The Future of Integrated Operations

Abstract

The concept of integrated operations (IO) has matured significantly over the past 8 years since the landmark study by Cambridge Energy Research Associates (CERA) in 2002. Many companies, including Chevron, now have established programs with demonstrated results delivered in multiple assets. With that track record, companies are now asking what is next and how can they build on this foundation for the future.Given what we have learned to date, how can we accelerate results and where can IO add the most value? What business and technology trends will emerge both to help and to hinder integrated workflow solutions over the next 5 to 10 years? This paper will address these questions by looking at the history of the Chevron i-field™ (i-field is a trademark of Chevron USA Incorporated in the US and in other countries) program to understand what has been accomplished, the promises realized, and the challenges uncovered in the journey. We will examine trends in the industry, to understand future opportunities and challenges more clearly.The paper will look at how different elements of IO can be deployed more effectively and how to address the challenges of delivering and sustaining the change within the current and future workforce. Delivering solutions is usually difficult, but sustaining and supporting them provide new levels of challenge. How do we ensure that IO becomes the way we work in the future instead of a passing technology fashion fad? Revisiting Expectations: History and Current State of Chevron's IO ProgramChevron's IO program (called i-field) is now in its eighth year. Much has been accomplished in that time. Chevron has begun to think differently about how to use digital technology and processes to change the way we operate key assets. We are starting to realize the potential of the way we can collaborate and use information to make better investment and operational decisions. Many major operators and service providers in the exploration and production (E&P) industry have made similar progress with their own programs (Reece et al. 2005;Murray et al. 2006;Henriquez et al. 2008;Reece et al. 2008).But, much more remains to be done before we achieve the ultimate goal of transformation. As we try to forecast the future, it would be prudent to first look back on early industry expectations, to see how well we have done.An early analysis of the potential of IO came from CERA in the form of a multiclient study on the Digital Oil Field of the Future (DOFF) (CERA 2002). They predicted DOFF challenges coming in the areas of technology development, demonstrating business case, workforce adoption, work-process redesign, data and application integration, and collaboration between service and E&P firms.In that early publication, CERA identified a number of ways in which DOFF could develop, with varying levels of impact to the industry. Three possible scenarios were put forward:1. Operating Efficiency: DOFF technology is used in an evolutionary manner to extend existing trends in lowering costs, increasing recovery, and ...