PPDM SupportsBusiness Process Improvement

Exploding data volumes threaten to overwhelm business process improvements

8th International Conference on Petroleum Data Integration,E-Commerceand Data Management

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Yogi SchulzBiography

• President of Corvelle Management Consultants• Information technology related management consulting• Project management and systems development • Computing Canada & Calgary Herald columnist• PPDM Association board member• Industry presenter:

– Project World - 4 years– CIPS Informatics - 7 years– PMI Information Systems SIG - 2 years– Convergence - 4 years– PPDM Association - several years

Management Consultants

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Outline

• What have we achieved?

• Forces acting on E&P Companies

• Indicators of exploding data volume

• Data explosion issues

• Responses to data explosion issues

• Conclusions

• Recommendations

• Questions & Answers

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Improved application interoperability

• Database:– capability– availability

• Data:– model– management– exchange– quality

• Hardware:– reliability– price/performance

• Software:– functionality– robustness

• Operating system:– ease-of-use– data access/sharing

• Network:– bandwidth– ubiquity– reliability

Achiev

ed

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Vacations 8%

Lookingfor data

60%

Lookingfor data

26%

Handlingdata24%

Usefulwork50%

Source : Major petroleum firm

Source : Oil & Gas JournalFall 1991

Usefulwork18%

Meetings5%

Training4%

Unproductive5%

E & P Professional’sTime Effectiveness

Engineers & Technical Staff

Professional Engineering & Technical Staff

Achiev

ed

But wait - we need more!Achievements are threatened

E&P Companies are facing new forces in the globaloil & gas industry

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Forces acting on E&P Companies here & now

• Asset Mix/Optimization

• Shareholder Return

• Oil & Gas Price

• Technology

• Workforce Demographics

• Globalization

• EnvironmentRead detail

as homework

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Indicators of exploding data volume - 1IT Analyst projections• IDC reports storage capacity growing 36%

year-over-year to 181.6 petabytes shipped during the second quarter of 2003

• Gartner Group IT infrastructure expenditure changes:– 1998 - 75% CPU, 25% storage– 2003 - 25% CPU, 75% storage

Real-time survey:Who is regularly running out of disk space?

Explo

ding v

olum

es o

f dat

a

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Indicators of exploding data volume - 2Seismic data

Measure ofGrowth

1982 1987 1992 1997 2002

AcquiredTracesPer Sq Km

24,000 32,000 48,000 72,000 120,000

AverageCenterG Bytes

1 10 100 1,000 35,000

AverageCenterG Flops

0.01 0.1 1 100 2,000

ComputeTechnology

PhoenixVAX

VAXConvexIBM MFIBM RS

IBMFijitsuCrayIntel

IBM SPSGI

IBM SPPC Cluster

StandardProcessingTechnologies

FK FilterNMO

FKDemultipleDMO

FKDemultiple3D DMO

RadonPSTM

SRMEKPSTMKPSDMAnisotropy

Explo

ding v

olum

es o

f dat

a

10

0

20

40

60

80

100

120

1 2 3

MB

Indicators of exploding data volume - 3Well log data

60

40

20

0

100

80

1980 1990 2000

MB/trip

LIS/BIT

LIS

DLIS

Explo

ding v

olum

es o

f dat

a

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Data explosion issues

• Observations:– Loss of knowledge about available data– Highly visible impact of poor data

management practices– Sluggish response times

• Consequences:– Frustration– Irritation– Loss of productivity– Elongated cycle times

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Solutions exist in all components of the work environment

Computing Infrastructure

Data Business Process

Software

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Actions to tame the data explosionComputing Infrastructure

• Network:– WAN bandwidth -

fiber– LAN bandwidth -

gigabit Ethernet– architect with

redundant routing– sub-net– load balance

• Database:– performance

optimization– smart disk– link external and

internal datastores

• Hardware:– SAN/NAS– large memory– fail-over

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Actions to tame the data explosionSoftware• Rationalize the application software set

• Explore/exploit EAI

• Set a multi-tier application architecture as the goal

• Favor PPDM-compliant application software

• Recognize that a single vendor strategy results in uneven application portfolio capability

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Actions to tame the data explosionBusiness Process

• Confirm presence of common issues:– lack of data integration– gaps in the application portfolio– bumps in the business process – resistance to agreed business process– lapses in data quality– gaps in the computing infrastructure

• Address data and software issues to improve business process

• Improve process with collaboration

Procedures

Policies

Practices

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Actions to tame the data explosionData - 1• Data Model:

– implement PPDM– contribute changes/ideas/extensions

• Data Exchange:– recognize that a monolithic datastore is

not achievable or necessary– utilize the XML transaction definitions

• Meta Data:– build a catalog/taxonomy– publish catalog contents widely

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Actions to tame the data explosionData - 2• Data Management:

– implement data stewardship– reward staff for deleting unnecessary data

• Data Quality:– introduce common definitions of business

concepts through PPDM and PIDD– clean data to enhance integratability– implement PPDM data content

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Conclusions

• Exploding data volumes are:– a consequence of responding to forces

acting on E&P companies– undermining business process

improvements

• PPDM deliverables form part of the solution

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Recommendations

• Address weaknesses in:– computing infrastructure– software– business process– data

• Support relevant PPDM Association workgroups

• Implement PPDM deliverables

Preempt lossof

achievements

PChourglass

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Questions & Answers

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1800, 250 - 6th Ave. S.W.Calgary, Alberta Canada T2P 3H7

Phone/Fax: (403) 249-5255E-mail: YogiSchulz@corvelle.com

Web: www.corvelle.comManagement Consultants

PPDM supportsBusiness Process Improvement

• President of Corvelle Management Consultants• PPDM Association board member• Information technology related management consulting• Project management and systems development • Computing Canada & Calgary Herald columnist

Yogi Schulz

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Bibliography - 1• Change processes for efficiency

– Al Escher, Hart’s E&P, June 2003, p.7– http://www.eandpnet.com/ep/previous/0603/0603report.htm

• Data integration expands E&P choices– Patrick Deneen, Kjetil Tonstad, Thomas Halland, Hart’s E&P, October 2003, p.85

• Environmental Benefits of Advanced Oil & Gas Exploration and Production Technology– http://www.fossil.energy.gov/programs/oilgas/publications/environmentalbenefits/5explor.pdf

• IDC Reports Worldwide Disk Storage Market Declines in Second Quarter, But North America Shows Growth for Second Consecutive Quarter - 05 Sep 2003

– http://www.idc.com/getdoc.jhtml;jsessionid=S1G4051M0FJ02CTFA4FSFEYKMUDYUIWD?containerId=pr2003_09_04_154749

• Industry Perspectives - An IBM point-of-view– John Haslett, Upstream Petroleum Solutions Forum, 25 September 2003

• Integrating Seismic Data Processing and Visualization– http://www.pgs.com/technologynow/visualisation/dbaFile10380.html

• Light on the horizon - Holographic data storage – The Economist, 31 July 2003– http://www.economist.com/science/displaystory.cfm?story_id=1956881

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Bibliography - 2• Malibu - Wellcore well life cycle

– http://www.malibugroup.com/prod_wellcore_life.html

• Move to real-time decisions– Don Lyle, Executive Editor, Hart’s E&P, October 2003, p.81

• Optimized Workflows for Integrated Seismic Evaluation– http://veritas-web3.veritasdgc.com/WebSite/VTechDocWeb.nsf/all/

E9363F43904B2FDF87256CA5004213CD/$File/0035.pdf

• Rational virtualization opens E&P eyes– Maggie Montaigne, Hart’s E&P, October 2003, p.87

• Solutions for the Energy Industry– http://www.intel.com/business/bss/industry/energy/index.htm

• Well log file size estimates– Orestes Appel, GeoQuest

• WellPoint - MaxWell well life cycle– http://www.wellpoint.ca/solutions/Solutions_Maxwell.htm

• Work benefits from group computing– Al Escher, Hart’s E&P, July 2003, p.7– http://www.eandpnet.com/ep/0703report.htm

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Asset Mix/Optimization

• Description:– depletion of onshore reserves– convergence with utilities– NOC ownership of reserves

• Responses:– focus on deep water/emerging basins– growth through merger– non-core asset divestiture– benchmarking focus– risk management

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Shareholder Return

• Description:– market performance expectations

• Responses:– increase returns to maintain access to

capital markets– reduce costs– reduce capital requirements through

outsourcing & alliances

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Oil & Natural Gas Price

• Description:– Uncertainty/volatility– OPEC control

• Responses:– hedging– risk management

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Technology

• Description:– leverage to improve recovery– leverage to reduce cycle times/costs

• Responses:– e-Business– supply chain rationalization– immersive visualization– Measurement While Drilling - MWD– remote operations– deepwater production technology– enhance seismic interpretation

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Workforce Demographics

• Description:– aging workforce– shrinking workforce– changing demographics

• Responses:– knowledge management– outsourcing– collaboration– new relationships/alliances

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Globalization

• Description:– Asian development & expansion– Former Soviet Union development– government activism– corporate citizenship expectations

• Responses:– new ventures/alliances– enhanced communication/lobbying

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Environment

• Description:– Maritime law– Health, safety, environment expectations– disposal of inactive fields & platforms– increasing litigation

• Responses:– HSE attention/investment– alternative fuels– reduced footprint field operations– more communication/lobbying