Functioning as CIO
of E&P Company holding extensive experience in Subsurface GeoScience and
Upstream Life-Cycle is a distinct advantage.
Computer Science is unique in its approach. Computer Scientists have developed a novel approach using 3 tenets: 1) Abstraction; 2) Generalization and 3) Scalability. Using these principles all the products are developed in the categories of Computers, Communication Systems, Databases, Application Systems and Automation. These are the transformational technologies in every facet of the 21st century.
RESERVES are the PURPOSE
and GOAL of E&P business.
Computer Science is unique in its approach. Computer Scientists have developed a novel approach using 3 tenets: 1) Abstraction; 2) Generalization and 3) Scalability. Using these principles all the products are developed in the categories of Computers, Communication Systems, Databases, Application Systems and Automation. These are the transformational technologies in every facet of the 21st century.
E&P
(Upstream Petroleum Industry) is conventionally explained
as in Figure-1.
The process hierarchy for this complex and important industry is widely defined
(Ref. APQC).
A preliminary
information centric description of the E&P business makes the complex and
highly iterative business into a generalization model as in Figure-2. In this
approach, the core stages of Explore --> Appraise --> Develop are
conveyed as “information creation functions” about the subsurface resource
and reserve
potential. E&P business monetizes the RESERVES in its progressive maturity.
E&P business is
made of more than 60 different branches (specializations) of sciences and
engineering along-with intense financial, legal, human-resource and environmental
aspects. Typically, with >> $1Billion as annual expense, the E&P
companies create great value proposition. These intense specialized activities
of E&P are its “TECHNOLOGIES”.
Technologies in
E&P are theme of many successful companies supporting this industry.
Examples are: 1. Seismic Acquisition
& Processing; 2) Special
Seismic Processing (inversion etc); 3)
Drilling; 4) Well-Logging
services; 5) Completions;
6) Reservoir
Simulation 7) Prospect Assessment
& Evaluation;
8) Field
Development Planning; 9) FEED
and 10) Production
Optimization. {Hyperlinks are ONLY indicative}.
Technology landscape
is described in Figure-3.
E&P companies (and the service companies) obtain
and capitalize one or more of the technology aspects in the diverse science and
engineering areas. The development of Sequence Stratigraphy technique
originated as “Core Science” from ExxonMobil. International Oil Companies, Research
Universities, and R&D with Service companies – work on more than one facet
of the technology landscape. Successful E&P companies can achieve value
from “Best Use” of accessible technology to create “RELIABLE INFORMATION” about
their “RESERVES”
E&P company
needs reliable and actionable
information about RESERVES (its complete maturity cycle from Prognosticated
resources to developed-producing reserves).
The different and
diverse “Technologies” produce a spectrum of “Information” with different
perspectives of analysis, scale-of-support, and varying levels of certainty
about the objective == “Reserves”.
It is quite common to see conflicting, contradicting and confusing information
from the technology.
INFORMATION is a widely understood term. In the context of the CIO, it encompasses are number of strategic, tactical, operational and delivery initiatives. Functions of standard IT department is not information. Though often addressed trivially as adding storage, it is one of the most difficult maturity process in E&P.
Two other terms are associated. 1) Innovation and 2) Knowledge. The "innovative" development of any technology element, information assimilation or reserves assessment is intrinsic property of all the 3. Knowledge is a maturity stage about information towards wisdom (Figure-3)
INFORMATION is a widely understood term. In the context of the CIO, it encompasses are number of strategic, tactical, operational and delivery initiatives. Functions of standard IT department is not information. Though often addressed trivially as adding storage, it is one of the most difficult maturity process in E&P.
Two other terms are associated. 1) Innovation and 2) Knowledge. The "innovative" development of any technology element, information assimilation or reserves assessment is intrinsic property of all the 3. Knowledge is a maturity stage about information towards wisdom (Figure-3)
- E&P is just one of the many areas of human enterprise that faces such information deluge and uncertainty from rapidly changing technology canvas.
- INFORMATION from the disparate technologies with its complexity needs to be correctly, completely and competently managed to arrive at “Specific, Measurable, Actionable and Confirming” assessment of RESERVES.
- Once Reserves are achieved – they can be directly monetized or converted into hydrocarbon produce and sold for revenue.
We may choose not to measure and depend on our assessments,
We may choose to measure only favorable metrics to our desired stand
We may choose to be objective and critical about the reality.
CIO needs to guide E&P to realistic and implementable choices on Technology - Information -&- Reserves.
