IMPROVING ASSET

PERFORMANCE

Operational excellence
in the oil and gas industry.
IMPROVING ASSET PERFORMANCE
 Introduction

World energy demand is set to grow by 37 percent by

2040 according to the IEA’s World Economic Outlook
2014. To meet forecast demand, it is estimated that the
industry needs to invest over $900 billion a year in
upstream oil and gas development by the 2030s.
By this time, unconventional gas will have accounted
for around 60 percent of global supply growth.
At the same time, producers are facing unprecedented challenges around
market volatility. Resource availability, safety and regulatory issues, and the
current skills gap are other key challenges the industry needs to address.
IMPROVING ASSET PERFORMANCE

Market
volatility
Volatile oil markets affect industry and consumers alike, but producers
are among those most impacted. The need is for cost containment and
efficiency, not just in the short term, but for the future. Employees need
to be able to access multiple sites from wherever they’re located, and have
the right amount of contextualized data to help make the right decisions.
This helps to minimize downtime by predicting failures before they occur,
taking appropriate actions to avoid such failures, or respond fast to an
unexpected problem by being able to accurately and quickly diagnose
the issue and move the correct parts and personnel to the production site.

Resource

availability
As the oil and gas industry is seeing more of its existing oilfields mature,
growing demand has to be met in other ways, often in hostile, remote
locations. Subsea installations, for example, present a variety of challenges
including water pressure, temperature, access for service, and the cost
of deploying vessels for installation and service. In existing fields, mature
assets with declining production need very efficient maintenance
schedules to keep production profitable.
Risk and
regulation
Regulations and reputation dictate that producers take
every measure possible to avert health, safety and
environmental incidents. Effective production control,
condition monitoring and predictive shutdown systems
are fundamental to safe and secure operations in remote
locations. Used to best advantage, rather than being a
barrier and an additional cost, an effective safety strategy
using the right equipment can be a productivity driver,
maximizing efficiency and minimizing downtime.

Talent and

experience

60%
In the oil and gas industry 60 percent of employees are over the age of 45*.
Continuing staff shortages and high staff turnover have an impact on asset
safety. At the same time, operations move further offshore in search of
natural resources and into new environments in sometimes remote locations
onshore. Staffing facilities such as these requires a precise blend of training,
experience, knowledge and career years in hand that can be hard to find,
and can involve expensive relocation.

* The Society of Petroleum Engineers http://www.europeanoilandgas.co.uk/article-page.php?contentid=12698&issueid=382

IMPROVING ASSET PERFORMANCE

Automation
can provide the solution
As circumstances change, digital automation technologies support the
industry in finding new ways to ensure demand is met. Cloud, mobility and
analytics offer the flexibility and the real-time production information to help
operators respond appropriately to dynamic market conditions and make
better business decisions wherever they’re based.

Having the right staff with the right equipment reduces operating costs
and increases productivity. Essentially, the technology available today makes
it possible to get closer than ever to operational excellence and the business
value attached to this.
Capitalizing on
The Internet of Things
Across industry sectors, smart production processes are seeing devices and
machines beginning to control and regulate themselves. Initiatives globally
are applying the concept of the Internet of Things (IoT), connecting devices
that communicate via the internet. Guided by our industrial expertise, and

IoT
accelerated by advances in the enabling technologies that bring the IoT to life,
we’ve developed The Connected Enterprise, a model that enables producers to
harness information and put it to work.

It drives better decision-making, exposes inefficiencies and sparks collaboration.

It helps operations managers profitably manage and improve industrial
processes, and IT executives reduce network complexities and exposure to
cyber security risks. It shares productivity – improving information to workers
across the organization in a context that is meaningful for each role.

The oil and gas industry can learn from other industrial sectors, and adapt
technology to suit its own specific needs and meet its own business goals.
IMPROVING ASSET PERFORMANCE
Operational
excellence
in terms of OEE
Energy companies have implemented process
instrumentation systems to increase uptime and
optimize production. However, the energy industry
has historically lagged behind other industries in the
area of asset performance, often referred to in
manufacturing as operational equipment effectiveness
(OEE). The Aberdeen Group reports that on average, oil
and gas companies have OEE of about 73 percent
compared with process industry leaders with scores in
the high 80s.
Combining operations, maintenance, and quality measurements in a single
key performance indicator, overall equipment effectiveness is an objective
way of collecting the lifecycle performance of processing equipment.
Variations in OEE for a piece of equipment directly relate to the business
performance of a plant. The events and responses to those variations can
be used to turn condition-monitoring data into valuable maintenance,
reliability, and safety information.

There are differences, of course, between oil and gas and other industries.
In manufacturing, if a machine produces 10,000 parts, and it goes down,
at the end of the shift it will be a number of parts short of its target. In oil
and gas, if a compressor goes down, it reduces production, but the dynamics
are more complex, so it is more difficult to measure the impact.

However, achieving leading-class OEE scores has been shown to help

dramatically improve bottom-line results in capital-intensive industries like
oil and gas production. In a hypothetical 20,000 barrel-a-day facility, assume
that the facility is currently running at a level below optimum availability.

A one-point improvement in the facility’s availability score would result in a

minimum one percent gain in production. Over the course of a year, that one
percent gain could amount to roughly 73,000 barrels of oil produced, resulting
in a significant financial gain from the facility through improved throughput.
IMPROVING ASSET PERFORMANCE

How remote monitoring can

improve
efficiency
Historically, accessing information from pumps, lifts,
wellheads and other equipment was a labor-intensive
and sometimes risky process. Onshore, workers had
to drive from well to well and physically gather data.
Offshore, most platforms needed to be manned
to monitor and operate it or operations and
maintenance crew needed to move by boat from
platform to platform to do this.
Today, oil and gas companies can remotely access and monitor machine
data with fully automated and integrated systems to help capture and send
data from a remote-asset site to a centralized location.

2
Remote monitoring technologies enable operators to access and manage
equipment and production data across multiple applications from one
single location. This technology seamlessly integrates software, hardware
and sensors to extract important operational information across a variety
of production equipment and applications and feeds it back to a centralized
location in real-time. Centrally-based operators can continuously monitor
current operating conditions, troubleshoot any potential issues, and make
process adjustments at an earlier stage to help increase uptime.

Beyond remote monitoring, these systems gather, analyze, contextualize

and share information to help oil and gas producers optimize operations.
By pairing production intelligence with intuitive dashboards and historian
functionality, operations-management systems can automatically collect
production data, calculate KPIs and present easy-to-understand displays
via wireless, remote technology.
24/7
Practically speaking, remote monitoring reduces downtime by eliminating the
need to fly maintenance specialists out to a problem site, which takes time, costs
money and lengthens equipment downtime. It supports safer working practices
in that fewer staff are required to work in hostile environments. And it addresses
the skills gap, with centrally-based experts available in real-time, enterprise-wide,
24/7, making better use of time and reducing wage bills.
IMPROVING ASSET PERFORMANCE

Using
connectivity
to support operational excellence
By connecting devices and equipment using modern
technology, operators are better able to gather
and analyze data, and transform it into actionable,
real-time production information. These connecting
technologies enable collaboration between global
and remote operations, assets and people, resulting
in faster problem-solving and improved innovation.
Equipment and devices are transformed into intelligent assets capable
of reporting a wealth of production information including energy and
diagnostics, with the convergence of IT and OT driving a fully integrated
approach, from the plant floor throughout the organization and across
the supply chain.

This provides access to the vital business information that supports better
decisions, increasing productivity and helping to meet demand more
precisely and cost-effectively.

In oil and gas, a connected production environment breaks down

geographical barriers, securely providing access to data, onshore and
offshore, that has traditionally been trapped in operations’ historians and
contextualizing it to provide the right intelligence to the right people.
Actionable information is related to key performance indicators and
improved business value, including production throughput, process
quality, asset health and energy efficiency.

From a practical perspective, instead of flying an expert out to a remote

oil and gas site to troubleshoot a problem, video technology can allow
remote experts and onsite workers to share data and collaborate
on solving an issue. This can allow people onsite and the
management team at the home office to look at well
and sensor data to manage a number of onshore or
offshore wells and work with value chain partners
and customers to solve problems more quickly.
IMPROVING ASSET PERFORMANCE

Implementing
a more intelligent Information
(IT)/Automation (OT) network
To help oil and gas producers take steps towards
connected production, we have developed
a five-stage maturity model that incorporates
measures and best practices necessary to achieve
effective change in both technologies and
organizational cultures. We have also partnered
with Cisco Systems®, Microsoft®, Panduit®, and
others to establish an OT/IT knowledge bridge
for industrial operators.

STAGE 5
STAGE 4 Collaboration
Analytics
STAGE 3
Defined and
organized
STAGE 2 working data
Secure and capital (WDC)
upgraded
STAGE 1 network and
Assessment controls
IMPROVING ASSET PERFORMANCE

Hilcorp
remotely monitors critical
assets via the cloud
Hilcorp Energy Company, which operates
oil-drilling platforms off Alaska’s rugged Kenai
Peninsula recently upgraded its pump controls
using medium-voltage drives, which are remotely
managed by Virtual Support Engineer from
Rockwell Automation. This standard off-the-shelf
service helps to keep this critical piece of
equipment operating within specified parameters.
Real-time monitoring speeds troubleshooting, with data from
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Hilcorp’s drives coming directly to a Rockwell Automation
global support center via the cloud where it is analyzed in
real-time, 24/7/365

Industry expertise provides peace of mind. Rockwell Automation

l 
support centers are hubs of deep domain expertise that help
fill in gaps in in-house knowledge and experience

Data analysis reduces costs. Rockwell Automation engineers

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not only aggregate and analyze historical data, but also develop
additional algorithms and logic to help the oil producer deploy
cost-saving, preventative maintenance programs to reduce the
effects of future downtime
M.G. Bryan
pioneers cloud-computing asset
performance management
M.G. Bryan, a leading heavy-equipment and
machinery supplier to the oil and gas industry,
knew it needed a way to remotely monitor
the performance of its trucks in real-time, from
anywhere. The company gained real-time visibility
into remote-asset data with a unique cloud-based,
remote asset management and fleet management
system designed and implemented by domain
experts at Rockwell Automation. M.G. Bryan’s
story demonstrates many of the industrial benefits
that come with migrating to the cloud:
Monitoring asset health and improving reliability. Remote dashboards
l 
detail the condition and process performance of an individual
vehicle, as well as maintenance trends related to entire fleets

Scalability with lower upfront overhead. Fleet can grow from

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dozens to hundreds of assets/users with little-to-no additional
IT capital expenditures

Multi-tenant access. The OEM, its customers and vendors across

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the supply chain have access to specific content based on security
permissions, enabling truck operators in the field to directly
interact with suppliers

Competitive advantage. M.G. Bryan has differentiated itself in

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this market because its innovative cloud approach reduces project
risk and cost of ownership, while improving time-to-value
IMPROVING ASSET PERFORMANCE

Production
intelligence solution enhances
visibility for energy pipeline operator
A major North American transporter of liquid
and natural gas lacked access to reliable data
from their pipeline network, threatening
performance, profitability and even pipeline
and product integrity.
Cybertrol Engineering developed a production intelligence strategy
for the pipeline network based on the FactoryTalk® software suite for
improved integration with varied information sources. The new
system dramatically improved visibility into operating conditions:

Increased the scalability and reliability of information collected

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at pump stations from a dozen points to over 1,200 points

Expanded access to system data and reports previously only

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accessible or interpretable by engineering staff

Increased integrity and speed of data, enabling deeper diagnostics

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and troubleshooting – significantly reducing maintenance costs
and improving overall pipeline performance
Pipeline operator
uses standardized control solution
to increase uptime and reduce
cost of ownership
CNP-MRT faced challenges in efficiently controlling
the performance of their reciprocating engine
compressors, a significant factor in moving the
highest quantity of natural gas at the lowest cost.
The PlantPAx™ process automation system vastly improved asset visibility
and production information gives station operators the data necessary to
respond faster on maintenance, operation and flow control issues.

Scalable, open-architecture platform provided advanced

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reciprocating engines and compressor control, continuously
collecting critical operating data, simplifying communications
and lowering installation costs

Tightly integrated visualization software enabled instant access

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to real-time information and operational trends

Advanced networking, monitoring and diagnostic capabilities

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cut system downtime, increasing preventative maintenance
capabilities, and reducing repair costs
IMPROVING ASSET PERFORMANCE

The key benefits

of connectivity
More flexible operations
Productivity is increased with smarter, more flexible operations,
meaning better utilization of global assets, lower costs and
improved time-to-market.

Information anywhere
Turning data into information available in real-time to anyone,
anywhere creates a smarter, more productive workforce.
Using global expertise, both internal and external, helps to
keep operations running at capacity.

Protected assets
With visibility across operations, you can better protect your
company’s assets wherever they are, through a safer, more
secure architecture.

Optimized assets
A connected production environment improves energy usage,
equipment reliability and longevity, and provides expanded
capacity from existing assets.

Improved maintenance
Automating maintenance can increase efficiency and minimize
risk of catastrophic failures and process disruptions, while
maximizing equipment reliability.
IMPROVING ASSET PERFORMANCE

Rockwell Automation, Inc. (NYSE:ROK), the world’s largest company dedicated to industrial automation,
makes its customers more productive and the world more sustainable. Throughout the world, our flagship
Allen-Bradley® and Rockwell Software® product brands are recognized for innovation and excellence.

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For more information on our oil and gas solutions, please visit:
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FactoryTalk, PlantPAx and Virtual Support Engineer are trademarks of Rockwell Automation, Inc. Cisco Systems is a trademark of Cisco Systems, Inc.
Microsoft is a trademark of the Microsoft Corporation. Panduit is a trademark of the Panduit Corporation.

Publication OAG-AP027A-EN-E – May 2015 Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.