Information communication technologies in oil and gas industry

1. Ministry of Education and Science of Russian Federation Faculty of the Development of Oil & Gas Fields Department of offshore

Ministry of Education and Science of Russian Federation
Faculty of the Development of Oil & Gas Fields
Department of offshore oil and gas fields development
INFORMATION COMMUNICATION
TECHNOLOGIES in oil and gas industry
Done by MSs students: Alexey Gurin
Gorbadey Michael
Simukov Denis
Checked by:
Professor,
Full doctor of science
Nikolai A. Eremin
Moscow
2016

2. Content

Abstract
Keywords
Introduction
1. ICT definition
2. ICT history
3. Impact of ICT in oil and gas exploration
3.1. Impact of ICT in oil and gas upstream operations
3.2. Scada technology for upstream oil exploration
3.3. Impact of ICT In Oil And Gas Downstream Operations
4. Bibliometric and patent analysis
4.1. Article analysis
4.2. Patent analysis
Conclusion
References
5 Q&A
2

3. Abstract

Information and Communication Technology (ICT) is of great
importance to almost all aspects of oil and gas operations, from
upstream to downstream operations. ICTs help to optimize oil and gas
processes and thus improves the efficiency and viability of oil and gas
operations.
3

4. Keywords

Information Communication Technologies, ICT in oil and gas industry,
history of ICT, ICT implementation, ICT for business challenges, big
data.
4

5. Introduction

The economy of many countries is currently supported by oil, which is
the major non-renewable energy source. ICTs play an important role in
increasing productivity and efficiency in many sectors of the economy.
Oil companies in particular adopt ICTs to improve the efficiency and
effectiveness of their operations, as well as to aid management decision
making.
ICT has a high impact in oil and gas operations. For example, in
upstream operations ICTs and related technologies may provide
possibilities for expanding proven crude oil reserves, improving the rate
of crude-oil extraction from existing wells, and providing further means
to discover new wells.
5

6. 1. ICT definition

by Michail Gorbadey
1. ICT definition
Information and communications
technology (ICT) is an extended term
for information technology (IT) which
stresses the role of unified
communications[4] and the integration
of telecommunications (telephone lines
and wireless signals), computers as well
as necessary enterprise
software, middleware, storage, and
audio-visual systems, which enable
users to access, store, transmit, and
manipulate information.[5]
Source: "Information and Communication Technology from". FOLDOC. 2015-09-19.
6

7. 2. ICT history

by Michail Gorbadey
2. ICT history
There are 4 main ages that divide up the history of information
technology:
• Premechanical
• Mechanical
• Electromechanical
• Electronic
Only the latest age (electronic) and some of the electromechanical age
really affects us today, but it is important to learn about how we got to
the point we are at with technology today.
Source: en.wikipedia.org/ICT_history
7

8. 2. ICT history

by Michail Gorbadey
2. ICT history
Premechanical
The premechanical age is the
earliest age of information
technology. It can be defined as
the time between 3000B.C. and
1450A.D. We are talking about a
long time ago. When humans first
started communicating they
would try to use language or
simple picture drawings known as
petroglyths which were usually
carved in rock.
Source: en.wikipedia.org/ICT_history
8

9. 2. ICT history

by Michail Gorbadey
2. ICT history
Mechanical
The mechanical age is when we
first start to see connections
between our current technology
and its ancestors. The mechanical
age can be defined as the time
between 1450 and 1840.
Source: en.wikipedia.org/ICT_history
9

10. 2. ICT history

by Michail Gorbadey
2. ICT history
Electromechanical
Now we are finally getting close
to some technologies that
resemble our modern-day
technology. The
electromechanical age can be
defined as the time between
1840 and 1940.
Source: en.wikipedia.org/ICT_history
10

11. 2. ICT history

by Michail Gorbadey
2. ICT history
Electronic
The electronic age is wha we currently live in.
It can be defined as the time between 1940 and
right now. The ENIAC was the first highspeed, digital computer capable of being
reprogrammed to solve a full range of
computing problems. The personal comptuer
was developed (Apple II).
Source: en.wikipedia.org/ICT_history
11

12. 3. Impact of ICT in oil and gas exploration 3.1. Impact of ICT in oil and gas upstream operations

by Alexey Gurin
Oil fields are becoming part of an ICT network, as all of them are
increasingly connected through the internet and monitored in real time.
All the components of oil fields, including the oil wells, pumps,
pipelines, and oil rigs are interconnected, with each component having
an IP address. The petroleum industry uses the computing capacity
provided by major IT companies. These IT companies provide capacity
to geoscience departments of MNOCs to manipulate data of oil wells
using the 3D seismic technology which makes it possible to monitor
changes in oil fields.
Source: http://www.intelligentsolutionsinc.com
12

13. 3.1. Impact of ICT in oil and gas upstream operations

by Alexey Gurin
3.1. Impact of ICT in oil and gas upstream
operations
By using well logging devices while drilling, the data from the oil wells
are transmitted to experts, who then judge and take action to ensure best
practices. Formerly, logging was performed as the drilling tools were
pulled out of the well. Now ICTs enable data to be read using sensors in
the drill string, the data are normally digitally transmitted in real time to
the monitoring offices.
Source: http://www.intelligentsolutionsinc.com
13

14. 3.1. Impact of ICT in oil and gas upstream

by Alexey Gurin
3.1. Impact of ICT in oil and gas upstream
14

15. 3.1. Impact of ICT in oil and gas upstream

by Alexey Gurin
3.1. Impact of ICT in oil and gas upstream
The oil exploration and production optimization department of oil
companies are now increasingly responsible for running the Smart
Fields. Shell developed the “Smart Field” program which is a holistic
way of looking at production, reservoir management, and other
technical processes. It aims to maximize the life cycle value of assets by
integrated development and deployment of “Smart” capabilities. A smart
field is one whose life cycle is continuously optimized [8].
Source: http://www.worldoil.com
15

16. 3.2. Scada technology for upstream oil exploration

by Denis Simukov
3.2. Scada technology for upstream oil
exploration
Scada is a type of industrial computer control system that can monitor and control
large scale industrial processes that include multiple sites, and large distances. A
SCADA system usually consists of the following subsystems:
- A human–machine interface (HMI) is device which presents process data to a
human operator, and thus enabling the human operator monitors and controls the
process.
- A supervisory computer system, acquiring data on the process and sending control
commands to the process.
- Remote terminal units (RTUs) connecting to sensors in the process, converting
sensor signals to digital data and sending digital data to the supervisory system.
- Programmable logic controller (PLCs) used as field devices because they are more
flexible than special-purpose RTUs.
- Communication infrastructure connecting the supervisory system to the remote
terminal units.
Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015
16

17. 3.2. Scada technology for upstream oil exploration

by Denis Simukov
3.2. Scada technology for upstream oil
exploration
Most control actions are performed by RTUs or by PLCs. The feedback
control loop passes through the RTU or PLC, while the SCADA system
monitors and supervises the overall performance of the loop. Data
acquisition begins at the RTU or PLC level and includes meter readings
and equipment status reports that are communicated to the SCADA host
as required. Data after compilation is formatted in such a way that a
control room operator using the Human Machine Interface can make
supervisory decisions to adjust or override normal RTU or PLC
controls. A HMI is the device which presents process data to a human
operator, and with which the human operator controls the process.
Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015
17

18. 3.2. Scada technology for upstream oil exploration

by Denis Simukov
3.2. Scada technology for upstream oil
exploration
18

19. 3.2. Scada technology for upstream oil exploration

by Denis Simukov
3.2. Scada technology for upstream oil
exploration
Due to the remote location of
oil-fields outside the network
coverage of main
telecommunications networks,
in order to have access to
sufficient bandwidth, most oil
companies rely on the
services of satellite telecom
providers to link all their oilfields and manage them from
a central location.
Source: Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015
19

20. 3.3. Impact of ICT In Oil And Gas Downstream Operations

by Denis Simukov
3.3. Impact of ICT In Oil And Gas
Downstream Operations
Downstream oil operations include transportation and refining of crudeoil as well as marketing and distribution of its end products. ICTs allows
for the storage and manipulation of the different levels of data on
purchasing and delivery of crude oil, refining and distribution of end
products. Those data include crude-oil prices, inventory, delivery costs,
and so on. ICTs are used in refineries to aid technological processes and
to increase the yield of oil products with minimization of harmful
emissions. In transportation and distribution, ICTs prevent losses and
helps to optimize the stocking and final delivery of oil products to end
users.
Source: http://www.eslink.net
20

21. 3.3. Impact of ICT In Oil And Gas Downstream Operations

by Denis Simukov
3.3. Impact of ICT In Oil And Gas
Downstream Operations
21

22. 4. Bibliometric and patent analysis  

4. Bibliometric and patent analysis
Company/Year
Chevron
Exxon mobil
Petro China
Honywell
Baker Huges
Weatherford
Schlumberger
Halliburton
Eni
BP
Shell
Others
Total
Source: onepetro.org/ICT
2014
6
3
2
1
8
1
1
17
39
2015
7
2
1
1
5
1
2
4
1
28
52
2016
4
1
1
2
3
1
1
1
1
3
2
24
44
Total
17
6
4
4
16
2
2
3
2
7
3
69
135
22

23.

Source: patents.google.com/ICT
23

24.

by Gurin A.
Company/Year
Chevron
Exxon mobil
Petro China
Honywell
Baker Huges
Weatherford
Schlumberger
Halliburton
Eni
BP
Shell
Others
Total
Source: onepetro.org/ICT
2014
9
5
4
3
10
3
2
1
2
2
1
28
70
2015
8
3
3
2
8
3
2
3
2
6
2
37
79
2016
6
1
1
3
6
2
2
2
3
4
3
26
59
Total
23
9
8
8
24
8
6
6
7
12
6
91
208
24

25.

Articles of each company
Articles
90
10
80
9
Chevron
Exxom mobil
7
Petro China
6
Honywell
5
Baker Huges
4
Weatherford
Schlumberger
3
Halliburton
2
Eni
BP
1
Shell
0
70
Total number of articles
The number of articles
8
60
50
40
30
20
10
2013
2014
2015
0
2013
Year
Source: onepetro.org/ICT
2014
2015
Year
25

26.

30
25
Chevron
Exxon mobil
Articles
20
Petro China
Honywell
Baker Huges
15
Weatherford
Schlumberger
10
Halliburton
Eni
BP
5
Shell
0
0
2
4
6
8
10
12
14
16
18
20
Patents
26

27. Conclusion

Crude oil will continue to play an important role in the future world
energy balance for decades to come. Improved use of ICTs and related
technologies in the oil and gas sector can help to solve the current
difficult situation regarding oil supply in the world energy market and
thus achieve a more efficient use of existing oil resources. ICTs and
related technologies can help to discover new oil reservoirs, with greater
accuracy and also lead to more efficient oil extraction from existing
fields. Consequently, oil and gas industry stakeholders should adopt a
longer term strategic approach, including increased Research and
Development efforts in the oil sector geared towards developing and
implementing new and valuable ICT solutions for the oil and gas
industry.
27

28. References

1. Efraim Turban, Dorothy Leidner, Ephraim McLean, James Wetherbe, "Information Technology for Management: Transforming Organizations
in the Digital Economy", 3rd edit., John Wiley & Sons, Inc., pp.10-15. ISBN 978-0-471-78712-9.
2. Matthew K. Luka, Ibikunle A. Frank, “ Impact of ICTs on Banks: A Case Study of the Nigerian Banking Industry”, International Journal of
Advanced Computer Science and Applications, Vol.3, No.9, 2015.
3. UNCTAD (2016). ICTS In The Oil Sector: Implications For Developing Economies. Chapter 4, Information Economy Report 2016.
4. Murray, James (2014-12-18). "Cloud network architecture and ICT - Modern Network Architecture". ITKnowledgeExchange. TechTarget.
Retrieved 2015-08-18.
5. "Information and Communication Technology from". FOLDOC. 2015-09-19.
6. "ICT - What is it?". www.tutor2u.net. Retrieved 2015-09-01.
7. Zuppo, Colrain M. "Defining ICT in a Boundaryless World: The Development of a Working Hierarchy" (PDF). International Journal of
Managing Information Technology (IJMIT). p. 19. Retrieved 2016-02-13.
8. http://www.intelligentsolutionsinc.com
9. http://www.worldoil.com
10. What Are Smart Fields?, Digital Energy Journal, April 2014.
11. Langley Diane, “Shaping The Industry’s Approach To Intelligent Energy, Journal Of Petroleum Technology, Society Of Petroleum Engineers,
2014.
12. Christian Bergan, “Enhancing Oil And Gas Operations – SCADA via Satellite”, 2015, available at
http://www.processonline.com.au/articles/29979-Enhancing-oil-and-gas-operations-SCADA-via-satellite.
13. http://www.eslink.net
28

29. 5 Q&A

5 Q&A
1. There are 4 main ages that divide up the history of information
technology:
Premechanical
Mechanical
Electromechanical
Electronic
29

30. 5 Q&A

5 Q&A
2. ICTs make it possible:
a. to collect huge amounts of data concerning oil fields
b. to manipulate of data in models
c. to support decision making with respect to optimal oil recovery
methods
d. to collect huge amounts of data concerning oil fields with
manipulation of those data in models which support decision making
with respect to optimal oil recovery methods
30

31. 5 Q&A

5 Q&A
3. Smart field philosophy. Position on the correct order.
Model
Satellite
Measure
Decide
Control
31

32. 5 Q&A

5 Q&A
4. Where is it possible to apply ICT in Downstream operations?
a. Exploration
b. Production
c. Transport
d. Refining
e. Marketing
f. All the answers are incorrect
g. All the answers are correct
32

33. 5 Q&A

5 Q&A
5. Total number of articles wrote in 2014, 2015 and 2016?
a. 100
b. 150
c. 208
d. 500
e. 711
33