Oil and Gas Engineering - 2016 10

19 Managing risk through maintenance | 33 Moving at the speed of data
SCADA
at the ‘junction’
Computerized coordination
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CONTENT SPECIALISTS/EDITORIAL
BOB VAVRA, Content Manager
630-571-4070 x2212, BVavra@CFEMedia.com
EMILY GUENTHER, Associate Content Manager

630-571-4070 x2220, EGuenther@CFEMedia.com
the operators
I
KATIE SPAIN, Art Director
BOB VAVRA
630-571-4070 x2218, KSpain@CFEMedia.com often have said that it doesn’t matter
whether the glass is half-empty or half- CONTENT MANAGER
PUBLICATION SERVICES full; what matters is how thirsty you are.
JIM LANGHENRY, Co-Founder & Publisher After a period where we couldn’t get
630-571-4070 x2203, JLanghenry@CFEMedia.com
enough in the oil and gas market—enough any given moment.
STEVE ROURKE, Co-Founder
630-571-4070 x2204, SRourke@CFEMedia.com time, enough money, enough workers—we The influx of data, the improvement in
TRUDY KELLY, Executive Assistant have spent the last two years bemoaning analytics, and the low cost of computing
630-571-4070 x2205, TKelly@CFEMedia.com
the price of oil and the dire effects it has had capacity all combines to give us greater
AMANDA PELLICCIONE, Director of Research
978-302-3463, APelliccione@CFEMedia.com on the industry. insight into the process than ever before.
ELENA MOELLER-YOUNGER, Marketing Manager I think it’s time to get thirsty again. You still want your operators to be able
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There’s a need to reinvest in the oil and to act on all of that insight. Unleashing your
KRISTEN NIMMO, Marketing Manager
630-571-4070 x2215, KNimmo@CFEMedia.com gas exploration, delivery, and refining mar- operators to deliver results quickly isn’t
PAUL BROUCH, Director of Operations kets, but that reinvestment should focus just a cool idea; it’s a money-saving, time-
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on delivering greater value from every drop saving imperative. It’s especially important
CHRIS VAVRA, Project Coordinator
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JOY CHANG, Digital Project Manager the process. lined operational costs.
630-571-4070 x2225, JChang@CFEMedia.com As this month’s cover story notes, Everyone is looking to lower overall pro-
MICHAEL ROTZ, Print Production Manager
717-766-0211, Fax: 717-506-7238 there’s no better place to start than in cess costs. SCADA and cloud-based ana-
mike.rotz@frycomm.com the way operators use technology such lytics are a great way to start that process.
MARIA BARTELL, Account Director, Infogroup Targeting Solutions as SCADA. While I don’t want to spoil If you’re already a big fan of SCADA, that’s
847-378-2275, maria.bartell@infogroup.com
RICK ELLIS, Oil & Gas Engineering Project Manager,
the entire story for you, I was especially fine, but there are far more operations that
Audience Management Director inspired by the following quote from Andy could benefit from greater process control.
303-246-1250, REllis@CFEMedia.com
Weatherhead, manager of global engineer- The only barrier is the willingness to make
LETTERS TO THE EDITOR
Please e-mail your opinions to BVavra@CFEMedia.com ing of Rockwell Automation in this month’s an investment in those solutions.
INFORMATION lead article: This is the time. It’s time to get aggres-
For a Media Kit or Editorial Calendar,
e-mail Trudy Kelly at TKelly@CFEMedia.com “What’s exciting about the upstream sive about improving processes. This can’t
REPRINTS today is the great uses it has for cloud just be done by cutting people; in fact, one
For custom reprints or electronic usage, contact:
Brett Petillo, Wright’s Media computing and for something that is could argue the opposite. We need to train
281-419-5725, bpetillo@wrightsmedia.com happening right now, the advent of auto- and empower our operators to use this
MAILING ADDRESS CHANGES discoverable assets technology. The cloud influx of data and analytics to deliver on
Please e-mail your changes to REllis@CFEMedia.com
offers a built-in infrastructure for SCADA. the promise of cloud computing.
Combined with a services approach, an For an industry traditionally so risk-
PUBLICATION SALES operator can have power; use a wizard averse, this is a paradigm shift. Industries
JUDY PINSEL, National Sales JPinsel@CFEMedia.com to set up; and be processing data in five are continually adopting cloud-based com-
1111 W. 22nd St., Ste. 250, 847-624-8418
Oak Brook, IL 60523 Fax 630-214-4504 minutes. Unfortunately today, in too many puting and analytics to put more power in
cases, you see sites where despite using the hands of workers to make better and
the very latest drilling technologies, after faster operational decisions. It’s long past
three months of work, they still haven’t time for oil and gas operators to make the
tied into SCADA. Three months of lost opti- same commitment to the future.
mization is real money.” Once we unleash our operators, we can
There are two key ideas here: “opera- improve operations at every point along
tor power” and “lost optimization.” The the pipeline. No matter the price of oil, it
latter is unacceptable in an age where we will translate to a return on that long-
should know the status of our operation at overdue investment. OG
4 • OCTOBER 2016 OIL&GAS ENGINEERING

I NSIDE
Cover image courtesy: ABB
COVER STORY
11 SCADA addresses oil and gas field challenges
Operators recognizing the value of IT-based automation.
11
15 Web SCADA offers new benefits,
smarter operations
Platforms offer new data, reporting, and analytics from the cloud.
FEATURES
19 Knowing the future: predictive maintenance and risk mitigation
Technology helps prevent plant downtime, mitigate risks.
23 Make better, strategic decisions in less time with Big Data

Advanced analytics are helping oil and gas companies adapt.
27 How to battle drift in bonded foil strain gauge-based sensors

Wide variety of uses, tolerance for oil and gas industry.
30 Preparing for a cyber attack

Physical security plans can be a guideline for developing a cyber strategy.
30
33 Moving at the speed of data
Part 2 of Oil & Gas Engineering’s interview with Tony Edwards of
StepChange Global.
39 Data mining and analytics for performance

optimization
Understanding the value of data mining crucial to managing assets.
41 The framework for process intelligence and improvement

How to bridge the gap between the shop floor and the top floor.
43 Products
OIL&GAS ENGINEERING OCTOBER 2016 • 5

INDUSTRY NEWS
A strategic shift to
condition-based monitoring
Portable devices offer a new way to gather, leverage data.
M
By Chris McMillen oving from scheduled-based Several condition monitoring methodolo-
GE Bently Nevada maintenance to condition- gies have evolved over the years with main-
based maintenance is a para- tenance and reliability professionals typically
digm shift across the oil and leveraging one or a combination of four gen-
gas industry. Today, condition- eral areas:
based maintenance is broadly • Reactive maintenance: Also known as
accepted as the best practice for monitoring a “run to failure strategy”; typically, low
and preventing plant equipment failure. The cost to support although can lead to
market has responded with several solutions higher costs when actions are required
that cover the broad spectrum of safety, to address a failure, especially when it’s
quality, value, and cost to fit the end-user unplanned.
needs depending on where an organization • Preventive maintenance: The traditional
is in the preventive maintenance journey time-based maintenance or schedule-
from reactive to proactive. based actions on a planned time frame;
The most basic condition monitoring strat- moderate cost to implement with the
egy starts with a walk-around program. As a higher degree of continuous equipment
result, portable devices designed for walk- operation over reactive maintenance.
around monitoring can be considered the • Predictive maintenance: Sometimes
“gateway to condition monitoring.” called machinery or equipment health
By definition, condition monitoring is the maintenance, this method leverages a
process of monitoring a parameter or condi- variety of inputs in predicting potential
tion of equipment (any equipment within failures earlier on than preventive main-
the facility) in order to identify any changes tenance. Often, this method will involve
Typical Condition Monitoring that could be indicative of a developing fault. a higher degree of investment in capital
and Maintenance Strategies. Equipment protection also falls under the and expertise while significantly reducing
All graphics courtesy: GE umbrella of condition monitoring, but moni- risk equipment concern.
Bentley Nevada toring is the first step. • Proactive maintenance: Also called reli-
ability maintenance, this strategy looks
beyond the specific equipment when
addressing failure root cause areas. The
highest level of condition monitoring
combines multiple solutions, process
reliability, and system operating optimi-
zation to achieve lowest operation risk
while delivering desired output.
The choice of what maintenance

plan to use in order to maximize plant
and equipment uptime will come
down to cost, return on investment,
risk prevention (i.e. safety, regulatory
compliance, quality, timeliness, and
cost), and desired outcome.
INDUSTRY NEWS
A key in planning out any maintenance • Initial walkaround or route definition—

program is to fully evaluate equipment typically done on a device or via soft-
criticality and set up the appropriate com- ware package and includes:
bination as necessary. Each maintenance a. Points, assets, and frequency of
methodology as well as the solutions will collection
vary based upon what level the equipment b. Multiple readings from a single
criticality is and where in the process said asset or view of machine health
equipment contributes to the overall system over time.
output. • The actual data collection—via portable
In addition, condition monitoring can’t handheld.
be discussed without linking back to the • Data analysis—uploaded into software
familiar potential failure (P-F) curve. Just like or via handheld portable analyzer. Data
equipment critical and maintenance program analysis looks at alarms and trends to
planning, another key to condition monitor- help identify potential problems.
ing is understanding where on the P-F curve • Action taken—reports created and
a maintenance strategy is desired to help sent to maintenance and/or operations
guide a proper solution. This curve can also teams.
be a reference for progress on the reactive
to proactive journey. Portable devices span a wide variety of
measuring techniques from acoustic, ther-
Portable condition monitoring mography, vibration, and electrical signature,
Condition monitoring comes down to a and as technology continues to grow expo-
combination of maintenance strategy nentially, portable solutions have to do the
and equipment criticality, but there are a same. Portable devices complement indus-
wide variety of solutions and technologies trial technology advancements by adapting
available to leverage. Portable condition quickly to new forms of data and equipment
monitoring solutions play an important role operations with new measuring techniques,
in the journey. data collection, and storage, including cloud
Portable devices can, and are, used for storage.
basic collection upwards to more advanced However, despite the advantages of
analysis while still requiring an operator or automation and the speed of information
expert to collect the data. Portable devices, gathering, portable devices still employ
the traditional walk around monitoring pro- the irreplaceable human element. Smart
gram, are a relatively low investment com- sensors can auto detect, update, and col-
Traditional P-F Curve with pared to more advanced solutions. The typi- lect data, but the indispensable additional
Typical Technologies Today cal portables solution comprises: equipment health information gleaned
from operator touch, smell,
sight, and intuition remains
invaluable.
Whether organizations are
just beginning to adopt condi-
tion monitoring or continuing
an existing condition monitor-
ing program, portables offer a
steadfast means in assisting
during any stage of the main-
tenance and reliability journey.
Portable devices are a gateway
to condition monitoring. OG
Chris McMillen is product manager for

GE Bently Nevada.

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The Four Necessary Steps to

Predictive Management 1 %6 0
Jeff Knepper | Executive Director of Sales for Canary Labs - 5

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Tired of reacting to unexpected equipment failures, power outages, and unplanned

downtime? If you are not actively transitioning from a reactive to a predictive asset
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you to keep vigil on the potential danger signals coming from equipment. Through this model, information is
easily shared between staff members, increasing communications and providing better feedback loops. Assets
are ranked by potential risk, allowing for better preventative maintenance, planning, and parts support.
At the core of the predictive model is the data historian, faithfully

recording your entire system’s process data. Once reliably stored,
your historian will allow you to create asset groups, monitor the
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you “look around the corners” and see what equipment issues
you can expect in the immediate future. The key application
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SCADA
SCADA addresses oil and

gas field challenges
IT-based automation’s role in coordinating for complex operations within the oil and gas industry
T
By Kevin Parker he term supervisory control and data
Oil & Gas Engineering acquisition (SCADA) implies a highly
configurable set of industrial software FIRSt OF twO PARtS
applications that can be used to sup-
port management for almost any Coming in DeCember:
form of process production.
SCADA is widely applied in the upstream,
midstream, and downstream oil and gas sec-
tors. In the upstream sector, its role often
Why SCADA remains
is stereotyped as being largely in support a relevant technology
of remote data transmission. There are rea-
sons to believe this will change. One reason
to believe so is the wide and varied use of
SCADA in other industrial sectors. In addition, SCADA supports the vital operations-coordi-
owners and operators are recognizing how nation role. It does so by being an accessible,
IT-based automation can productively address single-source of truth.
even the unique challenges of the upstream Petroleum industry software provider,
oil and gas sector. Technical Toolboxes, said in a statement that
the goal of the “digital oilfield” is to transform
SCADA technology for the oil operations data into effective and timely field-
and gas industry management decisions by combining the
“SCADA’s ability to collect data at remote oil latest technology advances with science and
and gas sites reduces personnel visits and engineering fundamentals.
leads to route and dispatch optimization. The execution of deep-water offshore
But the profile of SCADA is changing in oil exploration, drilling, and production is at the
and gas. Today, as is already seen in other very apex of high-tech industrial success,
process industries, SCADA is a platform including automation use.Better and more
technology used to control and supervise extensive use of IT-based automation will
many types of industrial processes but also to support fast expansion of oil and gas produc-
optimize complex coordination of operations tion in continental North America and else-
among multiple business partners,” said where.
Darren Schultz, director, SCADA, oil, gas, and Compared to other process industries, oil
chemical, ABB, Inc. and gas executive management is reputed
Advances in the scope and scale of oil and to have some ambivalence when it comes to
gas SCADA implementations are seen in IT and automation initiatives. Moreover, the
upstream environments, including fast-paced industry retains a pronounced tendency to
shale fields. These SCADA instances face embrace custom software solutions develop-
industrial processes while also intersecting ment. Packaged SCADA with industry-specif-
with business operations. In other words, ic applications is almost invariably considered
besides being a medium for process control, the reasoned choice in other industries today.

SCADA
SCADA has grown from a Making the case for automation in the Last summer in 2015, natural gas produc-
boxed application for engi- oil and gas industry tion in the U.S. was about 70 billion cubic feet
neers fiddling with a PC “The investment climate in the oil and (Bcf) per day. U.S. natural gas production has
to become a paradigm for gas industry the last two years has been risen 46% in the last decade, according to the
distributed industrial control.
challenging. But a focus on integration and American Petroleum Institute (API).
Image courtesy: Schneider
automation continues to be relevant,” said In shale fields, “Production companies can
Electric
Doug Rauenzahn, global product line director often complete two or three wells per week.
at Weatherford International. “A pause in rapid Progressive companies have adopted a stan-
expansion has given engineers a chance to dardized ‘cookie cutter’ automation approach
plan. In low-price markets, productivity gain for these wells,” said Mark Sen Gupta, an
from automation has greater impact on the automation strategist at ARC Advisory Group.
bottom line.” The fact is, “The technology stack in oil and
Currently, the United States produces gas has grown tremendously over the last 6 or
about 10 million barrels per day (bpd) of oil, 7 years,” said Rauenzahn.
up from an average of 5 million bpd from
2005 to 2010, according to Vikram Rao, Using SCADA to streamline operations
author of Shale Oil and Gas: The Promise and SCADA’s best-known upstream function
the Peril, RTI Press, second edition, 2015. is wireless communication with remote

“ The investment climate in the oil and
gas industry the last two years has been
challenging. But a focus on integration
and automation continues to be relevant.
A pause in rapid expansion has given
engineers a chance to plan. In low-price
markets, productivity gain from automation
telemetry units (RTUs) that monitor widely
scattered wells or well pads.
has greater impact on the bottom line.
Doug Rauenzahn,
”
Automation and service companies and
small entrepreneurial suppliers are betting
Weatherford International
that in the future, SCADA will be a powerful
platform solution for streamlined operations at from being a boxed application for engineers
many different points in the oil and gas sup- fiddling with a PC, to become–when used in
ply chain. Better control and coordination of conjunction with programmable logic control-
complex site operations means lower costs to lers (PLCs), devices, and device drivers—a
produce oil or gas. paradigm for distributed industrial control.
Industrial software suppliers and oil and In downstream oil and gas, SCADA use
gas services companies are assembling resembles that found in chemicals, plas-
software application suites that make use tics, or other type process industry plants.
of common services to manage core oil and Typically, what’s “supervised” is a control-
gas operations; for example, downhole and system taxonomy that includes PLCs that
site oil and gas drilling and production, gas act as a focal point for system inputs and
and liquids transmission, equipment and outputs and control logic—as well as the
water management, and other functions actual sensors, actuators, and other types of
important in the upstream sector. “edge” devices and instruments used.
In addition, issues of connectivity and
security, mobility, and the Industrial Internet Using SCADA for oil and gas
of Things (IIoT) are addressed using the latest applications
underlying infrastructure technologies, many Schultz notes that basic functions performed
first forged in mass consumer markets. at key points in upstream operations benefit
The oil and gas industry has a grudging from SCADA-based coordination based on
attitude toward using IT-based automation, superior insight into process conditions,
primarily because of its complex return-on- including the following:
investment (ROI) calculation. In other words, When an oilfield is first breached, the raw,
projected benefits are not so neatly quanti- crude oil can come out the ground at pres-
fied as in those industries managing closed- sures of more than 23,000 psi. Once about
loop processes. 10% of the reservoir is extracted, the field
Regardless of this fact, there is increased is “lifted” by pumping oil or gas into it, and
demand for automation within the oil and enhanced recovery methods are needed.
gas industry. SCADA technology, on the Challenges include preventing blow-outs,
other hand, has been under constant devel- verifying that pumping is safe, and that well-
opment for about the last 30 years. During bore integrity is maintained, according to
this time, the SCADA concept footprint grew Schultz.

SCADA
“ can
While new automation technologies
enable quantum gains in upstream
productivity, the industry has been
conservative in their deployments,
preferring what it considers time-tested
production methods and technologies.
Michael Day,
”
Siemens
Gathering systems take raw material just Oil & Gas Financial Journal. In contrast to the
emerged from the ground and convey it to era of easy credit and high prices, around
holding tanks and processing plants. Schultz 35%, or about 175, of publicly listed explora-
points out that in this staged process, each tion and production companies owe approxi-
specialized team works with its own data mately $150 billion of debt and face financial
stores. The teams also need to collaborate distress.
with each other. “While new automation technologies can
At a production site, what actually comes enable quantum gains in upstream produc-
out of the ground is often a mixture of gas, tivity, the industry has been conservative in
oil, sand, and water. The water is isolated and their deployments, preferring what it consid-
re-injected, and the gas and oil is separated ers time-tested production methods and
into different streams. This is often done technologies,” said Michael Day, oil and gas
by spinning the crude oil in hydro-cyclones. market development manager at Siemens
“These machines must be safe and efficient, Industry Inc., in a posted industry white
and machine control is something SCADA paper “Drill Bit to Boardroom.”
does well in many industries,” said Schultz. Oil and gas exploration and production
The purpose of many SCADA implementa- companies must increase productivity
tions is better collaboration among expert via integrated operations. Going forward,
role players. Stan DeVries, senior director “Rigorous management of new projects and
solutions architecture at Schneider Electric, day-to-day operations are likely to be critical
said, “Tiered SCADA installations are components … development of infrastructure
increasingly common.” In his experience, in needed for a field or region will be stream-
Australia, five SCADA instances were tiered, lined and less bespoke. Lower returns in all
each with its own “constituency.” sectors of the market will place a premium
on integration, scale achieved by technology,”
Constraints within the oil said Bannister.
and gas industry “SCADA effects a significant transforma-
As the oil and gas industry continues to grow tion in when, where, how, and by whom
in capacity and infrastructure, it’s also highly work gets done,” said DeVries. “When work-
constrained by continuing low prices. ers are at a premium or are highly valued
In the U.S., between July 2014 and specialists, a SCADA solution is part of any
December 2015, 35 oil and gas exploration reorganization meant to make them more
companies filed for bankruptcy protection, productive.” OG
according to an opinion piece on “the oil
price crash” by Joe Bannister, a partner with Kevin Parker is a contributing editor to Oil & Gas
Hogan Lovells that recently appeared in The Engineering.

WEB SCADA
Web SCADA offers new

benefits, smarter operations
Cloud-based SCADA offers new data, reporting, analytics, and more cost-effective operations.
W
By Daniel Johns ith the uncertainty of oil
Critical Control Energy
Services
and gas prices, producers
are continually review-
ing capital costs and
“ Web SCADA has
advantages beyond
operational efficiencies.
Software and technology monitoring and data
continue to allow producers to assist in
these endeavors. Those in the measure- gathering capabilities. Like
ment community recognize how techno-
traditional SCADA, users
logical services and software ensure mea-
sured data is collected, reviewed, and vali- are able to increase gas
dated to confirm that all revenue streams
are being tapped to their full potential. measurement reliability
With innovations continuing to expand in
the supervisory control and data acquisi- by accessing the meter’s
tion (SCADA) world, producers are seeing
configuration information
”
advances in the availability of real-time
data at their fingertips. By being able to and audit trails.
monitor and manage processing sites and
production, producers are able to reduce
and limit operator site visits (thereby mini-
mizing production downtime) and ensure As such, the software could be run on
compliance in regards to government regu- multiple platforms such as disk operating
lations. system (DOS), operating system 2 (OS2),
Windows, and Linux. The remote loca-
Building blocks to using tions of these systems provided an inter-
SCADA systems active ability to the operator who could
SCADA was a term that emerged in the produce local reports regarding production.
1970s due to the use of microprocessors In the 1990s and early 2000s, local area
in programmable logic controllers (PLCs) networks (LAN) allowed SCADA systems
and remote terminal units (RTUs). In the to connect to other systems including the
1980s and 1990s, SCADA evolved from the ability to connect these remote fields into
widespread use of hard-wired telephone corporate systems. Subsequently, struc-
lines and radios, giving SCADA developers tured query language (SQL) databases
an ability to connect to controllers on started to become a standard for HMI
assets that were located at great distances software. Corporations began having their
or in isolated areas. IT departments support SCADA databases,
PC-based human machine interface routers, network switches, and intercom-
(HMI) software allowed for a serial con- pany network connections.
nection to a communications network.

WEB SCADA
The benefits of using cloud-based ized alerts, including text messages, email,
SCADA systems and phone calls, users can take appropriate
Cloud-based SCADA systems now steps to come up with a solution.
allow a level of automation that not only According to Jay Moravec, director
presents real-time data that is available of software solutions at Critical Control
and reportable but also allow operational Energy Services, users can login to Web
conditions to be changed directly from the SCADA platforms to not only retrieve vol-
software, provided there is a connection ume data but also change production set-
to the cloud. Operators can be notified tings and perform shutdowns if problems
in real-time of current issues and often are detected. This ensures that operators
do not require site attendance to perform can strategically determine when they need
shutdowns or to restart operations. to visit sites; saving both time and money.
“With the appropriate credentials, any-
one can access a Web SCADA system Solving problems with
where there is Internet access,” said Sandy Web SCADA systems
Munro, product manager for Critical Control Some Web SCADA systems use drivers
Energy Service. “You can access your written in the native protocol of the
data from any platform including desktop, measurement computer. Where other
laptop, mobile platforms, or cell phones.” SCADA providers need to outsource
The alert system built into Web SCADA this work to third-party providers, such
platforms is a significant value-add to com- systems are able to access full device
panies that want to measure their volume history archives and provide a complete
data. device configuration using the in-house
The time and money saved by remotely built drivers.
accessing sites rather than having person- Web SCADA has advantages beyond
nel going to sites can be in the tens of monitoring and data gathering capabilities.
thousands of dollars per month depending Like traditional SCADA, users are able to
on the area, weather conditions, and num- increase gas measurement reliability by
ber of sites. Web SCADA also allows users accessing the meter’s configuration infor-
to change production settings remotely. mation and audit trails. Tracking a gas
These features are not available through meter’s configuration and audit trail is very
traditional SCADA or walk-up SCADA ser- important to ensure correct gas measure-
vices. ment.
By using Web SCADA, operators have the Web SCADA systems help manage
ability to strategically determine when site changes made to the gas meter that could
visits are required. Through various custom- cause measurement problems. This infor-
“ Byproducers
being able to monitor and manage processing sites and production,
are able to reduce and limit operator site visits (thereby
minimizing production downtime) and ensure compliance in regards to
government regulations.
”
“ accessing
The time and money saved by remotely
sites rather than having boots
on the ground and trucks going sites,
can be in the tens of thousands of dollars
per month depending on the area,
weather conditions and number of sites.
Web SCADA also allows users to change
production settings remotely.
”
mation is also used to resolve measure- and temperature including time stamps
ment problems caused by incorrect meter and will continually adjust as the trends
configuration parameters. They also run show live data. Users can view these
daily checks on the meter’s configuration instantaneous trends for a single meter or
parameters and will flag incorrect settings view compiled production data for multiple
in the measurement problems report by locations.
displaying an alert and showing incorrect
settings on the meter configuration page The future of modern SCADA
and area meter configuration reports. But technology
the software takes it a step further. As with all software technologies, Web
Though ensuring that operational effi- SCADA will continue to expand and
ciencies are monitored and maintained is provide even greater access to data and
of utmost concern; equally as important allow for enhanced remote access to site
is the availability to the volume data cap- information.
tured from the device. Web SCADA provid- “Those who utilize modern SCADA
ers can also create reports that users can systems recognize the need and value in
run such as production summary reports. distributing real-time information at vari-
These reports can be run per individual ous corporate levels,” said Munro. With the
meter for a range of time including daily addition of Web SCADA, producers have
and monthly. the ability to gather exceptional amounts of
Users also have the ability to create data allowing them to make well-informed
custom reports to trend and compare decisions to generate even greater rev-
information from multiple locations. This enue.
customization helps users easily and effec- The industry is starting to get a taste for
tively focus attention where needed. The what the Industrial Internet of Things (IIoT)
manipulation of this data can greatly sup- could mean from a productivity perspec-
port operators in identifying trends that tive. Being able to collect data and react
would not previously be available through to it instantly creates a safer, smarter, and
other means such as walk-up SCADA. more cost-effective way to conduct busi-
Trending screens also allow users to see ness. OG
live meter production data in a graphical
interface. These trend lines can include Daniel Johns is the manager of Channel
flow, static pressure, differential pressure, Partnerships at Critical Control Energy Services.

WEBCAST
IIoT and the Digital Oilfield:
Making Data Actionable
Wednesday, November 9, 11:00am PT/1:00pm CT/2:00pm ET

One (1) Certified Professional Development Hour (PDH) available for all attendees.
This webcast will illuminate the challenges of implementing automation,

help identify which parts of the operation to focus on,
and strategies for making the data collected actionable
across the entire operation.
Webcast attendees will:

• Learn how to assess where automation can be applied with
the greatest effect in their organization
• Understand the business and personnel-related challenges

involved in implementing automation and IIoT technology
• Hear about case studies and data integration

strategies being implemented at major oil and gas companies
in production environments
Presenter: Tony Edwards, CEO of Stepchange Global

Sponsors: Canary Labs, Kepware
www.oilandgaseng.com/DigitalOilFieldWebcast
PREDICTIVE MAINTENANCE
Knowing the future:

predictive maintenance
and risk mitigation
Predictive technology proves to be the answer of help prevent plant
downtime, safety, and environmental risks.
T
By João Marquez he advent of monitoring and pre- replacing it (reactive maintenance), replacing
dictive technology has to this day the equipment periodically according to man-
averted a myriad of accidents and ufacturer instructions whether it is damaged
millions of dollars in equipment or not (preventive maintenance), or having a
failures and plant downtime. At a system that would tell you in advance what
time when asset optimization is kind of damage your equipment is suffering
the word of order and when security and and when is the optimal time to replace it
environmental concerns are higher than ever (predictive maintenance), which option would
before, predictive maintenance can prove to you choose? It depends.
be the answer to the prayers of managers, For cheap, noncritical and easy-to-replace
health and safety executive directors, and equipment, installing high-tech sensors that
engineers alike. flood your servers with performance indica-
“The biggest challenge in the oil and gas tors might be unjustifiably expensive and
industry today is the identification and fore- useless. It is just easier to replace it once it
casting of hidden risk development,” said stops working. Noncritical equipment that
Henk Smith, director of key accounts for has a long lifecycle that is subjected to little
Europe and South America at GP Rovsing stress and degradation might also not justify
Dynamics, a GP Strategies Company. constant monitoring if it were replaced peri-
odically. However, if you could predict when
When to implement predictive the moving parts of a gas processor would
maintenance technology start to degrade and have the ability to act
“In our experience, operators that engage on it at an optimal time to reduce costs and
with predictive maintenance technology are prevent catastrophic failure, then your invest-
astonished at the results, but the principle ment might be well worth it.
strategy we apply is in fact quite basic. It is A good example of implementing predic-
just a pragmatic approach to problem solving tive maintenance technology was a near cata-
with technology that has been available for strophic event at Total’s Petrochemical facility
quite some time but [one] that companies in Carville, La. Using infrared thermography,
have so far been slow to implement,” Smith Azima DLI, a provider of predictive condition
added. monitoring and analysis services who had
This disparity between available technology been working at Total Petrochemical’s plant
and lagging industrial application can some- applying regular predictive maintenance anal-
times be perplexing. ysis since 1998, was able to detect an anom-
Let’s consider this: As the manager in aly in an aluminum bus bar inside the plant’s
charge of maintenance and reliability at an reactor. The analysis revealed a temperature
industrial plant, between the choice of run- measurement at the jumper wire connection
ning your equipment to exhaustion and then with the reactor above 800 °F, which would

had led to eventual shutdown and incalcu- According to Azima DLI, the plant’s pumps’
lable destruction of surrounding equipment rate of mean time between failures fell
and safety risks for workers. An inadequate from 22 months to 52 months in a period
clamp in the jumper wire was identified, sav- of 10 years, and maintenance costs for
ing Total Petrochemical thousands in repairs the refinery’s pumps dropped by 50%. The
and reduced downtime. ConocoPhillips refinery in Ferndale now has
a 91% plant availability rate.
Implementing predictive maintenance
technology Benefits of predictive maintenance
Timing is key when applying predictive technology
maintenance systems and naturally, the Industry players suggest that the average
earlier the better. “Reliability is crucially period of return on investment for these
important and we see more and more oil systems is 12 months, with escalating
and gas companies paying attention to these financial benefits over time. That seems,
issues, not only from an economic point however, not always to be the main concern
of view, to avoid critical failure, operational for operators.
shutdown, and equipment damage, but also “In oil and gas, cost is not always the
from a health, security, and environmental primary objective. We have come to under-
protection point of view. Above all, in stand that the most recognizable advan-
order to take all the benefits from these tage of these technologies for oil and gas
technologies, it is fundamental that they are companies is focused on risk mitigation
applied as early as possible in developing rather than return on investment,” said Burt
projects, as application is costly and more Hurlock, CEO at Azima DLI. Through analysis
complicated when operations are already and cross industry comparison, today these
on the way. There is a great advantage to companies are capable of developing:
integrating these technologies in the front- • Risk analysis
end engineering design (FEED) process,” • Aggregation of all mechanical faults
said Paul Wheelhouse, director at Red detections in operations
Wheel Solutions, a maintenance, asset • Scored mechanical fault detections by
management, and reliability consulting severity and potential impact for disrupt-
company. ing production and operational continuity
Another project developed by Azima • An overarching view of the system’s
DLI included the ConocoPhillips refinery potential benefits for risk aversion.
in Ferndale, Wa. Built in 1954, the aging
refinery was an integrated single train As concerns for human security rise in oil
fuels refinery with FCC, HF alkylation, and and gas operations, these approaches can
reformer operating units, with a process- be instrumental in saving lives and promot-
ing capacity of 110,000 barrels per day. The ing operational uptime.
plant had a reactive maintenance approach
with staff constantly concentrating on fail- Improving predictive maintenance
ing pumps and motors, which prevented practices
it from having any long-term maintenance A presentation at Power-Gen International
strategy. ConocoPhillips chose to install conference in 2014, made by Helmer
vibration monitoring sensors and use inte- Andersen, performance and condition
grated analysis and information-processing monitoring manager at GP Strategies
software, which uses statistical analysis Corporation, and Bruno Lima, technical
to compare accumulated average baseline communications PL from Petrobras,
signatures from the pumps against the test described the application of real-time fleet
data. By comparing the tested machine’s condition and performance monitoring to
spectral peaks to this baseline, excesses Petrobras’ gas-fired power plants in Brazil to
are processed through a set of rules for improve operational availability and reduce
the machine, and a diagnosis is rendered. fuel and maintenance costs. Seventeen

power plants, with a combined output
of 6 GW, are now monitored across the
country. The project includes the tracking
of 63 gas turbines, 11 steam turbines,
59 gas engines, and 27 heat recovery
steam generators through advanced
performance, combustion, and advanced
condition monitoring using thermal
modeling, vibration spectral monitoring,
and reliability assessment. The operation is
managed using software at the monitoring
and diagnostics center, located in Rio de
Janeiro. Initially implemented in 2013,
phase 1 of the project lasted for 6 months
including IT infrastructure, import of 24.000
parameters, with basic performance and
condition monitoring. Phase 2 took 12
months to implement advanced condition
monitoring using spectral vibration The objectives of the intervention included: The chart outlines the opti-
monitoring for critical production machinery, • Online condition monitoring covering mization of information dis-
and further implementation of the advanced both the gas turbines tribution under a predictive
functionality is still on-going. • Gearboxes and compressors maintenance structure for
different user groups. Graph
“The monitoring approach with full auto- • Online performance monitoring covering
courtesy: CFE Media
mation of diagnostic data evaluation, fault the gas turbines and compressors
diagnosis, and fault forecasting revealed • Online reliability monitoring covering
major problems in several plants that could the compressor lines and 30 less critical
be addressed before a critical situation machines
would be reached, avoiding unscheduled • Offline condition monitoring of electric
downtime. This changed the operation from motor driven fans and pumps.
reactive to proactive, the key objective of
the project, and realized a short return on The system was designed so that all infor-
investment,” Smith said. mation would be processed through one
An older, but demonstrative case, was single server at the platform that would allow
also detailed in a paper authored by Smith for onshore monitoring and management
and TAQA Energy’s Neil Macrae regarding from any one of BP’s global offices using
the application of predictive maintenance particular software. According to the previ-
for the gas compressor trains of the North ously mentioned study, in 2 years, reliability
Sea production platform P15D, owned by was improved by 1%, from 96% to 97%,
BP Netherlands Energy’s (today the facility and availability improved by 2%, from 96%
is owned by TAQA Energy), in 2003. In this to 98%. The system, including implementa-
case, the challenge for BP was “operating tion, had paid for itself in 12 months. One of
a mature gas field with a constant need for the most relevant features in this particular
cost reduction while maintaining availability application is that the CPRM system distin-
on-demand.” An intelligent condition, per- guishes between information for operators,
formance, and reliability monitoring system maintenance engineers, process engineers,
(CPRM) was put in place to quantify histor- and management with each user group hav-
ic and future risk of downtime and assess ing its own warning system with dedicated
capacity reduction to manage operations information related to its responsibility.
and maintenance. A dedicated reliability Operators receive immediate information
monitoring software package was used to about actions that need to be executed in
identify the main causes of downtime over order to minimize and shorten trips, mainte-
the previous 4 years. nance engineers receive information about

long-term problems, process engineers get our experience, the flow of communication
information about deteriorated performance, between the technical side of the operation
and managers get information about achieved and management is very dependent on the
key performance indicators on reliability, company’s culture. If the company upholds
availability, and utilization, plus variations in an old-fashioned culture, they will be very
the benchmark figures. protective of the information they share even
These technologies have been applied for amongst themselves, to the extent that the
a very long time, but the information went to technicians will not want management to see
plant managers and technicians alone. What how well or how poorly they are operating.
has changed in recent years is the advent of They are asked to do a lot without very much.
the Internet, which has finally allowed aggre- They will be asked to implement a strategic
gating that data across a number of produc- predictive maintenance program without
tion and operation plants and applying it verti- enough funds to do it and with no specific
cally to any company. “What the digitalization strategic objectives,” Hurlock said.
has allowed providers is that we are now able The ability to benchmark and compare per-
to take business level metrics and benchmark formance as well as a risk-focused promotion
the performance of our customers. This allows of these technologies should now allow for
them to rank the performance of their differ- managers to see the risk mitigating and stra-
ent operations, to identify which ones run well tegic importance of these technologies; how-
and which ones don’t, and also to benchmark ever, another problem subsides. Investment
their performance against other companies in maintenance procedures doesn’t tend to be
and operators in the market,” Hurlock said. too high up on oil and gas companies’ agenda,
The most common uses of predictive main- and a sort of Catch-22 emerges. “When the
tenance technology, including oil analysis, oil price is up, nobody spends money on main-
infrared thermography, and vibration analysis, tenance because they are making so much
have been around for over 3 decades, but money they don’t have to, and when the
have failed to attract the attention of manag- prices are down, there is a very myopic view
ers that tended to see maintenance issues as of cutting costs. It will take leadership and a
minor, technical affairs. The industry still finds culture change for these technologies to be
it hard today to send the correct message to implemented, and that will take a long time,”
decision makers in operating companies, but Hurlock said.
that might be changing. In the meantime, the gap between main-
tenance performance between top optimized
Obstacles to using a predictive players and others will keep enlarging. As a
maintenance program 2014 study by Mckinsey & Company indicates,
Across the board, industry players pin down “the performance gap between industry lead-
poor internal communication structures and ers and other companies widened, from 22
old-fashioned corporate culture as the reason percentage points in 2000 to around 40 per-
for these technologies to have lagged in centage points in 2012.” Performance bench-
application. The cost didn’t seem relevant marking now allows us to compare the bene-
enough for a manager to care for it at all. fits and downfalls of systems and procedures
However, once it became known that these alike. The costs of catastrophic events, as
technologies had a considerable physical- accidents like the Macondo disaster of 2010,
risk mitigation aspect, the attitudes slowly keep reminding us, make a bigger impression
started to change. “Communication between than a simple economic impact. Loss of life
technicians and management is always an issue and environmental contamination are unac-
in many organizations, and that is the case in ceptable consequences of the search for oil,
the application of these technologies as well,” but only through embracing a risk mitigation
Wheelhouse said. “The major obstacle to approach can these events be minimized. OG
optimization is the difficulties of communication
between the plant floor and the decision- João Marquez is a contributing writer to Oil &
making board. That will not change quickly. In Gas Engineering.

BIG DATA
Make better, strategic

decisions in less time
with Big Data
Advanced analytic solutions, including systems that mimic human decision-making, are
helping oil and gas companies adapt to a world of lower prices.
J
By Sidney Hill Jr. ust looking at the numbers—prices While the definition of “reasonable cost”
dropping as much as 70%, more may never again be the same as it was two
than 150,000 jobs lost, and count- years ago—when a barrel of oil was selling for
less small- and medium-sized opera- more than $100—some operators are seeing
tors forced out of business over the the potential for turning a profit as prices have
past two years—you might see a begun hovering in the $45- to $50-a-barrel
bleak future for the oil and gas industry. range. And some industry analysts have com-
But there’s one irrefutable fact overshadow- piled their own numbers that indicate oil and
ing any negative forecasts for this industry: gas companies are starting to view Big Data
the industrialized world simply cannot function and advanced analytics as essential tools for
without its products. That means there’s still ensuring future profitability, no matter where
money to be made producing oil and gas at a prices go.
reasonable cost. According to a report published by
Technavio, Global Big Data Market in the
Oil and Gas Sector 2016-2020, the market
IN DEpth: research firm sees the market for Big Data
pROBLEM: Companies wanting to adapt to a world of per- software and services growing at a compound
sistent low prices need to analyze a larger amount and wider annual rate of 30.67% for the five-year period
variety of data in a shorter amount of time. This fast data starting in 2015, reaching $5.41 billion in 2020.
analysis is necessary to make better decisions in a market
Big Data’s growth within the oil and
that exerts constant pressure to get more product off the
gas industry
ground faster and at a lower overall cost.
The Technavio report also states that Big
Data in the oil and gas industry will grow
SOLUtION: Big Data and advanced analytics solutions at a tremendous rate because of its many
provide the means for storing and organizing large volumes benefits, which include the detection of
of data from multiple sources and converting that data into a faulty equipment through sensors, better
form from which users can derive the intelligence necessary drilling and connections of new wells, and a
to make sound business decisions. predictable approach for the maintenance of
pipelines and other equipment. In addition, oil
and gas companies with Big Data solutions
ActION tO tAkE: Conduct research on Big Data technolo-
are more efficient in managing all sorts of
gies and vendors who serve the oil and gas industry. Market data, such as drilling logs, frack performance
research companies and consulting firms would be good data, and production rates, which helps in
places to start. optimizing well design and production.

BIG DATA
Many industry observers say oil and gas tors have combined to make those tasks even
producers initially were hesitant to adopt Big tougher. One of those factors is the rapid pace
Data—despite these very real benefits—until at which companies are now able to drill wells.
the steep, and now persistent, dip in prices “Companies used to drill one well at a time,
forced them to look for ways of operating more and it would take about 30 days,” says Karren.
efficiently. “Now, it’s become almost a manufacturing pro-
“We really did start seeing a shift in thinking cess. Drilling a well takes six or seven days, and
around the end of 2014,” said Charles Karren, you’re drilling multiple wells on the same pad.”
director of oil and gas transformation strategy With nearly the entire industry operating on
for Oracle, a Big Data technology supplier. “The this expedited timeline, there’s a constant race
simple reason is you can make mistakes when oil to get as much product out of each well as
is $110 a barrel, but not when its $40 a barrel.” quickly as possible. That has led to what Karren
If prices stabilize around $50 a barrel, Karren says, “an explosion” of sensors pulling data
believes companies can make realistic budgets, off those wells. “On any given well, especially
though they still will have little margin for error. in a deep water production site, you can have
“At this price level, any incremental gains in 30,000 sensors generating time-stamped data,”
efficiency are a plus,” he said, “shaving a few says Karren. The manner in which that data is
dollars in operating costs here and there can used also has changed.
make a real difference.”
Getting a 360-degree view of
Oil and gas companies are reaching operations with Big Data
for the cloud When sensors first started populating
As companies seek those incremental gains, oilfields, companies would view the data they
Karren sees them increasingly turning to two generated in real-time, use it to make any
types of technology: Big Data and cloud-based adjustments needed to keep production on
analytics applications. track, and then discard or simply forget about
Using cloud-based applications might appear the data. Now, with the constant pressure to
to be an atypical move for oil and gas com- pull product out of the ground faster and at a
panies, given their historical preference for lower cost, companies are holding on to that
developing their own proprietary technology data for more thorough analysis in hopes it can
platforms, largely out of a desire to protect data help in developing strategies for continuous
that might give competitors insight into their improvement.
exploration and production strategies. However, “They’re looking to integrate multiple data
Karren said information technology vendors’ sources,” said Karren, “to get a 360-degree
track record of keeping data secure is raising view of their operations.”
the industry’s comfort level with cloud-based The quest for that 360-degree view has
solutions. It also helps, particularly in the cur- companies adding new forms of technology
rent environment, that cloud-based solutions across the value chain. As a result, the digital
typically cost less to implement and maintain oilfield has evolved to become part of the
than solutions built to operate in-house. Industrial Internet of Things (IIoT). In addition
Big Data, however, is technology that is a to pulling data off sensors attached to produc-
more natural fit for an industry that has always tion equipment, oil and gas information tech-
revolved around analysis of large amounts of nology (IT) networks now include applications
complex information. that feed pictures of seismic and geologic
“Oil and gas could be considered the original conditions, sometimes in 3-D, to users on PCs
Big Data industry,” Karren said. “Historically, or mobile devices.
when drilling wells, you never saw hydrocarbon The need to add images and other forms of
until it came out of the ground. So, data analy- nontraditional data to their analysis is another
sis was necessary.” reason oil and gas companies are attracted to
While analyzing complex data has always the current generation of Big Data technology.
been an inherent part of finding and producing “What the new technology brings to the
oil and gas, in recent years, a number of fac- table is the ability to deal with multiple data

sources,” said Dave Womack, director of
chemicals and petroleum for IBM.
Those sources include data coming from
process automation equipment—such as time,
temperature, and motion readings—that can
be stored in conventional databases, as well
as information such as sounds, photos, and
video collected by newer sensor technologies.
The former type of data is referred to as struc-
tured data; the latter type—which is becoming
more prevalent in oil and gas operations—is
classified as unstructured data.
According to Womack, the current genera-
tion of Big Data technology can take both
types of data and format it so further intelli-
gence can be collected and analyzed.
Jim Vick, senior vice president of informa-
tion systems for Southwestern Energy, said a
360-degree view entails being able to track all
of the expenses and revenue throughout the
entire lifecycle of a well—the “Holy Grail” for poses. However, Karren is also quick to point Figure 1: Market research
oil and gas companies. out that the people using these systems are firm Technavio says the
Southwestern Energy believes it has come still making the actual business decisions. many benefits Big Data and
close to creating its own 360-degree view via “You always need that human component,” advanced analytics offer is
sparking rapid growth for
a business intelligence platform it created. The said Karren. “People are making decisions
these technologies in the oil
platform combines operational and financial based on the data being presented to them.”
and gas sector. Image cour-
data to populate 16 dashboards and more than IBM has been working to harness that
tesy: Technavio
200 interactive reports that are accessed regu- human element for corporations in various
larly by individuals across the business. industries, including oil and gas, through a
series of cognitive systems.
Using Big Data to make strategic Cognitive systems solve problems by learn-
business decisions ing how experts in a particular field would
One dashboard enables tracking of all aspects respond to a given set of circumstances. The
of land management, maintenance, and long-range goal is for these systems to be able
production; while another helps the company to “converse” with individuals in various pro-
make better decisions about drilling schedules. fessions to help them reach proper decisions
Doug Van Slambrouck, senior vice president faster.
of Fayetteville Shale at Southwestern Energy Womack said IBM has begun that journey
Company, said this platform lets Southwestern with several oil and gas companies, including
Energy accurately assess how it performed Woodside, the largest independent oil and gas
in the past as well as how it’s performing in company in Australia.
the present—and then use that information to Woodside has incorporated a cognitive sys-
make better informed decisions about what it tem into a cloud-based platform. The platform
should do in the future. is described as a “cognitive advisory service”
As an example, he said, the platform allows that Woodside’s engineering team taps into
for assessing the value of all of the company’s for help in finding quick resolutions to complex
leases and determining which ones should be problems.
drilled on first and which ones can be sold to The engineers trust the systems’ answers
another company at a profit. because they know its core base of knowledge
According to Karren, Southwestern Energy is built on decisions they or their peers have
is not the only oil and gas company using Big made in similar situations. The system devel-
Data and advanced analytics for strategic pur- oped that core knowledge by taking in more

BIG DATA
as pressure measurements, that were only

tangentially related to this condition and
thus not very accurate in predicting its actual
occurrence.
After studying the problem, Woodside’s
engineering team discovered there was a lot
of data available that could help make those
predictions more accurate, but the data was
so voluminous—and spread so far across the
business—that it could only be harnessed
through the use of Big Data and advanced
analytics technology.
Once the analytics platform was installed,
Woodside began using it not just to analyze
existing data, but also to collect and examine
newly created data in hopes of improving the
accuracy of its predictions. That has resulted
in establishment of data that grows by roughly
10 gigabytes per day.
What Woodside is doing with its platform
is referred to as “predictive analytics,” and it’s
generally considered the cutting-edge for Big
Data and advanced analytics in the oil and gas
industry.
Womack believes these systems will help
oil and gas companies successfully adapt to
a world of lower prices, as well as respond to
other challenges such as the lost expertise as
more people leave the industry either through
Figure 2: The use cases than 20 years’ worth of data that was stored attrition or retirement. Industry leaders believe
for Big Data and advanced across Woodside’s IT networks and analyzing Big Data platforms built around cognitive sys-
analytics span the entire oil actions that were taken based on that data. tems—with the ability to capture knowledge
and gas value chain. Image as experts retire—will have a prominent role
courtesy: Technavio
Meeting oil and gas challenges with in the industry’s future. OG
predictive analytics
Woodside began building this platform in Sidney Hill Jr. is a graduate from the Medill School
response to a recurring condition that had of Journalism at Northwestern University. He has
the potential to cause lengthy production been writing about the convergence of business
shutdowns. The condition was difficult to and technology for more than 20 years.
foresee because there were no
obvious data points that could
indicate its imminent occurrence.
Instead, engineers were relying
on traditional data points, such
Figure 3: Woodside, the largest indepen-

dent oil and gas company in Australia,
relies on an advanced analytics platform
that incorporates IBM’s Watson technol-
ogy to augment the knowledge of its
engineering staff, including those work-
ing in offshore control rooms. Image
courtesy: IBM

SENSORS
How to battle drift in

bonded foil strain
gauge-based sensors
Wide variety of uses, tolerance for the oil and gas industry.
C
By Will Bowden ombining high stability and Their ability to operate accurately under
HBM Inc. accuracy with robust mechani- heavy loads in harsh environments make
cal properties, bonded foil strain bonded foil strain gauges ideal for the oil
gauges have earned a dominant and gas industry. These devices play a criti-
role in sensor applications in the cal role in ensuring optimal operation and
oil and gas industry. As with any safety in high-stress applications including
sensor technology, however, environmental pump-off control and polished rod-end load
factors such as temperature and humidity cells on well pumpjacks (also known as
can affect these devices, introducing mea- reciprocating rod-lift pump systems) and
surement drift in applications that require deadline anchor load cells. Their robust
accurate, stable sensor performance. characteristics can also be used in high-
Through careful selection of sensors and pressure applications including hammer
associated materials, however, engineers union pressure transducers as well as liquid
can mitigate causes of drift in these devic- and gas pressure measurements on equip-
es and rely on them in diverse applications ment such as diesel engines, hydraulic
that depend on reliable measurement of power units (HPUs), and nitrogen pumping
load, torque, tension, and pressure. units.
Furthermore, foil strain gauges are
The characteristics of bonded foil unique in their ability to address the widest
strain gauges possible range of loads. Unlike other trans-
Bonded foil strain gauges take advantage ducer types, these devices can be easily
of the piezoresistive effect, where the scaled to provide force transducers in the
resistance of a conductor changes in MN range, torque transducers in the mNm
response to mechanical strain. In these range, and ultra-high pressure transducers
devices, metallic foil is arranged in a grid in the GPa/KPSI range. This wide variety of
pattern and bonded to a thin carrier in a sensors allows engineers to apply a sen-
manner designed to enhance the effect sor solution appropriate to the stresses
of mechanical deformation in changing observed in the application and to meet
the resistance of the foil conductor. When requirements for extended service lifetime.
the device is attached to an object, the
foil resistance changes in proportion to Addressing measurement drift
the magnitude of the forces acting on for strain gauges
that object. By carefully monitoring that With their exceptional long-term stability,
change in resistance, sensor systems these devices are ideal for use in extended
based on these devices can provide operations in harsh environments found
accurate measurement of forces acting on in the oil and gas industry. Nevertheless,
equipment and structures. without careful attention to device selection

SENSORS
and use, excessive ambient temperatures sensor system measurements will drift
Engineers can configure can impact the characteristics of these accordingly. This effect can be even more
bonded foil strain gauges devices and result in measurement drift, pronounced in situations where the object
designed with two (left) or particularly in oil and gas applications where under test and the strain gauge respond
four (right) grids in half- or ambient temperatures can reach 400° to opposite to variation in ambient tempera-
full-bridge configurations
500° F. ture—that is, when the thermal expansion
able to compensate for
Temperature-dependent drift in these coefficients of the object and gauge are
temperature-dependent
devices can arise from multiple sources significantly different.
effects. All images courtesy:
HBM Inc
including the nature of the material itself. Manufacturers address this source of
Resistance changes as temperature chang- drift by providing strain gauges optimized
es according to the temperature coefficient for different target materials. By using dif-
of resistance (α) of a material. Accordingly, ferent alloys, manufacturers can match the
changes in ambient temperature can direct- temperature response of the strain gauge
ly impact the resistivity of the conductor with that of the target material. Using this
material. Still, few applications are likely approach, manufacturers offer devices
to experience the kind of rapid, massive designed for materials such as ferritic steel
swings in ambient temperature that would with a thermal expansion coefficient of
result in significant drift strictly due to this 10.8 x 10 -6/K or aluminum at 23 x 10-6/K. In
effect. fact, engineers can find families of these
In most applications, however, changes “self-compensated” strain gauges that
in ambient temperature can cause thermal offer identical geometries and resistance
expansion and contraction in the object but include devices specifically designed to
under test—and in the strain gauge itself. match different target materials.
Because the resistance of the strain gauge Use of unsuitable adhesives and improp-
foil grid will change in response to these er bonding of strain gauges to target
thermally induced mechanical changes, objects can exacerbate this problem. In the

oil and gas industry, the temperature
for example, using
adhesives rated
for a lower tem-
“ Manufacturers
address this source
coefficient of resis-
tance of a lead-wire
conductor such
perature can lead as copper is typi-
to drift and even of drift by providing cally much higher
eventual failure if than that of strain
the bond itself fails. strain gauges gauges, the impact
Furthermore, use of lead-wire resis-
of adhesives with a optimized for different tance changes can
”
thermal expansion introduce significant
coefficient that is target materials. errors despite their
not well matched to low resistance.
the strain gauge and Other factors
target object can such as mechanical
add to thermal-induced strain and associ- damage, humidity, or corrosion can also
ated measurement drift. introduce drift. These environmental effects
are a constant threat in the oil industry in
Drift compensation solutions particular, where high-pressure wash down
Use of self-compensated strain gauges and is used to clean equipment. Engineers can
proper attachment techniques help minimize mitigate these problems by encapsulating
temperature-dependent effects but do not sensors with specialized materials including
entirely eliminate them. To further reduce lacquers, putties, and epoxies. For applica-
their effects, sensor designers can use tions operating in particularly harsh envi-
strain gauges built with two or four grids ronments, hermetically sealed enclosures
on a single device. Designed for use in may be required to protect sensitive strain
half- or full-bridge configurations, the grids gauges and associated electronics.
on these devices are mounted on the same Along with using of full- and half-bridge
material and experience the same changes sensors, careful selection of strain gauges,
in temperature. Because temperature- bonding adhesives, and encapsulation
dependent changes in resistance are materials can significantly minimize drift.
identical across all grids on the device, the For applications that are unable to tolerate
ratio of their resistance does not change even the slightest drift, engineers can use
with changes in ambient temperature, and computational methods to further compen-
the bridge yields a temperature-independent sate for temperature effects.
result. Bonded foil strain gauges offer a unique
Besides ambient temperature, other fac- combination of range, accuracy, and stabil-
tors can cause drift in bonded foil strain ity required in harsh environments com-
gauges. This type of resistance-based mon in the oil and gas industry. As with
transducer requires application of an exter- all transducers, these devices can exhibit
nal current across the device to enable temperature-dependent effects that result
measurement of a corresponding output in measurement drift. By careful device
voltage. By applying a higher excitation cur- selection and attachment to the object
rent, engineers can create higher output under test, however, engineers can reduce
voltages for applications that require great- drift—and effectively eliminate it with the
er measurement sensitivity and a higher use of compensation techniques to deliver
signal to noise ratio. At higher excitation highly accurate, reliable measurement of
current, however, self-heating effects can load, torque, tension, and pressure in oil
arise within the device and create an addi- and gas applications. OG
tional source of measurement drift.
Changes in the resistance of lead wires Will Bowden covers both the energy and robotics
can also result in additional drift. Because industries for HBM Inc.

INCIDENT RESPONSE
Preparing for a cyber attack

An incident response (IR) plan is a vital component of cybersecurity strategy.
W
By Amolak Gosal hat was once an after- greatest challenge is to establish clear and
GE Oil & Gas thought for oil and gas informative guidelines for people and pro-
organizations, cybersecu- cesses during a cyber attack.
rity is now centerstage. Despite having an incident response (IR)
Cybersecurity impacts plan in place, very few oil and gas organiza-
every facet of oil and gas tions run through full simulation exercises
operations, which are now more digital and of this plan. Simulated exercises can reveal
connected than ever. As such, chief informa- incorrect assumptions made during the IR
tion security officers (CISO) understand that process and also alert security leaders to
attacks are inevitable, and what counts today gaping holes where there might be missing
is how organizations respond to threats and contacts or protocols that are critical for the
their overall level of cyber-readiness. IR plan to be successful. Oil and gas organi-
Cybersecurity has similar traits to physical zations must demonstrate that their IR plans
security. Many people have an alarm sys- are truly effective in the event of a cyber
tem in their house, not to prevent a break-in attack.
from occurring, but to immediately alert the Running through real-life scenarios as part
house’s occupants, and authorities, when of an exercise can help companies deter-
one happens. Further, while everything in mine what type of operational flexibility and
a home may have value, the most valuable resiliency are in place and what steps need
items are frequently stored in a safe for to be taken to improve them. These steps
added protection. include:
Implementing a cyber • Define roles and responsibilities.

attack response plan Following a cyber attack on critical infra-
Organizations are beginning to think about structure, a seemingly well-structured
cybersecurity in the same way. As threats IR plan on paper can turn into chaotic
become more sophisticated, companies confusion over ownership and actions
must acknowledge that attacks can’t that need to be taken. One of the big-
necessarily be prevented, but fast response gest differentiators between a success-
time and a secure environment for the most ful IR plan and a response plan that fails
critical data and assets are key to building a is the identification of specific roles and
strong cybersecurity position. responsibilities. As easy as it sounds,
According to the SANS Institute’s assess- in the oil and gas industry, the organiza-
ment of ICS security in 2016, 17% more tional complexity in upstream operations
organizations placed blame on hackers, and is massive particularly when an incident
attributions to organized crime were up 11% impacts IT, field teams, multiple business
compared to 2015. Cybersecurity attacks on units, global regions, and suppliers. As a
energy organizations are more targeted than result, it’s critical for these organizations
other industries, causing costly damage to to break down any assumptions about
operational technology (OT) environments. IR and assign and confirm ownership to
With an increasing number of connected secure a successful IR plan.
devices and two very unique operating envi-
ronments–IT and OT–the oil and gas sector’s Continued on page 32

Oil and gas organizations must demon-
strate their plans are truly effective in
mitigating risks around cyber incidents.
Image courtesy: GE Oil & Gas

INCIDENT RESPONSE
Continued from page 30 and compressor controls. These assets

often have a life span of a decade or
• Communicate with management. longer, require continuous operation,
Additionally, keeping executives involved and are more vulnerable than other
and managing expectations are an machines that receive regular updates
important part of an IR plan. With cyber and patches during frequent mainte-
incidents, there is an expectation of nance shutdowns. While federal laws
communicating within a certain number are being passed that require organiza-
of hours and notifying stakeholders. The tions to implement reasonable security
team leader of the IR plan should quickly safeguards that take into account IR
alert the necessary parties and inform plans and response time after incidents,
them of immediate next steps. Time is the oil and gas industry could still ben-
of the essence, and a simulated exercise efit from looking to other industries, like
ensures the communication plan is clear aviation, that have strict safety guide-
and accurate, and the necessary contact lines in place.
information is in place to bring aware-
ness to all stakeholders. • Operational flexibility and resiliency.
Cyber attacks are part of today’s con-
nected environment, so IR is not as
much about the attack but rather cyber
“Asindustry,
resiliency. Running through exercises in
easy as it sounds, in the oil and gas preparation for cyber incidents will help
companies determine what type of oper-
the organizational complexity ational flexibility and resiliency they have
and what steps need to be taken to
in upstream is massive, particularly improve. In addition, service level agree-
when an incident impacts IT, field teams, ments (SLA) can help with the IR pro-
cess as they often include a procedure
multiple business units, global regions for reporting problems, including who
can be contacted, how problems will be
and suppliers. As a result, it’s critical for reported, procedure for escalation, and
what other steps are taken to resolve
these organizations to break down any the problem efficiently. IR times vary
according to the priority and severity
assumptions about IR, and both assign and level assigned to the incident within the
confirm ownership as part of this process.
” SLA and can help communicate a clear
picture of what is required and how this
plan will be executed efficiently.
• Cybersecurity policies and Oil and gas leaders and investors under-
industry standards. stand that the cost of capital and the ability
There are different standards and to complete critical projects are conditional
requirements within each industry. For on their ability to withstand a cyber attack
example, the aviation industry is one and minimize the impact of a breach.
of the most highly regulated industries Developing a clear, detailed IR plan and
and has been influential in shaping ideas simulating an exercise will help organiza-
about what the security standards and tions raise awareness about cybersecurity
processes governing computers and threats, best practices, and create a resilient
networks can and should look like. Many business culture. OG
companies still struggle to define best
practices when it comes to security Amolak Gosal is chief information security officer at
that protects assets such as gas turbine GE Oil & Gas.

INTEGRATED OPERATIONS
Moving at the
speed of data
Tony Edwards of StepChange Global discusses how oil and gas operators are managing
the use of data in operations, and how field workers and the control room are learning to
trust each other more in this new digital age.
C
apturing data in the oilfield is and we’ll dip more into that, but why
just one challenge for the age don’t we talk about how long integrated
of the Digital Oilfield. Another operations have been going on. Give us
significant issue is the culture a brief history.
change needed to bring all parts
of the operation together to Edwards: There are certain elements
deliver on the potential value of all that of integrated operations, like remote con-
data. In the second of a two-part series, trol, that have been common throughout
Oil & Gas Engineering spoke with Tony a considerable period of time. There were
Edwards, CEO of StepChange Global, a some people looking into using drilling
U.K.-based digital oilfield advisory and con- data, certainly in the mid- to late 1990s
sultancy company focused on designing and I was involved in a virtual teamwork
and integrating operation services, about project inside BP in the mid-90s that was
the challenges in true integration of oilfield looking at using desktop video compen-
operations from a technology and a human sate. But really integrated operations in
perspective. Here are edited transcripts of digital oil field, as we recognize it today,
that conversation: really didn’t start going until around the
2002-2003 time period.
OGE: In the last issue, we talked a lot
about some of the technology enablers, It was kicked off by a few companies
we talked about some the cultural things that had access to some high bandwidth
“ You know, what a foreman has to do every

morning when he gets in? He has to open
every spreadsheet and look at the data and
see if a well is okay or not. If you’ve got a lot
of wells, that can take hours. Now what we’re
doing is automating that … The engineers only
need to work on the wells that are trending in
the wrong direction. And you can do that with
almost any sort of data.
”
“ Typically in land-
based operations,
operators might see
a well or a piece of
equipment every
day, or certainly
every week. And
you get to the
point where you
use the data and
information
remotely to say,
‘We’re OK about
only going there
once a month or
when we need to.’
”
communications. There were a couple of technology, and also looking at alternative
operations in the Norwegian continental completion geometries—gravitated wells,
shelf where there were some fiber optics safe wells, and other things.
being laid between across the North Sea
between Norway and the UK. At the time, Once people in essential teams started
the technology required some repeater seeing there was an advantage, these
stations. So these telecoms companies global programs began to spring out which
went to a couple of the operators there were used to coordinate and take the best
and said, “We’d like to put repeater sta- practice of learning and try it, encourage,
tions on your platforms and we’ll give you and roll out this new way of working to
10 megabytes of bandwidth,” which in other assets across the company.
around 2002 and 2003 was an enormous
amount of bandwidth to get back. Shell, BP, and Chevron are still rolling it
out to assets, because whether you’ve got
Once you got that bandwidth, you had a company with a portfolio of operations
the opportunity to bring the data from the which may be 30, 40, or even 50 opera-
offshore platforms, and that’s when some tional sites, you know that takes some
of the key pioneers started thinking about time, and within that portfolio of opera-
this and looking at this way of working. tions you’ve got some early adopters and
And so a number of companies kicked off you’ve got some people who want to jump
their digital oil field or integrated opera- on later on.
tions global programs around that time
frame. The early pioneers were looking Very early on, everybody was literally
at down hole data and down hole sensor making it up as they went along, and cer-

tainly there was an awful lot of collabora- The technology’s got to be good and it’s
tion between the big companies that was got to work well. And you can have it in
quite unusual. So we had regular meetings such a way that it’s now more than three
with Statoil and Chevron and Shell in the clicks of a mouse to get to any data, but
early days. Of course, once everybody just because you got that doesn’t mean to
worked out there might be competitive say you get the value. But when we did
advantage in this, well you know the shut- the first Intelligent Energy conference in
ters came back down really quickly a few Amsterdam in 2006, what was interesting
years later. But, when you were doing this there was there was a number of sessions
for the first time, or the second time, or just on people turning to process change
the third time, where did you go to learn and that’s been a common thread ever
how to do this? since. You can buy all of the technology
and get all of the technology, but the tech-
What you still see to a certain extent nical bit is getting people to use it.
in places like Norway is that the oil com-
munity between Statoil, Total, Conoco- OGE: How are these teams formed
Phillips, and BP all know each other and that oversee the integration?
they’re all on each other’s doorsteps and
actually they’ve learned a lot, almost as Edwards: You can have production
much off each other as they have off their engineers, and you can have facilities engi-
own internal organizations elsewhere in neers, and you can have electrical engi-
the globe. But of course, once it became neers, or automation engineers. And you
evident there was potentially intellectual can think of it in terms of a functional or
property or certainly knowledge and know- discipline view of the world. What we see
how and expertise in doing this, certainly, is that if you think of it in what you might
the normal kind of oil and gas behavior term a process view, what you see there
kicked in and people tended to rely on is to optimize all of your gas and oil from
their internal programs once they got to one to the other is inherently multi-
point planning. discipline. It needs reservoir civil engi-
neers, it needs well engineers, it needs
OGE: They kept their cards close to production engineers, it needs operations,
their chest? facilities, and pipeline personnel.
Edwards: Yes. And what everybody What we’re going to do is allow these
did realize pretty early on was that it was multi-disciplinary teams, which are looking
not about technology; it’s about changing at their own data, but they’re located in
the way you work. For people very early a room supporting how do you want opti-
on, there was kind of a ‘if we build it, they mize delivery of maintenance or produc-
will come’ kind of approach. So we built tion, or inspection. It’s done from a multi-
a lot of IT systems, and we built some discipline point of view inside an asset. At
rooms, and of course they didn’t come the end of the day, an asset team for an
along at all; they just carried on the old operational offshore operational platform,
way. So then we realized that this really for instance, is looking at his responsibility
shouldn’t really regarded as a technology of running that asset in the best possible
project at all; it should be regarded as way.
transformation program which is technol-
ogy enabled. Technology enables you in a If you’ve got real-time data and infor-
different way, but actually, the hard work mation, it’s just actually just like having
and hard yards is in the people, process, people walking around the building. The
and organizational change. And I think idea is to put all of the people in this col-
that’s still true today, and I think that’s laborative environment, which in essence
really changed. is a meeting group, and connect them

there permanently all of the time with all Edwards: There are two or three com-
of their data and information. The kind of mon types of things that you do. One is
success you get from them having access production optimization. By having the live
to that data and information and the is dif- data and information you can optimize the
ferent than if you have a functional orga- volume from one end of the process to
nization. the other. We would see operations do an
optimization loop once a day. Now, they’re
OGE: So you’ve kind of got this real- not doing it once a day; they’re doing it
time view of the data. But also you as needed. And if its needed is four times
have some data that can be looked at a day, they do it four times a day. If it’s
for historical purposes. once a week, they do it once a week. By
having the ability to do it more often, and
Edwards: Yeah, it’s spanning data and indeed with higher quality because you’ve
it’s real-time data. When you get more got the live data, you get production.
advanced in this, you can put alerts in
your data system and your control system The second area would be around the
because there’s a difference between condition of your facility. Instead of having
alarms and alerts. Alarms are a proper a pump fail or a piece equipment fail and
controlling function—you obviously have not be able to see it, now you can see
a high-level trip. Alerts don’t go back into a trend on that piece of equipment that
the control system, but it does alert an says this pump is not looking very well.
engineer that something is not quite right It looks like it’s going to fail but we’ve
or something’s trending in the wrong way. seen it early enough that we can do it in
And this is where you get to management a planned way. We think the pump can
by exception. get to a point where we can shut it down
in a planned way rather than not finding
The engineers have the data and infor- out about it until it actually trips. So in
mation. And then they have to start essence you’re buying time, and what
observing it, and trending it, and then that does is it brings you availability in up
they start putting their own alerts in place time. So you’re able to keep your plant
to keep, and then they start building up and running, your wells up and run-
scripts to have this management process ning, for an availability increase by having
exception approach. the data and information and recognizing
when issues are coming your way.
You know, what does a foreman has to
do every morning when he gets in? He OGE: Let’s talk about the people and
has to open every spreadsheet and look process sides of the business. You’ve
at the data and see if a well is okay or got the people in the field and the
not. If you’ve got a lot of wells, that can people in the control room, and there
take hours. Now what we’re doing is auto- usually are trust issues there. What are
mating that, putting that on a screen on some successful strategies that you’ve
a wall, we’re actually saying, actually this seen for getting those two very differ-
well is within it’s limits. You might have a ent teams to trust each other?
traffic light that says yes it’s green, no it’s
trending up toward being not OK, or it’s Edwards: Well, there are a number of
red. Therefore the engineers only need to things that we’ve done pretty routinely.
work on the wells that are trending in the Typically offshore operations are land
wrong direction. And you can do that with based. They’re left to their own devices.
almost any sort of data. They inherently say, “We stand alone and
we can fix anything kind of thing.” So this
OGE: Are there specific areas that are is not about command and control and
very common in that regard? necessarily telling people what to do in

the field. This about supporting the people OGE: So you’re right back to spending
on the field and saying we’re here to help the money that you’re trying to save.
you. If you pitch it in that way, it’s much
easier and much more acceptable. Edwards: Exactly. You’ve not only have
you spent the money on the automation
We run a series of workshops to say, and you’ve not saved the money on the
“How is this going to change?” We transi- output. So the higher-ups say, “Well, why
tion the way that process is run collab- did we spend all of this extra money on
oratively and remotely. There are some the automation when we got no benefit
very simple things, like if the opportunity out of it?” And that’s a very valid question.
to rotate field people through the office,
so that we say, “OK Joe, instead of going OGE: Absolutely. So somehow you’ve
straight out to the field, if there’s cover got to convince these guys to believe
for you, what we’d like you to do is come the technology, to be OK with not visit-
in the office this week and sit with the ing. I mean these guys are mechani-
support engineers.” cal and engineers and a lot of them
just love doing it. You’ve got somehow
OGE: It’s about giving these teams a convince them that that’s OK, through
common vision. either that common vision or through
just them understanding how the sys-
Edwards: Having a common vision tem is supposed to work.
and a common organizational structure
that says, “Here’s what we are trying to Edwards: That’s right. And of course,
get to and where’s how are we trying to many times there are some real issues.
do that.” Typically in land-based opera- You know, there are some real issues. And
tions, operators might see a well or a then you’ve got to try and find a technical
piece of equipment every day, or certainly solution to those real issues, if you see
every week. And you get to the point what I mean. So, you know, you’ve got to
where you use the data and information take them on that journey and you’ve got
remotely to say, “We’re OK about only to take them with you on this.
going there once a month or when we
need to.” OGE: With the pace of this new pro-
cess, do you see hesitancy on the part
We’ve got the data and information; we of the teams to jump up into this new
can do the analysis. We can tell what’s speed? Do you see any hesitancy on the
in good condition, what’s not in good part of people charged with doing this?
condition, we ultimately can prioritize
our resources in a certain way. But that Edwards: Yeah, that’s a really inter-
means that we’ve got to get the opera- esting question. We see this is very
tors comfortable to a point of saying, “I’m organizationally and culturally dependent.
happy and comfortable not to go there.” What we mean by that is that there are
certain regional and national cultures that
We were with one client, and we asked, are resistant to this, and there are other
“Why do you go to this well pump?” And cultures that are more accepting of this.
they said, “We’ve got to check the corro- Generally the older the operation, the lon-
sion indicator pump is running.” And we ger it’s been online, and especially if it’s
said, “Well, can’t you see it’s running on been told it’s the best in the world contin-
the real-time data and information sys- uously the last 20 years, they’re the ones
tem?” They said, “Yeah, but sometimes that tend to be the most resistant.
the data is wrong. We don’t trust it.” But
they still want to go and see it. One of those surprising things that we
find out with this is that if you put smart

“ One of those surprising

things that we find out
with this is that if you
put smart people in a
room with the data and
information and the
ability to collaborate
and the ability to
understand what’s going
on in the operation,
things change quite
rapidly. And as a result, processes evolve and change quite rapidly.
So the cultures that do this well, are the ones who don’t see this as a one-off
shot; they see this as a continuous improvement process.
”
people in a room with the data and infor- do some IT, and do some change. But
mation and the ability to collaborate and once it’s fully embedded, it continu-
the ability to understand what’s going on ously improves, or it should continuously
in the operation, things change quite rap- improve and be self-sustaining. Where it
idly. And as a result, processes evolve and doesn’t go well is it’s seen as a one-off
change quite rapidly. shot and a project. And then of course,
you know, the leader did it gets a pat
So the cultures that do this well, are the on the back, gets moved on to bigger
ones who don’t see this as a one-off shot; and better things, some of the team get
they see this as a continuous improve- moved on to bigger and better things,
ment process. They’re always challenging and then three or four years later you got
themselves and what they’re doing, so a bunch of people sat in a room thinking
their processes and their way of doing “What am I doing here?”
things is not particularly static. And it
might be static for a year or 18 months or The one thing I would say is it is
two years, but they’re always looking for important is that you do it, whatever way
the next improvement. you do it, you do it that is aligned with
your culture to an extent. You may want
It starts out as a project because to change your culture, but you do it
you’ve got to do something, you got aligned to your culture. It’s ver y difficult
to build something, you got to build a to impose something on Lean to a cul-
room and that data and information and ture that is opposite to that. OG

INDUSTRY INSIGHT
Data mining and analytics

for performance optimization
Exploring data analysis techniques for easy, cost-effective solutions.
T
By Bert Baeck he oil and gas industry is under huge curve analysis (DCA) is a common graphical
TrendMiner pressure to alleviate cost burdens. procedure used for understanding declining
Crude oil prices have been low and production rates and forecasting performance.
while the market may be stabilizing, Over time, well production rates typically
this is the perfect time for these decrease from a loss of reservoir pressure or
companies to streamline operations changing volumes of the produced fluids. The
to stay competitive. DCA concept involves fitting a line through the
Drilling operations are one of the best performance history then assuming this same
areas for improvement. IDC Energy Insights, trend will continue in future forms.
a market research provider, reported that While helpful, these curve analysis trends
while drilling costs represent nearly half can be made more precisely through the use
of well expenditures, only 42% of drilling of analytics.
operations’ time is actually spent drilling. The For example, data analysis can quickly
majority of time is spent on problems, rig identify when flow profiles deviate from the
movement, defects, and waiting periods. historical or type-curves. This information can
alert an operator of a potential problem.
Improving production with data
analytics Managing assets by using data
One of the ways to improve production is by analytics
using data analytics that help: Data analytics can improve a company’s
• Enable operators to correlate real-time bottom line by prolonging equipment life,
downhole drilling data with production increasing asset availability, and extending
data of nearby wells to optimize drilling maintenance windows.
strategy. According to industry experts, ARC Advisory Group reported that of all
this practice can help oil and gas compa- asset failures that occur, only 18% of them
nies increase production by between 6 show any kind of perceptible pattern due
and 8%. to any increased use or age. By identifying
• Avoid potential problems by identifying changes in system behavior well before tra-
deviations from signature profiles; for ditional operational alarms do, analytics soft-
example, ensuring the downhole equip- ware gives decision-makers time to analyze
ment and reservoir are protected when the necessary data and take corrective action.
bringing wells online to avoid costly mis- For example, data mining and analytics
takes. can make a big difference in pressure testing
• Predict downhole tool failures and imme- blow-out preventers (BOPs). According to the
diately determine which parameters may Code of Federal Regulations (CFR), pressure
need adjusting by analyzing real-time data tests must be conducted every two weeks for
relative to past performance or events. every drilling operation worldwide to ensure
BOPs can withhold a well control event.
Identifying problems early Analytics software can track the actual
with data analysis component performance data and look at pro-
Wells have a type-curve that profiles expected files to improve BOP system uptime, reduce
production over their lifetime. Decline unnecessary maintenance, and help deliver

INDUSTRY INSIGHT
better cost forecasting. It can provide informa- analysis in real-time or immediately after as
tion to onshore engineers for better decision- an evaluation technique.
making, thus reducing downtime associated
with accessing historical BOP data while opti- Meeting oil and gas industry
mizing maintenance and reducing unneces- challenges with data analysis
sary parts replacements. Today’s oil and gas companies face many
challenges. In order to be successful,
Data mining techniques they must ensure all areas of operations
One of the barriers to identifying and are performing optimally. It is essential to
monitoring various interconnected elements have the right information at all levels of
in production cycles is cost. Having data the organization in order to make the best
scientists build models to determine how decisions.
minor changes to certain areas of operations • At the production unit level, operators
can yield big productivity gains, is expensive need to know how equipment is per-
and time consuming. With low oil prices forming in real-time. This is where ana-
and tight profit margins, many oil and gas lytics can be used to improve uptime,
companies believe they cannot afford the efficiency, and throughput.
investment to implement traditional analytics • At the facilities level, managers must be
solutions. able to make educated decisions about
There is a new method to uncovering areas procurement, production scheduling,
for improvement. This approach is based on and shipping without having to spend a
pattern recognition within the enormous pool lot of time and money on modeling and
of data. Extremely sophisticated software data scientists.
can read trends to determine where similar • At the enterprise level, executives need
patterns have occurred in the past. Moreover, real-time, accurate data to relate produc-
this software can be installed and deployed tion to the larger business context and
in as little as 2 hours with just another couple understand the impact of fluctuating
of hours needed for training operators and costs, changing market conditions, and
other authorized users. asset performance.
Analytics software can uncover hidden pat-
terns in data to find an optimal sequence, Although crude oil prices may have
which is repeatable. It can identify and send reached a bottom, oil and gas producers are
alerts on any deviations (in profile and dura- still under considerable pressure to optimize
tion) in both real time and also in post-run all areas of production. In the past, expen-
analysis. sive data analytics solutions could be used
For instance, these data mining techniques to uncover hidden areas of improvement,
can be applied to a comprehensive data set but these solutions required data scientists
to identify potential correlations between and modeling to work effectively.
drilling activity and incremental rate of pen- Now oil and gas companies have a quick,
etration (ROP). It can help calculate drilling easy, and affordable solution for optimizing
performance in real-time, under specific con- performance through pattern-recognition
ditions and constraints. software that can quickly sift through billions
Data mining techniques can also greatly of time series data points to find instances
help with cementing operations. Cementing where events have occurred. By using this
casing strings into drilled holes is a criti- new approach to data analytics, oil and gas
cal operation in well construction. History companies gain valuable insight into opera-
indicates that many of the cement jobs per- tions and systems behavior—often in just a
formed in the industry did not achieve quality few hours after installation—to discover new
metrics; however the work is usually deemed areas for improvement. OG
acceptable because there was no means
to analyze the quality until now. Today’s Bert Baeck is CEO of TrendMiner, a research com-
advanced software can perform that level of pany for data mining in the process industry.

THE AUTOMATION PYRAMID - FIFTH IN A SERIES
The framework for process

intelligence and improvement
How to bridge the gap between the shop floor and the top floor by integrating process
control systems with enterprise resource planning (ERP) and other business systems.
P
By Alex Marcy, PE art 4 of the series discussed pow- specifications defined in the ERP system
Corso Systems erful data analysis tools useful combined with statistical process control
to understand how a process is (SPC) to determine optimal process
operating over time and to provide setpoints each product type. This results in
actionable information to operators, a well-tested set of operating parameters
maintenance personnel, and pro- that can be used to generate a recipe of
cess engineers. It’s important to know how sorts for each product. This can eliminate
process information can be integrated with quality variances due to operators on one
business operations systems to provide a shift using different setpoints than another
complete picture of a facility or company. shift and reduce changeover times when
The end result saves time and resources by producing different products on the same
automating the flow of information. equipment.
Another common application of ERP
Planning the process control system system integration is to better understand
The first step companies usually take when how customer orders, shipping/receiving of
integrating data from their organization is raw materials, and finished products impact
to use information from production. For example, when a customer
the enterprise resource order comes in, customer service can log
planning (ERP) system into the system that communicates with
to more accurately, the production facility, instead of spend-
and automatically, ing time to track down the production
plan production; manager, to discuss the upcoming
for example, schedule, to find out when the
using order can be shipped, to enter the
product requirements, and get an esti-
quality mated completion date based
on real-time information in
seconds.
Data flow from the

process control
system to the
ERP system
The flow of
information can
also go from the
process control
system to the
ERP system.

THE AUTOMATION PYRAMID - FIFTH IN A SERIES
For example, integrating a computerized

maintenance management system with
scheduling makes it easy to immediately
alert customer service when a production
“ The first step companies
usually take when
run will be impacted by downtime. If there
will be delays in shipping, the customer integrating data from
can be made aware of any issues as soon
as they arise. This approach can also their organization is to
reduce costs associated with spare parts.
use information from
As maintenance uses parts, the inventory
system can be updated in real-time. the enterprise resource
Purchasing can be alerted when inventory
is running low, and replacements can be planning (ERP) system
ordered before their absence might impact
production. to more accurately,
Data from quality control systems can be
and automatically, plan
”
easily populated in the ERP system mod-
ules used to generate shipping documents production.
and bills of lading. Instead of tracking
down paperwork or logging into a different
system to manually copy information over
to shipping, this can be done automatically, information is stored to understand who
again saving time and reducing exposure is onsite, where they are, and when they
to data entry errors. are there. Integration location beacons
Other systems that can push information provide better resolution about this infor-
from the process up the pyramid are things mation, showing when people are near
like process change management systems beacons at a plant. Pushing this data from
to track process changes and their impact the business side to the control room, with
on production, as well as things like calcu- a screen on the operator interface to the
lating real-time production costs per unit plant showing the location of operators
based on labor, raw materials, and utility throughout the plant, makes it easier to
resource usage. manage and track people down in case of
an emergency. This approach can even be
Improving safety measures with IoT used for things like bringing security cam-
With the oncoming wave of the Internet of eras up on the operator interface based on
Things (IoT), the capability for integrating where people are currently working. There
things like location tracking beacons can are potentially limitless possibilities by inte-
also be included in these process control grating different systems and new technol-
and business ogy to help improve safety.
system There are many ways integrating sys-
NExT pART: integrations.
One example
tems across an organization can be used to
understand and optimize operations across
to improve the board. While the number of possibili-
A recap of the series safety, espe- ties can be overwhelming, understanding
and the next steps cially useful what systems provide the most value to an
in large facili- organization and leveraging those systems
to start moving to ties, is to tie a in conjunction with one another is a good
security system place to start. OG
the next level of in where staff
the automation pyramid. members swipe
a badge to enter
Alex Marcy, is the co-owner and Ppesident of
Corso Systems, a system integration firm based in
a building. This Chicago.

NEW PRODUCTS
Generators
The G625 and G1100 mobile generators provide backup power for larger,
industrial applications. Both models are equipped with load sharing and
paralleling, allowing generators to be easily scaled up to meet higher
power demands. These industrial grade generators feature a deep sea
controller and motorized circuit breaker that allows load sharing/parallel-
ing operation. The connections provide for synchronized communication
between generators.
Wacker Neuson
www.wackerneuson.com
Input #200 at www.controleng.com/information
Mass flow controller

The MCRH mass flow controller has a high top flow rate suitable to a wider range
of applications. It can accommodate flow rates of up to 5000 slpm, without com-
promising speed or precision of gas control. The highly stable controller manages
industrial processes with more chaotic upstream fluctuations, such as control of
industrial combustion gases or mass flow into food and packaging processes. This
new design accommodates the higher flow rates, with a low pressure drop of
14.1 psig at full scale. A dual valve design enables a fast 100 millisecond control
response time without significantly raising instrument power requirements.
Alicat Scientific
www.alicat.com
Perforation, wash, and cement systems

The Stronghold family of perforating, washing, and cementing
systems are designed to deliver faster, safer, and more economi-
cal solutions
for operators
worldwide. The
Stronghold sys-
tems consist of:
Barricade, which
perforates, wash-
es, and cements
Sucker rod couplings the annulus,
The ToughMet sucker rod couplings can significantly creating a rock-
minimize the frequency of workovers associated with to-rock barrier
conventional couplings. The couplings resist mechanical in just one trip;
wear, thread damage, corrosion, and erosion. They are Defender, a bar-
nongalling so they prevent tubing and coupling damage rier test system,
caused by coupling-tubing contact in deviated wells. which enables operators to perforate and test annular barrier; and
The couplings are made of a new ToughMet temper, Rampart, a cupless system that perforates, cleans, and cements
called TS 95, which is the strongest, most fatigue-resis- the annulus, creating a rock-to-rock barrier in just one trip.
tant coupling material available. Archer
Materion www.archerwell.com
www.materion.com Input #203 at www.controleng.com/information

NEW PRODUCTS
Clutch brakes
The Posidyne long-coupled, C-Face clutch brakes are an
excellent option for high cycle (50 to 300 CPM) applications
because they eliminate the damage to keyways and motor
shafts that commonly occur. When indexing with a clutch
brake, each clutch engagement transfers a torque spike to the
connection between the motor shaft and the input shaft of the
clutch brake. High cycle applications can cause continuous,
severe, hammering on the shaft connection of the motor to
the clutch brake. The Posidyne clutch brakes feature oil shear
technology that allow rapid and precise stopping, starting,
reversing, speed change, and positioning—all without adjust-
ment and virtually no maintenance. They are ideal for applica-
tions with frequent start/stop cycles. These unique motion
control devices allow higher cycle rates (as high as 300 CPM)
and increased production rates, all while reducing downtime.
Line break detection Force Control Industries
The electronic line break (ELB) detection system for oil and www.forcecontrol.com
gas pipelines continuously monitors pressure dynamics to
provide early detection of pipeline breaks and has the abil-
ity to automatically initiate valve actuator movement to an
emergency position. Pipeline pressure can be monitored both
upstream and downstream with actuator control based upon
user-defined rate-of-drop and rate-of-rise as well as high- and
low-pressure limits. The ELB system is compact, environmen-
tally sealed, and has an explosion-proof housing that can be
mounted either on the actuator or remotely.
Rotork
www.rotork.com
ADVERTISERS’ INDEX
COMPANY PAGE NO. RSN WEB
AutomationDirect C2 100 www.automationdirect.com
Baldor Electric Company C3 106 www.baldor.com
Canary Labs 7, 9 103, 104 www.canarylabs.com
Kirk Key Interlock Company LLC 10 105 www.kirkkey.com
Magnetrol 1 101 www.magnetrol.com
Oil & Gas Engineering Webcast 18 www.oilandgaseng.com/DigitalOilFieldWebcast
WAGO Corp C4 107 www.wago.us
WELDBEND 2, 3 102 www.weldbend.com

Tough Choice
The American Petroleum Institute created strict • API Certified

motor performance and manufacturing quality
standards to ensure safe, reliable operation in
tough Petro Chemical applications. In fact, Baldor
engineers participate on the working groups that are
instrumental in establishing API 541 and 547 motor • Custom Built to Your Specs
standards. Today Baldor•Reliance® API 547 general
purpose and API 541 critical service motors are hard
at work for Petro Chemical users around the world.
• Energy Efficient
Count on Baldor•Reliance API motors to make your
next tough Petro Chemical motor application an easy
choice.
baldor.com 479-646-4711 • Unmatched Quality
©2012 Baldor Electric Company

NETWORKED VALVE CONTROL.
COMPACT.
FLEXIBLE. V E C ON T ROL
IN
VAL 12
'(
( , Ǭ2
7+
WAGO-I/O-SYSTEM 750
750-632 Proportional Valve I/O Module
r Compact, 12 mm wide module
r Control two valves up to 24V and 1.6A each
r Integrate with a variety of networks and I/O modules
www.wago.us/valve-control

Oil and Gas Engineering - 2016 10

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19 Managing risk through maintenance | 33 Moving at the speed of data

More DIN Rail Density:

Easy Expansion with Remote I/O: Remote I/O

Get more than you paid for . . .

input #100 at www.controleng.com/information

Better Signal-to-Noise Ratio Means

magnetrol.com • 1-800-624-8765 • info@magnetrol.com © 2016 Magnetrol International, Incorporated

EMILY GUENTHER, Associate Content Manager

4 • OCTOBER 2016 OIL&GAS ENGINEERING

23 Make better, strategic decisions in less time with Big Data

27 How to battle drift in bonded foil strain gauge-based sensors

30 Preparing for a cyber attack

39 Data mining and analytics for performance

41 The framework for process intelligence and improvement

OIL&GAS ENGINEERING OCTOBER 2016 • 5

The choice of what maintenance

A key in planning out any maintenance • Initial walkaround or route definition—

Chris McMillen is product manager for

8 • OCTOBER 2016 OIL&GAS ENGINEERING

The Four Necessary Steps to

Predictive Management 1 %6  0 

Tired of reacting to unexpected equipment failures, power outages, and unplanned

At the core of the predictive model is the data historian, faithfully

To shift your company into a more predictive asset management

Download the paper: info@canarylabs.com

input #104 at www.controleng.com/information

‘No Place to Run’ – Trapped Key

safety procedures can be put in place Key A-1 Control STOP

This paper defines what a trapped key Time Delay Key

interlock system consists of and how

it can be incorporated into operating Guard B

procedures. There are examples of

details of how the system operates in

Download the paper here:

input #105 at www.controleng.com/information

SCADA addresses oil and

OIL&GAS ENGINEERING OCTOBER 2016 • 11

12 • OCTOBER 2016 OIL&GAS ENGINEERING

OIL&GAS ENGINEERING OCTOBER 2016 • 13

14 • OCTOBER 2016 OIL&GAS ENGINEERING

Web SCADA offers new

OIL&GAS ENGINEERING OCTOBER 2016 • 15

OIL&GAS ENGINEERING OCTOBER 2016 • 17

Wednesday, November 9, 11:00am PT/1:00pm CT/2:00pm ET

This webcast will illuminate the challenges of implementing automation,

Webcast attendees will:

• Understand the business and personnel-related challenges

• Hear about case studies and data integration

Presenter: Tony Edwards, CEO of Stepchange Global

Knowing the future:

OIL&GAS ENGINEERING OCTOBER 2016 • 19

20 • OCTOBER 2016 OIL&GAS ENGINEERING

OIL&GAS ENGINEERING OCTOBER 2016 • 21

22 • OCTOBER 2016 OIL&GAS ENGINEERING

Make better, strategic

OIL&GAS ENGINEERING OCTOBER 2016 • 23

24 • OCTOBER 2016 OIL&GAS ENGINEERING

OIL&GAS ENGINEERING OCTOBER 2016 • 25

as pressure measurements, that were only

Figure 3: Woodside, the largest indepen-

26 • OCTOBER 2016 OIL&GAS ENGINEERING

How to battle drift in

OIL&GAS ENGINEERING OCTOBER 2016 • 27

28 • OCTOBER 2016 OIL&GAS ENGINEERING

Predictive Management 1 %6 0