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Going Digital, Much More
To It Than Just Capturing Data Digitally
by
Robert D. (Bob) Kiker, PTTC Texas Permian Basin
Director
Excerpts in
PTTC Network News, 2nd Quarter 2004
"What are pumpers in the Permian Basin doing with regards
to using hand-helds or laptops to capture their field data, or
are they still relying on hand-prepared reports?" This
straightforward inquiry led to a survey, primarily of Permian
Basin operators. Operators ranged from very small independents
to large independents to majors. Visits were with company
owners, pumpers, production engineers, field foremen and
office accounting managers.
This article focuses on the field perspective and production
accounting, while acknowledging that financial accounting exerts
significant influence on the systems selected. Consider this an interim
report with more visits planned since technology is improving and more oil
and gas operators are initiating pilot programs using hand-helds and
laptop computers for data gathering and transmission. There are many
different perspectives represented in the results so far. If asked to
state just one conclusion, the title of this article expresses it well.
Objective of the
Survey
The objective of this survey was to: (1) accumulate information on the
techniques/methods operators in the Permian Basin were using to collect,
record and transmit daily production (oil, gas, water) and other
associated operational data; and (2) determine if the methods employed
correlated with size of the operator (operations) and/or location (remote
or centralized).
The first objective involved visiting operators both in their
production offices and field offices. Also a significant amount of
information was gathered by telephone. This has been time consuming but
rewarding. Below is a list of the companies contacted, followed by a list
of companies where some information was gathered. Overall, I talked with
18 different operators, making 25 visits.
Regarding Operator Size and Location, The Survey Reveals: No direct
correlations could be made with the method employed. Why?
Practices are in rapid flux, being strongly influenced by continued
disruptions from mergers and buy-outs. The two factors that exert the
strongest influence on what companies are doing are (1) owner/upper
management philosophy and (2) clout of the accounting department, which is
stronger in this post Sarbanes-Oxley world. Notice that I did not mention
company size. From all the discussions I have had with operators so far,
Company Size and Location of Production (remote or centralized) does not
have a major impact. In fact, in several smaller companies, good
communication between the pumpers/field operators and the office
management/production accounting personnel are enabling them to navigate
the digital world quite well. Deployment depends upon operators using the
information highway to learn what technology is available.
Summary of Methods and Techniques
There is a "mix" of methods being used by the operators surveyed. The
method tends to be a result of the needs or the philosophies of the
operators, the status of mergers and buy-outs (who is the surviving
entity) with new systems being tried, and communications between field and
office. There was a genuine interest in the operators to learn what others
are doing, and this is fueled by the very recent improvement in the
technology of digital data gathering. More companies are initiating pilot
projects as a result of the improvement in the technology. The new
technology provides more interfacing between the data gathering devices
and accounting software, which in the eyes of a lot of operators is a
"must." It is quite apparent that accounting is becoming a bigger player.
Also the technology can now provide more regulatory reporting than before.
The recent developments also provide better user-friendly data displays
and the pumpers/lease operators are less fearful of learning the digital
world.
- Hand-Held Computers: Field Direct-Production Explorer; Merrick-Pro
Count
- Laptops: Used as an alternative to Field Direct and Merrick Hand-held
computers (choice of pumper/lease operator), or utilizing individual
software components. Data are gathered and either electronically
transmitted via a modem or paper faxed. Laptop software used includes:
Local- developed Excel spread sheets; TOW; LOWIS; WINTANK; ACCESS database
internally-developed; TOTAL ROD
- SCADA Systems
- Pencil: Hand-prepared Saddle Blanket and Grease Sheets (Old methods)
- Combination of ALL!!!
Field Data Gathering and Transmission Must
Satisfy Many “Users”
When going digital, one must understand the role or perspective of the
"users." Perspectives that must be considered include:
- The Pumper or Lease Operator
- The Production Supervisor (Foreman/Superintendent)
- The Production Accounting Administrator/Clerk
- The Financial Accounting Department
The Pumper/Lease Operator Perspective
The pumpers favor methods that offer simplicity and reduce their
workload, whether it is digital or hand-prepared. For digital, some like
hand-helds while others prefer laptops because either their fingers fit
the keyboard better, or they like a larger screen display. Others like the
old-fashioned hand-entered grease sheet or blanket sheet. Some are using
the Field Direct or Merrick System, while others are using
locally-developed software in their laptops. Almost all record their tank
gages by hand and then transfer the data into the hand-held unit or the
laptop. This is good from a safety issue, since it is not wise to carry
anything unnecessary up the tank ladder when gauging the tank, especially
in an H2S environment.
Some pumpers fear losing their data with digital recording, so they
would still enter their data into a paper document for backup. The new
hand-held units provide for data backup, so pumpers are beginning to lose
their fear over data loss. In a related vein, one contract pumper stated
that the new hand-held unit he has been using is superior to the previous
one. He claims he could "crash the old one" but he can't the new one.
Another contract pumper, who pumps for several operators, said that the
hand-held unit he was using for one company on 15 wells reduced his work
one hour per day on those 15 wells.
Five company pumpers who are using a sophisticated database on laptops
complained about the maintenance of the database. When an update or change
was needed, the laptops had to be physically retrieved and worked on,
which meant a day or two of operating without the use of the laptop.
The Office "Production Accounting" Perspective
Production accounting here is defined as the software and procedures
that are used to take daily production (oil and gas) accounting, and could
include water injection and disposal volumes, to properly allocate lease
data. Engineers like information, such as well tests, injection pressures,
and wellhead pressures, which can now be captured by digital means.
Although data are used by engineers, the crux of data gathering techniques
are more governed by production accounting, with input from financial
accounting in many cases. During this survey, more time was spent with the
office production accounting personnel than with engineering.
The survey discovered that previous hand-held computer and laptop
programs for field data capture did not interface easily with production
accounting software. Many times this dictated that data be transmitted to
a database where the data were integrated into a format that would
interface with the production accounting software before being forwarded.
This inefficiency still occurs, but there have been major improvements and
now hand-held and laptop software can interface with a lot of the
production accounting systems.
Selected Comments From Companies Interviewed
The following excerpts from selected company interviews convey key
insights gathered during the survey. In some cases, I have added comments
in "italics" addressing their comments. As you will note, the logic of
capturing field data digitally to enable more accurate and timely data
availability sometimes gets lost in the shuffle of the processes used.
Company 1 (Medium size, privately-owned independent)—Prefers
hand-prepared reports.
- Better accuracy (Errors may be more likely the more times data are
transferred.)
- More personal ownership with hand documentation
- Costs—do not like fixed costs (Need to look at cost of paper and time
for paper trail)
- Doubt it would reduce the number of pumpers. (The primary reason is
to give pumpers more profitable time)
- Would have to switch to a new accounting system. (Most new digital
programs interface with accounting systems and, if not, the programming
can be done)
- Concerned about implementation time and training costs associated
with new system
Company 2 (Small-medium size,
privately-owned independent, 700 wells in Permian Basin, 700 wells in
Oklahoma)—Prefers hand-held computers
- Using Field Direct (Considered user friendly), happy with 15 contract pumpers using.
- Piloted for 4 months; has been used Company-wide for over one year
- Only problem encountered is with a few unreliable phone lines in
remote areas
Company 3 (Small-medium size, publically-owned independent operating in
Mississippi)—Prefers hand-held computers.
- Using the Merrick system since Nov 2002
- Waiting on new pocket units that can expand to include environmental
reporting and other functions
- Tried TOW (Landmark oracle production accounting data base, now owned
by Halliburton)—did not like the slow response to company requests
- Looking at switching to SAP accounting system
Company 4 (Large publically-owned independent)—Uses Laptops to enter data
into a company network.
- Pumpers use laptops to enter their daily production data into TOW
- Pumpers capture data by hand then enter the data into the laptop
workstations toward the end of the day.
- Pumpers not happy with system. To change or upgrade the system each
laptop has to be retrieved and worked on. Causes delays. Office personnel
verified that they were not happy with the TOW support, that it took too
long for them to honor requests.
- Company is trying a pilot with hand-helds in the Hugoton Field.
Company 5 (Small-medium size, privately-owned independent)—Uses laptops
with software package.
- Uses WINTANK 2.01 software on laptops
- Pumpers mail a computer printout into the office on a weekly basis,
unless it is an important new development well or lease and then the
pumper calls in the data daily. (If they have a laptop, why not transfer
the data electronically daily. Using a modem is cheaper than faxing or
mailing.)
- Some pumpers still using hand-prepared reports
- Concerned about fixed costs of one hand-held system. (Need to really
look at the costs they are already incurring with the paper system plus
the time)
Company 6 (Medium size, publically-owned operating company, 900
wells)—Faxing production data.
- Previously used Field View on a laptop computer system. Only had one
computer for 8 pumpers so waiting time became a problem.
- Now they are entering their data by hand-prepared sheets that are faxed
to a field production clerk who has to re-enter all the data into a Lowis
system for their production accounting. (This is extremely time consuming
for the field Production Clerk, as well as the pumper's time. Faxing is
slower)
- Also their field supervisors still require a separate excel spreadsheet
for their use that the production clerk has to prepare.
- They are considering a pilot with hand-helds.
Company 7 (Small privately-owned independent)—Uses hand-held computers and
laptops for data collecting.
- Use Field Direct by pumpers for daily production, well tests, downtime,
fluids
- Use 4 palm pilot units and 8 laptops
- Office says it cuts the pumpers time by 50%
- Their working interest owners and CEO use Field Direct to monitor daily
operators on a "read only" basis.
Company 8 Small privately-owned independent)—Uses both hand-held and
laptops (pumper preference).
- Use Merrick's latest version (eVin)
- Totally pleased—like the 30 day graphs and 7 day averages
- Much faster to enter than Field View
- Does interface with Excalibur and Aries software
- Negative figures can be displayed in red to alert you to a problem
Company 9 (Very large, publically-owned independent)—Uses a combination of
methods due to mergers.
Majority of fields are automated. Data is retrieved thru SCADA systems.
SCADA systems bring in LACT reading but not test data. Some sites are
pencil and paper; hand-helds and laptops are not used for data collection
and entry. There is the capability to enter data into the SCADA systems
from vehicles. Laptops are used some for data monitoring only. Originally
some palm pilots were used to enter data into various meters but they had
problems with the data entry. These were a low $ unit, the batteries would
die, and they were poorly designed, not allowing for fat fingers. Actually
the test of the palm units was doomed in the beginning because the
instruments were cheap in quality. This company has just finished a major
study on what methods they will be trying in the future.
Moving Beyond Data Capture to Control
Digital data collection by pumpers still requires that they visit the well
site, typically every day. With costs for basic automation systems
dropping every day, a degree of automation or control becomes more viable.
Early morning lists of "normally operating" and "exception" wells/leases
allow pumpers/field staff to focus their efforts where it will have the
most impact. All wells/leases still need visits, but those operating
normally don't need visiting every day. As with the overall subject of
field data capture, owner/management philosophy exerts a strong influence
on the extent that operators employ automation. The financial accounting
perspective may also see benefits from the additional data gathered with
automation.
Future Game Plan
As noted, technologies are changing rapidly and many companies are now in
the middle of pilot tests of new (for them) systems. I will continue
following up with companies I have contacted and welcome comments or
insights (phone 432-552-3432, E-mail
pttcpermianbasin@marshill.com) from
additional companies. My intent is to become an objective resource of
"what's happening" in this field. PTTC plans future workshops, so watch
the calendar (www.pttc.org/events.htm) this fall for something scheduled in your area.
For further information, contact Lance Cole at
lcole@pttc.org.
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