GE launches Digital Oil & Gas to focus IoT development, partners BP and Paradigm
February 2, 2016
GE has launched a new division devoted to IoT and digitisation of industrial infrastructure in oil and gas exploration and production. The new business, Oil & Gas Digital Solutions, is partnering on a pilot programme with BP to reduce unplanned downtime for offshore operations, and has also entered a partnering with subsurface software company Paradigm to create a platform for optimizing production by integrating subsurface knowledge with production intelligence.
Matthias Heilmann has been appointed as head and chief digital officer of Oil & Gas Digital Solutions. Heilmann will oversee the development of digital capabilities powered by Predix - GE’s cloud platform for the Industrial Internet - driving asset and operations optimization for the oil and gas industry. Heilmann joins GE from ABB.
“Digitization has become not only a competitive differentiator but increasingly, a necessity,” said Lorenzo Simonelli, Chief Executive Officer of GE Oil & Gas. “We are evolving our business and digital offerings to match the needs of our customers, partnering with them to embrace the transition and help make their businesses stronger long-term.”
GE and BP are partnering to tackle unplanned production downtime, particularly in offshore operations, which can have a major impact on revenue and profitability. The two companies will develop and pilot a new digital solution for BP's offshore operations in the Gulf of Mexico. According to GE, this pioneering solution aims to increase facility reliability by looking holistically at the process level. Moving beyond the equipment, the solution will introduce new process surveillance and predictive analytic tools to provide early warnings of potential facility issues.
“As we move to a digital world in the oil and gas industry, we look to digital technologies to help us move to the next level of operational excellence. These digital technologies offer the opportunity to collaboratively develop industry-leading solutions to address some of the most significant challenges in field operations,” said Dave Feineman, senior advisor on digital technology in BP’s Upstream Technology organization.
This solution will aim to provide analytical insights at enterprise scale through knowledge sharing on demand. It aims to allow process engineers to eliminate disruptions by being proactive and analyse problems more efficiently, based on having underlying insights available when needed to advise the offshore team and take action.
GE Oil & Gas and Paradigm have partnered to deliver Reservoir Driven Production Optimization (RDPO) as part of GE's digital suite for oil and gas. Paradigm, an independent software developer for the oil and gas industry, is a developer of reservoir modelling and petrotechnical services. RDPO, powered by Predix, is an upstream solution for optimizing field level production by integrating Paradigm's subsurface knowledge with GE's production intelligence.
According to GE, improving reservoir problem detection and treatment design alone can reduce operational costs by 10-25% through fewer interventions and more efficient resource utilization. RDPO aims to provide a clearer understanding of the reservoir geology, permanent monitoring of wells, and predictive analytics, so that operators are better equipped to understand risks and act upon them.
With growing instrumentation throughout the oilfield, operators have access real-time production data such as pressures and flow rates. RDPO is designed to enable production engineers to make use of all that data, conduct nodal analyses and evaluate diagnostics via links to a 3D model of the subsurface. The result is a better understanding of the impact of production interventions before taking costly and potentially adverse actions.
“Today, production engineers often rely on single well analysis to make production decisions that have field-wide impact. Partnering with GE, we can now provide a unified view of both production and reservoir data for optimal decision making,” said Arshad Matin, CEO of Paradigm.
Through this collaboration, GE and Paradigm aim to help operators exceed production targets and manage operational costs by selecting superior infill drilling locations, improving well intervention strategies and optimizing and predicting flood behaviour.