Current State 2019 / Future State 2025 - DSA Roadmap

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Current State 2019 / Future State 2025This section of the DSA Roadmap report describes the current state in terms of industry initiatives, earlyadopters progress and outlook, the anticipated future state with a discussion on the transition to thisfuture state.Table of ContentsIntroduction . 3Current State Of Drilling Systems Automation . 3Drilling Rig Maturation . 3SPE DSATS . 4Communications Standards . 4Semantic Modeling . 5Development of a Collaborative Repository . 5DSATS Sub-Committees . 5DrillBotics. 6Education . 6Conclusions – The Way Forward . 6IADC Advanced Rig Technology Committee (ART) . 7Operators Group on Data Quality (OGDQ) . 7GCE Node . 9IRIS (NORCE). 10Automated Drilling . 10UT RAPID Program . 11SPE DSATS Assessment . 12System automation progress by some early adopters . 13Shell . 13Apache . 16National Oilwell Varco (NOV) . 17Schlumberger . 18Nabors. 22H&P . 23Precision Drilling . 24

4 of 14: Current State / Future State 2025Huisman . 25Future State Of Drilling Systems Automation . 30Iteration of Downhole Brain and DP telemetry System. . 32Future State: Two Ends of the Spectrum of Operations . 33Low cost land-based well manufacturing (highly repetitive wells that could become fully autonomous). . 33High cost, adaptive, deepwater offshore applications. . 35Subsurface Model Integration. 37Invisible Lost Time – the Value Generator . 37Current / Future State Transition . 39Integrator Path . 40Collaborative Path . 43Integrator versus Collaborator . 44Shift to Drilling Performance . 44Drilling Contractor Contraction. 46References . 48Version 19 05 31 Public ReleaseCopyright 2019Page 2

4 of 14: Current State / Future State 2025IntroductionThe earliest specific description of an automated drilling rig is the 1970s National Automateddrilling machine that was placed on a Walker-Neer Manufacturing Company Apache seriesSingles land rig (Figure 1). This drilling machine drilled a series of wells in Texas for Mobil. It didnot become commercial because of difficultiesmaintaining the hydraulic fluid system after eachrig move (quick connectors had not yet beendeveloped) and the destruction of electronicvalves, or tubes, during rig moves (pretransistorage) that involved lifts and drops of the computercabin (Source: Bob Bloom, retired NOV CTO).Automation in drilling has advanced over the past38 years but has not, until recently, beendeveloped and adopted as systems automationthat encompasses all the interconnected drillingsystems. Initial applications of automation in theupstream oil and gas industry have been inDynamic Positioning (DP) systems that maintainfloating drilling units on station automatically.Automated DP systems have achieved extremelyhigh reliability through technology, commissioning,Figure 1: Oil and Gas Journal NADM 1971and redundancy. This chapter containsexamples of the current state of drillingsystems automation at various companies and is not exhaustive. Companies are invited tosubmit short descriptions of their current state with graphics.Current State Of Drilling Systems AutomationDrilling Rig MaturationDrilling rigs have matured, from mechanical drives through Silicon Controlled Rectifier (SCR) DCelectric drives, to AC electric Variable Frequency Drives (VFD). Variable Frequency Drive rigequipment has enabled a significant step forward in electronic control and thence automation.Recent developments that have moved the industry toward systems automation include: Automated drillers that today electronically adjust the drill line feed rate from thedrawworks based on variations in hook load and pump pressure, which equates todepth of cut. More advanced systems continuously compute the most appropriateVersion 19 05 31 Public ReleaseCopyright 2019Page 3

4 of 14: Current State / Future State 2025 weight on bit (WOB) and drill string RPM and feed these parameters to the drawworksand top drive VFD.Additional use of hard-wired drill pipe—drill pipe with wire incorporated throughout itslength that transmits data at 56,000 bits per second— has realized further gains inclosed loop control by using downhole measured parameters for WOB in place of thesurface measurement, which is interpolated to WOB. The latter often results insignificant errors in high-angle and horizontal wells in which along drill string friction issignificant.Mud pump start-up rates may be pre-programmed into the pump controller when therig is initially rigged up by the rig manufacturer. This ramp up can be revised in thecontroller for actual mud rheology and borehole conditions, although such changes aremade infrequently.Specific downhole tools have developed remarkable control and automationcapabilities, including autonomous rotary steerable systems (RSSs), which use closedloop control to steer the wellbore path in three-dimensional space.SPE DSATSThe SPE Drilling Systems Automation Technical Section (DSATS) is an all-volunteer organizationthat develops recommended solutions for achieving interoperable drilling automation systems.Members from inside and outside the industry bring rich and diverse experiences, viewpoints,and requirements into a cooperative environment. This allows collaboration on guidelines andstandards that are needed to advance the application of DSA while opening opportunities in thecommercial arena for innovation and competition.DSATS may be viewed as an incubator for drilling systems automation in which membersbenefit from open participation in symposiums, workshops, and webinars. Members developand publish ideas and learnings that fuel further developments, which acceleratecommercialization of those ideas in groups both inside and outside of DSATS.Some DSATS accomplishments and work are described below. This is not an exhaustive list, butit does illustrate the tremendous strides in systems automation that are being made byenthusiastic volunteers.Communications StandardsThe first fruitful result of collaboration was the formation of a task force—the communicationssub-committee—to research digital communications standards. The oilfield is composed ofmany individual companies, all with products and services and widgets, and systemsautomation is only possible if all those components use the same digital protocol tocommunicate.Version 19 05 31 Public ReleaseCopyright 2019Page 4

4 of 14: Current State / Future State 2025The committee developed a model for rig-site communications and selected OPC UA as thedigital protocol for that model. In 2011, the committee demonstrated control of a top drivesimulator of one organization, by the control software of another organization, using the modeland OPC UA. Since that time, OPC UA has become the digital protocol of choice for drillingsystems automation. Most recently Statoil selected it as its instrumentation and measurementssystems connectivity protocol for all company assets.Over the past seven years, as company roles in it have been further clarified, the underlyingstructural model systems automation has changed. During that period, there has also been anoticeable shift in perspective within DSATS. The original DSATS focus was heavily rig-oriented,while more recent focus has been broader. The rig is now viewed as the surface footprint of asystems engineering process that reaches from the formation, at or ahead of the drill bit, toenterprise transactional and planning systems.Semantic ModelingThe communications committee next focused on how information could be transferred usingOPC UA or, in essence, how to develop the semantics of the language for systems automation.For this task, called “Drill-A-Stand,” the group focused on the events and information that mustbe communicated among all parties for the use case of drilling a single stand.In 2014 two-day workshop in Halifax, Canada, the communications group managed to completethe task. This led to the realization of the undertaking’s complexity and to the definition of subtasks: the roles of organizations in systems automation, semantic models for communications,and cybersecurity for communications and each is being pursued.The roles task is evolving a new model for rig-site communications. The semantic task is beingpursued by DSATS members working between standards bodies, OPC Foundation andEnergistics, to map WITSML into the OPC UA semantic model. And DSATS actively supports theIADC ART group that has a sub-committee focused on Cybersecurity.Development of a Collaborative RepositoryRecently, Energistics has agreed to develop a repository for DSATS sub-committees, such as theDocumentation and the Drilling State sub-committees. Not only does this provide a hierarchicalrepository in which versions can be tracked, it provides a means of transitioning DSATSguidelines into Energistics standards.DSATS Sub-CommitteesDSATS activities include various sub-committees. Past activities have been closed out and newones formed. Subcommittees are formed to investigate and develop solutions to various issuesthat are hindering the rate of adoption of DSA, or that can accelerate uptake for universalbenefit. Openings exist for new initiatives through which SPE DSATS could enable industryVersion 19 05 31 Public ReleaseCopyright 2019Page 5

4 of 14: Current State / Future State 2025solutions and DSATS current committees, their objectives, and their progress can be viewed at 2013, DSATS launched a drilling automation competition for universities. Named DrillBotics ,this annual competition now attracts teams of undergraduate and graduate students frommany universities around the globe. In the event’s first phase, based upon theirtechnical/design proposal, a select number of teams are selected to proceed to the annualcompetition. Each of these selected teams then construct a small drilling machine and applysensors and control systems to automatically drill through a block of unknown composition thathas been developed and constructed to cause drilling dysfunction. Judges evaluate thecompetitors and assess the winner. The annual winning team travels to the SPE AnnualTechnical Conference and Exhibition (ATCE) to present a paper on their accomplishments.(See papers at runs regular webinars with invited speakers from outside and within the industry. It isnot uncommon for these webinars to reach more than 100 online attendees, with additionalviewers logging in for playbacks. In addition, DSATS organizes two symposia annually; one isheld at the SPE/IADC Drilling Conference in conjunction with IADC ART, and the other at the SPEATCE. Workshops, which usually cover two or three days, are periodically organized by DSATS.Attendees are experts from inside and outside the industry and the workshops generatediscussion, and solutions of issues seen in both business and technical systems automationarenas.Conclusions – The Way ForwardThe SPE Drilling Systems Automation Technical Section (DSATS) is an energetic all-volunteerorganization. Despite the significant industry downturn, by 2016 it had grown to 1,700members. Members from inside and outside the industry bring rich and diverse experiences,viewpoints, and requirements into a cooperative environment. While DSATS now works onguidelines, the cooperative effort with Energistics is laying the foundation for future standards.As envisioned, DSATS has become an incubator for drilling systems automation. Members workin collaborative subcommittees to develop and publish ideas and learnings that fuel furtherdevelopments. This collaboration accelerates downstream competition and innovation, whichleads to the commercialization of these ideas.Version 19 05 31 Public ReleaseCopyright 2019Page 6

4 of 14: Current State / Future State 2025IADC Advanced Rig Technology Committee (ART)This committee was formed by IADC to improve safety and efficiency through sound operatingprocedures, design of automated systems, and standardized automation. ART subcommitteesinclude: BOP Controls Cybersecurity Drilling Control Systems Future Technology Much of the work of these subcommittees is related to mmittee/The IADC ART committee is taking a lead industry role in developing cyber security plans toprotect drilling rigs’ control and automation systems.Operators Group on Data Quality (OGDQ)A Chesapeake engineer explored the issue of data quality from rig sensors for currentoperations (not fully automated). Large sensor errors were found (Figure 13) that alerted theindustry to a major systemic problem, which resulted in the formation of a stand-aloneOperators Group for Data Quality (OGDQ). Link: http://ogdq.orgVersion 19 05 31 Public ReleaseCopyright 2019Page 7

4 of 14: Current State / Future State 2025Figure 13: Drilling Data Error Matrix Errors Found Through Verification on SiteKey observations from collecting this data are:- Every rig has had devices significantly out of calibration- Most rigs have rig-ups or practices that will lead to device error or drift.- Errors are common to all rigs and contractorsThis group was formed to assess the extent of the problem and to develop calibration andmaintenance processes to specify as required data qualities in drilling contracts. The initialprogram created a common contract specification, which these companies adopted. Later thegroup sought to develop industry standards for sensors to be included in contracts referencedthrough such bodies as IADC. This effort is an attempt to raise the quality and accuracy level ofdata being provided to the industry to a level that will ensure good and safe drilling practices.The first focus of this group is on surface measurements made on the drilling rig.The ODQP determined that the impact of poor data quality: impairs our ability to measure, analyze, and improve our processesVersion 19 05 31 Public ReleaseCopyright 2019Page 8

4 of 14: Current State / Future State 2025 affects our ability to share knowledge and best practicesmay lead to or exacerbate safety issues like well controlmay negatively affect well deliverability and productivitywill effectively prevent the development and implementation of automation(Figure 14).Figure 14: Quality Data ReasonsGCE NodeGCE Node is a funded Norwegian Global Center of Expertise (GCE) technology cluster composedof 76 companies located in southern Norway. It has several research, development, andinnovation projects that are focused on topside drilling systems. These include common datagathering initiatives, offshore mechatronics, and robotics. The NorTex (Norway-Texas) datascience cluster is an umbrella organization related to GCE Node. NorTex has played a key role inVersion 19 05 31 Public ReleaseCopyright 2019Page 9

4 of 14: Current State / Future State 2025organizing workshops in Norway and in Houston focused on data science. GCE Node is primarilyinterested in fostering cooperation between companies in “noncompetitive” areas.IRIS (NORCE)IRIS, the International Research Institute of Stavanger is equally owned by the University ofStavanger and the regional foundation Rogaland Research and is a recognized research institutewith a focus on applied research. Rogaland Research was established in 1973; IRIS wasestablished in 2006. Today, IRIS remains an independent research institute with research andresearch-related activities in petroleum, new energy, marine environment, biotechnology,social science, and business development.IRIS believes automated drilling has large potential and seeks to be among the lead researchinstitutes within this area. The institute has developed methodologies and procedures focusingon automatic drilling procedures, such as automated drilling surveillance and systems for activefailure prevention. IRIS will put further efforts into presentation and evaluation of algorithmsfor automated coordinated control of drilling machinery, pump rates, chokes, and drilling fluidproperties.The institute performs fundamental research into well flow and wellbore mechanics in thedrilling process. The development of accurate process models is achieved through advancedphysical and mathematical modelling combined with experiments and tests carried out in thelaboratory, on the virtual rig, and at full-scale in the field and at the Ullrig Drilling Center.In 2018, IRIS was absorbed into NORCE, a Norwegian Research Conglomerate.Automated DrillingIRIS has chosen to concentrate on automated drilling because many future oil and gasprospects will be highly complex and challenging and will be characterized by narrow geopressure margins that leave little room for human error. Researchers believe that increasedlevels of automation will result in more accurate pressure control and more rapid response todrilling anomalies, which will improve drilling efficiency and safety.IRIS has contributed significantly to automated drilling through several research projects, two ofwhich, DrillTronics and DrillScene, have resulted in commercial products marketed throughSekal. IRIS has participated in demonstrations and pilots to make this technology available tothe market and has ongoing research projects aimed at taking new steps within automation,including: Adapt DrillTronics for Wired pipe Automated Drilling Fluid Processing Automation of Formation Integrity Tests, Leak-off Tests and Extended Leak-off TestsVersion 19 05 31 Public ReleaseCopyright 2019Page 10

4 of 14: Current State / Future State 2025 Advanced fluid transport modellingInstrumentation, measurements, and standards.The primary focus for a DrillTronics installation is to enhance drilling operations and maximizeproductive time during drilling by: Applying operational safeguards to the drilling control system that ensure pressureinside the wellbore remains within the geopressure window, even during transientoperations, such as starting the mud pump or tripping in or out of hole Providing automatic safety triggers that react to drilling incidents, such as pack-offs, andtake corrective action to prevent problems from becoming more serious Enabling automatic sequences that offer greater efficiency and consistency across arange of drilling operations while ensuring that the well is protected by using safeguardsand automatic safety mechanisms. These sequences allow the driller to focus on themost important information while executing standard operations. Predefined automaticfunctions implement the required operational sequences and manage associatedparameters when operating the mud pumps, draw works, and top drive.UT RAPID ProgramThe University of Texas at Austin launched a drilling research consortium named RigAutomation & Performance Improvement in Drilling, or RAPID. The objective of this program isto deliver automation well construction solutions from researchers from multiple engineeringdisciplines. Current research focus areas include: Automated drilling controlIntelligent mechanization and automationDownhole modeling, simulation, and empirical validationMonitoring, data analytics, and ‘Big Data’.Research areas of interest include: Remote, directional drilling control, and geo-steeringAutomated control for adverse conditions (i.e. stick-slip, whirl, bit-bounce)Automated control for wellbore stability and lost circulation preventionAutomated managed pressure and dual gradient drillingAutomated completion, stimulation, fracturing, and intervention tasksSurface automation and mechanization (pipe handling, BHA assembly, drilling whilecirculating)Version 19 05 31 Public ReleaseCopyright 2019Page 11

4 of 14: Current State / Future State 2025 Mechanization for rig move and transport, mob/demob, and skidding and rig walkingAutomated optimal control for trippingRig design for automationNovel sensor design, new sensor integration, data quality, data analytics, and sensorstandardsHigh-frequency downhole and surface sensor analysisSPE DSATS AssessmentThe fractured nature of the digital backbone in drilling operations has led to three distinctislands of development: downhole, surface, and remote.1Of the three, downhole systems have reached the highest levels of automation—includingsemi-autonomous systems—largely because until recently only low bandwidth, high latencyMWD communications systems were available. Surface systems at the rig site have becomehighly mechanized, with automation of drilling components, such as soft-torque systems.Remote systems have flourished in recent years with the advent of digital surfacecommunications but are employed primarily to monitor drilling operations.The increasing availability and use of digital technology, in particular “bit-to-shore”communications backbones that make real-time modeling and simulation possible, coupledwith strong technical drivers, such as increasingly complex and expensive wells and human dataoverload, has led to an increased interest in systems automation. Other drivers include healthand safety, and retention and distribution of knowledge.There is no apparent technical reason preventing the drilling industry from attaining high levelsof drilling systems automation. While some areas, such as instrumentation and measurement,are in dire need of attention, there is a healthy “technology push” for drilling systemsautomation.However, the “business pull,” that is the financial case for investing in drilling systemsautomation, is currently weak (unorganized and unfocused). The reason for this lack ofcohesion appears to be the highly diverse nature of the drilling industry, which is composed offour main segments—operators, service companies, rig contractors, and equipment suppliers.This diversity, combined with the performance moderation attitude that results from themultiplicity of day rate contracts, creates an environment that discourages the industry-widecoordination necessary to promote drilling automation.However, certain recent industry collaborations have led to interoperability and standardsinitiatives, which have opened the automation space to all four drilling industry segments.Version 19 05 31 Public ReleaseCopyright 2019Page 12

4 of 14: Current State / Future State 2025Existing companies within the industry are exploring the potential of drilling automation andnew companies that directly address drilling systems automation are forming.A dichotomy in automation objectives has developed. The first is the “well manufacturing”objective aimed at cost-restrained, highly repetitive wells having similar profiles. The second isthe “complex well” objective driven by technically challenging, unique well profiles and largevolumes of data.An operator may control the well manufacturing objective using heavy rig automation, whichhas numerous analogs in other industries, such as mining and car manufacturing. A riskinherent in this approach is cost constraints that drive operators toward low-cost solutions,cheap sensors, and commoditized components that may prove detrimental to efficiency in thelong term.The complex well objective has yet to find a business champion, or integrator. It appears,however, that a business model change that clearly identifies the champion and providesfinancial benefits to those who deliver value through automation would be a solution. Initialsteps within the complex well arena, by both service companies and equipment suppliers, havefocused on drilling optimization and managed pressure drilling.Regardless of the final business model, interesting days lie ahead for the industry as technologymatures and reaches the field. While the industry may not have the time to adopt drillingautomation in a strategically planned initiative, the application of technology in an openstandards environment may ultimately tip the industry into drilling systems automation.Finally, drilling systems automation is not pushing a button and drilling a well. It involves ablend of human and computer control that delivers an economically viable, safe, and fit-forpurpose borehole. This implies a sophisticated level of design that keeps the driller andengineers in the loop and always aware of the situation.System automation progress by some early adoptersShellA major operator, Shell, has developed a SCADADrill (Supervisory Control and Data Acquisition)system supported by RigME that has undertaken various drilling activities in automated mode.Shell now licenses the application of this system.SCADADrill is Shell’s internal version

IADC Advanced Rig Technology Committee (ART) This committee was formed by IADC to improve safety and efficiency through sound operating procedures, design of automated systems, and standardized automation. ART subcommittees include: BOP Controls Cybersecurity Drilling Control Systems Future Technology

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