Download Content in PowerPoint format

The Business Value of Using Sensors

Atul Arya, BP plc

Presented at the 2008 IBM Almaden Institute

2

The Business Value of Using Sensors

• Context - Scale of Prize

• A word about BP

• Field of the Future

• Refinery of the Future

• Summary

3

Scale of Global Resource Prize

Unrecoverable (3.7tr)

Produced (1.0tr)

Remaining (1.2tr)

Reserves growth (0.7tr)

~7 trillion bbls Original Oil in Place

YTF (~0.3tr)

• 7 trillion bbls conventional oil in place

• 1 trillion bbls produced, 1.2 trillion bbls remaining

• 700bn bbls technically recoverable by increasing recovery factor

• Future advances in technology could enable some recovery of the currently “unrecoverable” 3.7 tr boe

• Field of the future scope is 1-6% oil in place and 2-8% production (CERA estimates)

• World oil consumption is 32 billion bbls/year

• US oil consumption is about 7.5 billion bbls/year

4

BP E&P - Global Operations

• 26 countries• ~4 MMboe/d • > 50, 000 oil and gas wells • > 40 major projects underway

Non-Proved

Conventional Oil

Deepwater Oil

Viscous and Heavy Oil

Conventional Gas

LNG Gas

Tight Gas

CBM

Proved

18 bn boe42 bn boe

5

Definition

Development and application of integrated real-time reservoir, well and facility work flows to improve operating efficiency and recovery

FieldoftheFuture®: Definition & Vision

Vision

To deliver extraordinary levels of operating efficiency and recovery through the use of real time data and collaboration adding:

• 100,000 boed production

• 1 billion boe additional recovery by 2017.

6

Today’s FieldoftheFuture ® Reality

The Extent

• 1.5 million boe/d• 700 wells• 40+ assets

The Infrastructure

• 1.5million data tags• 2000km of fibre• >35 assets with collaborative

environments

The Technology

• Real time rate and phase data• Rapid optimisation of complex systems• Real time data feed to reservoir models• First down hole fibre in gravel pack

completion

7

Complete integration of all real-time dataGulf of Mexico

Facilities

Real Time Drilling Drilling Visualization

Topsides Monitoring

One Touch

ISIS

AWS (Subsea)Process

Net Subsea/WellSurveillance Riser/Mooring Data

Rotating Equipment

Integrated Marine Monitoring

Fibe

r Opt

ic Net

work

8

Cross discipline

collaboration

Monitoring real time

data

Analysis &modeling

RapidDecisionmaking

Advanced CollaborationEnvironment

Complete integration of workflowsAzerbaijan

OffshoreProduction facilities

Onshore terminals & exports

Integration

9

Optimisation of Complex Subsea SystemsNorth Sea

Reduced process

instability

Increased gas handling

Time (days)

Gas

Flow

rate

(k

m3/h

r)

Technology

• Integrated, model based decision making in support of operations

Benefits

• Well and Riser stabilization

• Gas handling capacity increased by 12% and oil production increasedby 5 mbd.

• Improved oil/water separation

10

Refinery of the Future

1111

The Changing Face of Crude Oil

Oil Reserves by Region & Type

0

200

400

600

800

1000

N Am

eric

a

C & S

Am

eric

a

Europe

& Eura

sia

Mid

dle E

ast

Africa

Asia-

Pacifi

c

Bill

ion

Bar

rels

Conventional Crude Oil Heavy Oil Oil Sands

Source: BP Statistical Review 2005

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1995 2000 2005 2010 2015 2020

Sweet Sour

NB : Sour >1% sulphur contentSources: BP Statistical Review, IEA, AAPG, EIG, OGJ and CRA analysis

Total World Sulphur Content ProjectionTotal World Sulphur Content Projection

Volu

me (

tbd)

1212

Implications of Changing Feedstock

• Need to improve ability to process a greater range of feeds

• Need to acquire necessary tools

• To support rapid decision making about feedstock purchases

• Growing environmental complexity

1313

IMMEDIATE FEEDSTOCK VALUATIONIMMEDIATE FEEDSTOCK VALUATION

Refinery of the Future - Scope of the Programs

FEEDSTOCKSFEEDSTOCKS SUPPLY & TRADING

SUPPLY & TRADING

SUPPLY & TRADING

SUPPLY & TRADING

REFININGREFINING PRODUCT SALES

PRODUCT SALES

PROCESSING HIGH MARGIN FEEDSTOCKS

PROCESSING HIGH MARGIN FEEDSTOCKS

NEXT GENERATION LOGISTICS

Theme Name

Scope of ThemesScope of ThemesScope of ThemesScope of Themes

REFINERY WIDE OPTIMISATION

REFINERY WIDE OPTIMISATION

REMOTE PLANT MONITORING

REMOTE PLANT MONITORING

Value Value ChainChain

Programme Programme ThemeTheme

Programme Programme ThemeTheme

14

Next Generation Logistics

15

Remote Plant Monitoring

16

Deployment of MOTE Technology

• Large scale deployment at Naperville R&D facility

• 80 device network gathering secondary plant data

• Added real business value due to

– Reduced capital costs

– Improved efficiency of manning

– Optimised operations from increased data accessibility

17

18

Lessons Learned and The Future

Lessons Learned• Senior Leadership Support • Business engagement • Focus on value• Scalability, from one asset to many • Multi-disciplinary Integrated Teams

The Future

• Targeting: across the BP portfolio – more assets• Scale: more than80% of production and refinery

throughput• Impact: short term (production) and long term (ultimate

recovery)