WSJ and the Digital Oil Field

The Energy Consulting Group specializes in

- evaluating the value and design of Intelligent Oil Field and Digital Oil Field concepts, applications, and organizations

- quantifying volumes and risks associated with oil and gas supply fundamentals

- strategy insight for the E&P service sector

Click here for more information about the Intelligent Oil Field (also called Digital Oil Field, Smart Field, i-Field). Also, please feel free to contact Bill Severns at insight@energy-cg.com for more information.

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The Wall Street Journal ran an article by Angel Gonzalez titled "ChevronTexaco's Digital Oil Field Aims to Aid Reserves, Productivity" describing ChevronTexaxo;s i-field efforts centered on their drill center called WellDECC. Bill Severns, founder and principal of the Energy Consulting Group, was interviewed for the article and quoted extensively. Below are key exerpts from that article.

Chevron's WellDECC System

Article: ChevronTexaco's Digital Oil Field Aims to Aid Reserves, Productivity

Below are key excerpts

Changing the way the industry works to achieve step change improvements productivity

"The digital oil field of the future has taken shape in ChevronTexaco Corp.'s new headquarters in Houston since early January -- and it looks like the set of a Cold War melodrama. In a screen-filled war room, technicians monitor real-time data flowing via fiber-optic cable and satellite links from sensors behind the drill bit below a Gulf of Mexico platform. By looking at the acoustic, temperature and pressure information, engineers can almost hear and feel the pulse of the drill, and receive e-mail alerts of any emergency on their BlackBerries if they are out of the office.

Developments like these could help add 125 billion barrels to global reserves in the next 10 years, according to Cambridge Energy Research Associates. CERA analysts predict digital oil fields could improve reserve recovery by 6%, raise production rates by up to 10% and cut operating costs by up to 25% through better reservoir management and reduced on-site crews. The technology would be a boon for oil companies being pressured to find and pump more oil amid a shortage of qualified labor.

The technology industry also stands to gain. International Business Machines Corp., which employs about 1,000 people in its petroleum-industry practice, estimates the market opportunity for digital oil field applications to be $1 billion between 2005 and 2010.

"The digital oil field has moved from being a fringe concept five years ago to the point where it's becoming an accepted part of the industry," said Bill Severns, managing director of The Energy Consulting Group and lead researcher for the CERA study. Challenges arise from oil companies' cautiousness when it comes to technology spending and potentially drastic changes in the workplace, but proponents are hopeful."

Total Asset Awareness

"According to Mr. Severns , information technology can provide companies with "total asset awareness" -- real-time monitoring of reserves, production and transportation. Live data would flow from sensors at the drill into remote operation centers, and from there into the accounting department and Wall Street."

Full Article

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If the full article is no longer available, feel free to contact us at insight@energy-cg.com for a copy.