Application of Real-Time Monitoring of Offshore Oil and Gas Operations: Workshop Report (2015)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

CONFERENCE PROCEEDINGS ON THE WEB 17 Application of Real-Time Monitoring of Offshore Oil and Gas Operations Workshop Report Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations April 20–21, 2015 Houston, Texas Organized by Transportation Research Board Sponsored by Bureau of Safety and Environmental Enforcement TRANSPORTATION RESEARCH BOARD Washington, D.C. 2015 www.TRB.org

Conference Proceedings on the Web 17 Transportation Research Board publications are available by ordering individual publications directly from the TRB Business Office, through the Internet at www.TRB.org or national-academies.org/trb, or by annual subscription through organizational or individual affiliation with TRB. Affiliates and library subscribers are eligible for substantial discounts. For further information, contact the Transportation Research Board Business Office, 500 Fifth Street, NW, Washington, DC 20001 (telephone 202-334-3213; fax 202-334-2519; or e-mail TRBsales@nas.edu). NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the National Academy of Medicine. The members of the committee responsible for the project were chosen for their special competencies and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to the procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the National Academy of Medicine. This project was sponsored by the Bureau of Safety and Environmental Enforcement, U.S. Department of the Interior. Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations Richard A. Sears, Stanford University, Stanford, California, Chair James S. Crompton, Reflections Data Consulting LLC, Colorado Springs, Colorado James S. Dyer, University of Texas at Austin Paul S. Fischbeck, Carnegie Mellon University, Pittsburgh, Pennsylvania James H. Garrett, Jr., Carnegie Mellon University, Pittsburgh, Pennsylvania N. Wayne Hale, Jr., Special Aerospace Services, LLP, Friendswood, Texas Stig O. Johnsen, SINTEF, Trondheim, Norway Morrison R. Plaisance, Independent Consultant, Sugar Land, Texas Manuel Terranova, Peaxy Inc., San Jose, California Peter K. Velez, Peter Velez Engineering LLC, Houston, Texas Transportation Research Board Staff Mark S. Hutchins, Study Director Publications Staff Mary Cadette, Editor Janet M. McNaughton, Production Editor Jennifer J. Weeks, Editorial Services Specialist Jennifer Correro, Proofreader Paul deBruijn, Typesetting and Design Cover photo ©2015 BP America, Inc. Used with permission. All rights reserved.

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, nongovernmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Ralph J. Cicerone is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to increase the benefits that transportation contributes to society by providing leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

Preface The Bureau of Safety and Environmental Enforcement of the U.S. Department of the Interior asked the Transportation Research Board’s Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations to conduct a workshop on the use of real-time monitoring systems by industry and government. In discussions about the statement of task at the committee’s first meeting in December 2014, the sponsor confirmed that the workshop agenda and summary report, and the committee’s final report, would focus on the Gulf of Mexico region and would be designed in such a way as to address the five issues listed in the statement of task (Box P-1). They would also be informed by the two reports mentioned in the statement of task and described in more detail in Chapter 1. (The workshop’s full agenda can be found in Appendix A.) In preparation for the workshop, the committee provided each of the panelists a copy of the two reports and a standard set of questions to address (Appendix B). The presenters were not limited to these questions, but the committee wanted to ensure that, at a minimum, specific issues relevant to the statement of task were addressed. The purpose of the workshop was to explore the topic of real-time monitoring (RTM) of offshore oil and gas operations. The workshop report summarizes presentations made by invited panelists and other remarks by participants in the committee’s workshop in Houston, Texas, on April 20–21, 2015. This report—the first of two that will be issued by the committee—summarizes the prepared remarks of workshop presenters, comments made by the workshop audience, and the ensuing discussions. A workshop report is not intended to contain any consensus findings or recommendations, in accordance with National Research Council workshop guidelines, and does not necessarily reflect any consensus views of the committee, the workshop participants as a whole, or the National Academies of Sciences, Engineering, and Medicine. Although the committee’s statement of task allows for findings in this specific case, the committee is still gathering information and deliberating. The committee’s second and final report, scheduled for release in 2016, will contain findings and recommendations. Chapter 1 provides relevant background information for the workshop on the application of RTM in offshore oil and gas operations. Chapter 2 summarizes the workshop’s presentations and discussions of RTM in offshore oil and gas operations. Appendix A details the workshop agenda and Appendix B provides the standardized questions that were distributed to the panel participants prior to the workshop. Appendix C identifies the workshop participants and registrants. v

REAL-TIME MONITORING OF OFFSHORE OIL AND GAS OPERATIONS This report was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise. The purpose of this independent review is to provide candid and critical comments that will assist the institution to make its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript will remain confidential to protect the integrity of the deliberative process. vi Box P-1 STATEMENT OF TASK An ad hoc committee will conduct a study to advise the Bureau of Safety and Environmental Enforcement (BSEE), U.S. Department of the Interior, on the use of real-time monitoring systems (RTM) by industry and government to reduce the safety and environmental risks of offshore oil and gas operations. As part of its efforts, the committee will organize and hold a public workshop that is informed by a recently released BSEE external technical report on RTM for oil and gas operations and the preliminary findings from an internal BSEE RTM workgroup. The committee will develop the workshop agenda, select and invite speakers and discussants, and moderate the discussions. Subsequently, the committee will (1) issue an interim report summarizing the presentations and discussion at the workshop and any findings the committee draws from the event and from the BSEE technical report and (2) hold additional meetings to develop and provide a final report with findings and recommendations on the use of RTM by the offshore oil and gas industry and BSEE that address the five issues below. Specifically, the final report shall address: 1. The critical operations and specific parameters that should be monitored from drilling and producing facilities to manage and mitigate environmental and safety risks (e.g., to reduce the risk of well kicks, blowouts, and other sources of casualties). 2. The role that automation and the use of predictive software tools should play in RTM. 3. The role that condition-based monitoring (CBM) should play in RTM and describe how the operating equipment using CBM could be tailored to and/or used for RTM. 4. Whether RTM should be incorporated into BSEE’s regulatory scheme in either a prescriptive or performance-based manner. 5. How BSEE should leverage RTM to enhance its safety enforcement program.

The committee thanks the following individuals for their review of this report: Vice Admiral James C. Card (USCG, retired), Independent Consultant, The Woodlands, Texas; Elmer (Bud) P. Danenberger, Independent Consultant, Reston, Virginia; Delores M. Etter (NAE), Southern Methodist University, Dallas, Texas; Marcia K. McNutt (NAS), American Association for the Advancement of Science, Washington, D.C.; R. Keith Michel (NAE), Webb Institute, Glen Cove, New York; and Donald L. Paul, University of Southern California, Los Angeles, California. Although the reviewers listed here provided many constructive comments and suggestions, they were not asked to endorse the workshop summary, nor did they see the final draft of the report before its release. The review of this workshop report was overseen Ali Mosleh (NAE), University of California, Los Angeles, and Henry G. Schwartz, Jr. (NAE), Independent Consultant. Appointed by the National Research Council, they were responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution. The committee gratefully acknowledges the work and support of Mark S. Hutchins, who served as study director and assisted the committee in the preparation of its report under the overall supervision of Stephen R. Godwin, Director, Studies and Special Programs. Karen Febey, Senior Report Review Officer, managed the report review process. Timothy Devlin and Claudia Sauls assisted with meeting arrangements and communications with committee members. Richard A. Sears, Chair Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations PREFACE vii

List of Acronyms and Abbreviations 24/7 24 hours a day, 7 days a week API American Petroleum Institute BOEMRE Bureau of Ocean Energy Management, Regulation, and Enforcement BOP blowout preventer BSEE Bureau of Safety and Environmental Enforcement CBM condition-based monitoring HSE health, safety, and environmental IADC International Association of Drilling Contractors KPI key performance indicator MMS Minerals Management Service NAE National Academy of Engineering NRC National Research Council OCS outer continental shelf OEM original equipment manufacturer RTD real-time data RTM real-time monitoring SEMS safety and environmental management systems TRB Transportation Research Board ix

Contents 1 INTRODUCTION..................................................................................................1 Background......................................................................................................1 RTM and Offshore Oil and Gas Operations..................................................3 838, Inc., Assessment of RTM Systems Report..............................................4 BSEE RTM Summary Report.......................................................................10 Notice of Proposed Rulemaking....................................................................15 Organization of Workshop Report...............................................................18 2 SUMMARY OF WORKSHOP DISCUSSIONS................................................21 Overall Importance of Real-Time Monitoring for BSEE...........................22 Susan Dwarnick Drilling Operations.........................................................................................22 Darryl Fett, Barry Gaston, Joseph Leimkuhler, Lisa Grant, Steven Kendrick, and Dale Bradford Third-Party RTM Providers.........................................................................30 Anil Wadhwa, Kevin Goy, Andreas Sadlier, Chuck Salminen, Lee Geiser, and Eric van Oort Production Operations..................................................................................34 David Stevens, Chris Hall, Steve Bodden, Amro Hamza, and Tom Moroney Drilling Contractors and Equipment Manufacturers................................37 Harris Reynolds, Jean-Paul Buisine, Tony Hogg, Brian Wright, and Daniel Marquez Trade Associations.........................................................................................39 Holly Hopkins, Evan Zimmerman, Alan Spackman, and Anton du Preez Additional Observations................................................................................40 APPENDIXES A Workshop Agenda..........................................................................................42 B Questions for Discussion................................................................................45 C Panel Participants and General Attendees...................................................48