Energy Issues

A lot of hope lately has been invested in improved methodologies to lower the costs of oil and gas exploration and production and, therefore, improve numbers. One of the most examined of those technologies is digitalization. While it is true that digitalization offers a number of potential benefits, its acceptance in the industry has been tepid, with a few exceptions.

Super, but what does it do and how is it viewed? Those questions were answered in Energy Intelligence, a Petroleum Economist publication. It includes a white paper by AVEVA and Westwood Global Energy Group, entitled Digitalisation Offshore: Is it the secret to sustaining lower operating costs? The report can be accessed at www.petroleum-economist.com.

Digitalization, applied to the oil and gas industry, is composed of six functions. Below are brief descriptions of those functions and their important components, taken directly from the report.

Engineering & Design

•   All collaborators access and update one integrated system. 
•   Change is managed quickly.
•   Achieve zero-clash modeling, including laser data directly within the design.
•   Start-up faster and reduce rework with streamlined design processes. 
•   Understand the true conditions of existing assets, to make right-first-time engineering choices. 
•   Ensure compliance with accurate reporting throughout the project. 
•   Give fast, easy-but-controlled access to the digital asset.

Procure

•   Ensure component data are consistent across engineering, design, materials management and procurement. 
•   Define and control materials iteratively to avoid re-work. 
•   Drive quality improvement through design and build, increasing consistency of information, reducing cost of addressing the impact of change.
•   Share procurement contract management details within a centralized system to avoid disputes.

Build

•   Provide managers better control through integrated workforce planning.
•   Have the right resources and the right materials in place to maximize time. 
•   Accommodate changes easily and reorganize work packages without clashes.
•   Create an efficient, predictable and transparent construction process. 
•   Manage people, materials and equipment seamlessly. 
•   Identify and manage change early on with stakeholder cooperation. 
•   Integrate laser data into designs, to reduce on-site errors to almost nil. 
•   Be aware of problems early on with early-warning indicators, minimizing cost and schedule over-runs. 
•   Lower costs due to less rework and accurate pre-invoice verification between contractors, engineers and project.

Revamp/Refit

•   The system allows for quick creation of data-driven efficiency improvements and tracking operational compliance.
•   Asset modifications can be planned and implemented easily, increasing efficiency and minimizing downtime. 
•   Modification of in-service assets is simplified by creating, managing and tracking engineering data in one place. 
•   The immersive 3D environment allows asset and project information to be integrated, so revamps can be planned and deployed confidently. 
•   Contractual responsibilities are tracked and defined, increasing reliability and understanding of contract-based engineering.

Operate

•   Minimize operational risk, due to one easily-accessible, contextual digital information source.
•   Manage change effectively, as the physical asset is synchronized with its digital equivalent.
•   Give operations engineers a clear picture of full information context for all decisions and optimize reliability and production efficiency. 
•   Decision support capabilities simplify issue identification and resolution. 
•   Hazards are reduced, with processes and assets more familiar, thanks to immersive training simulations.
•   Asset data from multiple sources is translated into readily accessible and actionable information. 
•   The trusted living pointcloud enhances the digital asset, providing a 3D, fully-synchronized representation for optimal asset intelligence.

Handover

•   Streamline project handover, from the EPC-managed CAPEX phase to commissioning and start-up phases. 
•   Reduce costs of information handover management to near zero. 
•   Automatically validate all engineering information for consistency and compliance with contractually-defined information standards. 
•   Map information to operations systems for faster commissioning and start-up. 
•   Contextualize information within the 3D world, saving invaluable time during familiarization. 
•   Solve disputes, thanks to full transparency and auditability of change orders, payment verification and achievements.

The benefits from digitalization can be substantial, including improved safety and less down time, greater data accuracy and real-time results, improved equipment reliability, automatic/remote monitoring and fewer personnel requirements. Why, you may ask, are we not seeing more of it? The report points to several continuing problems in our industry, topped by our reluctance to make changes. This is compounded by large initial capital outlays, integration issues with old/obsolete equipment, and the fear of cyber threats.   

About the Authors

William J. Pike

World Oil

William J. Pike has 47 years’ experience in the upstream oil and gas industry, and serves as Chairman of the World Oil Editorial Advisory Board.