Thoughts on Current and Future Trends in Integrated Operations

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1 Thoughts on Current and Future Trends in Integrated Operations Tony Edwards BG-Group, Head of ivalue ie2008 Organising Committee Chairman Copyright IBM Corporation 2008

2 This Presentation Update from ie IO is here to stay - How much Progress have we made? - Collaboration a Major Theme - People, Process and Organisational Change - Young Professionals Two Philosophies? What Next for IO? Conclusions Slide 2

3 ie Amsterdam 1665 people from 52 Countries Approx 45% from IOC s, NOC s and Independents - Significant Contribution from NOC s Companies from outside the O&G Sector, attending, presenting and exhibiting Company Activity - Consultancies Consultancy, 2% - Telecoms International Oil Company, 30% - Aerospace Global Attendance - 65% West Europe - 14% USA (240) - 8% Mid East (130) - 4% South America (65) - 4% East Europe (65) - 5% Other (80) Slide 3 Supplier to Oil & Gas Industry, 15% Other, 11% National Oil Company, 10% Information Management, 2% Human Resources/Training an Education, 3% Communications/Network Infrastructure, 3% Independent Oil Company, 6% Contractor, 10% Oilfield Services, 7%

4 Senior Management sees Integrated Operations transforming our Industry Helge Lund StatoilHydro - Integrated Operations is a revolution that is reshaping our industry Amin Nasser Saudi Aramco - All new fields will be intelligent fields Malcolm Brinded Shell - I expect the use of Smart Technology to accelerate over the next decade Ben Verwaayen BT - In the digital world time and distance are dead Andrew Gould Schlumberger - Our Operations Centre in Aberdeen monitors 28 rigs simultaneously Slide 4

5 How much Progress have we made? Live Links - - BP s Advanced Collaborative Environment in Baku StatoilHydro s Drilling Support Centre supported by the SH s Subsurface expert centre and Schlumberger s Operations Centre Shell s Gronnigen Control Centre Petrobras Operations Support Centre Slide 5

6 Collaboration A Major Theme 15 Papers on Collaborative Environments - Case Studies - Real Benefits Normal way of working for many companies - Drilling Support Moving to 24/7 - Operations Support - Expert Support Both Internal and External to the Company Built into the fabric of the Building Moving beyond front line operations Slide 6

7 People, Process and Organisational Change A significant amount of learning in the last 2-3 years Increased Emphasis in this area - Now seen as the key to success More focus on People and Organisational Change Questions about the focus on Process lead Change - Has there been too much of this? - Processes evolve and change rapidly in an intelligent energy world Looking outside our industry for support and learning s Slide 7

8 Young Professionals The future of our industry E&P organisations should make the digital oilfield more accessible to young professionals YPs know how to work collaboratively IO is how we attract the best and the brightest in to our industry New Education and Training Programmes Need to change the perception of our Industry Slide 8

9 Two Philosophies? IO as a transformation programme - Delivered in in the Line - Supported by Central Programme Office - Emphasis on Value attainment and People and Organisation Change - Technology is the Enabler - Integrates the teams and the ways of working IO as a Technology/IT Project - Delivered by a central group - Emphasis on the Technology - Integrates the Systems and Data - Automating a Process? Regional Split? Slide 9

10 What s Next for Integrated Operations Extending beyond frontline Operations and Drilling and the Inclusion of a broader range of disciplines - Control and Instrumentation and Facilities Engineering Disciplines - Commercial and Finance - HR and Org Development Major projects - Inclusion of IO in the Design of New Fields - IO Applied to the Major Projects Process Asset Integrity - Sensor Technology is needed - Assuring the integrity of our Plant and Equipment Slide 10

11 What is Next for Integrated Operations Remote support to access Global Resources IO across the entire Value Chain - A move into mid-stream and Downstream Learning s from other Industries - Aeronautical, Defence, Automotive, Pharmaceutical New Career Paths? - Does the SPE need a Production Optimisation or Digital Engineering Discipline A change in the Oil Company Supplier Relationship - Standards which allow collaboration between companies An Eco-system of Companies that work together Slide 11

12 Conclusions IO is now a truly Global movement Just beginning to enter new domains such as Projects Moving towards 24/7 and Global Expert Support Still a lot to learn from other industries IO is essential to attracting the next generation of Talent Will change the nature of the relationships between companies Eco-System of Companies We Have Only Just Started Truly Integrated Oil and Gas Industry Slide 12

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