IntelaTrac in Oil & Gas Upstream Operations

1. IntelaTrac in Oil & GasUpstream Operations Phillip F Miller Invensys North America Ops Manage 2011 Nashville, TN USA November 8-10, 2011 DRAFT Please do not distribute

2. Chevron at-a-glance • Global Snapshot • Second-largest integrated energy company in the United States and among the largest corporations in the world, based on market capitalization as of Dec. 31, 2010 • Business activities around the world • Diverse and highly skilled global workforce consists of approximately 58,000 employees and about 4,000 service station employees • Capital and exploratory expenditures – Invested $21.8 billion in 2010; announced 2011 projected outlays of $26 billion, with continued focus on exploration and production • Our Business • We explore for, produce and transport crude oil and natural gas; refine, market and distribute transportation fuels and lubricants; manufacture and sell petrochemical products; generate power and produce geothermal energy; provide energy efficiency solutions; and develop the energy resources of the future, including biofuels. Sources: www.chevron.com

3. IntelaTrac in the UpstreamPresenter Bio Phillip F MillerSolution Architect Chevron Energy Technology CompanyMobile Field Computing team • Technical architect for Chevron i-fieldTM ORD solution; developed global upstream reference architecture for two mobile solutions • Twenty years deploying business and technical applications, eleven years in upstream production operations, the remaining in drilling and completions, petrochemicals, mining, and distribution industries • Prior service at ExxonMobil, Price Waterhouse and IBM • BS, Information Management; MBA

4. IntelaTrac in ChevronDownstream and Upstream Operator routine duties (ORD) is a term used in many places • Chevron employs ORD in the Downstream, and seven years ago implemented IntelaTrac • Some of you know Eric Rearwin who helped roll out IntelaTrac in the Chevron operated refineries • Eric has been a popular speaker in several venues and has helped me in my ORD journey • Chevron uses ORD in the Upstream as well, and selected IntelaTrac as the tool to enable this work process three years ago Sources: www.chevron.com

5. IntelaTrac in ChevronUpstream In the upstream, Operator Routine Duties are often connected with surface equipment However, the term ORD has broader implications Routine duties can be useful for collection of • Surface equipment data • Production related data • Regulatory compliance data • HES data • Operations & Maintenance Procedures • Commissioning check lists • And other settings where check lists are used Sources: www.chevron.com

6. IntelaTrac in the UpstreamRoutine Duties Paper-based Routine Duties • Routine duties are found in most upstream oil & gas operations • They are often paper-based • Check list with readings or observations • Place to indicate if the condition was normal • Place for the operator to enter any action taken • These are typically based on a set of standards Electronic Routine Duties • Paper is good, but is a starting point, not a stopping point • Electronic routine duties marry: • Operator driven reliability and enhanced operator routine duties with… • Enhanced surveillance and action for those “on the beach” and in the field office • IntelaTrac is a great tool to enable electronic operator routine duties

7. IntelaTrac in UpstreamRoutine Duties Operator Driven Reliability • Routine duties for surface equipment typically include readings and observations • Each, value entered is evaluated against pre-defined tolerances specified by vendors, Operations, Engineering or Maintenance • If those tolerances are exceeded, follow up actions and questions are trigged and the operator is typically prompted for comments Surveillance • Exceptions are flagged as a result of routine duties • The type of exception is pre-assigned to the condition along with a pre-defined severity • Exception reports may be automatically generated and sent to operation supervisors, area managers, specialized surveillance teams and other groups • With this visibility quick action may be taken

8. IntelaTrac in UpstreamRoutine Duties Surface Equipment Examples: • Check suction pressure, if low (e.g., < 150 psig) • Follow up action: instruct to check for restrictions in the inlet flow • Check discharge pressure, if less than inlet pressure • Follow up action: instruct to open up a work order to replace the filter • Display work order request window • Check crankcase oil level, if LOW • Follow up actions: • Instruct to add oil and indicate brand and viscosity • Instruct to add note indicating how many quarts were added • Display note window

9. IntelaTrac in UpstreamRoutine Duties Surface Equipment Examples: • Check compressor discharge gas temperature, if high (>300 degF) • Follow up action: • Ask a follow up question: “Are the louvers closed?” • If YES, follow up action: instruct operator to open louvers • Ask a follow up question: “What is the water level in cooler?” • If LOW, follow up action: add water • Ask a follow up question: “is valve temperature high?” • If YES, follow up action: call mechanic • Ask a follow up question: “is gas recirculation ON?” • If YES, follow up action: call mechanic • If none of the above follow up questions were true • Follow up action: instruct Operator to shut down the compressor and call mechanic

10. IntelaTrac in UpstreamRoutine Duties Production Data Examples: • Tank gauging • Enter level, calculate volume using strapping table data, calculate and display stock tank change in inventory • Well test (2 or 3 phase) • Enter duration, test volumes and calculate rates • Downtime • Enter start and stop date and time, assign reason code(s) • Meter readings • Enter current reading and calculated volume using prior • Chemical inventories and injection rates • Well operating parameters • Calculate and display produced oil, gas and water for the day

11. IntelaTrac in UpstreamRoutine Duties Some routine duties are less frequent or on-demand • Data collected once a rotation • 1 week, 2 weeks, 28 day rotations • Day of week can vary by hitch • During the hitch, check if the “once a rotation” checks have been done, if not, ask if they want to collect now, if not, skip and ask next time • Data collected once a week, month or quarter • During the monthly routine duty, check if the quarterly checks have been done, if not, ask if they want to connect now, if not, skip and ask next time • Start up procedures with instructions and readings • E.g., re-light boiler pilot • The advanced calculation engine in IntelaTrac 4.0 and 4.1 along with Decisions and hidden Tasks and Task Groups make these possible

12. IntelaTrac in UpstreamRoutine Duties • IntelaTrac version 4.x has proven to be good tool to enable upstream electronic operator routine duties • Earlier versions did not have the flexibility to do so • But Invensys listened and did a great job delivering advanced capabilities • We are still waiting for a few more capabilities, but they are on the road map for future releases Sources: Invensys Corp.

13. IntelaTrac in UpstreamRoutine Duties • Tasks Groups • Multi-task view • Optional hidden TG • Tasks – optional hidden • Decisions • Calculation to hide or show • Container similar to TG • Conditions • Simple wizard or calculation expression • Can put multiple • Actions • Can put multiple • Extensible Builder Features in 4.x Sources: Invensys Corp.

14. IntelaTrac in UpstreamRoutine Duties • Flexible Calculation Expression Editor Flexible (and extensible) Calculation Expression Editor Sources: Invensys Corp.

15. IntelaTrac in UpstreamRoutine Duties Lessons Learned • In an IntelaTrac project, the technology is easy (and fun) • The heavy lifting is in defining the “Information Architecture” • Good Information Architecture is key to deriving maximum value from an IntelaTrac / ORD project Surveillance • Which users need to see the metrics and exceptions? • What will they do with it? • How will the information be made available to the user? • What is the correct system of record (SOR) for the information? • Operator Driven Reliability • What to capture? • What tolerances to configure for each reading and observation? • What follow up actions to take or follow up questions to ask if tolerances are exceeded?

16. IntelaTrac in UpstreamRoutine Duties Lessons Learned (continued) • The exception reporting capabilities of IntelaTrac are powerful • There are different categories of IntelaTrac / ORD information stakeholders, for example • Operational supervisors • Mid-level managers • Executive and leadership • A good best practice is to meet with stake holders early in a project • Explain and demo Web Reports and Auditor Plus • Explain the role and use of Data Filters and Severities • Explore what kind of exception conditions stake holders want to monitor • This will also help shape what is collected and tolerances.

17. IntelaTrac in UpstreamRoutine Duties Demonstration IntelaTrac 4.1 SP1

18. IntelaTrac in UpstreamRoutine Duties Wrap up • IntelaTrac is an enabling technology • The key to these projects is to not just focus on the technology • Examine the work process and design changes to the to-be process • Start change management efforts early in the project • Do a thorough Information Architecture • Develop skills with IntelaTrac so it can be configured and maintained once the project is complete • Invensys has been a good vendor-partner to work with • We appreciate their support

19. IntelaTrac in UpstreamRoutine Duties Questions? Thank you Phillip F Miller millerpf@chevron.com