technology strategy for integrated operations and real
TRANSCRIPT
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TTA5
Technology Strategy for Integrated Operations and Real Time Reservoir Management
Lead Party ConocoPhillips
TTA - Group Companies and Organisations
BP, Chevron, StatoilHydro, Shell, Total Baker Hughes Inteq, Halliburton, Aker Kvaerner, FMC Technologies,
NPD, IRIS, SINTEF, NTNU, NGI, IFE.
Mud Line
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Involving the whole
Norwegian Petroleum
Cluster, e.g. OLF
OG21
National strategy
Petromaks
Ministry of petroleum and energy
Demo2000
Organisational
line
Strategic
guidelines
Organisational
line
Strategic
guidelines
TTA3 .....TTA1 TTA2
Basic strategic research
in petroleum
Basic research,User driven research
Pilot qualification
of technology
Time to commercialisation
Strategic programs (RCN)
Involving the whole
Norwegian Petroleum
Cluster, e.g. OLF
OG21
National strategy
Petromaks
Ministry of petroleum and energy
Demo2000
Organisational
line
Strategic
guidelines
Organisational
line
Strategic
guidelines
TTA3 .....TTA1 TTA2
Basic strategic research
in petroleum
Basic research,User driven research
Pilot qualification
of technology
Time to commercialisation
Strategic programs (RCN)
OG21
National strategy
Petromaks
Ministry of petroleum and energy
Demo2000
Organisational
line
Strategic
guidelines
Organisational
line
Strategic
guidelines
TTA3 .....TTA1 TTA2
Basic strategic research
in petroleum
Basic research,User driven research
Pilot qualification
of technology
Time to commercialisation
Basic strategic research
in petroleum
Basic research,User driven research
Pilot qualification
of technology
Time to commercialisationTime to commercialisation
Strategic programs (RCN)
Table of content
OG21 cooperation model ...................................................................................................................................... 2
Executive summary ............................................................................................................................................... 3
1 Introduction ............................................................................................................................................ 5
2 TTA IO-RTRM vision ........................................................................................................................... 6
3 Key R&D focus areas and challenges facing IO and RTRM ............................................................. 6
3.1 Hardware ...................................................................................................................... 6 3.1.1 Common topics ............................................................................................................................... 6 3.1.2 Drilling and well ............................................................................................................................. 7 3.1.3 Production optimisation and reservoir management ....................................................................... 8 3.1.4 Operations and Maintenance ........................................................................................................... 9
3.2 Software ....................................................................................................................... 9 3.2.1 Common topics ............................................................................................................................... 9 3.2.2 Drilling and Well ............................................................................................................................. 9 3.2.3 Production optimization and reservoir management ......................................................................10 3.2.4 Operations and Maintenance ..........................................................................................................11
3.3 Communications ........................................................................................................ 12
3.4 Work Processes .......................................................................................................... 12
3.5 Competence ................................................................................................................ 14
3.6 HSE – General considerations ................................................................................... 14 4 Environmental – more specific considerations .................................................................................. 15
5 R&D priorities, time frame and funding ........................................................................................... 16
6 Roadmap for the future ....................................................................................................................... 19
7 Link to other TTA’s ............................................................................................................................. 20
8 Recommendation.................................................................................................................................. 20
OG21 cooperation model
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Executive summary
In Norway Integrated Operations (IO) is a concept which in the first phase (G1) has
been used to describe how to integrate processes and people onshore and offshore using ICT
solutions and facilities that improve onshore’s ability to support offshore operationally. 1The
second generation (G2) Integrated Operations aims to help operators utilize vendors’ core
competencies and services more efficiently. Utilizing digital services and vendor products,
operators will be able to update reservoir models, drilling targets and well trajectories as wells
are drilled, manage well completions remotely, optimize production from reservoir to export
lines, and implement condition-based maintenance concepts. The total impact on production,
recovery rates, costs and safety will be profound.
When the international petroleum business moves to the Artic region the setting is very
different from what is the case on the Norwegian Continental Shelf (NCS) and new
challenges will arise. The Norwegian Ministry of Environment has recently issued an
Integrated Management Plan for the Barents Sea2 where one focus is on “Monitoring of the
Marine Environment in the North”. The Government aims to establish a new and more
coordinated system for monitoring the marine ecosystems in the north.
A representative group consisting of the major Operators, the Service Industry,
Academia and the Authorities have developed the enclosed strategy for the OG21 Integrated
Operations and Real Time Reservoir Management (IO & RTRM) Technology Target Area
(TTA).
Major technology and work process R&D gaps have been identified in several areas:
o Bandwidth down-hole to surface
o Sensor development including Nano-technology
o Cross discipline use of Visualisation, Simulation and model development particularly
in Drilling and Reservoir management areas
o Software development in terms of data handling, model updating and calculation
speed
o Enabling reliable and robust communications particularly for Arctic regions
o Consequences of IO on HSE, including IT security and vulnerability
The introduction of IO on the NCS is enabling diverse parts of an organisation and its
service providers to communicate and collaborate on a whole new level. The physical
boundaries of distance and geography are virtually eliminated, with the almost instant
availability of data and information wherever one is located. IO and RTRM will provide a
significant opportunity for increased production, improved operating efficiency and reserves
growth.
However, the NCS operators need to understand the consequences of introducing IO on a
large scale in order to sustain safe and efficient production Therefore it is vital that HSE
consequences are addressed, particularly risks and consequences of the new work processes,
and the reliance and hence vulnerability of remotely operated equipment. Emergency
procedures, emergency preparedness, installation and information system security are other
areas of concern. However the Petroleum Safety Authority3 has arranged workshops, and
seminars in this area, during 2007, and now in 2008.
1 OLF report - Integrated Work Processes: Future work processes on the Norwegian Continental Shelf – Autumn 2005 -
http://www.olf.no/io/arbprosesser/?28867.pdf 2 http://www.odin.dep.no/md/norsk/dok/regpubl/stmeld/022001-040027/dok-bn.html
3 2008 Seminar on IO and HSE
http://www.ptil.no/Norsk/Helse+miljo+og+sikkerhet/HMS-aktuelt/8_IO_seminar_program_.htm
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The Service providers are challenged to share data and communicate across open standard
communication interfaces. In this way key business solutions, or even the competitive edge of
individual service providers, are shared across a virtual collaborating group of companies.
This means that a move from the current conventional supplier-operator relationship, to a gain
and risk sharing business relationship is becoming a key component of IO.
The industry needs closer links with Universities with regards to student IO education,
retraining and building practical experience when it comes to IO and RTRM in the form of
internships and summer jobs. It is important to communicate to students and the general
public that there will be jobs in the Norwegian oil industry for many years still.
The Reservoir management today operates over a period of months and years, however in
the future, the rate and quality of data streaming to the reservoir management professional
will increase many fold. High resolution seismic and EM (Electromagnetic) on demand will
provide clear images of the subsurface, including the reservoir, overburden and fluids
changes. The reservoir professional will then have the possibility of operating at very short
timeframe cycles and bring reservoir performance management into the realm of production
optimisation and operations, which will increase the need for integration between these
disciplines, and at the same time, increase the fidelity of models used to represent the
subsurface and make accurate long-term predictions.
On the plant and process side, sustainable production optimisers will incorporate market,
export net, plant, process, and wells information to continually optimise system output and
safely maximize production. The reservoir models will live as the reservoir does and there
will be near real time feedback between these and full field sustainable production optimizers
to enable optimum plant and reservoir management. Not only will the data be of uniformly
high quality and instantly available, and analysis of the data much more rapid, but so too will
be the way in which reservoir management professionals work together with production,
operations and drilling in collaborative work spaces, both virtually and in office
environments. Each profession will use common tools to visualize and exchange data, have
common shared earth, facilities and well-bore models. Boundaries introduced by different
operating systems, nomenclature, reference, and measuring systems will cease to exist.
Arctic developments have a great potential to harvest the fruits of the IO implementation
that is taking place on the NCS, as they are being planned now or even further into the future.
This means that full IO can be planned from the start, taking into account what is required on
the technology side as well as with the work processes.
The industry is facing many challenges that are required to allow the R&D investment to
create significant and timely value to the industry. They range from Arctic Logistics, to how
are we going to handle the exponential increase in data quantities from our wells and
equipment. Can we agree on a single IT architecture to enable IO and RTRM if we have
multiple partners? People and work processes are also, key areas of concern, with critical Age
demographics already delaying capital projects due to lack of people and competencies.
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1 Introduction
IO implies active use of information, skills and knowledge beyond the traditional
boundaries within the industry. It also implies integrated decision-making, along the whole
value chain, across time scales, and across the divide between technology, organisations and
humans. Integrated Operations imply that feedback permeates all parts of the final solution.
The information being used is always the latest available” 4where Real Time Reservoir
Management is a fundamental element of IO
Several oil companies and suppliers have implemented the first generation of IO. (G1)
represented by integration of on and offshore activities and are already seeing efficiency
improvements, but the move to the fuller integration model (G2) represented by integration of
companies, will see greater rewards.5
There are many studies showing that the potential is enormous, and that the NCS is a
world-class leader in the development and implementation of IO. The OLF (Oljeindustriens
Landsforening) have conservatively estimated that the value of IO implementation on the
NCS at 300 Billion Nkr for the period 2005-2015. If full IO implementation is delayed by
only 3 years this is reduced by 90 Billion Nkr. OLF6 have estimated that in the last two years
IO has provided the state and industry 24 billion Nkr in extra income.It is seen that Reservoir
and production optimization are key value adding processes, with Drilling and Maintenance
as key cost improvement processes.7 There is still a sense of urgency in implementing IO on
the NCS, and this is reflected in some new initiatives of the OLF. (See page 22)
A fundamental part of IO development is improved business models and relationships
between players. Development in this area is seen as still being very slow.
However an investment of 25 Billion Nkr in technology, people and organisational
changes is required to realise this potential and allow the industry to remain profitable. This
report is aimed at showing where the investment funding is to achieve the future IO and
RTRM vision.
The following TTA members contributed to the formulation of this report:
Mike Herbert CONOCOPHILLIPS
Anne Skjærstein/Fabrice Vuisiat NGI Kristin Falk/Hallgeir Melboe AKER KVAERNER
Egil Tjåland NTNU Marit Stinessen/Espen Rokke FMC
Elisabeth Aarvaag/Pascale Morin TOTAL Mark Shahly BP
Erlend Vefring IRIS Andrew Gibson MARINTEK SINTEF
Fridtjov Øwre IFE Sigurd Aanonosen UIB
Gert De Jonge CHEVRON Svein M Skjaeveland UIS
Hans Erik Olsen/Solveig Lysen HALLIBURTON Svein Omdal STATOILHYDRO
Jan-Ove Dagestad BHI Sølvi Sjøgren Amundrud/ Odd Tjelta NPD
Ken Carrell/Gregor Henderson SHELL Trond Lilleng STATOILHYDRO
Sjur Larsen NTNU
4 NTNU, IFE, SINTEF 2006
5 OLF report - Integrated Work Processes: Future work processes on the Norwegian Continental Shelf – Autumn
2005 - http://www.olf.no/io/arbprosesser/?28867.pdf 6 OLF http://www.olf.no/io/aktuelt/?52205
7 OLF http://www.olf.no/english/news/?32101.pdf
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2 TTA IO-RTRM vision
The vision for the IO and RTRM TTA is that the NCS will be a global leader in the area
of IO and RTRM, which will generate significant export value. The NCS will show
significant improvements in operating efficiencies that are unmatched elsewhere.
IO and RTRM will be the way we do business in the future as we explore, develop and
exploit not only future fields , but also the mature fields of today. It will be seen as a key
solution to many of the current problems that the industry is facing. Age demographics, and
shortage of competences will force the implementation of new relationships across not only
Geographical, but also more importantly business boundaries.
TTA5 is a pre-requisite and main driver towards accelerated research, and implementation
to achieve the targeted value creation, where access to new reserves, and accelerated
production are key elements.
3 Key R&D focus areas and challenges facing IO and RTRM
An Analysis of the current situation within IO and RTRM on the NCS identified major
gaps in key areas such as Hardware,
Software, communications, HSE, Work
processes and Competence. They have
been examined in some detail, within the
key elements in the value chain, Drilling
and well operations, Production
optimisation and Reservoir management,
and Operations and Maintenance. Some
of the challenges and technology gaps
are work process specific, however
many are common to all work processes.
Some key focus technologies and
work processes identified in the Gap
analysis are examined in more detail
below. They are grouped under some of the sustaining elements of IO, thus providing a direct
link to the Priority tables in section 4.
3.1 Hardware
3.1.1 Common topics
There are several focus areas that are common to all areas of the value chain.
Bandwidth will need to be improved not only between downhole and surface whilst drilling,
but also from subsea equipment. Wireless sensors that are reliable, durable and inexpensive
are also common in all areas, which will enable the IO environment of the future. Going
wireless is vital in order to upgrade existing facilities with sensors without prohibitive costs.
Applied developments in the use of micro and nano technology will also be needed in all
areas.
Remotely operating equipment will be common in all areas in the future. Energy
harvesting from the environment are essential for wireless sensors, which will no longer
require batteries.
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3.1.2 Drilling and well
o High transmission speeds from down-hole to Surface.
The low transmission speeds from down hole to surface, in comparison from surface to
onshore, are currently one of the main gaps. The use of wired-pipe has the potential to act as
a catalyst to make a step change in drilling efficiency. Wired pipe exists, but is not
widespread, and is only in the testing and evaluation phase currently on the NCS. Wired pipe
and technologies that help close this gap are seen as a challenge.
Tools that utilise the potential of the high bandwidth communications should be seen as a
major focus area for R&D. Currently utilisation of wired pipe and similar technologies is still
slow to be adopted.
o Nano and Micro-technology
Norway already has a leading position in the development and manufacture of these
systems. SINTEF (Selskapet for industriell og teknisk forskning ved Norges tekniske
høgskole), Oslo University and IFE (Institutt for energiteknikk) have production facilitates).
There has been identified many possibilities of Nano and micro Technology in the petroleum
industry8, such as lightweight but stronger materials, improved temperature and pressure
sensors, nanodust applications to provide data reservoir characterization, fluid-flow
monitoring, and fluid-type recognition, super conductors such as Armchair Quantum Wire
(AQW) enabling electricity (in the form of electrons) glide across a grid for 1,000 Kms with
virtually no resistance or power loss. This has huge implications when considering onshore
power supply for offshore facilities, notably in remote environments such as the Arctic.
In 2007 a NanoLab was opened at NTNU (Norges Teknisk-Naturvi tenskapel ige
Universi tet ) . The NanoLab at NTNU is an interdisciplinary, strategic initiative with the
objective of coordinating and strengthen, nano technological research at NTNU.
Since nano technology is an interdisciplinary area NTNU aims at presenting the NanoLab
as a meeting place for Nano-researches with roots within traditionally related research areas
such as electronics, physics, material sciences, chemistry, biology and medical technology.
The initiative encompasses therefore several different departments spread among five
faculties at NTNU: Faculty of Natural Sciences and Technology, Faculty of Information
Technology, Mathematics and Electrical Engineering, Faculty of Engineering Science and
Technology, Faculty of medicine and Faculty of arts. This initiative works in close
cooperation with SINTEF. At NTNU there are today more than 70 permanent researchers
active within sectors where nano technology is an important research topic. To be able to
offer necessary, modern facilities for nano technological research, NTNU¨'s NanoLab is in the
process of establishing a "clean room infrastructure". These facilities will be open for all s at
NTNU, SINTEF and external actors within nano technological research.
At China’s Shandong University nanotechnology their specialised petroleum laboratory,
has developed an advanced fluid mixed with nano-sized particles which significantly
improves drilling speed and this blend eliminates damage to the reservoir rock in the well,
making it possible to extract more oil.
GP Nano Technology Group Ltd in Hong Kong developed nano sized silicon carbide
ceramic powder which yields exceptionally hard materials. Nanocrystaline substances can
contribute to harder, more wear-resistant and durable drilling equipment.
8 Applications of Nanotechnology in Oil and Gas E&P -
http://www.spe.org/spe/jpt/jsp/jptmonthlysection/0,2440,1104_11038_5137544_5154307,00.html
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o Sensor and wireless development
There is a need to develop new more reliable sensors with a particular focus on wireless
sensors and networks, for both surface and down-hole applications. The cost has to be
lowered and the accuracy improved!.The challenge is to improve today’s sensor technology
with focus on reliability and resolution.
o Remotely operated equipment
The future technology will require design criteria that meet the demands of IO and remote
operation. Tools and equipment must have the ability to be remotely operated, and controlled
at surface, sub-sea and down-hole. This development is currently slow and needs to be
accelerated.
3.1.3 Production optimisation and reservoir management
For production optimisation and reservoir management, hardware is generally related to
instrumentation of the wells and the plant that will be feeding data to software tools which for
near real time analysis and eventually decision making. This instrumentation is dependent on
new and improved sensors in order to make full use of the emerging technologies. Hardware
can also be related to acquisition of seismic and other remote sensing technologies.
We are currently seeing many R&D projects (23%) in this area. (April 2008)
o Sensor development
While in recent years, smart wells have become more common, they are still not standard
practice for new wells and one of the reasons is that down-hole sensors and control devices
are not sufficiently robust. Consequently, the challenge is to improve today’s sensor
technology with focus on reliability and resolution. More reliable methods of installing fibre
into wells are also desirable. Development of reliable, inexpensive self powered wireless
gauges/sensors are seen as one possible way of bringing some of the smart well technology to
the large portfolio of old wells on the Norwegian Shelf.
The infrastructure for sub-sea, in terms of data quantity, fibre optics etc. has to be
improved with focus on brown fields as well as new developments, especially in the Arctic
environment.
For platform usage the emerging Nano technology, consisting of low-cost, high quality
sensor units that communicate their measurements wirelessly to a central unit would represent
a major advance in technology for Norway's mature offshore fields. They can be retrofitted in
for a number of applications on offshore platforms and could provide useful input for
production optimization.
Within the seismic arena, there is a need to reduce the cost of permanent ocean bottom
sensors and develop low cost permanent sources to fully enable and spread and ability to
acquire seismic (and possibly electromagnetic data) on demand. Such technologies should
facilitate improved reservoir management related to the use of 4D/4C seismic data and
possibly electromagnetic data. Additional improvements of down-hole seismic sensors are
also warranted.
o Remotely operated Equipment
The future technology will require design criteria that meet the demands of IO and remote
operation. Tools and equipment topside, subsea and down-hole must have the ability to be
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remotely operated and controlled. This development is currently slow and needs to be
accelerated.
3.1.4 There will be much more control from Onshore, in the future. Operations and
Maintenance
o Bandwidth concerns
In the sub-sea arena high bandwidth connections are required to convey all data from
down-hole to the topside system, and then to shore. Enabling sub-sea acoustics is seen as a
short- term goal as it requires high bandwidth. The challenge is reliability, durability and low
cost! The infrastructure for sub-sea, in terms of data quantity, fibre optics etc. has to be
improved with focus on brown fields as well as new developments, especially in the Arctic
environment.
o Wireless sensors
Topside equipment like separators is subject only to limited degree of monitoring today
due to unavailability and harsh environments. It has traditionally been difficult to know the
technical condition of this equipment without stopping the production and doing a visual
inspection. Indirect monitoring will be developed in terms of new sensors and/or algorithms
to assess the technical condition of this equipment. This will be even more vital for the future
subsea processing installations
3.2 Software
3.2.1 Common topics
Systems and applications that enable us to process, and use effectively the exponentially
increasing volumes of data and information, are vital in all areas. Fast intelligent systems and
applications, are required across the value chain, with visualisation being an important tool to
enhance collaboration. Uncertainties need to be understood and included in the models.
Accurate modelling and simulation tools are also required in all areas.
Common platforms for receipt and handling of non compatible data are required.
3.2.2 with functionality to take into account u.Drilling and Well
o Data Management
Today there are many barriers between disciplines; we have inherited the “silo-working
practices”, which are reflected by the applications and software being used. For example
Drilling, production and operations work on Window’s platforms, Subsurface on Linux or
Unix. Common references are lacking, our visualization tools are often different and often do
not communicate as well as they should. Examples of deep integration between operations
and subsurface is rare, although with drilling it often reaches necessary levels.
The future IO-RTRM needs smarter and more automated applications, which includes the
use of Smart agents, trend analysis, and artificial intelligence to enable autonomous systems
to take advice or even take control of some current processes. Data analysis, data mining,
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filtering (conditioning), alarms, proactive (look-ahead) software are promising techniques that
could be applied in IO-RTRM as they are in other domains.
The industry will need software that can utilize and handle the next generation telemetry
standards. The amount of data in an integrated operations environment is foreseen to increase
dramatically, and will be a challenge to handle and process..
o Real time optimization, Simulation, Autonomous systems:
Optimization and Simulation techniques should be further developed to aid the decision
process, and help addresses current inefficiencies. Safe operating envelopes integrated with
optimization applications are required.
o Visualization and virtual/simulated reality systems
Visualization is seen by many as a key integration tool to allow cross-discipline, and cross
company collaboration, as it enables the aggregation of numerous data sets in one
environment. New 2D and 3D visualization solutions have the potential to meet these
requirements. The cost has dropped dramatically in the area of screen and projection
technologies. There is also a move to using gaming technology in visualization software
development.
3.2.3 Production optimization and reservoir management
One of the major software GAPS related to reservoir management, process and production
optimisation is a system for efficient model updating with new data, since optimisation
normally requires a model which can predict the effect of changes in the controls, confer,
"Closed-Loop Reservoir Management". This applies to everything from geological and
reservoir simulation models to well and facilities models, and at least for reservoir models, the
software should also be able to handle uncertainties.
o Infrastructure
The general issues of infrastructure have been addressed above under drilling. As
mentioned above, successful IO will require a greater level of integration between the
subsurface, whose software is generally UNIX or LINUX based and Drilling and Operations
whose software is generally Window’s based. There needs to be easy ways of sharing and
visualizing information across these platforms. Likewise data will need to be shared through
firewalls to suppliers while maintaining system integrity.
o Field optimisation tools
Today few systems exist that have the
possibility to model the full field scenario from
the reservoir model to and including the topside
process facility. Some of these models also
include optimisation algorithms, for instance with
the purpose of increasing the oil production while
keeping the gas production within the capacity of
the compressors. The main deficiencies with these
models are that they are becoming very large,
especially if the reservoir model is included. Until
Closed - Loop Reservoir Management
SYSTEM ( reservoir , wells and
facilities )
Control algorithms Sensors
Controllable input
SYSTEM MODEL
Optimization
IDENTIFICATION AND UPDATING
Noise Input Output Noise
INPUT DATA Geology , seismics , well tests, well logs , fluid properties , etc.
Modified from Jansen et al., First Break, Jan 2005
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now such models thus have only to a limited degree been run with real-time input data from
the fields. In the future, with increased computational capacity, it is foreseen that such
optimisation tools will be used with online data read from the fields to increase production.
To be able to fully benefit from the optimisation algorithms, the field optimisation tools must
be allowed to control the field. This means that the field optimiser must be allowed to set the
choke positions of individual wells automatically, and adjust these as required based upon
changes in demand, i.e. automatic closed loop control.
New software tools are available, (although most are proprietary) that are beginning to
give us a way to analyze real time data that is available from instrumented wells. These tools
do provide some proactive alarming, but generally their capabilities are limited, as is our
ability to fully utilize the results across a range of professions.
o Reservoir models
Reservoir models are beginning to account for uncertainty to give more reliable prediction
of future outcomes for use in decisions. In other cases these predictions can be used to
estimate the value of data needed to discriminate between different realizations. They can be
updated more quickly to incorporate new well and seismic information, but updating is still
too slow and they generally are not integrated with production optimisers (which are just
starting to be deployed) and only in a gross non-living sense with near earth models that are
being used in Drilling. In general the accuracy of subsurface predictions is inadequate to
reliably predict and therefore economically access very small pool sizes and the workflow that
is used for each is similar and slow.
3.2.4 Operations and Maintenance
o Flow assurance
There are still software and modeling challenges that need to be solved, especially related
to using multiphase flow meters for fiscal measurement, sub-sea applications, and specific
examples relating to Water Cut and Gas-Oil ratio. For long tie-back gas fields, as seen both on
the NCS and in nearby Arctic field developments, accurate modeling of liquid accumulation
in the flow-lines is a challenge. Adequate models of this slow transient liquid accumulation
are important to be able to control liquid surges into the processing site.
o Mobile ICT (PDA - Personal Digital Assistent) According to investigations on the Norwegian continental shelf, regular mechanics spend
some 50 % of their working time in front of a computer struggling with reporting software
programs. It is anticipated that mobile ICT (PDA) will change the working procedures
drastically for inspections and maintenance personnel. Explosion proof (EX) PDA’s exist
today, and the main obstacle for starting applying these tools is lack of software. Software
applications must be developed in close interaction with work process analyses.
o CBM – Condition Based Maintenance
Condition based maintenance is an expressed goal to achieve reduced maintenance costs,
improved integrity/HSE, and higher overall reliability and availability. In order to implement
ambitious regimes like e.g. condition based predictive maintenance; a better understanding of
equipments’ degradation mechanisms and lifetime estimation of equipment is vital. Managing
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degradation mechanisms and being able to predict residual life of equipment is even more
important for subsea installations, where the costs of not being able to know the technical
condition of the system and equipment be extensive. In artic environment where ice is
covering the subsea installation part of the year, opportunity based maintenance is a key
factor to maximize availability and minimize production loss.
o Visualization
The use of visualization in conjunction with subsea equipment for monitoring and
diagnostics, but also for training and preparation of interventions and modifications of the
equipment is a focus area. 3D virtual reality models displayed in the operation room during
offshore operations will be used as the key communication and collaboration system for
multi-disciplinary teams. Common awareness across the IO team will be ensured and better
decisions can be achieved.
3.3 Communications
o Standards in integrated work processes
Standards for communication of data and information are vital in order that Operators,
Service Companies, Authorities, Academia, and disciplines can share data and
information. Standards need to be developed in such way that stability, flexibility and
relevance is ensured for 5, 10 or even 20 year’s time. WitsML (Well Information Transfer
System Markup Language) and ProdML are standards that exist, but they do have
limitations in the area of IO and RTRM. Can they cope with the anticipated dramatic
increase in data from bits to mega bits per second? According to POSC9 standard
compression techniques will be used when bandwidth becomes an issue. Work is also
ongoing in the use of XML10
for Seismic but it’s likely that more processing will take
place in the field or down-hole prior to transmission.
o Semantic Web11
Semantic WEB is a possible concept for interactive use of the Internet and technology to
recognize the meaning of information. This concept might be the instrument for handling
information in IO-RTRM environment, between and within organizations.
o Arctic and remote areas
There are many challenges when development starts in the Arctic, and in other remote
areas. Examples are lack of IT infrastructure and satellite coverage, and the extreme
environment effecting logistics.
3.4 Work Processes
o Demographics – Knowledge Management and IO-RTRM education
9 POSC - Petrotechnical Open Standards Consortium, Inc. http://www.posc.org/
www.witsml.org, www.prodml.org 10
XML - http://www.w3.org/XML/ 11
Semantic WEB - http://www.w3.org/2001/sw/
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The demographics of the industry mean that the current learning’s and knowledge will
need to be captured and passed on to the new generation. The facilitation of training of the
new and retraining of the old employees in IO and RTRM will be essential, but also
knowledge management systems need to be developed where the experts experience are
captured, maintained and nurtured. In this way expert knowledge will be available
independent of geography and personnel.
o New relationships and Business models between parties
Closer integration and new incentive based Business models are required in order to fully
utilise the competencies that exist in the service industry in an IO environment. Business
integration and sharing between companies will be difficult for most to accept, and the
changes will need to be facilitated in a smart way so that issues such as competitiveness and
technological advantages are still maintained. The research and development of these new
models should be an important focus area for the industry. New Business models are a
common theme in conferences and seminars, but actual progress is still slow.
o MTO (Man Technology Organisation) and Change Management
Working together closer, in new ways, using new communication technology and with
personnel with a different competence is demanding and challenging. It is important to be
aware of and take into consideration the human and organisational aspects in these change
processes. The MTO concept covers these aspects and should be further explored when
establishing new work processes.
Research into how companies should proceed to ensure a rapid implementation of the IO-
critical technologies is needed. The figure illustrates a model12
explaining what factors that
affects the acceptance and use of new information technology. “Performance expectancy”
refers to the degree to which the system
will help a user to attain gains in job
performance.” “Effort expectancy” refers
to the degree of ease associated with the
use of the system. “Social influence” is
the degree to which an individual
perceives that it is important that others
believe he or she should use the new
system. “Facilitating conditions” refers to
the degree to which an individual believes
that an organisational and technical infrastructure exist to support use of the system. This
model provides a useful tool for managers needing to assess the likelihood of success for new
technology introductions and helps them understand the drivers of acceptance in order to
proactively design interventions (including training, marketing, etc.) targeted at populations
of users that may be less inclined to adopt and use new systems. The model also provides an
important basis for research into this area.
Research is currently being carried out within the IO centre at NTNU in connection to
programs 1 and 4.
o Virtual Teams and Interdisciplinary issues
12
Venkatesh, V., M. G. Morris, G. B. Davis, F. D. Davis (2003). User Acceptance of Information Technology: Toward a Unified View
<https://hyperion.svt.ntnu.no/exchange/sjurl/Sendte%20elementer/Referansegruppen.EML/Pensum%20SOS1010%20v05.doc/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/Venki.html> . MIS Quarterly 27(3): 425-478
Page 14 of 21
Virtual teams will need to be fully developed and supported with specific communication
systems. Virtual teams are new to our industry, but they are probably an integral part of the
future success of IO. (Virtual teams are teams where the members are dispersed and do not
conduct much work face-to-face, and where ICT mediates most interaction between
members). Working in this way is a big challenge to the industry, as it effects location of
power, control, roles, responsibilities and the decision process.
There will be an Interdisciplinary ownership to data and models. Risk and uncertainty
issues needs to be understood and managed within the decision making process. Lessons
learned, and improved focus on traceability of decisions will be a challenge.
3.5 Competence
There has been extensive work carried out by the NPD (E-Drift Forum) regarding
Education, Training, and Recruitment mapping in relation to IO. We would therefore draw
attention to this report on the needs for industry competence in IO, so that educational
institutions may adapt accordingly. 13
The report outlines industry IO requirements for the
main work processes.
In the world of IO and RTRM there is lack of specific training by Academia, though
closer links are being forged in the form of Real time links, and IO training and research by
some. Multidisciplinary understanding for early identification and ability to ask the right
questions is needed in addition to experts. Although a positive trend on bachelor level can
now be seen, we still need more investment into making further education attractive,
particularly in the key areas of Maths, Physics and technical subjects. It is important to
communicate to students and the general public that there will be jobs in the Norwegian oil
industry for many years still. The industry need closer links with Universities with regards to
practical experience when it comes to IO and RTRM in the form of internships, summer jobs,
and also allow access to technology allowing real time data feeds, video conferencing and
collaboration tools.
3.6 HSE – General considerations
The HSE consequences of IO are seen as an area of R&D focus in the short term. The
industry is already moving into an era where IO and RTRM is becoming the basis of future
work processes. The future will include fragile Arctic environments, so it is vital that HSE
consequences are addressed, particularly risks and consequences of the new work processes,
and the reliance and hence vulnerability of these remote operations. Handling of Emergency
procedures, emergency preparedness, installation, and information system security will be a
concern. The dependence on remote work practices, mobile and Virtual teams, and shared
decision-making will be a major challenge, and should be an R&D focus. Current work
includes the IRMA14
(Incident Response Management) initiative, which has the goal to
improve information security in the oil and gas industry, with focus on integrated operations,
through developing a method for incident response management. The IRMA project is
working on a method for handling information security incidents related to integrated
operations in the best possible way.
The OLF also has a work group currently examining the effect that IO has on HSE15
.
13
NPD : Mapping Competence needs for IO - http://www.npd.no/English/Emner/E-drift/Kartlegging+av+kompetansebehov/coverpage.htm 14
IRMA – http://www.olf.no/io/infosikkerhet/?26239 15
OLF IO reports download page - http://www.olf.no/io/rapporter/
Page 15 of 21
This should be seen as a key reference for future work in this area. In respect to Security and
vulnerability several studies have examined the consequences of IO on facility security, IT
security, etc and should be used as reference for future R&D16
.
The Petroleum Safety Authority17
has arranged workshops, and seminars to focus on the
effect of IO and HSE, during 2007, and now in 2008. By implementing IO there can be a
positive effect on HSE, both directly and indirectly. For example reduction of helicopter
traffic will reduce emissions, whilst better collaboration and scheduling will improve
efficiency. We must also not forget that we will have less people exposed to risk as we move
to the 2nd
and 3rd
generation of IO.
4 Environmental – more specific considerations
By its nature IO involves all sectors of the value chain, so it has the potential to reduce the
environmental impact of Oil and Gas operations considerably.
By implementing IO there can be a positive effect on the environment, both directly and
indirectly. For example reduction of helicopter traffic will reduce emissions, (and personnel
risk) whilst better collaboration and scheduling will improve efficiency.
Remote sensing can allow early warnings of potential environmental events that left
unchecked could have resulted in more serious consequences. Improved efficiency, better
decisions, better understanding of uncertainties when making these decisions, means reduced
risk to the environment, and we can minimise or eliminate this impact. To be successful IO is
not just about technology, it’s about how we use the new work processes, and the new
organisation in conjunction with the technology.
IO is also about learning, we can not only improve the monitoring, of the environmental
consequence of Oil and Gas operations, IO communication technology can distribute the
results faster and more efficiently to increase industry, authority and academic understanding
of the issues. It will hopefully enable much more proactive behaviour to again reduce or
eliminate possible consequences, of these operations.
We would like to draw your attention to previous links in the HSE section of this
document, for further information.
16
Sintef - Trusler og muligheter knyttet til eDrift - Stig Ole Johnsen, Mary Ann Lundteigen, Eirik Albrechtsen, Tor Olav Grøtan -
10.01.2005 - http://www.sintef.no/content/page1____6907.aspx 17
2008 Seminar on IO and HSE http://www.ptil.no/Norsk/Helse+miljo+og+sikkerhet/HMS-aktuelt/8_IO_seminar_program_.htm
Page 16 of 21
5 R&D priorities, time frame and funding
Fo
cus Priorities
Key challenges
Increased recovery, reduced unit costs, increased
export, competence development
Time and
Financing
Har
dw
are
Bandwidth- Higher transmission speeds from
downhole to surface, and broadband between
companies
Increased data-rates will require new standards for
handling. QA/QC of “this” dataflow will be a challenge.
Security, vulnerability and uncertainty a concern
Short/medium term.
Shared
public/industrial
funding
Short/medium term.
Shared
public/industrial
funding
Nano and Micro-technology. Reliability, durability, Low production/cost.
Remote operation of tools and equipment.
Equipment design for remote operation and
maintenance. RACI and MMI.
Sensors: General- New more reliable sensors, deeper
reading and look ahead. More focus on wireless
sensors and networks.
Multiphase flow metering sensors, leakage
detection sensors, annulus pressure gauge,
downhole sand sensors, continuous distributed
well sensors,
Geophysics- Low cost Life of Field Seismic
Increase reliability and decreased cost of down
hole seismometers. Permanent ocean bottom
sensors inter-acting with down-hole sensors..
Wells- Cheaper and more reliable to install fiber
optic sensors providing a wider range of
measurements. Robust wireless downhole
gauges and sensors that can be easily, cheaply
and reliably retrofitted into old wells.
Subsea- Multi-pin with more penetrators for
fibre optic sensors. Communication solutions for
in-tubing downhole sensors
Mobile ICT:
Condition and performance monitoring
Reliability, durability, Low production price. Long
battery lifetime for wireless sensors.
Improved sensors require both fundamental research on
new technology as well as improvement of existing
technologies
Increased reliability and simplicity at low cost that
facilitates effective downhole control while maintaining
flexibility for well work over.
Field-testing is critical for arctic fields.
Show that investments in IO and new technology creates
value for old fields
Low cost solutions for Life of Field Seismic are a
challenge with present technology.
Subsea networks-System reliability
Reasonable price for EX PDAs. Practical for use on site.
So
ftw
are
General-Real time optimization, Simulation,
Autonomous systems.
Assimilation and optimization of real time data
and information. More automated applications
and systems. Use of Smart agents.
Easy in-use software RFID and interactive
logistic systems / Software. Artificial
intelligence technologies and optimizer
technology. Tools for data mining and filtering.
Interface adapted to users.
Integration with existing infrastructure and systems
Always need more computing power, and better
visualization tools
Short/medium/long
term. Shared
public/industrial
funding
Infrastructure- Common infrastructure or at
least easy sharing across platforms, secure and
easy data sharing across firewalls, common data
formats, standards.
Develop methodology for fast and automatic updating of
geo-models and reservoir models including uncertainty
Handle different timescales and model complexities
Requires both implementation of existing, new
technology in commercial modeling software as wells as
long term basic research
Integration of data on different scales and with different
resolution
Realistic scenarios and predictions
Short/Medium term.
Industry funding
Models- General -Rapidly updated, fully stress
coupled reservoir models that accurately handle
uncertainty and are shared across functional
domains as well as being linked to full field
optimizers.
Short/Medium term.
Industry funding
Analysis-Easily used software tools that
intelligently analyze real time data. Improved
imaging and processing that improves
turnaround, resolution and repeatability.
Short/Medium term.
Industry funding
Visualization- Common visualization tools that
foster data sharing and integration and
fundamentally changes the rate at which
subsurface data can be analyzed and used to
identify small pool sizes.
Short/Medium term.
Industry funding
Page 17 of 21
Aggregation of information. Aggregation models. Visualization.
Medium term. Shared
industry/public
funding.
Degradation mechanisms and residual lifetime
(topside and subsea)
To find simplified and feasible methods for degradation
mechanisms and residual lifetime estimations. Need to
be followed up closely on-site and/or in laboratory.
Long term. Public
funding with
additional industry
funding.
Leakage detection subsea equipment To find indirect measurements to indicate leakage
detection.
Short term. Industry
funding.
Detection, prevention, suppression of flow
assurance problems
Need to be followed up closely on-site and/or in
laboratory.
Short term. Industry
funding.
Flow assurance models Need to be followed up closely on-site and/or in
laboratory. Need to develop reliable methods for
different phenomena (wax, asphaltene, multiphase flow,
etc.)
Short/Medium term.
Shared
industry/public
funding.
Accurate flow measurements Multiphase modeling for fiscal metering. Need to be
followed up closely on-site and/or in laboratory.
Medium term. Shared
industry/public
funding.
Co
mm
un
ica
tio
ns
Design technology around IO
Standards in integrated work processes: need to
summarize.
Wearable computing for an Ex environment
Standards and discipline in an agreed formalized
delivery / responsibility process
Virtual teams specific communication systems.
Short/medium term.
Shared
public/industrial
funding
Common standards -for data transmission.
May establish entrenched technologies, which are hard
to dislodge and/or replace by improved methods. Can
they cope with the anticipated dramatic increase in data
from bits to giga bits per second?
Short term
Industry funding
Wo
rk P
roce
sses
Integration between companies-
New Business models
Closer Integration between Service Industry
And Operators. Work process and decision
support within Virtual teams.
Moving towards IO and RTRM has to relate to human
and organisational resistance to change. Management of
change and MTO are of vital importance.
Technical integrity and safety, incl. intelligent use of
modern instrumentation and new methods to compensate
for missing plant operators for monitoring plants
Tacit versus explicit knowledge. Contrasts between short
term and long-term thinking.
Insight in other team members’ knowledge domains.
Understanding and managing uncertainty
Identify enabling gaps (competence, organization,
technology, instrumentation, infrastructure)
The right data available at the right time at the right
place. Reliable archival and retrieval of data used for the
basis of major decisions.
Short/medium term.
Shared
public/industrial
funding
Integration between disciplines- change
management to revise work processes to
establish a deep integration between operations,
drilling and subsurface. Multidisciplinary
understanding for early identification and ability
to ask the right questions is needed as well as
experts
Integration within discipline – New work
processes to speed the reliable identification of
small pools.
Data & information management – Common
architecture and standards for all data coming
from an offshore platform, includes subsurface.
Page 18 of 21
Learning and Knowledge management - A
system and process to facilitate rapid knowledge
sharing to shorten learning cycle time and
exchange lessons learned to prevent reoccurring
mistakes. Methods for design and
implementation of new work processes/change
management. Training and simulation for
integrated team work
Handling of uncertainties across disciplines
Decision making under uncertainty
Preservation of lessons learned/ Methods for
experience handling. Tracing of decision
processes
HS
E Visualization of procedures and permits
Today complex, not easy to find and understand
– High volume of critical information in huge
documents – paper/ file/Computer(s) Emergency
procedures
Emergency preparedness, installation and information
system security are areas of concern
HSE consequences of IO and RTRM have to be
identified
Short term. Shared
public/industrial
funding
Co
mp
eten
ces
HSI- Human system interface
Decision models in multidisciplinary teams. Organizing information to handle more data. Criticality
prioritizing. Adaptation of work processes and human
preference. Adaptation of the system to humans.
Perceived risk visualization. Simplified decision models.
Prioritizing.
Medium term. Shared
industry/public
funding.
Education- Applied education programs at
universities, and more job rotation within the
industry
Training- Tools and applications, Virtual team
development. Training of workforce in the
implementation of IO and RTRM.
Competence- building - integration and
interfaces between disciplines at the Universities
and in organizations.
Multidisciplinary understanding.
Current demographics in industry
Lack of people taking the right education in Petroleum
studies
Currently, in several institutions, a majority of the new
PhD students in petroleum are non-Norwegians, that
may not be interested in working in the Norwegian oil
industry.
University competence in providing people for the IO
environment.
Virtual team training will be a challenge
Short/medium term.
Shared
public/industrial
funding
Summary of ongoing R&D projects within IO & RTRM:
This is a brief overview of ongoing research within this area. We would also like to refer to a
published and detailed overview from the NPD. 18
Program/Organisation Focus area Comments Petromaks program
(Norwegian Research Council)
Hardware: 7 projects
Software: 6 projects
Work processes: 7 projects
Communications 1 project
Apparently no projects addressing the other
categories in this report, i.e. HSE, and
Competences, which is seen as a gap
Demo2000 project. There are 9 projects that fall in the area of IO and
RTRM, ranging from visualisation tools, to faster
reservoir simulators, and real time monitoring
systems.
NTNU/SINTEF/IFE
Work processes – MTO (People, technology,
organization), ICT (measurements, data handling,
visualization), Reservoir management, Drilling
and well operation, Operation and maintenance,
Production and process optimization, Safety and
reliability, Value chain and business models
NTNU/SINTEF has a portfolio of about 60
projects within IO & RTRM with a total volume
of NOK 250 millions (over several years). IFE
MTO has over the last 10 years performed
generic MTO research for 500 MNOK (for the
Halden Project) and has a yearly portfolio of 10-
15 MNOK related to IO & RTRM
18
NPD - Summary of ongoing R&D projects within IO & RTRM Sept 2006 - http://www.npd.no/Norsk/Emner/E-drift/E-
driftforum+%28ny%29/coverpage.htm
Page 19 of 21
The Norwegian Oil Industry Association 15/04/2008 3www.olf.no
IO areas to be addressed by OLF in 2008
Fiber cable
Integrated
operation centers
©©
Operators Vendors
CommunicationPotential &
consequences
Digital
Services
Floater
Oil platform
Subsea
I. Common digital
platform
II. Best
practices
III.Knowledge
industry
IV.Overall
business case
Information Security
R&D on competence and digital products
and services
Sensors
Data Integration Implementations
From TIAM to TIAM?
WiMax
Capture and transfer to be included in ICT architecture?
RDS in operation as ISO system
Oil & Gas Ontology (OGO)
Daily Drilling Report (1.2.2008)
Monthly Production Report
(testing in 2008)
IT architecture – final report
WP for IT
DFU
Categorization and risk assessment
IO in Drilling – Guideline functional requirements, in
progress
IO in Projects – Guideline functional requirements, in progress
IO and CO2 – in progress
Smart wells
Geosteering
Condition Based Maintenance
Special Interest Groups (SIGs)
SIG Drilling & completion – UiS, IRIS, NOV
SIG Reservoir & Production – UiB, Epsis, StatoilHydro
SIG Operation & maintennace, -NTNU, SINTEF, StatoilHydro
SIG HSSE - UiTrø, Invenia, Akvaplan-niva
NTNU IO Centre19 THE CENTER for Integrated Operations in the
Petroleum Industry (IO Center) conducts
research, innovation and education within the IO
field, to promote accelerated production,
increased oil recovery, reduced operating costs
and enhanced safety and environmental standards
The centre opened in 2007
International Research Institute
of Stavanger IRIS Integrated automation of drilling and well
construction is the topic of several projects.
An IO laboratory for drilling automation is
being developed. Several projects within
reservoir model updating and production
optimization are performed.
Centre for Integrated
Petroleum Research, University
of Bergen
CIPR/UiB has a number of fundamental and
applied research projects within reservoir
modelling, updating and optimization, process
and safety technology. , form necessary building
blocks for RTRM.
OLF20
Common Digital Platform, Best practices,
Overall Business case, and Knowledge Industry
See Graphic below
The recent establishment of 14
CRI’s (Centres for Research-based
Innovation21
) has placed particular focus
on IO, and will forge close links between
the Industry and prominent research
groups. This will allow a more long-term
perspective for research in the area of IO,
for involved parties, with an aim of
enhancing the current leading position for
Norway in this vital technology area.IO
and the OLF – Main areas of focus though
not directly R&D they give an indication
of industry thinking and focus in the area
of IO.
6 Roadmap for the future
The NCS has been sent a clear message
by the State, that Integrated Operations is a
key to its sustainability. Thus it is vital that
the industry develops the identified
technology and associated work processes.
The foundation for this is the development
of new Business models, and standards, to
enable closer integration between an
19 IO centre - http://www.ntnu.no/iocenter/ 20
f 21
CRI -
http://www.forskningsradet.no/servlet/Satellite?c=GenerellArtikkel&cid=1117459951982&pagename=ForskningsradetNorsk%2FGenerellArtikkel%2FVisMedHovedtilhorighet
Page 20 of 21
Operator and the Service provider. New Sensors, Virtual Reality tools Simulation, are
essential to provide the sustaining elements of future Virtual work processes. In the future
automation and remote control will result in unmanned facilities even in hostile environments
such as the Arctic. Further in the future Nano Technology and Artificial Intelligence will be
the defining value creation areas.
7 Link to other TTA’s
IO includes the
whole value chain from
Exploration through
Drilling, to Production,
Operations and
Maintenance. Having
environmental sound
Operations is
fundamental to the
entire process. The
value created by IO has
been well publicised but
its future success is very
dependent on how we
develop technology and
work processes within its framework. There are clear and vital links between the all TTA’s
that can be best represented by the following model. For example Cost effective Drilling and
Intervention success is related to the development of high bandwidth communication between
downhole tools and surface, which will be a catalyst for performance improvements for that
TTA and the IO TTA.
8 Recommendation
Many studies have shown that IO and RTRM are vital focus areas for not only future
Norwegian investment, but also on a more international scale. However time is a challenge,
and the industry need to work hard to implement the technologies and work processes that are
required. With these current trends, the industry cannot wait 15 or 30 years to fully adopt
technology as has been typical in the E&P industry.
In section 5 “R&D priorities, time frame and funding", the time span for different R&D
activities are listed. The majority of the activities are categorized as Short to medium term.
The TTA recommends that the following should be a focus area for Demo 2000 (piloting),
and Petromaks (basic research)
Hardware is well suited for piloting
HSE seems from the list to be suited for piloting since it is categorized as short term
Software with challenges due to increasing amount of data, requirements for
continuous updating and decision support is well suited for basic research. Software
and work processes are closely linked
The area of Work processes is well suited for basic research.
Page 21 of 21
In the area of Communications, a strong focus on both basic research and piloting
within communication could accelerate the development within this area.
Communication/Design technology/Common standards, seems to be a real challenge.
The standardization within production / reservoir seems not to be better than within
drilling.
Competence building is an area for Piloting of such things as new training and
education methods.
The current demographics in
the industry will force engagement
into new Business relationships,
and new work processes. Training
of new employees and retraining
of experienced employee’s needs
to be seen as a priority in order that
the next generation of IO will be as
successful as the first. To aid the
change from the current state to the
desired state the industry may need
to make the new work processes more attractive, and offer rewards to those who make the
move. Virtual teams will need new technology to be developed, new applications written and
apply new work processes to fill the identified gaps
The state must invest in Education particularly to reverse current dismal trends regarding
further education in the Science and Technology areas.
New and exciting technology such Nano or Micro sensors, Virtual or simulated Reality
may also make working in the Oil and Gas industry not only interesting but FUN!
Lets hope so!