technology strategy for integrated operations and real

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Page 1 of 21 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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Page 1: Technology Strategy for Integrated Operations and Real

Page 1 of 21

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

Page 2: Technology Strategy for Integrated Operations and Real

Page 2 of 21

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

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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/

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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

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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

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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.

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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

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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

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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.

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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!