Leveraging Information Technology – Petrotech 2014

Petrotech is India’s premier oil & gas convention. This note is built around the deliberations at the event on 10^th Jan. 

I resist using the word IT, which had become a commodity skill and is often most misused and abused term in science or technology. IT has become such a wide and overarching term that ceases to have any specific meaning or context. 

Information Technology is aptly covered by various speakers narrating in  broad terms how the entire gamut of E&P is affected by and touched by this.  Global E&P enterprise with capital outlay running about $100B/y, is natural to be touched by computer based methods of working. Often seen as a “rich” industry, deploying Petaflops or Petabytes is akin to billionaire buying Ferrari!

IT companies like system manufacturers (IBM), service providers (Wipro), E&P IS players (Schlumberger, Konsberg), E&P companies (Cairn, ONGC, RIL) and Refineries (IOCL, BP) and Consultants (E&Y, PWC etc.) contributed to the events of the day.

1. Clearly every facet of the business has opportunity to be optimized and made efficient using Information. However, with disparate technical systems and heterogeneous data – only incremental islands of improvements are being achieved.
2. The 1960-2010+ growth story of the E&P identifies the expanding size and use of seismic data from early CDP gathers to current 4D/4C surveys. Surely, before 2020 real-time cross-borehole seismic will be deployed in modern fields (nD, 4C – n Dimensional, 4C).
3. Data remains an evasive dimension. E&P holds Petabytes using Petaflops – yet, << 1% of its data volumes are in databases. About 100,000 world-wide workforce of E&P professionals mostly work disconnected and never collated into a single unified “innovation crowd”. Therefore, the available mind-flops (measure of human minds working together) are very small! There is considerable misplacement of the importance when “computer science” and “computing” are treated synonymous. This is already proving costly to innovation in E&P.

It came about – E&P is very Conservative!

      4.  Digital oil field is surmised into integrated operational framework driven by unified information interchange. Having implemented this at my current work place, I felt consoled that this achievement is prevalent and common metric for these i-fields! Questions remain:

1. Has this paved way for new insights in to high-frequency (DCS capture at milli-seconds), high-volume (>100,000 tags) phenomenon that drive the HC fields?

2. Are there new micro-reservoir modeling approaches in place?

3. Are there any measures to say what was possible and what is achieved?

     5.  Computer technology has gone around cycles from consolidation (main-frames) to distribution (cloud). Data-centric computing (driven by Hadoop) is the new development. Comments that “cloud” is not yet suitable to E&P HPC work is interesting considering JPL has used Amazon cloud for nearly same kind of work. The IBM Watson is important – not because it won Jeopardy, but because it used certain computer science methods that extract intelligence from different kinds of data structures (and unstructured data). There is pretty little in E&P space that deploys the core techniques of Watson. Prospector – was in 1980, the most successful rule-based “expert-system”. It never became a tool for E&P. Watson-Jeopardy is similarly a novel break-through – but trying to use it in E&P is amusing.

     Rich people buy new car models – whether they use, disuse or abuse. Rich E&P companies buy new HPC and data-technologies in the same parlance. Thanks to theory of “probability”, whether the god plays dice or not, Geoscientists are adept at doing it. Thanks to HPC, we now create 100s of millions of cells in 3D models of single well fields with 100 realizations – only to drill next appraisal well – DRY! There is little consciousness or measure of the Value of Information.  

I have to quote J.C.Davis (1982 book p10 – Statistics and Data Analysis in Geology, John Wiley). “The presentation of masses of numbers, all expressed to eight decimal places, overwhelms the minds of many people and numbs their natural skepticism. … output usually will bluff all but a few critiques, and those who understand and comment also do so in equally obtuse terms. … The greatest danger, is … led to the most ludicrous conclusions, totally blind to any reality beyond the computer ..”.  I never understood how doing 1000 realizations of a transformation based on a linear-relationship will reduce uncertainty. What was possible from a single carefully created “seismic inversion” study is now made into 100 realizations occupying a terabyte and giving the “same” GCOS (Geological Chance-of-Success) to the new well location!

     6. SMAC work was shown in integrated information system development at 2 of India’s largest refinery companies. The downstream has seen Specific, Measureable, Achieved, Challenging task of information integration with diverse systems and ERP. This is an important pointer to E&P companies. The clarity of top management driver in Downstream is a pointer to “engineering” –versus “geoscience” mindset that differentiates these two industries.

      7. An aspect that all E&P companies love to highlight is the “knowledge worker” and “ageing work-force”. The fact that in 2013, 100:1 ratio of applications were made to E&P professional positions, is a pointer of “plenty”. Quantity is never a substitute to Quality. If the systems that attract the students, the curriculum that moderates them and the evaluations that elevate them are weak – the 100:1 also cannot give you quality man-power. 

The moot question is what caliber can such weak systems produce in the industry?

That is what I dealt with at the workshop. (updated slide pack at http://www.slideshare.net/srikantg/the-reality-of-big-crew-change-in-ep). 

• E&P is progressing far-too-slowly as a Scientific methodology or a Technology practice. 
• There is an urgent need to reassess the approach with other high-performance sciences and industries AND take corrective action towards DISD.

E&P is changing slowly. Demand models of the Hydrocarbons and great prices are ensuring profitability. New fronts are opening in Deep-water and Shale-gas. None of these automatically imply that the data, method, analysis and inference are evolving at transformational rates. I firmly believe that this slow adaptation and change of E&P is moot cause for human resource crunch issue. The methodology developed 20-50 years ago remains "closed" with the "experienced" and remains "relevant"!

One may not agree with uncomfortable things.

• IT is largely doing a service or commodity to E&P – NOT driving innovation
• E&P is comfortable with the current efficiencies due to its special status
• World at large doesn’t know how to question E&P as only 100,000 people know details clearly about it, among the 7.2 billion!

Mflops in smartphones and Gigabytes disk space on Google-Drive are driving for more resources. CIO is concerned that in similarly Petabytes and Petaflops are deployed and expanded in E&P.

It is Win-Win-Win. Computer companies can sell their ware; Service companies can sell proprietary black-boxes; Oil companies can sell oil at their demanded price.

What are we doing with our Time? (on computers and communications)

Time is a unique resource. Just everyone has exactly the same amount of it in a day!

What makes few great achievers attain great results and immortality?

How are we consuming our computer and communication technologies?

All of us are engaged in one or more activities and functions every day. Slowly and steadily, the cycle of time moves us from the dawn to dusk of life. We may look back to the life with great happiness at our achievements, retrospect on missed opportunities, or disdain at ourselves and circumstances.

This is an attempt in observing what consumes the universal equal resource – Time and how they lead to end-state of contemplation.

The 24h/d or the 168h/w are same for all of us. It is just that we spend too much on it upon Type-1 and Type-2 throughout the life. When we can organize to do Type-3 work, we will attain the great happiness of success with life. 

1.       Consumers: 

Simply consume the time and other resources with unspecific goal, objective or result.

These are “Time Burners”, where time is exhumed. 

Often, the considerable amount of time we have after meeting the needs of mandatory functions of life (2) is consumed in random low-effort activities. Surfing TV channels (shifting channels every minute), Chatting, Watsup-ing, SMSing, Face-booking, twittering, randomly surfing on internet, adhoc walking, Going around Shopping–malls (without buying anything) etc. There is nothing much to prepare, nothing to assess as improving skills or effectiveness, or nothing much needed to learn.  These are most popular avocations of modern ‘rich’ society. Many of them have no need to do any mandatory functions to exist. Time Burners are high value business for companies announcing 3G or 4G. Very important aspect of 21^st century lifestyle!

2.       Mandates: 

The life’s mandatory functions and activities that seek and use time and other resources.

There are things we do routinely or on need to do for existence.

E.g. swiping card on time, ensuring 40hr in the weekly time-log, Issuing monthly reports on due dates, attending the meetings and sifting through agenda points, checking bank accounts after salary day, filing IT returns on time, scheduling and obtaining Periodic Medical reviews, Attending functions etc. comprise this type. Large part of life is spent on this. Most of us will look towards these as the description of life.  These are done day after day for many years like dawn and dusk. It is our identity in nearly 50y of life. Occasionally, this pursuit grows into a status that we show as THE CEO, CFO, COO, CIO, CXO etc. At the dusk of life, most people will recapitulate these efforts of 50-60yrs and may – ‘be more disappointed by what they had not done than by what they had’.

Almost everyone has a life entangled in this pursuit.

3.       Accretionary Pursuits: 

Time and resources assigned to activities whose results accrete and develop into larger expressions.

Often driven by force or passion, it manifests into grand edifices of achievements in a life-time.

Driven by circumstance, force, motivation, environment, passion, and desire, we engage resources for a creative kind of work. Education phase of life – even if it is forced upon, become accretionary when we stand in Graduation queue to take the award.

Every famous person you can recount in any field developed from this pursuit.

All of us glimpse at these pursuits and its charm, knowingly or unknowingly many times in life.This is what makes human life so unique and expressive. Animals are not known to have any framework to try the Type-3.

While going to work under (2) is like a worker or robot, doing the same effort and task under (3) is qualitatively a different game. Essentially, the “Accretionary pursuits’ require - Ambition, Determination, Perseverance, Learning, Discipline, Teacher-student relations, group dynamics etc. It is normally set to higher levels of Maslow’s hierarchy of needs. Arts, Science, Social-Work, Education etc. more easily come within this category (even when it is perceived and pursued as Mandatory function).

• Significant break-through, human growth and development are built upon the foundation of achievements of people who pursued ‘Accretionary targets’.
• Their insights were converted into edifies of growth we see all around by diligent worker-bees following ‘Mandatory functions’ righteously.
• The fruits of such efforts are enjoyed when we ‘Consume’ time with our fancy avocations available as ‘Time burners’  

Everyone can observe these 3 levels of activities in their lives. How one is tuned to (3) determines self-esteem, happiness and contention. Balance between 1, 2, and 3 makes contents of the life worthy. 

CIO is worried. What are our computers and communication technologies are being used for?

RoboBusiness conference – showcasing the future - Beaming-in

Don’t just fly, don’t just drive, don’t just walk, and don’t park yourself in a closed Video Conference

Beam is here to place you at site of action! Beam-in and be part of the fun at the site.

Those of you who think, being there is important, but difficult and expensive – Beam-in is a real option!

I went to Santa Clara Convention Center, CA to attend the opening session of the RoboBusiness conference. I woke-up an hour before the event in Mumbai, India and took my “Beam-walk” at 6.40AM Indian time. Six hours before, I took a very useful driving training from Suitable Technologies, the company supporting the conference with “Beam” attendance.

Walking through the exhibition, I visited 5 stalls showcasing the state-of-art innovative products in robotics. Examined the product demonstration and discussed one-on-one with the innovators! I exchanged pleasantries with quite a few participants and watched some of the working robots in action. You can link to my G+ post for some of the interesting products.

This is a very invigorating experience. Something, I will remember and use for rest of my life!

1.          The world is open to walk-around. It is not just another Video-Conference from a fixed set of locales
2.        It allows the stake-holders to meet at regular work-place, rather than at a “staged” room
3.       Virtual teams are now not so impersonal. Team members can meet at different venues and deliberate
4.      People-to-People contact is now without all the complexities of inter-continental travel.

The “Beam’s” pictures and features are on the web site of the company. It is very easy to learn and navigate. The computer needs are very standard; the communication should strong and reliable.

My experience is worthwhile to open the avenue of opportunity. The personnel manning the booths, participants and other “Beam” walkers, all recognized the novelty. They all acknowledged the value of a “Beamer” from India joining the conference and deliberating with them. It was possible to zoom-in to their products and demonstrations, while meeting the presenter personally! I am planning to join all the keynote presentations in next 2 days and perceive the power of being there!

• Managers now have a tool to walk into their work-centers and offices
• Lead Scientists can go into their world-wide labs to examine prototypes and results
• Social Leaders can do public meetings and interactions on “Beam”
• Big-Fat weddings can have world-wide well-wishers join through "Beam"!

The possibilities are large and with 4G coming into India (and many other parts of world), this could be one of the directions the next decade will take.

Computer Science -vs- Computerization

Computer Science (CS) is a flag-bearer of 21^st century human enterprise. It is all pervasive and is radically transforming everything from an Abacus to Z-transform (A to Z). For most of us and especially in the typical company’s IT department, the computer science is – i) Modern hardware (Smart phones, tablets, laptops, desktops, and printers); ii) Infrastructure (Storage, network, IDC etc) and iii) Applications (MS-Office, Emails, ERP (SAP or equivalent). Two additional aspects – iv) Access Control and v) Security complete the typical staffing and emphasis of most IT departments in any company. In this post, understanding of what Computer Science offers and what Computerization defers (takes away) will be examined. There is urgent need to rethink how Computerization is thought about and implemented in companies to utilize the power of Computer Science.

Petroleum E&P needs Computerization that fosters Computer Science to achieve the performance beyond the marginal

A.                 Computer Science (CS)

Computer Science (CS) is among the world’s most “Open” and “Equal-Opportunity” branch of “Knowledge”. I am learning Python and wish to do Python+R coding to address some innovations I have conceived. Just every one reading this post has same opportunity to learn and be “Creative” in (or with) CS – with or without any formal degrees, recognitions or affiliations. Any number of examples can be cited to show how individual private efforts created new innovation in Computer Science.

Due to its (CS) promiscuity with almost every branch of human intellect and conduct, there is often an overlook to the core tenets of this subject matter. It covers many specialized areas of electronics, logic, mathematics, classification and organization methods. The unique approaches developed in CS created a revolution in human thought and contribution. Computer Science is best characterized by the way computer scientists approach the problem solution. Through their novel approach, the CS developed and delivered results with certain fundamental principles and practices. These are:

1. Abstraction                    : Right from the principle of semi-conductors through the binary arithmetic to the progressive building of complex standards and services like ASCII coding, TCP/IP, Logic Programming, Encapsulation, Objects, Knowledge Representation and Ontologies – are built logically and reversibly on robust abstraction.

2. Generalization             : Principles of data structures, database definitions, Codd’s relational model, Java architecture or Organization of WWW, are powerful examples of multitude generalizations, which do not limit to any single subject or aspect of human endeavor. CS brought forward the possibility that strong principles and inventions are defined by their ability to go across human boundaries. Universal appeal of the products and derivatives of computer (and communication) sciences arrive from the power of generalization

3. Scalability                      : The ability to seamlessly scale from supporting a smartphone with processing capability to form a network of a million computers to address complex problems is easily grasped by most of us. There is another unique aspect of CS scaling. It is about integrating the different foundation principles and building blocks to create a vastly complex new technology – aggregating and enhancing. 

This is more akin to life that uses “simple & robust” building blocks and creates everything from a bacterium to man – billions of them.  

CS is a bit like “God”, one perceives it in proportion to one’s grasp, capability and outlook!

B.                 Computerization

Computerization is the term used in formal organizations to describe the role of the “IT” department. Since the early days in 1970s when more and more companies started using computers for business and work, the IT department came into existence and sustenance. In Wikipedia, Computerize refers to:

è Equipping with a general purpose computer, or computer system

• Inputting data (computing) into computers
• Digitizing information for computers
• Creating computer-generated content

Because the remaining 3 aspects “inputting, digitizing and creating” is done by users from business, the role is dominantly towards “Equipping”. That is exactly typical IT department delivers! Check your IT department home-page for its services to confirm this approach!

Throughout 20^th century, the IT department and its work is typically “Cost”. Very few measures exist in most businesses to measure and quantify the value of IT.  

Collins English dictionary states “Computerization” as – ” the conversion of work or processes to control by computer” – a very important distinction from earlier definition in Wikipedia. Sadly, many IT departments align with this simple tenet ONLY for the ERP based processes. Long-live SAP!

Equipment + Processes (ERP) + Access Control + Security + Cost are the universe of Computerization as practiced. 

The consequences are:

1. Computers have been made a “Commodity” NOT a technology for “Innovation or Growth”
2. Users are required to follow the “Rules” and “conduct” as defined by ERP or the IT policy – no other expectations. This “de-empowers” the users – a big loss of intelligence in most organizations!
3. Competencies of IT department and the wider business users are never guided towards the core strengths and features of Computer Science. Therefore, they remain in the periphery of man-kind’s most impressive technological leap. This “denies” organizations the advantages of CS.

21^st Century needs in Alignment of Computerization principles with Computer Science.

The first step to supporting strong Computer Science use in organizations is to recognize that "we're doing it wrong for the present century’s capability". The first mistake we made was in the organizational model. Centralized, IT-dominated computerization models are not conducive to empowering end users. Technology leaders should replace the existing Service-Customer or Control-Controlled relationship that persists between IT and the business with a cross-functional team that blends CS and business skills."

C.                 Transforming Computerization Fundamentals

Being at the cross-roads of a transforming world, stuck in the past and unclear about the future the approaches available need to allow continuity of present and favorably receive the future. 

1. Create a separate IT department or controlled outsourcing of the “classical IT” elements.
2. Pursue consistent and wide-spread “CS trainings” – supported by HR, compensation and performance metrics.
3. Develop a comprehensive “data management” framework to capture all digital data into formal structured databases. 
4. Nurture an "Ecosystem of Creativity" using CS. Empower all users with tools and techniques to facilitate solution creation.
5. Capture and convert individual innovations into proper engineered solutions and deliver for wider use.

Companies which can “Crowd Source” and “Capture” intelligence and innovation embedded in their workforce will have distinctive advantage when the business models change from “quantity” to “quality” of knowledge.

It is not an issue of cost or funds. It is a matter of conception and perception.

SWN case history of success with data and analytics

Southwestern Energy (SWN) is an independent E&P company with ~$14Billion market cap and ~4TCF reserves is bringing quantum growth in performance over the past decade, producing ~3% of USA gas supply with over 3000 wells.

E&P Magazine has showcased webcasts from (on) SWN highlighting their approach as an example of systematically adopting information technology, data management and big-data analytics. 

1.  Oil & Gas: Big Data Management:

Most people think the business as molecule of Hydrocarbon; SWN CEO articulates the business as – information processing (never touching the molecule). Exploration, Development and Production as information maturity gates emulating old-time EDP (Electronic Data Processing).

Creating a complete, competent and correct data management system, and arriving at a single-source of truth is shown in their case history.

Everything one can imagine is on the E&P data complexity. Key to success is within the data. It is not just to standardize, but to work for detecting and value creating from the anomalies. 

2. Leveraging Business Intelligence to get the 360 Degree View: 

The SWN CEO expands on their drilling information system and its optimization for managing the large number of wells. Integration of Technical, Operational, and Business systems provides a complete unified information view of the business. Their investment into information maturity is highlighted by the SWN Management view of the E&P business as the information management.  

3. The Game Has Changed: 

The SWN CEO brings forth how ‘right people working for the right things’ is achieved by – i) “can-do” workers who are loyal to the company; ii) Seamless information through overhaul of their infrastructure (IT); and iii) Process transformation with 360^◦ view {PastàPresentàFuture} and data driven KPI.  SWN identifies it as their business transformation, showing in performance and value. 

The path to successful value creation in E&P is clearly through information maturity and integrated processes driven by ‘right people doing right job’. Considerable drive, investment and knowledge are needed to follow the path to value creation. Value of Information (VoI) is the power of 21^st century.

“Growth is Living with the Information”.