Digital Oil Field 2.0: Maturity and Paradigms

Abstract

Management Globally, the digital oil field (DOF) in its relatively brief lifespan has strikingly transformed how the oil and gas industry works. What may not be quite so obvious, however, is that the curtain is coming down on DOF's "overnight" introduction of dazzling new technology and the simultaneous integration challenge. From 3D visualization to revolutionary sensors it has been quite a ride. In a new industrywide phase coined "DOF 2.0" by Bart Stafford of Science Applications International Corporation, a Fortune 500 scientific, engineering, and technology applications company, the science-fiction DOF concept is maturing. Instead of primarily showcasing ever-newer technological "bells and whistles," now management can actually plan and execute the entire DOF solutions life cycle. With much at stake as to increasing production and maximizing recoverable reserves, it is worth examining this new direction, including the obstacles to its maturity. Maturity for DOF Companies reach the watershed point of DOF maturity through a process of "getting all the juice possible out of the orange." Although flashy technology will still emerge from R&D, companies’ DOF initiatives have fulfilled their organic growth and achieved some kind of finality, continuing at a generally even growth rate. In other words, for years DOF innovations have spewed out of R&D with minimal attention directed toward managing the new technology. The next wave will not be marked by exotic development but rather about how to manage solutions into operations. Keys to effectively making the transition into DOF 2.0 are the sevenfold Dimensions of Maturity. First, and particularly noteworthy in discussing maturation, is the codifying aspect. DOF 2.0 usage and the accompanying transformation of daily operations are now getting written down as a legitimate part of a company's business strategy. This contrasts sharply with the previous corporate thinking that DOF cannot be considered as a strong enough business factor to be formalized into how business is planned and conducted. Therefore, more executive key performance indicators (KPIs) and compensation structures now include specifically using DOF as a means to increase production and maximize recoverable reserves. The three key DOF roles are (1) senior management, (2) asset management, and (3) DOF technologies (i.e., R&D or information technology [IT]). Each of these roles now has more specific KPIs that directly relate to the use of DOF. For example, asset managers must be responsible for two KPIs: "reliable production" as well as the "incorporation of new DOF technology," and R&D must be responsible for two KPIs: both "DOF innovation" and "full implementation" of DOF innovations (Fig. 1).