Ministry of Education and Science of Russian Federation

Ministry of Education and Science of Russian Federation Faculty of the Development of Oil & Gas Fields Department of offshore oil and gas fields development INFORMATION COMMUNICATION TECHNOLOGIES in oil and gas industry Done by MSs students: Alexey Gurin Gorbadey Michael Simukov Denis Checked by: Professor, Full doctor of science Nikolai A. Eremin Moscow 2016

Content Abstract Keywords Introduction 1. ICT definition 2. ICT history 3. Impact of ICT in oil and gas exploration 3. 1. Impact of ICT in oil and gas upstream operations 3. 2. Scada technology for upstream oil exploration 3. 3. Impact of ICT In Oil And Gas Downstream Operations 4. Bibliometric and patent analysis 4. 1. Article analysis 4. 2. Patent analysis Conclusion References 5 Q&A 2

Abstract Information and Communication Technology (ICT) is of great importance to almost all aspects of oil and gas operations, from upstream to downstream operations. ICTs help to optimize oil and gas processes and thus improves the efficiency and viability of oil and gas operations. 3

Keywords Information Communication Technologies, ICT in oil and gas industry, history of ICT, ICT implementation, ICT for business challenges, big data. 4

Introduction The economy of many countries is currently supported by oil, which is the major non-renewable energy source. ICTs play an important role in increasing productivity and efficiency in many sectors of the economy. Oil companies in particular adopt ICTs to improve the efficiency and effectiveness of their operations, as well as to aid management decision making. ICT has a high impact in oil and gas operations. For example, in upstream operations ICTs and related technologies may provide possibilities for expanding proven crude oil reserves, improving the rate of crude-oil extraction from existing wells, and providing further means to discover new wells. 5

by Michail Gorbadey 1. ICT definition Information and communications technology (ICT) is an extended term for information technology (IT) which stresses the role of unified communications[4] and the integration of telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio -visual systems, which enable users to access, store, transmit, and manipulate information. [5] Source: "Information and Communication Technology from". FOLDOC. 2015 -09 -19. 6

by Michail Gorbadey 2. ICT history There are 4 main ages that divide up the history of information technology: • Premechanical • Mechanical • Electromechanical • Electronic Only the latest age (electronic) and some of the electromechanical age really affects us today, but it is important to learn about how we got to the point we are at with technology today. Source: en. wikipedia. org/ICT_history 7

by Michail Gorbadey 2. ICT history Premechanical The premechanical age is the earliest age of information technology. It can be defined as the time between 3000 B. C. and 1450 A. D. We are talking about a long time ago. When humans first started communicating they would try to use language or simple picture drawings known as petroglyths which were usually carved in rock. Source: en. wikipedia. org/ICT_history 8

by Michail Gorbadey 2. ICT history Mechanical The mechanical age is when we first start to see connections between our current technology and its ancestors. The mechanical age can be defined as the time between 1450 and 1840. Source: en. wikipedia. org/ICT_history 9

by Michail Gorbadey 2. ICT history Electromechanical Now we are finally getting close to some technologies that resemble our modern-day technology. The electromechanical age can be defined as the time between 1840 and 1940. Source: en. wikipedia. org/ICT_history 10

by Michail Gorbadey 2. ICT history Electronic The electronic age is wha we currently live in. It can be defined as the time between 1940 and right now. The ENIAC was the first highspeed, digital computer capable of being reprogrammed to solve a full range of computing problems. The personal comptuer was developed (Apple II). Source: en. wikipedia. org/ICT_history 11

by Alexey Gurin 3. Impact of ICT in oil and gas exploration 3. 1. Impact of ICT in oil and gas upstream operations Oil fields are becoming part of an ICT network, as all of them are increasingly connected through the internet and monitored in real time. All the components of oil fields, including the oil wells, pumps, pipelines, and oil rigs are interconnected, with each component having an IP address. The petroleum industry uses the computing capacity provided by major IT companies. These IT companies provide capacity to geoscience departments of MNOCs to manipulate data of oil wells using the 3 D seismic technology which makes it possible to monitor changes in oil fields. Source: http: //www. intelligentsolutionsinc. com 12

by Alexey Gurin 3. 1. Impact of ICT in oil and gas upstream operations By using well logging devices while drilling, the data from the oil wells are transmitted to experts, who then judge and take action to ensure best practices. Formerly, logging was performed as the drilling tools were pulled out of the well. Now ICTs enable data to be read using sensors in the drill string, the data are normally digitally transmitted in real time to the monitoring offices. Source: http: //www. intelligentsolutionsinc. com 13

by Alexey Gurin 3. 1. Impact of ICT in oil and gas upstream 14

by Alexey Gurin 3. 1. Impact of ICT in oil and gas upstream The oil exploration and production optimization department of oil companies are now increasingly responsible for running the Smart Fields. Shell developed the “Smart Field” program which is a holistic way of looking at production, reservoir management, and other technical processes. It aims to maximize the life cycle value of assets by integrated development and deployment of “Smart” capabilities. A smart field is one whose life cycle is continuously optimized [8]. Source: http: //www. worldoil. com 15

by Denis Simukov 3. 2. Scada technology for upstream oil exploration Scada is a type of industrial computer control system that can monitor and control large scale industrial processes that include multiple sites, and large distances. A SCADA system usually consists of the following subsystems: - A human–machine interface (HMI) is device which presents process data to a human operator, and thus enabling the human operator monitors and controls the process. - A supervisory computer system, acquiring data on the process and sending control commands to the process. - Remote terminal units (RTUs) connecting to sensors in the process, converting sensor signals to digital data and sending digital data to the supervisory system. - Programmable logic controller (PLCs) used as field devices because they are more flexible than special-purpose RTUs. - Communication infrastructure connecting the supervisory system to the remote terminal units. Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015 16

by Denis Simukov 3. 2. Scada technology for upstream oil exploration Most control actions are performed by RTUs or by PLCs. The feedback control loop passes through the RTU or PLC, while the SCADA system monitors and supervises the overall performance of the loop. Data acquisition begins at the RTU or PLC level and includes meter readings and equipment status reports that are communicated to the SCADA host as required. Data after compilation is formatted in such a way that a control room operator using the Human Machine Interface can make supervisory decisions to adjust or override normal RTU or PLC controls. A HMI is the device which presents process data to a human operator, and with which the human operator controls the process. Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015 17

by Denis Simukov 3. 2. Scada technology for upstream oil exploration 18

by Denis Simukov 3. 2. Scada technology for upstream oil exploration Due to the remote location of oil-fields outside the network coverage of main telecommunications networks, in order to have access to sufficient bandwidth, most oil companies rely on the services of satellite telecom providers to link all their oil-fields and manage them from a central location. Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015 19

3. 3. Impact of ICT In Oil And Gas Downstream Operations by Denis Simukov Downstream oil operations include transportation and refining of crudeoil as well as marketing and distribution of its end products. ICTs allows for the storage and manipulation of the different levels of data on purchasing and delivery of crude oil, refining and distribution of end products. Those data include crude-oil prices, inventory, delivery costs, and so on. ICTs are used in refineries to aid technological processes and to increase the yield of oil products with minimization of harmful emissions. In transportation and distribution, ICTs prevent losses and helps to optimize the stocking and final delivery of oil products to end users. Source: http: //www. eslink. net 20

3. 3. Impact of ICT In Oil And Gas Downstream Operations by Denis Simukov 21

4. Bibliometric and patent analysis Company/Year Chevron Exxon mobil Petro China Honywell Baker Huges Weatherford Schlumberger Halliburton Eni BP Shell Others Total Source: onepetro. org/ICT 2014 6 3 2 1 8 1 1 17 39 2015 7 2 1 1 5 1 2 4 1 28 52 2016 4 1 1 2 3 1 1 3 2 24 44 Total 17 6 4 4 16 2 2 3 2 7 3 69 135 22

Source: patents. google. com/ICT 23

by Gurin A. Company/Year Chevron Exxon mobil Petro China Honywell Baker Huges Weatherford Schlumberger Halliburton Eni BP Shell Others Total Source: onepetro. org/ICT 2014 9 5 4 3 10 3 2 1 28 70 2015 8 3 3 2 8 3 2 6 2 37 79 2016 6 1 1 3 6 2 2 2 3 4 3 26 59 Total 23 9 8 8 24 8 6 6 7 12 6 91 208 24

Articles of each company 90 10 9 80 Chevron 70 Exxom mobil Petro China 7 Honywell 6 Baker Huges Weatherford 5 Schlumberger 4 Halliburton Eni 3 BP 2 Shell 1 Total number of articles The number of articles 8 60 50 40 30 20 10 0 2013 2014 Year Source: onepetro. org/ICT 2015 0 2013 2014 Year 2015 25

30 25 Chevron Exxon mobil Articles 20 Petro China Honywell Baker Huges 15 Weatherford Schlumberger Halliburton 10 Eni BP 5 Shell 0 0 2 4 6 8 10 Patents 12 14 16 18 20 26

Conclusion Crude oil will continue to play an important role in the future world energy balance for decades to come. Improved use of ICTs and related technologies in the oil and gas sector can help to solve the current difficult situation regarding oil supply in the world energy market and thus achieve a more efficient use of existing oil resources. ICTs and related technologies can help to discover new oil reservoirs, with greater accuracy and also lead to more efficient oil extraction from existing fields. Consequently, oil and gas industry stakeholders should adopt a longer term strategic approach, including increased Research and Development efforts in the oil sector geared towards developing and implementing new and valuable ICT solutions for the oil and gas industry. 27

References 1. Efraim Turban, Dorothy Leidner, Ephraim Mc. Lean, James Wetherbe, "Information Technology for Management: Transforming Organizations in the Digital Economy", 3 rd edit. , John Wiley & Sons, Inc. , pp. 10 -15. ISBN 978 -0 -471 -78712 -9. 2. Matthew K. Luka, Ibikunle A. Frank, “ Impact of ICTs on Banks: A Case Study of the Nigerian Banking Industry”, International Journal of Advanced Computer Science and Applications, Vol. 3, No. 9, 2015. 3. UNCTAD (2016). ICTS In The Oil Sector: Implications For Developing Economies. Chapter 4, Information Economy Report 2016. 4. Murray, James (2014 -12 -18). "Cloud network architecture and ICT - Modern Network Architecture". ITKnowledge. Exchange. Tech. Target. Retrieved 2015 -08 -18. 5. "Information and Communication Technology from". FOLDOC. 2015 -09 -19. 6. "ICT - What is it? ". www. tutor 2 u. net. Retrieved 2015 -09 -01. 7. Zuppo, Colrain M. "Defining ICT in a Boundaryless World: The Development of a Working Hierarchy" (PDF). International Journal of Managing Information Technology (IJMIT). p. 19. Retrieved 2016 -02 -13. 8. http: //www. intelligentsolutionsinc. com 9. http: //www. worldoil. com 10. What Are Smart Fields? , Digital Energy Journal, April 2014. 11. Langley Diane, “Shaping The Industry’s Approach To Intelligent Energy, Journal Of Petroleum Technology, Society Of Petroleum Engineers, 2014. 12. Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015, available at http: //www. processonline. com. au/articles/29979 -Enhancing-oil-and-gas-operations-SCADA-via-satellite. 13. http: //www. eslink. net 28

5 Q&A 1. There are 4 main ages that divide up the history of information technology: Premechanical Mechanical Electromechanical Electronic 29

5 Q&A 2. ICTs make it possible: a. to collect huge amounts of data concerning oil fields b. to manipulate of data in models c. to support decision making with respect to optimal oil recovery methods d. to collect huge amounts of data concerning oil fields with manipulation of those data in models which support decision making with respect to optimal oil recovery methods 30

5 Q&A 3. Smart field philosophy. Position on the correct order. Model Decide Satellite Measure Control 31

5 Q&A 4. Where is it possible to apply ICT in Downstream operations? a. Exploration b. Production c. Transport d. Refining e. Marketing f. All the answers are incorrect g. All the answers are correct 32

5 Q&A 5. Total number of articles wrote in 2014, 2015 and 2016? a. 100 b. 150 c. 208 d. 500 e. 711 33