Review of Marathons Digital Oilfield Proof of Concept

Global Energy Forum - 3/25/2008 Marty Henderson Upstream IT Consultant

Marathon Statistics at a Glance

Fortune 50 company Established in 1887

4th largest US based integrated oil & gas company

5th largest US refiner Market Cap: ~ $35 billion 2007 Revenues: $65 billon 2007 Net income: $4 billion

2007 Net Production Sold: 351,000 BOE/D

2006 Proved Reserves: 1.3 billion barrels Employees: ~29,000

Headquartered in Houston, Texas

Upstream Focus Areas

Production Exploration/exploitation

Refining, Marketing & Transportation

Refinery Pipeline Terminal

St. Paul Park Detroit Canton Robinson Catlettsburg

Coastal Terminal
Inland Terminal

Garyville

Texas City

A comprehensive, integrated focus

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Canadian Oil Sands

Edmonton Hardisty

Regina Montreal Superior EPL Portland

St Paul
Casper Guernsey
Stockbridge

Sarnia

Detroit Chicago Canton Robinson

Patok a Cushing MPL

Catlettsburg

Flow

Corsicana Midland

Garyville
St. James LOOP

Pipeline
Location Refinery
Source: Marathon

Texas City

Marathons Vision
Technology enhances partnering through collaboration Quality, timely information leads to better decisions and productivity gains Better decisions lead to better results, greater credibility, more opportunities, greater shareholder value
Steve Hinchman, Marathons Senior VP of World Wide Production, speech to 2006 Digital Oil Conference

What is Marathons view of the Digital Oilfield?

One Place to go for Information The Digital Oilfield provides one place where consumers of information (well, field, platform, facilities, etc) can go to contextually access the information they need linked to the underlying data stores of record (applications).

Role based Information It provides the high level management reports on performance as well as the ability to drill into detail engineering or operating information though its intent is to not replace the more sophisticated application tools.

Intuitive presentation of Information Information is combined and presented via graphs, KPI's, tabular, maps, and composite views in mash ups from many source systems.

Training time reduced users presented with just the data needed for decision support.
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Types of Business Decisions

Strategic Tactical Operation
Options Expire

Composite View Digital Oilfield

Months Weeks Days Hours

Delayed Decision Point

Minutes

CPM - Hyperion

Digital Oilfield

Historian OSI-Pi

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Date and Tracking Info Here

Project History (4 months)

Vision originated from Oil/Gas Conference (GEF)

Utilize Marathons Strategy toward SharePoint 2007

Leverage Microsofts Oil/Gas Experience Proof of Concept approach Aberdeen selected for pilot Kick off meeting on June 26th Sponsor Review meeting Oct 11th in Aberdeen Final Review Nov 13th in Houston

Geographically Distributed Project Team

IT Program Manager Colorado, US

Sponsor Aberdeen, UK

IT Project Sponsor Houston, US

IT Project Manager Aberdeen, UK iStore Developers Houston, US Subsurface Clients Aberdeen, UK Corporate Decision Makers Houston, US Production Clients Aberdeen, UK
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Project Deliverables
Demonstrate business value from better decision making with access to better information. Confirm the concept of integrating information on the visualisation layer instead of the data layer. Improve efficiency by reducing the time to find engineering information. Verify this solution is applicable to several different user groups (roles). Expose expert engineer data to a wider audience. Demonstrate iStores oil industry data expertise by implementing a set of deliverables in a restricted timeframe.

Demonstrate iStore technical expertise with SharePoint, .Net, connecting to a variety of local and remote data sources; Oracle, SQL Server, PHD, etc.
Validate Microsoft Office SharePoint Server 2007 (MOSS) is suitable for this solution for both local and remote users. Validate Virtual Earth solution.

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Date and Tracking Info Here

Digital Oilfield Production Tasks

Actual Production vs. Potentials
Currently difficult to plot due to data sources
Combined view of data from two sources Morning report data in excel must be manually downloaded, not live

Comparison between what our wells could produce and what they have produced Monitor performance
Exposes data inconsistencies
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Digital Oilfield Production Tasks

Production - West Brae Well Test Viewer

Allows problems with a well test to be readily identified Ability to submit corrected well test start / end times through this tool would be a major step (workflow)

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Digital Oilfield Overview

Subsurface Well Curve Viewer South Brae well A4 Option to split view and show well trajectory again with cursor linked to allow for interactive data viewing.

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Digital Oilfield Overview

Subsurface Virtual Earth Map Important because it gives spatial understanding of where wells and fields are relative to one another.

EBU is predominantly an offshore environment so would not see advantage of any Virtual earth style views. However onshore has great benefit.
Some issues with well trajectories and labels from COMPASS.

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Example Reference Architecture

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Lessons Learned POC Project Approach

In a very short time this approach
Demonstrated capabilities of Information Store
Increased our understanding of DOF potential

Gave an insight into the final solution requirements

Seeing the POC deliverables helped us to clarify what we needed from such a tool

Highlighted the impact of such a tool on processes and procedures POC exposed underlying problems quicker transparency
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Lessons Learned - Keys to Success

A Project Sponsor willing to take risks. A business project advocate who sees the vision. Delivering on your promises. IT Management support for adjusting priorities. An Organization that embraces change. Ownership transferred to the business.
IT Project Sponsor Houston, US Sponsor Aberdeen, UK IT Project Manager Aberdeen, UK

IT Program Manager Colorado, US

iStore Developers Houston, US

Digital Oilfield is part of a larger strategy.

Support from Corporate Client group WWP Data Management Group.
Production Clients Aberdeen, UK

Corporate Decision Makers Houston, US

Subsurface Clients Aberdeen, UK

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Digital Oilfield

Lessons Learned Tool

Web-based visualization tool
makes information available to the decision maker Anytime, Anyplace, Anywhere. Makes data available to a wider audience more self service enabled

Demonstrated power of visualization of integrated data from multiple data sources

Our challenge there was working out how objects were named across sources and providing a translation table

Handles structured data sources

Less successful with excel and access
Losses data task not completed Well history task not successful

Exposed missing data

Validated that Microsoft Office SharePoint Server 2007 (MOSS) is appropriate for this solution. Develop strategy for use of tool, so it doesnt become just another tool. Must provide the support model for pleasant user experience. Response time, education, communication, and speed of making enhancements.

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Production Optimisation Improvement

Digital Oilfield closely fits our needs for production optimization
POC helped us to understand what we needed

To realize the value, it needs to be implemented as part of a wider strategy

Digital Oilfield

Morning Report

Losses

Shift logs

Forecasting

PRS Update

DCS Data Historian Well Knowledge Project

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Lessons Learned - Realizing the Potential

The real value of this technology comes from integrating the data with workflows and providing composite views

Documents

Production Data

Forecasts

Morning Report

Losses

Well History

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Lessons Learned Digital Oilfield Report Strategy

Read data sources in Real Time from system of record, no data warehouse, though there may be intentional exceptions to this. Uses Technologies that can leverage sourcing model technologies new IT folks will want to learn and support. Uses framework that can be used across the enterprise (upstream, downstream and marketing). High level simple reports for each relevant source. Simple composite reports which integrate data from multiple sources. Composite reports can include mapping data with textural data.
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Future Plans
Digital Oilfield Program started with 3 Project Managers for Marathons 3 Business Units. Complete European Production Operations in 2008 (UK, Norway, and Ireland). Complete Central Africa Production Operations in 2008 (EG, LNG and Gabon).

In first half of 2008, pilot a US location and implement 2 US locations by end of 2008.
Complete US locations in 2009.

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Marathons Digital Oilfield Proof of Concept

Marty Henderson Global Energy Forum 2008

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