Digital Modernization of Oilfields Digital Oilfield to Intelligent Oilfield. Karamay Hongyou Software Co., Ltd.

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1 Digital Modernization of Oilfields Digital Oilfield to Intelligent Oilfield Karamay Hongyou Software Co., Ltd.

2 Professional technologies and information technology enhance the development of the oil industry. Technical Development Trend of the Oil Industry Professional technologies + Information Industry development technology Management and utilization of oil and gas reserves are enhanced with the development of information technology, professional oil technologies, and other technologies, such as oil reserves simulation, intelligent oil wells, expert system, and information integration. This allows oil enterprises to obtain rich information, identify the production and operating status, increase the response speed and operation accuracy, manage all assets in a unified manner, improve decision making, and optimize the business and operation. Technical development trend of the oil industry: 1. Digital 2. Real-time 3. Integrated 4. Optimized 5. Intelligent

3 Problems Facing Oilfield Development Development efficiency Production safety Environmental protection Increasing exploration difficulty Problems facing oilfield development High exploration costs in existing areas of oilfields Urgent production tasks in rapid development Mass data Insufficient human resources Wide distribution of oilfields

4 Digital Solution Digital solution to address the challenges Improves the research capability and reduces exploration risks. Reduces the construction period and exploration costs. Enables information sharing and removes the distance barrier. Digital solution to enhance management innovation Reforms the business mode and improves decision making. Optimizes the enterprise process and increases work efficiency. Enables coordinating development and ensures the cutting-edge status in competition.

5 Problems in the Digital Construction of Oilfields Problems and experience in the IT enablement Stage 1: line of business (LOB) optimization Stage 2: process optimization Stage 3: enterprise optimization (SOA) Business 1 Processing center Business 2 Business 1 Business 3 Business 2 Business function Business 3 LOBs operate independently, with shared business activities. The LOBs are optimized, without enterprise-class collaboration. The enterprise improves the business structure, centralizes common business activities in the processing center, and standardizes the process. The information system is not applicable to the new business model. Enterprise functions are modularized, creating a business function network based on task specialization. Modules are standardized, improving and expanding enterprise capabilities. Modules are seamlessly integrated and loosely coupled through the process.

6 Strategy-layer and Top-layer Design of Digital Oilfields IT investment Data acquisition and processing era Tactical Transformation period Strategic Information era Information planning and integration At present, most enterprises in China are in these stages. Turning point Initial stage Expansion (spreading) stage Control stage Integration stage Six-stage growth model of (Richard.L.Nolan) for the information system Data management stage Mature stage Time Digitalization and informatization requirements are considered at the strategy layer. ;The development complies with the point-to-plane mode,,shifting from system construction to information planning and integration.

7 Digital Development of Oilfields: Digital Oilfields Digital development: Digital oilfields lay a foundation for highly efficient oilfield development. Production command Network Digital oilfield A digital oilfield is the virtual presentation of an entity oilfield on the computer. It is a huge and complex information system that consists of the network, system, data, standards, and management.

8 Digital Development of Oilfields: Digital Oilfields Objectives of a digital oilfield: complete facilities, enriched data, integrated systems, comprehensive standards, and all-round policies 5. Management Development strategy data center Management system 4. Standard Data standard Switching standard Management policies Information standard and management policies 3. Data Oilfield exploration Oilfield development Business management Professional data Enterprise decision 2. Software Oil reserves simulation Economic evaluation Production analysis Application system Geographic information Production management 1. Network LAN WAN Safety monitoring Virus defense Flow control Information infrastructure Leakage monitoring

9 Digital Development of Oilfields: Digital Oilfields Framework of a digital oilfield: top-layer design framework Digital oilfield Enterprise information portal and integrated application system Production management information system, business management information system, professional application system, 3D visual application system, and geographic information system (GIS) Geological model, oil reserves model, business process model, and enterprise management model Data center Strategy layer Integration layer Application layer Space database Exploration and Ground Oil and gas Business development engineering... database database storage and transportation database and management database Project database Data layer Professional database Standards and specifications, network, computer software and hardware, and production automation equipment Basic layer

10 Digital Development of Oilfields: Digital Oilfields Digital application system: business-oriented application architecture Business and process Corporate business Earthquake deployment Well location design Business model Plan Plan Plan Models Data model Data type Attribute Application system UI Application Drilling engineering Well testing engineering Oil reserves analysis Oil reserves analysis Data type Attribute UI Application Oil reserves development Geology Geology Data type Attribute Oil reserves evaluation Business process Business to data Data to system System to business

11 Control layer layer Digital Development of Oilfields: Digital Oilfields Exploration Evaluation Development Production Storage and transportation Working layer Decision Exploration Dispatch and plan command system Geological for exploration design and production Information Exploration system scheme for oil and gas exploration and production Data management system for Comprehensive exploration rights research Data management system for geographical prospecting Geological survey Data management system for oil and gas traps Earthquake Data explanation management system for exploration wells Well Drilling deployment management system Well drilling, Well logging, and management metering system Well metering management Earthquake system Oil reserves Information evaluation system for oil reserves evaluation Reserves data management Oil reserves system description Data management system for oil reserves outcomes Reserves calculation Cost control and analysis system Development scheme... system Wells Underground for evaluation 3D information system Real-time monitoring system for well and site data... system Development Investment plan plan management Production system plan Information Engineering system design for oil and for gas oil development reserves and production Development and planning Development management scheme system revision Oilfield capacity construction system Oil and gas development management system Auxiliary design system for development measures and schemes of oil reserves Oil Operation extraction data management process system for production boilers Automatic Underground production work data application system Real-time monitoring system Increase for in well output and site and injection data Production management for Production oil and data gas management wells system for oil extraction plants Data management system for Measures underground design work Data management system for drilling engineering Dispatch and command system for exploration and production... system Ground Oil and engineering gas wells information system Power Well grid selection management GIS Water supply management GIS Transportation plan Dispatch Operation system for scheme oil and gas production and operation Oilfield Management material management network and station system monitoring... system Volume-based sales Automatic data management Well-specific system for storage measurement and transportation of oil and gas Oil and Collection gas storage and and transportation processing GIS Oil... and system gas transportation

12 Digital Development of Oilfields: Digital Oilfields Digital features: Physical oilfields are presented on the computer, providing data for digital applications. Complete historical data Massive data storage Geographical prospecting Traps Reserves Drilling Well logging Well metering Well testing Oil extraction Working Planning Scheme Design Research Production Operation Testing Storage and transportation Geographic information Enriched data types Diversified data applications Materials Equipment Finance Human resources Safety Environmental Production Research Management Decision protection Production management Production command Business management Safety and environmental protection Research support

13 Digital Development of Oilfields: Digital Oilfields A digital oilfield is a virtual display of the oilfield entity on the computer, enabling data acquisition, querying, and interaction with the oilfield entity. Satellite transmission Central database Decision command Research planning Cooperative work Production site Automatic control Data processing Exploration well Development well Geologic structure Management network Station Features of the application system: Unified architecture: performs planning and design in a unified manner, enabling integration. Uniform platform: reduces the construction difficulty and improves the construction speed. Oil reserves Integrated applications: integrates all oilfield applications and enhances the application results. Independent property rights: reduces the upgrade and improvement costs, shortens the development period, and improves the adaptability.

14 Oilfield informatization stages Digital Development Trend and Stages of Oilfields After the construction of the digital oilfield is completed, oilfield informatization progresses to the intelligent stage. Manual stage 1 Manual operation Limited amount of digital information Information stored in an independent computer system No human-machine interface No professional system Primary stage of digital development 3 2 Popularization of computers Digitalization of professional data and business information Digitalization of the production management process and business process Visualization Preliminary integration Mature stage of digital development Full coverage of computer applications in various business fields Integration of the production and operation management process, business process, and computer system Comprehensive standardization Large-scale data integration and application integration Preliminary automatic processing Intelligent stage 4 5 Management and application of knowledge base and expert experience Application of expert experience in management and decision making Automatic control and processing, reducing manual intervention Prediction and optimization of production Response in advance

15 Description Trend Development Trend of Information Technology Development Trend of Information Technology Development trend of information technology Information acquisition Information transferring Information sharing Processing and utilization Information display Infrastructure Machine-tomachine Mobile Integrated Intelligent Personalized Virtualized Data acquisition on any equipment Update of existing industrial equipment High real-time requirements For example, radio frequency identification (RFID) Real-time information acquisition Rapid changes in terminals For example, iphone, Android, and 3G One-stop information integration and sharing Shared model, standard, and control For example, enterprise service bus (ESB) Optimized scheme based on mass data analysis Advanced technologies, such as the data mining, knowledge base, and expert system User-friendly interfaces, providing superb interaction Flexible combination based on user requirements and behaviors For example, Web 2.0 technologies, such as Asynchronous JavaScript and XML (AJAX) and rich Internet application (RIA) Centralized resources and virtual public services For example, cloud computing RFID iphone applications Integrated platform Web 2.0 applications

16 Driving Force for Digital Modernization of Oilfields Digital modernization of oilfields modernization of productivity Two points of view 1 Duration of the digital stage: Digitalization as the basis Oilfield informatization level Digitalization is a long-term stage, requiring continuous effort. 2 Follow-up development of Digital stage to intelligent stage digitalization: 此 处 补 图 Digitalization process Intelligent stage Smart stage 此 处 补 图 In-depth integration of industrialization and informatization Modernize industrialization Improve industrialization Digital modernization is a practice of the in-depth integration of industrialization and informatization, to finally modernize informatization and improve industrialization.

17 Digital Oilfield to Intelligent Oilfield A digital oilfield is the presentation of an oilfield entity on the computer, where the computer functions like human hands. An intelligent oilfield is built on a digital oilfield to improve simulation and analysis, automatic processing, and expert support, where the computer functions like human brain. In simple terms, digitalization allows you to view things at will and intelligence allows you to do things at will. Academician Li Deren: Digitalization Even if a (true) scholar never leaves his house, he can know about everything under the heavens; Intelligence Even if a (true) scholar never leaves his house, he can do everything under the heavens Digital oilfield Collection Transmission Quality control Storage Release and application Intelligent oilfield Awareness Analysis and warning Decision Execution Optimization

18 An intelligent oilfield provides six typical features. Digital Oilfield to Intelligent Oilfield We believe that: A digital oilfield consists of data and information. An intelligent oilfield consists of knowledge and wisdom. All-round awareness Simulation and 1 Virtual experts analysis Decision making Production support optimization 2 Automatic operation and control Intelligent Remote diagnostics Automatic processing Timely warning Trend prediction 3 Trend prediction 4 Decision optimization Machinetomachine Real-time awareness Comprehensive association The core of an intelligent oilfield is to maximize the values of data. An intelligent oilfield uses models and expert knowledge base to support intelligent decision making and oilfield management on a computer.

19 Expand the knowledge base Digital Oilfield to Intelligent Oilfield An intelligent oilfield is the advanced stage of a digital oilfield. It seamlessly integrates information and business based on mature digital oilfield applications and uses models and expert knowledge base to support intelligent decision making and oilfield management on a computer. eight Eight intelligent application fields: Strategic decision making application Covers Exploration fields Oil reserves management Covers Production eight management business fields, Oil well management including Intelligent exploration, site oil reserves management, Production support and production management Storage and transportation Upgrades three types of infrastructure 1. All-round awareness network 2. Automatic acquisition and control equipment 3. Cutting-edge IT infrastructure Constructs two management centers 1. Integrated operation center oriented at management 2. Cloud computing-based data center oriented at IT Provides three types of Virtual expert-based research support environment Analysis and conclusion Reasoning and explanation working Decision making support environment 1. Automatic Exploration operation and development collaboration and control working environment Internet 2. Active optimization environment 3. Virtual expert-based Knowledge research base support environment

20 Digital Oilfield to Intelligent Oilfield Real-time sensors, manual acquisition, and data integration Integrated operation center and collaboration working environment Automatic processing system An intelligent oilfield provides the following six enhanced capabilities: 1. Oilfield information acquisition and integration 2. Data simulation and analysis 3. Prediction and warning 4. Automatic processing 5. Application of expert experience and knowledge 6. System self-improvement and continuous optimization of production Simulation, analysis, prediction, and optimization Virtual expert support

21 Summary Thoughts on oilfield digitalization 1 2 Digital oilfield: builds on the standard digital oilfield model Intelligent oilfield: integrates business and information in an in-depth manner based on the digital oilfield, Discussion We are open to your suggestions. Thank you for your time.

22 Thanks for inviting us to this forum, and I wish the forum a great success!