Latest Oil and Gas News Russia

By V.Yu. Andrianov, DATA+ LTD

Any competitive business today just cannot do without computerized systems that have learnt to store and process information on business targets and procedures much better than humans. If accurately configured, an information system may be none the less valuable for a company than its basic production infrastructure assets.

Geoinformational systems (GIS) are one of information technology domains intended to handle spatially referenced information. Even though the technology is more than a dozen years old, it is in the most recent years that a burst-like integration of GIS into a range of industries has occurred. Contributing to the phenomenon are qualitative growth of computer processing power and progressively lower data storage cost, which is critical for handling spatial information, along with emergence of popular mapping internet services, such as Google Maps, personal navigational systems, let alone the simplicity of taking coordinates by means of global satellite systems of GPS type.

Oil and gas industry has long started using GIS as a primary instrument essential for geologists and ecologists. Thus, USGS has nowadays developed into a major consumer of commercial GIS software. A kind of stereotype has even formed with regard to geoinformational systems as of "something to deal with geology".

Yet, spatial information is not entirely confined to mineral resource deposits and geographic maps. In fact, a substantial portion (if not all) information describing oil and gas companies' assets and business prospects is spatially referenced, from core-taking in a specific well to filling stations, from license areas to marketing strategy differentiation. Today, the leading developers of database management systems (DBMS), such as Oracle, IBM, Informix and others realize that spatial data is an important information type that needs to be supported by corporate level systems, which is exactly what their latest products can do.

One should not confuse geoinformational systems with computer-aided mapping systems. GIS is not just a map on a PC display, but a means of cartographic imaging a variety of data, as well as a method to analyze data using spatial distribution of objects and processes. Invention of centralized facilities to store spatial data and multi-user access enabled the leading GIS software developers to bring the technology to corporate level offering the opportunity of integrating, based on spatial location of objects accounted and controlled, practically any data and business processes handled by services and subdivisions of major vertically integrated companies.

GIS has a wide spectrum of applications in oil and gas industry. Here are several of its major segments:
- geology, prospecting and management of fields' life cycle
- cadastre, evaluation and management of licenses, land allocations, environmental payments
- monitoring and spatial analysis of production profile to maximize oil recovery
- logistics, freight scheduling and vehicle fleet operations management
- marketing, sales area competitive analysis and distribution system optimization
- evaluation of holding company internal competition, development planning
- integration of aerospace surveys GPS-measurements into corporate business processes
- emergencies: on-line response and environmental damage assessment

One cannot help wondering as to "how in the world can this versatile technology work so well in those multiple applications?". The answer is: just as easily as standard database management systems do. The "geo-" prefix simply indicates that from now on these DBMS will store spatial component of the data, granting to users new opportunities previously out of reach. It should be noted at once that it is more than plain quantitative capacity growth, but a qualitative leap, almost comparable to recovery of eyesight (the dramatic effect is normally dampened as changes are introduced gradually, in a step-by-step manner, and yet exclamations like "Wow! We never imagined such things were possible!" - are not uncommon).

Now let us take a quick look at how geoinformational systems are typically applied in oil and gas industry. Geologists and surveyors have used GIS since long ago, because they have to deal with maps anyway. However, in contrast to conventional maps that may take many days to plot and print out, GIS can instantly produce maps of any kind and nature. More importantly, the maps thus produced can contain not only static topographical data, but also the results of spatial analysis just carried out in the same media where the maps are being created. Armed with digital maps carrying topographical and geological information, aerial shots, geographically reference, seismic profiles etc., and a full-featured GIS, a specialist can make a full-scale analysis of a vast acreage to spot oil and gas occurrence, estimate the reserves and prepare a report constituting a basis for decision-taking. It means that GIS is a facility to generate new information out of the existing database capable of presenting the output data in the form of maps so that it takes several times quicker to search for and evaluate prospects.

Developing a field is not a cheap undertaking, so the operator may substantially profit optimizing the whole business. Geoinformational systems can find the best well locations and compose access road network, calculate the construction cost of such roads and damage compensations payable to the government for land use and landscape development. Noteworthy, GIS can help you not just calculate those variables, but also minimize them taking into account plenty of factors: forested area locations, specially protected preserves, other valuable vegetation, soil types and wetlands, potential vicinity to inhabited areas and the existing service lines, etc. This is the way geoinformational systems help find the best planning solutions for field development and, owing to quick assessment of multiple factors, to promptly update plans if any changes are required.

Practically all commercially available GIS packages today include 3D facilities. The most advanced ones are capable of not just seeing a perspective view of the surface, but can also create a 3D image featuring both surface and subsurface objects. Coupled with wellhead GPS coordinates, deviation survey data can be processed to make a spatial well path image in an ensemble with a map, photo shots and other objects. One can actually see boreholes of many wells running deep underground, crossing specific formations, tapping on oil-bearing horizons etc. Logging data can be used to present a 3D picture of deposits, thus enormously facilitating field development planning and monitoring. When used in combination with geological and other special applications, multipurpose GIS packages can "work wonders" on usual PC's, which is far less expensive than VR-rooms that up till recently used to be the only method of "diving" into the subsoil.

In addition to pure visualization, geoinformational systems include measurement-based analysis facilities capable of designing spatial images though inversion, while the newly invented animation techniques can show a phenomenon as a moving picture. Such techniques are effectively applied to monitor spatially distributed dynamic processes. A good example is water injection typically practiced in oilfields to maintain formation pressure.

To keep producing wells from premature production of pure water, water flooding front movement must be continuously monitored so that timely steps can be taken to adjust water injection points and rates. It is critical that the on-going process is tracked down, which can be best achieved through animation. A spatial image of water flooding is obtained based on well test data and mixed production content readings constantly monitored through interpolation is made in GIS, while animation shows the modifications occurring to that image with time. This is how specialists can have a visual perception of the flooding in progress meaning they can act with utmost accuracy and efficiency. This results in the highest ORF's with minimum oil recovery enhancement costs.

Industrial infrastructure and facilities are generally operated using special information systems (EAM, ERP). As major companies often operate sites scattered around vast areas (including those located abroad), the accounting functions of the above systems in combination with GIS geographic location data give the managers a chance to have a better grasp of both the entire stock of production resources, and its separate pieces. The leading world's software suppliers support their systems' communication modules with the most advanced assents and production management systems (for instance, SAP R/3 and ArcView GIS). Russia's home IT products developed by oil companies are fairly common, too. They integrate access to such systems in client user applications. Access from GIS environment to accounting data makes it possible for specialists to see and assess interrelated effects of industrial (internal) and natural (external) factors. Thus, operations in the North of Russia must monitor permafrost melting caused by industrial activities. Inland plains run a risk of pipelines being flooded because of construction disrupted land runoff. Geoinformational systems can detect problem areas and identify risk-prone objects through use of aerospace shots and information contributed by accounting systems. Known as very productive is a combination with field survey data referenced to the main database by means of coordinates provided by GPS receivers. Thanks to the above opportunities contributed by site GIS site management solutions of better timing and quality become available, with reduced risks of emergencies or accidents.

Sales planning is the activity type for GIS to clearly demonstrate high investment efficiency. Retail sale locations and distribution oil tank farms layout must be based on spatial distribution analysis with regard to current and potential consumers account taken of competitor sale terminals. It is only at random that "Manual" methods can produce the best solution here, for there is a need to analyze several irregularly located factors in parallel. For example, in order to correctly deploy a filling station, one should mind population density, traffic level, taxation regime, land price, remoteness from supplier tank farms and other variables. Each variable will form an individual cost surface, while a weighted combination thereof will constitute a common priority surface, with "hill" peaks indicating locations most suited for new sales points, i.e. locations combining high demand level and low construction and/or operation costs.

Another illustrative example is optimizing tank farm supply zones and petroleum product delivery routes. For example, our company's experience has shown that demand fluctuations are typical of the way many oil tank farms have to operate often leaving them "underloaded". Redistribution of consumers serviced is a method to smooth out the load and reduce the number of oil tank farms required. If combined with optimized delivery routes, it can bring 20-30% savings with the same or even shorter average hauling time. As consumer environment tends to change (new consumers and competitors emerge, road network is upgraded etc.), periodic GIS-aided sales network optimization analysis allows to make timely adjustments to maintain the highest profitability possible.

There is one more interesting challenge resolvable through combined use of GIS and GSP technologies: tracking cargoes and traffic on-line with the purpose of dispatching them. It has been actively used in sea and railroad transportation, by forwarding agencies, in carrying hazardous and valuable loads. In addition to meeting the natural requirement of locating all freights, tracking is typically accompanied with a noticeable economic effect owing to psychological aspect as the drivers prefer to stick to their preset routes and become generally more disciplined. Recording motion paths allows for simulating actual situations in the future, which may be of use for traffic accident or emergency investigations, as well as to analyze and optimize traffic routes and schedules. To implement dispatcher center tracking function, a company has to install on-board computers on their fleet, to include a GPS receiver and coordinate transmitter, plus other optional navigational parameters. Messages can be relayed via cellular, satellite, transponder or other radio communication links to be finally received at the dispatcher center message server. This server receives messages from all carriers, processes them, sorts out and presents them in the form of trajectory and traffic schedule files. By interfacing the message server, GIS application can show transport vehicle movement either on-line or as a record, the image (if necessary) being superimposed onto any map in combination with any other user applied information. Trajectories and traffic parameters themselves may be used analogously with any other data: for spatial analysis, reporting documentation etc.

GIS multi-factor analysis facilities are not limited with search of optimum locations for prospective sites - they can also identify optimum trajectories connecting any two spots. This function is widely applied in road and pipeline design. It can account for any spatial distribution factors, such as ground profile, vegetation, soil types, water entities, inhabited areas, roads etc. The system is able to automatically find the best path to bypass restricted areas and/or bring the route through mandatory specified points. Having analyzed all factors, the system will propose one or more options of the best routes plus the corridor where cost fluctuations should remain within acceptable limits.

To conclude this introductory overview of GIS and GPS applied in oil and gas industry, it would be proper to make a mention of Internet and intranet map publication facilities, along with the novel server architecture of geoinformational systems. This technology accommodates GIS applications on the server so that users can interface them with a standard web browser. The advantage of this approach is that no GIS software has to be installed on user PC's (an operating system and a browser are sufficient), while the access is possible from the Internet (intranet) workstation. Information security of such distributed system is achieved through standard access limitation and data coding utilities. As means to configure such systems became available from the leading GIS providers, many oil companies (and not only Russian ones, for that matter) proceeded to actively introduce the technology for their in-house needs. The benefits it offers are evident: system administration as such is considerably simplified (all updates are effected on the server saving the administrators the trouble of visiting departments, branches etc.), a range of users widens up (mainly on account of managers and other employees who are not professional GIS users), a company's management is granted a handy visual cartographic aid to check current work status and the company's business results right on their PC's.

In summary, it should be noted that due to the capacity to integrate a variety of data and specialist systems enhanced by advanced analysis and imaging geoinformational technology carries a good promise to increase the efficiency of business run by oil and gas companies. The reduced time required to prepare informed decisions optimized through multi-factor analysis shortens payback period and, on many occasions, cuts total business owing costs. Similar to any other information technology, GIS is not a panacea: it can be productive enough only in the hands of qualified specialists subject to a comprehensive approach.

Labels: Data+, GIS, GPS, Oil and Gas, Russia, spatial informtion

posted by The Rogtec Team @ 17:54 

0 Comments:

Post a Comment

<< Home