Update on POSC xField WITSML SIG Public Meeting 29 April 2004 Calgary David Archer

POSC xField xField = { SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field, Field of the Future, Digital Oil and Gas Field, … }

The Smart Field measure-model-control … measure-model-decide-execute … throughout the asset lifecycle

Smart Systems From self-guiding missiles to self-replenishing fridges, the basic approach of all “smart technology” is measure-model-control –measure system properties –model actual vs desired behaviour –derive required correction parameters (adaptive control) –implement control ∆ xField Acquire Model Analyze Control Source: Shell

Automation level Time-scale Fast cycle Slower cycle Source: Saputelli SPE 83978

Layered Architecture Ref: SPE 79893

Some related activities CERA DOFF SPE Real Time Operations TIG SPE Digital Energy Study Group API/GCIMT eFields Project Real Time Reservoir Management [TTG Group-OG21] WITSML SIG Strategic Decision Sciences ‘ Roadmap’ UH CIOO … Many internal / joint projects in oil / service companies …

CERA DOFF: Potential Industry benefits / remarks Enhanced recovery: 125 billion BOE Lower operating costs: $4-8 billion/year Increased production rates: increase utilization 2-6% Lower facilities cost: 5-10% (3-5 years) Decreased drilling costs: 5-15% But Benefits are not independent, and they require Integration of higher quality data Significant change in organizations and work processes Source: CERA DOFF executive summary Total asset awareness Acting on awareness Increased use of full asset awareness

Comments from Operators (re: DOFF) Better decisions faster Prediction vs. reaction $250 million USD / year cost savings It’s not about the technology Integrate facilities, wells, subsurface Find right level of ‘smartness’ for each asset

Key xField Technologies CERA 1 Real-time drilling Intelligent completions 3D visualization Remote sensing monitoring & control RTRM 2 Drilling Wells Seismic Facilities Data Management Tools & Software Saputelli 3 RT drilling & completion Integrated asset management RT production optimization 1 CERA DOFF Executive summary 2 TTA report on Real Time Reservoir Management. OG21 - Norwegian Continental Shelf 3 L. Sapultelli, et al. SPE [JPT December 2003] xField = {SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field,…}

Classification of xField … Saputelli 1 Measurement Analysis & Interpretation Decisions & Optimization Change & Control Data Management ChevronTexaco 2 Instrumentation -Surveillance Information -Analysis Interpretations - Optimization Innovation - Transformation SDC 3 Basic Standardized Structured Integrated Optimal 1 L. Sapultelli, et al. SPE [JPT December 2003] 2 T. Unneland, IQPC RT Field Management, February Strategic Decision Science, Roadmap to Enterprise Optimization Study xField = {SmartField, i-field, e-field, Digital Oilfield of the Future, Intelligent Field,…}

Asset Maturity Model (AAM) Basic - Minimum IT structure, ad hoc processes Standardized - COTS solutions with minimum of customization Structured - Configured / customized IT solutions to meet specific needs for the asset Integrated - Assets networked to operation center(s), EPR systems, wide range of applications and vendors Optimal - Smart devices (with human oversight), field performance integrated with back office, feed-forward and feedback loops for optimal control Source: S. Shemwell, SDS, (

POSC xField: suggested work XML standards for collaboration extending footprint of WITSML to include all data types required for Production System Surveillance and Reservoir Surveillance Smart Sensors what is needed for plug-and-play at each level of OSI model API’s for downhole intelligent devices, protocols (SOAP?), metadata and metadata management Market Studies smart surveillance for “shared services” in data acquisition and management, value-added services (pre-processing, analysis, interpretation) publishing,… potential business models, and implementation technologies: web services.

POSC xField Approaches Understanding / problem identification - pursue problems will clear (shared) business purposes Adopt / adapt WITSML -new Data Types to focus on Production Operations - production volumes, production tests, temperature, pressures Focus = Architectures + Data Develop standards via Pilot Projects Players = oil + service + regulators Incremental, rapid results Catalogues of related work / relevant standards

POSC xField SIG events 8 May 2003 (Houston) 23 May 2003 (London) 19 November 2003 POSC Annual Meeting 14 January 2004 IOO Workshop 17 May 2004 UH 13:30-16:30 June or September 2004 (Europe)

CGEY HP Microsoft SAIC SGI Invensys OSISoft Paras POSC UK DTI Anadarko BP ExxonMobil Marathon Shell Halliburton Schlumberger Accenture Total Univ. of Houston ABB SDS AspenTech eProduction Solutions TheEnergyForum xField meeting attendees

An oil company perspective on Standards Standards save money! uniform hardware, applications, data save $100 Million/year Standards lead to better science and increased value Use standards to address interface issues It’s better to get common than to be best Industry standards provide cost effective bridge to the digital oil field

Source: Downes & Mui, “Unleashing the Killer App”

The Right Players - clear focus BP & Statoil Baker, Halliburton, Schlumberger, NPSi Commitment Initial funding by oil companies Oil & service companies remain engaged after initial delivery Processes Practical, incremental approach Clear focus on target outcomes - through implementation Frequent communications - steering & technical teams Technologies XML, SOAP Output XML Schema + Server API + sample implementation Openness / evolution Transfer to POSC for commercially neutral custody, publication, promotion and evolution Some lessons learned / best practices

David Archer President / CEO 24 Greenway Plaza Suite 1000-B Houston, TX phone fax