1. SOCIETY OF PETROLEUM ENGINEERS Gulf Coast Section Efforts to Educate the Public about Energy Jeanne M. Perdue SPE Distinguished Lecturer

2. Harry Potter and the Best-Kept Secret of the Oil Patch (with apologies to J. K. Rowling)

3. Today’s Oil Industry Uses High-Tech Tools to Improve Your Quality of Life (But this is kept secret from the general public.) (But this is kept secret from the general public.)

4. Not Your Grandfather’s Industry Yesterday ● Manual ● Hardcopy ● Post or Fax ● Five-spot ● Vertical wells ● Simple, Silos Today ● Automated ● Electronic ● Satellite ● Multilateral ● Designer wells ● Complex, Integrated

5. The Top Ten Tech Solutions 1. 3D Seismic Interpretation & Visualization 2. 3D Plant Design & Plant Lifecycle Management 3. Measurement & Logging While Drilling 4. Reservoir Modeling and Simulation 5. Real-time Data from Production Operations 6. Satellite & Wireless Applications 7. Knowledge & Content Management 8. Enterprise Resource Management Systems 9. Infrastructure, Security & Data Storage 10. Applications & Systems Integration

6. #1: 3D Seismic Interpretation 3D Seismic – create models of subsurface formations to identify oil and gas deposits. Increased accuracy in locating resources leads to fewer wells drilled and less waste, for the same volume of oil and gas. 3D seismic models are projected in a 180-degree view so geoscientists can virtually step into the subsurface to explore. Photo courtesy of Schlumberger

7. #2: 3D Plant Design & PLM ● Outsourcing ● Collaboration ● As-Built Models ● Training ● Operations ● Maintenance

8. #3: MWD & LWD Via Web

9. #5: Real-Time Data From Production Operations l RFID = radio frequency identification radio frequency identification l SCADA = supervisory control & data acquisition supervisory control & data acquisition l Process Optimization

10. #6: Satellite & Wireless l IPoVSAT = Internet Protocol over Very Small Aperture Terminal l TDMA = Time Division Multiple Access l 802.11 Wi-Fi WLAN

11. #9: Infrastructure, Security & Data Storage l Grid computing l Firewalls & spam blockers l Role-based SmartCard access l Nearline storage l Paper Well Logs => Digital l Seismic Tapes => DVD

12. Technology Has Resulted in a Significant Increase in Drilling Success Rates Source: EIA, Monthly Energy Review, August 2004 0 20 40 60 80 100 19731976197919821985198819911994199720002003 Percentage of U.S. Wells Drilled That Successfully Locate Oil and Gas Deposits Exploratory WellsAll Wells

13. Newer Technology Reduces Injuries, Improves Safety Source: International Association of Oil and Gas Producers, “Safety Performance of the Global E&P Industry – 2002” 0 1 2 3 4 5 1993199419951996199719981999200020012002 Lost Time Injury Frequency (per million hours worked) CompanyContractorOverall

14. Oil + Gas > Energy ● Materials: asphalt, linoleum, rubber ● Liquids: antifreeze, refrigerants ● Plastics: soccer balls, milk jugs ● Synthetic fabrics: nylon, polyester ● Agriculture: fertilizers, pesticides ● Medical: artificial limbs, bandages

15. We have an image problem!

16. Harry Potter ● 16 years old ● Bright, inventive ● Works well with others in teams ● Seeks solutions even when there is little information available

17. SPE Trying to Improve the Industry’s Image l SPE Magic Suitcase l High School Recruiting Fairs – Nov. 14-17 l Scholarships for Engineering – Feb. 15 l SPE.org - PowerPoint slides l Presentations in the schools, civic clubs l Toastmasters

18. Petroleum Industry is High-Tech

19. Keep Houston Oil Capital of the World