Increasing Asset Reliability with IoT (and making /saving money doing it)

Ashe Menon

Vice President of Global Manufacturing

NOV

#IoTMan

Who are we ?

• Leader in the Design, Manufacture, Sale and Service of Oil Field Equipment

• We Power the Industry that Powers the World

Established: 1841

NYSE: NOV

Employees: 60,000

Revenue (2014): $24B

2016 Revenue: $7.2B

#IoTMan

Not just the Oil Field…

• We solve really big problems

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#IoTMan

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GUADALUPE PEAK TALLEST MOUNTAIN IN TEXAS - 8751 FT

Maersk Venturer 11,156 FT

Deepest Well – 13,200M 43,000 FT 8.2Miles

X 1.5

The challenges we face

• Extremely Remote Locations

• Extremely Rugged (Rough Neck Proof)

• Low Connectivity

• Extremely Expensive when things break

• Antonov AN 124 rented to fly equipment

• Technology Averse (unless it turns to the Right !)

• Tried and Failed a few times… No Trust it will work…

So what does that mean ?

• Condition Monitoring

• Condition Based Maintenance

• Predictive Maintenance

• No way.. Not in the drilling industry !!!!

IoT?

Internet of Really Old Things

Everyone else is doing it so why can’t we ?

Automotive

100 + prototypes, 30 cars at each pre-production

Airlines

747 Example – Redundancy of Systems. Collaboration of partners

Production Been doing it since the 80s, no moving assets, but similar asset classes

Aerospace (NASA) Only one chance, it has to work – Testing simulation and software

– Data Analysis, Correlation Analysis

IADC/SPE 128865 - How do we do this ?

Specifications

• Continuous Torque 105,000 ft.-lbs.

at 130 rpm

• Horsepower 2 * 1340 HP

• Max Speed 250 rpm

• Break-Out Torque 150,000 ft.-lbs.

• Static Load 1,250 Ton Hoisting

• Drilling Load 1,226 Ton Rotating

One company … unlimited solutions Torque Speed Bearing Life

Criticality Top Drives

TDS-5 41778 Planned Service Pipe Handling; Top Drives

GEARBOX OVERHAUL & ELECTRICAL REPAIRS OF VARCO TDS-

5H W/PH-85 Pending A 7684 2009-07-01 01:26 AM 1

PS2-650 41780 Planned Service Mud Pumps; Drawworks; Top Drives Change out 400 CPU on MP/SCR and DW/TP PLC`s Closed

IN-15900-SUP

R4115 2010-06-29 03:41 AM 1

HPS-03-1000 41782 Failure gearbox

--Top Drive HPS 1000 2E AC KT - Top Drive HPS 1000

2E AC KT - T4111

Deep Driller 2 are experiencing knocking noises in the gearbox when

operating in low gear (glovia order WO/ NOV-41782WS) Pending 2010-06-22 02:34 AM 1

TDS-11 41797 Support (I&C, survey, etc.) Top Drives

Assist with repairing TDS-11SA electrical short and possible fire on

the TDS11SA top drive. Closed 2009-07-21 07:36 AM 1

HPS-03-1000 41800 Failure Motor

--Top Drive HPS 1000 2E AC KT - Top Drive HPS 1000

2E AC KT - T6309

West Polaris request new AC motor for the top drive, they don't get in

touch with their sales contact. Closed 2009-07-07 12:41 AM 1

TDS-11 41801 Support (I&C, survey, etc.) Top Drives Customer request TDS survey for install Closed CS41801 2009-07-30 09:46 AM 1

TDS-11 41802 Support (I&C, survey, etc.) Top Drives Customer request TDS survey Closed CS41802 2009-07-30 08:45 AM 1

TDS-4S 41804 Failure Control Control Systems; Top Drives Drive house CPU is going into SF ( System fault ) Closed 2009-08-18 04:20 PM 1

TDS-3 41810 Support (I&C, survey, etc.) Top Drives

Disassembly Inspection and Repair of Hydraulic Lift Actuator Cylinder

& Hydraulic Torque Cylinder for TDS Closed

DSW/5800, WO#

21374 2009-10-06 01:28 AM 1

TDS-8S 41812 Support (I&C, survey, etc.) Top Drives INSPECTION AND OVERHAUL OF VARCO TDS8 SA TOP DRIVE Closed

DSW/5801, WO#

21376 2010-03-16 02:48 AM 1

PS2-500 41813 Failure IBOP Top Drives Trouble shooting of IBOP indication Lamp Closed 453/DSO/7270 2009-07-02 01:08 AM 1

IDS-4 41820 Failure Hydraulic Mud Pumps; Top Drives Issues with top drive when 3 mud pumps on line. Closed 2009-07-03 03:44 PM 1

TDS-9 41823 Support (I&C, survey, etc.) Top Drives; Iron Roughnecks

To prepare the accidental report of TDS, AMC of TDS, also to

perceive ST-80 operation and maintenance. Open 458/DSO/7270 2009-07-02 06:49 AM 1

TDS-11 41824 Support (I&C, survey, etc.) Top Drives Start-up and commission top drive Closed 2009-08-24 01:35 PM 1

TDS-6 41831 Failure Control Top Drives Top Drive RPMs not reading correctly Closed 2009-07-07 05:23 AM 1

TDS-11 41845 Support (I&C, survey, etc.) Top Drives

Complete TDS-11SA Top Drive commissioning in the Patterson

Victoria Yard. Closed 2009-07-20 09:20 AM 1

TDS-11 41848 Failure Control Top Drives

Change out Off-Drillers-Side Motor on the TDS-11 shipped in from

NOMAC 3. Closed 2010-05-21 02:19 PM 1

TDS-6 41866 Support (I&C, survey, etc.) Top Drives Removal of TDS-6 for repair and storage. Closed 2010-01-06 09:50 AM 1

TDS-11 41870 Support (I&C, survey, etc.) Top Drives Commissioning TDS-11. Closed 2009-07-09 07:14 AM 1

TDS-10 41880 Failure Hydraulic --Top Drive - TDS-10 - TDS10SM09J017 hydraulic pump cracked love coupler needs replacing Closed 2009-11-09 09:18 AM 1

PS2-500 41881 Support (I&C, survey, etc.) Top Drives XXXVth AMC Schedule Closed 460/DSO/7270 2009-11-18 10:51 PM 1

TDS-11 41885 Failure Control --Top Drive - TDS-11SA - TDS11SH16R654 Top drive will not rotate Closed VS 2009-07-04 10:05 PM 1

TDS-11 41899 Support (I&C, survey, etc.) Top Drives Parts Only Closed 2009-07-20 09:21 AM 1

HPS-03-1000 41912 Support (I&C, survey, etc.)

Other; Mud Pumps; Control Systems; Drawworks; Top

Drives; --Statoil Stafjord B t6291-D1100-G0001

Hydratong MPT - -

Seawell requires training on NON equipment - Stavanger equipment

and Kristiansand equipment Open 2009-07-06 06:16 AM 1

TDS-8S 41914 Support (I&C, survey, etc.)

Other; Control Systems; Cranes; Pipe Handling;

Drawworks; Top Drives; Iron Roughnecks; Hydraulic

Power Units; Overhead/Traveling Equipment; Rotary

Tables

Transocean requires training on NON equipment - Stavanger

equipment and Kristiansand equipment Open 2009-09-02 12:47 AM 1

PS2-750 41919 Support (I&C, survey, etc.) Top Drives Installation and commissioning of PS-500 A top drive in Saudi Arabia Pending KSA933 2009-07-06 07:13 AM 1

TDS-11 41923 Failure Hydraulic Top Drives Problem on hydraulic pump of TDS Open JAC913 2009-07-06 07:56 AM 1

TDS-11 41925 Support (I&C, survey, etc.) Top Drives The TDS-11 has no cycling time. Closed 2009-09-25 07:03 AM 1

TDS-4S 41927 Support (I&C, survey, etc.) Top Drives PH-85 not working properly Closed DS-21042 2009-07-06 08:29 AM 1

TDS-11 41929 Support (I&C, survey, etc.) Top Drives Commissioning TDS-11. Closed 2009-08-27 08:09 AM 1

HPS-03-1000 41930 Failure Control Top Drives

Ability to set rpm then have a "Jog" button / function to turn in stages

the TD at a predetermined speed clockwise / counter clockwise when

button momentarily depressed Closed 2009-08-26 03:14 AM 1

46% 1%

7%

46%

Failure

Dropped Objects

Planned Service

Support

29%

5%

7%

4% 9%

7%

9%

5% 1%

19%

3% 1% 1% Control

Dolly / DerrickInterfaceElectrical

Gearbox

Hydraulic

IBOP

Motor

Motor Housing Assy

Operator Error

Data Analysis

26%

9%

5%

7%

1%

6% 4%

10%

1%

23%

6%

1% 1%

Control

Dolly / DerrickInterfaceElectrical

Gearbox

Hydraulic

IBOP

Motor

Motor Housing Assy

Operator Error

Pipe Handler

• Started with 10 years worth of data

• Finally Ended up with 3 years worth of good data

• “Other” – largest cause of downtime

Vibration Sensors, Debris Monitors, Shock Pulse…

IoT - A day in the life of a …. Washer Dryer … Boiler

• Gets to location

• Stays there

• +30 years

A day in the life of …. Top Drive

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And for everything else there is - Machine Learning

Advanced Rig Monitoring – Virtual Employee

eHawk introduces Machine Learning to learn from historical data an equipment’s “Normal” vs. “Abnormal” operations for multiple states.

Dynamically create profiles to monitor the equipment and listen

for abnormal signatures. Continuously adapts over time.

The Numbers Say it All

Without solution

$173,000 Lost Day Rate

With solution (2012)

$33,000 Lost Day Rate

72% Reduction in

RigDown

So…..

We sell a great product!! Why do we not use it ourselves?

Financial Model

#IoTMan

Key Points to Take Home

Mainstream Conference 2014 | 22

• Don’t buzzword it (please) - Uptime/Reliability

• Plants/Rigs want to be cool

• Get Buy In! (Fun)

• Technology exists

• Show them the money !!!

• We have no more excuses

#IoTMan