• Thursday, December 12, 2024
businessday logo

BusinessDay

How technology and innovation in oil and gas industry have significantly contributed to cost control– Erumwunse

How technology and innovation in oil and gas industry have significantly contributed to cost control– Erumwunse

Osasuyi Courage Erumwunse

Osasuyi Courage Erumwunse is a seasoned Completions Technical Advisor with proven ability to successfully lead cross-functional teams and deliver complex projects on time and within budget. In this interview with ZEBULON AGOMUO, he spoke on the future of drilling and completions process, the role Artificial Intelligence and machine learning plays; how technology and innovation are impacting cost control, contract management, efficient completions operations, project management, and many more. Excerpts:

We are witnessing fluctuations in gas prices globally, what impact does the rising or increase in gas prices have on starting and completions of wells, whether deep waters, budget development, maintenance as well as the management of client relations in your industry?

Rising gas prices can make deepwater well completions more difficult and expensive, but they may not immediately cause a reduction in drilling. Offshore and deepwater operations are significantly more expensive than onshore operations. Ensuring the economic viability of projects in challenging environments is a key concern. While higher prices might suggest increased production, producers may not rush into drilling new wells because of the high start-up costs and complexity of the task. Deepwater development projects are long-duration, high-risk, and expensive, and are less sensitive to short-term oil price fluctuations than onshore development. Other factors that can impact well completions include Labor concerns which can interfere with project completion and field operations; Transporting equipment, personnel, and supplies is time-consuming and costly. Ensuring timely delivery and maintenance of equipment is critical and challenging. Uncertainty in material supply, insufficient spare part inventories and adhering to strict regulatory standards for safety, environmental protection, and operational procedures. Obtaining necessary permits and licences can be a complex and lengthy process. This has seen improvements in Nigeria due to digitisation.

How has technology and innovation contributed in cost control, contract management and in efficient completions, project management and coordination process? Share your experience in relation to your industry.

Technology and innovation in the oil and gas industry have significantly contributed to cost control, efficient contract management, and faster, more efficient well completions by enabling real-time data analysis, predictive maintenance, optimised drilling plans, automated workflows, and advanced well completion techniques, ultimately reducing downtime, improving operational efficiency, and minimising unnecessary expenses across the well lifecycle. Keyways technology has impacted cost control and efficiency in oil and gas well completion include: Advanced Drilling Technologies:

. Directional Drilling: Precisely steering the drill bit to reach targeted reservoir zones, maximizing recovery and reducing unnecessary drilling.

. Horizontal Drilling: Accessing larger reservoir sections by drilling horizontally, increasing production potential.

. High-Performance Drilling Fluids: Formulations designed to optimise drilling efficiency and minimize complications.

. Well Completion Techniques: Hydraulic Fracturing (Fracking): Utilising advanced fracturing techniques to enhance well productivity in tight formations.

·Multi-Stage Completions: Installing multiple completion stages within a single wellbore for improved reservoir access and production.

. Smart (Intelligent) Completions: Utilising downhole sensors and control systems to optimize production based on real-time data.

The lean way of doing business post-COVID had huge impact on Contract Management. Most operators in Nigeria and in the global well completion space revolutionised their contracting process to drive efficiency with quick contract award and short turn-around times from tender to award. Such initiatives include: Digital Contract Management Platforms: Streamlining contract creation, negotiation, and execution processes with electronic document management systems, improving contract compliance and reducing administrative overhead.

. Performance-based Contracts: Incentivizing contractors to achieve specific performance metrics, aligning their interests with project goals and driving cost efficiency. This was a big push in Nigeria with the operators and regulators.

. Real-time Data Visibility: Providing contractors with access to real-time project data, enabling proactive decision-making and addressing potential issues early.

The implementation of the above initiatives drove efficiency especially with the performance-based contracts. Ultimately, this led to Improved Production Efficiency, Reduced Drilling Costs, Enhanced Risk Management and Faster Projects Completion.

Let us get to your profession now. As a seasoned Completions Technical Advisor with deep experience in stakeholder management, risk mitigation, and strategic planning; proven ability to successfully lead cross-functional teams and deliver complex projects on time and within budget, what does your work entail?

My job involves a lot of project management with the sole aim of delivering cost-effective engineered completion solutions, supporting my customers’ requirements with purposed technology and distinctive service quality. Each well completion is treated as a project, my daily responsibilities include working on well completion designs, facilitating procurement of the equipment after detailed design reviews and working with my operations teams to ensure successful and safe deployment. I interface with various groups including Reservoir, Asset, Drilling, Completion and Production teams within the operator’s organisation. A lot of time is spent planning the completion; this can span weeks and even months. The actual completion installation can take from a few weeks to 1 – 2 months depending on complexity of the completion and location of the well (land, shallow or deepwater). Over the years, there has been a radical improvement in Drilling and Completions technology which has reduced operating costs in terms of project deliveries. Better down hole and topside equipment design has led to lower project costs and higher return on investments. Information technology has also simplified business processes and enhanced productivity. Digitalisation is the new wave of completion solutions connectivity that enables data to be available for processing and sharing remotely. This has drastically reduced costs associated with travel between rig sites and shore base support. Project teams can be in different parts of the world and still work together to deliver complex projects on time and within budget. This helps stake holder’s alignment and faster decision-making process. Although technology is changing the ways of working in positive ways, it also inherently introduces risks to the business. A notable risk is in the cybersecurity space which is increasingly associated with use of Operations Technology (OT) infrastructure.

What would you term the biggest drawback of drilling operations from drilling, processing, health, safety and environment to delivery for engineers in Africa, if any?

I think the biggest drawback of oil and gas drilling operations in Africa, considering drilling, processing, health, safety, and environmental factors, is the significant potential for severe environmental damage, including pollution of water sources, disruption of ecosystems, and potential for large-scale oil spills, often exacerbated by limited regulatory oversight and challenging geographical conditions in many African regions

Water contamination: Drilling operations can contaminate freshwater sources, especially in regions with limited access to clean water, impacting local communities

Air pollution: Emissions from drilling rigs and processing facilities can contribute to significant air pollution, causing respiratory issues for nearby populations

Biodiversity loss: Drilling activities can disrupt ecosystems and lead to habitat destruction, impacting wildlife populations

Oil spills: The risk of accidental oil spills is high, particularly in challenging terrain, causing severe damage to marine and terrestrial environments. This is quite frequent in the oil rich Niger Delta region in Nigeria.

Community displacement: Drilling operations may require land acquisition, potentially displacing local communities from their traditional lands. Community engagement is a huge part of a successful operational philosophy for most oil and gas regions of Nigeria.

Limited local capacity: Many African countries lack the technical expertise and regulatory frameworks to effectively manage oil and gas operations, increasing environmental risks.

Conflict potential: Oil and gas development can exacerbate existing social tensions and conflicts over resource control

Climate change concerns: The extraction and combustion of fossil fuels contribute significantly to greenhouse gas emissions, exacerbating climate change issues.

Read also: Building a future-ready workforce: Prioritising skills development and innovation in Nigeria’s Oil and Gas industry

What would you say is the future of drilling completions process, what role is artificial intelligence and machine learning playing or would play in successful completions in future? How prepared are you for this future and how prepared are business leaders in your industry for this trend?

The future of drilling and completions processes is heavily reliant on artificial intelligence (AI) and machine learning (ML), which will play a pivotal role in optimizing operations, improving efficiency, and achieving successful completions operations by enabling real-time data analysis, predictive modeling, and automated decision-making, ultimately leading to cost reductions and increased production. While some companies are actively integrating AI, many business leaders in the industry still need to fully embrace this technology to stay competitive. Sensors and AI can continuously monitor drilling parameters like pressure, mud properties, and flowrate, enabling real-time adjustments to drilling operations for optimal performance. Machine learning models can analyse historical data to optimize completion designs, including the number and placement of perforations, based on reservoir characteristics. AI can analyse complex reservoir data to create more accurate models, leading to better production forecasting and optimisation strategies. AI can also identify potential safety hazards by analysing operational data, providing alerts and recommendations to prevent accidents.

Preparation for the AI-driven future

Data Acquisition and Integration: Companies need to invest in robust data collection systems and develop infrastructure to efficiently integrate diverse data sources.

Talent Development: Training personnel in data science, machine learning, and AI applications is crucial to effectively utilize these technologies

Collaboration with Tech Providers: Partnering with technology companies specializing in AI and oilfield applications can accelerate the adoption of advanced solutions

Industry Readiness

Early Adopters: Some oil and gas companies are actively integrating AI into their operations, demonstrating the potential benefits of this technology. Certain challenges remain, including the complexity of data management, concerns about initial investment costs, and the need for cultural shifts to embrace AI-driven decision making.

Overall, the future of drilling and completions is strongly tied to AI and ML, which will significantly improve efficiency, safety, and production optimization; while some companies are actively preparing, wider adoption across the industry especially in Africa is still needed to fully leverage the potential of these technologies.

The energy transition debate: African leaders want more time to enable Africa industrialise with resources available to her before joining the clean energy transition proposition. How would it accelerate sustainable economic growth of Africa? What is your take on this? Give us your thoughts on the energy transition as a whole?

This is a big topic and was a major focus in the recently concluded COP29 summit in Baku Azerbaijan. Africa and Nigeria need forward thinking Leaders to not be perpetually left behind. At the same time, there is still a lot of untapped resources both in fossil and renewables. These resources need to be well managed. What Africa need is acceleration of its infrastructure in a way to cater for its rapidly increasing population. Per capita energy consumption across Africa is generally low but must increase rapidly to accommodate population growth and power economic expansion. African countries have opportunities to minimise the high-carbon choices made by more advanced economies, but clean energy investment is lagging. While emerging economies account for two-thirds of the world’s population, they attract only one-fifth of investments in clean energy. Nigeria will need to scale up climate action to align with the Paris Agreement. Although the country lacks concrete policies regarding emissions mitigation, its recent initiatives are a commendable step in the right direction. In addition, Nigeria should implement a climate mitigation policy framework, either by amending existing laws or introducing new climate-specific policy. We can also adopt a fair and balanced energy policy approach that diverts revenues generated from fossil fuel investments towards investments in cleaner energy, which over time may outweigh fossil fuel dependence. Attracting foreign investments using appropriate incentives and setting realistic goals for the transition will ensure a smooth energy transition. Ultimately, every country must choose its own energy path based on its specific needs and resources, and the international community must ensure that all countries have the support they need to move forward. The energy transition must be inclusive, equitable and just to secure a clean energy future

What would you remember as the biggest challenges you have ever faced in your career? How did you resolve them? Have you ever thought of quitting? Any incident that made you want to quit?

There are lots of up and downs in the industry. The biggest one is about safety. I have been lucky throughout my career not to have had any safety incidents but some of my colleagues have not been that fortunate. We work in very challenging environments where risks of incidents face us daily in our work sites; fortunately, there have been improved risk assessments and mitigations. Most companies support the Stop Work Authority approach where every employee is empowered to stop an operation if he suspects any threat to his life or co-worker. One of my direct reports had his finger lacerated during a routine job on the rig and I feared for the loss of his hand due to the impact. That experience had a profound effect on me as I had the responsibility of notifying his family. It could have easily been a fatality. Other challenges have to do with the fast pace of the business. These are multi billion dollars projects in which investors are looking for returns, making the right decision during planning and ultimately execution stage can put you under a lot of pressure and stress. This requires a lot of dedication, focus and coordination. On the flip side, it’s highly rewarding to deliver a project successfully knowing that your contribution has provided a much-needed energy source for the world.

You have worked in the oil and gas industry in for 20 years now in Nigeria, Ghana and the United States of America, what has your experience been and what would you term your greatest motivation or achievement so far?

I have been privileged to work with lots of great individuals and teams. Right from my early career and to this point, my work has been in diverse teams. I have worked with teams where multiculturalism is highly valued and intentional. This is a great way to ensure the organization is not static as there are always new ideas and contributions to be shared. It has helped me to learn different cultures and appreciate people’s point of view. Another big motivation for me is the ability to mentor and coach young Engineers through my leadership roles. Being able to impact others with my knowledge and seeing a lot of my prodigies move to the next level of their careers is quite satisfying. Ultimately, the biggest thing for me is continuous learning and prospect for growth. These are the things I look forward to each day of my life.

What are the steps taken to protect human and aquatic environments while drilling and completing well projects?

Oil and gas drilling/completion operations has a serious impact on our wildlife and communities especially in the riverine areas. Drilling projects operate around the clock generating pollution, fueling climate change, disrupting wildlife and damaging public lands that were set aside to benefit all people. One of the main ways to protect marine life during oil production is to use safer technologies that prevent or minimize oil spills and leaks. For example, use of blowout preventers, double-hulled tankers, subsea containment systems, and remote sensors to detect and stop any potential oil release. Also drill cuttings are caught and processed to allow for environment friendly discharge. Companies can monitor and evaluate the impacts of oil activities on the ocean and its ecosystems through conduct of baseline studies, environmental impact assessments, and post-operation audits to measure and report the effects of oil production on marine life. Furthermore, oil companies can collaborate with scientists, NGOs, and local communities to collect and share data, identify and mitigate risks, and support conservation and restoration initiatives. In addition, companies can minimize habitat destruction, which can degrade or eliminate the places where marine animals live, feed, breed, or shelter. For example, by directional or horizontal drilling, which reduces the number and size of wells and platforms. Avoid or minimise seabed disturbance, such as dredging or anchoring. Moreover, oil companies can restore or compensate for any habitat loss or damage caused by their operations, such as by replanting seagrasses or creating artificial reefs. Conversely, companies can educate and engage stakeholders, such as employees, contractors, suppliers, customers, and investors, about the importance and benefits of environmental protection. This is achieved by providing training, guidance, and incentives to their staff and partners to adopt best practices and comply with standards. Finally, oil companies can communicate and demonstrate their environmental performance and commitments to their clients and shareholders and support public awareness and advocacy campaigns.

Are you involved in any form of mentorship of young people, whether in Africa or abroad as a way of giving back to society? What is the focus of this mentoring programme, if there is such, and how is it structured?

Yes, I have supported some causes. My wife and I mark our Yes, I have supported some causes. My wife and I mark our birthdays by visiting homeless shelters to support the less privileged. This is an annual event where we provide support in cash and kind to such homes. We did this for several years in Port Harcourt Nigeria where I worked. I also take part in youth mentoring and coaching programs in my church where I counsel youths on their future career aspirations. I also supported WSE (Women Sharing Excellence) a program designed to encourage women professionals in the workplace environment in my company while still in Nigeria. In the United States, I am also getting involved in the Society of Petroleum Engineers eMentoring program to help college students navigate the Oil and Gas industry in terms of career aspirations.

What’s your family life like? We know it could be quite a bit of a challenge for people in your profession, especially when you must be on a project for a long time?

It can be challenging having a work-life balance in this industry. Your work can take you away to remote sites for weeks; this was my story when I started as a young Engineer. I worked rotation; 14 days on and off with time on extended if you must cover for a colleague. In my early days, the mobile phone technology was just starting in Nigeria and communicating with family from the rig site was very challenging. One of my big regrets was the loss of my mother while I was offshore. I never had time to bid her goodbye, but luckily, I was allowed to return home immediately to be with my family. It can be quite challenging staying focused on your job after extended time away from family; you need a lot of resilience, determination and positive mind set to make it work. An understanding family makes it easier.

How rewarding is your job, given the risks involved?

I have been very fortunate to be gainfully employed throughout my career. I worked majorly in operations which is very central and exposed me early in my career to other parts of the business. I was in a leadership role for a good number of years where I worked with other stake holders in making business decisions. Being in a diverse work environment for the most part, I have met a lot of great people from every part of the world that positively influenced my career. There has also been a lot of training opportunities for me in both technical and leadership spheres coupled with my soft skills that helped in my career growth, so, yes, I would say it has been rewarding.

How do you relax, when you are not thinking of customer completion well design and execution, managing Product Service Line, Business Development; working on tenders and customer engagement for the purpose of delivering quality service, world class safety and PSL growth to maximise shareholder’s value for the organization you work for?

I spend time with my family as much as the job allows. We take vacations whenever possible to go see new places. I have a list of wonderful spots on my list to visit in North America and Asia. I enjoy watching soccer especially the English premier league like most Nigerians. I am starting to catch on the American football bug and finding it quite interesting. Listening to music is one of my favorite ways of relaxing and I can be caught with a John Grisham novel from time to time especially on long flights.

What would be your advice to aspiring and early career petroleum and completions Engineers?

It takes sacrifice to get trained in any Engineering discipline but there are a lot of opportunities in the field and being part of a solution to the energy problem facing our world is indeed a rewarding venture. The world is still heavily dependent on fossil fuel despite the push towards renewable energy. There is going to be increasing demand for workers in this industry; also, with an aging workforce in North America and across the world the future is bright for a career in Petroleum Engineering. I would also advice young Engineers to also update their digital skills and possibly pivot into AI.

What can you say about yourself in line with your profession?

I am an experienced stakeholder management, risk mitigation, and strategic planning professional, and has used my expertise to drive operational excellence and achieve key business objectives in dynamic corporate environments for oil and gas operators. In my two-decade experience in the oil and gas industry, I have worked on various assets, including Land, Swamp, Shallow waters and Deep Offshore for well completion with specialty in Intelligent Completions projects for both Multinational and Marginal Oil and Gas operators in Nigeria, Ghana and USA.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp