Consortium Project Update - Store & Retrieve Data Anywhere · The digital energy company ......

Project UpdateTruck Ticketing

Cari Dumais

Oil &Gas BlockchainConsortium

Agenda

Salt Water Disposal Pilot

Oil & Gas Blockchain

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3rd Annual Oil & Gas Blockchain ConferenceSep 18, 2019

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The digital energy company

Always safe

High value

Low carbon

Make data available anytime, anywhere

Predicting and preventing safety

and security incidents

The robots will make our work easierThe robots will make our work easier

Developing digital competence to become

industry leader

Digitalisation is as much about the mindset and the culture, as it is about tools and technology.

SWD “Voice of the Customer”: Identifying pain pointsOil & Gas Blockchain

Consortium

Fragmented and non-standardized processes across multiple parties lead to high levels of errors and disputes.

Due to high volume, reconciliation efforts are practically non existent today.

Pain point Who feels it the most

Paper field tickets to record water volumes

Operator, Trucking company, Trucker, SWD facility

Long Order to Cash process (46-120 days)

Trucking company, Trucker, Operator, SWD facility

Scheduling / dispatching Trucking company, Trucker, SWD facility

Driver / truck utilization Trucking company, Trucker

Limited compliance to EPA, DOT and other regulations

Operator, Trucking company, Trucker, SWD facility

Tough audits Operator, Trucking company, Trucker, SWD facility

If we all share pains, can we all share the gains?

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In overall US onshore operations

About 20 billion barrels of water produced each year.

90 : 10 Split between salt water disposal by pipeline and trucking.

This produces over 100M SWD trucking field tickets each year.

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Equinor SWD pilot main milestones and activities

2018 2019 2020

Dec Jan Feb Mar Apr MayActions

Pilot kick-off

Stakeholder mgmt.

Field flow sensor installation

POC

Data source integration

Development

Field locations identified

Jun Jul Aug JanDecSep Oct Nov

Gemba field visit

DG awarded pilot scope (by OOC)

Pilot test/deploy

Funding received ($$$)

Today

Milestones

Key activities

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Digital Transformation

It IS NOT about just digitizing the current process,

or adding new technologies on top of legacy systems/processes.

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Digital Transformation

It IS about transforming how we work,

across processes, people, and technologies.

So… we have to change some things, or even stop some things.

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Transforming the SWD Payment Cycle

Trucking Well Pad SWD Operator

ROLE INVOLVED

XShared ecosystem

1 1-15 30 1-15 1-3 1-30 1-7 30-90 1 1

Start

Scenario Days StepsManual Intervention

SWD Pilot 6 - 12 7 3

E-Commerce 37 - 154 10 6

Manual 68 - 193 14 10

End

…Negotiations

ContractsCost Centers

PlanningPurchase Orders

Call-offsDispatching

…

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Transforming the SWD Payment Cycle

1 1-15 30 1-15 1-3 1-30 1-7 30-90 1 1

Trucking Well Pad SWD Operator

Start

Scenario Days StepsManual Intervention

SWD Pilot 6 - 12 7 3

E-Commerce 37 - 154 10 6

Manual 68 - 193 14 10

ROLE INVOLVED

End

1-30 1-15 1 1-15SCM Portal / OpenInvoice

Shared ecosystem

ROLE INVOLVED

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Transforming the SWD Payment Cycle

Trucking Well Pad SWDShared

ecosystemOperator

ROLE INVOLVED

1 1-7 30-90 1 1

Start

Scenario Days StepsManual Intervention

SWD Pilot 6 – 12 7 3

E-Commerce 37 – 154 10 6

Manual 68 – 193 14 10

End

…Negotiations

ContractsCost Centers

PlanningPurchase Orders

Call-offsDispatching

…

1-30 1-15 1 1-15SCM Portal / OpenInvoice

1 1 11-7 1SWD Solution

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Ambition

1

Start End

1 1 11-7 1SWD Solution

Equinor expects to realize 25% total

process cost savings,

and suppliers can expect to (finally) be paid on time.*

* Based on full scale implementation.

…Negotiations

ContractsCost Centers

PlanningPurchase Orders

Call-offsDispatching

…

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Technical Foundation

Networks / Communications

Storage

Strong cryptography

Digital identity

Digital signature

Integrity

Sensor installation(digitalization) in the field.

SensorSensor

SensorSensor

SensorSensor

APIs

APIs

UI UI UI UI

The blockchain platformhandles the security aspects

necessary to create trust.

Smart contractsdigitally facilitate, verify, and enforce the executable terms

of a contract.

User Interfaceapplications allow multi-parties

to collaborate and easily transact with each other.

• Timing is key.

• Funds availability.

• SWD Bakken contract renewal.

• Involvement of OOC.

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Lessons

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Strong stakeholder management is a must.

O&M, Facilities, Legal, Supply Chain, IT, Finance, etc.

OOC members + Legal, Supply Chain, IT committee involvement, etc.

Lessons

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Lessons

Ways of working...

Agile versus Waterfall versus Hybrid.

Emails versus Teams versus SharePoints versus Slack, oh my!

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Lessons

Don’t treat systems, data, and integration

as separate “things”.

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Salt Water Disposal PilotCari Dumais, Techmixologist

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Questions

Q & A