Abstract

Over the next decade, the E&P industry will witness a revolution in the development and management of hydrocarbon assets. The integration of time-lapse seismic, subsurface modeling, dynamic reservoir simulation, smart wells and production facilities will yield significant improvements in recovery and productivity as well as a reduction in the environmental impact of oil and gas developments. Increasingly fields will become ‘Smart’. ‘Smartness’ involves the systematic application and integration of control engineering and IT concepts to oil- and gas field management. By combining data gathering, integrated modeling and control elements in so-called ‘value loops’, optimization opportunities are created in every phase of the resource lifecycle.

Different data sources may be combined to reduce uncertainties in reservoir models. Reservoir management may be improved by controlling individual zones in wells, acting on down-hole flow and pressure information. Another element of ‘smartness’ is introduced when in future the transport, separation and processing of well fluids can take place at surface, on the seabed or down-hole. This creates additional development options and flexibility.

The paper proposes a conceptual framework for the understanding and design of E&P ‘smartness’. It covers the fundamental elements of smart developments and discusses Shell case studies and projects to show the value of using Smart Well and Field technology. Shell's approach to building an industry leading Smart Fields capability and stimulating the development of key technologies is discussed.

The Changing In lifecycle terms the oil industry appears to be entering ‘middle age’ early in the 21st century.

Landscape Dependent on the reserves definitions used, we are fast approaching the point of having produced close to half of the current proved world reserves of oil. The high-margin oil and gas fields outside the Middle East have been developed or will be developed shortly.

The environment in which the oil industry operates is also changing. Some trends and developments that are expected to have a medium-term impact on the industry are:

  • The increasing knowledge- and information intensity required to make and keep developments economically attractive

  • A developing shortage of skilled and experienced staff, often referred to as the ‘big crew change’ combined with falling enrollment in technical and PE courses

  • The increasing demands that are made on the industry in terms of environmental impact, energy efficiency, supply security and safety

  • The introduction of e-business concepts and cross-linkages between technical, operational and business management, particularly in liberalized gas markets BLOCK 1 - - FORUM 4 307 SMART F

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