Drilling wells with improved safety and performance while reducing cost
The application of SCRUM framework for end-to-end well delivery will transform the process making it simple, resourceful and most importantly fully adaptable to the ever-changing subsurface environment. This flexibility combined with iterative, collaborative and transparent working practices, common to the Agile decision-making process, will allow the entire cross-functional well delivery team to respond and make informed decisions faster and more accurately than is achievable using any other approach.
Oil & gas operators have largely held back from the ongoing Agile revolution when many other industries are already implementing Agile operating models at scale. This lack of movement is not because of the Agile potential or unclear benefits. The reluctance to scale Agile comes instead from the fear of compromising safety, technical quality, and the management of risk.
Organisations are right to be cautious. A coding error at a software company may increase costs or delay development, but the thought of an oil spill or exposure to a serious human harm should lead any sensible leader to think twice about profound operating-model innovations.
But Agile is no longer an unproven concept. Done correctly, it could significantly reduce risk and improve the decision-making process.
Waterfall versus Scrum
Historically, the waterfall project management methodology has been used across the industry for drilling oil & gas wells. The main difference between traditional waterfall project management and SCRUM is the approach to the final product – a completed, optimally placed well that will produce hydrocarbons at the expected rates for the anticipated amount of time. In the waterfall approach, the delivery team focuses on following the well delivery process whereas in SCRUM the most optimal final product is in the centre of attention.
Delivering a project on budget, schedule and objectives (as per waterfall process) doesn’t often guarantee an ultimate success as unforeseen problems often arise out of the implementation of the prior agreed drilling well designs. Any well, whether vertical, deviated, horizontal or ERD is drilled within the subsurface which cannot be fully assessed and planned for.There are many factors that will affect the final product, and which cannot be fully determined pre-drilling. Hence, the characteristics which the final product (drilled and completed producing well) will possess, is continuously changing during the delivery process as the well is being drilled and the final product might actually vary significantly from what was assumed during the planning stage.
Although mitigations for each mentioned issue are prepared pre-drill, the actual effect of these issues on the final result can only be addressed reactively while drilling. Consequently, this creates a continuously changing environment and involves adjustments of the requirements on the spot (while drilling) which cannot otherwise be anticipated. The delivery team needs to continuously inspect and adapt to the changing subsurface conditions while drilling, modifying the mud weight, changing the drilling parameters, the direction of drilling, responding to the changes in lithology etc.
In this highly reactive (non-static) process the team must obtain a continuous “feedback” from the subsurface environment, the drilling tools and sensors, analyse it and adjust accordingly (see figure 1).
Changes to requirements can’t easily be incorporated with the rigid waterfall methodology and there are often laborious change control procedures to go through when this happens. The waterfall approach also doesn’t allow for continuous feedback based on which the product (the well) can be adjusted.
For the full paper see below:
You can learn more about how to apply SCRUM for the Well Delivery Process by signing up for our new courses:
