2. A Digital Oilfield Roadmap
Marisé Mikulis
Energy Industry Manager
Microsoft Corporation

3. Product to Solution Paradigm Shift in Strategy
Scenario
Selling
Solution
Selling
Selling
Vertical
Solutions
Selling
Products
Product
Company
Solutions
Company
Microsoft Sales Teams
w/o Enterprise Partners
Microsoft Sales Teams
with Enterprise Partners
21 April 2004

4. Microsoft in Energy Mission
To establish Microsoft as an enterprise solution leader in Energy by delivering Microsoft & Partner solutions that drive value for our customers through increasing top line revenue, reducing bottom line costs, improving employee productivity, and increasing their customers’ satisfaction.
The explanation just offered should have set the stage for a mission statement of this type.
21 April 2004

5. Upstream Business Drivers
Some E&P Trends
Fields are becoming more : Demands and constraints are increasing:
Deep, remote and complex developments
Heavy oil, tight reservoirs, EOR
Increasing environmental and efficiency demands
Reduction of flaring, CO2 and produced water discharges
Developing shortage of E&P staff (‘big crew change’)
Region
Latin America
Europe
FSU
M.East
Asia Pacific
Change mmb/d +9 -3
+10
+15 +6
140
120
100 80 60 40 20
Global oil* production
medium scenario
Millions of barrels per day
New fields outside M.East
Increased recovery
Existing fields and Middle East fields
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
* Including HC liquids and NGL
Source: IEA; EIA; Office of Integrated Analysis and Forecasting; World Energy Projection System; U.S. Department of the Interior; U.S. Geological Survey, World Petroleum Assessment 2000 (Reston, VA, July 2000); McKinsey analysis
21 April 2004

6. Industry Requirements
Decrease Finding & Development Costs
Increase Production
Increase Reserves Recovery
Reduce Operational Costs
Decrease Innovation Cycle
This summarizes these points
21 April 2004

7. Trend: New Generation of Field Execution Systems
ChevronTexaco: iFields
“Transforming How We Operate: An integrated approach allowing real-time control of the exploitation process”
BP: Field of the Future
“Technology and business processes that provide real-time, continuous, and remote monitoring and management of assets from reservoir to point of sale”
Shell: SmartFields
“measure-monitor-decide-execute, throughout the asset life cycle”
Cambridge Energy Research Associates (CERA)
“The vision for the Digital Oil Field is one where operators, partners, and service companies seek to take advantage of improved data and knowledge management, enhanced analytical tools, real-time systems, and more efficient business processes…”
Others: Husky, ConocoPhillips, ExxonMobil, etc.
21 April 2004

8. ? Whether? When? RISK VALUE ROI/NPV Model Demographic Uncertainty HSE
Economic
Demographic
Market Dynamics
Technology ?
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9. Challenges & Concerns
Articulating the business problem and deploying without failure
Delivering a new concept in a timely manner
Resource Constraints (Time, People, Money)
Cultural Change
Production process inefficiencies holding back reservoir recovery
Infrastructure implications (anticipating future change & honoring the legacy)
21 April 2004

10. Do It Now? How?
Paced, Toward a Goal -- Deliver Wins via Adaptive Design
Horizontal and Vertical Communication and Collaboration
Mind the Gap: Cultural Shifts
“Real Time” is in the Eye of the Beholder
Aim for Competitive Advantage
Study Analogs
More, Expanded, and Faster
Protect Investment While Growing -- Leverage Existing Infrastructure and Investment
21 April 2004

11. Microsoft’s Oilfield Connectivity Solution Framework
A solution from Microsoft and its partners that provides E&P customers with a foundational framework using the .NET platform
+ Best of breed components to implement a Smartfield / ifield / Field of the Future / RealTime Oilfield / Digital Oilfield of the Future.
21 April 2004

12. Upstream Data Flow Stack
Enterprise
Analysis
Historian
DCS or SCADA
Instrumentation
21 April 2004

13. Oilfield Connectivity Solution Framework
Exploration
Production
Operations
Enterprise
Analysis
SCADA/
DCS
Sensors
Real
Time
Historian
Semi-Static
(SQL)

14. Oilfield Connectivity Solution Framework
Exploration
Production
Operations
Enterprise
Analysis
SCADA/
DCS
Sensors
Real
Time
Historian
Semi-Static
(SQL)

15. Oilfield Connectivity Solution Framework
Exploration
Production
Operations
Enterprise
Analysis
SCADA/
DCS
Sensors
Real
Time
Historian
Semi-Static
(SQL)
System Integrators
Schlumberger Information Services
Halliburton Energy Services
OSISoft
Integrated in DCS
Schlumberger, SAIC, Accenture, CGE&Y Technology: HP—CBI
CGE&Y, Schlumberger
Invensys
AspenTech
ABB
Honeywell
Emerson
21 April 2004

16. Microsoft .NET
Software for connecting information, people, systems and devices
XML Web Services across the entire Microsoft Platform
Clients
Experiences & Solutions
Key Messages:
.NET is our implementation of xml web services – our strategy to ensure that our products connect better together and better with others.
we’ve spent the past 3 years making XML web services integral to our entire business software platform
.NET provides the comprehensive means for interoperating and driving new value from all of your (your partners and customers) existing systems…regardless of platform they run on or what programming language they were created in…
Your decision will be in choosing the best software platform for bringing connectedness and integration to life…and we hope you see that .NET is the best choice
Slide Build: 2 [see script]
Slide Script:
[BUILD 1]
Microsoft .NET is software for connecting people, systems, information and devices.
For Developers it means the ability to quickly build solutions that interoperate across languages, platforms and devices
For IT, it means the ability to integrate new and existing systems across the organization and externally w/ Partners
For Businesses, it means having the agility to connect more deeply with customers, integrate with business partners and empower its employees
For Consumers it’s the ability to access and act upon information anytime, anywhere and on any device
[BUILD 2]
Microsoft .NET is built on a foundation of XML Web Services enabling both new and existing applications to connect with software and services across platforms, applications and programming languages
Slide Transition: Strips Right-Down
Additional Information for Presenter:
NOTE: If you forego a drilldown on tools, servers, etc, this slide provides a high level overview on the commitment.
Servers
Tools
Services
21 April 2004

17. Key Ingredients for Oilfield Connectivity Solution Framework …No Single Supplier Can Do It All…
Functional Components
Solution Partners
Companies
Microsoft
Sharepoint Server
InfoPath
BizTalk
SQL Server
IW Tools
Visual Studio.NET
N/A
Preferred Systems Integrator
System Management
Project Management
Schlumberger CGE&Y SAIC HPS – C&I
ISV
Production Reporting
Field Automation
Geologic Modelling
Data Historian & Mgmt
Reserves Accounting …
OSISoft
Invensys
AspenTech
Honeywell
Landmark Graphics
Schlumberger Info Svcs
SAP
“Ok, but WHAT is it that Microsoft does?” Enabling the collaboration, integration and productivity … via .NET Connectivity
21 April 2004

18. “If It Seems Too Good to Be True, Then It Probably Is.”
And… Your Expections are Realistic
With the schitzo phrenic background I have, I am continually finding folks who have been so busy finding and producing oil and gas that they haven’t noticed that some IT stuff has been happening around them that has changed the game at hand. That’s not a problem…unless it holds you back. I am concerned that it is holding some folks back. For though I am well-acquainted with many flawed attempts at this integration nirvana in the past, it is important to recognize that IT has progressed considerably. I think we can take great confidence in the broad based acceptance of .NET web services well-beyond the Oil Industry. This bodes well for our investments then. Enabling flexibility today without limiting options in the future as new opportunities present themselves.
Air flight and Penguins field … long durations before success, but transforming successes indeed.
Architectural Framework
.NET XML-based Web Services
Enterprise Application Integration
Collaboration and Connectivity
Real-Time Enterprise
21 April 2004

19. Agility in the Digital Energy Era Eliminate gaps between people, processes and applications
How to
Better Understand
Your Business & Partners
OPTIMIZATION
Aggregate
Collaborate
Analyze
Transact
How to Make
Better Decisions
Faster
VISIBILITY
Portal
Personalized
Real-time
Mobile
AUTOMATION
Orchestrate
Interoperate
Execute
How to Deliver on Promises across the Supply Chain
How to Integrate into your existing Enterprise
…Operational Convergence
21 April 2004

20. © 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
21 April 2004