1. WITSML Paris 16-May-2007 Rick Morneau
“To be the global energy company most admired
for its people, partnerships, and performance.”
Energy Technology Company Partners Creating Value
WITSML Paris
16-May-2007
Rick Morneau

2. Agenda Chevron technology strategies Standards
Why Chevron joined the WITSML SIG
Existing tools
Chevron’s WITSML activities
Summary

3. Energy Technology Company Business Fundamentals
Role is an internal technology provider and integrator & supplying differentiated energy technology solutions & services.
Value creation is achieved by rapidly integrating and applying technologies & practices to achieve superior operational and financial performance.
Business Model based on Multi-tiered funding & external leverage
Corp. funded Strategic Research (long term 3+ years)
Business-driven R&D (Tech Development) (shorter term 1-3 years)
On-demand technical services & support
Each Department operates as a fully cost-recovered organization.

4. What becomes critical to the digital technology part of the energy business.
Technology application is critical to adding value.
Remote operations will be critical in deepwater.
Remote operations may be critical in shelf and land environments.
Big service companies providing all the innovation is not going to happen (margins are too small).
Improved resolution within the reservoir is critical because:
deepwater wells cost a lot,
fully exploiting existing assets is essential.
Integration opportunities become critical.
Innovation will come from the “fringes of technology”, improving equations, reducing approximations and refinement of measurement.
Workflow efforts will be critical to define business value.
as a result of the environment and “drivers” listed on the previous slide “what becomes critical to the digital technology part of the energy business”
application and deployment of technology is critical to adding value and continued investment in technology.
remote operations will be critical in deepwater.
it may be critical in onshore or shelf environments where the infrastructure exists, i.e. managing 10,000 wells from a central point is possible.
We seen over the past 10 years that large service companies are not going to provide all the innovation. (remember the point about global procurement being real)
Once found deepwater opportunities could be too expensive if the reservoir resolution is not adequate to develop efficiently.
as you manage the decline in your existing fields resolution will help with new opportunities on the periphery of your assets.
integration of as much of the value chain from upstream through downstream will be important to improve the margins.
Innovation in the core upstream areas will be on the fringes …..
WORKFLOW WILL DOMINATE technology innovation because it provides the link to business value.

5. Standards What do standards mean? Least common denominator? No!
Raising the bar? Yes!
Defines what good looks like
Loss of creativity? No!
Actually can enhance creativity by supplying framework for innovation
Allows inoperability – not tool based
What can standards accomplish?
Improve technical analysis
Increased reliability and predictive accuracy for technical evaluations: Operational Excellence
Improve organizational efficiency
Standard workflows and processes to improve organizational efficiency: Organizational Capability
Improve portfolio decision quality
Improved ROCE through reduction in number of dry holes: Capital Stewardship
Just as standards for hardware allow … us to connect systems together
Standards in monetary systems allow … banks to exchange money electronically
Standards in workflows allow us … to operate more reliability and efficiently
Think about a world without standards

6. Why Chevron joined the WITSML SIG
We consider WITSML to be a compelling activity but realization of the potential requires follow through by all parties
Impressed by the software solution providers interaction within the WITSML community
Want standards that are working
There are Real implementations, not just theory
On path toward Web services
Important standard for exchange of data
Opportunity to expand the standard
So this brings me to the WITSML SIG. I have shown a similar slide at 2 previous SIG meetings where I presented.

7. Current Uses
Using WITSML vendor servers for some deep water drilling projects for MWD/LWD.
Brazil, Nigeria, Angola and Gulf of Mexico with increased take-up.
Landmark’s OpenWire
Well bore mechanical viewing tool integrated into our decision support system

8. Current Activities / Direction …
Workover review
Well Plan
Update completed well info
Real Time data
Today this is where we stop
Complete Well

9. Current Activities / Plans
Real-time drilling operations
Transfer from drilling system to data management system for operations and planning

10. Current Activities / Plans
Drilling Center
Environment
Rig
WITSML
Database
Proprietary
Drilling
System
Drilling
System
Apps
Apps
Apps
Apps

11. Summary We are building more internal expertise… slowly
Expect benefits from a commercial tools
Developing adaptors for our data stores
Encouraging vendors to provide both import/export WITSML
Need to find ways to both lower the cost for acquiring real time data for non-DW wells and to help others in CVX understand the value proposition of WITSML

12. Thank You 12