1. Journey to a Real Time Enterprise
Mike Reddy
Chief Information Officer
Chevron International Exploration and Production

2. Chevron is made up of many different businesses
Capital intensive with long-lived assets
Information intensive with time scales from seconds to decades
Explore
Develop
Produce
Ship
Refine
Blend
Store
Pipe
Operate in 180 Countries
2005 Revenues of $194 billion
2005 Net Income of $14.1 billion
53,440 Employees
Distribute
Market

3. Large Volumes of Different Types of Data are Characteristic of Our Business
50 3D seismic projects = 350 TB +
100 simulation models = 10 TB +
100-million-cell earth model
2-million-cell simulation model
Large offshore field
2000 I/O points
Data stream = 10 GB / day
Explore / Develop
Large refinery
30,000 I/O points
1 TB / year processed data; 1 TB / day raw data
75,000 coefficient simulation model
Produce
Refine / Blend

4. Chevron International Exploration and Production
9 Business Units & 17,000+ Employees
Operating in more than 35 countries
Operates over 16,000 wells in about 200 fields

5. Many functions are needed
Petroleum Engineering
Facilities Engineering
Petrophysics
Geology
Geophysics
Supply Chain Management
Finance
Planning
Field Operations
Reservoir Engineering
Project Management
Research
Human Resources
Information Technology
Process Engineering
Project Management
I&E Control Systems Engineering
Law
Completion Engineering
Chemical and Corrosion Engineering
Maintenance Engineers
Compliance Management
Health Safety and Environment
Drilling

6. The Upstream Field Environment
Production Operations
Performance is driven by volumes, unit costs and decision quality
Information Systems are key to decision quality support
Exploration and Development

7. Many steps required to enable business transformation
Must integrate the IT Strategy with the Business Strategy – it’s not a technology project…
Business
Value
Improved
Work Processes
Integrated Views
of the Business
Standards
Enabled
Integration
Data and Information Management
Function-specific Applications
Computing Infrastructure

8. Work Processes The challenge of integration
Operator
Financial
Analyst
Earth
Scientist
Production
Engineer
Reservoir
Engineer
Many Versions of data, thus no one “truth”
Lack of Enterprise Data Visibility (Transparency)
Limited Communication & Collaboration
Complex Implementation & Maintenance of software
End user ease of use of information applications
Timely access to information
Responsive to change
Excel is the favorite application on many users – highly configurable & very personal !!
Excel still valid, but needs to move from data, logic and workflow island to an application feed by services (receiving and publishing data to well managed sources in the Information Architecture).
Why? User Interface, Logic (unmanaged), User Workflow, Data (trusted)
Functionality silos are reduced by providing integrated data and views of data
Adapted from Adolfo Henriquez

9. Improved Work Processes
Chevron is focusing on improving key work processes to maximize business value
Standard, integrated systems are a key enabler for improved work processes
Partnership with business functions is a requirement for success
Success comes a bit at a time
– it’s a long journey
- a continuous learning process

10. Computing Infrastructure
Chevron has obtained great value from a standardization of:
PCs & Productivity Applications
Network & Servers
Security
Technical Computing
Central Design – design once and deploy everywhere
Support costs have been reduced
Reliability has been increased
Started in 1997 with PCs, updated in 2001 / 2002 along with servers, network, security standardization
IT learned how to manage large, complex projects

11. Function-specific Applications
Many different tools are required to operate a complex business
No one vendor can supply all of our needs
Initial focus was on standardizing tools for specific functions
But the business is now demanding data sharing across functions
Could lead to many connections & data transfer points

12. Data and Information Management
Data captured once, stored once and leveraged for multiple work processes and applications – define Systems of Record for key data types
Common data models used in all systems enable integration of data across functions
Data ownership, roles, & responsibilities are clearly defined
Data quality is critical
Prioritize most critical data types – we can’t do everything at once
Real time data and other data types need to be used in concert with other data to make decisions

13. Integrated Views of the Business
An integrated view of major work processes cannot be obtained from function-specific applications
People shouldn’t need to learn every application that they need to see some data from
Real-time data is one of the components of an integrated view
Some key data types are needed at all organizational levels and can be readily rolled-up and drilled-down
Many different views of data are valuable
…………so what do we do ????

14. Utilize an Event Driven Architecture
Utilize a Service Oriented Architecture connecting data producers with information consumers
Service Orientation – exposing systems, applications & data as services enables more rapid integration across functional systems
Business Intelligence – A platform consisting of:
Data Warehousing of key analytical data
Time Series data feeds & analysis
Chevron is piloting this approach is several locations with some initial success………..though we still have a long way to go
When looking at the service oriented architecture, Chevron began to decompose their core Exploration and Production areas into components.
This enabled Chevron to map out work flow associated with each component
Which users require what data for decision support – who else is influenced by these decisions?
This also enabled Chevron to map out the decisions associated with each element and interrelations with each component
The Information Systems begin utilised were then mapped into the workflow
This allowed business requirements and technology solutions to begin to be architected as a converged product
Applications could now be viewed as services as opposed to point solutions – each was an interoperating part of the whole, but remained autonomous to ensure robustness of the entire solution

15. Integrated Views of the Business

16. What has Chevron Learned………
Work on things the business cares about
Understand your Business Strategy and focus IT efforts in areas that can make a bottom line impact
Continually recycle with Business Users to ensure that you’ve got it right
Get your infrastructure sorted out – you can’t focus on transformation if you are worrying about reliability & performance issues
Standardize as many of your large applications as possible
Implement consistent data models
Deploy a Service Oriented Architecture to allow you to quickly pull together data from many sources
Start small and build on successes

17. Questions