Glimpses of Modern Industrial Automation

Digital Transformation in Oil & Gas

• Being an Electronics and Instrumentation Engineer, I have a keen interest in Latest Digital Technologies that can make our lives easier. This article is a humble attempt to summarise the information I have been able to gather with my knowledge hunt. Thus comes this short article, "Digital Transformation in Oil & Gas" that is aimed to give the reader an impression about the Digital Technologies in Oil & Gas that can be helpful to take some digital initiatives in our own Organisation.

• From my side, I have developed a small application which is Instruments/Spare List Effective Management using Visual Basic Excel and I have named it "Instrumentation Management System (IMS)". One can download the following working steps file to get an idea: IMS Steps.mht. In case anyone is interested  I will also share my "IMS" prototype which can be useful for now to maintain the Instruments/Spare List Effectively, Print Particular Instrument/Spare Details with a single-click and Identify the Non-Available(Quantity =0) Instrument/Spare List so that we can identify the Non-Available Spare parts earlier and procure them on-time. Maintenance Management is yet to be developed as it is difficult to develop a robust maintenance management system using Visual Basic by including Preventive Maintenance details, Generating reports like Calibration Report, Job Completion Report etc,.. and work orders etc,.. but hopefully I will try to develop it in future. Now coming to the Digital Transformation in Oil and Gas......

·        Preface:

• Recently, ONGC published "Energy Strategy 2040" Report and according to the report, ONGC has a greater vision in investing over "Digital Transformation" by establishing a "Digital Centre of Excellence (DCoE)" under "Renewables, Digital and Technology (RDT)" Team headed by Director (RDT).

• The DCoE will be responible for:

  • Defining and driving the digital agenda

  • Supervising execution and monitoring performance of digital initiatives

  • Building long term capability within ONGC

  • Building and managing ONGC's strategic partnerships in digital 

• Once DCoE is implemented according to the road map 2040 then ONGC can join the pool of Exploration and Production Companies which are focusing on implementing twelve underlying technology drivers that are trying to reshape the E&P Industry by enabling them to achieve three key strategic objectives: increased production, reduced costs, and enhanced efficiency.  

  • Big-data and analytics

  • Cloud computing and storage

  • Collaborative technology platforms

  • Real-time communication and tracking

  • Mobile connectivity and augmented reality

  • Sensors

  • 3D scanning

  • Virtual reality

  • Additive manufacturing

  • Unmanned aerial vehicles

  • Robotics and automation

  • Cyber-security and block chain

• Digital Oil Field & The Great Crew Change

  • Oil and gas (O&G) companies are currently experiencing major disruption. It’s becoming increasingly difficult to find new sources of oil. As a result, exploration and development investments are progressively made in remote and environmentally sensitive areas, adding significant cost and complexity to capital projects. More stringent regulations are increasing constraints on the business. At the same time a generation of experienced employees are retiring from the industry workforce. Exacerbating the current environment is the precipitous drop in oil price, putting the entire industry under pressure.

  • Persistent volatility and production oversupply in global energy markets over the past three years, and the resulting significant and sustained depression of oil prices, have profoundly impacted the entire O&G ecosystem. To thrive in both the current market conditions and the projected future low carbon economy, it will not be enough for most O&G companies to simply enhance the way they currently operate.

  • Today’s market and industry outlook are forcing O&G companies to re-examine core business capabilities, and explore new ways to execute business strategies in a dynamic and volatile marketplace. Whether large or small, national or international, digitalization of key operational workflows in O&G companies will be critical for success in the years to come.

  • Its is estimated that the most of the cumulative experience and knowledge will be lost to the oil and gas industry in the next decade due to huge retirement of engineers in petroleum industries.

  • Therefore, Integrating high-tech systems and digital technologies in the Oil & Gas Industry will improve the efficiency and production.​​

1. Introduction :Key features needed for Operational Excellence in the Oil and Gas Industry

• Digital Transformation

  • IoT & IIoT - Industrial Internet of Things

  • Predictive Analytics and Maintenance Management System

  • Big Data

  • Data Analytics

  • Artificial Intelligence (AI)

• Employees and Workforce

• Improvisation of Ageing Assets

2. Digital Transformation

The end goal of company is to drive digital transformation across the entire operational life cycle to achieve the following factors:

• Improved labor utilization

• Operational Efficiency 

• Simplicity - Speed of execution and processing

• Early Failure warning savings, particularly related to shutdowns

• Increased asset availability in multi-use & multi-purpose facilities

• Reduced maintenance costs

• Better adherence to compliance requirements

• Reduced unplanned downtime

• Improved asset utilization

• Smart Oil Field

  • Real-Time Data

  • Integrated Production Models

  • Integrated Visualization

  • Intelligent Alarming & Diagnostics

  • Enhanced Business Processes & Procedures

3. IoT & IIoT

• IoT - Internet of Things

  • Internetworking of physical devices, vehicles, buildings and other things

  • IoT is about consumer-level devices with low risk impact when failure happens.

• IIoT - Industrial Internet of Things

  • IIoT uses more sophisticated devices to extend existing manufacturing and supply chain monitor to provide broader, more detailed visibility and enable automated controls and accomplished analytics.

  • IIoT connects critical machines and sensors in high-stakes industries such as Aerospace, Defence, Healthcare and Energy.

  • Industry 4.0 is the trend towards automation and data exchange in manufacturing technologies and processes which include cyber-physical systems (CPS), the internet of things (IoT), industrial internet of things (IIoT), cloud computing, cognitive computing and artificial intelligence.

• IIoT Technologies

  • RFID Technology

    • Logistics and Supply

    • Manufacturing

    • Transportation

  • Well Performance - Emerson Process Management

  • Augmented Reality

  • Edge Technology

  • Machine Learning - Predictive Analytics

  • Effective Asset Monitoring 

  • Computerised Maintenance Management System

  • Enterprise Asset Management​

• Applications of IIoT Technologies implemented

  • RFID Technology implemented by Mojix - https://www.youtube.com/watch?reload=9&v=PBPWZ5s8jOM

  • Wearables using Augmented Reality

  • DAQRI implemented Worksense Software partenered with Amazon Web Services, SAP (Show - Tag - Guide - Scan - Model) for creating smart glasses and smart Helmet.

  • https://www.youtube.com/watch?v=i8QpyMRVdYM - DAQRI provided Fabio Perini's Wearable Service Line delivers a new digital revenue channel while increasing Overall Equipment Effectivness for their customers.

  • https://www.youtube.com/watch?v=gl8EzQgBra4

  • https://daqri.com/worksense/

  • One can even buy it - https://daqri.myshopify.com/products/daqri-smart-glasses

• On a larger scale, businesses that implement IoT can also unlock these benefits:

  • Asset Tracking. The ability to know where each item is at any moment of time

  • Real-time Inventory Management. The ability to control the asset flow in real-time and use real-time information for strategic purposes.

  • Risk prevention/Data privacy. IoT can help ensure better risk management and data security

• Digital Upstream – Following fields can be digitalised

  • Exploration

  • Well Advisor

  • Intelligent Reservoir 

  • Drill Advisor

  • Digital Asset Integrity - Digital Twin

  • Development

  • Drilling

  • Production

• Essential Characteristics of Smart Oil Field

  • IIoT

  • Big Data & Analytics

  • Artificial Intelligence

  • Mobile and Cloud

  • Network and Security

• Applications of Smart Oil Field

  • Using real-time information for delivering safe, reliable and efficient work, well construction company BP is investing in Big Data & AI

  • JATONTEC has successfully conducted initial oil field trial in two major oil fields in China. Deployments are expected to ramp up quickly in the near future.

• Technologies Implemented 

  • DIGITAL TWIN - digital replica of a living or non-living physical entity. By bridging the physical and the virtual world, data is transmitted seamlessly allowing the virtual entity to exist simultaneously with the physical entity.

    • AI - Visual perception, speech recognition, decision-making and translation

    • Cognitive Computing

    • Service Bus

    • Hybrid models

  • Organisations implementing Digital Twin Applications/solutions

    • Aker Solutions

    • GE aircraft engine

    • Kognifai -Kongsberg digital

    • Asset Digital twins -AVEVA

    • Sneider Electric

    • DAQRI

4. Predictive Analytics and Maintenance

Predictive analytics has the potential to revolutionize the operations of an oil and gas enterprise - in upstream, midstream, and downstream. Areas that can benefit from rapid enaction on real-time insights include:

• Maintenance and optimization of assets,

• Product optimization,

• Risk management and HS&E,

• Storage and logistics,

• Market analysis and effectiveness.

• Schneider Electric is just reading the current and doing the IOT for predicting the failure of motors etc,...

• A computerized maintenance management system or CMMS is a software that centralizes maintenance information and facilitates the processes of maintenance operations. It helps optimize the utilization and availability of physical equipments like vehicles, machinery, communications, plant infrastructures and other assets. Also referred to as CMMIS or Computerized Maintenance Management Information System, CMMS systems are found in manufacturing, oil and gas production, power generation, construction, transportation and other industries where physical infrastructure is critical.  A CMMS focuses on maintenance, while an Enterprise Asset Management (EAM) system takes a comprehensive approach, incorporating multiple business functions. A CMMS starts tracking after an asset has been purchased and installed, while an EAM system can track the whole asset lifecycle, starting with design and installation.

• CMMS plays a critical role in delivering reliable uptime by providing:

  • Asset visibility: Centralized information in the CMMS database enables maintenance managers and teams to almost instantly call up when an asset was purchased, when maintenance was performed, frequency of breakdowns, parts used, efficiency ratings and more.

  • Workflow visibility: Dashboards and visualizations can be tuned to technician and other roles to assess status and progress virtually in real time. Maintenance teams can rapidly discover where an asset is, what it needs, who should work on it and when.

  • Automation: Automating manual tasks such as ordering parts, replenishing MRO inventory, scheduling shifts, compiling information for audits and other administrative duties helps save time, reduce errors, improve productivity and focus teams on maintenance — not administrative — tasks.

  • Streamlined processes: Work orders can be viewed and tracked by all parties involved. Details can be shared across mobile devices to coordinate work in the field with operational centers. Material and resource distribution and utilization can be prioritized and optimized.

  • Managing field workforces: Managing internal and external field workforces can be complex and costly. CMMS and EAM capabilities can unify and cost-effectively deploy internal teams and external partnerships. The latest EAM solutions offer advances in connectivity, mobility, augmented reality and blockchain to transform operations in the field.

  • Preventive maintenance: CMMS data enables maintenance operations to move from a reactive to a proactive approach. Data derived from daily activities as well as sensors, meters and other IoT instrumentation can deliver insights into processes and assets, inform preventive measures and trigger alerts before assets fail or underperform.

  • Consistency and knowledge transfer: Documentation, repair manuals and media capturing maintenance procedures can be stored in CMMS and associated with corresponding assets. Capturing and maintaining this knowledge creates consistent procedures and workmanship. It also preserves that knowledge to be transferred to new technicians, rather than walking out the door with departing personnel.

  • Compliance management: Compliance audits can be disruptive to maintenance operations and asset-intensive businesses as a whole. CMMS data makes an audit exponentially easier by generating responses and reports tailored to an audit’s demands.

  • Health, safety and environment: In line with compliance management, CMMS and EAM offer central reporting for safety, health and environmental concerns. The objectives are to reduce risk and maintain a safe operating environment. CMMS and EAM can provide investigations to analyze recurring incidents or defects, incident and corrective action traceability, and process change management.

  • Resource and labor management: Track available employees and equipment certifications. Assign specific tasks and assemble crews. Organize shifts and manage pay rates.

  • Asset registry: Store, access and share asset information such as:

    • Manufacturer, model, serial number and equipment class and type

    • Associated costs and codes

    • Location and position

    • Performance and downtime statistics

    • Associated documentation, video and images such as repair manuals, safety procedures and warranties

    • Availability of meters, sensors and Internet of Things (IoT) instrumentation

  • Work order management: Typically viewed as the main function of CMMS, work order management includes information such as:

    • Work order number

    • Description and priority

    • Order type (repair, replace, scheduled)

    • Cause and remedy codes

    • Personnel assigned and materials used

  • Work order management also includes capabilities to:

    • Automate work order generation

    • Reserve materials and equipment

    • Schedule and assign employees, crews and shifts

    • Review status and track downtime

    • Record planned and actual costs

    • Attach associated documentation, repair and safety media

• Some of the best CMMS Softwares

  • IBM Maximo

  • Hippo CMMS

  • UpKeep Maintenance

  • Smart Sheet

  • EZInventory and many more

5. Big Data Analytics and Artificial Intelligence

• AI has already been incorporated into a number of sectors within the oil and gas industry as part of global efforts to digitally transform exploration and production operations. But what is the future of AI technology in the oil and gas industry?

• The industry seems to have readily accepted digital technologies such as AI, and is optimistic about the potential of this technology.

• Aker BP Improvement senior vice president Per Harald Kongelf said: “The oil and gas industry is facing a rapidly changing digital landscape that requires cutting-edge technologies to cultivate growth and success.”

• IBM senior manager Brian Gaucher said: “Cognitive environments and technologies can bring decision makers together, help them seamlessly share insights, bring in heterogeneous data sets more fluidly, and enable target analysis and simulation.”

• AI Applications

  • HR

  • Finance

  • Maintenance  and Capital Asset management

  • Predictive analysis to get insights for better performance

  • Preventative Maintenance Programs

  • Capital Planning

  • Sustainable environment development

• Case: Biodentify - DNA analysis to find oil

  • Biodentify of Delft, the Netherlands, doing DNA analysis of microbes from soil/ seabed samples to find hydrocarbons

• AI - Drilling Performance Optimization

  • Hole condition Avoidance of stuck pipe

  • Mud Flow IN/OUT Prediction for NPT

  • Drill bit selection

  • Drilling process analysis and breakdown operations

  • Digitalization & AI in logging analysis

• AI - Production Optimizations

  • Gas Lift Optimizations

  • Applied Digitalization & AI - Assets (Asset Integrity)

  • Equipment problems follow a certain course of action able to spot with ML

  • Safety Valve Monitoring

  • Seismic Sections Images to SegY

  • Salt Prediction and Seismic Inversion

• Ground water monitoring

• Fuel Price Prediction using AI

• Applications of Artificial Intelligence adopted by some organisations:

  • In January 2019, BP invested in Houston-based technology start-up Belmont Technology to bolster the company’s AI capabilities, developing a cloud-based geoscience platform nicknamed “Sandy.”

    • Sandy allows BP to interpret geology, geophysics, historic and reservoir project information, creating unique “knowledge-graphs.”

    • The AI intuitively links information together, identifying new connections and workflows, and uses these to create a robust image of BP’s subsurface assets. The oil company can then consult the data in the knowledge-graph, with the AI using neural networks to perform simulations and interpret results.

  • In March 2019, Aker Solutions partnered with tech company SparkCognition to enhance AI applications in its ‘Cognitive Operation’ initiative.

    • SparkCognition’s AI systems will be used in an analytics solution platform called SparkPredict, which monitors topside and subsea installations for more than 30 offshore structures.

    • The SparkPredict platform uses machine learning algorithms to analyse sensor data, which enables the company to identify suboptimal operations and impending failures before they occur.

  • Shell adopted similar AI software in September 2018, when it partnered with Microsoft to incorporate the Azure C3 Internet of Things software platform into its offshore operations.

    • The platform uses AI to drive efficiencies across all sections of Shell’s offshore infrastructure, from drilling and extraction to employee empowerment and safety.

  • Baker Hughes, GE Company and C3.ai Announce Joint Venture to Deliver AI Solutions Across the Oil and Gas Industries

    • Companies will deliver Artificial Intelligence (AI) platform and applications with combined industry and technology expertise to accelerate the digital transformation of the oil and gas industry. -  https://bakerhughesc3.ai

• Big Data Analytics:

  • New Big Data Sources

  • Smart Instrumentation

  • Operations

  • Video Surveillance

  • Financial transactions

  • Chevron uses Hadoop (Big Data -Parallel Programming software) for seismic data processing (IBM BigInsights)

• Data Analytics and Visualization using Tableau

  • With Tableau, you can analyze the data for value that makes you more than a commodity, whether it’s increasing output, reducing downtime, or improving customer service. With an efficient platform for gaining insights across geographies, products, services, and sectors, you can maximize downstream profits and minimize upstream costs. You can also help clients, partners, investors, and the public understand and visualize your value with interactive online dashboards.

  • With Tableau, ExxonMobil has empowered customers to get the answers they need themselves, improved data quality for work in the Gulf of Mexico, and saved a remarkable amount of time—in some cases, up to 95%. ExxonMobil was also building a culture of safety using Tableau

  • Getting ahead of the metrics with data visualizations at GE Oil & Gas

    • Cleaned up dashboards and business quality metrics for reporting

    • Increased data accuracy by 90% compared to previous years

    • Grown reporting and data visualization usage across the business

• Benefits of Adopting Big Data in The Oil Industry

  • According to Mark P. Mills, a senior fellow at the Manhattan Institute, “Bringing analytics to bear on the complexities of shale geology, geophysics, stimulation, and operations to optimize the production process would potentially double the number of effective stages, thereby doubling output per well and cutting the cost of oil in half.”

  • A tech-driven oil field is already expected to tap into 125 billion barrels of oil and this trend may affect the 20,000 companies that are associated with the oil business. Hence, in order to gain competitive advantage, almost all of them will require data analytics to integrate technology throughout the oil and gas lifecycle.

​​6. Conclusion 

• Earl Crochet , Director of Engineering and Operational Optimization, Kinder Morgan said on OPEX Online 2019 conference speaker is that “In-house expertise and third-party expertise, in an ideal situation, should work together. In-house expertise should primarily manage the day-to-day, and the basic design should be supported by ongoing continual support in-house. A lot of this becomes tribal knowledge. However, you may need to rely on third-party expertise to fill in gaps in your knowledge, to help during a transition, or to deal with topics that are too technical and specific to require a full-time in-house professional.”

• Oil and gas companies need to become predictive using technologies that can help them to be aware of what will occur so that they can increase asset availability by:

• Monitoring, to know what is happening right now by gaining a near-real time view of process and asset status.

  • Becoming prescriptive to understand what should happen. This will allow companies to clearly look at the options and make decisions that will optimize operations. - Prescriptive Analytics

  • Becoming descriptive to understand and be able to explain up through management what happened and share these insights with the organization to help make informed decisions. 

  • Today, digital is a key enabler in oil and gas to reduce costs, make faster and better decisions, and to increase workforce productivity.

• Last but not the least, there was one question by Yuval Noah Harari that “As Computer becomes better and better in more and more fields, there is a distinct possibility that computers will out-perform us in most tasks and will make humans redundant. And then the Big Political and Economic question of the 21st century will be, ‘What do we need Humans for?’ or atleast ‘What do we need so many Humans for?’ ”  

By Upendra Chokka

AEE (Instrumentation)

Rajasthan Kutch-Onland Exploratory Asset

ONGC Jodhpur