PRODML and Energistics: Current Status

At our regular Hydrocarbon Allocation (HA) Forum in Aberdeen yesterday, we had a terrific “state of the union” presentation by Laurence Ormerod, Consultant and Project Manager for the PRODML standard. By the way, if you don’t attend our HA Forums then you might want to check out our website for details, and sign up for our mailshots. They are intended to be deliberately free from sales messages, and are generally held in Aberdeen at breakfast or lunchtime.

Laurence provided a really good summary of the history of standards development for production data.

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EnergySys Release US App

EnergySys is pleased to announce the US version of our Production Allocation Standard app is available for all US Onshore producers.

The US Onshore oil and gas market has several unique characteristics that can often make out-of-the-box solutions harder to implement, creating costly and time consuming projects. With this in mind, we saw an opportunity to develop a new version to cater specifically for the US onshore market

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Stop the projects, I want to get off

People often ask me how our cloud service for production data management, production reporting and production allocation is different from traditional solutions. This is a hard question to answer, as I want to describe the distinct values of my product and company without seeming to denigrate the competition.

In addition, it’s really hard to provide quantitative information. We think an EnergySys solution is hands-down the fastest, most cost-effective and most configurable choice for customers, but this is largely based on anecdotal evidence. It’s rare for two companies to have delivered systems for the same assets under the same conditions, though we do have a fair amount of experience of replacing competitor systems, so an exact comparison is difficult.

However, during the course of a discussion with a company looking to replace a competitor system I realised that part of the answer lay in the conversation we were having. This user kept talking about projects. Projects to implement new assets. Projects to add new fields or wells. Projects to upgrade the basic software. Everything was a project. And projects required substantial time, money and resources, even just to get a basic upgrade of the software done. In fact, for this user an upgrade cost almost as much as the original project implementation! EnergySys isn’t like that. 

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How we can fix standards efforts in oil and gas

I’ve spoken at several conferences about the failures in standards efforts in oil and gas, and I’ve commented on the reasons for these failures. I’ve also highlighted the key characteristics of successful standards efforts in other industries. In the short version, this boils down to my well-worn aphorism “adoption beats perfection”. The longer version is contained in the seminal paper by Hanseth and Lyytinen (“Theorizing about the Design of Information Infrastructures: Design Kernel Theories and Principles”, 2004) which, despite its title, contains material that is relevant for all standards efforts. They identify five design principles:

  1. Design initially for usefulness
  2. Draw upon existing installed base
  3. Expand installed base by persuasive tactics to gain momentum
  4. Make it simple
  5. Modularize by building separately key functions of each infrastructure, use layering, and gateways

A cursory glance at the standards documentation from bodies like Energistics and PPDM demonstrate a failure to adhere to some, if not all, of these principles.

This has led me to consider the goals of standardisation in oil and gas, and what might help with their adoption.

I can see three obvious scenarios where standards could be useful. There are probably more, but let’s start with these three.

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The costs of unreliable data

In a recent survey we carried out, (download the report here), we asked professionals involved in Hydrocarbon Accounting (HCA) how confident they were in their data. Around 65% said that they were “not at all” or only “somewhat” confident in the data they were using as input to the hydrocarbon allocation process. This situation is problematic, given that allocation is all about determining the division of ownership of hydrocarbon products, and that mistakes can have a real and substantial financial impact. Inadequate systems and processes can make it difficult to manage routine issues like mismeasurements, and initially small problems can give rise to a cascade effect with consequences that are difficult to unravel. A failure of compliance is not the least of the potential problems.

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Apache Run EnergySys for Production Reporting on Forties and Bacchus fields

Apache North Sea are now using the EnergySys Production Allocation Cloud on their Forties and Bacchus fields in the UK North Sea.

Ross Littlewood, Production Engineering Team Lead for Apache, talked to David Petherick about why they selected their production reporting solution, and how the project was implemented.

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EnergySys Announce New Pricing Model

EnergySys have announced a new pricing model for the Production Allocation Cloud. David Petherick spoke to Managing Director Peter Black about how this model works, and how it will affect new and existing customers…

1. What’s new, Peter? Can you outline the new pricing model for EnergySys?

We want everyone to enjoy the benefits of the cloud services available at energysys.com, including Production Reporting and Production Allocation. 

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EnergySys delivers corporate reporting in the Production Allocation Cloud

Dr. Esther HayesDavid Petherick, Head of Marketing, talked to Dr. Esther Hayes, Operations Director at EnergySys, about how one of our customers is using the EnergySys Cloud platform for Corporate Production Reporting.

 

1. What is corporate reporting?

What we are referring to is reporting across a number of corporate assets – typically an asset will have its own production reporting system with its own allocation logic – but for corporate purposes, you need to present all the assets in a single report, with rolled-up figures, in order to see the big picture. It’s a top layer of reporting, for use by the corporate executive teams who are charged with running the business.

2. How did our customer realise they could carry out this process using our software – surely it’s for production allocation? 

In any production allocation and reporting situation, you get a lot of data, and this particular client had a number of assets in different countries, which used different reporting systems from various suppliers. They wanted a way to reliably report production data drawn from all of their assets to the corporate entity. Because the EnergySys platform is inherently designed for flexibility and customer configuration, it can receive data from other systems. So while some of their assets use the EnergySys Production Allocation Cloud to manage their production allocation, we can also take data from other production reporting software.

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