Rod Montrose Director of Device Development Numerex rmontrose@numerex.com
Rod Montrose 10+ Years at Motorola with Radio and Data Device Development 14 Years Founder and CEO of AVIDwireless Director of Device Development for Numerex Numerex Corp Largest M2M MVNO, 2.3M Subscribers DNA: Device Network Application $200M Market Cap NASDAQ:NMRX 2
Lessons learned Implementing Remote Monitoring and Control Solutions in the Oil & Gas Industry for Marginal Wells. 3
Definition: 15 Barrels of Oil per day or less than 60 Thousand cubic feet of Natural Gas per day. 650,000 In USA (126,000 in Texas) 85% of Total Number of US Wells Produce 29% of US Oil Production and 8% Natural Gas Wells Often were Abandoned Many Family Owned & Operated Manual Processes 4
Oil Selling $80-$100 BBL New Generation of Operators Smartphone & Instant Data Consolidation of Wells Lower Cost of Automation & Communications Real Business to Run and Optimize 5
Key value proposition Time & Money Better Service Personnel Scheduling EPA Fines Ouch!!! Automated Reporting Automated Alerts Sample1 1H Wellhead-A Pres 442.61 7/24/2012 12:15 Sample1 1H Wellhead-A Pres 439.56 7/24/2012 12:30 Sample1 1H Wellhead-A Pres 441.39 7/24/2012 12:45 Sample1 GAS1-Total Accum Volume 166471.71 7/24/2012 13:00 Sample1 GAS1-Differential Pressure 53.86 7/24/2012 13:00 Sample1 GAS1-Yesterday Volume 570.38 7/24/2012 13:00 Sample1 GAS1-Flow Rate 574.42 7/24/2012 13:00 Sample1 GAS1-Static Pressure 62.47 7/24/2012 13:00 Sample1 GAS1-Temp F 79.85 7/24/2012 13:00 Sample1 Tank-1 Lvl 3.8 7/24/2012 13:00 Sample1 Tank-2 Lvl 9 7/24/2012 13:00 Sample1 1H Wellhead-A Pres 438.94 7/24/2012 13:00 Sample2 1H Wellhead-A Pres 316.84 7/24/2012 12:15 6
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Obvious Need Immediate Benefit; Entrée for Other Automation Easy to Do Incorrectly 8
High Level Float Sensor Digital On/Off Hydrostatic Pressure Depends on Specific Gravity Ultrasonic Lower Cost, Gas Issues Float Level Sensor Accurate; Installation Costs Radar Level Sensor High Cost 9
Technology Distance (Ultrasonic, Radar, Magnetic) Float (Switch, Magnetic, Resistive) Pressure, Pneumatic, Magnetostrictive, Capacitive Chemical Properties Accuracy Alarm (Digital, Analog) Custody (Billing, Payment) Power / Infrastructure Interface (Digital, Analog, Modbus) 10
Automated Shut Off Loss of Pressure, High Tank Level, Equipment Failure Remote Pump Control Issues with Legacy Equipment 11
Digital/Analog Inputs Pulse Counting / Frequency Digital/Analog Outputs Relays Smart Instruments Motors, Pumps Modbus Over ZigBee Standard Protocol Mesh Network 2 Km Range 12
Sensors Pressure Temperature Level Flow Actuators Valves Shutoffs Pump Motors 13
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Push Alerts and Alarms to Field Operators SMS Text is only Common Platform Don t overrun Operator with Multiple Alarms or Minor Issues Use Familiar Names and Terminology 15
Need To Operate 24x7 Harsh Environment Low Tolerance to Failure Non-Technical Staff Lack of Trained Resources High Pressure Environment How Do You Make This Bullet Proof? 16
Expect Equipment to Change or be Substituted. Virtualize Devices Plan for Growth / Modifications Ensure Sufficient Power Choose Equipment Designed for Oil/Gas Environment Understand Accuracy/Cost Tradeoff 17
Equipment is getting Smarter Plan to Handle these Devices Target Mobile Devices Push Text messages on Important Alerts & Alarms Don t Overload Them! Marginal Wells Benefit from Small, Simple Automation 18
Cellular is ALMOST Everywhere Satellite Is Becoming Competitive Hills and Trees are Signal Barriers Antennas Make all the Difference Higher the Better Omni-Directional vs. Directional Gain Implement Monitored Heart-Beat Plan for Outages 19
Installation Issues Codes, Certifications Safety, Insurance Training Wiring, Power Critical Infrastructure Field Replacements Hot Swappable Backups, Bypass Understand Downtime Cellular Outages 20
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Marginal Wells Are Huge Opportunity Technology, Equipment and Experience is Essential to Providing Bullet Proof Solutions No Generic Solution Is Available Customized to Needs Based on a Standard Platform Flexibility is Key Tank Monitoring Is Often Entre to Further Automation for Customers Tank Monitoring only 10% of Solution Installation & Support Teams are Vital 22
Rod Montrose rmontrose@numerex.com 770-615-1393 www.numerex.com 23