Knowledge Management Strategies for Mitigating the Big Crew - Wipro

Knowledge Management Strategies for mitigating the Big Crew Change in E&P
In Wipro’s implementation of wikis, these elements are built into a much larger solution that links wikis to people, assets and
processes, while using next generation search engines to quickly locate the information needed to solve a problem or locate a
person who has the required knowledge. The solution goes one step further through communities and markets that greatly
increase the knowledge pool. This will become critical as more and more knowledge leaves companies as people retire.
Wipro has been studying this issue since 2007 and has worked with Rice University, Microsoft and customers formally and
informally. Wipro is a Silver sponsor of Rice’s Energy Management program. Since Wipro plans to base this solution on the MOSS
platform, Microsoft has funded research and provided technical expertise. Many of Wipro’s customers have shared information
on their internal research programs. Wipro has provided a Proof-of-Concept (POC) to Petrobras in Houston, TX. Petrobras is
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evaluating the POC’s ability to improve offshore operations in the Gulf of Mexico (GOM).
The Challenge
Most of the world’s “easy” oil is gone, forcing oil companies to focus on smaller oil fields, enhanced recovery, and deepwater oil.
4All three are engineering intensive and require large capital investments. This is happening at a time when most of the
industry’s top engineering talent is about to retire. Making matters worse, universities are only providing a fraction of what is
needed to replace the retirees. As a result, the oil industry is in a crisis.
Twenty years ago there were fifteen “Super Giant” oil fields capable of producing a million barrels per day. Today there are only
four.5 In order to meet production targets, companies are producing larger numbers of smaller fields. These smaller fields are
resource-intensive, requiring substantially more engineering hours per barrel of oil produced. Smaller fields also scatter
engineers, reducing productivity. Since it is unlikely that new Super Giant fields will be discovered, smaller fields will
produce more and more of the world’s oil. As a result, the demand for petroleum engineers will increase year after year unless
technology can be used to offset this trend.
Since low-cost oil is becoming harder and harder to find, the industry is revisiting depleted oil fields with enhanced recovery
technologies such as gas injection, chemical injection, ultrasonic stimulation, microbial recovery and thermal recovery. In a
typical field only 20% to 40% of the oil can be produced by primary and secondary recovery means. With enhanced recovery this
improves to 30% to 60%. The downside is the expense and the fact that it is engineering intensive. As energy prices increase,
enhanced recovery makes economic sense. However, it will also further strain engineering resources.
Seven of the last 10 Giant oil fields have been discovered in deep water off Brazil, in the Gulf of Mexico and in the Persian Gulf.
Giant oil fields are capable of producing more than 100,000 barrels of oil per day or 10 percent of a Super Giant. For example,
BP’s Thunderhorse platform 150 miles southeast of New Orleans in the Gulf of Mexico now produces between 100,000 and
300,000 barrels of oil. It came on line with seven wells in 20086. Future production may hit as much as a million barrels of oil per
day from up to 50 wells. The semi-submersible platform cost over $1 billion dollars to build and accounts for 3.3% of current U.S.
oil production. Thunderhorse was originally planned to come on line in 2005 and ran three years behind schedule. It is widely
believed that a shortage of engineering talent contributed to the delay. Since there are likely few Giants and Super Giants left to
be found on shore, the future of oil production will move off shore. This will further stress the short supply of engineering staff.
5 | www.wipro.com/industryresearch
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