David Archer

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Practicalities of Knowledge Sharing in EP

• David Archer Michael Ring

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The E P Business Context -Challenges
Solutions

• Competition
• Margin
• Energy Price
• Survival
• Environmental
• Long Term Liability
• Access to Resources
• Growth

• New Technologies
• Reduced Cycle Time and Costs
• Increased Productivity
• Learning Faster than Competitors
• Innovation
• People, People, People

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Knowledge hard to define Information data
in context Data objective facts about
events Value of knowledge is related to ACTION
or DECISONS it leads to
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Greater minds ...

• Knowledge is of two kinds. We know a subject
  ourselves, or we know where we can find
  information upon it.
• Samuel Johnson

• I never waste memory on things that can easily be
  stored and retrieved from elsewhere.
• A. Einstein

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• Data Information gathering
• Human role is essentially mechanistic
• Knowledge Wisdom gathering
• Human role is analytic1
• But
• in new learning cycles, knowledge from previous
  cycles will be data

1K.Chew, EP Data Management Conference, June
1997
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Knowledge Management / Ecology -Knowledge Exists
Between the Ears

• Knowledge is people!
• Knowing what you know
• access to reliable data
• improved information about what is known across
  the organization
• access to previous experience within firm or its
  partners - best expertise
• Knowing what you need to know
• ability to understand organizations values,
  procedures, objectives and strategies
• ability to access and capture new experiences
  repeat past successes and avoid past failures
• Knowing where to find what you need to know
• Extension of data managementis it really?
• articulation, sharing, learning and remembering
  of data, information, and knowledge across the
  organization
• expert systems artificial intelligence - where
  are they today?

Forum for IT Strategy, CERA, Nov 97
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The Knowledge Ecology - People, Process and
Technology
PEOPLE multidisciplinary teams working together
to solve common business problems
ORGANIZATION dynamic relationship of emergent
properties associated with collective activities

PROCESSES business processes focused on EP
asset lifecycle
TECHNOLOGIES tools for generating, codifying,
analysing sharing
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You have to have all three!People, Process
Technology

• technology process without people create
  automated frustration
• technology and people without process increase
  speed but result in chaos
• people and process without technology are a great
  idea, but it cant be done
• - CERA FITS (Autumn 1997)

You also need a supportive organization (or
environment)
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Technology Business Life Cycles
Applications IT infra- structure / EP Software
6 - 24 months Web/Internet 3 months
Number of Years
We need to treat technology applications and IT
like drilling mudan expendable. Dan Yergin,
CERA Quiet Revolution, 1996
Calendar Year
Number of years from innovation to common usage
R. Peebler, May 1996
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Technology in the EP Industry

• Competitive edge from
• ability to combine and apply technologies not
  the technology itself
• first ones to master a new technology knowing
  that dominance will not last long
• best at using existing technology
• change the rules of the game
• Reasons for technical co-operation
• access to outside expertise
• leverage technology budget
• reduce risk of technical blunder
• better industry standards
• faster, better cheaper realizations of RD
  results
• win-win collaboration versus win-loose competition

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Years for New Product to Reach 10 Million
Customers - Pace of Change
Years
ATT, Vanguard - EDS Tech. Forum June 1997
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People -Stuck in Viscosity of Change
People FEAR change they need a THREAT to
change. Issue is how to manage change in people!
Technology
Pace of Change
Processes
People
Data, Terminology, Data Structure
TIME
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1998 Predictions -
Wall Street Journal, 9 January 1998,
The Front Lines, Thomas Petzinger Jr., p B1

Resurgence of the Small - redundant workers
thrive in
small niches

Year 2000 Panic Hits - by end of year, every
programmer
will be working

Virtues of Complexity - big breakout

End of Knowledge Management

An oxymoronfaddish phrase used by vendors to
jazz up
computing and consulting products.you can manage
information
but not knowledgeinstead of trying to categorise
knowledge,
smart companies will inspire sharing.
KM Tools are pointers, directories, yellow pages
knowledge can only reside between the ears and it
cant be managed.
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Knowledge/Information Sharing What are we
measuring?

• What Information is needed?
• What needs to be stored?
• Where to store what format?
• Who can access?
• How much automation?
• What integration tool(s)?
• How to get commitment?

... 15-20 of managerial time spent specifically
in knowledge search or responding to requests for
knowledge. - Arian Ward (Hughes Aerospace)
2/3 of managerial knowledge is due to
face-to-face interaction 1/3 from documents -
Davenport Prusak (WK)
Source Rockall/Shell November 1997, Kuala
Lumpur, Malaysia
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Collaborative Knowledge Sharing

• MoBPTeCh
• The Urgent Project
• CMPT
• POSC/Caesar
• The knowledge management collaboration
• POSC

• Work together for mutual advantage
• Leverage resources, share risks accelerate
  innovation
• TRUST common goals are essential
• Continual reference to why formed
• Requires support and trust at all levels
• Address breakup
• Establish social relationships
• Must be WIN-WIN
• WIN-WIN makes the pie bigger!
• D. Jenkins (BP, AAPG98)

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MoBPTeCh EP Technology Co-Operative Program- A
Shared Vision for the Future

• Technology - the single most powerful opportunity
  to improve performance
• Cooperate to Compete -
• advance the availability of broadly applicable
  technology and services
• compete vigorously in the application of
  technology to separate businesses

The Prize - radical new technologies that
materially impact business performance at lower
cost and with shorter lead time. By accelerating
the pace of change we will permanently shift the
industry to a more entrepreneurial approach and
attract the best talent to solve the challenges
of the future.
Leadership Cooperation Open Process
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User Reference Group for the Exploitation of New
Technologies

• Agip
• Information Store
• Norsk Hydro
• Paras
• Petrotechnical Data Systems

• Statoil
• TNO
• Well Services Technology
• The EC/Esprit Programme
• POSC

GOAL - to bridge between EP industry Strategic
IT Development Improve the Work Processes of the
EP industry and to help the IT industry produce
better software for EP professionals
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The Urgent Vision
Prospects will be fully explored with a single
well, and exploration and production will be a
single integrated process
Understand Examine Recognize
Describe Specify Disseminate
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• AS-IS Cases
• Poor support for Technical Activities and
  Decision Making
• Mismatch between Needs and Skills
• Information lost in hand-over between activities
• Lack of
• data application integration
• communications infrastructure
• proper focus on quality
• Long cycle times
• Functional silos

• TO-BE Cases
• Process requirements
• Knowledge management
• Multidisciplinary teams
• Decision management
• Integrated IT support
• Framework for Integration Change
• Organizational requirements
• Asset lifecycle teams
• Specialist skills support
• Knowledge generation transfer
• New products services
• Parallelism of activity
• Quality management
• Increased flow of data, info., kn.
• Ability to adapt to change

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To act as facilitator and broker, creating new
opportunities for Members to enhance their
competitiveness and profitability by enabling the
development of innovative technology and its
commercial application.
What the public sector can do to assist!
What the industry wants!
CPMT connects
Upstream oil gas virtual research innovation
trading floor
What researchers technical community can
provide!
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• Themes for 1998-1999
• Environmental impact reduction
• Deep water drilling cost reduction
• Elimination of surface facilities
  (ZeroSurfaceFacilities)
• Puddle production
• Deeper/higher resolution imaging of subsurface
  rocks fluids
• Super smart production systems
• Pathfinder programme

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A standardization initiative to reduce life cycle
costs and development time of oil and gas
facilities
... non-profit, membership organization to
benefit the world-wide oil and gas industry. The
Association will develop, maintain, enhance and
make openly available data specifications to be
used as standards for facility lifecycle
information and interoperability, and other
activities related to this.
Statoil Norsk Hydro Saga Petroleum Aker
Maritime Kværner Oil and Gas Intergraph IBM ABB Um
oe Technology Telenor Global Services
Data Model Reference Data Library ISO
standard
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Decommission

Revamp, Change of use
Operations Maintenance
10 reduction in whole-life-cost
Life-of-Asset Phases
Typical cost/spend profile
x
Fabrication, Construction Certification
x
x
Engineering Procurement
x
Shorten development time/cost
x
x
FEED
x
x
Concept
Cost of phase
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EP Upstream Business Vision -Better Decisions
from People

• Real-time integration of static and dynamic
  components - subsea / topside
• Optimise over whole cycle -from well to gas pump
• Concurrent visualization interactive mental
  creativity

Rightsize Surface Facilities
Optimize Subsurface Knowledge
Business Objective is to Optimize Reservoir
Performance
Gas
Oil
Water
Right Information Right Technology Right Time
Right People Right Solutions
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One Source - Multiple Views Concurrent
Visualisation
Rock Samples/Lithology Log Geologist
Simulation Models Reservoir Engineer
Well Log Petrophysicist
3D Seismic Cube Geophysicist
PI Diagram View
3D CAD View
TRUE DATA SHARING
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The Information Management Challenge Solution
Meeting BPs objective of creating a single
information management system for the total
project and future operations in a stable
structure which enables access and use throughout
all stages of the asset life.
David Adams, BR, Sep 97, Oslo, Norway

• Enable evolution to a completely electronic
  information
• management system
• Enable the separation of data from applications
• Create a single independent shared database
• Commitment to a life cycle information management
  solution

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Facility Data Warehouse - ETAP

• ETAP Eastern Trough Area Project
• BP, Shell, Brown Root, et al.
• Several marginal North Sea OG fields
• Data warehouse for CAPEX OPEX phase
• ISO/STEP POSC/Caesar Product Model
• Projected near term benefit of 2MM from sharing
  data from commissioning to operating phase
• Vision is 10 savings on lifetime asset costs
• 350 million USD

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The knowledge management collaboration
a multi-company project to evaluate the role
and application of knowledge management in the
oil exploration and production industry.
Business Requirements Workshops KM
research Conferences
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Reservoir Performance Re-Perforation -Kern
River Project - Benefits of Improved Information
Flow

• Improve production
• Kern River - 8000 active wells (steam flood and
  production)
• 25 Texaco production
• Re-perforation of 1700
• POSC based asset repository
• off-the-shelf software
• Total project costs
• 450,000 (3 man-months)
• 25k, one man-day
• Implemented at numerous Texaco sites around world

• Production increased
• 23,000 BOPD
• Completed 12 months ahead
• Improved data management and visualisation system
• Log access improved to 5 secs from 3 hrs
• Field profits increased
• 40,000 per day
• Paid out in 9 days
• Increased Texacos bottom line 15 million (1995)

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to benefit the EP industry by establishing,
maintaining and promoting specifications to be
used as standards for the sharing of information
throughout the asset lifecycle.

• Founded 1990
• Not for profit, membership organization
• 5 million/year 100 members
• Houston London

BP Chevron Elf EP Mobil Saudi Aramco Statoil Texac
o
Specification evolution Industry
collaboration Projects Services
Integrated data model (Epicentre) Vendor
Neutral Open Process
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Integrated EP Life cycle Data Model

• Common language for EP
• Vocabulary
• Syntax
• Both the data and data about the data (metadata)
• Supports multiple interpretations

Epicentre Data Model
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POSC and Industry Vision

• Optimize Decisions
• Reduce Costs
• Increase Productivity
• Increase Flexibility
• Innovate

Enable Business Teams to
Through the Use of Industry Data Information
Standards ...
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• 1998-1999 Initiatives
• Interoperability and Business Objects
• Shared Earth Model
• WIME
• Core handling

For more information, contact http//www.posc.org
info_at_posc.org 1 713 784-1880 phone 44 (0)171
464-8547 phone [phone] fax 44 (0)171
464-8730 fax
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Shared Earth Model
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• First Law of Standards
• You cant really declare something to be a
  standard until it has become a de facto standard.
• DeMarco Lister, Peopleware

de facto IT Standards Microsoft Oracle SAP Intel
Cisco Grafitti (Palm Pilot)
Open IT Standards TheOpenGroup ISO ... POSC, P/C
OMG Internet protocols Java
de facto or Open we rely on standards and
miss their absence more than we rush to adopt new
ones!
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Standards enable

• Sharing
• Within an organization (asset teams)
• Among partners
• When trading properties/assets/knowledge
• Innovation
• Rapid deployment of functionality
• Reduced life-cycle costs

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The solidifying standards of a network are both
its blessing and its curse - a blessing because
from the de facto collective agreement flows the
unleashed power of increasing returns, and a
curse because those who own or control the
standard are disproportionately rewarded ...
What the computer industry callsstandards is
an attempt to tame the debilitating abundance of
competing possibilities. Standards strengthen a
network organizations must make the the common
standard their first allegiance. Companies
positioned at the gateway to a standard will reap
the greatest rewards ...
K. Kelly,Wired Sept. 1997
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Law of increasing returns

• Information age
• - increasing returns
• Add value
• Focus on customers external world
• Value growth is exponential
• Increasing returns created/shared by network
• Adding to the network makes more for everyone

• Industrial age
• -diminishing returns
• Cut costs
• Focus on internal processes
• Value growth is linear
• Expertise growth resides in individual
  organizations

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• In the future the whole world of knowledge
  management should not be an applied science as it
  is now, but an integrated science
• it will be successful if every employee becomes
  his or her own knowledge manager and teacher
  and the CEO becomes the companys chief knowledge
  learning officer. - G. Petrash (Dow)

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What will make it happen?

• Culture
• Value Knowledge
• Encourage/reward learning and sharing
• Trust common goals
• Infrastructure
• Common tools
• Common language
• Support for people, processes and technology
• Organization
• Someone has to be responsible
• And it IS everyones job

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The Knowledge Ecology - People, Process and
Technology
PEOPLE multidisciplinary teams working together
to solve common business problems
ORGANIZATION dynamic relationship of emergent
properties associated with collective activities

PROCESSES business processes focused on EP
asset lifecycle
TECHNOLOGIES tools for generating, codifying,
analysing sharing
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What can you do? Now?

• Promote Industry Collaboration
• Demand Products based on POSC Standards
• Build POSC data stores
• Use POSC specifications in your projects
• Support POSC
• Participate in Industry Collaborations
• Join ...
• Industry standards are having a significant
  impact on competitiveness, efficiency, and
  productivity of knowledge workers in the Oil and
  Gas Industry

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More info? Comments?

• http//www.posc.org
• info_at_posc.org
• 1 713 784-1880 phone
• 1 713 784-9219 fax
• 44 (0)171 464-8547 phone
• 44 (0)171 464-8730 fax