Part 2: Convergence of OT and IT

Convergence of OT and IT

January , 2100 | Online ::

The concept of the Digital Oilfield started about twenty years ago when increased field instrumentation, process control, and advanced software and data analysis techniques were brought to the operations and engineering practices in the oil field. Now, the new generation of the digital oilfield is going farther with smart equipment, automation, and more statistical analysis and machine learning models.

The Industrial Internet of Things (IIoT) has been described as a major disrupter of the status quo and transformational in its impact on the business due to its ability to connect things and people in new and novel ways, provide unique services and enabling capabilities not previously possible, or certainly not as cost-effective. While this may be true in other industries, especially those with a retail consumer component, oil & gas is taking a more measured approach given lower oil prices, lower investment overall and the industry’s reputation for a conservative approach to the adoption of technologies.

This program will provide a comprehensive set of introductory information about the Digital Oilfield, specifically focusing on the convergence of technology, systems, practices, and required skills from the two key disciplines of Operational Technology and Information Technology for professionals working at oil and gas operators, oilfield service companies, and technology firms. It will cover HMI improvement, achieving situational awareness, the impact of AI, avoiding situational awareness, and the emerging architectures and technologies throughout three sections:

• An Overview of the Digital Oilfield and What is Changing with DOF 2.0
• Convergence of OT and IT
• Application of Artificial Intelligence and Advanced Analytics to the Digital Oilfield

Learning Outcomes  

• Discuss what is meant by the digital oilfield and what are the current areas of interest by the O&G industry 
• Review the history, practices, and challenges of traditional operational technology, field instrumentation and control, and the difference between onshore and offshore operations 
• Review the history, practices, and challenges of traditional information technology; difference between corporate systems and business unit and function-specific operations 
• Identify the touch points between OT and IT in the digital oilfield 
• Identify the vulnerabilities that open when OT and IT systems are connected for cyberattacks; what is the significance of Stuxnet 
• Discuss the role and opportunities of new remote decision support centers 
• Discuss the concept of situational awareness and identify the dead spots in digital surveillance of legacy assets 
• Discuss the pros and cons of new digital technology and emerging architecture patterns that could dramatically change the current field automation paradigm 
• Discuss the impact of automation, smart equipment and processes, advanced analytics, robotics, and drones on the future of oilfield operations

Requirements for Successful Completion of Program 

Participants must complete all videos in the session in order to complete the program.  

Instructional Methods

PowerPoint and instructor video

Who Should Participate 

• Operations and maintenance supervisors from oil and gas producers 
• I&C specialist involved in field automation and remote decision support center operations 
• Information technologists involved in support of oilfield operations (communications, data, and applications) 
• System architects charged with developing systems that link field and corporate information architectures 
• Service company managers and product managers who are responsible for products and services that support oilfield operations 
• Physical and cyber security specialists working on digital oilfield operations
• Data analyst working with oilfield digital solutions

An Overview of the Digital Oilfield and What is Changing with DOF 2.0

The impact of digitization has profoundly affected the energy industry including oil and gas (digital oilfield) and utilities (smart grids). More data is available from field and process instrumentation and control systems for detailed analysis to improve decision making at all levels, from the field to the board room. The digital oilfield is a reality but it is taking on new forms shaped by emerging digital technologies and advanced analytics techniques. Changing commodity prices and market conditions have added the need to improve efficiency of operations, as well as to the existing drivers of a safe and environmentally benign operations footprint, effective recovery of reserves, and an attractive return on investment for shareholders. This program will take a detailed look at the opportunities, challenges and specific requirements for petroleum data analytics for the energy industry.

The major topics in this program include:

• What is the digital oilfield?
• The business case for digital transformation
• An overview of digital oilfield 1.0 and what is changing with DOF 2.0
• The new workflow priorities focus on efficiency, automation, and analytics
• The future is different!

Convergence of OT and IT 

Operations Technology (OT) and Information Technology (IT) are developing at an ever-increasing rate. When most people think of Oilfield automation systems, they usually think of SCADA (Supervisory Control and Data Acquisition) systems and downhole sensors. Oil and gas companies regularly collect critical data from remote well sites and production locations to monitor facilities, such as wellheads, storage tanks, artificial lift units, or pipelines. Current systems essentially poll information one-way back to central servers, where field performance data is displayed in an HMI (human machine interface), which triggers alarms or alerts that are used to dispatch personnel to visit the location to investigate. 

The digital oilfield has brought OT and IT together in potentially valuable but often challenging ways. However, the two cultures are still learning to work together to address common issues of cybersecurity, mobile data access, and many others. IT and OT professionals will get an overview about how their job roles intersect. With this understanding, IT professionals will be better able to create applications that assist with the operations they are designed for in a more direct manner. OT professionals will be better able to use analytics and data gathering tools by gaining a more in-depth understanding of how they work and what they can be used for. 

The major topics in this program include:

• Data as an enterprise asset
• How to bring OT and IT onto the same page; Technology (connectivity and control systems) & culture
• Improving the Human Machine Interface (HMI) for field operations, data access for optimization/reliability engineering
• The good news is that we are connected, the bad news is that we are connected. An update on the importance of cybersecurity
• Managing a new data type
  • How to manage time series data
  • Streaming analytics
  • Adding context: manual inspections, work orders, periodic measurements
  • Enriching relational data models with transactional data
• Cybersecurity
  • Security through obscurity
  • Situational awareness challenges
  • The impact of Stuxnet
  • Internal firewalls

Application of Artificial Intelligence and Advanced Analytics to the Digital Oilfield

IIoT represent the next stage of the Intelligent Oilfield, or Digital Oilfield 2.0. The original Digital Oilfield began around the year 2000 and was IT-led and technology focused, and it resulted in the expansion of automation, the use of digital devices, the addition of remote operation centers, standardization of selected workflows, and the practice of Management by Exception to operate fields. Most of Digital Oilfield activity was focused on offshore production, especially deep-water, due to the value of the assets involved but has since spread to onshore, drilling, completion methods and beyond.

Most oil and gas operators have announced some kind of digital oilfield or digital transformation project either at corporate, functional or asset level. The objective is to turn the potential of all the data that is being collected into sustainable solutions improving field and equipment performance, holistic asset lifecycle value, and better results on the bottom line. The promise of the digital oilfield is to significantly improve the productivity of physical assets and the humans that work in these environments

The major topics in this program include:

• The Pros and cons of physics-based models, statistics-based models and data-driven models
• How is AI impacting the digital oilfield
• The Future of AI-as-a-coworker
• Emerging technology developments continue to challenge the oilfield
• The impact of digital technology and advanced analytics
  • Reactive, schedule predictive, and prescriptive maintenance of critical equipment
  • The impact of emerging architecture patters (Fog and Edge computing)
  • Who owns the data?
  • Digital platforms
• Smart equipment
• Use of drones and UAV for inspection
• Route management: How to avoid visiting the well site
• Safety: Removing people from harm’s way

Jim Crompton

Jim retired from Chevron in 2013 after almost 37 years with the oil major. After moving to Colorado Springs, CO, Jim established the Reflections Data Consulting LLC to continue his work in the area of data management and analytics for the Oil & Gas industry. 

Jim was a Distinguished Lecturer for the Society of Petroleum Engineers in 2010-2011, speaking on the topic of “Putting the Focus on Data”, and he is a frequent speaker at SPE conferences on Digital/Intelligent Energy. His interests lie in the full spectrum of the information value chain from data capture, data management, data visualization, data access, modeling and analytics, simulations, and serious gaming. 

Jim graduated from the Colorado School of Mines (BS in Geophysical Engineering in 1974 and MS in Geophysics in 1976) before joining Chevron in Denver, CO.  He later earned an MBA degree (1996) from Our Lady of the Lake University (San Antonio, TX). 

In 1999, Jim was elected to the position of chair of the general committee of PIDX (Petroleum Industry Data Exchange), the API electronic commerce subcommittee.  Jim was able to influence the direction of the standards setting activities towards emerging technologies, such as XML, and new electronic business models in the energy industry.  

In acknowledgement of his contributions in applications of information technology to business problems, Jim was named a Chevron Fellow in 2002. In 2013, Jim co-authored a book titled The Future Belongs to the Digital Engineer with Dr. Dutch Holland, which focuses on the issues of the impact of emerging digital technology on oil and gas operations. He is currently working on his second book with Steve Cooper of EnergyIQ. 

In 2017, Jim was named as the PNEC Cornerstone award winner. Jim was selected to be on the board of the SPE Digital Energy Technology Section (DETS), is chair of the Digital Transformation committee under DETS, and is working on a subcommittee developing a digital academy curriculum for SPE. As of January 2018, Jim is an adjunct teaching faculty member in the Petroleum Engineering Department at the Colorado School of Mines teaching a graduate level course in “Petroleum Data Analytics”.

This is a recorded session - no instructor interaction is available. Recordings will expire 90 days from date of purchase and downloading or copying of the recording in anyay is strictly prohibited

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Part 2: Convergence of OT and IT

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