An Assessment of the Various Types of Real- Time Data Monitoring Systems Available for Offshore Oil and Gas Operations A Service Disabled Veteran Owned Small Business Date: February 10, 2014 E12PC00063 © 838 Inc 2014 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation 1 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation Table of Contents CHAPTER 1 – (Task 1) Assessment of the various types of real-time data monitoring systems available for offshore oil and gas operations ........................... 5 Chapter Summary ........................................................................................................... 6 Introduction ..................................................................................................................... 8 Methodology ................................................................................................................... 9 Concepts of Operations ................................................................................................ 10 Available RTD Technology ............................................................................................ 22 Operators Using Real-time Data ................................................................................... 37 CHAPTER 2 – (Task 3) Discuss options for training programs or contracted services which would be needed to incorporate the identified systems into BSEE’s process. ..... 39 Chapter Summary ......................................................................................................... 40 System Safety at the Regulator Level ........................................................................... 41 Major Functions of Safety Oversight ............................................................................. 43 Safety Oversight System Design ................................................................................... 46 Training Program Development .................................................................................... 48 Conclusion .................................................................................................................... 69 CHAPTER 3 – (Task 6): Identify how real-time monitoring could be incorporated into the BSEE regulatory regime in either a prescriptive or performance based manner.................................. 70 Chapter Summary ......................................................................................................... 71 Introduction ................................................................................................................... 73 Prescriptive/Performance-Based Regulation for the Oil and Gas Industry. .................... 75 Regulatory Involvement ................................................................................................ 77 BSEE Mandates and Regulations ................................................................................. 92 RTM Implementation ..................................................................................................... 95 Conclusion .................................................................................................................. 102 CHAPTER 4 – (Task 4) Identify all necessary information which needs to be collected, calculated, or monitored during operations to improve the current level of safety. Identify any existing or proposed modeling tools that can be used in connection with real-time data to prevent incidents .............................................. 104 Chapter Summary ....................................................................................................... 105 Introduction ................................................................................................................. 107 Information to Improve Levels of Safety ...................................................................... 109 Modeling Tools to Prevent Incidents ........................................................................... 125 Conclusion .................................................................................................................. 130 © 838 Inc 2014 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation 2 CHAPTER 5 - (Task 5) Technologies and Data Helpful in Measuring Field Performance of Critical Equipment to Predict Potential Failures and Replace Current Methods ....................................................................................................... 132 Chapter Summary ....................................................................................................... 133 Introduction ................................................................................................................. 134 Technology and Data for Measuring Performance and Predicting Failure ................... 135 Areas Where Technology Can Replace Current Inspection Techniques ..................... 152 Conclusion .................................................................................................................. 157 CHAPTER 6 - (Task 7) Assessment of Automation Technologies Impacts on Human and Environmental Safety, Efficiency Improvements, and Cost .............. 158 Chapter Summary ....................................................................................................... 159 Introduction ................................................................................................................. 160 Definition of Automation .............................................................................................. 162 Assessment of Current Automation Technologies in the Oil and Gas Industry ............ 172 Impacts on Human Safety ........................................................................................... 178 Impacts on Environmental Safety ................................................................................ 181 Improvements in Efficiency & Cost .............................................................................. 182 CHAPTER 7 – (Task 2) Perform Cost Benefit Analysis of the systems identified that details potential costs to industry, potential increases in safety performance, government resources needed for implementation, and necessary training for all parties involved. ........................................................................................................ 184 Chapter Summary ....................................................................................................... 185 Introduction ................................................................................................................. 187 Scope of Cost Benefit Analysis (CBA) ......................................................................... 190 Real Time Operations Center (RTOC)/ Real Time Monitoring Center (RTMC) ............ 194 Drilling Automation ...................................................................................................... 204 RTMC Cost to the Industry and Returns...................................................................... 212 Recommendations ...................................................................................................... 215 Conclusion .................................................................................................................. 217 About the Authors .................................................................................................... 218 References ................................................................................................................ 219 © 838 Inc 2014 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation 3 Intentionally Left Blank © 838 Inc 2014 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation 4 CHAPTER 1 – (Task 1) Assessment of the various types of real-time data monitoring systems available for offshore oil and gas operations © 838 Inc 2014 The view, opinions, and/or findings contained in this report are those of the author(s) and should not be construed as an official Government position, policy or decision, unless so designated by other documentation 5 Chapter Summary The Bureau of Safety and Environmental continuous data feeds from the company’s Enforcement (BSEE) commissioned this active well projects. Monitoring stations study to provide a broad industry overview within the RTMC are staffed with highly of the use of real-time data (RTD). Of experienced drilling experts who focus on special interest is the use of real-time mitigating drilling hazards and preventing monitoring systems and their impact on the non-productive time (NPT) while providing overall safety of operations. The study is an added team member and safety broken down into seven tasks, each with observer to the