neftegaz national oil and gas forum 2019...

© Siemens AG 2019

Stefan Engelshove / Vice President Oil&Gas Germany

Neftegaz – National Oil and Gas Forum 2019

Technological Trends, Changing Markets16th April 2019 - Stefan Engelshove Siemens AG Vice President Oil&Gas Germany

© Siemens AG 2019


Global megatrends will shape our lives

in the coming decades …

Globalization

The volumeof world trade nearly

doubledbetween 2000and 2014

Urbanization

By 2050,

70 percent of

the world’s population will live in cities(2014: 54 percent)

Demographic change

The earth‘s population will increase from7.3 billion people today

to 9.6 billionin 2050

Climate change

In 2050, a global temperature increase

by 4°Cis expected

Digitalization

By 2020, the digital universe will reach

44 zettabytes– a 10-fold increasefrom 2013

© Siemens AG 2019


The Digital (r)Evolution

Water & Steam

Electrification

Automation

Digitalization

Digitalization

is still being

defined…

4th Industrial

(r)Evolution3rd Industrial

Revolution2nd Industrial

Revolution1st Industrial

Revolution

Siemens has been at the forefront since the beginning of the Industrial Revolution

© Siemens AG 2019


Vision 2020+

New company organization will go live on April 1, 2019

Gas and

Power

Smart

Infrastructure

Digital

Industries

Operating Companies1 Strategic Companies

2

Revenue

~€14bnEmployees

~71,000

Revenue

~€21bn Employees

~71,000

1 As of FY 2017; on a pro-forma basis 2 As of FY 2017; on a pro-forma basis; subject to regulatory approval 3 As of FY 2018

Revenue

~€14bnEmployees

~78,000

Revenue

€16bnEmployees

~65,000

Revenue

~€9bnEmployees

~23,000

Revenue

~€13bnEmployees

~50,000

3 3

© Siemens AG 2019


Milestones of a 171-year history

1866The dynamo makes

electricity part of

everyday life

1816 – 1892Company founder,

visionary and inventor

1847 Pointer telegraph

lays the foundation

of Siemens as a

global company

1925Siemens electrifies

the Irish Free State

with a hydroelectric

power plant

1975Breakthrough of

high-voltage direct

current (HVDC)

transmission

2010TIA Portal takes

automation a stage

further

2016MindSphere, the

cloud-based

operating system

for the Internet of

Things

2012Test operation of the

world's largest rotor for

offshore wind turbines

1983First magnetic resonance

imaging scanner goes

into operation

1959SIMATIC makes

Siemens a leader in

automation technology

Werner von Siemens Siemens innovations over the past 170 years

© Siemens AG 2019


US$ 8.5 bn+ in Software Acquisitions since 2007

Plant Engineeringand Execution

Product Development and System Engineering

2007 2012 2013 2014 2015 2016 2017

MentorGraphics

CD-adapco

PolarionTESISKineoLMS

PerfectCostingSolutions

UGS –Team-center/NX Vistagy

1958 1995/96 2001 2008 20142013201220112009

ORSI ETM/XHQ

Innotec Ber-wanger –OGMCOMOS

Elanand Active

Rugged-Com IBS

VR Con-text – Walk-inside

Preactor Camstar

1958: Beginning of production automation;

Siemens receives patent for SIMATIC

© Siemens AG 2019


0

20

40

60

80

100

120

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Price

($

/bb

l)‘Lower-for-Longer’ O&G Market Conditions

Require Industry to Adapt

Dated Brent Price

0

48

96

144

192

240

288

Co

st In

de

x (

Ye

ar

200

0=

10

0)- 45%

Upstream Cost IndexLower

CAPEX

Lower

OPEX

Maximize

Recovery

-27%

2000 20162002 2004 2006 20102008 2012 2014

250

200

150

100

50

0

-18%

Operations Cost

Capital Cost

Brent Price

Cost reductions do not compensate for price decline

60-80($/bbl)Brent Oil Price

Improve HSSE

& Quality

New business model – Digitalization as game changer

© Siemens AG 2019


Digitalization Technologies

Digital Twin

Internet of Things Platform

Asset Management

Cyber Security

Edge Infrastructure (OT meets IT)

Analytics

Digital Transformation in Oil & Gas

Oil & Gas

Chemicals and agriculture

Telecom

Automotive

Public sector

Health

Source: McKinsey and Co, 2016

Digitalization maturity index

~18%

Impacts by 2020 …

… increase of revenue share if

analytics will be used for tactical &

strategically decision determination

… of total spend on IoT infrastructure,

driven by time to value of data

collected

high

low

~50%

… product innovation success rates

and organizational productivity gains~25%

… of new IoT applications built by

enterprises will leverage an IoT platform

Source: International Data Corporation (IDC)

FutureScape: Worldwide Oil and Gas 2018 Predictions

High tech

Tourism

Media

Retail distribution

Retail banking

Assembly

© Siemens AG 2019


Health IndustryAutomotive IndustryMaserati, Turin

Marine IndustryHamburg (Siemens Service Center)

We have revolutionized Industries through Digitalization

Mass Transit IndustryBarcelona – Madrid

Applicability to O&G

Remote MonitoringApplicability to O&G

Improved Cycle TimeApplicability to O&G

Image AnalyticsApplicability to O&G

Predictive Maintenance

• Remote diagnosis facilitates

predictive maintenance

• Increased availability

and avoidance of unplanned

downtimes

• 99.9% availability of trains

• Only 1 of 2,300 trips is late

• Remote monitoring facilitates

expert center support

• Increased availability

and avoidance of unplanned

downtimes

• Reduced cost for operation

and commissioning

• 40% of all critical systems

monitored in real time with

expert technical support

• Digital production optimizes

plant design and facilitates

manufacturing flexibility

• Enables shorter

time to market

• 3x more cars produced due

to Siemens Manufacturing

Execution System

• 30% less development time

• Installed in 100+ hospitals,

20+ countries, and applied

to 10,000+ patients

• Automated image processing

enables faster diagnosis

• Enables more patients

to be treated in less time

• 10% higher accuracy rate

and detection of fractures

• 50% reduction in doctor’s

time for bone reading

© Siemens AG 2019


The Next S-Curve in O&G Competitiveness and Efficient –

Operation will come from Digital and Advanced Analytics

Source: McKinsey

First s-curve

1990s – 2000s

Second s-curve

2010 onwards

• 3D seismic

• 3D reservoir modeling

• Linear program optimization

• Advanced process controls

• Data automation

Advanced analytics

Process digitalization

Robotics and automation

Business model innovation

• Advanced analytics in exploration

and drainage

• Analysis based production

optimization

• Predictive analytics for operations

and maintenance

• Engineering productivity optimization

• Automated production systems

• Process digitalization and

visualization

• Next generation BMI

• Business model innovation

• Supplier interface streamlining

Technology enablers

2010s 2020s and beyond1990s and before

Imp

act

© Siemens AG 2019


The IIoT Platform

MindApps

• Data Analytics Apps to gain immediate

insights and transform insights into

actionable results

• Open Ecosystem for costumers, partners

and developers to create MindApps

MindSphere

• Cloud based IoT operating system

connecting OT to IoT environment

• Cloud infrastructure. Public cloud, private

cloud, or onsite solution as a closed system

MindConnect

• Plug and play connectivity for quick connec-

tion of Siemens assets and Open standards

(e.g. OPC UA) to other assets

• Secure and encrypted data communication

MindSphere

Partner

Apps

Costumer

Apps

Siemens

Apps

© Siemens AG 2019


Edge Computing

Edge Computing combines both local and cloud computing

Local computing Cloud computing Edge computing

App installation & deployment on-demand

• Local data and global data (if wanted)

• Shift from global to local intelligence

• Quick software update cycles

for edge devices

• High volume data and low

latency decisions

Device Installed once –

never or seldom updated

• Data transferred per USB stick

or local network

App installation & deployment on-demand

• Central data and global intelligence

• Quick updates in the cloud

• Low frequency data/high latency

of decisions

• Cloud dependency

Machine and

Edge Device

Machine and

Edge Device

Clients

Cloud

- Device

- App Management

Edge

- Data

- Computing

Edge

- Data

- ComputingMachineMachine

Clients

Cloud

Device and

Computing

Workstation Workstation

MachineMachine

SIMATIC IPC127E

© Siemens AG 2019


DIGITAL TWIN

Pre- / FeedDesign &

EngineeringOperations & Maintenance

BLOCKCHAIN

Siemens Digital Services

Asset Performance

Management

Example Applications of Digital Technology

Data Across Asset Life Cycle Drives Development

Fabrication &

Commissioning

AI / MACHINE

LEARNING

PLATFORM

BUSINESS

DRONES AND

REMOTE

SENSING

MOBIL

CONNECTIVITY

AND TABLET

DEVICES

BIG DATA AND

DATA

MANAGEMENTAPI DIGITAL TWIN

© Siemens AG 2019


Digital Twin – a center piece of digital future?

Intelligent Digital Twin

Operate & Maintain

Digital Twin

Concept & FEEDDigital Twin

Design & Build

Process

Twin

Process &

automation

testing, ops

training, what-if

scenarios

EPC/OEM

Services

Predictive

diagnostics,

asset &

production

optimization

Plant

Twin

Smart 3D view of

facility for

construction, P&IDs

& maintenance

planning,

hazops, etc.

Intelligent

Monitoring

Analytics and

reporting for

operational KPIs &

equipment condition

monitoring

IoT

Data Hub

Standardization

© Siemens AG 2019


The Digital Twin combines the best out of two worlds –

data based approaches combined with model based approaches

Lior Horesh (2016): Should you derive? Or let the data derive= Towards a first-principles data-driven symbiosis

Physical Models Data Driven Models

Data Reliance Small Data Big Data

Domain Reliance Deep Domain Expertise Little domain

knowledge

Fidelity &

Robustness

Highly non-linear and

complex relations

Limited to data and

model complexity

Adaptability &

Deployability

Complex and time

consuming setup

Rapidly adapt to a

specific problem

InterpretabilityConsistent physical

meaningful

Physics agnostics

surrogate

Vo

lum

e o

f R

ele

va

nt D

ata

Physical / Knowledge Base

Machine Learning

Data-driven model Combining data- and

physical models

Digital Twins

Physical model

SimulationKnowledge -based

https://www.ima.umn.edu/materials/2015-2016/SW2.22-24.16/24611/Horesh.pdf

© Siemens AG 2019


Integrated engineering data from greenfield and brownfield

Digitalization

changes

everything

© Siemens AG 2019


Siemens drives the Digital Enterprise for Process Industries

Digital Twin & Simulation

Recipe,

feedstock

quality, …

Process &

plant

documen-

tation

Real Plant

Integrated Operations

& Services

Digitally enhanced products

Secure Connectivity

Maintenance

Cloud platform and operating system

Asset Performance Management

Integrated Engineering

(2D/3D) & commissioning

Data analytics

Product designProcess &

plant design

Engineering &

commissioningOperation Service1 2 3 4 5

VIRTUAL

WORLD

REAL

WORLD

© Siemens AG 2019


Examples to display real time status & Values in 3D

© Siemens AG 2019


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010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101

010101001010101010101010101010101010101010101010101010101010101010110101010101010101010101

010101010101101010101010101010101010101010101010101010101010101010110101010101010101010101

Dashboard Operations Intelligence

Overview

Aggregate and Integrate

Contextualize

Visualize

E-Logs!!

010101010101001101010101

010101010101010101010101

010101010101010101010101

010101010101010101010101

010101010101001101010101

010101010101010101010101

010101010101010101010101

010101010101010101010101

Corporate KPIs

PAT, EBIT, Safety, Environment, Ops

Efficiency etc.

Plant Performance & KPI

Projects, Production Plan/Actual,

Cost, Sales & Marketing etc.

Plant Operations

Quality, Facility Utilization,

Maintenance, Energy etc.

Process &

Functions Details

Samples, Tag Details,

Work Orders etc.

With real-time data integration, translates data into meaningful information

to improve your operations performance

© Siemens AG 2019


Digitalization is a reality in Oil & Gas – selected use cases

© Siemens AG 2019


Advanced

3D simulations

Virtual training to enhance safety and efficiency

• Enabling offshore operating personnel

to train ‘virtually’ under realistic conditions

• Promoting operational safety

• Enhanced training efficiency

© Siemens AG 2019


Advanced

3D simulations

Standardization to enhance safety and efficiency

• Configuration with a base skid and

modules

• Minimum installation an site requirements

• Short commissioning period

• Up to 25% power savings

• Factory-built and pretested

• Packaging in low cost environment

• Minimum Interface

© Siemens AG 2019


Digital Field - Modular Automation for O&G production facilities

MPFO Process Modules

Plant overview

© Siemens AG 2019


Control Room / SCADA

➢ Monitoring

➢ Alarms

➢ Software upgrades

➢ Central shutdown

Digital Field – Low Cost Well Surveillance

Low Cost Well Surveillance:

➢ Keep the existing gauges

➢ Install just one box close to the well

➢ No connections to X-mas tree required

➢ Charge the battery once a year

➢ Transmit data which matter - with optimized bandwidth

➢ Invest the bare minimum for well digitalization

Radio / WiFi

Mobile InterfaceField connectivity

http://www.google.at/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj8sciPlbbWAhWDK5oKHXGEAFEQjRwIBw&url=http://www.directindustry.com/prod/siemens-automation-engineering/product-180278-1775871.html&psig=AFQjCNFXjl2ioxLKwnhSxnJ-Pv3X6otzbA&ust=1506079386008658

© Siemens AG 2019


Additive

Manufacturing

© Siemens AG 2019


Gas turbine focal areas for Additive Manufacturing today

€

Complexity

High tech components with complex design and high potential to improve

customer value

efficiency, durability, life cycle improvement

Combustion System

Burner / Swirler / Nozzle / Mixer

Turbine

Blades and Vanes

Conventional AM

© Siemens AG 2019


AM enabling a revolution in spare parts manufacturing design freedom – no restrictions anymore

Game-changer Value generated

Why do we use Additive Manufacturing?

Is it a game-changer?

If you can dream it, you can print it…

From… via… …to:

Solid form Ideal lightweight lattice structure

best fit selections from multiple variants

© Siemens AG 2019


Three main pillars of AM application

Rapid prototyping Rapid repair Rapid manufacturing

1 2 3

Product: SGT

Component: e.g. Turbine blade 1

Benefit: Significant reduction of time to market

Status: Part of standard process

Product: SGT

Component: Burner tip

Benefit: 10 times faster,easy upgrades

Status: In commercial application

Product: SGT

Component: Burner swirler

Benefit: Swirler can only be madevia SLM

Status: In commercial application

© Siemens AG 2019


Additive Manufacturing – our vision

R&D and

Design & Engineering

By 2020:

Fully operational and automation

workshops

By 2025:

Printer cloud, spare parts on

demands from digital twins

• Spare parts on demand are produced close to our customers out of the digital twins

• Obsolete spares can be reproduced by AM and 3-D & CT Scanner

© Siemens AG 2019


Integrated engineering data from greenfield and brownfield

• Front End Engineering

• 2D drawings

• P&ID

• Spec sheets

• Detailed engineering

• Requirements

All engineering data at your fingertips, in context, from any source, for any purpose

© Siemens AG 2019


Integrated operational data

• Historian

• ERP

• Maintenance systems

• Edge (well data)

• Laboratory systems

• Inspection systems

• Simulation and analytics

Use operational information to make better and faster decisions

© Siemens AG 2019


Virtual presence instead of local

• 3D visualization

• Detail parts view and explosion

• Maps

• Immersive operator training

• Field work planning

Spatial perspective helps you put things in context

© Siemens AG 2019


Customer benefits

• Process Optimization and improved

operational transparency

• Maximum efficiency and asset utilization

Unrestricted © Siemens AG 2017

November 2017Page 35

Use Case: Onshore Oil and Gas Production

Upstream Solutions – Digital Oil Field

• Comprehensive portfolio of integrated solutions

utilizing Siemens Digitalization technologies

• Digital oil field portfolio includes Predictive Maintenance

solutions based on Artificial Intelligence and Edge com-

puting solutions for remote locations

• Reservoir management utilizing Cloud based data ser-

vices offering central access for production optimization

• Complete communication solutions optimized

for Oil field requirements including full spectrum

of Cyber security solutions

© Siemens AG 2019


Aker BP, Ivar Aasen, North Sea

Remote Operations Center

• Operating offshore platform real time from onshore

• Integrated E-A-D solution

• Asset Performance Management and Safety applications

• Condition Monitoring analytics based on high quality data

• Advanced condition based maintenance of critical

equipment’s process optimization through advanced

process control

• Lifecycle process simulation and training software

for training in safe environment



Customer benefits

Maximize production with 60 – 70%

less offshore operators required

leading to ~30 % savings

© Siemens AG 2019


• High resolution event based data. Replication

of data from offshore to onshore using the MindSphere

for Offshore Historian

• Historian and control system synchronized using Automation

Configuration Tool. Historian has all meta data available

• Template based condition monitoring and performance

monitoring utilizing MindSphere for Offshore Analytics

• Responsive HTML5 dashboards for visualization

in MindSphere for Offshore Dashboards

• Integration of data from multiple source in one place.

Easy and Intuitive access to Equipment Data

Use Case: Aker BP, Ivar Aasen, North Sea

Data Acquisition and Historian



Customer benefits

• Secure infrastructure with high availability

• Increase availability and productivity

• Savings by using predictive maintenance

© Siemens AG 2019


Customer benefits

• Reduced risk for cyber attacks

• Increased robustness of the assets

• Reduced cost for incident handling



Use Case: Executed many projects with IOCs/NOCs globally

Cyber Security Solutions

• IEC 62443 based solutions for active asset

management, long term service agreements

• Obsolescence management,

network architecture documentation

• Improved protection of critical systems

• Development of suitable procedures together

with the operator (e.g. for USB storage media

usage, patch management)

• Hardening of networks e.g. by removing/

disabling unnecessary services

• Vulnerability reporting

© Siemens AG 2019


Customer benefits

• Reduce time for maintenance

and stop with 20%

• Higher availability, reducing planned

and unplanned stops

Statoil LNG

Drive Train Analytics



• Reliable and sustainable service solutions

along the entire Lifecycle of customer’s assets

• Central dashboard to monitor

and access asset history data

• Reports and actionable analyses

• More efficient and responsive customer service

• Simulation via Digital Twin for corrective troubleshooting

• Enhanced Drive Train Analytics based on real customer

requirements and feedback loop to product improvements

© Siemens AG 2019


Customer benefits

• Automatic and reliable control and

logging of multiple loaded products

at one location and in random order

• No emissions of vapors



Tüpraş, On Spot Rail Car Loading Station, Kirikkale, Turkey

Safe and fast loading operations

• Sophisticated and automated filling procedure based

on a Digital Terminal Management System

in combination with a PCS 7 DCS

• Integrated digital solution from field to MES levels

covering metering system and instrumentation,

power distribution, fire and gas detection, fire fighting

• Complete solution including mechanical equipment

like loading arms, shunting system, HVAC, valves, filters

© Siemens AG 2019


Customer benefits

• Operation at highest efficiency levels

• Maximum asset utilization



Use Case: Onshore Oil and Gas Storage and Distribution

Digitalization in Tank Farm and Terminals

• Digitalization and automation master plan

• Concept, basic and detail design on the basis

of integrated engineering and operations

• Cloud based data processing and optimization

of operation e.g. tank inventories and optimized loading/

unloading procedures

• In-build cyber security as well as physical security

and safety of operations

• Lifecycle services including e.g. Obsolescence and spare

part management, preventive and corrective maintenance

© Siemens AG 2019


• Onshore/offshore Operation Center for remote operations

and surveillance of offshore installations

• Digital Twins - Onshore Operator Training- and Test

Simulator with emulated (virtual) controllers and lifecycle

process models for training and engineering in safe

environment

• Onshore Remote Expert Center to support experts and

management, for real time decisions and collaboration.

Remote access to offshore integrated safety and process

control system, for onshore short notice support

• Predictive and Condition based maintenance

Customer benefits

• Operational risk mitigation due to test

and training in safe environment

• Increase availability and productivity

• Cost saving, reducing manpower offshore

Use Case: Eldfisk, North Sea

Remote operations/Lifecycle Simulation



© Siemens AG 2019


Charter of Trust – joint initiative for a secure digital world

Objectives

1

2

3

Protect the data of individuals and companies

Prevent damage to people, companies and infrastructures

Establish a reliable foundation on which confidence in a networked, digital world can take root and grow

charter-of-trust.com

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