The Wireless Digital Oil FieldLessons from the Field

Duval YeagerAVP Product Marketing

Redline Communications

Agenda

• Shell PDO Oman Case Study• 5 biggest challenges in oil field wireless deployment• Q & A

Saeed Al ShidhaniHead of IT projects

Special Thanks to:

Dr. Khamis Al-Busaidi Automation & Smart fields Manager

Petroleum Development Oman LLC.

Customer

Challenge

Case Study – PDO / Shell Oman

Petroleum Development of Oman- Shell share 34%

Coverage area of 45,000Km2

Over 6,000 connection points.

45,000 Km2

An area theSize of Switzerland

Area:Capacity:

Solution 52 Base StationsOver 13 Gbps total capacity.

Area:Capacity:

Petroleum Development OmanA Shell Oil JV

Oman

Spectrum

Power

Case Study – PDO / Shell Oman

Unlicensed 5.4 GHz limited with 1/4th the power output of that allowed in USA:- 1 watt vs 4 watts EIRP.

No power available. All communications equipment must be self-powered (solar).

LocationParts of oil field are two full days travel from regional office. Required service and maintenance must be minimized.

Petroleum Development OmanA Shell Oil JV

Additional Challenges

Wireless Challenges in the Oil Field

Range & Capacity+ Large areas – Many devices

Absolute Reliability & Safety+ Reliability & safety under any condition.

Data Flow+ Uplink-centric and dedicated access

Mobile Assets Drilling rigs, Work-overs, Construction, etc.

Any Frequency+ Different areas require different frequency

Base Station Towers

Construction of towers is the #1 Capital Expenditure in the SmartField Network.

Foundation

$200K - $800K per TowerTower

Grounding

Power

Lighting

Frequency Range Comparison

600 MHz

3.5 GHz

90° Base Station Sector 20 MHz Channel - OLOS

2.4 GHz

5.8 GHz

Lower frequencies offer better range.

4G Remotes = Consumer

* T-Mobile cost for complete 3G to LTE upgrade over next 2 years.Source T-Mobile Q2 2012 operating Results report

** Subsidy cost for mobile devices over 8-year lifetime of LTE network Source: CTIA

• Cost of remote radio is number one factor in mobile services business case.• Replacing radio device is simple.• Low or no penalty for radio failure.

Costs Per Operation Per BTS Per Sub

LTE System Upgrade* $4 billion $114,285 $8

Mobile Device** $91 billion $2.6 million $175

Industrial Networks• The environment is very harsh.• Field devices are difficult to replace.• Failed devices can cause large costs.• Reliability usually is most important

factor in equipment selection.

* Calculated at $40 per barrel

Item Production/day Cost/day

Well Head 1,000 Barrels $40,000*

Drilling Rig 100 Feet $40,000

A Difficult Environment

-40 to 130º F : Operational Water/Dust : IP-67+Corrosion: New AlloysNo moving parts (fans, etc.)Lifecycle: 20+ Year MTBFUL/CSA Class-1 Div-2 Safe

Manufacturer specs should all have lab certs.

Data Flow

Radios designed for Service Providers are designed for networks that are predominately DOWNLINK

Oil & Gas networks are predominately UPLINK

Item UL DL ~% of DOF

Automation 32 Kbps 8 Kbps 58%

Video 8 Mbps 80 Kbps 30%

Corp Access 2 Mbps 8 Mbps 5%

Wi-Fi Devices 1 Mbps 8 Mbps 5%

Voice (VoIP) 23 Kbps 23 Kbps 2%

Capacity Calculations M2M (SCADA) data from automation

(RTU/PLC) is constant, not “bursty” like Internet or email traffic.

M2M must be considered as a dedicated service.

Drilling Rigs have multiple IP services simultaneously, like the branch office of a large bank.

Capacity for these must be planned for in advance.

RTU

RTU

32 K

bps

32 Kbps

Item CIR PIR

RTU 32 Kbps 32 Kbps

Voice (VoIP) 23 Kbps 23 Kbps

Video 512 Kbps 4 Mbps

Corp Access 2 Mbps 8 Mbps

Wi-Fi Devices 1 Mbps 8 Mbps

2 - 10 Mbps

*CIR (Committed Information Rate) = Dedicated Data*PIR (Peak Information Rate) = Allowance for Bursty Data

M2M Capacity Example

The Marmul area in PDO is roughly 12 miles square or 144 miles2 (373 Km2).

Dedicated Data (CIR) is over 200 Mbps

Peak Data Rates (PIR) - or burst data is close to 1 Gbps.

Marmul area PDO Oman.

1,300 well RTU at 128 Kbps800 well video + Wi-Fi at 6 Mbps 4 drilling rigs at 10 Mbps

Petroleum Development OmanA Shell Oil JV

Connected Rig

Auto-acquiring Terrestrial Radios

Auto-Acquiring Radios – Not Mobile

Area of circle = πr2

r=5

Mobile antenna requires 19 times more Base Stationsfor complete nomadic coverage

Mobile antenna gain5 Km range from Base Station~78 Km area around Base Station

15 dBi antenna gain20 Km range from Base Station~1,257 Km area around Base Station

r=20400% range10 11 1298

654 7

1 23

151413 16

1718

19

15 dBi antenna gain20 Km range from Base Station~1,257 Km area around Base Station

r=20400% range

Spectrum

Non-Line of Sight Near-Line of Sight Line of Sight

200 700 900 1.9 2.4 2.5 3.5 5.2 – 5.8 10 30 60 80

Radio & TV Cell 3G Wi-Fi LTE WiMax Un-Lic Licensed Microwave unlic Sub-mm

MHz MHz MHz GHz GHz GHz GHz GHz GHz GHz GHz GHz

*Country dependent

Unlicensed Bands*

White Spaces

Spectrum Support

<700MHzWhite Spaces 900MHz 1.7GHz 2.4GHz 2.5-2.7GHz 3.3-3.7GHz 4.4GHz 4.9GHz 5.2-5.8GHz

X X X

X X X

X X X

X X

X X X

DOCSIS®

Spread Spectrum

Network Performance

DL Mbps UL Mbps Range mi Latency ms M2M Security QoS IP Rugged

90 90 0.5 <10 No AES No Yes Yes

100 12 3 50 No AES SF No No

44 6 1 60 No AES SF No No

14 2 5 30 No None DOCSIS No No

3 3 5 40 Yes None No No Yes

DOCSIS®

Spread Spectrum

Comparing 20 MHz radio channel at 2.x GHz frequency

PDO Results

• 2011 became the third highest production year in PDO history with a total of 1,026,000 barrels of oil equivalent per day.

• 2012 the second highest with 1,168,805 boepd.

• Drilling time reduced from 39 days to 14 days bringing wells online quicker and reducing the per-well cost by $5 million.

• 36 times more data is collected, allowing more accurate and faster decisions.

“Increased collaboration has allowed for better safety and improved workflow.”

— Saeed Al Shidhani, Head of IT projects, PDO

Petroleum Development OmanA Shell Oil JV

Conclusions• Range and capacity of the wireless system should be your

number one concern for CAPEX reduction.• Reliability is key to OPEX reduction.

– Wi-Fi and LTE: YES– Consumer grade Wi-Fi and LTE: NO!

• Know your data flow!– Industrial M2M data IS DIFFERENT than Internet & email traffic!

• Roaming Assets can be a headache. – Solve this application early on.

• Find your global spectrum/technology– Try to avoid mixing technologies if possible.

Thank You

Duval Yeagerdyeager@rdlcom.com+1-786-537-9637

Questions?