Pioneer Natural Resources

1
Pioneer Natural Resources
Portals and Web Services (A Survivor's
Guide) Presented by Tom Halbouty, CIO Pioneer
Natural Resources POSC, November 2005
2
Pioneer company snapshot
Enterprise Value 8 billion Proved Reserves(1) 1
billion barrels Proved Developed 65 Gas / Oil
60 / 40 Reserve to Production Ratio 15
years SEC PV 10 Value(1) 9 billion
Calgary
Denver
Dallas
T
unis
Anchorage
Buenos
Aires
Cape
T
own
Operating Areas

• (1) 12/31/04 proved reserves, using 43.33 /
  6.19 NYMEX flat prices (88 of reserves audited
  by Netherland, Sewell and Associates, Inc.)

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Technology pulls a heavy load

• Formal informal strategy
• Execution model
• Cultural diversity
• Geographic diversity
• Degree of change in the business
• Focus of customer groups
• Diversity of portfolio
• Value of applications
• Picking of the right battles
• Scaling (simplicity vs. complexity)
• Credibility through basic services
• Delivery on the big ticket areas
• Practical project program mgmt.
• Practical governance

4
Understand where your company is

• Pre-Acquisition
• Post-Acquisition
• High exploration
• Geography
• Complexity
• Exploitation mode
• Functionally centric
• Process centric
• Team centric
• Centrally governed (Global)
• Loosely governed (Federated)
• Expanding / rationalizing

5
Timely, relevant, accurate information is
critical to value delivery.
Value is achieved through balance
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Function vs. Process

• Inside Firewall
• E-Mail
• Portals
• Workflow
• Infrastructure
• Outside Firewall
• Extranet
• ASPs
• Portals
• Exchanges

Fundamental vertical capability must be stable
before horizontal processes are optimized.
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Upstream value drivers

• Proper identification of the opportunity
• Acquisition of the acreage partners
• Successful drilling
• Profitable commercialization
• Efficient operations
• Enhancements to operation based on opportunities
  technology
• Understanding when to exit

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Creating value with technology
Value generation through collaboration (3 D
visualization centers)
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Toolset
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Architecture
Desktop
Portal
Launch reports (Well Summary, PI297/298 etc.) for
selected wells on the map
Unify
Arcplan
Spotfire
Search
Legacy-Client Server
BPM
Unify
Web Services- Meta Data
Alerts-BAM
Service Data changes
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Ubiquitous search, contextual or map
Generic Search Tool
Decision Point Map based search
Federated Meta Repository
Decision Point
Document Index
GOAL
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Challenges

• Data Growth structured non-structured
• Legacy data quality
• Focus on immediate value opportunities (limited
  time to engage)
• Market momentum solutions are emerging
  changing rapidly
• Incomplete tool sets incomplete suites are
  emerging for web services web delivery
• Evolving Web Services Standards for items like
  security
• Reliability delivery across a world-wide
  organization creates significant challenges (
  many moving parts)
• Skills complex analytical skills are needed to
  scope, design manage composite solutions
• False promises tool kits are overselling their
  capability
• Work flows integration overlaps between ERPs
  smart suites are emerging complex to resolve

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Why standards matter

• Portals need foundation for obtaining
  presenting information inside outside the
  enterprise
• Standards for processes create common language
  shared vision for the industry
• Ability to deploy, upgrade replace software is
  enhanced
• Efficiency velocity of information exchanged
  between interested parties is improved
• Acquisitions of assets or companies are
  simplified
• Quality consistency of results improve
• Integration federation efficiency are improved
  by allowing the re-use (i.e. Web Services)

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Barriers to standards

• Apathy
• Lack of real sense of value what is important
• Lack of funding
• Insufficient time involvement
• Lack of real cooperation compromise
• Too many cooks in the kitchen
• Too much innovation
• Vendor competition
• Lack of real visibility education
• Solution will likely require the consolidation of
  standards bodies, greater participation by all
  interested parties in the global industry clear
  recognition of value from standards

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Closing broad considerations

• Governance must vary radically based on business
  model
• Management communication approach must fit
  within cultural boundaries
• Process will almost always be over designed (lot
  of effort to create an elegant simple solution)
• A vision must be flexible deal with the
  uncertainty of IT
• Sourcing is complex dynamic - driven by the
  market
• Great agreements are useless if a provider
  closes up
• No measurement system is better than a bad one
  (unbalanced)
• Distraction of the organization between strategy,
  operational concerns rapid response to threats
  opportunities requires intensive effort to
  balance communicate