Subsurface Data in the Oil and Gas Industry

Probing beneath the Earth’s surface for exploration and hazard mitigation

Drilling for oil and gas is expensive. A single well generally costs $5-8 million onshore and $100-200 million or more in deep water.1 To maximize the chances of drilling a productive well, oil and gas companies collect and study large amounts of information about the Earth’s subsurface both before and during drilling. Data are collected at a variety of scales, from regional (tens to hundreds of miles) to microscopic (such as tiny grains and cracks in the rocks being drilled). This information, much of which will have been acquired in earlier exploration efforts and preserved in public or private repositories, helps companies to find and produce more oil and gas and avoid drilling unproductive wells, but can also help to identify potential hazards such as earthquake-prone zones or areas of potential land subsidence and sinkhole formation.

Mapping the Subsurface 1: Regional Data from Geophysics

In the 21st century, much is already known about the distribution of rocks on Earth. When looking for new resources, oil and gas producers will use existing maps and subsurface data to identify an area for more detailed exploration. A number of geophysical techniques are then used to obtain more information about what lies beneath the surface. These methods include measurements of variations in the Earth’s gravity and magnetic field, but the most common technique is seismic imaging.

Seismic images are like an ultrasound for the Earth and provide detailed regional information about the structure of the subsurface, including buried faults, folds, salt domes, and the size, shape, and orientation of rock layers. They are collected by using truck-mounted vibrators or dynamite (onshore), or air guns towed by ships (offshore), to generate sound waves; these waves travel into the Earth and are reflected by underground rock layers; instruments at the surface record these reflected waves; and the recorded waves are mathematically processed to produce 2-D or 3-D images of subsurface features. These images, which cover many square miles and have a resolution of tens to hundreds of feet, help to pinpoint the areas most likely to contain oil and/or gas.

A typical setup for offshore seismic imaging. Image Credit: U.S. Bureau of Ocean Energy Management.2

Mapping the Subsurface 2: Local Data from Well Logs, Samples, and Cores

Drilling a small number of exploratory holes or using data from previously drilled wells (common in areas of existing oil and gas production) allows geologists to develop a much more complete map of the subsurface using well logs and cores:

  • well log is produced by lowering geophysical devices into a wellbore, before (and sometimes after) the steel well casing is inserted, to record the rock’s response to electrical currents and sound waves and measure the radioactive and electromagnetic properties of the rocks and their contained fluids.3 Well logs have been used for almost 100 years4 and are recorded in essentially all modern wells.

  • core is a cylindrical column of rock, commonly 3-4 inches in diameter, that is cut and extracted as a well is drilled. A core provides a small cross-section of the sequence of rocks being drilled through, providing more comprehensive information than the measurements made by tools inside the wellbore.5 Core analysis gives the most detailed information about the rock layers, faults and fractures, rock and fluid compositions, and how easily fluids (especially oil and gas) can flow through the rock and thus into the well.

By comparing the depth, thickness, and composition of subsurface rock formations in nearby wells, geoscientists can predict the location and productive potential of oil and gas deposits before drilling a new well. As a new well is being drilled, well logs and cores also help geoscientists and petroleum engineers to predict whether the rocks can produce enough oil or natural gas to justify the cost of preparing the well for production.7

A box containing 9 feet of 4-inch diameter core from the National Petroleum Reserve, Alaska, showing the fine-scale structure and composition of the rock layers being drilled. Image Source: U.S. Geological Survey.6

Data Preservation

Preservation of subsurface data is an ongoing challenge, both because there is so much of it and because a lot of older data predate computer storage. A modern seismic survey produces a few to thousands of terabytes of data;8 state and federal repositories collectively hold hundreds of miles of core;9 and millions of digital and paper records are housed at state geological surveys. For example, the Kansas Geological Society library maintains over 2.5 million digitized well logs and associated records for the state.10 Oil companies also retain huge stores of their own data. Preserving these data, which cost many millions of dollars to collect, allows them to be used in the future for a variety of purposes, some of which may not have been anticipated when the data were originally collected. For example, the shale formations that are now yielding large volumes of oil and natural gas in the United States were known but not considered for development for decades while conventional oil and gas resources were being extracted in many of the same areas. Archived well logs from these areas have helped many oil and gas producers to focus in on these shale resources now that the combination of hydraulic fracturing and horizontal drilling allow for their development.

Data for Hazard Mitigation

Oil and gas exploration is a major source of information about the subsurface that can be used to help identify geologic hazards:

  • Since 2013, the oil and gas industry has provided more than 2,500 square miles of seismic data to Louisiana universities to assist with research into the causes and effects of subsidence in coastal wetlands. For example, seismic and well data have been used to link faults to historic subsidence and wetland loss near Lake Boudreaux.11

  • To improve earthquake risk assessment and mitigation in metropolitan Los Angeles, scientists have used seismic and well data from the oil and gas industry to map out previously unidentified faults. This work was motivated by the 1994 Northridge earthquake, which occurred on an unknown fault that was not visible at the Earth’s surface.12

More Resources

U.S. Geological Survey – National Geological and Geophysical Data Preservation Program.

References

1 U.S. Energy Information Administration (2016). Trends in U.S. Oil and Natural Gas Upstream Costs.
2 Bureau of Ocean Energy Management – Record of Decision, Atlantic OCS Region Geological and Geophysical Activities.
3 Varhaug, M. (2016). Basic Well Log Interpretation. The Defining Series, Oilfield Review.
4 Schlumberger – 1920s: The First Well Log.
5 AAPGWiki – Overview of Routine Core Analysis.
6 Zihlman, F.N. et al. (2000). Selected Data from Fourteen Wildcat Wells in the National Petroleum Reserve in Alaska. USGS Open-File Report 00-200. Core from the well “East Simpson 2”, Image no. 0462077.
7 Society of Petroleum Engineers PetroWiki – Petrophysics.
8 “Big Data Growth Continues in Seismic Surveys.” K. Boman, Rigzone, September 2, 2015.
9 U.S. Geological Survey Core Research Center – Frequently Asked Questions.
10 Kansas Geological Society & Library – Oil and Gas Well Data.
11 Akintomide, A.O. and Dawers, N.H. (2016). Structure of the Northern Margin of the Terrebonne Trough, Southeastern Louisiana: Implications for Salt Withdrawal and Miocene to Holocene Fault Activity. Geological Society of America Abstracts with Programs, 48(7), Paper No. 244-2.
12 Shaw, J. and Shearer, P. (1999). An Elusive Blind-Thrust Fault Beneath Metropolitan Los Angeles. Science, 283, 1516-1518.

Date updated: 2018-06-01
Petroleum and the Environment, Part 23/24
Written by E. Allison and B. Mandler for AGI, 2018

Optimizing pump reliability and performance

Optimizing pump reliability and performance

The offshore industry faces two main challenges: maximizing production within the limits of the reservoir, and minimizing operational costs while maintaining the safety of the platform. Pumps form one of the main groups of equipment that influence the outcome of both challenges and they require expert knowledge to ensure continued reliability and performance.

Murray Wilson, Sulzer UK argues that in each case, industry engineering expertise and commercial innovation are required to deliver these goals. Furthermore, the capital expenditure to improve reliability is most often far outweighed by the costs incurred by an unexpected failure and the subsequent costs of lost production. By taking a proactive approach and involving an expert maintenance provider, platform operators can deliver significant benefits to the business in the long term.

Improving performance

In the years following commissioning, the actual duty requirements of production pumps are likely to change – production rates may start to decline after the initial plateau period or the connection of additional wells may mean that potential production is being limited by the processing trains which were designed for lower volumes.

As equipment is pushed to operate significantly outside of its original design envelope, this can often cause operating problems which impact reliability and ultimately affect platform production. This also results in increased maintenance costs as operators and equipment specialists are required to overhaul plant more frequently.

Ultimately, the goal is to improve reliability and efficiency while reducing downtime and energy consumption, at the same time as satisfying API, ATEX, and many other engineering standards. However, this seemingly impossible task can be achieved through the implementation of preventative maintenance techniques and the adoption of the latest engineering designs for pumps.

Water injection pumps, seawater lift pumps, crude oil offloading pumps and fire suppression systems all require individual designs to deliver the best efficiency and productivity. At the same time, they also need specialist maintenance routines that will prolong reliability and effectiveness.

Proactive maintenance

A proactive maintenance regime is crucial to identifying potential issues before they develop into problems. However, this requires knowledgeable and experienced personnel to carry out the in-situ platform maintenance and these skills take time to perfect. The time required for this process can be greatly reduced by instigating a training program prepared by experts in equipment maintenance, who can pass on their collective knowledge in a structured and efficient manner.

In terms of through-life maintenance cost, preventative action is almost always less costly than corrective action, and adopting a carefully managed, proactive regime is crucial to identifying potential issues before they develop into problems. Two of the most prominent symptoms that occur prior to failure in mechanical and electrical equipment are increasing vibration and rising operational temperature.

Regular trending and analysis of radial and axial vibration signatures and thermographic/visual inspections of bearings, coils and electrical connections can prove invaluable. The latest developments in operational monitoring can be applied to existing assets and then used to determine the optimal point at which planned maintenance should be conducted.

Understanding cavitation

Most commonly seen on the pump impeller, cavitation is caused by a pressure difference, either on the pump body or the impeller. A sudden pressure drop in the fluid causes the liquid to flash to vapor when the local pressure falls below the saturation pressure for the fluid being pumped. Any vapor bubbles formed by the pressure drop are swept along the impeller vanes by the flow of the fluid. When the bubbles enter a region where the local pressure is greater than saturation pressure, the vapor bubbles abruptly collapse, creating a shockwave that, over time, can cause significant damage to the impeller vanes or pump housing.

In most cases, it is better to prevent cavitation rather than trying to reduce the effects on the pumping equipment. This is normally achieved by one of the three actions:

  • Increase the suction head

  • Lower the fluid temperature

  • Decrease the Net Positive Suction Head Required (NPSHR)

For situations where cavitation is unavoidable, or the pumping system suffers from internal recirculation or excessive turbulence, it may be necessary to review the pump design or minimize the potential for damage using a bespoke coating system.

Tackling erosion

The offshore production environment exposes pumps to harsh operating conditions and the abrasive nature of the fluids being pumped in certain processes on board can ultimately result in reduced efficiency and decreased pump performance.

Produced Water Re-injection pumps that are employed to force water back into the oil field and thus maintain the reservoir pressure needed to lift the oil to the surface are often subjected to high levels of abrasion. This is commonly the result of sand carryover from upstream filtration where there has been a process upset or where filtration systems are not adequate. Pumps that are used to transfer these fluids can experience significant levels of erosion, especially in areas with high flow velocities. The entrained sand particles act as an abrasive and higher working pressures only serve to compound the issue.

Pump manufacturers will aim to minimize flow velocities throughout the pump or design it in such a way that the flow velocities through close-running clearances are as low as practically possible within the duty for which the product has been designed. Under these circumstances, one of the most effective solutions is the use of specialist protective coatings, which can be used to protect selected areas in the pump.

Delivering the best coating system

With so many benefits arising from a specialist coating, it is important to determine the most appropriate materials, equipment and application procedures, otherwise the coating may degrade and fail prematurely. The processes and specifications used by companies such as Sulzer for applying coatings have been developed over many years and are essential to delivering a durable and reliable product.

To illustrate the importance of these procedures, especially in pump applications, consider the process of installing and removing an impeller. In many situations, the impeller is heated to allow it to be installed or removed from the drive shaft. This shrink-fit procedure can cause inappropriate coatings to be damaged during a routine maintenance operation. Sulzer has ensured that its coating technologies can withstand this thermal shock and continue to deliver long-lasting corrosion protection.

The importance of engineering expertise should not be underestimated and the benefits of engaging an experienced and well-resourced pump engineering company should not be overlooked. When dealing with complex engineering design, as seen in many pumping applications, it is very important to select to most effective and efficient resources to deliver a repair or refurbishment.

Meeting the logistical challenge

When it comes to complex equipment such as the large pumps encountered on offshore platforms, the most efficient delivery of maintenance will come from a provider of turnkey rotating equipment solutions. These organizations should have the necessary service facilities, trained & competent staff, logistical support and the service culture needed to support production critical plant.

In an ideal world, all the maintenance would be carefully planned and managed, but often it is necessary to respond to a situation immediately and deliver technical support, equipment, and materials at a moment’s notice. With a global network of service centers, capable of designing and manufacturing custom parts, Sulzer has not only the expertise but also the facilities and resources to meet the challenges faced by the offshore industry.

As a world-leading pump manufacturer, Sulzer offers state-of-the-art design and manufacturing facilities for oil and gas production, including subsea applications. This expertise is transferred throughout the company and used to support the maintenance and repair of any type of pumping asset.

 

Editorial contact: DMA Europa Ltd. : Philip Howe
Tel: +44 (0)1562 751436 Fax: +44 (0)1562 748315
Web: www.dmaeuropa.com
Email: [email protected]
Address: Europa Building, Arthur Drive, Hoo Farm Industrial Estate Kidderminster, Worcestershire, DY11 7RA, UK

Reader contact: Sulzer Turbo Services Houston Inc. :  Jennifer Cardillo, Marketing and Communications Manager, Americas Rotating Equipment Services
Tel: +1 713 567 2706 Fax:
Web: www.sulzer.com
Email: [email protected]sulzer.com
Address: Sulzer Turbo Services Houston Inc. 11518 Old La Porte Road La Porte, TX 77571 USA

 

About Sulzer:Sulzer is the leading worldwide, independent service provider for the repair and maintenance of rotating machines including turbomachinery, pumps and electro-mechanical equipment. With a global network of over 180 technically advanced manufacturing and test facilities, Sulzer offers a collaborative advantage that delivers high-quality, cost-effective, customized and turnkey solutions, providing its customers with the peace of mind to focus on their core operations.

Sulzer Rotating Equipment Services, a division of Sulzer, can accommodate all brands of rotating equipment including turbines, compressors, generators, motors, and pumps. With an enviable track record, dedicated teams of on-site engineers provide best-in-class solutions to ensure that the most effective service is delivered.

Sulzer is dedicated to providing superior service solutions to a range of industries including power generation, oil and gas, hydrocarbon and chemical processing, water, and air separation. Every solution is customized to suit the business needs of each application – whenever or wherever that may be.

With a long history of providing engineering service support, Sulzer is headquartered in Winterthur, Switzerland where it began in 1834. Today, with sales over US$ 3 billion and with approximately 14,000 employees, the Sulzer footprint spans across the globe. The core aim is to deliver a flexible and cost-effective service that optimizes customer operational efficiency and minimizes downtime.

For more information on Sulzer, visit www.sulzer.com

The image(s) distributed with this press release may only be used to accompany this copy, and are subject to copyright. Please contact DMA Europa if you wish to license the image for further use.

Visit the DMA Europa website for the full text in PDF format and the associated high-resolution image and video files: Website

These AR Goggles Are Making Faster Fixes in Oil Fields

By Milana Vinn

  •  Managing complicated repairs remotely saves oil companies time and money

Replacing parts of an outdated Baker Hughes turbine at a petrochemical plant in Johor Bahru, Malaysia, is about as fun as it sounds. The chore was supposed to halt operations at the facility for at least 10 days and cost $50,000 to fly a specialized U.S. work crew about 9,000 miles. Instead, once the equipment upgrade began last year, it took only five days and zero air travel—just an on-site technician wearing a dorky helmet camera and a few American engineers supervising remotely. They watched and coached the local crew through the helmet from a Baker Hughes site in Pomona, Calif.

Augmented-reality headsets, which overlay digital images on a real-world field of vision, are driving advances in industrial technology a few steps beyond FaceTime. While the likes of Apple, Amazon.com, Google, and Microsoft race to develop mainstream AR consumer gadgets in the next couple of years, they’ve been outpaced by oil companies looking for ways to cut costs. Some are simply buying the goggles and building custom software; others are investing directly in AR startups; still others are making the hardware as well. Baker Hughes, a General Electric Co. subsidiary, calls its rig a Smart Helmet. “Traditionally I would have to pay for two people’s travel, two people’s accommodations, and so forth to visit the customer’s site to do the mentoring,” says John McMillan, a regional repairs chief at the company whose team uses the helmet regularly. “It’s saved me a lot.”

Baker Hughes co-created its AR headset with Italian developer VRMedia S.r.l. and wrote its own software. BP Plc says it’s using AR glasses to bring remote expertise to sites across the U.S. Startup RealWear Inc.says it’s signed two dozen other energy companies, including Royal Dutch Shell Plc and Exxon Mobil Corp., to test its $2,000 headset. On March 6, AR software maker Upskill announced a fresh $17 million in venture funding from Boeing Co.Cisco Systems Inc., and other investors.

Remote gear can help experienced workers stay on the job even if they can no longer handle the travel or other physical demands of rig maintenance. “With these technologies, it’s more about the people than the hardware,” says Shell Executive Vice President Alisa Choong. Janette Marx, chief operating officer for industry recruiter Airswift, says remote work is also a good sales pitch to skilled technicians who might be lured by cushier gigs in Silicon Valley.

The bigger prize for oil companies is reduced downtime for equipment. Each day offline for a typical 200,000-barrel-a-day refinery can mean almost $12 million in lost revenue. Offshore oil and gas facilities often halt operations while waiting to fly specialists in by helicopter and, according to industry analyst Kimberlite International Oilfield Research, shut down 27 days a year on average. Little wonder, then, that analyst ABI Research estimates energy and utility companies’ annual spending on AR glasses and related technology will reach $18 billion in 2022, among the most of any industry.

Remote AR work doesn’t always go smoothly. Oil rigs often lack reliable wireless networks, and many headsets don’t yet meet the strict standards for areas near hazardous materials or high-risk jobs. Under certain conditions, for example, the headsets might emit dangerous sparks. That’s one reason many of the oil companies’ pilot programs remain just that for now.

Baker Hughes hasn’t had to worry about those issues yet, says John Westerheide, director of emerging technologies. In Malaysia, engineers were able to view equipment, send images to the headset screen, and talk directly to the on-site workers with few hiccups. “The way that we currently go to work,” Westerheide says, “that’s going to become much more virtual, interactive, and collaborative.” —With David Wethe

BOTTOM LINE – Energy and utility companies’ annual spending on AR and related technologies, which reduce travel and equipment downtime, is expected to hit $18 billion within five years.

Source Bloomberg

How to achieve technology innovation in the oil and gas industry

Many industries have exploited the exciting opportunities to create new products and markets, but the oil and gas sector has lagged behind and has resulted in the oil and gas industry failing to exploit the potential of new technologies

The oil and gas industry is now at a pivotal point in its evolution and we are now on the cusp of a transformation. The rise of new technologies, coupled with the ongoing global push for a reduced environmental impact, is altering the industry. Organisations across the sector face growing pressure to streamline their operations in order to improve overall efficiency and unlock additional barrels of oil to maximize revenue.

Despite these new hurdles, the oil and gas sector has been generally very slow compared to other industries when it comes to leveraging the potential of new technologies to innovate and optimize the performance of its systems. While companies have tackled the lower oil price with positive actions to reduce environmental impact, lower operating costs and increase efficiency, these gains must now be made sustainable, Therefore, we must truly transform the way we work.

See also: How can drones power the offshore oil and gas operations?

In light of these challenges, it is now vital that players, both new and old, fully embrace the potential of new solutions to kickstart the sector’s technological revolution and achieve the higher level of stability it desperately needs. Research conducted by McKinsey & Company found that the effective use of digital technologies across the industry could lower capital expenditures by up to 20%, reduce operating costs in upstream by 3 to 5% and by about half that that in downstream, demonstrating the clear cost-savings opportunities and efficiency to be had.

Investment in today’s visionaries for tomorrow

With new technologies emerging every day, many with the same promise of reducing costs and optimizing a business’ performance, ways to achieve technological advancement across the industry are now in abundance and oil executives must consider how best to accelerate this innovation to ensure its continued success on a global scale.

At the core of most of today’s technological innovation is either a desire or need to solve a particular problem. This way of thinking is often demonstrated best by those with a different vision of the industry’s future, who are able to identify the areas needing improvement and develop new solutions accordingly. The current oil and gas sector is no exception, and we are now seeing a rapid increase in the number of emerging oil and gas startups looking to move the industry away from its traditional practices and towards a new and more efficient way of operating.

In an industry where innovation is now the key to sustainability, the ‘if it isn’t broke, don’t fix it’ approach to development will no longer suffice. Larger companies must refocus much of their investment on the smaller, more ambitious technology developers to ensure revolutionary solutions enter the oil and gas market faster and enable them to prepare their existing solutions for success within a new era of innovation.

See also: 3 industries saving billions with cognitive machine learning

Accelerating changes to how we work and embracing new technologies will, therefore, be at the heart of the industry’s transformation; improving productivity, increasing efficiency and creating well-paid jobs. That said, it still vital that companies continue to balance this level of innovation with their existing knowledge of best practice for oil and gas organizations, to ensure a consistent position within the industry of both today and tomorrow.

One particular concept we have seen emerge across the oil and gas industry within the last decade is the digital oilfield, which refers to the real-time automation of operations through a combination of business process management systems and complex information technology, to ensure the simple management and tracking of the data. This has presented oil and gas companies with one way to streamline systems and achieve technology innovation, however, a greater investment in startups could see many other opportunities come to fruition. This means we must have a technology vision for the industry and a future where remote operations and automation are the norm.

Embracing a collaborative approach

One of the biggest challenges for oil and gas companies when achieving this degree of innovation on an industry-wide scale is finding the best way to integrate ground-breaking, new technologies. Embracing a more collaborative amongst new entrants and existing players is essential for streamlining the oil and gas landscape, reducing costs and overcoming the current lack of widespread technological development across the sector.

Partnered with a clear strategy for implementing this innovation across their business model, a greater convergence between the old and new will ensure companies are taking the best solutions from across the industry, not only to achieve innovation but to also give them a greater competitive edge within an increasingly in-demand and saturated market. This will require the industry, technology providers, government, regulators all working in partnership to deliver the technology transformation.

See also: Embracing hybrid cloud services in traditional industries

This kind of approach can provide huge benefits for all involved. For startups looking to enter the space, it can help them to connect with major investors and bring their solutions to market quickly and successfully as a result of increased investment, facilities, and resources. For the larger companies looking to invest in technology-driven solutions, this can help to change their outlook on their existing infrastructure and help to fill any technology gaps with revolutionary companies and products.

Oil and gas technology has not yet been at the forefront of the global innovation agenda, yet with demand for these services increasing every day, it is becoming increasingly ranked as a priority for change in many countries worldwide. It is now time to fully kick-start the industry’s technological revolution and the key to achieving this lies within the hundreds of emerging solutions being created by developers striving for sustainability and efficiency.

 

Originally published on Information Age 

Sourced by David Millar, TechX director, the Oil & Gas Technology Centre

Enterprise AI with the CIO and CMO: Better together benefits

Here’s a look at how AI is transforming entire enterprises, particularly through the lens of marketing and IT, and why the two teams must work together.

The massive impact AI has already had in marketing, and what we expect to see of it in the near future, is a hot topic here at MarTech Today. In my previous columns, we’ve explored how AI will be woven into marketing organizations, where it belongs in your marketing stack, and where CMOs should focus today to get the best results from their investments in AI.

There’s no doubt it’s become widespread; in fact, global spend on artificial intelligence is expected to grow from an estimated $2 billion this year to $7.3 billion per year by 2022, according to a study from Juniper Research. Yet, as abundant as it is, artificial intelligence is still a mystery to many.

Case in point: Only 33 percent of consumers think they use AI-enabled technology, yet new research shows that 77 percent actually use an AI-powered service or device.

Marketers are perhaps savvier to the opportunities than most, so it was no surprise that when my company, BrightEdge, recently asked over 500 marketers to identify the next “big trend in marketing,” 75 percent pointed to some type of AI application.

CMOs are challenged now to not only identify the right AI applications to solve specific problems but to then sell those to the CEO, other company leaders and the teams that will use the technology. Today, we’re going to broaden the scope and take a look at just a few of the ways AI is transforming entire enterprises, particularly through the lens of marketing and IT integration.

The CIO, CMO and AI

We learned in recent Adobe research that 47 percent of digitally mature organizations, or those that have advanced digital practices, said they have a defined AI strategy.

We all know that Google has one. The search giant dropped a whopping $3.2 billion acquiring Nest Labs, the largest of its $3.9 billion in disclosed AI acquisitions since 2006. All told, Google has invested $3.9 billion in AI deals, more than any other company.

Microsoft, Apple, Intel and SalesForce behind Google round out the top five companies making acquisitions of AI. (Intel takes the crown for the highest number of unique investments in AI companies, at 81.)

Sixty-one percent of over 1,600 marketing professionals from companies of all sizes pointed to machine learning and AI as their company’s most significant data initiative for next year, a MemSQL survey found.

But where is all of this interest and investment headed?

Take a look at Amazon for a sneak preview. The e-commerce giant completely rebuilt itself around AI, with spectacular results, according to a feature published in Wired. In 2014, according to the article, Srikanth Thirumalai, computer scientist and head of Amazon’s recommendations team, brought CEO Jeff Bezos the idea that Amazon could use deep learning to revamp the way recommendations work.

Thirumalai was only one department leader who included AI in his visionary proposal to Bezos. The revolution came, he told Wired, when leaders in isolated pockets of AI came together to discuss the possibilities and ultimately begin collaborating across projects. As Thirumalai told Wired:

We would talk, we would have conversations, but we wouldn’t share a lot of artifacts with each other because the lessons were not easily or directly transferable.

What followed was a revolutionary AI-centric management strategy that has baked artificial intelligence into Alexa, Amazon Web Services and almost every other facet of the $1 trillion company. Amazon takes a “flywheel” approach to AI.

Modeled after the simple tool that stores rotational energy, Amazon’s AI flywheel enables teams to build off of AI applications developed elsewhere in the organization. It’s an entirely collaborative approach that has proven a revenue generator, as well, by offering select tools to third-party companies.

That collaboration — the shift from competing for the budget for AI to working across departments — has paid huge dividends for Amazon. What could it do for your brand?

Solving persistent challenges

In 2018, CMOs have had access to more third-party AI-powered tool options than they can shake a stick at. Our firm found in recent research that more than 50 percent of marketers simply expect marketing technology providers to have native AI capabilities and consider it important or a must-have.

CIOs have been slower on the draw. Gartner’s 2018 CIO Agenda Survey found that just 4 percent of CIOs have already implemented AI in the corporate realm. However, 46 percent plan to do so in the near future. This doesn’t mean IT is being left behind. After all, the best use of AI isn’t about providing tools; it’s the catalyst in massive organizational change and even creating a new type of organization.

In the Texas A&M University System, for example, Cyber Security Intelligence reports that AI has been put to work in IT enhancing cybersecurity via Artemis, an intelligent assistant from Endgame.

“We monitor the networks for 11 universities and 7 state agencies,” said Barbara Gallaway, a security analyst at Texas A&M University System, told the publication.

Using an AI application that enables her staff to ask simple questions has helped train them in their jobs as a side benefit, she reportedly said. Her team now includes eight part-time student workers who don’t need extensive experience in dealing with security incidents in addition to nine full-time IT staff.

AI-powered products and services are helping IT teams improve productivity and effectiveness through logs analysis, employee support, enhanced cybersecurity, deep learning, natural-language processing and more. CIOs have the opportunity to transform IT from cost center to organizational trailblazer with AI.

However, as we’ve seen with Amazon, the real magic happens when CMOs, CIOs and other company leaders work together to facilitate collaborative workflows and enhanced customer experiences through AI.

Analysis of data is already a key AI focus for businesses, with on-site personalization the second most commonly cited use case for AI. Working across departments and projects, teams are discovering new and unexpected use cases for AI in their organizations.

For example, Mike Orr, IT director of digital transformation at Murphy Oil, shared the following story with CIO.com. Murphy Oil turned to an AI-powered system from Turbonomic to make recommendations about how to optimize their infrastructure while moving it from traditional on-premises and colocation to cloud and SaaS models. Once the company grew comfortable with the system, they began to trust it to perform placement and sizing automatically. Prior to the move, Orr had 4 1/2 full-time equivalents working on nothing but tickets. “Now it’s one-tenth of an FTE [full-time employee],” he says.

This is something we’re going to see more and more; in fact, Gartner predicts that while 1.8 million jobs will be eliminated due to AI by 2020, 2.3 million more jobs will be created in their place. Rather than the robots “stealing our jobs,” the impact of AI technologies on business is projected to increase labor productivity by up to 40 percent and enable people to make more efficient use of their time.

So, how can CIOs and CMOs work together?

  • As the worldwide volume of data continues to grow at some 40 percent per year, the CIO and CMO need to work closely and collaborate early on new initiatives. IT is a critical strategic partner for marketing and should be involved and consulted from conception and through all stages of planning.

  • Constantly connected consumers are generating a wealth of data for marketing — so much that most teams struggle to uncover the actionable insights that drive smarter, more informed campaigns. Who better than IT to assist? In addition to their information architecture and analysis prowess, IT is also in a position to share relevant insights with other departments as well. CMOs and CIOs must each take steps to come closer together. For CMOs, this means mastering not only the art of creativity and strategy but also the science of analytics. CIOs need to shift from a mindset of control and prevention to that of a facilitator and enabler.

  • The CIO is in a position to execute massive organizational change, while the CMO can be critical in selling it internally, to the rest of the C-suite and right on down to individual team members.

  • The CMO must be able to articulate and clearly define business goals for the CIO to evaluate and cost out. This is a give-and-take relationship that may require some negotiation but is sure to result in more purposeful tracking, measurement, and analysis.

  • Each must demonstrate a willingness to communicate on the level; to adopt a common vernacular and clear set of expectations of one another.

  • Both the CIO and CMO must enable and support integrated teams. This means not only giving employees the time and space to work together, but also giving recognition and sharing results out to the company when these partnerships result in innovative, successful uses of AI within the organization.

It all sounds great in theory, doesn’t it? In reality, changing up the complexities of traditional organizational hierarchy and deep-seeded business practice has proven incredibly challenging. Industry recommendations suggest CIOs and CMOs ensure they have these five prerequisites in place (with the CEO’s explicit support) as the foundation on which to build this relationship:

  1. Be clear on decision governance.

  2. Build the right teams.

  3. Provide transparency.

  4. Hire IT and marketing translators.

  5. Learn to drive before you fly.

In the age where the growth of big data brings complexity, with a universe of AI-powered possibility spread out before us, marketing and IT simply do better together.

ABOUT THE AUTHOR

Jim Yu is the founder and CEO of BrightEdge, the leading enterprise content performance, and SEO Platform. He combines in-depth expertise in developing and marketing large on-demand software platforms with hands-on experience in advanced digital, content and SEO practices

Credit Source: MarTech Today  

Published on September 19, 2018, at 2:42 pm

PRESS RELEASE: ExxonMobil to Join Oil and Gas Climate Initiative

ExxonMobil to Join Oil and Gas Climate Initiative
  • The CEO led global initiative aims to provide practical solutions to climate change mitigation

  • Focus areas include carbon capture and storage, methane reductions, energy efficiency

  • As part of the initiative, ExxonMobil to invest in research and development of long-term solutions to reduce greenhouse gas emissions

IRVING, Texas–(BUSINESS WIRE)–ExxonMobil today said it will join the Oil and Gas Climate Initiative (OGCI), a voluntary initiative representing 13 of the world’s largest oil and gas producers working collaboratively toward solutions to mitigate the risks of climate change.

“It will take the collective efforts of many in the energy industry and society to develop scalable, affordable solutions that will be needed to address the risks of climate change”

The CEO-led organization focuses on developing practical solutions in areas including carbon capture and storage, methane emissions reductions and energy and transportation efficiency. As part of the initiative, ExxonMobil will expand its investment in research and development of long-term solutions to reduce greenhouse gas emissions as well as partnerships and multi-stakeholder initiatives that will pursue lower-emission technologies.

“It will take the collective efforts of many in the energy industry and society to develop scalable, affordable solutions that will be needed to address the risks of climate change,” said Darren Woods, chairman, and chief executive officer of ExxonMobil. “Our mission is to supply energy for modern life and improve living standards around the world while minimizing impacts on the environment. This dual challenge is one of the most important issues facing society and our company.”

ExxonMobil has invested billions of dollars in researching and developing lower-emission solutions, including carbon capture and storage technology, next-generation biofuels, cogeneration, and more efficient manufacturing processes.

Earlier this year, ExxonMobil announced initiatives to lower greenhouse gas emissions associated with its operations by 2020, including reducing methane emissions 15 percent and flaring by 25 percent. Since 2000, ExxonMobil has spent more than $9 billion to develop and deploy higher-efficiency and lower-emission energy solutions across its operations.

OGCI was established following the 2014 World Economic Forum and formally launched at the United Nations Climate Summit the same year. Members include BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental Petroleum, Pemex, Petrobras, Repsol, Royal Dutch Shell, Saudi Aramco, and Total.

About ExxonMobil

ExxonMobil, the largest publicly traded international energy company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement: Statements of future events or conditions in this release are forward-looking statements. Actual future results, including the timing, results and impact of new technologies and future emission reductions, could differ significantly depending on the outcome of further research and testing; the development and competitiveness of alternative technologies; the ability to develop and scale pilot projects on a cost-effective basis; political and regulatory developments; and other factors discussed in this release and under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at exxonmobil.com.

Contacts

Exxon Mobil Corporation
Media Line, 972-940-6007

Source: Business Wire

TED Talk on methane and the oil and gas industry

This TED Talk heralds a new era in fighting climate change, from space

Watch this video to learn about a bold, new initiative to combat global warming

EDF and partners are launching a rocket to put a new satellite in orbit that could change the course of global warming in our lifetimes.

MethaneSAT will gather data about a pollutant – methane – that’s warming the planet, and put that data in the hands of people who can easily fix the problem.

EDF President Fred Krupp unveiled the groundbreaking project at TED’s flagship event in Vancouver, British Columbia, as part of The Audacious Project, successor to the TED Prize.

Just the first step will have the same near-term climate benefit as shutting down one-third of the world’s coal-fired power plants.

Fred Krupp, EDF President

Fred Krupp, EDF President

Our goal is to cut methane emissions 45 percent by 2025, and the data gathered by this satellite will make that possible. Nothing else will have the same kind of near-term impact at such a low cost.

The power of information

To learn the magnitude of the problem with methane, we collected data with drones, planes, helicopters, even Google Street View cars. It turned out that emissions are up to five times higher than what the government is reporting.

So we didn’t wait for Washington. We published our research, shared it with everyone and saw them take action. Leading oil and gas companies replaced valves and tightened loose-fitting pipes. Colorado became the first state to limit methane pollution. California followed suit, and the public joined in.

By bringing the right people to the table – and leveraging the best of technology, science, data and partnerships – we were able to make the invisible visible, empowering everyone. This enabled us to find new solutions that can be taken to scale and make a lasting impact.

And that’s what the emerging Fourth Wave of environmentalism is all about.

Source:  EDF Environment Defense Fund

BP deploys Plant Operations Advisor on Gulf of Mexico platforms

Advanced analytics solution, developed with BHGE, will be installed on BP’s upstream assets around the world

HOUSTON – BP announced today that it has successfully deployed Plant Operations Advisor (POA), a cloud-based advanced analytics solution developed with Baker Hughes, a GE company, across all four of its operated production platforms in the deepwater Gulf of Mexico.

The announcement comes after an initial deployment of POA proved the technology could help prevent unplanned downtime at BP’s Atlantis platform in the Gulf.

The technology has now been successfully installed and tested at BP’s Thunder Horse, Na Kika, and Mad Dog platforms – and it will continue to be deployed to more than 30 of BP’s upstream assets across the globe.

Diana and Barth keep a close eye on the plant

“BP has been one of the pioneers in digital technology in our industry, and co-development of Plant Operations Advisor with BHGE is a key plank of modernizing and transforming our upstream operations,” said Ahmed Hashmi, BP’s global head of upstream technology. “We expect the deployment of this technology not only to deliver improvements in safety, reliability, and performance of our assets but also to help raise the bar for the entire oil and gas industry.”

Built on GE’s Predix platform, POA applies analytics to real-time data from the production system and provides system-level insights to engineers so operational issues on processes and equipment can be addressed before they become significant. POA helps engineers manage the performance of BP’s offshore assets by further ensuring that assets operate within safe operating limits to reduce unplanned downtime.

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“BP has been one of the pioneers in digital technology in our industry, and co-development of Plant Operations Advisor with BHGE is a key plank of modernizing and transforming our upstream operations.”

Ahmed Hashmi, BP’s global head of upstream technology

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Now live across the Gulf of Mexico, POA works across more than 1,200 mission-critical pieces of equipment, analyzing more than 155 million data points per day and delivering insights on performance and maintenance. There are plans to continue augmenting the analytical capabilities in the system as POA is expanded to BP’s upstream assets around the globe.

BP and BHGE announced a partnership in 2016 to develop POA, an industry-wide solution for improved plant reliability. The teams have built a suite of cloud-based Industrial ‘internet of things’ (IoT) solutions that have been tailor-fit for BP’s oil and gas operations.

“The partnership between BP and BHGE has resulted in a unique set of capabilities that quickly find valuable insights in streams of operational data,” said Matthias Heilmann, president, and CEO of Digital Solutions and chief digital officer for Baker Hughes, a GE company. “Together, we are creating leading-edge technologies to automate processes and increase the safety and reliability of BP’s upstream assets. As we extend the solution globally, this will become the largest upstream Industrial IoT deployment in the world when complete.”

BP is currently in the process of deploying POA to its operations in Angola with additional deployments in Oman and the North Sea scheduled for 2019.

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Downloads

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About BP

BP is a global producer of oil and gas with operations in over 70 countries. BP has a larger economic footprint in the U.S. than in any other nation, and it has invested more than $100 billion here since 2005. BP employs about 14,000 people across the U.S. and supports more than 106,000 additional jobs through all its business activities. For more information on BP in America, visit www.bp.com/us.

About Baker Hughes, a GE company

Baker Hughes, a GE company (NYSE: BHGE) is the world’s first and only full stream provider of integrated oilfield products, services, and digital solutions. We deploy minds and machines to enhance customer productivity, safety, and environmental stewardship while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a startup – inventing smarter ways to bring energy to the world.

Further Information

Name: BP U.S. Media Affairs
Email: [email protected]

Name: Ashley Nelson
Phone: +1 925 316-9197
Email: [email protected]

Name: Gavin Roberts
Phone: +44 7775547365
Email: [email protected]

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