerting)- Model-based- Data driven

Prediction (A predictive model of expected behavior)- Data mining and machine learning to pro-actively identify the onset of aberrant behavior

Diagnosis- Root cause analysis- Rule based systems and production systems for diagnostic reasoning- Sequential decision making

Maintenance planning and scheduling:- Long term preventative planning - Scheduling jobs (preventative and repair)


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How Does Event Analytics Work?

control

raw datasignal cleansing & transformation

Detect temporal clusters

Quantify deviation Combination

function

state-machine reporting

f

T

T

T


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Event Detection/Prediction Example


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Slide 42

0.019

0.0085

0.13690.2099

0.6531

0.95760.9492

0.0318 0.0399

- HIDDEN MARKOV MODEL TO DISCOVER STATES OF THE MACHINARY- CORRELATION MODEL FOR EACH STATE SHOWING INTERACTIONS

Event Detection/Prediction Example – Separator States


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Slide 43

Predictive Modeling and Maintenance PlanningTurnaround Optimization

Repairs Environmental Factors

P*(t)

MAINTENANCE PERIOD

PLANNED DOWNTIME

UNEXPECTED DOWNTIME

AVAILABILITY

DO

WN

TIM

E

ADAPTIVELY LEARNPARAMETERS

PARAMETRIC MODELADAPTATION

OK D1 F

R1

R0

R2

TempR3

p

4 states, characterized by a penalty on production

• OK (as good as new)• Deteriorated • Failed • Temporarily repaired


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Physical Asset ControlReal-time Systems

Enterprise Business SystemsEnterprise Resource Planning (ERP)

OpenO&M™

F O U N D A T I O N

Operations

Maintenance

The OpenO&M™ InitiativeBrings People Processes and Technology Together


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Sources: TK

Workforce collaboration: Setting the context.4

The average retirement age for the industry is 55 years old; The average employee age for a major operator or service company is 48 years old.

55 years oldTwitter processes 1 billion messages per month; How can this type of technology be used to connect Oil and Gas workers?

1 billion 1 terabyteAn oil field can generate one terabyte, or 200 DVDs’ worth, of data daily. An oil and gas engineer can spend up to 60% of theirtime mining this data.


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Smarter workforce collaboration: Facilitating teaming among highly skilled experts.

Regional Support

Local Office

Data and Expertise

Field Office

Field Office

Field Office

4


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Regional Support

Global Support

General Remote Support Center

Data and Expertise

4


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Regional Support

Global Support

Networked Organization

Data and Expertise

GlobalNetwork

4


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Establish a method to track skills competencies and find expertise.

Incentemployees to share their expertise.

Apply technology to facilitate the involvement of remote experts.

Teamsenior and junior resources to speed the flowof expertise.

Implementglobal standard processes and embed collaboration within them.

4How will you do it?Improve work efficiency and reduce safety and reliability issues by connecting experts all over the world and providing them with the tools and capabilities they need to collaborate.

Steps to take:

The benefits:• Reduced operational costs• Improved operational efficiency

• Improved knowledge transfer• Reduced environmental and

safety risks


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4 Smarter workforce collaboration: IBM is partnering with oil and gas companies around the world to implement innovative solutions.

An international oil company created an integrated collaborative environment as part of their intelligent oilfiled initiative enabling workers to work as one team irrespective of location to share real-time data streamed from the field and using collaboration tools, such as video links, with remote team members. The result is optimized core processes, faster decisions, reduced cost and improved performance.


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Smarter workforce collaboration: These solutions are poweredby our unique expertise spanning all facets of the upstream petroleum sector.

Workforce collaboration solutions: Integrate processes and technologies such as field force automation, web-based tools, real-time messaging, conferencing and networking for real-time decision making.

Learning and knowledge sharing: Leverages processes and tools to support the creation, dissemination and utilization of knowledge when and where it is needed in the field, at the production platform and in the refining operations.

Process and organizational design and change management: Helps organizations develop and aligned new collaboration models and the processes and technologies required to enable the networked organization.

4


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Why IBM?

Only IBM can provide you with the unique combination of tools and expertise you need, across all elements of business, technology and research, to build an integrated approach to managing your upstream businesses—speeding time to production and increasing recovery factors while reducing costs and risks to people as well as the environment.


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The IBM Chemicals and Petroleum Integrated Information Framework underpins our industry business solutions

The framework provides:

An approach to link technology directly with the business goals it supports

Solution accelerators to speed deployment of new capabilities

Re-usable implementation patterns to lower risk and decrease time-to-value

Support for open/industry standards

Choice of business applications and services from IBM business partners

The IBM C&P Integrated Information Framework creates a more flexible foundation for increased growth and efficiency

IBM Chemical and Petroleum Integrated Information Framework

Business partner solutions

IBM Chemical and Petroleum industry Solutions

Consistent C&P Representation

Standardize processes and

Performance Measures

Industry Standards Support

The framework combines market-leading technology capabilities with pre-built solution accelerators, best

practices, and implementation patterns

Visualization in Context of Equipment Operations


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IBM’s Chemicals and Petroleum Integrated Information Framework enables organizations to start with any solution and build upon it over time to achieve a simplified, strategic infrastructure.

Achieve a simplified, strategic infrastructure.

Choose a project and implement it to achieve immediate ROI.

Build on the value of previous projects, reusing assets and implementation patterns.

1 2 3


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Oil and gas companies achieve significant benefits by deploying solutions on an integrated information Framework.

Improved productivity from real-time visibility of measurements in the context of equipment.

Greater cost control based on performance comparisons across multiple assets.

Reduced planned and unplanned shutdowns achieved through the use of enterprise-wide, event-based information.

Faster decision making with enterprise-wide access to real-time process performance relative to KPIs.

Agility to incrementally expand across additional assets and processes.


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IBM’s Smarter Oil and Gas Solutions – Overall Approach

Smart Integrated Operations EnablementOne open channel to all data required to operate assets in real time

Semantic Model Standard-Based Standardized Metrics Event Management

INSTRUMENTEDAbility to measure, sense and monitor the condition of

almost everything.

INTERCONNECTEDPeople, systems and objects can communicate and

interact with each other in entirely new ways.

INTELLIGENTRespond to changes quickly and accurately, and get better

results by predicting and optimizing for future events.

Smart Oil and Gas SolutionsComprehensive set of capabilities to enable smarter decisions faster

Visibility Collaboration Analytics Optimization


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Exploration RefineryTerminal/

DepotRetail

StationCrudeSupply

SecondaryDistribution

PrimaryDistributionProduction

Upstream Downstream

SupportingResources

Enterprise Resource PlanningEnterprise Resource Planning- Upstream, Downstream (Petroleum, Oil Sands, Natural Gas, Chemicals) Templates - Upstream, Downstream (Petroleum, Oil Sands, Natural Gas, Chemicals) Templates

Smart Integrated Operations Enablement Smart Integrated Operations Enablement Reference Semantic Models, Adaptors, Data Integrity, Visualization, Event Management, Rule ProcessingReference Semantic Models, Adaptors, Data Integrity, Visualization, Event Management, Rule Processing

Smart ExplorationSmart Exploration- Large Scale Basin Modeling,- Large Scale Basin Modeling,

- Seismic Processing / Digitalization- Seismic Processing / Digitalization- Rendering & Visualization - Rendering & Visualization

Smart Performance Monitoring and Remote Operations Smart Performance Monitoring and Remote Operations - Well Monitoring, - Production Target Monitoring- Well Monitoring, - Production Target Monitoring

- KPI Tracking, Virtual Worlds Collaboration - KPI Tracking, Virtual Worlds Collaboration

Smart Asset Management Smart Asset Management - - Condition-Based Maintenance: Early Event Warning, Static, Rotating and Electrical Equipment Monitoring, MRO Forecasting, MRO Inventory Planning, MRO Procurement and Logistics Condition-Based Maintenance: Early Event Warning, Static, Rotating and Electrical Equipment Monitoring, MRO Forecasting, MRO Inventory Planning, MRO Procurement and Logistics

- Turnaround Optimization, Maintenance Planning and Scheduling, Corrosion Monitoring, Field Asset Tracking- Turnaround Optimization, Maintenance Planning and Scheduling, Corrosion Monitoring, Field Asset Tracking- Greenfield Automatic Model Creation, Engineering Design to Commissioning Management - Greenfield Automatic Model Creation, Engineering Design to Commissioning Management

Smart Retail SolutionsSmart Retail Solutions- Service Station Back Office - Service Station Back Office

- Fuel & Convenience Store Solutions - Fuel & Convenience Store Solutions

Smart Operations Upstream Supply Chain Optimization Smart Operations Upstream Supply Chain Optimization - - Supplies (fluids, diesel, chemicals, repair parts, food and water) Planning & SchedulingSupplies (fluids, diesel, chemicals, repair parts, food and water) Planning & Scheduling

- Workforce Scheduling, Emergency Scheduling - Workforce Scheduling, Emergency Scheduling

Smart Operations Downstream Supply Chain OptimizationSmart Operations Downstream Supply Chain Optimization- - Blending Optimization, Refinery Scheduling, Pipeline Scheduling Blending Optimization, Refinery Scheduling, Pipeline Scheduling

- Chemical Plant Scheduling, Tank Truck Scheduling, Workforce Scheduling- Chemical Plant Scheduling, Tank Truck Scheduling, Workforce Scheduling

Level3*

Level4*

Smart Health, Safety, Security and EnvironmentSmart Health, Safety, Security and Environment- Supply Chain Sustainability Management, Compliance Management, Environment Management, Safety and Security, Audit and Inspections, Risk Compliance Monitor - Supply Chain Sustainability Management, Compliance Management, Environment Management, Safety and Security, Audit and Inspections, Risk Compliance Monitor

Cross Cross IndustryIndustry

Strategy & Strategy & TransformationTransformation- Green Strategy- Green Strategy

- Merge & - Merge & AcquisitionsAcquisitions

- Workforce & - Workforce & Talent SolutionsTalent Solutions

AdvancedAdvancedAnalyticsAnalytics

- Customer - Customer AnalyticsAnalytics

(social network (social network analysis, pricing analysis, pricing

optimization)optimization)

- Financial - Financial Analytics Analytics (financial (financial

integrated risk integrated risk management)management)

- Operations - Operations Analytics Analytics (workforce (workforce

analytics, supply analytics, supply chain risk chain risk

management) management)

- Core Analytics - Core Analytics

(data (data governance, governance, master data master data

management, management, enterprise enterprise

content content management)management)

Smart WaterSmart WaterSmart Smart

BuildingBuilding

Production Execution Production Execution Platform Production Management, Refinery Production Management, Petrochemical Production Management, Government Specific Solutions Platform Production Management, Refinery Production Management, Petrochemical Production Management, Government Specific Solutions

Sensors, Actuators and NetworksSensors, Actuators and Networks

Facility Monitoring Systems (FMS), Digital Control Systems (DCS), Historians Facility Monitoring Systems (FMS), Digital Control Systems (DCS), Historians Levels0, 1, 2*

CrudeAcquisition

* ISA-95Level Definition


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Actions to takePrioritize near-term benefit, high-value projects.Business focus areas:

– Exploration– Production– Asset Management – Workforce Collaboration

Apply analytics to support performance management. Integrate analytics results into your business processes.


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Get started: Achieve a smarter exploration and production enterprise.

Uni

que

valu

e re

aliz

ed

Use of smarter planet principles

ManageData1

AnalyzePatterns2

Optimize Outcomes3

Establish foundational elements to enhance exploration and improve production.

Integrate exploration and production capabilities across standalone sites.

Optimize exploration and production operations across entire oil fields/ sites and ecosystem.

Processing times Drilling costs Operation efficiency

Decision making Collaboration Asset/maintenance costs Health/safety risk

Recovery rates Production costs

Measures of Value


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IBM Research - intellectual capital and tools to solve complex problems in a diversity of new emerging areas to further helpour clients to innovate and achieve competitive advantage

IBM Research The world’s largest private

research institution $6B annual R&D budget 8 research labs around the

world ~ 3,000 researchers 5 Nobel Prize winners 16 consecutive years of IBM

patent leadership Skills in mathematics,

computer science, physics, operations research and many more…

From the labs….…to your

organization

IBM Research Services Advanced research

skills and technology Deep industry

knowledge and consulting expertise

Innovative approaches to problem solving

Breakthrough thinking in business process research

Rich assets Algorithms Models and processes Software and tools


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IBM Research Laboratories

WatsonAustin

TokyoHaifa

Zurich

India

Beijing

IBM Research Lab

Almaden

Announced June 7th

Brazil

“IBM announces 9th Research lab in Brazil”


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IBM Research - BrazilMission: To be known for our science and technology and vital to IBM, IBM Brazil, our clients in the region, and globally

Almaden Watson Beijing

Austin

Zurich

TokyoHaifa

Sao Paulo

Rio deJaneiro

India

Brasil

IBM @ Tutoia StreetSão Paulo

IBM @ Avenue PasteurRio de Janeiro

Locations

Leadership team in place and growing team– World class researchers with broad experience

and recognition– Excellent new Researchers

Strategic Focus Areas– Smarter natural resource discovery and

logistics– Smarter devices leveraging IBM semiconductor

technology– Smarter human systems focused on large scale

events– Service Systems

Additional Focus AreasProvide differentiation for customer engagements

in Brazil, Latin America, and West Africa– Focal point for leveraging world-wide Research

technologies and researchers

First Research lab in Southern Hemisphere

First Research lab in 12 years


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Smart Natural Resources AreaArea Leader: Ulisses Mello

Mission: To research and develop technologies for smarter natural resource discovery, exploration and logistics, and addressing the sustainability and safety of the resources industry. To extend IBM’s collaboration with universities, government organizations, and companies in Brazil and across Latin America.

Goal: To create the largest IBM C&P Research group in the world and become a renowned leading group in Natural Resources Management

Computational Geosciences: Large-Scale Basin Modeling, Inversion and Data Assimilation, Seismic Imaging, Highly Scalable Reservoir SimulationIntegrated Operations & Logistics: Streaming Computing Applied to Smart Operations, Condition-Based Maintenance, Numerical Optimization Applied to Smart, Integrated Operations, Offshore Logistics Optimization, Extending the Integrated Operations Paradigm, Resource Constrained Project Scheduling OptimizationBiofuels: GIS-based analytics and logistics.

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GEO

AM CS+SYS

GEO = Geosciences

AM = Applied Math

CS = Computational Sciences + Systems


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Approach to find right: • location and partners• research areas• business models

Strategic Research

Topics

OpenCollaboration

ExpandGlobalReach

IBMResearch

Value

•Align (overlap) to long term research strategy•Access and hiring local talent

•Key assets and resources•Competitive and available

•Strategic location to IBM, Business Units•Technical infrastructure and readiness•Matching research theme and location

•Each party to get leverage of their investment •IBM investment is a function of strategic alignment

Key Elements of IBM Collaborative Partnerships

FOAK, Joint Development, Collabs, etc


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Smarter Oil and Gas: A Look into the Future

Advanced water managementCarbon capture and sequestration Tracking of long-term environmental impactsStream computing


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IBM Smarter Solutions for Oil: enabling smarter decisions faster

Predictive AnalyticsReactive

Maintenance

ProactiveMaintenance• Reduce maintenance costs by 20%* by slashing

emergency maintenance – facilitated by predictive systemsReactive

OperationsPlanned Operations• Increase throughput via better use of models to

determine set points before operating conditions change

* IBM industry insights

Real-Time VisibilityEngineers gather data,

then analyze

Engineers analyze, then act• Increase productivity by reducing data

gathering from 75% of workload* to 0% of workload

Effective CollaborationEngineers in each plant

monitor equipment

Equipment monitors equipment and remote engineers are leveraged

• Improve productivity of engineers and operations staff in the plant

Production manages complex events on

their own – external help is by

appointment

Production has help in real time, with experts

• For complex events, reduce event resolution cycle time by 75 – 90% *

Continuous OptimizationOperators

conservatively maintain steady

operations

Operators are enabled to achieve economic and operational optimum

• Improve process unit economics at both local and global level

Typical Way Smarter Way


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Analytics / Intelligence Landscape

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Degree of Complexity

Com

petit

ive

Adv

anta

ge

Standard Reporting

Ad hoc reporting

Query/drill down

Alerts

Forecasting

Simulation

Predictive modeling

Optimization

What exactly is the problem?

What will happen next if ?

What could happen … ?

What if these trends continue?

What actions are needed?

How many, how often, where?

What happened?

Stochastic Optimization

Based on: Competing on Analytics, Davenport and Harris, 2007

Descriptive

Prescriptive

Predictive

How can we achieve the best outcome?

How can we achieve the best outcome including the effects of variability?

INTELLIGENT


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Examples of R&D activities that are creating technologies to enable the Smarter Oil & Gas vision

Two major domains:

- Smart Exploration and Production using Computational Geosciences and High Performance Computing HCP and Reverse Time Migration (with Repsol) Large-scale basin Modeling (Eni & Petrobras) 4D Seismic history matching (with Shell)

- Smart Integrated Operations / Smart Oil Fields Integration infrastructure - IIF (Statoil) Condition-based Maintenance Turnaround optimization (with Statoil)


Angola Launch Event

Examples of R&D activities that are creating technologies to enable the Smarter Oil & Gas vision

Two major domains:

- Smart Exploration and Production using Computational Geosciences and High Performance Computing Large-scale basin Modeling (Eni & Petrobras) HCP and Reverse Time Migration (with Repsol) 4D Seismic history matching (with Shell)

- Smart Integrated Operations / Smart Oil Fields Integration infrastructure - IIF (Statoil) Condition-based Maintenance Turnaround optimization (with Statoil)

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