Next* Magazine, Issue 5
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* Next The Next Generation of Energy Technology * The Digital Oil Field Goes Global Contents Departments Features 2 Here and Now 8 Cover Story: 26 Making Connections Read about Chevron’s successes in cross- The Digital Oil Field Goes Global Ashok Krishna, vice president of Downstream industry collaboration, Downstream’s Technology and connectivity enable the Technology, discusses Chevron’s hydro- computing power, and an innovative microgrid best minds to take on the biggest challenges processing advantage and collaborations for a county jail. together in real time, worldwide. with Upstream’s operations. 36 Next Generation 16 Taking Technology to New 28 Leading the Way From the hot summer desert to talented Heights to Meet Future Energy With its new manufacturing facility, Chevron summer interns, both contribute to the next Demand is set to become the world’s largest producer generation of energy. Paul Siegele, president of Chevron of premium base oil. Energy Technology Co., explains how technology development links innovation 30 Securing New Energy to business needs. With Chemical Fingerprinting Chemostratigraphy provides new clues in 18 New Technologies Help Tap rocks to help geologists locate oil and gas. an Old Resource Chevron’s work is advancing environmental On the Cover: In operations around the 34 View From the Bottom globe, Chevron uses technology to connect stewardship and performance in producing Four-dimensional data from the depths reveal abstractions to actions. natural gas from shale. how reservoirs change during production. Opposite Page: Chevron employees, from left, Santi Manuhutu, Vice President and 22 The Sun Shines on Questa Chief Technology Officer John McDonald, Beneficial reuse turns the site of a coal mine Siobhan Dye and Jean-Paul Sebagarambyi. into a source for renewable energy. Next* Contributors Each company affiliated Articles in Next* are for Issue 5, September 2012 Peter Bartelme, Grant with Chevron Corporation informational purposes only. Faulkner, Jim Hendon, is a separate entity that In publishing them, and in John W. McDonald Robert Kerns, Tommy Lyles, manages and controls its using terms of convenience Vice President and Harvey Marks, Greg Vitiello own affairs. The use of such as “stakeholder(s),” Chief Technology Officer such terms as “company,” “partner(s)” and “partner- Chevron Corporation Design by DCP “Chevron,” “organization,” ship,” Chevron does not “it(s),” “our(s),” “their(s),” bestow any legal right upon, Diane Padurean Next* “we” and “us” and of or assume any legal duty Manager Chevron Corporation abbreviated job titles is only to, any person, entity or Technology Communications A-2 for convenience and is not group beyond those already P.O. Box 6078 intended as an accurate existing by operation of Lara Sweeney San Ramon, CA 94583-0778 description of individual governing law or regula- Editor status and corporate tion. Chevron specifically Chevron.com/Next via the reply card or at relationship. reserves its full legal rights, Eileen Ostrow Feldman Chevron.com/NextFeedback. including the right to Managing Editor Tell Us What You Think— Your views will help us shape © 2012 Chevron U.S.A. Inc. assert all appropriate legal and Join Us! this publication to meet our All rights reserved. Material defenses, and no articles Patty Allison We are pleased to mail readers’ needs. in this issue may be should be interpreted as Communications Advisor this free publication to reprinted with written a waiver, legal admission our valued external Next* Digital For a down- permission. or acceptance of legal Libby Estell stakeholders. To receive loadable version of Next*, to responsibility. Kristin Rosevear future issues, simply download the iPad app, and NEXT*® is a registered Web Advisors fill in the enclosed to view Chevron technology trademark of Chevron postage-paid reply card, videos, please visit Chevron. Intellectual Property LLC. Catherine Miller if you haven’t previously com/Next. Also for the iPad, Video Advisor done so. Also tell us search for Chevron Next on what you think of Next* the App Store. COVER PHOTO: CORBIS PHOTO: COVER Welcome Enabling Energy for Human Progress nergy that is reliable and affordable is In Upstream, advanced developments— we take an open-innovation approach to E fundamental to human progress and such as proprietary seismic imaging and technology development, working in close economic prosperity. Energy drives virtually enhanced drilling and completions technol- collaboration with our operations worldwide. every aspect of the global economy. Indeed, ogies—help us find and produce resources We systematically identify, develop, qualify, it has been behind the great advances in more effectively and with a smaller envi- integrate and deploy technology from our living standards and societal growth through- ronmental footprint. These advancements proprietary research, partnerships, joint out recorded history, especially in the past enable us to be a leader in exploration ventures and venture capital investments. 150 years. The demand will continue to success. Downstream, we are building on our This approach allows Chevron access to rise: By 2035, world energy consumption is legacy of pioneering technologies that can the most innovative and cost-effective ideas, expected to increase by more than 40 per- process the most challenging feedstocks, what we call “human energy.” It ensures that cent as the world’s current population of allowing us to expand our production of high- we can deploy the right technology in the 7 billion surpasses 8.5 billion. value premium base oils and other products right place at the right time—to differentiate People around the world have come to for global markets. our performance and economically deliver expect ready access to this energy as they As highlighted in our cover story, we are the energy that fuels human progress. aspire to a better quality of life. It is an transforming our operations through digital expectation made possible by the enormous connectivity—making strategic investments Sincerely, scale of the world’s energy infrastructure, in digital infrastructure, real-time commu- though largely invisible to end users. Meeting nication, collaboration workflows and other this demand in the future will require the technologies that are revolutionizing our abil- capabilities and technology to find, develop, ity to operate remote fields safely and reliably. produce, process, transport and deliver We also are investing in new technology path- John W. McDonald energy from many sources, affordably and ways focused on greater energy efficiency, Vice President and Chief Technology Officer at scale. And as demonstrated in this issue improved recovery and renewable energy. Chevron Corporation of Next*, Chevron is working on innovative As a global energy company, we know technologies across the energy spectrum to that new ideas can come from anywhere, do just that. from any industry, at any time. That’s why PHOTO: JIM KARAGEORGE JIM PHOTO: Next* | 1 Chevron’s partnership with Los Alamos National Laboratory enables Chevron to uniquely apply advanced technologies to oil field applications. When visiting Chevron’s Inficomm partner, Los Alamos National Laboratory, Chevron Chairman and CEO John Watson explored this 3-D holograph and other displays. MANNY GONZALEZ PHOTO: 2 | Next* Here and Now Cross-Industry Collaboration Fosters Innovation Through a partnership with a leading research facility, Chevron develops and applies technologies in creative ways commitment to partnership is a central To develop it for downhole use, Chevron Both Inficomm and TruDepth technologies Avalue and a major source of strength turned to its Area 52™ research facility. are part of a pilot program in Chevron’s for Chevron. Innovative partnerships, “Comprised primarily of recently retired San Joaquin Valley operations in California. based on cooperation and trust, give the Los Alamos scientists, Area 52 provides us “Early indications are that the company access to complementary R&D with a prototyping facility that can rapidly Inficomm system will be an important capabilities while providing resources that transfer Los Alamos technologies into oil technology for production and reservoir can help the partner bring breakthrough field reality,” said Scot Ellis, Chevron’s management in ultra-hot wells composed ideas to fruition. Together, they find ways Area 52 and Inficomm project manager. of diatomite minerals,” said Braidon to identify, develop and apply appropriate Inficomm technology is now being Waggoner, a Chevron project lead in the technologies—both new and repurposed— marketed by Production Sciences, Inc., San Joaquin Valley. “At the same time, to unlock the additional energy resources a spin-off company launched via an exclu- TruDepth technology, with its straight- society needs. sive technology license by Chevron. Its forward approach, is enabling us to better One such partnership, Chevron’s signature product reliably transmits real- manage Chevron assets by providing cost- collaboration with Los Alamos National time pressure and temperature data from effective monitoring and evaluation not Laboratory, dates back to 2004 and depths as great as 25,000 feet (7,620 m). previously available to our industry.” enables Chevron to take advanced technol- A companion product, TruDepth™ (previ- ogies, such as those developed for the ously known as Infilevel™) technology, Looking Ahead U.S. military, and apply them in unique ways identifies oil and water levels in a pump-