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TechnoVision 2012For Upstream Oil and Gas

Point of View by Pat Quinlan, Dave Knox and MarkDickson

Energy, Utilities and Chemicals the way we see it

Contents

Future Vision 2012 3

Introduction 5

Introduction to TechnoVision 2012 6

Exploration & Production Markets define the Key Business Drivers 8

Sample Business Applications of Technology Clusters 10

Applying the TechnoVision 2012 framework in Upstream 14

Where to Begin 15

©2009 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.

TechnoVision 2012 For Upstream Oil and Gas 4


Future Vision 2012

The technical and operationsworkforce relied heavily on localknowledge and expertise. They hadlimited chances to collaborate withother teams beyond periodic internalconferences and individual networkrelationships. There was no specifictechnology to support cross-teamcollaboration or to easily capture andshare their collective daily engineeringand operating decisions.

This has now changed. Smart OilCompany, based in New Orleans,Louisiana, took a bold step and createda new, collaborative workenvironment: a full time supportcenter for all onshore and offshoreoperations. This has not only changedthe way Smart Oil Companyengineering and operating staff worktogether but will continue to pay off foryears to come.

The collaboration center monitors andsupports all their drilling, operatingand supply chain activities. Thesecover rigs, wells, field processing andgas plants together with the interfaceswith engineering consultants,suppliers and joint venture partners,throughout the Gulf of Mexico,continental U.S. and Canada. Thecenter employs the latest in oilfieldsurveillance techniques to gather andevaluate the 200,000 data points, ortags that flow into the collaborationcenter each minute. This informationis used by drilling and operationsengineers, and maintenance staff tomake real time decisions leading toimprovements in daily production andthe lowering of costs. Advancedsoftware tools continually sift the dataand, when necessary, initiate a processthat includes reviewing data trendsfrom similar situations. The tools

automatically access Smart OilCompany’s knowledge network andcontinually documents reviews anddecisions that are fed back into theknowledge network.

With more complex formations andmore operations to manage inincreasingly marginal basins, Smart OilCompany has found that theirinvestment in collaboration technologyis paying off. Smart Oil Company nowprovides improved support to theirengineering and maintenance staff. Itcost-effectively manages roles, providesmore intense training, and generallybetter utilizes the skill and experienceof its people. The Smart Oil CompanyVP of Operations credits the vision ofthe project team and their ability tofully prove the concepts in the earlydemonstrations for transforming theSmart Oil Company that is changingthe way it works. He says, “We took adeep breath a few years ago, reviewedthe key factors for our future success,and used a novel approach to provide aroadmap for our competitive success.Though we made a few mistakes, welearned quickly along the way. Ourcurrent success is not by randomchance!”

Smart Oil Company: Vision of aReal-Time Intervention in 2012They sit, bathed in the glow from thebright plasma screens high above theCentral Business District (CBD). Lauratrains her fellow technician, Beaux, touse the on-line workflow manager.John, the surveillance engineer,hurriedly enters the room with a largefolder in hand entitled “Bad Actors”,and walks toward her, full ofimprovement ideas. Production datafrom wells, subsurface profileinformation, the latest 4D seismic – all

In our look at the possible futurewe introduce you to a companyand bring you its experience oftwo futuristic situations. The firstsample vision focuses on Real-Time intervention where a workteam identifies an issue with aproduction operation andpromptly assesses the situationfrom an operations supportcenter. The virtual teammakes adecision and then implements it,all within a span of about tenminutes.

The second vision depictsRemote Collaboration. Thesituation is similar to the firstvision but in this example teammembers engage via a PDA andthrough a web-enabledcollaboration networkestablished with an equipmentmanufacturer. Again theinvestigation, analysis andaction takes place in onlyminutes due to the immediategarnering of expertise from thevirtual team.

At a time that is not that far,far away…?An Excerpt from the ExceptionalBusiness Review, June 2012Smart Oil Company, a North Americanbased Upstream (Exploration &Production or E&P) company,continues with its efforts to find betterways to manage costs and increaseproduction. It is doing this by findingnew ways to leverage the skills andexpertise of its people. At one time,this expertise was largely confinedwithin an asset team or a project teamwith limited opportunities to shareexperience with others short of movingto a different team.

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enhance the knowledge base. Emilecommits to closing the subsurfacevalves as prescribed by the workflowdiagram displayed on his screen,including the safety protocols. Theplatform operator makes a few mouseclicks, and the sliding sleeve closes toshut in the wet zone. Their vigilresumes.

Smart Oil Company: Vision ofRemote Collaboration in 2012Cheryl reaches her office. She logs in todetermine the progress of a few actionitems and alarms that she chose toaddress on her PDA while on thevanpool. One of those alarms wasparticularly disturbing – that same badactor – a Recip compressor.

The phone rings, and it is the Reciptechnical support center, coordinatinga conference call with her, thecollaboration center technician, andplatform operator. They are alsoconcerned about the recent alarm fromthe compressor. Their detailed analysisshows high vibration, heading towardsfailure though currently functioningacceptably. Cheryl follows along withthe analysis on the secure Recipwebsite. The collaboration techniciandescribes the last three alarms on thecompressor, the results of the mostrecent tear-down, the 60-day vibrationtrend, and the recommendations fromthe expert system. Cheryl sighs heavily.While happy to have collaboration,real-time desktop sharing, she ispleased that it is no longer her that hasto get everyone together!

The collaboration center technicianthen leads a short brainstormingsession as part of their structured rootcause analysis exercise for equipmentfailure. They reach a stopping point, a

moment of self-doubt. The technicianmentions the online RotatingEquipment Community of Practicehome page, listing global experts. Onemore click and the technician hascontacted a Rotating EquipmentSpecialist in Nigeria. He joins the call,views their data, and recognizes thepotential problem. The Recip supportcenter considers it thoughtfully.

The platform operator hadn’t knownabout the specific lubricationspecifications. All the while, thetechnician documents this activity withscreenshots and simple comments.Cheryl likes what she hears, andencourages the technician andplatform operator to complete a newwork order and modify the preventivemaintenance plan to include detailedoil and grease specifications. They nowfeel encouraged; one more “bad actor”down! The system will automaticallytrack their fix’s progress.

displayed crisply above. Three yearsafter the initial field development, theteam performs its daily vigil ofmaximizing equipment, well, andreservoir performance.

Suddenly, Laura’s attention is divertedby a gentle alarm that heralds anoverhead screen change. Productioncurves show that rates have droppedbelow modeled levels and water cutsare rising on one of their fields. Sheglances towards John, the surveillanceengineer, who grabs a monitor andquickly shifts screens to show originalmud logs, open-hole and cased-holelogs, and a fence-post diagram. Beauxtakes command of one of the smartplasma screens that displayscompletion intervals, the latest welltests, PVT data and measurementquality. An automated alert on one ofthe plasmas provides them with a listof similar situations from prior years, abrief summary of the actions that weretaken, and the final outcomes – theirreal-time knowledge managementsystem.

A few point-and-clicks away, Johndetermines that the cumulativeproduction and original reserveestimates are close to expecteddepletion plans. A sharedunderstanding unites them all; thezone is watering out and needs to beshut-in. Laura clicks on an icon toinitiate a videoconference with theplatform personnel. Emile responds onthe crisp video feed, “I was just aboutto call you regarding that recentalarm.” A brief explanation of theanalysis ensues, while those on theplatform follow on their mirror-imagedsystems. The consensus comes swiftly -this zone has run its race. The systemdocuments their decision to further



Capgemini develops long-termsolutions for oil and gas businesses intheir use of technology to enhanceperformance. To this end,TechnoVision is Capgemini’s strategicframework to help clients createcompetitively-advantageousinnovation for their organizations.TechnoVision 2012, as applied to E&Pbusinesses, creates a technology-focused vision of the future. It is basedon trends in both large, multinationalcompanies and smaller independentoil companies. It is significantlyinfluenced by new developments inthe ways people work throughoutother industries, and incorporatesmany of those practices that can bewisely leveraged. This technologyvision varies slightly amongstupstream, midstream and downstream,but there are many re-usable conceptsas the business drivers are similar.

The market pressures on oil and gasbusinesses seem to change as rapidly asthe price of the commodity. Morerecently there was a shortage ofpersonnel, resources, and a surplus ofopportunities. Now as commodityprices have fallen to one third of whatthey were we find a shortage ofopportunities and a surplus ofpersonnel and resources. Although thecircumstances and environmentalfactors continuously change thechallenges remain substantially thesame.

To find the oil and gas accumulationsas surgically as practical, minimizinguncertainty and accurately predictingthe type, size and location of theaccumulation is necessary. With singledevelopment capital requirementsreaching the billions of dollars,optimizing the solution for developingthe discovered accumulation is evenmore critical than ever. Poorly placedwells, or too many or too few wells canhave a dramatic effect on the ultimatereturn on any given project almostwithout regard to the size of theaccumulation. Producing assets,whether from aging systems andinfrastructure, or more modern, higherrate installations; both require preciseattention to the right level of detail tooptimize performance and resolveproduction issues and problems.

Environmental focus has grown inevery area of oil and gas operations.This is beneficial for both businessperformance and for public relations.With changes in political landscape inmany operating areas, regulations willcontinue to evolve and the industrywill respond with newer technologyenabling improved performance,reduced emissions and smallerfootprints on the landscape. All of thetechnologies addressed in this point ofview paper will work toward thesebusiness requirements.

Advances in technology have enabledexploration, drilling, development andoperation in areas of the worldpreviously thought to be inaccessible.The ability to further optimize theseinnovations and to develop new ones

for yet unexploited areas of the globewill depend on the technologies andcapabilities addressed herein. Therapid acceleration of the plan-do-act-evaluate cycle of these technologieswith further increase the dependenceon these digital technologies

So, with the backdrop of constantchange and continual focus on valuedrivers we keep our eyes on the socio-economic factors and technologyleverages to help deliver the product asoptimally as possible. The followingwill introduce and clarify how andwhere TechnoVision fits into yourbusiness whether as a largemultinational oil company or as anindependent.

Introduction

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TechnoVision 2012 For Upstream Oiland Gas will summarize select keybusiness drivers that are now affectingthe industry. These business driversshould resonate with all E&Pcompanies to varying degrees. Therewill be others based on individualsituations, but these are common tomost. “Technology Clusters” areoverlain against these business driversto ascertain their relative merit inaddressing the business needs; thismapping creates a framework for ajoint business and technology vision toguide the enterprise to materialcompetitive advantage.

Significant work remains for numerousoil and gas companies in foundationalareas like data management,automation, and business processstandardization. There are ampleexamples that exist where companieshave successfully implementedadvanced capabilities such as real-timedecision making, worldwide exchangeof information (“one version of truth”),automatic maintenance scheduling, ordigital, personnel geo-spatialawareness.

Technology is advancing rapidly inalmost every aspect of our lives. Fromour own households and mobilephones to Wi-Fi (Wireless Fidelity)spaces in coffee stores and other retailestablishments, new digitalfunctionality is growing. This is alsotrue of the E&P business. More data isavailable on our desktops and mobiledevices, providing exceptional insightsinto field, well, and facilityperformance. Even today, operationscollaboration centers connect people

Introduction to TechnoVision 2012

and information, share real-time data,and bring global expertise to bearwhen and as needed. Days and weeksare turning into hours, minutes or evenseconds. There is also a cautionary taleamongst this growing digitalcapability: how to best manage thehuge amount of information for betterdecision making.

TechnoVision is more than new kit,more than faster communicationsinfrastructure, more than the latestanalytical application. At its core,TechnoVision 2012 is about changingthe way we work, as individuals, asteams and as a business. It can helpE&P businesses attain game-changingcapability by creating a framework fora long-term view that is coupled withwell-integrated, well-coordinatedtactical solutions. This will allow for acompany to phase their journey andaccommodate organizational,operational and budgetary realitieswhile progressing toward their own,tailored end-state. Value can certainlybe realized along the TechnoVision2012 journey.

This framework is not intended to be aone-size-fits-all, but a collection orgrouping of technologies (“clusters”)which can be readily aligned with yourbusiness drivers and enable effectivetechnology deployment. The term“Technology Clusters” will associatethe key, enabling technologies withlong-standing business processes(greater detail can be found in afollowing section of this paper).



4. Thriving on Data: How data andinformation can be better used -today. Sifting through the datastorm, avoiding data numbness,and extracting the few nuggets formeaningful action are the goals ofthis cluster.

5. Sector-as-a-Service: How toliberate the precious organizationalenergies by differentiating the core,valuable work from the work thatwill never differentiate thebusiness, no matter how necessaryit may be. Simplifying,standardizing, re-engineering thenon-core work is essential to allowthe right focus on the competitivelydifferentiating value.

6. Invisible Infostructure: How dataand information can be acquiredand managed, quietly andautomatically with minimal humanintervention. For those in theorganization that can help todifferentiate it, any time spent onfinding or assuring data orinformation translates into lowerproductivity – a practice that mustend throughout E&P.

In summary, these technology clusterswill focus on six key areas:

1. The You Experience: How theorganization empowers employeesto improve job performance byfocusing on a tailored employeeexperience that falls within theacceptable ranges of organizationalvariability. Consider, for example,how retail consumers have createdtheir own user interfaces throughconfigurable web applications.

2. From Transaction to Interaction:How employees interact with eachother, and with those acrossinternal and external barriers.Data-rich companies in otherindustries are using intelligentassistance to focus on the trulyrich-information, providing ameans to increase insight on therelevant issues that demand humaninteraction.

3. Process-on-the-Fly: How businessprocesses can be created,improved, and communicated. Anybusiness process, standardizedaround a best practice, can bequickly improved through the useof tools that integrate the rightapplications, datasets, and otherrelevant inputs. This is a crucialcapability when integrating with orinterfacing with partners,regulators, National Oil Companies(NOCs) or service providers.

Open Standards and ServiceOrientation: Open standards,affording a plug-and-playenvironment, form the foundation forthese six technology clusters,amounting to a key, enablingplatform.

Key Business Drivers for E&P will bedefined in the following section. Oncearticulated, they are matched with thetechnology clusters in theTechnoVision framework. It is theanswers within each intersection ofthis framework – matching thetechnology cluster solutions to abusiness driver - that define theorganization’s potential roadmap tocompetitive advantage throughtechnology.

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The best estimates of world reservesplaces more than 60% of oil reservesand more than 70%1 of the gas reservesare in countries where thehydrocarbons are managed by a NOCs,or equivalent. Combined with strong,demand-driven prices, renewednationalism (or a growing nationalconfidence) this has created ametamorphosis of these former, slowmoving giants. With an aggressivecommercial awareness, these well-financed NOCs2 are now setting muchof the direction of new capitalinvestments, technologyadvancements, and businessmanagement.

1. The Growing Influence ofNOCsThere are a number of geo-politicaland nationalistic trends driving theemergence of the NOCs. Simply putNOCs now control most of the world’sremaining oil and gas reserves withrecent reports indicating that thetraditional global integrated oil haveaccess to less than 10% of theremainder.

Whereas previously global majorsleveraged their technical andoperational expertise and jointventures to access global resourcescurrently the end-game for mostNOCs is to develop their own E&Pcapabilities which leaves them with along-term vulnerability. As long as theNOCs can finance their developmentand operations, this issue is unlikelyto change. One challenge for the

Business drivers are a term that is usedto describe the now-relevant, significantfactors for the entire E&P industry.There are other meaningful factors(“fundamentals”), not listed here thatare part of the fabric of the industry –whether it was in the turbulent 1980s,the present, or the uncertain future. Afew examples of these are ReserveReplacement, ProductionOptimization, Operations Excellence,or Cost Management. This paperaddresses key business drivers overand above those fundamentals. Inshort, the business drivers areweighted towards succeeding today andin the future.

The Upstream industry is nowrecovering from an unprecedentedperiod of volatile price and activity.Fuelled by strong demand in Chinaand India, oil prices rose to historicalheights, only to recede dramatically inrecent months by 75% or more.Drilling rig utilization peaked in thehigh 90 percentiles and rates for allservices reached new levels. Althoughgrowth of the major world economieshas recently and abruptly slowed orcontracted, world energy demand,according to most sources, willcontinue to increase in the long-term.

traditional global majors is how tobetter use technology to optimizewhat they have and help them earnaccess to resources currentlyunavailable to them.

2. Exploiting UnconventionalsThis limited reserve access for non-NOCs has forced large E&Pcompanies to exploit increasinglymore difficult resources. Theseunconventional sources, particularlytight gas (such as coal-based methaneand shale gas), heavy oil (includingtar sands and bitumen), stranded gas(for conversion to LNG), ultra-deepwater, and shale oil (mined andin-situ), will play a larger role in thefuture E&P company’s portfolio.

3. The Aging WorkforceIncreased activity driven by the pastrecord run up in pricing hashighlighted one of the industry’sweaknesses – the diminishingcapability to properly implement andmanage the large number of newprojects. Evidence of delays andrework has been well-publicized viasome spectacular failures. Oneexposed weakness leading to this isthat more large E&P companyexperience is leaving the industrythan is joining it (especially in NorthAmerica and Western / NorthernEurope). Retirements continue, evennow, at a faster rate than hiring andthe average employee age hovers near50.

Exploration & Production Marketsdefine the Key Business Drivers

1 Capgemini Analysis of reserve data from the EIA International Energy Outlook September 20082 E.g. Saudi Arabia, Iran, Iraq, Kuwait, China



similar hiring “gene pool”), thoughmuted as the service companies tendto hire a much more internationalworkforce.

5. Increased Public Scrutiny forCompliance Excellence

E&P activity has become more global,complex, and risky over the past 20years. During that time, there havebeen safety- or environmentally-related events that have demandedsignificant self-inspection throughoutthe industry. A few of these eventshave dominated news headlines andcreated a sustained, heightenedawareness of Health, Safety, andEnvironmental (HSE) issues. Thecurrent wave of eco-environmentalismhas also contributed to thisheightened sensitivity. Localcommunities and governmentalbodies are, more than ever,demanding a safer workplace for theemployees and a smaller impactfootprint during and after theextraction.

4. Alignment of QualityProvisionsThe project delays and rework are alsobased on the limited contractedservice, equipment, and materialavailability. One industry analyst3

outlines that the cost of Equipment,Materials, Personnel and Engineeringhave all increased between 15 to 20%in the period from 2001 to 2007. Thiswas followed by an unprecedentedretreat in oil price and hence thedemand for services. This rollercoaster trend will continueindefinitely. So, balancing the longlead-times (years) for drilling rigs andhighly-engineered components withvariable business demand andopportunity is the challenge.

Large E&P companies are largelydependant on the vast supplierecosystem and typically spend US$10to 12 outside the organization forevery dollar it spends internally. Thisecosystem has been subject to thesame forces of volatile supply anddemand as the E&P companies havebeen. In many cases, the suppliers feelthe effects of volatility before the E&Pcompanies. This has, over time,created a conservative financial andhiring approach in many, large oilfieldservice companies. And the samedemographic factors for hiring andretirement apply here too (it is a

3 Harrison Lovegrove and Herold: Industry Spending Trends, September 2008, citing Chinese National Offshore Oil Company (CNOOC)

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information displayed. This suggestsand inevitable overlap with clusternumber four, Thriving on Data. Onreading this point of view it is possibleto identify additional opportunity andcapability within the cluster or evenbetween two or more clusters.

In addition to six operational clusters,TechnoVision incorporates onetechnology cluster called OpenStandards and Service Orientation. It isnot operational in itself but underpinsall the others. Whenever we areconfronted with the ‘what’s new’question about the technology clusters,we find that the emergence of trueopen standards and the principles ofService-Oriented Architecture (SOA)are making an important difference.

Each cluster can also be defined bybetween two to four more detailedcategories of technologies, culminatingin 17 key Technology Building Blocks.Capgemini’s TechnoVision depicts theseven clusters in an architecturaldiagram.

1. The You ExperienceA new generation of user interfacetechnologies provides a compelling,highly individualized experience.Through these technologies, usersconnect freely to the outside world toact, interact, collaborate, co-create,learn and share knowledge. It’s ‘You,the people’ who are driving this globalchange.

The You Experience shifts the focus ofsolution development away fromsolutions that are designed and builtbeforehand. Instead, unique, tailoredsystems are quickly orchestrated fromfine-grained components (‘services’)from sources both inside and outsidethe organization.

Sample Business Applicationsof Technology Clusters

The technology clusters are designedto have the right granularity to be usedin the communication betweentechnology and business executives,mapping the business drivers of anorganization in a simple way to thetechnology solutions that addressthem. In Capgemini’s TechnoVision,Business Drivers are significant effortsaimed at exploiting an opportunity oran innovation, correcting an issue, orcoping with a disruption or a complianceneed (see the chapter “Applying TheTechnoVision Framework”).

The clusters can easily be expandedfrom the basic groups to the actualproducts which link to the solutions.The following clusters and examples ofcapability within oil and gas businesseswill help to explain and clarify keyopportunities suggested in this paper.The linkage between the clusters andbusiness capability created is usuallyself evident but in some cases may bemore subtle. Please note, however,some overlap between clusters isinevitable when talking about thebusiness capability.

For example, the first cluster, The YouExperience, contains an example ofdesktop computer displays, configuredby and for the individual, an engineerperhaps, containing specificinformation that pertains to his or herjob and role. The user in the example“creates” their own environment inorder to optimize the way “they” work.Due to the close relationship of digitalsystems and functionality there isnecessarily some overlap between theclusters addressed herein. Obviously inthe example of the engineer whoconfigured their computer displaythere would be serious limitations onfunctionality without the datacontained in significant portions of the

An E&P example could be the use ofrole-based portals that display onlythe relevant information to the petro-technical professional. This can beexpanded to desktop computerdisplays, configured by and for theindividual, containing specificinformation that pertains to his or herjob and role. The user in the example“creates” their own environment inorder to optimize the way “they”work. This may include certainnetworking capabilities with a varietyof expertise either within or outside ofthe company. It would also likelyinclude streaming data of well orfacility performance or in the case of aproduct marketer or financial analystperhaps locale specific financialindicators. Links to my currentproject team and my organizationalpeers would be active linkscontinually.



draw together combinations of theirown services and those of otherorganizations to quickly respond toopportunities, events and challenges.

Currently, a storm of productionalarms drives production teams to adata numbness, whereby the futurewill afford production to focus on thevital few events. The managing ofthem by exception and creating moreintimacy with the data truly demandsattention.

An easy way to think of this particularcapability is to compare linearcommunication (transaction) to amore circular communication. Withcircular communication, a team ofindividuals associated with aparticular system or operation can bemustered at a moments notice.

As in the sample futuristic visions atthe beginning of this paper, thecollection of affiliated personnel thenaccess data and models to ascertaindetailed evidence of a loomingproblem and then can collaborativelyassess the situation and create apreemptive resolution. Somecircumstances may require a reactiveresponse but that will be less and lessthe case over time. Smart systems willlearn to recognize patterns ofperformance and alert the responsibleparties well in advance of theproblem.

Transaction to Interaction clearly hasapplication to procurement of the vastamounts of materials purchased eachday by industry professionals.Increasingly these activities aresimplified by connecting service andproduct providers directly to the dataor information at the production sitewhich enables them to track

independently, the demand andtiming for engagement of theirproduct or service.

For example for onshore wells withfluid production, the haulingcompany is linked via tankinstruments to identify when a tank issufficiently full for offloading and thenplans their route with GPS enableddevices to optimize their routethrough the maze of remote dirtroads. This enables procurementspecialists, operations personnel andservice company management to focuson strategic aspects of the businessrelationship as opposed to thetransactional events of securing atruck to offload full fluid tanks.

One key aspect of Transaction toInteraction will be the establishment ofsocial networking platforms withinthe businesses. Due to the highlytechnical nature of much of the oiland gas business, it will necessarilyinclude details of past assignmentsand responsibilities of each individual.It will also include any technicalpublications or analyses to enable thelinking of expertise to current needs.The networking solution willnecessarily be searchable on a varietyof levels and in a high level ofgranularity. So, when individuals areconfronted with new challenges, “MyAssistance” can be obtained in onlyminutes, and perhaps a solution ifalready determined in a previoussituation obtained immediately.

3. Processes-on-the-FlyThese will assembled by orchestratingthe building blocks of underlyingservices. Organizations will need tochange their processes in near real-time to quickly reflect andaccommodate changes in the business

Another example of The YouExperience would be accessingtraining and developmentopportunities. These may be face toface coaching sessions with a mentoror perhaps a link to a university classin real time or simply a computerbased training application that onecan start and stop as time permits.

Much like today’s Internet enabledwidgets that provide certainfunctionality to employees’ computerscreens, they will be able to selectdisplays of certain performance datawhich may be organized by asset, welltype, equipment type and may befocused within a field or broadlydistributed locally. Then searching andfiltering functionality will enable theinvestigation and analysis of theinformation for identification andresolution of pending performanceissues.

2. The Shift from Transactionto InteractionThis cluster includes capabilities thathelp organizations externalize theirinformation, processes and events. Bytruly connecting to the outside world,fixed, predefined business transactionsbecome ongoing relationships withclients and partners. These are allengaged in a continual cycle oflearning, collaboration, innovationand co-creation of concepts, ideas,knowledge and tangible products.

This is a ‘mesh network of everything’in which systems and information areshared by default, and newopportunities for collaboration—sometimes ad hoc or short-lived—arise over and over again.Organizations, and their subsets,continually create opportunisticbusiness mash-ups in which they

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severity, type and location of themajor event, reporting relationships,decision making and engagementresponsibilities could be shifted basedon specific expertise and availability.Further, resources from other assetscould be easily leveraged in theresponse.

4. Thriving on DataDetailed insight into large volumes ofcrucial data is a necessity fororganizations that want to navigate aconstantly changing, information-richenvironment. Enterprises that knowhow to connect the use of data to itsstrategic objectives are literallyThriving on Data. These organizationsare continually reading, analyzing andreacting to information inside and faroutside the company boundaries.

Intelligence will be an integrated, fullyembedded part of every worker in acompany, supporting real-time

decisions on the spot wherever andwhenever they are needed. Datamining will become the norm forequipment and well production datatrends, whereby key relationships willbe identified and documented thatwill provide the data-based focus onthe vital few variables to affordmanagement-by-exception.

Oil and Gas businesses rely on data inevery aspect of the business.Increasingly a key to improving thebusiness is by enabling all employeesto access all data. The organizationalsilos are disappearing and access toreal time production data by anyonefrom anywhere is growing. These datacan be used by marketers, financialanalysts, and production optimizationpersonnel alike. Data is filtered andsorted to the level of detail requiredby the individual. It feeds graphicaldisplays (configured by the user inThe You Experience) which applycertain formula to provide the userwith the actionable information theyrequire. The data may simultaneouslyfeed business models for reassessingfuture projections and ensuringcontinuous alignment with businesstargets and objectives.

The removal of traditional barrierslike firewalls will enable the user toengage the system from hotels,airports, home or the office in thesame way. They will be able toparticipate in evaluation and analyticalsessions with teammates andcoworkers when needed. Manysolutions which now take months todevelop can be realized within weeksor even days because knowledgeablestaff has access common data and canbe engaged very quickly to support aparticular business need.

ecosystem. The underlyinginformation systems that support andenable these processes must consist offine-grained, configurable services thatcan be freely composed andorchestrated into new solutions.Teams will be able to refine keyProduction Surveillance processes asnew technologies or other innovationoccurs. Processes that require externalsuppliers can be changed quickly toaccommodate new providers asperformance of former onesdeteriorates.

Processes will that be assembled on-the-fly will not be applicable to allprocesses. Regulatory and safetycritical processes, for example, wouldfor the most part require rigorousmanagement of change protocols toimplement a change. Some safetyprocesses, however, like crisismanagement could be enabled withthis cluster. Depending on the

Facilities•Highly automated•Minimally manned•Remotely operated•Minimum footprint•Smart instrumentation with on-linediagnostics•Advanced controls

BU Collaboration Centre•Remote support, management & control•Planned (condition-based) intervention•Full-Field optimisation (med term)•Access to global expertise•Including HIVE capability

Support Centres of Expertise•Performance improvement•Proactive•Regional (serving multiple BUs)

Global experts via desktop•Specialist & peer support

Vendors &Partners•Monitoring•Active

engagement

Examples of “Transaction to Interaction”

Remote Collaboration Centre•Remote support – 24hrs a day•Competency & Mentoring Support•Staffed with Ex-Asset Coaches•Multi Region?

Reservoir•Repeat seismic on demand•Wells fully instrument•Automated option generation•Real time measurement linked toreservoir optimiser controlling downhole flow control



Increasingly, particularly within NOCrelationships, the large servicecompanies are providing well andfacility maintenance, systemoptimization and even wellsurveillance and intervention. Thoughnot commonly thought of as anoutsourced aspect of the oil and gasbusiness it is moving in that direction.The enabling digital systems appliedin Thriving on Data and Transaction toInteraction will largely be the key tothis evolution as well. Servicecompanies will be directly connectedto the relevant performance data andautomatically deliver the requisiteservice or intervention. This allows amore strategic focus on the part of oiland gas professionals andmanagement.

6. Invisible Infostructure.Infrastructure evolves into a utility-style invisible infostructure, supplyingall the infrastructural services that anorganization needs to responsibly andsecurely run its business on, includingapplication, information, exchangeand collaboration services and—sooner or later—core commoditybusiness services. Organizations willliberate themselves from the complextasks of having to run basicinfrastructural services such ascomputing power, storage,networking, desktop clients, securityand identity. These infostructuralservices increasingly will be suppliedfrom an Internet ‘cloud,’ which hidesthe details of suppliers, technologiesand systems.

The previous mention of removingtraditional barriers like firewalls inThriving on Data suggests that withInvisible Infostructure security willevolve toward encryption routines and

access to information will be enabledby role based portals. This will enabledelivery of data and information viathe Internet to the correct individualsregardless of location.

Open Standards and ServiceOrientationThese are a crucial element inCapgemini’s TechnoVision, becauseorganizations can only collaborateeffectively and achieve a boundary-less information flow if they speak thesame, widely accepted and recognizedlanguage. Proprietary standards areoften solid and established but theyfail when more parties are involved;therefore the only way forward fororganizations is to adopt global, openstandards. The industry has madesome progress with common XMLschemas and common industrydomain models based on standardswhich enable web based services andensure common data relationships.WITSML and PRODML are suchschemas which have been used toenable movement of drilling andproduction data from and to varioususers for some time. This willcontinue to deepen and expand as thedemand for the capabilities addressedin this paper increase.

5. Service-as-a-SectorCore, commoditized businesssolutions will be increasinglydelivered as little-customized,standard software or service, evensupplied through Software-as-a-Service. More and more market- orsector-specific core services will bedelivered through this mechanism,freeing organizations from having tospend the bulk of their time, budgetand resources on building andmaintaining commodity systems.Eventually, many of these ‘sectorservices’ will be completely executedby external providers.

Standardized sector / segmentsolutions are replacing legacy systems,or legacy systems are ‘stabilized,’providing them with service-orientedinterfaces without intruding on theirinner functions and structure.Unmistakable is the movement fromclassic ERP to orchestrated businessservices—sector / segment specific,cross-sector, function specific, cross-function, cross-company services.E&P has taken great strides isleveraging large outsource providersfor back-office activities such asfinance, accounting, and benefitsmanagement. These have provenworthy models from which tocontinue this success. Similarly thewell drilling function and selectmaintenance processes have beenlargely handed off to service providersin a number of areas.

15

Aligning the Business Drivers with thetechnology clusters results in a matrixthat requires a complete analysis of therole of the technology clusters inrelation to the Business Drivers.Answering the key questions will beginto shape the company-specificTechnoVision:

1. Is the technology cluster a CCAUSEof the Business Driver, a majorHELP in addressing the BusinessDriver, or a MUST-have in responseto the Business Driver?

2. To what degree is that technologycluster and the organization readyfor deployment to respond oraddress the Business Drivers (green= now ready; yellow = ready soon;red = work required to be ready)?

Based on the Business Drivers listedabove, an example of the TechnoVisionframework appears as such, where theintersection of business drivers andtechnology clusters will form the basisfor one or more projects into aprogram.

Applying the TechnoVision framework –TechnoVision 2012 in Upstream

Influen ec

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The above diagram is only a sample to demonstrate the process for aligning technologies and business drivers. This should be developed withyour particular enterprise in mind.

current practices and provide animproved business environment.

3. Work hard to integrate the overalleffort into a single, well-coordinated strategic Program. ThisProgram will consist of a few toseveral technology initiatives orprojects. These may be phased, orpiloted, to ensure minimalinterruption and allow fororganizational uptake. Define thelinkages between the projectsthemselves as well as with otherinitiatives within the organization.This step is important as itrepresents key leverage points andoften incremental value.

4. Use robust project and programmanagement practices to ensurethat the projects are properlydefined, sequenced, and executed.With a program of this nature,there will be foundationalinitiatives which are requiredbefore more advanced capability

can be deployed. This impactanalysis will establish clear lines-of-sight from the specific project tothe related projects, and,ultimately, to the businessperformance metrics.

5. Once the projects are defined,sequenced, and resourced, it isnecessary to finalize the executionplans. This should include basicssuch as the project plan, roles,accountabilities, and a governancemodel.

Your nearest Capgemini professionalcan assist you with developing anddelivering your TechnoVision journey.We hope this has provided at leastsome stimulating and thoughtprovoking concepts for your oil andgas business. Perhaps it has given younew insights into the process ofmatching business needs withtechnology functionality. As with lifein general the only constant isCHANGE.

The technology choices are daunting.Pursue the wrong ones, or the rightones at the wrong time, and CIOs andbusiness executives will findthemselves and their staffs wastingprecious effort and missing valuableopportunities. Engage the right criticalmass of internal and externalstakeholders to:

1. For your context, refine thebusiness drivers for your company,region, or asset. They will likelyvary based on regional differences,company size, or other factors. If“Fundamentals” continue to be yourfocus, they may be dissected into,cost control, reserve additions etc.

2. Ground the technology clusters interms that are relevant for yourbusiness situation. Thesetechnologies may drive your effortsin different directions. Test thelinkage from Business Driver to thetechnology cluster. Understandhow the technology will replace



Where to Begin

III. Define projectswithin intersections

IV.Developprioritization

I. Define BusinessDrivers

V. Developexecution plans

II. Align Drivers &Technologies

Overview Identify regional driversin light of corporateboundariesIdentify current initiativessupporting drivers

Define details of technologyin light of desiredfunctionality

Develop clear understandingof technologies and impacts

Develop projectsDefine linkagesbetween projects andexisting initiatives

Develop alignmentand sequence ofprojects

Secure resourcesProject approvalsProject close-out

Activities Assess priorities of drivers

Determine organizationallinkagesIdentify key players for input

Map technologies tobusiness driversIdentify resources and develop Framework forporjects

Define future-statebusiness process(es)Document future-state businessprocess design

Impact analysisCost estimatesSchedules

Define roles andaccountabilitiesIdentify reportingmetrics

Deliverables Charter with drivers,owners and detail

Preliminary business casaePreliminary budget

Future-state businessprocess design(s)Approved Charter(s)

Project PlansDetailed Businesscase

Project executionplanGovernance Model

Ideal Duration 2-4 days 20 days+ 10 days+ Variable Variable

Technology clusters

You ex-perience

Transactionto interaction

Process-on-the-fly

Thriving ondata

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Invisible info-structure

MCPublic Scrutiny

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Overview

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porjects

casaebusiness nary miiPrelbudgetnary miiPrel

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The table below summarizes the development approach for Capgemini’s TechnoVision Framework.

www.capgemini.com/energy

Contacts:� Pat Quinlan [email protected]� Ian Moore [email protected]� David Knox [email protected]

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of consulting, technology andoutsourcing services, enables its clients totransform and perform throughtechnologies.

Capgemini provides its clients withinsights and capabilities that boost theirfreedom to achieve superior resultsthrough a unique way of working, theCollaborative Business Experience. TheGroup relies on its global delivery modelcalled Rightshore®, which aims to getthe right balance of the best talent frommultiple locations, working as one teamto create and deliver the optimumsolution for clients. Present in more than

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