well servicing rig data capture & witsml
DESCRIPTION
Well Servicing Rig Data Capture & WITSML. WITSML SIG May 2005 Lars Crotwell [email protected]. - PowerPoint PPT PresentationTRANSCRIPT
Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company, the Company’s industry, management’s beliefs and certain assumptions made by management. Whenever possible, the Company has identified these “forward-looking statements” by words such as “expects”, “believes”, “anticipates” and similar phrases. Listeners are cautioned that any such forward-looking statements are not guarantees of future performance or the results of the ongoing review and restatements and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: the risk that the systems will not be able to deliver savings or operate properly; and risks concerning the Company’s ability to install or deliver units. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
Today’s Topics
Key Energy and Well Servicing Work
KeyviewTM overview and architecture
Examples of Improvement
WITSML – Planning for the Future
Dominant provider of U.S. production services: #1 in well servicing / workover - largest in world (1000+ rigs) #1 in fluid hauling services (2382 fluid hauling vehicles) #4 in fishing & rental tools (20 locations, 65 fishing specialists) U.S. land pressure pumping (fracturing, cementing)
Coiled tubing
Technology for customer value & operating efficiency Significant capacity for growth
Key Energy Snapshot
Well Work Today Drilling Technology
SCR
Top drives, equipment automation & control
Rig monitoring
Integrated control & information system
WITSML
Well Servicing & Workover Technology Disk brake
Joy stick
Well Servicing & Workover Expenditures (NAM) 2004 = $2.057 billion *
Significant Opportunity to Reduce Well Servicing & Workover Expenditures
* Note: Data from Spears & Associates Inc.
If You Can Measure It You Can Improve It
Need to Monitor Certain Rig Equipment Quality of workflow
Efficiency of equipment utilization
Safety in workflow
Need to Capture Work Activities Efficiency of workflow
Additional opportunity for collaboration, benchmarking
Need for Near Real-time Data Visibility via Internet Opportunity to minimize wellsite supervision
Allows more efficient use of subject matter experts
Opportunity to understand & solve problems during job
Keyview: Well Servicing Rig Data Capture Project
Goals View select equipment components to monitor quality & efficiency of workflow
Capture workflow activities without encumbering rig operator
Make data available to Key & customer via internet
Present data in format that allows for rapid decision-making
Reduce Key & customer operating costs
Decrease customer production downtime
Status ~165 rigs instrumented
33 domestic customers online
14,500+ “measured” jobs completed, 250,000+ hours of data
Multiple efforts with customers to optimize work processes
Largest Intellectual Property Portfolio in Production Services Industry Patent #6,079,490 – Remotely Accessible Mobile
Repair Unit For Wells Patent #6,578,634 – Method Of Monitoring
Pumping Operations Of A Service Vehicle At A Well Site
Patent #6,377,189 – Oil Well Servicing System Patent #6,276,449 – Engine Speed Control For
Hoist And Tongs Patent #6,374,706 – Sucker Rod Tool Patent #6,241,020 – Method Of Recording Cross-
load On Mobile Repair Unit For A Well Patent #6,209,639 – Method Of Ensuring That
Well Tubing Was Properly Stretched Patent #6,213,207 – Method Of Distinguishing
Between Installing Different Sucker Rods Patent #6,253,849 – Method Of Distinguishing
Raising And Lowering Of Tubing And Sucker Rods
Patent #6,212,763 – Torque-turn System For 3-element Sucker Rod Joint
Patent #6,164,493 – Oil Recovery Method
Patent #6,168,054 – Oil Recovery System And Apparatus
Patent #5,711,382 – Automated Oil Rig Servicing System
Patent #5,988,299 – Automated Oil Rig Servicing System
Patent #5,027,903 – Coiled Tubing Velocity String Hangoff Method And Apparatus
Patent #5,297,631 – Method And Apparatus For Downhole Oil Well Production Stimulation
Patent #5,439,066 – Method And System For Downhole Redirection Of A Borehole
Patent #5,839,514 – Method And Apparatus For Injection Of Tubing Into Wells
Patent #6,758,638 – Method Of Monitoring Operations Of Multiple Service Vehicles At A Well Site
Patent #6,758,095 – Tong Monitoring With Learn Mode
S/N 09/839-444 – Method Of Managing a Well File Record At The Wellsite
21 Patents40+ Patent Applications
-------majority targeted at
optimization of production processes
21 Patents40+ Patent Applications
-------majority targeted at
optimization of production processes
Keyview Logical Architecture
RDC / KeyView
Utility of Rig Data Capture System
For Key Energy Rig Operator:
Provides visibility & feedback for rod & tubing makeup Quantifies implementation of work plan Reduces risk of crown out & floor out & other safety events
Rig Supervisor: Allows for monitoring from any PC Provides tool for in-depth process improvement
For Customer Assurance
Ability to improve wellwork processes company-wide
Improvement Examples
Quality Improvement: Sucker Rod Makeup Problem:
Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string
Solution: Rig with data capture system moved on well to lay down bad rod string Rig make up / breakout monitoring system found every 3rd joint over-
torqued; previous rig over torqued rods
Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rig data capture system utilized
Improvement Examples
Quality Improvement: Sucker Rod Makeup Problem:
Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string
Solution: Rig with makeup control moved on well to lay down bad rod string Rig data capture system found every 3rd joint over-torqued w/ breakout
monitoring; previous rig over torqued rods
Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rod makeup control utilized
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Improvement Examples
Quality Improvement: Sucker Rod Makeup Problem:
Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string
Solution: Rig with makeup control moved on well to lay down bad rod string Rig data capture system found every 3rd joint over-torqued w/ breakout
monitoring; previous rig over torqued rods
Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rod makeup control utilized
Improvement Examples Efficiency Improvement: Non-Productive Time
Problem: 40 rig operation where customer had increasing job times but no accurate data from which to base decisions
Solution: Rig data capture identified wait time problem & cause by rig Operator & service providers analyzed data & implemented corrective
actions Over following 10 months wait time reduced from 12% of rig time to 6%
Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location;
$0.15 million
Improvement Examples Efficiency Improvement: Non-Productive Time
Problem: 40 rig operation for customer had extensive wait time but no accurate data from which to base decisions
Solution: Rig data capture identified reasons for wait time by rig Operator & service providers analyzed data & implemented corrective
actions Over following 10 months wait time reduced from 12% of rig time to 6%
Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location;
$0.15 million
0
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4
6
8
10
12
14%
of
To
tal
Rig
Tim
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Jan Mar May July Sept
Month
Waiting Time
Improvement Examples Efficiency Improvement: Non-Productive Time
Problem: 40 rig operation for customer had extensive wait time but no accurate data from which to base decisions
Solution: Rig data capture identified reasons for wait time by rig Operator & service providers analyzed data & implemented corrective
actions Over following 10 months wait time reduced from 12% of rig time to 6%
Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location;
$0.15 million
Improvement Examples Efficiency Improvement: Process Improvement
Problem: 28 rigs operating in large field had rig move inefficiencies
Solution: Rig data capture defined exact rig move times Operator & service providers analyzed data & establish improved rig move
processes
Savings: $9.60 per rig hour Rig move times reduced by 63% Annual job time expense reduced by $590k
Connection Connection
Circulating Making Hole On Fish, Milling But Not Making Hole
Trip Into Hole
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ffe
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Uniform Makeup
Where does WITSML Fit in? We’re new to the game – but there’s a lot of opportunity for the well
servicing industry
We’ll go beyond just the “drillsite to office” use
Embrace the standard
Work with the SIG to gradually grow the standard to incorporate workover & well servicing needs
Customer Integration
Current prototype project with a large customer to “WITSML-ize” Keyview information in the form of a tour sheet, to the extent possible
Standard format for Archiving & Retrieval
Leverage off of the similarities WellLog/Log Object
OpsReport Object
Well Object
Message Object
None are well-servicing specific, but there is a considerable amount of similarity
Along the path to “WITSML-ization” The current WITSML is drilling-specific – Is this standard an appropriate one to use for intervention work (R&M, workover,
etc)?
“Standard” activities list – the current WITSML catalog supports 20 IADC activities. Are more, with greater detail, needed?
WITSML must be more than just “Transfer” – will it be appropriate to use WITSML as a set of standardized systems interfaces?
The Future System that is:
A source of collaboration & performance measurement for operators, well servicing companies & all third parties (WITSML)
A pipeline for electronic data from any service provider on location to the customer (WITSML)
A source of process data from which to perform continuous process improvement (WITSML?)
Is a foundation for other digital technologies utilized during well work operations (WITSML)
