Shell Global Solutions PRODML Business Overview Ron Cramer

Shell Global Solutions 2 E&P Data Problem – How can PRODML Help? Real time data rich, information poor Exxon, BP, Shell, Chevron, Statoil have millions of electronic instruments Generating terabytes of data every day Fields are becoming more and more electronic How can PRODML help turn this data into useful information?

Shell Global Solutions 3 What is this data? Now ESD F&G Process - Reservoir - Well - Surface - Pipeline Devices - End elements, DTS - RTU/PLC - SCADA/DCS Future Sensor technology will enable the capture of continuous streams of data from every part of the physical environment

Shell Global Solutions 4 Disintegrated applications and models? Abnormal Situation Management Production Allocation - Energy Components Optimization Applications – Case Lift Maintenance Management - SAP Reservoir Simulations - MBAL Well Simulations - Prosper Pipe Line Simulations - Pipesim Process Simulations - Romeo

Shell Global Solutions 5 What is this thing called Optimization? Optimization - a word often used, but rarely understood Often mentioned but rarely achieved If achieved rarely sustained One definition – Improving the bottom line by timely, effective and sustained use of sufficient, good production information

Shell Global Solutions 6 Gold in them thar data? Use data to enable continuous optimization - Artificial Lift Optimization - Continuous estimate of well/reservoir oil, gas, water flows - Safeguard integrity - Abnormal situation management - Right information to right people, at right time, in right context, in right workspace to serve right work process - Enable remote operations and real-time process control Examples follow

Shell Global Solutions 7 Gaslift Optimization Time Oil Production. True Production PotentialPeriodic Manual OptimizationNo Optimization Activity

Shell Global Solutions 8 ESP Optimization

Shell Global Solutions 9 Water Injection Optimization

Shell Global Solutions 10 Bulk Separator Gas Flow Oil Flow Water Flow WELL MEASUREMENTS At Least THP BULK MEASUREMENTS Manifold THP Other Wells Continuous Allocation to estimate well flows

Shell Global Solutions 11 Choke opening Oil and gas Optimal operation region Continuous Well Control

Shell Global Solutions 12 Technical Integrity Problem WWho’s watching the unmanned wells and facilities ‘round the clock?

Shell Global Solutions 13 Real Time Data to Safeguard Reservoir Integrity << New strategy Significant production declining Drilling new wells Injecting Water Reservoir Fractured

Shell Global Solutions 14 Much data is available – are we using it effectively? Are folks aware of the opportunities? Data quality issues Issues

Shell Global Solutions 15 Potential Enabled Business Benefits Improved technical integrity Improved safety Increased production Reduced OPEX

Shell Global Solutions 16 Applications doing optimization Abnormal Situations Hydrocarbon Accounting Maintenance Management Reservoir Simulations Well Simulations Pipe Line Simulations Process Simulations Real Time Data ESD F&G Process –Reservoir –Well –Surface –Export –Pipeline Data in (input) Data out (set points or recommendations) Data Across The PRODML Bridge