Saturday, 30 May 2015

Oil glut Part 3: Big data will propel the next U.S. shale oil boom

The spectacular emergence of an industry that drills in shale formations to produce hydrocarbons is generating massive quantities of untapped data. The $600 billion in U.S. shale infrastructure investments and the nearly 2,000 million well-feet drilled has produced hundreds of petabytes of relevant data. This vast, diverse shale-data domain—comparable in scale to the global digital health care data domain—remains largely unexplored and is ripe to be mined by emerging big-data analytics.

In every sector of the economy, the availability and collection of data from machines, services, and business operations are growing at an astonishing faster rate. The use of big-data analytics offers nearly every industry the potential for unprecedented insight, efficiency, and economic value. America’s shale industry is similar to many other large, complex businesses—such as aviation, agriculture, manufacturing, entertainment, and health care—in the scale and diversity of its operations. What distinguishes shale is its unique combination of youth, the diversity and scale of data associated with its operations, and the variety of environments in which operations occur.


Cumulative Distance Drilled in Horizontal Shale Wells
Horizontal Distance Drilled Cumulative GRAPH


Data are associated with and often collected for every foot of well drilled and operated, including: for the seismic subsurface maps; for the sensors used to analyze the earth during drilling; for the trains and trucks carrying sand and equipment to the site; for the pumps and flow meters pushing sand and water underground; for all the hardware and software moving the product to market; and for the array of safety and environmental compliance-related equipment.
The quantity of shale-related data generated can reach 1 megabyte per foot drilled; the total quantity of data generated per well can vary from 1 to 15 terabytes. With the proliferation of ever-better sensors and the continued decline in the cost of accessing, transmitting and storing bytes, the data flows will expand.
In total, across all the different and disconnected operational silos, there are likely (no one yet tracks it) on the order of 600 petabytes of data associated with finding, stimulating, and extracting and moving shale hydrocarbons. (For comparison, there are about 500 petabytes of global digital health care data.
Thus the single biggest disruption now coming to the shale industry—one that will define the emergence of Shale 2.0—comes not from individual technologies or digital connectivity (the “connected oil field”), but from the use of big data for radically better asset optimization and operations.

http://www.forbes.com/sites/markpmills/2015/05/29/oil-glut-part-3-big-data-will-propel-the-next-u-s-shale-oil-boom/?ss=energy