Today, smart oil and gas organizations are working to make better use of data in order to (1) Enhance exploration and production, (2) Improve asset management, (3) Optimize global operations.

1. George Mattathil
4/18/2011
Let’s Build a Smarter Planet:
Oil and Gas
© 2009 IBM Corporation

2. Let’s build a smarter planet: Oil and Gas
The need for progress is clear
1 terabyte 33% 90,000
An oil field can Amount of oil, on Man-hours required to
generate one terabyte, average, that is execute turnaround
or 200 DVDs’ worth, of recovered from an effort every two
data daily. An oil and existing reservoir.2 years on an offshore
gas engineer can platform.3
spend up to 60% of
their time mining this
data.1
© 2009 IBM Corporation

3. Let’s build a smarter planet: Oil and Gas
The opportunity for progress is clear.
85% 10%
reduction in 1.5% improved
seismic increase in asset
processing oil recovery utilization
New technologies and A 1.5% increase in recovery Adopting best-in-class
mathematical algorithms from existing wells, on asset management
exist to significantly average, would yield strategies can reduce
reduce the time to enough oil for half a year’s
analyze oilfield data to global consumption.2
asset downtime by
find, map and understand 10%.3
oil & gas reservoirs,
thereby speeding time to
recovery.1
© 2009 IBM Corporation

4. Let’s build a smarter planet: Oil and Gas
For oil and gas organizations, this means finding a way to lead in a
new environment shaped by three key factors.
ENERGY AVAILABILITY TO MEET THE WORLD’S GROWING NEEDS
Projections show energy consumption increasing by 50% by 2030.1 Yet a great deal is still
unknown about the world’s oil and natural gas supplies: where to find it, how much is in which
reservoirs, how to extract more of it and even how best to distribute it once it is pumped out of
the ground or ocean.
ENERGY AFFORDABILITY—PRICE, VOLATILITY—OF DIRECT AND INDIRECT GOODS
TO CONSUMERS
Hit-or-miss exploration methods and an unreliable supply can and do impact the price of oil and
gas. Given the enormous price tag of drilling a new well—which can cost over $100 million—
and the complexity of managing production facilities, even modest increases in oil exploration
and production efficiency can tremendously improve energy affordability.
ENVIRONMENTAL IMPACT
Failure to implement new technologies and capabilities that minimize drilling footprint or
improve the safety and reliability of operations can lead to increased environmental risk due to
unnecessary drilling and oil production accidents (explosions, spills, etc.).
© 2009 IBM Corporation

5. Let’s build a smarter planet: Oil and Gas
New technologies need to be applied to continuously absorb and
apply the sea of information generated across their value chains and
beyond – transforming raw data into actionable insight
DATA INSIGHT ACTION
© 2009 IBM Corporation

6. Let’s build a smarter planet: Oil and Gas
Today, smart oil and gas organizations are working to make better
use of data in order to…
ENHANCE EXPLORATION IMPROVE ASSET
AND PRODUCTION MANAGEMENT
Capture and process a variety Boost asset availability, flexibility
of data to identify previously and reliability to achieve greater
inaccessible reserves and SMART OIL responsiveness to market
improve well performance. AND GAS fluctuations.
OPTIMIZE GLOBAL OPERATIONS
Increase visibility, mitigate risk and lower
costs across the supply chain.
© 2009 IBM Corporation

7. Let’s build a smarter planet: Oil and Gas
+ + =
An opportunity for oil and gas companies
to think and act in new ways.
Enhancing Improving asset Optimizing global
exploration and management. operations.
production.
© 2009 IBM Corporation

8. Let’s build a smarter planet: Oil and Gas
Smarter oil and gas:
Enhancing exploration and production.
SMART IS SMART IS
Using supercomputing and advanced data Reducing risks to people and the environment
modeling to find, map and analyze reservoirs that by having the ability to sense and adjust
previously were inaccessible. operations automatically before problems
occur.
SMART IS SMART IS
Implementing advanced sensors and integrating Using data mining to manage operations that
operational data to optimize production and maximize well life and optimize equipment
increase the oil and gas extracted from current production.
reserves.
© 2009 IBM Corporation

9. Let’s build a smarter planet: Oil and Gas
Smarter oil and gas:
Improving asset management.
SMART IS SMART IS
Enhancing production flexibility and Leveraging new information and forms for
responsiveness to supply and demand rending this information (visualization,
fluctuations in the market. dashboards) for improved decision support.
SMART IS SMART IS
Improving asset availability and reliability based Enabling operations to monitor themselves and
on predictive analytics. be run largely by a ―virtual‖ team of experts.
© 2009 IBM Corporation

10. Let’s build a smarter planet: Oil and Gas
Smarter oil and gas:
Optimizing global operations.
SMART IS SMART IS
Integrating supply chain planning information Using predictive weather models to decrease
(production, inventory, logistics) across storm-related damages and minimize
disparate operations (locations and systems) to disruptions to supply.
manage costs and increase customer
satisfaction.
© 2009 IBM Corporation

11. Let’s build a smarter planet: Oil and Gas
It will use this data to generate insights that will be shared
within units and throughout the organization—driving targeted
actions to ensure efficient, safe and environmentally sound
operations.
EXPLORATION
Geological data
RETAIL PRODUCTION
Government regulations
DISTRIBUTION SHIPPING
STORAGE REFINING
Proprietary Real-time data
Historical data and expertise
External real-time data
Insights
Actions Market Conditions
© 2009 IBM Corporation

12. Let’s build a smarter planet: Oil and Gas
IBM’s solution strategy is aligned with the needs of oil and gas
companies.
ORGANIZATIONS ARE FOCUSED ON… IBM IS DELIVERING…
Enhancing exploration and  High Performance Computing
production  Seismic Data Mapping
 Reservoir Modeling
 Virtualization
 Integrated Operations
- Rotating & Static Equipment Monitoring
- Well Performance Monitoring
- Production Target Monitoring
- Data Validation
 Integrated Information Framework
 Advanced R&D Capabilities
Improving asset management  Integrated Operations Services
- Rotating & Static Equipment Monitoring
- Data Validation
 Enterprise Asset Management
 Turnaround Optimization
 Integrated Information Framework
 RFID Strategies and Technologies
 Asset Lifecycle Management
Optimizing global operations  Enterprise Asset Management
 Health, Safety & Environment strategies
 Business Performance Management
 Supply Chain Optimization
 Workforce Development © 2009 IBM Corporation

13. Let’s build a smarter planet: Oil and Gas
We’ve only just begun
to uncover what is possible
on a smarter planet.
 The world will continue to become smaller, flatter
and smarter. We are moving into the age of the
globally integrated and intelligent economy,
society and planet.
 There’s no better time to start building smarter
petroleum organizations—focused on providing
energy affordably and safely. And there’s no
better time to invest in creating the kind of society
we all desire.
Let’s work together to drive real
progress in our world.
© 2009 IBM Corporation

14. Let’s build a smarter planet: Oil and Gas
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