Thursday, December 3, 2009

Wellkeeper Remote Monitoring Benefits

Clients are utilizing Wellkeeper to reap the following benefits:

1. Reduce costs
  • By decreasing the amount of miles a pumper drives, because he has visibility into each well and tank battery before he leaves his home or office
  • Allowing field personnel to “pump by exception”, and go first to the sites that require their attention and expertise
  • By reducing the number of mechanical failures, because preventative data is always being monitored by the Wellkeeper system, and alarms are sent

2. Increase production

  • By knowing when wells go down and getting them back online sooner
  • Remotely configuring Pump-off Controllers, EFMs, plungerlifts and PLCs
  • Having real-time visibility into the behavior of a well
  • Providing engineers the data needed to maximize production
  • Identifying up & downstream effects on production, and eliminating problems
3. Prevent spills
  • Using Wellkeeper’s Alarm Notification System
  • Dispatch personnel to the site before the spill occurs, allowing time to take corrective and preventative action
  • Turning pumps on or off when an alarm condition is present
4. Generate accurate measurements
  • Using the latest technology to provide sophisticated measurement and real-time data gathering
  • Knowing what wells are doing minute by minute

Wellkeeper offers a cost-effective way to have access to well data by being able to sign into the website at your convenience, to view both the current and historical well production information. Wellkeeper has recently unveiled some significant improvements in remote monitoring services, such as remote configuration of equipment, real-time data every few minutes and extended coverage of wireless communications, which lowers the monthly telemetry cost dramatically.

As a reminder, Wellkeeper has helped companies lower their cost of operations, increase their production, and reduce environmental costs associated with spills. During these times of uncertain commodity prices, tighter capital, and increased environmental liability, Wellkeeper’s services can generate an immediate ROI.

Tuesday, November 3, 2009

What to do with all that data?

Once again, technology has created a looming monster about to overwhelm many independent producers. Before remote monitoring of oil and gas production facilities became commonplace, it used to be that producers/engineers were lucky to get one accurate daily reading from their field personnel of what was happening at a given well site/tank battery. Even as remote monitoring was implemented, early systems were usually only polling sites two to four times a day. But as telemetry costs continued to decline, many systems now offer sample rates as frequent as every five minutes!

So what to do with all that data? The opportunity is to:
1. Do optimal scheduling and dispatching of field personnel
2. Do predictive maintenance allowing minimal maintenance expenses with maximum production
3. Plan for and manage required resources to eliminate waste and ensure timely availability of resources
4. Have more granular data for reservoir modeling

The ability to balance the first three above competing objectives stems from the development of three techniques previously available only for the major oil companies for decision support.
The first is PROBABILISTIC SIMULATIONS that periodically process the incoming data from the remote monitoring system to understand the range of potential future outcomes that may occur for that well/field. The second is INTELLIGENT AGENTS that are embedded in the simulations who react to events according to rules used by the operational process. The third is an OPTIMIZATION ENGINE that can “shape”, under uncertainty and risk, the range of outcomes of a plan so that decisions can be made to move toward the desired results, while minimizing effort.

These concepts have been successfully applied to several major oil and gas field operations. To do it successfully requires not only the remote monitoring data but a commitment to an iterative process where the above tools “learn” over time to fit with the actual field being operated. It also requires integration with the cultural and procedural context of the organization (in other words, what the organization believes is the best way to operate). The result of the interaction between the decision support system and the organization is a continuous learning process for the life of the production field.

So to enable the investment in remote monitoring to be fully realized, a producer has the opportunity to acquire additional tools to avoid being buried in data. Using these techniques, instead of drowning in too much data, the operating company will be able to react more quickly to problems and opportunities and plan better for the future. Data is good, once you pass it to new tools that react to events as they occur in the field.

Co-authors:

Dr. Lester K. Sisemore
President and CEO
VGO Oil and Gas

Dr. Sisemore has over thirty years experience in the Exploration and Production sector of the oil and gas industry as a senior technology executive with Chevron, an executive consultant with IBM Global Services, and an independent consultant. Focus areas have included geophysical research, exploration operations, upstream data management, and technology management. Expertise includes strategy and planning, operational modeling, business process management, project valuation, portfolio decision-making, and technology implementation. Dr. Sisemore has specialized in the implementation of Upstream Petroleum Technology – including the strategy, planning, and change management that are a necessary part of this process. Focused on the improvement and sustainability of oil and gas portfolio and asset performance, is able to help clients create competitive advantage by solving important operational problems.
Contact information: les@vgo-oilandgas.com or 281-344-0351

Greg W. Scoggins
Vice President
Wellkeeper, Inc.

Mr. Scoggins has over 20 years experience in the oil and gas technology solutions business. His focus areas have been remote data monitoring solutions, operations and production process efficiency improvement, reserves and economics software systems and integration of engineering software tools using decision tree analysis. Mr. Scoggins came to Wellkeeper from OGRE Systems, where he also served as Vice President. Previously, Mr. Scoggins was a Vice President at Implicit Monitoring Solutions and Landmark Graphics Corporation. Mr. Scoggins has a Bachelor of Science degree in Engineering Management from Dallas Baptist University, and is a 28 year member of the Society of Petroleum Engineers (SPE), as well as IPAA.

Contact information: 888-WELLKEEPER (888-935-5533) or Greg@Wellkeeper.com

Friday, October 2, 2009

Implementing Remote Data Monitoring Technology in Times of Economic Crisis

Understanding the value that remote data monitoring technology can bring to an oil and gas company is fundamental to justifying a financial investment, and critical to the successful adoption of the technology. A basic dynamic that is inherent with selling any technology is the “value-point”. The value point essentially assumes that the technology delivering value to an organization is unimportant in the eyes of the buyer, and the benefits the technology delivers is the true selling point.

If the value point delivered by remote data monitoring outweighs the return on investment timeline set by the corporate and operations staff (typically 12-18 months) and the value point benefit is considered important by that organization, then the investment should be seriously considered.

A rather short-sighted argument is to not invest in remote data monitoring during an economic downturn in the oil and gas industry. An economic downturn is typically associated with the requirement of the prospective buyer to limit future spending, cut current field operating costs, and diversify offerings to mitigate losses.

Although the critical value-points are now typically shifted to cost savings, all of the value-points for remote data monitoring still exist. As such, a company evaluating remote data monitoring to address these value-points should, under the same pretext of return-on-investment and corporate prioritization, invest in the underlying system that best supports their needs.

Suffice to say, some companies looking to address economic downturns with an investment in remote data monitoring have accelerated the ROI cycle times and limited their capital budgets. These same companies have an adoption acceptance curve that has shifted to represent their new needs; however, they still have value points that demand remote data monitoring solutions.

In times of economic crisis, vendors must be conscious of the changing corporate and operational priorities of their clients, while buyers must be conscious of not losing sight of the value that remote data monitoring can bring, regardless of their current economic situation.

If the buyer has any hope the industry will eventually rebound, the best time to implement remote data monitoring is when other projects are postponed and more attention can be focused on cost-saving tools. While the breakeven point of an investment in remote data monitoring is usually months, the largest benefits will be realized when the industry returns to a robust state. By increasing production, remote data monitoring is even more valuable when commodity prices are higher. By reducing operating costs, such as spills, pumper fuel costs, pumper truck maintenance and oilfield equipment maintenance, remote data monitoring delivers an even larger impact on profitability when the costs for these things are higher.

In short, the time to invest in remote data monitoring is now. By utilizing remote data monitoring to streamline and better manage field operations today, oil and gas companies set themselves up to cash in on the benefits for years to come.

Critical Value Points for Remote Data Monitoring

There are several critical value points inherent to oil and gas field operations that are addressable through adoption of remote data monitoring technology.

Greater Quality Control to Reduce Wellsite Spills
Faster Quality Control to Reduce Wellsite Spills
Optimized Production Scheduling
Increased Production Throughput
Increase Production Yields
Reduced Production Overhead
Optimized Information Flow to and from Field Worker
Quicker Response to Field Workers
Reduced Need for Routine Wellsite Inspections
Reduced Human Errors during Daily Production Reporting
Enhanced Corporate Decision Making
Scalability to Expand Operations
Scalability to Reduce Operations
Reduced Overhead for Product Storage
Accelerated Auditing
Minimize Shrinkage
Access Real Time Inventory

Sunday, September 6, 2009

Remote Monitoring: Online in the Oil Patch

This article appeared in the June 2009 edition of the Permian Basin Oil and Gas magazine
http://www.pbog.com/index.php?page=article&article=88

When Randy Krall tells an operator that he is in the “remote monitoring” business, the operator no longer responds with a “What’s that?”

“At least they have heard of it,” said Krall, president of Wellkeeper, Inc., an Albuquerque, N.M,.-based technology company that has been involved in remote monitoring in the Permian Basin for six years. “The industry is still in its infancy, but it is no longer obscure.”
Krall acknowledged that every well and every situation is different, but he claimed there are four advantages to having a remote monitoring system. The first advantage, he said, is reducing cost by making people more efficient.

“We like to say it lets the pumper be the pumper,” he said. “When he takes off in the morning, he knows where the problem is. It means less routine driving and less gas.”

“We call it ‘pump by exception,’ ” added David Hight, North American sales manager for the smart, self-powered wireless “iNodes” sensors that Tyler-based Ferguson Beauregard, Inc., has developed. “Let’s say a pumper is babysitting 10 wells, and he goes to each of them clockwise every day. That is time-consuming and not an efficient way to use your resources. With remote monitoring, he can see the pressure has dropped at the No. 4 well, and he can go to it first. He visits the trouble spots first and addresses that well’s issue.”

Reducing environmental exposure is the second advantage, according to Krall, because sensors can be equipped with an alarm.

“Depending on the volume, a problem at a well can be either an inconvenience or a catastrophe,” he noted.

“All of our sensors are fully alarmable,” emphasized Ferguson Beauregard’s Hight. “If there is a high level or a low level, or high pressure or low pressure, an alarm goes off, and the pumper or operator can be notified by cell phone or e-mail.”

The third advantage to remote monitoring, according to Krall, is the pumper knows when there is a problem and can get the well back on line quicker, thus increasing production.

“The fourth dimension may be a little harder to wrap your arms around,” Krall stated, “but it gives you better access to data and what is really going on with the well. The well’s production may look normal if you are looking at it just once a day, but if you are looking at the data in real time, you may discover a problem.”

Krall explained that there are three components to remote monitoring – sensors at the well site, a way to communicate the data out of the field, and then a way to present it.

Sensors

Sensors can monitor any number of things from tank levels to pressures, gas volumes, electronic flow meters, liquid volumes or water volumes at a disposal site.

Ferguson Beauregard has been making sensors for the oil and gas industry for 35 years, but got involved in the remote monitoring end of the business about nine years ago with the development of its wireless “iNodes.”

“These sensors talk to an RTU (remote terminal unit) or CCU (central collection unit or central communication unit),” Hight said. “We can be as little or as much help as the customer wants. We can do it all, or we can take the data and push it to an existing radio. Think of the sensors as spokes on a wheel, and the CCU as a hub. The hub can talk to each of the sensors.”

A typical well site, according to Hight, might include four “iNodes,” two oil tank level sensors, a flow tubing pressure sensor and an electronic flow meter.

“Each device talks to the CCU,” he explains. “A pumper can touch a button, and it will show instantaneous reading. He can see a digital LED reading at one location.”

That has a safety advantage as well, Krall added, pointing out that the pumper no longer has to crawl up a ladder to the top of the tank to check the fluid level.

Getting Out of the Field

The second part of the remote monitoring function is the ability of getting the data out of the field. Hight said Ferguson Beauregard uses either satellite or digital cell technology, “depending on the client’s needs.”

Krall said Wellkeeper, Inc., is now using digital cellular service to get the data out of the field, but that has been an evolution over the last seven years.

“We started out using satellite, then analog cell service and now digital cell,” he noted. “The price keeps going down with every technological change.”

“That is a huge advantage,” Greg Scoggins, vice president of sales and marketing for Wellkeeper, Inc., said of digital cellular service. “When we started, we used analog cellular service. That was spotty at best. Satellite allowed universal coverage, but the expense was high and there was only limited data available a few times a day. Digital cellular service came in on the back of the consumer network, and the oil and gas industry benefited.”

Surprisingly, Krall said cell service is usually available in even the most remote locations in the Permian Basin.

“You think about having service on your cell phone to make a call,” he explained, “but we have stronger radios and a fixed antenna. There are only a handful of sites that still use the satellite options.”

“Satellite is still a fall-back,” added Scoggins, “but with a 20-foot antenna, we have coverage almost everywhere, and you can get information every five minutes. It is far cheaper than satellite with 12 times more data frequency. We call it ‘near real time.’ ”

The one thing that Wellkeeper’s system doesn’t do is turn something on or off, but Scoggins said that is the next step in the evolution of its system.

He said SCADA (Supervisory Control and Data Acquisition) systems can do that now, but they are really expensive and are only being used by the major companies that have their own information technology (IT) department.

“Our system is not meant to replace the pumper,” Scoggins reiterated. “The idea is to make the pumper more efficient.”

Krall said Wellkeeper’s system offers “80 percent of the functionality at 20 percent of the cost” compared to the much more expensive SCADA systems.

Balloon Launch

Space Data Corporation offers perhaps the most unique method of getting the data out of the field. For the last five years, the Chandler, Ariz.-based company has launched a constellation of industrial weather balloons every day or several times a day to provide 24/7 coverage to the oil and gas industry in the Permian Basin.

Andy Germer, managing director of Space Data’s commercial network, said the balloons comprise a free-floating network that operates between 60,000 and 100,000 feet altitude, well above airline traffic.

“The network is owned by Space Data,” he explained. “We own the nationwide frequency at 900 mhz, so there are no restrictions of interference. We fly coverage in a 200-mile radius of Midland. Wind speeds are constant at about 15-25 mph at that altitude. We know that at certain times of the year, we launch from the west and certain times of the year from the east.”
Germer said the weather balloons eventually disintegrate in the atmosphere, but their payloads, the transceivers that provide the communications, float back to the earth attached to a parachute. The balloons are equipped with global positioning satellite (GPS) technology, so they can be tracked and recovered. Space Data technicians also have the ability to steer the balloons, moving them up or down into various thermal systems.

“Cell coverage is not good in a lot of West Texas,” Germer stated. “We are trying to automate wells so it lessens the need to check a well or pipeline every day.”
Services that Space Data offers the oil and gas industry, according to Germer, include alarm monitoring of storage tanks, compressors and pipelines, production monitoring, tracking compressors, drilling rigs, service trucks and frac tanks via GPS, and cathodic protection monitoring and notification. Field communications is also available.

Displaying the Data

Scoggins said Wellkeeper can provide a Web-based presentation of its data or it can integrate the information into a company’s existing software program.

“We supply a nice Web presentation with graphs and charts,” he pointed out, “or we can provide an Excel spread sheet and integrate into a company’s accounting system.”

Hight said Ferguson Beauregard’s wireless “iNode” sensors can “push that data to whatever is receiving it or we can provide an ‘iNode’ viewer, which is Web-based for the user that has Internet access.”

Automating the Routine

Remote monitoring is designed to make the oil and gas industry more efficient.
“We want to automate the routine, mundane, and sometimes dangerous things that pumpers do,” related Hight. “Remote monitoring is good management of personnel. If the device monitors the routine, it frees the pumper to do what he does best, which is to fix problems and increase production instead of routinely climbing on tanks. That makes sense.”

“This isn’t a toy,” Krall said of remote monitoring. “It is a real business benefit to solve very painful problems. It takes communication software and builds a complex solution.”

By Al Pickett, Special Correspondent

Friday, August 7, 2009

Award Winner!

On Friday, August 7th, Wellkeeper's Carlsbad-based technican, Patrick Mitchell, received an award at the IPANM conferenece in Albuquerque, New Mexico. A photo he took of a hawk landing on a wellhead has earned 2nd prize in the association's photography contest.

Wednesday, July 1, 2009

Private versus Public Networks for Remote Oilfield Monitoring

The major drivers of the traditional variations of remote production data gathering are cost and presentation. On the cost side are the two extremes of a SCADA system versus a simple call out system. The SCADA system typically employs a dedicated or private network, providing high volumes of information on a near continuous basis at a cost of up to several hundreds of thousands of dollars for spread spectrum radios, radio tower infrastructure, satellite uplinks and complex software to control it all. The ensuing private network allows the owner full use of the available bandwidth but at a significant initial cost and generally a high exposure to single point of failure due to the lack of redundancy in the infrastructure. The radios used will typically generate one or more watts of power for a range of several dozen miles at a cost of several hundred dollars each.

A more efficient alternative is to use a public network for all or a portion of the data collection. Digital cellular modems are available from a variety of vendors at a price point half or less the dedicated spread spectrum radios mentioned above. They are designed to communicate on the major cell carriers existing networks set up to carry voice and increasingly, data traffic to the oil fields. This approach uses less expensive devices and removes the need to construct and maintain a dedicated tower, freeing that capital for other uses and allowing the network to be deployed anywhere within range of a cell tower.

When the field to be monitored has a high concentration of wells in a limited geography a hybrid approach is even better than either extreme of all private or all public infrastructures. This approach uses a set of digital cellular modems dispersed through the field collecting data from several nearby locations via low power, inexpensive radios. The monthly costs are thus reduced without requiring the private tower's costs and exposure to a single point of failure.

In summary,

1. Spread spectrum radio systems require a very large upfront cost
2. Building radio towers in the oilfield increases the risk of failure of the entire system, as there is one single point-of-failure. If high winds damage the tower, or a power outage hits the area, all well sites will be unable to report data to the server
3. Digital cellular network technology is exploding, primarily due to consumer demand. This means the major communications companies are rapidly offering the best, cutting-edge technology to even remote areas of the oilfield, and continued innovation will be funded by consumers. This means reliable, consistent and inexpensive data networks for the oilfield.
4. Using a hybrid approach, companies are using digital cellular and low power, inexpensive radios to provide the real-time data they need to improve their operations and manage their assets effectively.

Wednesday, June 3, 2009

Large Midstream Natural Gas Company to Use Wellkeeper State-of-the-Art Monitoring Solution for Gas Treatment Plants

For immediate release

Large Midstream Natural Gas Company to Use Wellkeeper State-of-the-Art Monitoring Solution for Gas Treatment Plants

Dallas, Texas – May 15 2009. A large midstream natural gas company announced today that it has selected Wellkeeper to provide next generation electronic remote monitoring implementation and services at 16 Amine processing plants throughout the Texas, Gulf Coast and mid-continent regions.

“Upgrading system automation to our treatments plants is one of the key ways in which we remain at the forefront of providing the highest quality product to our customers at reasonable costs, while at the same time being good neighbors and partners in the regions we serve,” said the Enterprise Operations Manager for the company. “We are delighted to be working with Wellkeeper to leverage their knowledge of the latest in communications, sensing and reporting technology to ensure reliable and timely data for our engineering, management and field service personnel.”

The company has identified 16 plants for immediate roll-out of the new technology solution. Wellkeeper will be providing new instrumentation and communications systems and providing constant monitoring and alarm functions as well as periodic reporting to the company through its best-in-class user interface.

“Wellkeeper is a perfect match for midstream natural gas companies,” said Greg Scoggins, VP of Sales and Marketing for Wellkeeper. “We are particularly excited to be working with a partner that is using technology to stay at the leading edge of operational efficiency and customer service. Wellkeeper’s state of the art software and communications, coupled with existing and upgraded instrumentation, will allow the company unprecedented insight into the day-to-day and hour-by-hour operation of their treatment plants.”

Implementation at the 16 sites is expected to commence immediately, and all sites will have complete upgrades within 90 days.

About Wellkeeper:
Wellkeeper is a remote monitoring company serving independent operators in the oil and gas industry. The company’s technology enables oilfield personnel to quickly locate potential problems, thus increasing production and avoiding spills. This level of affordable Internet-based support has not been available to small- and medium-sized independents until now. Wellkeeper is providing vital business information to operators in the Permian Basin, the San Juan Basin, Barnett Shale, the Gulf Coast, the Appalachian Basin and Oklahoma. Wellkeeper is located in Albuquerque, New Mexico with offices in Midland, TX, Dallas, TX and Denver, CO.

Additional information about Wellkeeper can be found at http://www.wellkeeper.com/

For more information, contact:
Wellkeeper: Greg Scoggins, (817) 283-9544 greg@wellkeeper.com

Tuesday, May 5, 2009

Welcome to the Wellkeeper Blog

Welcome to the blog for Wellkeeper, the new breed of production data gathering. In the coming days, we will publish training tips for using the Wellkeeper remote data monitoring system, give news of upcoming events, tradeshows and conferences, and preview enhancements to the system. We look forward to providing fresh information to enhance your experience when visiting http://www.wellkeeper.com/ .