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Collaborating Authors
value stream
Abstract Aera Energy LLC was formed in 1997 to be a low cost operator and producer in California. However, the low oil price in 1998-1999 forced an examination of all operations in the office and in the field. Cutting costs, better timekeeping, or reducing the scale of operations would not be sufficient without a step-change gain in efficiency. This step-change gain came from using principles and concepts developed in the automobile and construction industries. Toyota's twin pillars of just-in-time production and the ability of anyone to stop production rather than pass-on defects, coupled with level-loading of work processes, and reducing waste were introduced. Toyota's principles were enhanced by the addition of Last Planner concepts developed for the construction industry. When both were implemented for reservoir characterization and reservoir development work, significant process improvements resulted. The resulting improvements are now being used throughout the company to improve quality by removing waste and reducing errors, to measure processes, and to improve cycle times. The unconventional diatomite reservoirs and oil sand reservoirs at the giant Belridge field produce 63,000 BOPD from 5,200 producing wells and 2,000 injection wells. The many drilling, completion, and workover rigs have a constant appetite for new wells. To maintain production and cost targets, everything in the office has to run reliably and efficiently at all times, plus support field operations. Different aspects of Toyota's principles and Lean manufacturing are illustrated using reservoir characterization project work, day-to-day reservoir surveillance, and the development work needed to plan and schedule new wells. The processes and projects typically have multiple customers and suppliers—internal and external. Everyone, including knowledge workers, needs to work as a single system with a manufacturing mentality and to strive for continuous improvement. Customers of the knowledge work supplied by the geoscientists and reservoir engineers have benefitted greatly from the introduction of the Lean processes and the resulting smoother and more effective work flows. In 2011, the Development team's Lean activities were recognized by the Association for Manufacturing Excellence, and the team received the Manufacturing Excellence Award that recognizes "continuous improvement, best practices, creativity, and innovation." The oil industry has a reputation of being slow to adopt new technologies and techniques. However, a Lean Manufacturing mentality introduces new ideas and ways of performing knowledge work that may change this paradigm while contributing to the bottom-line with reduced cycle-time and improved quality. A significant additional benefit is that geoscience and engineering professionals can spend more time doing creative work and less time fixing problems or reacting to system upsets—all while reducing waste.
- North America > Canada (0.92)
- North America > United States > California > Kern County (0.67)
- Overview > Innovation (0.68)
- Personal (0.48)
- Geology > Geological Subdiscipline (0.87)
- Geology > Rock Type > Sedimentary Rock > Siliceous Rock > Diatomite (0.55)
- Geology > Petroleum Play Type > Unconventional Play > Heavy Oil Play (0.34)
- Geology > Rock Type > Sedimentary Rock > Clastic Rock (0.34)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
- (31 more...)
- Reservoir Description and Dynamics > Reservoir Characterization > Geologic modeling (1.00)
- Reservoir Description and Dynamics > Reservoir Characterization > Exploration, development, structural geology (1.00)
- Management > Strategic Planning and Management > Project management (1.00)
- Data Science & Engineering Analytics > Information Management and Systems > Knowledge management (1.00)
Improving Efficiency of Oil & Gas Development through Lean Concept
Mustapha, Adetoun (Shell Nigeria Exploration and Production Company Limited) | Ageh, Ebenezer (Shell Petroleum Development Company of Nigeria Limited) | Maduekwe, Emeka (Shell Nigeria Exploration and Production Company Limited) | Ojulari, Bayo (Shell Nigeria Exploration and Production Company Limited)
Abstract Population and economy are two key factors considered in global energy demand projections. With rapidly growing world population, energy security is a global concern. The 2011 World Energy Outlook projected that from the 2010 levels, global oil demand will grow by 14% while gas use will rise by more than 50% as well as account for over 25% of world energy demand by 2035. With hydrocarbons no longer easily accessible, success in the future of oil and gas will require meeting various challenges, including ensuring that both discovered and new resources can be produced in economically and environmentally sound manner to offset the natural field decline. Also, shareholders, non-government organizations and local communities are seeking for more value and demonstration of social responsibilities from the industry. Additionally, governments and policymakers are imposing stricter regulations that impact reserve maturation and production. One of the ways stakeholders' expectations can be addressed is by making the most use of resources to lower costs and improve operational efficiency. Lean is a business improvement technique with a collection of tools to eliminate ‘'waste" in an operation and reduce cycle time. Cost reduction is achieved by improving the flow of material and information through the system and continuously finding ways to reduce the amount of work by taking out unnecessary or "waste" steps in processes. Originally developed by the Japanese automobile company, Toyota and widely employed in the manufacturing industry, more industries are adopting the Lean concept. This presentation will showcase Lean application in hydrocarbon development and production. Case studies will be provided to demonstrate how Lean implementation has helped and can be used to eliminate wastes in processes and bring about a culture change. Business results are faster hydrocarbon maturation, enhanced production, sustainable cost reduction and stakeholders reaching mutual agreement faster on sustainable development/environmental issues.
- Africa (1.00)
- North America > United States (0.94)
- North America > United States > Wyoming > Washakie Basin (0.99)
- North America > United States > Colorado > Washakie Basin (0.99)
- North America > United States > Texas > East Texas Salt Basin (0.89)
- (2 more...)
Abstract This paper presents an insight into the thorny issue of ensuring, through allocation and value adjustment, that parties on a joint or commingled system receive their share of the thoroughly mixed end products and proposes a novel methodology for accomplishing this in an operable and equitable manner. Introduction High infrastructural cost, limited rights of way or corridors, common destinations (e.g. Power, LNG or NGL plants), industry deregulation and blossoming strategic alliances are all driving a shift from monogamous pipelines toward shared transportation services.Increasingly, traditional methods of allocation & value adjustment have been failing to safeguard the interests of all shippers on these commingled systems. Traditionally, allocation has been done primarily on the basis of energy content based on the assumption or in some cases the reality that, "a BTU was a BTU".In other words, one BTU of methane was equivalent in value to one BTU of propane or any other component.Where there was a shift in BTU content per volume and a resultant shift in value due to the gas being richer or leaner, complicated value adjustment calculations were employed to attempt to achieve equity.Now, because of multiple product markets, the base assumption is no longer valid.The net result is the increasing inability of traditional methods of allocation & value adjustment to satisfy shipper's demands and assure that value delivered into a commingled pipeline is equivalent to value redelivered at exit points.This paper proposes an effectual solution to this dilemma. The proposed method of allocation and value adjustment is based upon component tracking and value-streams and is the closest equivalent to individual pipelines available.This methodology was developed in response to the perceived needs of parties on the 76 km. long 56" diameter Cross-Island Pipeline (CIP) in Trinidad W.I. (See Figure 1 and End note 1).This is currently the largest diameter gas pipeline in the western hemisphere and is being laid to satisfy joint shipping by BP, BG, Repsol YPF, The National Gas Company of Trinidad & Tobago Limited (NGC), Tractebel and others. These multiple parties will be shipping gas streams with widely varying compositions to LNG plants and other industrial and power concerns.Key features of this project are the contemplation of multiple delivery and redelivery points, a wide variety of gas compositions and high volumes in the order of three (3) billion cubic feet of gas per day. A search of the SPE eLibrary resource netted only one paper[1] which addressed a pipeline management system but without value allocation and adjustment.In the following sections, a brief industry overview and outline of the drivers behind the challenge; a more detailed discussion of the issues involved; and a detailed examination of the proposed solution methodology, will be presented.