Wireless Automation Evolution in Upstream Oil & Gas Convergence of Parallel Paths of Technology, Complementary Capabilities and User Acceptance
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1 Wireless Automation Evolution in Upstream Oil & Gas Convergence of Parallel Paths of Technology, Complementary Capabilities and User Acceptance AN _A
2 Introduction The speed of change in data access, computer processing power and information requirements has accelerated dramatically in just the last few years. User demands have increased as technological capabilities to support those demands has also increased exponentially. The same can be said when applied to the evolution of wireless automation in Upstream Oil & Gas. We can think about these evolutionary convergences in demand and technology along the lines of Moore s Law. According to the Intel website i, Gordon Moore s observation transformed computing from a rare and expensive venture, into a pervasive and affordable necessity. All the modern computing technology we know and enjoy sprang from the foundation laid by Moore s Law. From the Internet itself, to social media and modern data analytics, all these innovations stem directly from Moore and his findings. Certainly, Moore was focused on computing and, for the last 50 some-odd years, it has held to be consistent, if not exact. Again, from Intel, Moore extrapolated that computing would dramatically increase in power, and decrease in relative cost, at an exponential pace. In recent times, the evolution of communications, data-processing (computing) and the increased demand for data modeling and analytics has led to a sort of Moore s Law in wireless automation in upstream oil and gas. In a paper titled Digitizing Oil and Gas Production, published by McKinsey & Company ii on the growth of data use for improved success in upstream oil and gas, the authors Stefano Martinotti, Jim Nolten, and Jens Arne Steinsbø, include statements on the benefits of digitizing and wireless short and longterm timeframes. McKinsey s paper suggests a number of best practices. While McKinsey places the emphasis on data usage (or, leakage) as noted in Figure 1 below, we return to the evolution of data availability especially through wireless means. Figure 1: Limiting data leakages can improve operational and business decisions OleumTech Wireless Automation Evolution in Upstream O&G AN _A 2
3 Communications Devices One of the key components for getting data from, and back to remote locations for use in the decisions that McKinsey and many others reference starts with the advent of the industrial, scientific and medical (ISM) band as adopted by the FCC on May 9, 1985 iii. That event opened the door to many capabilities that licensed frequencies just could not achieve in speed and ease of installation/implementation. Soon after the May 9, 1985 event, came the rise of ISM band radio modem manufacturing companies across the U.S. Some of the companies succeeded and some did not, as is common in a technology evolutionary moment. Yet, in 30 short years, the changes in modems from speeds, to reliability, to price, have accelerated in ways that Moore s Law would appreciate. This change was important to the entire oil and gas value chain but especially to the upstream oil and gas market. It almost instantly allowed companies with remote, upstream locations to have connectivity. They could get daily production data from the location into the processes at headquarters without anyone needing to go on location to pull a chart that would, days or weeks later, be read for production accounting. Radio modems operating in the licensed frequencies provided access prior, but the licensing process was expensive and related activities were not trivial. With unlicensed frequency hopping spread spectrum (FHSS) radios, there is no license required. The operator simply arranged for the link, installed the gear, and collected data. It was a game-changing moment. Plus, not only did this event provide an alternative to licensed radios, it provided an alternative to cellular modems. Cellular modems worked great (still do) in locations where there is coverage. However, attached to each cellular modem is a monthly charge. Years ago, those charges were high and, relative to license free radios that have no data charges, they were tremendously high. Noting the advancements in over the air speeds will help to accelerate the increased acceptance of the technology, such as illustrated in Figure 2. The early licensed radios would transfer data at 1200 baud or slower over the air. The introduction of spread spectrum radios for the ISM band presented a major step function in speed. One manufacturer started with a radio that had a 115,200 baud or Kbps speed option. Those radios are still the workhorse supervisory control and data acquisition (SCADA) radios in the field. However, radios have evolved to much higher speeds. Different standards and protocols have also evolved iv. The evolution of speeds has not necessarily been longitudinal (over time) but it has some time element as well as cost/technology elements. Those are all considerations in Moore s Law, as well. Figure 2: Increasing communication speeds plus some frequency options Increase In Kilobits Per Second Over Time Then 1985 Now 2018 OleumTech Wireless Automation Evolution in Upstream O&G AN _A 3
4 Primary ISM Band Frequency Options Frequency 2.4 GHz 900 MHz 5.8 GHz Computing Complementing technologies to the radios, such as computing power have advanced consistent with Moore s Law presumptions. Oil and Gas companies have also found benefits from computing advances due to the fact that they are getting additional value from having massive amounts of the right data. The results of the computing power and modeling is increased productivity on various fronts such as are mentioned in the McKinsey & Company document. Many companies such as Dell, HP, Intel and others offer ruggedized computers that are placed at the edge. In other words, support to critical decisions is placed closest to where the support is needed. The need to make those decisions is not something new. It is now a reality that those decisions can be made with the new technology that can survive in the harsh world of upstream oil and gas whether on-shore or off-shore. Figure 3: IOT Gateway Market OleumTech Wireless Automation Evolution in Upstream O&G AN _A 4
5 Sensors It might have made sense, no pun intended, to start this paper with a discussion of sensors. That, afterall is where the data is first generated. Sensors have existed for a long time but they needed to complement self-contained, battery powered wireless transmitters. The original sensors were highpower draw devices and could succeed because the model was to hardwire sensors. The wired infrastructure for these sensors had many disadvantages that opened the opportunities for wireless devices. Then, the sensor had to match the advantages of wireless by also being reliable and affordable, with complementarily low-power draw. In the late 1990 s, companies began pioneering this unique combination of sensors and telemetry. The challenges to success were not inumerable nor insurmountable. It is just that no one had truly succeeded innovating devices or systems that could reliably and affordably survive in the harshest conditions of the upstream oil and gas world. These devices, by their very remote installation nature, had to be battery powered. They had to meet safety certifications for deployment anywhere in the world. From a telemetry perspective, there are many challenges due to the varying radio frequency approvals amongst global geographies. Sensors had to fit into all of the requirements for low power consumption, high accuracy and affordability as well as being industrially hardened for the harsh environment of upstream Oil & Gas. The sensor, that is powered by the same battery that powers the wireless modem, had to be acceptable in performance accuracy, safety rating, and power consumption. User Acceptance All of this wireless adoption, digitizing, and IoT, faced challenges with the end user. Is it reliable as running a wire? Is it secure? What happens when this, that or the other happens. Skeptics did abound! They still do. We have had to learn answers to the above questions over time. Plus, the IIoT offers even more challenges to user acceptance by its very nature. Where is that cloud? How do I control my data if it goes into the cloud? To be fair, it is the sceptic who has demanded the systems, and all components thereof, evolve. A general observation over just the most recent 5 or 6 years, tells us that all of the components of this IIoT ecosystem delivered on leaps of evolutionary improvement. It has not been exactly at the pace of Moore s Law in Computing. While the advances in complementary technologies, computing, price and reliability may not have occurred in strictly linear occurrences, the speeds of change in all areas seem to have been increasing at growing rates in recent years. OleumTech Wireless Automation Evolution in Upstream O&G AN _A 5
6 Conclusion Volumes have been written by advocates and skeptics alike on Moore s Law, the IIoT, wireless communications, and so on. It does seem, though, that the value proposition of adopting the right components from each of the contributing technologies for your application are key to accepting the changes and powers that continue to evolve in wireless automation. No single illustration can represent all of the components from all of the points of view. There are already too many options to answering the question of, what is right for my organization? in a short paper such as this. Figure 4: Components of IIoT Illustrating a concept for the IIoT in Upstream Oil & Gas. It seems simple in concept! However, no one knows whether the speed of change will continue to increase over time but users are demanding more information and increased system performance to acquire and process data. As the adoption of data modeling and analytics gain momentum, the need for wireless in upstream oil and gas will continue to grow. SOURCES i ii iii iv OleumTech Wireless Automation Evolution in Upstream O&G AN _A 6
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