Creating a Smarter Oil and Gas Industry, Part 1: The Internet of Everything and the Digital Oilfield

Creating a Smarter Oil and Gas Industry, Part 1: The Internet of Everything and the Digital OilfieldAs a new employee at Cisco and coming from the Oil and Gas industry, I have to admit that I had never heard of the Internet of Everything (IoE), and I was skeptical.  However, given the mindshare it has within the Cisco community, I was open to learning.  After gaining a better understanding of IoE’s underlying concepts of connecting people, process, data and things, I’m now a believer and an advocate for how it is transforming the energy sector.

It may come as a surprise, but the O&G industry is already adopting the Internet of Everything. Although the O&G industry is traditionally slow with regard to adopting new horizontal technology concepts, it is in fact a leader in the IoE space thanks to the development of the Digital Oil Field (also called the e-Field, i-Field or Smart-field). A concept first envisioned over a decade ago, the Digital Oil Field has been evolving since the late 1990’s, and now is an embedded strategy in all NOC’s, IOC’s and many small to large independent oil and gas companies across the globe.

To really understand how the Internet of Everything is helping drive the momentum of the Digital Oilfield, it’s best to look at an example. Originally published in the September 2005 issue of Harts E&P magazine, the scenario outlined below illustrates that even a decade ago, O&G leaders were envisioning a more connected work experience thanks to IoE.

“Renee is an Asset Team Leader for a global oil company. The first thing she does in the morning is check a TV monitor hung on the wall of her kitchen for messages.

This morning, she notices an exception report from the field – apparently well AP 47 is producing below expectations, last night it dropped below the set point for an exception alert. The set point was determined from a model of the field, one which includes a reservoir model based on geophysical, geological, petrophysical data, and models of the surface facilities and pipelines.

She uses her secure access to the Internet to shut the gas lift valve on 47 and enable an automatic pressure buildup analysis (PBU).

After lunch, she meets with her asset team, which is scattered around the globe. She describes the problem with well 47 and uses an online collaboration tool to show them the production history and model results. She also describes the sensitivity studies from her simulation work earlier in the day.  “Any suggestions?” she asks.”

This scenario illustrates how the Internet of Everything can help the Oil and Gas industry connect, collaborate, and compete.  In my next post, I’ll be taking a closer look at what the future holds and just what is possible. It’s clear that we are just beginning to leverage all the benefits of IoE.

About Brad Bechtold

As Director of Cisco Canada's Oil and Gas vertical business, Brad Bechtold is responsible for developing and leading Cisco's go to market strategy for Oil and Gas. In his role Brad is working with industry partners, education institutions, and Oil and Gas organizations to align Cisco's technology solutions to the critical challenges facing the industry today. With more then 25 years in Oil and Gas experience Brad Bechtold brings industry relevant knowledge to Cisco Canada's Industry Transformation Team. Prior to joining Cisco, Brad spent 18 years with Halliburton. A global leader in the energy services sector. During his tenure with Halliburton, Brad spent 13 years in a global capacity. As Director for Halliburton's GeoGraphix product line, Brad was responsible for global Operations, R&D, Sales and Marketing. Brad spent 4 years as Director for Mergers and Acquisitions for the Landmark Graphics business unit, resulting is several strategic acquisitions. Brad brings more then a decade of sales and management leadership in the Canadian oil and Gas industry including Regional General Manager for Halliburton's Landmark Graphics business unit. Brad Bechtold resides In Calgary Alberta and holds a Diploma in Business Management for the SAIT Polytechnic in Calgary. À titre de directeur des affaires du marché vertical du secteur pétrolier et gazier de Cisco Canada, M. Bechtold est responsable de l'élaboration et de la gestion de la stratégie de mise en marché à l'intention des entreprises du secteur pétrolier et gazier. Dans ce rôle, il travaille avec des partenaires de l'industrie, des établissements d'enseignement et des entreprises gazières et pétrolières pour faire en sorte que les solutions technologiques de Cisco relèvent les défis auxquels est confronté le secteur aujourd'hui. Possédant plus de 25 années d'expérience du secteur pétrolier et gazier, M. Bechtold vient enrichir l'équipe responsable de la transformation industrielle de Cisco Canada grâce à ses connaissances pertinentes du secteur. Avant d'entrer au service de Cisco, M. Bechtold a travaillé pendant 18 ans chez Halliburton, leader mondial du secteur des services énergétique. Durant sa carrière au sein de cette société, il a passé 13 années à jouer un rôle sur la scène internationale. En tant que directeur de la gamme de produits GeoGraphix d'Halliburton, il était responsable des activités mondiales, de la recherche et du développement et de la mercatique. M. Bechtold a également joué le rôle de directeur des fusions et acquisitions de l'unité commerciale Landmark Graphics pendant quatre années durant lesquelles il a réalisé plusieurs acquisitions stratégiques. Il possède plus d'une décennie d'expérience de leadership en vente et en gestion dans le secteur pétrolier et gazier canadien, y compris à titre de directeur général régional de Landmark Graphics. M. Bechtold vit à Calgary, Alberta et est titulaire d'un diplôme en gestion des affaires de la SAIT Polytechnic de Calgary.
This entry was posted in Manufacturing and tagged , , , , , , , , , . Bookmark the permalink.

One Response to Creating a Smarter Oil and Gas Industry, Part 1: The Internet of Everything and the Digital Oilfield

  1. Pingback: Creating a Smarter Oil and Gas Industry, Part 4: Conclusion | Cisco Canada Blog

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s