After two and a half years of cutbacks, reduced capital spending, and project delays, a harsh reality is setting in for the oil and gas industry: “lower-for-longer” oil prices may be the new norm and companies are going to have to change the way that they do business in order to remain competitive.
This comes as the world sits on the cusp of the Fourth Industrial Revolution – a time when the proliferation of digital tools and technologies is enabling businesses across every industry to work smarter, make better decisions, and improve project outcomes. From improving patient diagnoses in healthcare, to guaranteeing on-time arrivals in rail networks, to increasing production in automotive factories, the capabilities offered by Industry 4.0 are real and they are fundamentally transforming the way businesses operate.
Despite this paradigm shift, the oil and gas industry has been slow to realize the full potential of digitalization. While an increasing number of oil and gas companies today are using digital tools to harness the power of Big Data, most are doing so as part of a bottom-up approach, where technologies are unsystematically implemented (often at the plant level) and have little if any impact on operating or business models.
While the current downturn in the oil and gas industry is certainly a partial contributor to the industry’s slow growth in adopting digitalization due to constrained capital budgets, the overall conservative nature of the industry and its risk-averse culture is also a contributing factor. The time for change, however, is now as the industry has reached a tipping point. The need to improve productivity and achieve further cost reductions in the sustained low-price environment is creating significant opportunities for companies who embrace digitalization.
It is no longer a question of if the industry will undergo full-scale digital transformation, it is a matter of when – and early adopters are those poised to benefit most.
A digital roadmap for offshore oil and gas
In the offshore oil and gas sector there has been much talk surrounding the opportunities presented by digitalization. However, the industry has largely failed to deliver a comprehensive solution that enables operators to address the challenges they face, such as high capital and operating costs, and long cycle times.
Recognizing this need and drawing off its extensive software suite and deep expertise in data analytics, Siemens developed Topsides 4.0 – the industry’s first comprehensive digital solution for offshore oil and gas production. Siemens has a long-standing track record of helping customers in oil and gas and other industries harness data to enhance efficiency and reduce costs. With Topsides 4.0, that experience is being applied in the offshore environment.
Topsides 4.0 is a digital lifecycle approach that begins during the conceptual and design phase of a project with the development of a comprehensive digital roadmap. It is during this time that Siemens evaluates how the operator is using data, where the gaps are, and how best to fill them. With that knowledge, Siemens then collaborates with the operator and tailors a solution to their specific needs.
Overall, Topsides 4.0 is designed to reduce capital and operating expenses, shorten project development cycles, minimize interfacing risk, and decrease offshore labor requirements. This is achieved by enabling advanced capabilities, such as enhanced design, testing, manufacturing, and lifecycle maintenance through advanced virtualization (i.e., creation of digital twins); remote monitoring and pre-emptive maintenance of mission-critical equipment; and cybersecurity.
The digital twin is a software model that not only mirrors the status and working condition of the offshore asset in near real-time, but also behaves like its real-world counterpart. In doing so, it gives operators the ability to perform design and testing in a risk-free environment and serves as an invaluable tool for lifecycle decision-making support and asset optimization.
With Topsides 4.0, an intelligent digital twin is constructed in parallel to the physical topsides during the design and build phases of the project. It consists of two main components: a process twin and a plant twin.
The process twin is a digital replica of the process and automation system that enables testing of the process and control infrastructure, safety logic, and operating procedures before start-up. The plant twin is a smart 3D viewer for the entire topsides that provides access to equipment, maintenance, and real-time operations data for construction, commissioning, and maintenance planning.
These tools provide operators with the capability to run virtual what-if scenarios on the asset and better understand the impact of different operating conditions on the process, equipment, and maintenance. The digital twin’s intelligence derives from the capability to interpret raw data through a variety of analytics, some of which are automated and others that are offered as an OEM service. The automated analytics are independent of equipment vendor and based on statistical analysis of realtime data from the instrumentation and automation system. For critical equipment like compressors and turbines, Siemens supplements this layer of monitoring with OEMconnected services for predictive diagnostics, spare parts management, and outage planning
Real-world benefits
Shorter Project Development Cycles – Using configurators and engineering templates, Topsides 4.0 allows operators to develop an industry-compliant solution from user requirements, without the need for a full functional specification.
Reduced CAPEX – Topsides 4.0 helps reduce CAPEX by enabling operators to evaluate more design scenarios during the conceptual phase and identify a configuration that maximizes return on investment throughout the life of the field. Furthermore, automation designs that support remote control and monitoring means smaller offshore living quarters, while virtual commissioning reduces yard and offshore commissioning costs. This can generate CAPEX savings to the order of $10 – $15 million.
Improved Safety and Performance – Topsides 4.0 enables companies to train operations and maintenance (O&M) personnel well before the asset is on location. This is made possible through a virtual “walk inside” of the topsides facility. Clients can locate valves, panels, and process equipment like coolers, separators, and filters in the digital twin and familiarize themselves with the switchgear and other electrical equipment. The opportunity to run various simulations and conduct “what if” scenarios ensures that O&M personnel will react in the safest and most productive way when they are working onsite.
Minimized Interfacing Risk – Siemens takes responsibility for the integrated control and safety system (ICSS) of the entire asset and natively integrates third party package controls into its ICSS system. This minimizes interfacing risk, shortens testing and commissioning time, and reduces spares holding and maintenance cost. Integration also provides the capability to operate and maintain the ICSS for the entire topsides, which is a key enabler of remote operations.
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