WITSML IN THE REAL WORLD Facing the necessity of remote operations Jamey Webster Chief Executive Officer November 6, 2007.

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Presentation transcript:

WITSML IN THE REAL WORLD Facing the necessity of remote operations Jamey Webster Chief Executive Officer November 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 – accidents 7 fatal 8 fatalities and 29 injuries UKCS –1976 – million passengers transported 7 fatal accidents –88 lives 42 non-fatal reportable accidents

Global Conflict 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)Cattle Network

Economy Service Provider Internal Costs OffshoreRemote Specialized 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 Insurance23,500/year$5,500/year Operator Costs OffshoreRemote 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