Cost Reduction, Greater Efficiency Focus of Technology in 2017

Cost Reduction, Greater Efficiency Focus of Technology in 2017
Companies will continue focus on technology to keep costs low while enhancing efficiency and safety, industry observers tell Rigzone.

Intelligent Rigs Could Drive Offshore Rig Uptime

Full autonomy for artificial intelligence and machine learning is still in the future, but analytics is still playing a role in driving offshore rig uptime, and enhancing reservoir recovery in onshore shale wells, will be a focus, Bryant said.  

One example of how technology could transform operations is intelligent rigs. Companies such as BP plc and Exxon Mobil Corp. are exploring intelligent rigs which, if successful, could boost operational rig capacity while reducing the number of rigs needed. Intelligent rigs – which use advanced weather forecasting and cognitive computing tools – generally imply the integration of IT, microelectronics, robotics, software and communications/networks to enable further industrialization of drilling processes, David Haake, IBM cognitive solutions team leader, chemicals and petroleum industries, told Rigzone.

“The combined effects of the intelligent rig concept include higher production through ‘automated’ best practices’ business processes, enabling drilling in harsher and more remote areas, higher precision drilling, early warning of incidents that can result in downtime, lost wells and lost production,” Haake explained.

It also can result in higher reliability, improved safety, and environmental protection. Costs can also be lowered and number of rig workers reduced, meaning fewer environmental, health and safety incidents can occur, Haake said.

“There is a current focus on advances in downhole sensing and control, but ‘intelligent’ approaches to all aspects of drilling, including rig floor robotics, managing rig moves, and asset management are progressing,” Haake stated.

In the case of intelligent drilling, the explicit goal is to reduce offshore staff, Haake said. Rig floor robotics show great promise not only for automating, but optimizing drilling processes.

“Many of the remaining roles in offshore drilling operations might move to onshore support centers and the roles themselves will change from driller to remote drilling subject matter experts,” Haake said. “This is more about productivity and safety, and the jobs that remain will be higher paid, as they will require higher skills.”

Monitoring Software for Maintenance, Cybersecurity Remain Focus

The oil and gas industry will continue to see the adoption of monitoring and maintenance software in 2017, Tony Gioffredi, CEO of Zahroof Valves Inc., told Rigzone. One important trend will be the update of physical equipment components using advanced technology to improve overall performance. Compressor valves for reciprocating compressors is one example. For years, technology on valves has been stagnant, but new advancements allow end-users of reciprocating compressors to create more value through extended run times, increased operating efficiency, lower repair and maintenance costs and lower inventory.

“Innovation in this and other components will also help the oil and gas industry adhere to tightening environmental and emission control laws, as these new components are engineered to operate with energy efficiency in mind. While Big Data and smart monitoring software can streamline operations in the oil and gas industry, it's the advancements in equipment and component technology that operators will look to enhance shareholder value through increased safety, improved performance and reduced operating costs,” Gioffredi said.

Reliance on emerging technologies such as the Industrial IoT does increase the cybersecurity risk that oil and gas companies face. With the increased presence of cyber threats on network communications throughout 2016, it’s likely oil and gas operators will shift their focus to more secure and reliable data communications solutions in 2017 for both onshore and offshore operations, Stewart Kantor, CEO of Full Spectrum Inc., told Rigzone.

How will technology impact the daily life of oil and gas workers, and change the types of skill sets needed by oil and gas workers? Field workers will still have physical work to do, but will need to learn to use wearable devices. The oil and gas industry still faces a shortage of people who can combine oil and gas industry expertise with new technology, Niven said.


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WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Mike Hall-Gardiner  |  January 26, 2017
It will be interesting to see if any of the “new builds” currently languishing in shipyards will be developed into the “intelligent” rigs of the future that Karen mentions. Automation of the drilling process continues to evolve but in my experience previous systems have all had limitations, requiring a skilled operator to ensure operations are carried out efficiently and safely. As the article states “data is a powerful tool” but only if it is relevant, accurate and correctly analysed. I would envisage that a true “intelligent” rig of the future will require a shore based 24/7 support centre, similar to the “maintenance centre of excellence” (MCOE) that BHP has setup to monitor mining activities within Australia. In the future low profit margin drilling environment asset performance management will certainly be the crucial to ensure that a rig remains both operational and profitable. A complete analysis and rethink of all maintenance tasks is required and where possible a move towards condition based monitoring of major equipment implemented. Resources also needs to be directed to the correct identification of critical spares, which in turn leads onto the benefits of equipment standardisation to allow the pooling of high cost critical spares within a fleet. The big unknown for drilling contractors is when will the price of oil rise to justify the investment in an “intelligent” rig? I believe that we may see more sharing of the financial risk of building and operating a new rig between contractor, oil company, shipyard and equipment OEM. We have already seen partnerships between Transocean and Shell, plus the recent announcement that GE Oil & Gas are to provide condition based monitoring of BOP equipment on 7 of Transocean’s rigs. Maybe the next step is Operator – Transocean, Builder – Samsung, Drilling Package – NOV, with GE O&G supplying the BOP and providing the asset performance management.


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