asset performance management - ge oil & gas upstream apm lng/fpso apm midstream apm downstream...

© 2017 General Electric Company - All rights reserved

Asset Performance ManagementThe Impact of Software on Unplanned Downtime


Introduction to APM

Binu Mathew

2

Confidential. Not to be copied, distributed, or reproduced without prior

approval.

Edge to Cloud Distributed Compute

Digital Twin and Physics-based Analytics

Digital Transformation+ =Built for

industry +

Machine connectivity Industry insight

machine apps

automation & control +

intelligencemachine learning

scalable cloud

machine-level

securitydata

governanceDigital Twins

The Predix Difference: Built from the ground up for industrial computing

3

APM Value Proposition

Reduce Cost

Manage RiskImprove

Availability

strengths strengths

strengths+

Benefits

Enabling Platform

PREDIX EDGE Cyber Security

Reliability

Management

Compliance &

Integrity Mgmt.

Asset Strategy

Optimization

Machine & Equipment Health

Operational

Intelligence

Forecasting &

What-If Analysis

Process & Perf.

Optimization

Business Applications

AP

MO

OAPM Solution Map

1.61.4

0.70.5

0.3 0.3 0.30.1

Oil

& G

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Ele

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APM Opportunity - Industry Landscape2017 T

AM

($ in

B)

*ARC APM Market Sizing Research


The Journey to value for Oil & GasThe journey to value for Oil & Gas operators

Phase 1ACCELERATED

RESPONSE

Phase 2REDUCE NPT

Phase 3OPTIMIZE

PRODUCTION

Phase 4AUTONOMOUS

OPERATIONS

© 2017 General Electric Company - All rights reserved 7

• Utilize &

extend

Predix, APM

& Meridium

cloud

services

• Contribute to

GE Store

O&G Digital Product RoadmapO&G Vertical Applications

Visualization

Incident

Management

Inspections

On-ramp

System 1

On-rampEdge

SimulationAsset Services

Connectivity

Data

Management

Analytics

Orchestration

Risk

Management

System Health

CollaborationOperations

Optimization

Maintenance

Optimization

Core Services

Digital Twin Foundation

Edge & On-Ramp Services

Digital

Inspections

APM LNG/FPSOAPM Upstream APM DownstreamAPM Midstream• Onshore

• Offshore

• Subsea

• LNG

• FPSO

• FLNG

• Refinery

• Petrochemical

• Pipelines

• Storage

• Non-Productive

Time Avoidance

• Production

Optimization

8

Outcome KPI 2017 2020Value to

Customer*

Value to

Segment

Reduced NPT- LNG Reliability 2-3% +1% $40-50M

$3-7B

LNG process optimization Production +4% +6% $5-10M

Avoid unplanned downtime Availability 1% 3% $10-20M

$6-12BReduce OpEx cost-

RefiningOpEx Cost $30k/d $60k/d $10-20M

Reduce artificial lift NPT Availability +3% +8% $10-25M

$5-8B

Optimize lift sizing Production +10% +25% $20-30M

Reduce NPT - drilling Cost/well 10% 30% $5-$15M $15-20B

Maximize ultimate recovery ROA 20% 40% $300-$350M $20-50B

$200bOpportunity

for industry

Creating the Fullstream productivity leader for the oil and gas industry

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*Annualized value creation opportunity for average sized opportunity (ie: mid-sized refinery, mid-sized LNG facility, 100 BOPD oil field

operation)

Oil & Gas Predix APM Powered Outcomes

9


Asset Performance Management + PMA for Subsea

• Regional vs Global well production mgmt

management

• Multiple “System of Record”

Reduced production deferrals

Contributing to 5-10% Eng.

Productivity

1-2% production increase via

visibility & decision making

Production Management Analysis (PMA)

Full deployment … cover 4,000+ wells & asset classes

Next Steps:

Merge solution with APM for

Upstream and Smart Facilities

capabilities

Customer Challenge Solution Outcomes &

Value

Events, alerts,

workflows

• Global Best Practice Business

Process for Well Performance

Management globally

• System of Record for well test,

pressure transient analysis, and well

performance & alerting

• Real-time remote performance

monitoring for Subsurface base

management surveillance

$30 MM+bottom line impact

Alignment to

BP OMS

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Asset Performance Management Overcomes Challenges in the Oil & Gas Industry

ARCPresented By:

Craig ResnickVice President

ARC Advisory [email protected]

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http://central.arcweb.com/Employee Pictures Low Res/CResnick.jpg


Asset Performance Management (APM) in the Oil & Gas IndustryLower energy prices, pressure on

profitability, challenges to reduce

costs without increasing risks

• Risks: safety or unplanned downtime, human

resource-constrained

• Regulatory compliance, employee safety,

uptime, sustain aging production, automation

assets

• Surveyed 100 oil & gas personnel globally, on

and offshore, all company sizes, executives,

engineering

• Disparity over what APM means


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What is Asset Performance Management, as clarified in APM survey?

APM improves asset reliability and availability, reduces cost, and

Reduces operational risks in the demanding oil & gas industry

OBTAIN ASSET HEALTH DATA RELIABILITY MAINTENANCE

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Unplanned downtime – Driving force for oil & gas industry to deploy APM

Impact of Unplanned Downtime on Production

(Source: ARC Survey of Senior Executives and Engineering, Operations, and Maintenance Managers in Oil & Gas)

Total installed base of systems

reaching the end of their

useful life: $65 billion

Total installed base of systems

older than 20 years: $53 billion

Average impact of unscheduled

downtime: $20B or almost 5 percent

of production in the process

industries

Eliminating unplanned downtime delivers one of the best ROAs14


3-5% of lost

production in

oil & gas

Business consequences of unplanned downtime

~$10,000/hr for a 2000 hp

natural gas

compression

station

~10X the cost

for unplanned

events vs.

planned

maintenance in

process

industries

5-10% increased

inventories and

labor costs, delayed

delivery, reduced

profitability in the oil

& gas Industries

Eliminating unplanned downtime delivers immediate bottom line results15


Major benefits expected from APM in oil & gas

Operating companies can expect to reap

huge benefits from APM

Implementing APM requires significant

time and effort to implement new work

processes, enabling technology, and

training employees

An investment in asset performance

management can often provide a

rapid ROI, especially with modern

APM solutions

These APM systems had often been difficult to justify

up front, but expected benefits help to justify 16


Reducing unexpected

stoppages helps lessen

• Equipment failure

• Operator error

• Nuisance trips

Direct impact

• Minimize equipment

damage and

environmental harm

• Increase worker safety

• Less missed production

Results – Increased

KPIs

• Increased efficiency

• Higher profitability

Expected APM benefits of improving reliability and reducing unplanned downtime

APM provides measurable KPI justification17


Corporate culture’s influence on organization

Corporate culture affects utilization of big data

Automation asset influenced

• Increasing the overall

availability of system assets

• Implementation of fault-tolerant

systems

Human influenced

• Training to eliminate human

errors

• Improving coordination between

processes at multiple layers

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• Production is king,

APM must be seen

to help production

• Driving factors in

APM adoption cost

reductions, efficiency

improvement

Questions regarding how important is APM to the organization?

• Energy mgmt. also a

driving factor in APM

adoption

• Some struggle to

quantify value of

APM, encounter

resistance from

stakeholders

• Initial capital outlay is

leap of faith with

unclear returns

• Any help suppliers

can provide to demo

and quantify APM

value needed

• Currently, low oil

price impacting

CAPEX

• Projects without solid

return on investment

will not be approved

Suppliers beware of overselling, failed implementations takes years to overcome19


Questions regarding assets monitored and would APM standards be helpful?

What types of assets are monitored?

• Application of condition monitoring to production

assets (rotating and reciprocating equipment) is more

practiced and understood than automation assets

(field devices, control valves, analytical devices, and

the networks that connect them)

Would APM standards be helpful?

• Industry standards welcomed by user community, but

Value of certification currently remains suspect

• ISA108 Intelligent Device Management standard may

aid in effort to monitor automation assets

• ISO 55000 Asset Management Standard not yet

having an impact in industry

• Users prefer standards to level playing field of

suppliers to facilitate comparison of solutions

20


Questions regarding how important is IT/OT convergence, knowledge capture and equipment health?

Important of IT/OT convergence and knowledge

capture?

• The convergence of IT/OT varies widely by organization

• IT can prohibit access to or usage of external sources

• Some desire to retain control of the data and knowledge

• Concerns over data ownership not openly expressed

How important is equipment health to organization?

• For fracking operations, drilling efficiency and well

management are most critical activities making well data

(60%) of greater value than physical asset data (40%)

• These operators actively monitoring drilling activity, but

not necessarily the equipment performing the drilling

21


Questions regarding would you consider third parties for plant operation?

Will automation suppliers be industry’s choice

for performance-based contracts for full service

operation, operate and maintain for a fee?

• Users are uncomfortable with the level of supplier

process familiarity and knowledge of industry processes

• The consensus is that automation suppliers are experts

in their equipment, but not necessarily industry

processes

Preference: single OEM vendor or partner

ecosystem?

• Preference for a systems approach to optimization as

opposed to point solutions for individual assets

• Concern over ability to manage the number of suppliers

involved to monitoring a single location

• Reluctance to put all eggs in basket of a single vendor

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Summary: APM Value Proposition for asset owners

Improve performance

• Reduce downtime using predictive maintenance

• Easily share info internally and externally

• Collaborate with suppliers to solve process problems

Lower asset lifecycle costs

• Supports remote monitoring, remote fixes and updates

• Lower service costs

Platform for innovation

• Pay for value, not for product

• Collaborate with suppliers to improve products to meet your

needs

• Poised to utilize additional sensors and wireless for IIoT

APM can help you achieve breakthrough performance


23


APM Meridium Demo

Joe Nichols

24

APM Intelligent Asset Strategy Model

Define Strategy(mitigation)

Criticality

Failure Modes

Damage Mechanisms

Optimized Plan

(inspect, monitor, PM)

Re-evaluate Risk

(new DM)

Change Strategy

(Interval)

Connect & CollectSensor Data / Alerts / Events

Inspection Data / Alerts / History

Events

Drive Work

(repair)

Engineer, Operate, and

Maintain

Analyze + Action

Assess Risk

MobilityCloud Services

and Applications

IT Cyber

Security

Software

Development Kit


Digital Upstream Demo

Scott Raphael

26


Revolutionizing Upstream through Software

Field Vantage

• Artificial Lift Focus• Monitor Advise

Optimize

Digital Maturity

En

terp

rise

Valu

e

Digital Upstream

Unified, holistic view

Full asset optimization

Connected workflows

Enterprise scalability

Quick deployment

Always up to date

Managed Service

27

28

Delivering outcomes that matter…

Optimizeproduction

ImproveReliability

• Recovery Factor (OOIP Conventional)

• Utilization Ratio(CO2 EOR)

• Utilization Ratio(SAGD SOR)

• Gas Lift Production Gain

• Power Quality Deferments

• Unplanned Downtime

• Planned Downtime

• Failure Rate

KPI Potential Impact

5% - 10%

1 Mscf / bbl

5% - 15%

10%

50%

10% - 40%

15% - 45%

10% - 20%


O&G Vertical Product Suites

Visualization &

Collaboration

Incident

Management

Inspections

On-ramp

System 1

On-rampEdge

SimulationAsset Services

Connectivity

Data

Management

Analytics

Orchestration

Risk

Management

System Health

Workflow

Optimization

Operations

Optimization

Maintenance

Optimization

Core Services

Digital Twin Foundation

Edge & On-Ramp Services

Digital

Inspections

LNG/FPSOUpstream DownstreamMidstream• Onshore

• Offshore

• Subsea

• LNG

• FPSO

• FLNG

• Refinery

• Petrochemical

• Fertilizers

• Pipelines

• Storage

• Non-

Productive

Time

Avoidance

• Production

Optimization

Customer

Outcomes

Predix + APM + Digital Twins = A Step Change

29


Digital Upstream Roadmap

ExplorationField

Development ProductionGathering &

Processing

Abandonment

& Remediation

Life Cycle

Optimize Production

Improve Reliability

Operational Intelligence

Phase 1 Phase 2 Phase 3

• Performance & KPIs

• Surveillance• Open Analytics Engine

• Well Optimization

• Lift Optimization

• Equipment Health

• Power Management

• Prognostics & Lifing

• Reliability Centered

Maintenance

• Process Visualizer

• Flowback Advisor

• Flood Optimization

• Network Optimization

• Process Visualizer

• Economic Decision

Support

• Flow Assurance

• Equipment Lifecycle

Management

30


ServiceMax Demo

Laurent M'BarekSolution Consultant, ServiceMax

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Field Services Transformation

32

The Leader in Field Service Management

100% Cloud-Based

Built on Salesforce App Cloud

400+ Customers in 40 Countries

Comprehensive Product Suite

Ecosystem of Technology Partners & SIs

1 Million+ Mobile Syncs Each Day

Used at 18+ million Locations

33

THE FIELD SERVICE EFFECT

2016 ServiceMax Customer Survey

AVERAGE

RESULTS

FROM OUR

CUSTOMERS COMPLIANCE

13%

Increase in

service revenue

18%

13%

Decrease

in repair time

11%Increase in

Net Promoter

Score

19% Decrease in

compliance

incidents

11%

Increase

in contract

renewals

15%

Reduction in safety

incidents

8%

CUSTOMER

EXPERIENCE

PRODUCTIVITY &

EFFICIENCYGROWTH &

REVENUE

Decrease in

service cost

Increase in technician

productivity

34


Digital Transformation Panel

Andrew SmartEnergy Group

Managing DirectorAccenture

Fae ShongO&G Advisory Strategy

Lead & Global Digital Lead EY

George MurphyPartner Leader

GE Oil & Gas

B NarayanGroup President

Reliance Industries Ltd.

37

asset performance management - ge oil & gas upstream apm lng/fpso apm midstream apm downstream...

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