Oil digital path. The intelligent system "Cognitive Geologist" uses machine learning algorithms when processing big data. Why
Konstantin Kravchenko, Head of Information Technology, Automation and Telecommunications Department, Gazprom Neft PJSC
Now the digital era in the oil and gas industry - is already a reality. Companies around the world have moved from words to digital technologies: Shell and Total use robots, Chevron and Shell - drones, Statoil - 3D visualization, Chevron detects leaks in pipelines using video analytics, BP is implementing a massive application-related project Industrial Internet of Things on mining platforms. Almost all players in the global oil and gas industry are already using artificial intelligence and the possibilities of virtual and augmented reality. Even technology such as blockchain has not gone unnoticed. This year, BP joined the Enterprise Ethereum Alliance, whose activities are aimed, among other things, at the distribution of smart contracts in corporations.
Gazprom Neft does not stand aside from the unfolding digitalization race. During the year, almost all production units and corporate functions of the company launched pilot projects or launched large-scale initiatives based on digital technologies.
At the same time, it should be noted that digitalization leads to radical changes in entire industries. Thus, the spread of Internet telephony, instant messengers and virtual operators has forced telecommunications companies to completely change their business model. The emergence of electronic and unmanned vehicles, as well as car sharing services, has changed the face of the transport industry. These innovations, along with the development of shale resources, the increasing use of renewable energy sources, the activity of start-ups offering refueling the car outside gas stations, have also affected the oil and gas sector. But digitalization brings not only upheavals - it hides survival opportunities for traditional industry players.
You just need to be able to use these opportunities correctly. And from the technical side, we are ready: a significant amount of production data has been accumulated, computing capacities have been created for their processing; the cost of introducing innovations is reduced, and the experience of their successful application is expanding. But digitalization is not equal to technology, it also involves a radical change in operating and business models. This is its fundamental difference from traditional automation. New technologies do not work without changing business approaches, and here the digital technology platform plays a key role. It is she who will become a tool for managing disparate processes and functions of companies, and in the future, the basis of the industry ecosystem.
There is a process of formation of end-to-end value chains, which are managed from multifunctional centers. Gazprom Neft already has a drilling support center (in the exploration and production block), a center for improving efficiency in oil refining and logistics, a center for optimizing production in offshore projects, and a project management center for capital construction. In the future, we are considering the creation of flat structures managed from a single center and uniting an ecosystem of partners.
On this path, we still have to solve many problems. At the company level, it is necessary to create a new corporate culture, a management and decision-making system, and reconsider the role of information technology and the CIO. But there are tasks that must be solved at the industry level - standardization, changes in legislation and the creation of a common technological platform.
I emphasize that without such a platform, effective progress along the path of digitalization is impossible. Representatives of the largest technology companies and business consultants speak about this, this is also spelled out in the Digital Economy of the Russian Federation program.
Now there are about 300 industrial Internet of Things platforms on the market, but these are mainly Western solutions. Their use in the era of transition to the cloud creates critical risks for our industry. In addition, existing platforms solve only part of the digitalization tasks, not fully meeting the needs of tomorrow.
The main question is: where is the player or team that will create a promising Russian cloud platform for digital production? Obviously, such a large-scale task is beyond the power of one company.
When we talk about neural networks and machine learning, we first of all imagine digital assistants in smartphones, working with images or artificial intelligence that writes music. In fact, the technologies of the Industry 4.0 concept, which include neural networks, are used, among other things, for completely different things. N+1 Together with Gazprom Neft, we have created a test that will tell you in an interactive way about the use of modern technologies in the oil industry. Dare!
1. The intelligent system "Cognitive Geologist" uses machine learning algorithms when processing big data. What for?
2. Oil refineries (refineries) today create digital twins of their installations - virtual models of equipment and models of processes occurring within these installations based on neural networks. This is done in order to:
3. Oil companies today use the so-called "digital drill". What do you think it is?
4. Oilmen carried out laser scanning of all buildings and structures of one of the fields. Why did they need it?
5. Deposits are depleted over time, but this does not mean that there is no oil left there. By selecting different production modes using self-learning algorithms, you can try to continue mining. What can it give?
6. The volume of data on geological parameters and the progress of field development is constantly growing. How much data do you think we are talking about?
7. If about 1000 gas stations located at gas stations throughout Russia are combined into one digital system using the industrial Internet of things, then how much can their revenue increase only through the sale of coffee?
8. Today at Gazprom Neft, all transportation, processing and sale of petroleum products to consumers is controlled by a gigantic network of 250,000 sensors. The information received from them forms the basis of big data. How many routine decisions based on them, according to Gazprom Neft experts, will artificial intelligence make by 2025?
The world energy industry is on the verge of technological and structural reform. According to the World Economic Forum, digitalization of the oil and gas industry alone could generate an additional $1.6 trillion in revenue by 2026. However, this technological transition can be a very painful transformation for many old industrial enterprises.
In recent years, new terms and concepts have emerged to describe the ongoing digital transformation. The structure of the world, including the industrial one, is being changed by the concept of intelligent enterprise (IE) – a set of technological innovations, including artificial intelligence (artificial intelligence, AI), intelligent automation (intelligent automation, IA), deep learning technologies, predictive analytics and cognitive computing.
According to the International Data Corporation, the market for cognitive solutions and artificial intelligence will grow to $46 billion by 2020, an increase of 500% compared to 2016 levels.
Science fiction is becoming a documented reality of rapid changes in the socio-economic space: the boundaries of the ongoing transformation are rapidly expanding - from interference in human genes to the fourth industrial revolution. Accenture believes that expanding the use of IE solutions will increase labor efficiency and could increase the productivity of national economies by 40% by 2035 in several countries.
Should you spend money on new technologies?
While the financial sector, real estate and healthcare are rapidly transforming, leading in terms of investment in IE systems, the oil and gas industry has not yet received significant benefits from the new digital order. The oil industry has just gone through its most difficult period in 30 years. The fall in oil prices since 2014, the layoff of 350,000 employees worldwide, and the fall in investment in production are a major crisis that the oil and gas industry has faced in recent years. The result was attempts to optimize the business, the beginning of using the potential of new technologies to improve the efficiency and profitability of companies.
According to a survey conducted by Oil & Gas IQ among representatives of the largest international oil and gas companies, when answering the question "How can intelligent enterprise systems affect your business?" 65% were in favor of cost reduction, 45% - process optimization, 44% - business modernization, 42% - time savings, 35% - winning the competition.
But so far, oil companies are seriously lagging behind the changes taking place in other industries at a tremendous speed. According to the latest polls, four out of five professionals in the oil and gas industry are "delighted" with the ongoing changes, three out of four believe that IE systems will help companies save money by reducing capital expenditures and operating expenses. However, one in three respondents said that their company has not yet begun, and some even have no intention of integrating innovative IE system solutions into their existing business model.
The digitalization of the oil and gas industry is aimed primarily at the ability to quickly make decisions that are balanced by risk assessment, as well as to increase the productivity and value of the company. BP CEO Robert Dudley, speaking about digital transformation, notes the importance of making quick decisions, as well as changing the way people work. But the oil and gas industry is traditionally conservative, only a few, the most financially secure, players show themselves as bright innovators in certain areas.
According to the head of the upstream company Bernard Loney, big data (big data) will lead to a revolution in the oil industry.
"Accept the new era, do not wait for it to be imposed on us",
calls the top manager.
During 2017, BP acquired Beyond Limits, an artificial intelligence and cognitive computing start-up that is adapting NASA's upstream technology for deep space exploration for the sector.
Chevron is actively developing seismic data visualization and 3D reservoir modeling GPUs. The main goal is to determine the most suitable places for drilling.
Shell develops seismic machine learning algorithms to automatically detect and classify geological structures in onshore and offshore oil and gas fields.
The main question that each oil and gas company will have to ask and decide is how wasteful it can be, creating and implementing miracles from the arsenal of the fourth industrial revolution.
For example, Italy's Eni had to cut capital expenditures by 20% due to huge spending on the already award-winning HPC3 hybrid high-performance computer launched in early 2017, designed for use in the hydrocarbon exploration and production segment. But experts note that IE elements can be installed on top of already existing legacy systems and use data that is already generated by the equipment. This will significantly reduce the cost of digitalization in oil and gas projects, which is good news for an industry in which four out of five mega-projects underway are behind schedule or over budget.
According to surveys, two technology areas from the IE systems arsenal can bring the greatest impact to the oil and gas industry: predictive analytics and intelligent automation systems.
Deep learning technologies are important for the accurate analysis of failures in industrial plants and can find their application in the capital-intensive oil and gas industry. Intelligent automation systems allow, through data integration, to switch to automatic execution of functions traditionally performed by personnel. Experts note that by 2020 a personnel crisis will come in the oil and gas industries: half of experienced engineers and geophysicists will reach retirement age. Digitalization can affect the entire value chain in the oil and gas industry. Among the most promising segments for the transition to digital technologies are asset management and infrastructure facilities, field development, geophysical services, pipelines, processing.
Russian way
In November 2017, Gazprom approved a target program for the development of a single information space until 2022. The company has set itself the task of introducing automated solutions at all levels of management, based on current trends in the transition to a digital economy.
Gazprom has declared three principles on which its policy in this area is based: innovation, integration and import substitution. We use advanced IT solutions that provide maximum integration of information management systems and a synergistic effect for Gazprom's business. The company is trying to give preference to domestic developments. An informatization strategy is being implemented, 35 information and control systems have been introduced, which made it possible to automate many important business processes. A data processing center was built with strict information security requirements.
Gazprom now has a corporate data warehouse with the main performance indicators of production processes used in making key management decisions. It is planned to comprehensively automate production accounting and planning, create a virtual unified data warehouse that will receive information from facilities in real time, as well as introduce tools for monitoring, modeling and predicting the technical condition of production assets.
Great hopes are associated with the use of elements of a promising enterprise management model - the concept of "Industry 4.0" (the fourth technological revolution).
It involves the widespread use of digital technologies and tools for proactive management of production facilities and processes along the entire value chain to maximize business profitability. With the help of powerful computing resources and a software platform for processing large amounts of data, it is planned to create digital models of existing production facilities (“digital twins”).
Gazprom Neft also sees great potential for digitalisation. The most interesting direction is the changes affecting business management, business processes, restructuring the organization model and doing business in the company. According to Gazprom Neft, digital transformation involves a symbiosis of large-scale technological and organizational changes aimed at radically improving business efficiency through its full digitization at all stages of value creation. According to Alexander Dyukov, head of the oil company, the technologies can be used along the entire value chain, from geological exploration to the sale of fuel at gas stations, which will improve work efficiency.
Opportunities for localization
The main prospects for digitalization in Russia are related to the energy sector. There is potential for localization here. Thus, according to Simon Huffeteau, senior director of the energy industry at Dassault Systèmes, IT solutions that are created for the specific needs of companies in Russia can be used in the future in the global market. In Russia, Dassault Systèmes takes an active part in the business digitalization process, collaborating with key market players. Rosatom Corporation became one of the main partners. Dassault Systèmes actively cooperates with the corporation's subsidiary, the ASE group of companies.
“We started interaction within the framework of internal processes for the design and construction of nuclear reactors. Over time, they realized that companies have excellent opportunities to bring joint solutions to the energy market not only in Russia, but also abroad. Based on our developments, ASE has created its own Multi-D platform - a set of tools that runs on our 3DEXPERIENCE platform, which allows you to implement all capital construction projects in terms of organizing technical information, optimizing the sequence of work, and designing civil engineering facilities. We are helping ASE develop this technology, but we also have other cooperation plans,”
Juffeto said.
In the oil and gas sector, Dassault Systèmes works with equipment manufacturers, engineering firms that design and maintain facilities, and operators who operate facilities. The proposed solutions help design and build infrastructure facilities, manage capital construction projects, and optimize processes at operating enterprises.
Dassault Systèmes is interested in alternative energy projects in Russia. The company has optimistic forecasts for the development of this segment.
“In Russia, the share of alternative energy sources is very small. But there is huge potential, especially for remote regions where local power generation is needed. Alternative energy can help the economic development of distant regions, as well as create competitive advantages for the Russian economy in the world market. A good example of cooperation is the RUSAL and RusHydro project in Krasnoyarsk, where a hydroelectric power plant, an environmentally friendly source of energy, is used to produce aluminum. Another factor is that there are very large cities in Russia, the development and growth of which create great difficulties for public utilities. This is where Smart Grid technology would help to create long-term and environmentally friendly urban development. There are many projects and different opportunities, but in all these projects there is a task - managing complexity. How to deal with the increasing complexity of projects? In all these areas, the latest technology can help, and working in 3D plays a very important role here,” says Simon Juffeto.
According to the consulting company Ernst & Young, the main driver of digital transformation in the oil and gas industry is the introduction of new business technologies, which are also called "disruptive innovation". However, so far 70% of key projects in the oil industry in Russia and in the world are focused on cost reduction, 20% - on supporting technologies, and only 10% - on these very "disruptive innovations". Oil and gas industry players recognize that the industry is moving slowly towards digital business transformation for a number of reasons. In particular, the industry specifics are almost not taken into account in the Digital Economy state program, and not all companies have an understanding of what their digital transformation is all about.
"The main driver of digitalization in oil and gas is" disruptive innovations ". The return on investment in such new business technologies is the shortest, in contrast to the return on investment in solutions aimed at reducing costs, supporting projects, etc.", - said the partner, Artem Kozlovsky, Head of CIS Oil and Gas Consulting Group at Ernst & Young, speaking at the III Federal IT Forum of the Russian Oil and Gas Industry "Smart Oil and Gas 2017: Digital Transformation of the Oil and Gas Industry", organized by ComNews Conferences and a subsidiary of PJSC Gazprom oil" - LLC "ITSK".
All oil companies have already launched the topic of digitalization, said Konstantin Kravchenko, Head of the Department of Information Technology, Automation and Telecommunications of PJSC Gazprom Neft. "We have created a drilling support program that allows us to manage this process. This year we launched the Efficiency Control Center. We are now creating the Production Control Center," he said.
He recalled that digitalization poses new challenges for oil companies, but also provides new opportunities. In the future, companies will have to change their business models. He drew an analogy from the telecom industry: as messengers appear, traditional telecom operators change their business model and start making money on new services for them. In the oil and gas industry, the traditional oil business is being challenged, for example, by the advent of electric vehicles and the use of renewable energy sources. The task of the oil and gas industry in such conditions is to change its business model, reincarnate, become more efficient, become different.
Industrie 4.0 Maturity Center business development director Martin Blader noted the advantages of a digital enterprise over a traditional one. A flexible digital enterprise responds faster to various unplanned events occurring on it thanks to real-time production, integration of all information systems with each other, big data analysis and the use of artificial intelligence, automation of production processes, etc.
However, not everyone in the industry has an idea of what digitalization is and how to implement it. "Digitalization is like sex in adolescence: everyone is talking about it, but no one is doing it. Now digitalization is paying a lot of attention: everyone has repainted, everyone on their slides says that they are engaged in digitalization, they use the word digital, but understanding what is really happening , no, - said Rinat Gimranov, head of the information technology department of Surgutneftegaz OJSC. - You must first formulate the goals of digitalization, and then your requests for building digital solutions."
Answering a question from the audience about the attitude of the heads of other divisions of oil companies towards digitalization, Rinat Gimranov briefly answered: “Since Vladimir Putin said “everything is digital,” will any boss really be against it?”
Vyacheslav Berzin, Head of the Department of Metrology, Automation, Standardization and Information Technologies of Zarubezhneft JSC, noted that the industry specifics are almost not taken into account in the Digital Economy state program. During the online voting, which was arranged by the organizers of the forum, the participants answered the question of how the industry should represent its interests in the digital economy. The majority of those present in the room voted in favor of the creation of an industry group on the formation of requirements for digital infrastructure, innovative technologies, regulations and the system of training.
"On the other hand, the state program clearly states that the release of standards and regulations for the Internet of Things is scheduled for 2019-2020. And we need the Internet of Things now," Vyacheslav Berzin noted. As Rinat Gimranov noted, IoT technologies can be implemented already now, without the adoption of standards, but it is important that IoT solutions are normal. Andrey Kuzyaev, President, Member of the Board of Directors, Chairman of the Board of JSC ER-Telecom Holding, believes that waiting for the release of IoT standards is a waste of time. "We will develop IoT without waiting for the development of standards," he said.
In the opinion of Pavel Gontarev, General Director of SAP in the CIS, the oil and gas industry is currently developing more slowly than other industries. There are various reasons for this. President of the National Association of Oil and Gas Services Viktor Khaikov recalled that the oil and gas industry is conservative and does not quickly accept new digital solutions on the market. Among all other companies, he noted Gazprom Neft PJSC as having advanced further than others in the direction of digital transformation.
The world energy industry is on the verge of technological and structural reform. According to the World Economic Forum, digitalization of the oil and gas industry alone could generate an additional $1.6 trillion in revenue by 2026. However, this technological transition can be a very painful transformation for many old industrial enterprises.
In recent years, new terms and concepts have emerged to describe the ongoing digital transformation. The structure of the world, including the industrial one, is being changed by the concept of intelligent enterprise (IE) - a set of technological innovations, including artificial intelligence (artificial intelligence, AI), intelligent automation (intelligent automation, IA), deep learning technologies, predictive analytics and cognitive computing.
According to the International Data Corporation, the market for cognitive solutions and artificial intelligence will grow to $46 billion by 2020, an increase of 500% compared to 2016 levels.
Science fiction is becoming a documented reality of rapid changes in the socio-economic space: the boundaries of the ongoing transformation are rapidly expanding - from interference in human genes to the fourth industrial revolution. Accenture believes that expanding the use of IE solutions will increase labor efficiency and could increase the productivity of national economies by 40% by 2035 in several countries.
Should you spend money on new technologies?
While the financial sector, real estate and healthcare are rapidly transforming, leading in terms of investment in IE systems, the oil and gas industry has not yet received significant benefits from the new digital order. The oil industry has just gone through its most difficult period in 30 years. The fall in oil prices since 2014, the layoff of 350,000 people worldwide, the fall in investment in production are a serious crisis that the oil and gas industry has faced in recent years. The result was attempts to optimize the business, the beginning of using the potential of new technologies to improve the efficiency and profitability of companies.
According to a survey conducted by Oil & Gas IQ among representatives of the largest international oil and gas companies, when answering the question "How can intelligent enterprise systems affect your business?" 65% were in favor of cost reduction, 45% - process optimization, 44% - business modernization, 42% - time saving, 35% - win in competition.
But so far, oil companies are seriously lagging behind the changes taking place in other industries at a tremendous speed. According to the latest polls, four out of five professionals in the oil and gas industry are "delighted" with the ongoing changes, three out of four believe that IE systems will help companies save money by reducing capital expenditures and operating expenses. However, one in three respondents said that their company has not yet begun, and some even have no intention of integrating innovative IE system solutions into their existing business model.
The digitalization of the oil and gas industry is aimed primarily at the ability to quickly make decisions that are balanced by risk assessment, as well as to increase the productivity and value of the company. BP CEO Robert Dudley, speaking about digital transformation, notes the importance of making quick decisions, as well as changing the way people work. But the oil and gas industry is traditionally conservative, only a few, the most financially secure, players show themselves as bright innovators in certain areas. According to the head of the upstream company Bernard Loney, big data will lead to a revolution in the oil industry. "Accept the new era, do not wait for it to be imposed on us",- calls the top manager.
During 2017, BP acquired Beyond Limits, an artificial intelligence and cognitive computing start-up that is adapting NASA's upstream technology for deep space exploration to the sector. Chevron is actively developing seismic data visualization and 3D reservoir modeling GPUs. The main goal is to determine the most suitable places for drilling.
Shell is developing seismic machine learning algorithms to automatically detect and classify geological structures in onshore and offshore oil and gas fields. fourth industrial revolution.
For example, Italy's Eni had to cut capital expenditures by 20% due to huge spending on the already award-winning HPC3 hybrid high-performance computer launched in early 2017, designed for use in the hydrocarbon exploration and production segment. But experts note that IE elements can be installed on top of already existing legacy systems and use data that is already generated by the equipment. This will significantly reduce the cost of digitalization in oil and gas projects, which is good news for an industry in which four out of five mega-projects underway are behind schedule or over budget.
According to surveys, two technology areas from the IE systems arsenal can bring the greatest impact to the oil and gas industry: predictive analytics and intelligent automation systems. Deep learning technologies are important for the accurate analysis of failures in industrial plants and can find their application in the capital-intensive oil and gas industry. Intelligent automation systems allow, through data integration, to switch to automatic execution of functions traditionally performed by personnel.
Experts note that by 2020 a personnel crisis will come in the oil and gas industries: half of experienced engineers and geophysicists will reach retirement age. Digitalization can affect the entire value chain in the oil and gas industry. Among the most promising segments for the transition to digital technologies are asset management and infrastructure facilities, field development, geophysical services, pipelines, processing.
Russian way
In November 2017, Gazprom approved a target program for the development of a single information space until 2022. The company has set itself the task of introducing automated solutions at all levels of management, based on current trends in the transition to a digital economy.
Gazprom has declared three principles on which its policy in this area is based: innovation, integration and import substitution. We use advanced IT solutions that provide maximum integration of information management systems and a synergistic effect for Gazprom's business. The company is trying to give preference to domestic developments. An informatization strategy is being implemented, 35 information and control systems have been introduced, which made it possible to automate many important business processes. A data processing center was built with strict information security requirements.
Gazprom now has a corporate data warehouse with the main performance indicators of production processes used in making key management decisions. It is planned to comprehensively automate production accounting and planning, create a virtual unified data warehouse that will receive information from facilities in real time, as well as introduce tools for monitoring, modeling and predicting the technical condition of production assets. Great hopes are associated with the use of elements of a promising enterprise management model - the concept of "Industry 4.0" (the fourth technological revolution).
It involves the widespread use of digital technologies and tools for proactive management of production facilities and processes along the entire value chain to maximize business profitability. With the help of powerful computing resources and a software platform for processing large amounts of data, it is planned to create digital models of existing production facilities (“digital twins”).
Gazprom Neft also sees great potential for digitalisation. The most interesting direction is the changes affecting business management, business processes, restructuring the organization model and doing business in the company. According to Gazprom Neft, digital transformation involves a symbiosis of large-scale technological and organizational changes aimed at radically improving business efficiency through its full digitization at all stages of value creation. According to Alexander Dyukov, head of the oil company, the technologies can be used along the entire value chain, from geological exploration to the sale of fuel at gas stations, which will improve work efficiency.
Opportunities for localization
The main prospects for digitalization in Russia are related to the energy sector. There is potential for localization here. Thus, according to Simon Huffeteau, senior director of the energy industry at Dassault Systèmes, IT solutions that are created for the specific needs of companies in Russia can be used in the future in the global market. In Russia, Dassault Systèmes takes an active part in the business digitalization process, collaborating with key market players. Rosatom Corporation became one of the main partners. Dassault Systèmes actively cooperates with the corporation's subsidiary, the ASE group of companies.
“We started interaction within the framework of internal processes for the design and construction of nuclear reactors. Over time, they realized that companies have excellent opportunities to bring joint solutions to the energy market not only in Russia, but also abroad. Based on our developments, ASE has created its own Multi-D platform - a set of tools running on our 3DEXPERIENCE platform that allows you to implement all capital construction projects in terms of organizing technical information, optimizing work sequences, and designing civil engineering facilities. We are helping ASE develop this technology, but we also have other cooperation plans,” Hufeto said.
In the oil and gas sector, Dassault Systèmes works with equipment manufacturers, engineering firms that design and maintain facilities, and operators who operate facilities. The proposed solutions help design and build infrastructure facilities, manage capital construction projects, and optimize processes at operating enterprises.
Dassault Systèmes is interested in alternative energy projects in Russia. The company has optimistic forecasts for the development of this segment.
“In Russia, the share of alternative energy sources is very small. But there is huge potential, especially for remote regions where local power generation is needed. Alternative energy can help the economic development of distant regions, as well as create competitive advantages for the Russian economy in the world market. A good example of cooperation is the RUSAL and RusHydro project in Krasnoyarsk, where a hydroelectric power plant, an environmentally friendly source of energy, is used to produce aluminum.
Another factor is that there are very large cities in Russia, the development and growth of which creates great difficulties for public utilities. This is where Smart Grid technology would help to create long-term and environmentally friendly urban development. There are many projects and different opportunities, but in all these projects there is a task - managing complexity. How to deal with the increasing complexity of projects? In all these areas, the most modern technologies can help, and working in 3D plays a very important role here,” notes Simon Juffeteau.