ADVANCED PROCESS CONTROL IN SHELL

Transcription

1 ADVANCED PROCESS CONTROL IN SHELL 1978-Present Use this area for cover image (height 6.5cm, width 8cm) Freek van Dijk Team Leader Process Control Shell Global Solutions International B.V. Dec

2 DEFINITIONS AND CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as associated companies or associates and companies in which Shell has joint control are referred to as jointly controlled entities. In this presentation, associates and jointly controlled entities are also referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended 31 December, 2010 (available at and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 8 December Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC June

3 AGENDA 1.0 What is Advanced Process Control? 2.0 The Three Eras of Advanced Process Control in Shell : The Beginnings : The Global Solutions Era 2008-Present: APC For Global Shell 3.0 Trends and best practices in APC 3

4 1.0 WHAT IS ADVANCED PROCESS CONTROL? 4

5 WHAT IS ADVANCED PROCESS CONTROL? An automation technology which: Is model-based, multivariable, predictive, manages constraints, has functionality to optimize Disturbance Internal Model Setpoints & Constraints Optimizer Manipulated Variables Process Controlled Variables Disturbance Rejection Advanced Process Control 5

6 BENEFITS OF ADVANCED PROCESS CONTROL HSSE: Greater stability, fewer temperature runaways, etc. More efficient means fewer emissions Product quality: Less off spec material, less give away Reliability: More stable operations, less wear and tear Cost: Consistent operations, less variable production costs Margin: More throughput, more product yield, more efficient 6

7 THE BEGINNINGS 7

8 EARLY ADVANCED PROCESS CONTROL (APC) The basic concept for APC followed quickly behind the substantial drop in costs in computing power in the 1970 s At least two groups in Shell developed APC algorithms for refining process control in the 1970 s Grand Couronne in France Westhollow in USA These became SMOC and DMC respectively 8

9 EARLY ADVANCED PROCESS CONTROL (APC) Characteristics of first generation APC technology Size of controller (number of controlled and manipulated variables) was dicated by the speed and memory size of the computer Modeling was done by fitting curves from step test data, often by hand Handling of constraints was not part of first controllers but quickly became very important 9

10 GENEALOGY OF APC TECHNOLOGIES (TO 1998) DMC+ SMOCPC RMPCT SMOC SMCA PCT 1985 QDMC DMC LQG IDCOM

11 APC IN SHELL TO 1998 Despite having at least two algorithms in development and deployment, Shell was very successful in implementing APC over this period Skilled workforce Strong mandate to implement 11

12 THE GLOBAL SOLUTIONS ERA 12

13 CREATION OF SHELL GLOBAL SOLUTIONS In 1998, Shell head office engineering staff were put into Shell Global Solutions Commerical mindset Intended to be active in third-part market, not just Shell assets and Shell JV s Shell s APC technology was one of the focus areas for Shell Global Solutions to productize Best in class algorithm Deep application knowledge Wide variety of implementations across most refining and chemicals processes 13

14 TAKING SMOC TO THE OPEN MARKET Two key concepts shaped this space Partnering Needed to partner with other company to complement Shell Global Solutions strengths Universal Advanced Process Control Wanted to move away from developing specific versions of SMOC for each DCS vendor One embedding using a common communications language (possible with the release of OPC) 14

15 SHELL/YOKOGAWA APC ALLIANCE Shell Expertise Plant Automation Marketing & sales organisation Reliability track record System integrator with IT development skills Expertise in process operations Broad market sectors (refining, gas, chemicals, etc.) Operational track record Service oriented (TSA, etc.) 15

16 SHELL/YOKOGAWA APC ALLIANCE Alliance formed in 1999 Since then 100+ third party customers signed by alliance Yokogawa focused on non Shell advised companies Shell focused on companies with TSA s Full suite of technology developed: SMOC PRO /RQE PRO /AIDA PRO /MD PRO (offline) ExaSMOC/ExaRQE/ExaITG (online) Services From engineering consultancy and training to full turnkey projects 16

17 SHELL/YOKOGAWA APC ALLIANCE What did the Alliance achieve? New customers Recognition of products outside Shell Access to financial income to further software development Entry into new markets, new processes Knowhow increase on both sides And.commercial success 17

18 TECHNOLOGY DEVELOPMENT Other technologies developed in conjection with the alliance QUEST PRO : plant testing software BLEND PRO : blend property control using SMOC PRO and RQE PRO Replaces SBTM 18

19 GENEALOGY OF APC TECHNOLOGIES (TO 2008) 2005 SMOC Pro DMC+ SMOCv9 Shell/Yokogawa Alliance RMPCT SMOCPC 1990 SMOC SMCA PCT 1985 QDMC DMC LQG IDCOM

20 3.0 TRENDS AND BEST PRACTICES IN APC 20

21 TRENDS IN APC Benefits continue to grow (oil/gas prices, product innovation) Drive towards standardization continues Further exploitation of nonlinear process models in APC strategies Dynamic simulation plays more important role in testing Larger and more integrated control applications (HDS + blending) 21

22 BEST PRACTICES IN APC Get the Basics right Justify project in monetary terms /anchor it in your business improvement plans Follow a project approach for APC (team, schedule, commitments, work process, etc.) Build on proven experiences and process know how (standard documents) Ensure management buy in /commitment First APC must be a success Build teams that leverage experienced staff with 22

23 BEST PRACTICES IN APC Get operator involvement throughout project Design for sustainability No user code No native displays if possible Ensure maintenance focus after project (e.g. manpower) Use Monitoring and Diagnosis tools for control performance monitoring 23

24 APC WORK PROCESS 24

25 Q & A 25

26 SUMMARY Shell has had a long and successful history in Advanced Process Control Through the alliance with Yokogawa, Shell s SMOC PRO APC technology has proven to be: Competitive in the overall APC market Extremely flexible and adaptable to new problems and opportunities Generating great value for Shell and its partners 26

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