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Transportation Research Board Washington, D.C. 2016 www.TRB.org Application of Remote Real-Time Monitoring to Offshore Oil and Gas Operations T R A N S P O R T A T I O N R E S E A R C H B O A R D S P E C I A L R E P O R T 3 2 2 Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations Transportation Research Board
Transportation Research Board Special Report 322 Subscriber Categories Policy; data and information technology; energy Transportation Research Board publications are available by ordering individual publi- cations directly from the TRB Business Office, through the Internet at www.TRB.org or nationalacademies.org/trb, or by annual subscription through organizational or indi- vidual affiliation with TRB. Affiliates and library subscribers are eligible for substantial discounts. For further information, contact the Transportation Research Board Busi- ness Office, 500 Fifth Street, NW, Washington, DC 20001 (telephone 202-334-3213; fax 202-334-2519; or e-mail TRBsales@nas.edu). Copyright 2016 by the National Academy of Sciences. All rights reserved. Printed in the United States of America. NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the National Academy of Medicine. The members of the committee responsible for the report were chosen for their special competencies and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to the pro- cedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the National Academy of Medicine. This study was sponsored by the Bureau of Safety and Environmental Enforcement of the U.S. Department of the Interior. Cover photos (from top): Onshore remote real-time monitoring of drilling operations; offshore team using real-time data on rig floor. (Photographs used with permission. Â©2016 BP America Inc. All rights reserved.) Typesetting by Circle Graphics, Inc. Library of Congress Cataloging-in-Publication Data Names: National Research Council (U.S.). Transportation Research Board. | National Research Council (U.S.). Transportation Research Board. Committee on the Appli- cation of Real-Time Monitoring of Offshore Oil and Gas Operations, issuing body. Title: Application of remote real-time monitoring to offshore oil and gas operations / Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations, Transportation Research Board, The National Academies of Sciences, Engineering, and Medicine. Other titles: Special report (National Research Council (U.S.). Transportation Research Board) ; 322. Description: Washington, D.C. : Transportation Research Board, 2016. | Series: Trans- portation Research Board special report ; 322 | Includes bibliographical references. Identifiers: LCCN 2016021952 | ISBN 9780309369787 Subjects: LCSH: Offshore oil well drillingâUnited StatesâSafety measures. | Offshore oil industryâRisk managementâUnited States. | Offshore gas well drillingâUnited StatesâSafety measures. | Offshore gas industryâRisk managementâUnited States. | Environmental monitoringâUnited States. | Electronic surveillanceâUnited States. | Automatic data collection systemsâUnited States. Classification: LCC TN871.3 .A665 2016 | DDC 622/.338190284âdc23 LC record available at https://lccn.loc.gov/2016021952 ISBN 978-0-309-36978-7
The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, nongovernmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to increase the benefits that transportation contributes to society by providing leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Boardâs varied committees, task forces, and panels annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.
Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations Richard A. Sears, Stanford University, Stanford, California, Chair James S. Crompton, Reflections Data Consulting, LLC, Colorado Springs, Colorado James S. Dyer, University of Texas at Austin Paul S. Fischbeck, Carnegie Mellon University, Pittsburgh, Pennsylvania James H. Garrett, Jr., Carnegie Mellon University, Pittsburgh, Pennsylvania N. Wayne Hale, Jr., Special Aerospace Services, LLP, Boulder, Colorado Stig O. Johnsen, SINTEF and Norwegian University of Science and Technology, Trondheim, Norway Morrison R. Plaisance, Independent Consultant, Sugar Land, Texas Manuel Terranova, Peaxy, Inc., San Jose, California Peter K. Velez, Peter Velez Engineering, LLC, Houston, Texas Transportation Research Board Staff Mark S. Hutchins, Study Director
Preface The Bureau of Safety and Environmental Enforcement (BSEE) of the U.S. Department of the Interior requested in July 2014 that the Marine Board of the National Research Council (NRC) conduct a study advising the agency on the use of real-time monitoring (RTM) to improve the safety and reduce the environmental risks of offshore oil and gas opera- tions. The charge from BSEE and related background material are given in Chapter 1. Specifically, the committee was asked to address five main tasks on the use of RTM (see the statement of task, Box 1-1 in Chapter 1): 1. The critical operations and specific parameters that should be moni- tored from drilling and producing facilities to manage and mitigate environmental and safety risks (e.g., to reduce the risk of well kicks, blowouts, and other sources of casualties), 2. The role that automation and the use of predictive software tools should play in RTM, 3. The role that condition-based monitoring should play in RTM and how the operating equipment using condition-based monitoring could be tailored to and/or used for RTM, 4. Whether RTM should be incorporated into BSEEâs regulatory scheme in either a prescriptive or performance-based manner, and 5. How BSEE should leverage RTM to enhance its safety enforcement program. The findings and recommendations (see Chapter 4) represent the con- sensus effort of a committee of technical experts. Appointed by NRC, the study committee consists of 10 members from industry and academia with expertise in offshore oil and gas drilling, operations, and safety. The vii
viii Preface expertise of the committee members includes risk analysis, petroleum engineering, government regulations, information technology and data analysis, and operations in high-risk environments. Complete com- mittee biographical information is provided at the end of the report. The diverse background of the committee membership proved to be valu- able, since the committee had to rely heavily on its collective judgment and experience in providing its recommendations in this report. As a central part of its remit, the committee held an industry workshop on April 20â21, 2015, in Houston, Texas. In addition, the committee met six times over a 12-month period and carefully examined the topic of remote real-time monitoring (RRTM). Several RRTM centers were visited. The committee visited Houston-area RRTM facilities for offshore drill- ing and met with blowout preventer manufacturers, service companies, and operating companies to gain insights into the applications of RTM. During the final stage of the report review process, BSEE released its final Blowout Preventer Systems and Well Control rule.1 Given the timing of the release, the committee was unable to include additional information about this rule in its final report. The report that follows represents the consensus opinions of the committee members and presents the commit- teeâs findings and recommendations on the use of RRTM by the offshore oil and gas industry and by BSEE. ACKNOWLEDGMENTS The committee thanks the many individuals who contributed to its work. Specifically, the committee acknowledges John Cushing, Julie Conklin, and the other staff members of BSEE. The work of the committee was facilitated by the thoughtful advice and background information pro- vided by all of the presenters at its meetings and workshop and by industry officials who provided insights during the course of the study. To seek additional information on and a better understanding of the operations of RRTM, the committee visited several centers in the Houston area, includ- ing those belonging to BP, Chevron, Shell, Anadarko, and Schlumberger. 1 The final rule is available at https://www.gpo.gov/fdsys/pkg/FR-2016-04-29/pdf/2016-08921.pdf.
Preface ix In addition, the committee met with GE Oil and Gas, National Oilwell Varco (NOV), Ashford Technical Services, and Pulse Structural Monitoring. The committee received presentations and briefings from the follow- ing individuals, whom it thanks: Doug Morris, BSEE; John Cushing, BSEE; Mark Anderson, 838, Inc.; Holly Hopkins, American Petroleum Institute; Chris Harder, BP; Barry J. Gaston, Shell; Todd Durkee, Anadarko Petroleum Corporation; George Buck, Chevron; Charlie Williams, Center for Offshore Safety; Norman D. Knight, National Aeronautics and Space Administration, Johnson Space Center; Toon Bairaj-Vinichai, Chevron; Jim Grant, BP; John Sutler, BP; George Stalter, BP; Nancy Seiler, Anadarko Petroleum Corporation; Curtis Austin, Anadarko Petroleum Corporation; Susan Dwarnick, BSEE; Darryl Fett, Total E&P USA; Joseph Leimkuhler, LLOG Exploration; Lisa Grant, Noble Energy; Steven Kendrick, BHP Billiton; Dale Bradford, Murphy Oil Corporation; Anil Wadhwa, Baker Hughes; Kevin Goy, Schlumberger; Andreas Sadlier, Halliburton; Chuck Salminen, Weatherford; Lee Geiser, Petrolink; Eric van Oort, Genesis Real-Time Systems; David Stevens, Chevron; Chris Hall, Marathon Oil; Steve Bodden, Stone Energy; Amro Hamza, Anadarko; Tom Moroney, Shell; Harris Reynolds, Diamond Offshore Drilling; Jean-Paul Buisine, Transocean Offshore Deepwater Drilling; Tony Hogg, Pacific Drilling; Brian Wright, CAD Control Systems; Daniel Marquez, Athens Group; Evan Zimmerman, Offshore Operators Committee; Alan Spackman, International Association of Drilling Contractors; Anton du Preez, National Ocean Industries Association; Frank Chapman, Ashford Techni- cal Services; Ron Brown, Ashford Technical Services; Timothy W. Turner, Schlumberger; Robert J. Alvarado, Schlumberger; Joey Rodriguez, Pulse Structural Monitoring; Silvia Gonzalez, GE Oil and Gas; Luis Huerta, GE Oil and Gas; Martha C. Saker, GE Oil and Gas; Frank Springett, NOV; Clay Simmons, NOV; Thore Langeland, Exploration and Production Information Management Association; Trond Lilleng, StatOil (submit- ted presentation); Norman Comstock, Berkeley Research Group; Andrew Jaffrey, Cameron Drilling Systems; Captain Andrew E. Tucci, U.S. Coast Guard; and Fred Dupriest, Texas A&M University. This study was performed under the overall supervision of Stephen R. Godwin, Director, Studies and Special Programs, Transportation Research Board. The committee acknowledges the work and support of Mark S. Hutchins, who served as study director and assisted the committee
x Preface in the preparation of its report. The committee also acknowledges the work and support of Karen Febey, Senior Report Review Officer, who managed the report review process. Norman Solomon edited the report; Janet M. McNaughton handled the editorial production; Juanita Green managed the production; and Jennifer J. Weeks prepared the manuscript for prepublication web posting under the supervision of Javy Awan, Director of Publications. Timothy Devlin, Claudia Sauls, and Amelia Mathis assisted with meeting arrangements and communications with committee members. The committee extends its sincere gratitude to the diligent and capable staff of the National Academies. Without their efforts and support, production of the report would not have been possible. This report was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with pro cedures approved by NRCâs Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. The committee thanks the following individuals for their review of this report: Elmer (Bud) P. Danenberger III, Independent Consultant, Reston, Virginia; Fred Dupriest, Texas A&M University, College Sta- tion; Delores M. Etter, Southern Methodist University, Dallas, Texas; W. Michael Hanemann, University of California, Berkeley; Roland N. Horne, Stanford University, California; W. Allen Marr, Geocomp Cor- poration, Acton, Massachusetts; R. Keith Michel, Webb Institute, Glen Cove, New York; and Donald L. Paul, University of Southern California, Los Angeles. Although these reviewers provided many constructive comments and suggestions, they were not asked to endorse the committeeâs findings or recommendations, nor did they see the final draft of the report before its release. The review was overseen by Bonnie J. McCay (NAS), Rutgers Uni- versity (emerita) and by Susan Hanson (NAS), Clark University (emerita). Appointed by NRC, they were responsible for making certain that an
Preface xi independent examination of this report was carried out in accordance with institutional procedures and that all review comments were care- fully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution. âRichard A. Sears, Chair Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations
Acronyms and Abbreviations ALARP as low as reasonably practicable ANSI American National Standards Institute APD Application for Permit to Drill API American Petroleum Institute BAST best available and safest technology BOEM Bureau of Ocean Energy Management BOEMRE Bureau of Ocean Energy Management, Regulation, and Enforcement BOP blowout preventer BSEE Bureau of Safety and Environmental Enforcement CBM condition-based maintenance CBR case-based reasoning CRIOP Crisis Intervention and Operability CRM crew resource management DDRS Daily Drilling Report System DFU defined hazards and accident conditions DOI U.S. Department of the Interior DW data warehouse DWOP Deepwater Operations Plan E&P exploration and production EP exploration plan ETAC Engineering Technology Assessment Center FFRDC federally funded research and development center FPSO floating production, storage, and offloading GOM Gulf of Mexico HFE human factors engineering HSE health, safety, and environmental xiii
IADC International Association of Drilling Contractors IEC International Electrotechnical Commission IPAA Independent Petroleum Association of America ISA International Society of Automation ISS International Space Station IT information technology IWC intelligent well completions JIP joint industry project JSC Johnson Space Center KPI key performance indicator LWD logging while drilling ML machine learning MMS Minerals Management Service MODU mobile offshore drilling unit MWD measurement while drilling NAE National Academy of Engineering NASA National Aeronautics and Space Administration NIST National Institute of Standards and Technology NOIA National Ocean Industries Association NPT nonproductive time NRC National Research Council NTNU Norwegian University of Science and Technology OCS outer continental shelf OCSLA Outer Continental Shelf Lands Act OEM original equipment manufacturer OESI Ocean Energy Safety Institute OGP International Association of Oil and Gas Producers OIG Office of Inspector General OLF Oljeindustriens Landsforening OOC Offshore Operators Committee OT operational technology PESA Petroleum Equipment Supplier Association PINC potential incident of noncompliance PLC programmable logic control PRODML Production Markup Language PSA Petroleum Safety Authority (Norway) xiv Acronyms and Abbreviations
R&D research and development RISI Repository for Industrial Security Incidents RNNP RisikonivÃ¥ i norsk petroleumsvirksomhet RP Recommended Practice RRTM remote real-time monitoring RTD real-time data RTM real-time monitoring SCADA supervisory control and data acquisition SEMP safety and environmental management program SEMS Safety and Environmental Management Systems SINTEF Stiftelsen for Industriell og Teknisk Forskning SMS safety management system SPE Society of Petroleum Engineers TA&R Technology Assessment and Research TRB Transportation Research Board 24/7 24 hours a day, 7 days a week USCG United States Coast Guard VSAT very small aperture terminal WITS Wellsite Information Transfer Specification WITSML Wellsite Information Transfer Standard Markup Language XML Extensible Markup Language Acronyms and Abbreviations xv
Contents Executive Summary 1 1 Background 5 BSEE Priorities and Current Status 7 RTM and Offshore Oil and Gas Operations 8 Study Objective and Charge 10 Terms and Assumptions 12 Proposed Rulemaking 13 Organization of This Report 15 2 Industry Overview 18 Industry Processes and Interactions 18 Summary Points About RTM from Previous Reports 36 Summary Discussion 46 3 Benefits of and Considerations for Remote Real-Time Monitoring 49 RRTM as BAST 49 Notional Benefits of RRTM 51 Considerations and Challenges for RRTM 60 Risk Assessment and Risk-Based Regulations 70 Potential of CBM and RRTM 80 Summary Discussion 84 4 Findings and Recommendations 89
Appendixes A Notice of Proposed Rulemaking Concerning Relevant Real-Time Monitoring Provisions in the Proposed Arctic Rule 101 B Notice of Proposed Rulemaking Concerning Relevant Real-Time Monitoring Provisions in the Proposed Blowout Preventer Rule 102 C Potential Barriers Related to Data Transfers and Communication Alternatives 105 D Telecommunications Options for Offshore Drilling and Production Operations for Connections to Onshore Headquarters Support Centers 107 Study Committee Biographical Information 111