An IIoT solution for chemical injection in upstream oil and gas

Category:
Industry Trends
Applications such as artificial lift, pump optimization, compressor and turbine optimization are among the “low hanging fruit” for which IIoT enabled solutions will provide ROI and enable companies to operate in these times of ever more challenging hydrocarbon prices.

Chemical tanks and pumps are usually monitored manually today with technicians driving to each well site to check treatment status and uncover issues such as low tank levels, leaks, inoperable pumps, and over/under target injection rates. This result in not only high labor, transportation and chemical costs, but also significantly impact downtime and production levels.

WellAware – a provider of end-to-end solution for oilfield data collection, storage, visualization, mobility and predictive analytics (which briefed ARC before) - recently launched its line of chemical management and WellAware Chemical Optimization solutions that help overcome some of the challenges companies face when manually monitoring and controlling pumps and chemical tanks out in the field. WellAware developed its products after being approached by both exploration and production companies and chemical service companies looking to reduce operating costs, minimize pump and well downtime, and optimize production. With WTI futures closing recently in the low $40's/bbl range, these companies can no longer afford to hire another field technician or pump hand, or to give someone a truck and tell them to drive and check on wells each day, and enter data manually into a spreadsheet.

Three layers combine to contribute to IIoT improvements in the oilfield: data measurement, data collection, and visualization/alerting.

First, all the hardware to measure data needs to be assembled in the field. A typical oilfield with 1,000 wells could have 10,000 different sensors and equipment from different OEMs that speak different dialects. Once it’s wired up, the challenge is collecting the data via a telemetered means. That’s usually done either putting a cellular radio on the assets. But just as with cell phones, getting access can be difficult. In places like south and east Texas, cellular access is below 40 percent, and in the Permian Basin, less than 20 percent on a square mile percentage. The remote locations of many oil wells means that cellular networks often fall short of providing needed data coverage. Satellite monitoring is cost-prohibitive for frequent polling rates, and 900 MHz require a high upfront capital expenditures and are often plagued by interference issues. The third layer – visualizing data and performing alerts on that data requires domain expertise and sophisticated analytics.

The ability to collect data via remote telemetry using the company’s heterogeneous communications network - which supports multiple wireless standards to ensure availability in all regions - is extremely important from a cost standpoint. According to the WellAware, some operators said that over 80 percent of their operating budgets are being spent on production chemicals in shale plays, which are different animals from conventional plays and pose different production challenges. Having the collected data, the company’s solutions provide configurable chemical usage reports and dashboards so that operators and chemical service providers can analyze the effectiveness of their chemical management programs and identify needed changes. Current chemical injection rates can be directly compared to the latest production levels, and new recommended injection rates are provided to reflect changes in well conditions. This transparency allows operators and service providers to have the most effective treatment program to optimize production at the lowest possible cost.

Although WellAware is only two years old, it has attracted investment and interest from Dick Cheney, former U.S. vice president and former chairman and CEO of Halliburton, Mexican telecom investor Carlos Slim and Ed Whitacre, former CEO of AT&T and General Motors and a former member of ExxonMobil’s board.

In last week’s blog, I wrote about another IIoT company, Ambyint, and its IIoT solution for artificial lift. I plan to write a follow-on blog about how Ambyint's solution will be expanded to address the opportunity for chemical injection applications, much like today's blog.  Things are heating up!

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