WITSML IN THE REAL WORLDFacing the necessity of remote

operations

Jamey WebsterChief Executive OfficerNovember 6, 2007

Agenda

• Value and benefits of WITSML technology• Global issues require remote solutions

– Safety– Efficiency– Economics

• How do we get there?• Conclusions

Value and benefits of WITSML• Integration

– Past• Integration through single service

provider• Did not allow for best in class

technology• Remote monitoring difficult

– Present• WITSML allows for integration and

best in class technology• Remote monitoring with best in class

technology is not only possible but should now be essential

Rigs and the U.N. General Assembly 192 countries represented in the U.N.

6 official languages Spoken

75 different languages interpreted

150 interpreters

Global issues require remote solutions

• Why Remote?– Safety– Efficiency– Economics

Safety

Figure 1:  Fatal and Major Injuries 1997/1998 – 2006/2007p

    

Helicopter statistics

• GOM– 1997 – 2002

• 36 accidents• 7 fatal• 8 fatalities and 29 injuries

• UKCS– 1976 – 2002

• 48 million passengers transported• 7 fatal accidents

– 88 lives• 42 non-fatal reportable accidents

Global Conflict

77

273

73363246

Source: Baker Hughes International rig count September 2007

The field is a dangerous place to work!

Source: Control Risk Group Risk Management Solutions 2007

Efficiency• Enrollment in U.S. petroleum

engineering programs in 2004 was 2,500, down from 12,000 in 1982

• as many as 40% of U.S. petroleum engineers currently employed will retire before 2014

• The average age of a petroleum engineer, who advises on the best way to develop hydrocarbon reservoirs, is 49 years. Source: "Experienced Oil And Gas Hands Become A

Scarce Commodity" Cattle Network (February 14, 2006)

EconomyService Provider Internal Costs

Offshore RemoteSpecialized Safety Training $5,000/analyst $0.00

Transportation $1,000 - $10,000/movement $0.00

Equipment (nomex coveralls, steel toe boots, safety goggles, etc.)

$3,000/year $0.00

Personnel Salary $150,000 - $190,000/year $90,000 - $125,000/year

Insurance 23,500/year $5,500/year

Operator CostsOffshore Remote

Transportation & Logistics $7,000/person/60 day well (estimated) $0.00

Insurance ?????? $0.00

Room & Board $175/person/day (estimated) $0.00

How do we get there?

• Real World use of WITSML is happening now• Operators must change their mindset on the

value and benefits of remote operations- Does not require a multi-million dollar visualization center

• We must protect our people as strongly as we protect our data

- Often remote monitoring is refused due to data security issues

• The reality of the world we live in both controllable and uncontrollable must be considered in the decision process

Conclusions

• Remote monitoring and analysis of wells is a reality– Made possible and cost effective by WITSML

• Remote monitoring can help us mitigate risks:– Economic– Political– Safety