How to Accelerate Drilling Learning Curves: the Hare & the Tortoise 1 Copyright of Royal Dutch Shell plc 29/08/2010 Shale Energy Technical Conference Houston, August 2011 Eric van Oort Onshore Gas Technology Manager Shell Upstream Americas
How to Accelerate Drilling
Learning Curves:
the Hare & the Tortoise
1 Copyright of Royal Dutch Shell plc 29/08/2010
Shale Energy Technical Conference
Houston, August 2011
Eric van Oort
Onshore Gas Technology Manager
Shell Upstream Americas
Upstream Americas Onshore Gas Portfolio
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The Analysts’ Perspective…..an Aesop Fable
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INDEPENDENTS• “Swift and Agile”• Early Movers in NA Onshore Gas• Low Overhead / Cost• Industry Standard
INTERNATIONAL OIL COMPANIES• “Slow Moving”• Late to the NA Onshore Gas Game• High(er) Overhead / Cost• Premium / Non-Standard
Optimization Capabilities & Delivery Packages
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Performance Improvement Delivery
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Optimization Tools: Root Cause Failure Analysis
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RCFA is an effective tool available to optimization engineers to analyze root causes of failures, and then working with suppliers to prevent re-occurrence of those failures in future – IADC/SPE 1284250
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Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09
Fail
ures P
er M
on
th
Optimization Tools: Drilling Efficiency Optimization
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Drilling efficiency optimization examples related to the application of soft torque rotary system –See also SPE/IADC 139841 & SPE/IADC 139842
Optimization Tools: Automatic Rig Activity Detection
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ARAD analysis of different rigs, wells, hole sections, drill crews, even drillers allow reduction of variation in performance (narrowing the distribution), with associated performance optimization
Fre
quency
Narrow, optimized
performance distribution for
a group of wells, rigs,
crews, drillers
Using ARAD to “Sharpen” Performance Distributions
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Performance Metric
Widespread, non-optimized
performance distribution for
a group of wells, rigs,
crews, drillers
2 14 32 1 43
Optimization Tools: Real-Time Operations Centers
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RTOCs remain effective tools to address NPT and ILT, and will play an integral role in remote operations (remote directional drilling), rig de-manning and automation
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New Optimization Tools: Case Based Reasoning
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CBR is a promising new tool to prevent trouble events in advance, and to connect well situations effectively with best practices – World Oil, April 2011
Competitive Benchmarking
Benchmarking against closest competition provides an important objective reality check on delivered performance, and is essential for target-setting
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Learning Cure Acceleration
60
80
100
120Indexed Well Delivery Time per year since first production
Years
Learning Curve
Acceleration
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Acceleration of Drilling Learning Curve from traditional plays (Pinedale, Early Deep Basin) to new plays (Haynesville, Groundbirch/Montney, Deep Basin)
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20
40
0 1 2 3 4 5 6 7 8 9
Pinedale - 2002 Early Deep Basin - 2005 Deep Basin - 2008
Haynesville - 2008 Groundbirch - 2008
Years
Conclusions
� Performance tools/technologies are
important, but people & local ownership
are key to success
� In-house subject-matter experts that
have detailed knowledge about
performance improvement & drilling
efficiency optimization are essential for
success.
� Using the afore-mentioned experts, train
a group of dedicated optimization
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a group of dedicated optimization
engineers (one per well delivery unit).
� Second these optimization engineers to
well delivery units, such that they are
integral part of the team and can help
build local ownership
� Following through with training of field
staff (drillers, MWD/LWD/DD staff etc.)
on DEO concepts and use of the afore-
mentioned optimization tools.
� Continual engagement of the well
delivery team on performance data,
benchmarked externally against
competition.
Acknowledgments
We like to thank our North America well engineering and delivery managers, their team leads, engineers and foremen for their continuous drive towards performance excellence, for keeping an open mind to new technology application, and for their support of the optimization engineers. Particular thanks go out to Joe Menezes, Cindy Taff, Dave Carpenter, Peter Brett, Mike Berry, Mark Duplantis, Mike DeWitt, Jaime Sharp, Ted Bergman, Joe Leimkuhler and Jeff Wahleithner. Mark Anderson, Mark Dykstra, Miguel Armenta, Tim Wiemers, Joey Roth, Dwight Dickerson, Rob Grauwmans and Lance Cook are thanked for their valuable technical insights, expertise and support that has allowed the optimization engineering approach to be successful. We thank all of our current and former optimization engineers, including Asher Qureshi, Keith Smelker, Tyler Smith, Mark Grant, Robbie Cantrelle, and Patrick Johnson who contributed to this paper. Shell Upstream Americas is acknowledged for permission to publish this paper.
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How to Accelerate Drilling
Learning Curves: the Hare &
the Tortoise
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