Dan Morrison, Industry Principal Consultant O&G, Hexagon
In Partnership with Progressive TSL
Published 22 November 2022
Dan, please tell us a bit about the Hexagon / Progressive Partnership
The partnership started many years ago and after a myriad of projects, the chemistry of the team continues to strengthen and build. Hexagon has a broad spectrum of tools and capabilities. Sometimes the sheer number of digital solutions can be overwhelming in options whether the project is greenfield or brownfield. This is where we see the partnership between Progressive and Hexagon as a significant difference-maker.
The proof is a steady string of successful projects over the years. Hexagon has a host of tools and technologies for managing digital projects and asset performance. Progressive is one of the industry experts in deploying and utilizing these tools to the benefit of our customers. A hammer is a great tool in the hands of skilled craftsmen. Progressive’s knowledge of our digital toolbox and knowing when to use the correct tool is the common thread amongst successful projects coming under budget and speed of implementation.
What kind of projects are keeping you busy at the moment and how have relationships with customers evolved as a result of the pandemic?
The Pandemic had a tremendous impact on our industry and fundamentally changed how the energy industry will do business going forward. I think that is true for many other industries as well. The oilfield, for example, had to learn how to work afar when it has historically relied on close human coordination in hazardous and complex environments. Case in point, take a hydraulic fracturing engineer that typically was present at the wellsite for complex and challenging jobs. The engineer had to learn to call the job remotely. The operator had to learn to accept the change. At the start of the pandemic, this was a major cultural change for the industry. Now it is the “new normal”. The changes reverberated from the rig floor to the back office. No job was untouched during the pandemic.
The industry has seen incredible volatility in commodity pricing only to be compounded in the wake of the Ukrainian situation. This volatility and process chaos was the impetus for many energy companies to finally start their digital transformation journey in earnest. Therefore, the types of current projects in the pipeline run the spectrum from upstream oil and gas operations and service companies to midstream and downstream asset-intensive projects. The challenges are diverse between the various geo-markets around the world as well, but one common thread is the importance of having an effective digital infrastructure. The age of the connected worker has officially arrived in industry. The pandemic was a woke moment for the oil and gas world. We had to learn to execute critical tasks with information from a distance.
Of course, the events that unfolded in Eastern Europe only compounded the situation. The price of oil briefly went negative, but within two years the prices reversed field and went above $100 (USD) / bbl.
The initial drop in oil destabilized the market, and as a result, we saw a tremendous exodus of talent that a year later was exactly what was needed and in short supply today. Logistical and inventory nightmare as well. Again, the industry realized the importance and impact that a smart digital infrastructure plays in managing these human capital challenges and logistical challenges. A great digital solution example is the connected worker capabilities of our EAM (Enterprise Asset Management) software helping our clients do more with less while improving safety, quality, asset visibility, and efficiency. Our clients are quickly observing that these same digital systems in turn help reduce the learning curves and accelerated training via checklists, mobile asset visibility, and real-time alerts. If “Necessity is the mother of Invention” …. “Innovation is the digital twin”.
ESG is more than a corporate buzz word or “Green Washing” when you can provide a quasi-immutable and easily auditable digital history of how an asset had operated. The days of excel spreadsheets and paper file rooms to operate and manage an asset are quickly coming to an end.
What are some of the most recent project activity areas?
If I had to highlight one area it would be around Green LNG and all aspects of its production, transportation, distribution, and ESG components. Methane emission reduction by identifying and eliminating point sources like leaks, unscheduled flaring, and the venting of GHGs. Methane emission mitigation was front and center this past week at COP 27 in Egypt.
It is an industry challenge that stretches from the multi well production pads well in West Texas to a deep water FPSO in West Africa…. or from the Delaware Basin in New Mexico to the Vaca Muerta in Argentina. The various geo-markets seem to have many differences and complexities, but they share many more similarities than differences.
Stranded Gas fields are scattered around the world and are defined as large proven fields that are currently uneconomical to develop. Most estimates put the number of stranded gas fields above 1200 globally with proven natural gas reserves somewhere between 40-60% of current total proven world reserves. The events in Eastern Europe have greatly accelerated the pace at which these asset-intensive fields will be produced. Digital infrastructure systems will be central to the successful development of these assets as the majority of the KPIs will certainly be tied to an ESG framework from their primary investment vehicles.
The power of the Progressive and Hexagon relationship is that our customers often leverage our extensive knowledge and practical insight so that they are not starting from ground zero when they engage our team. Many times, our clients bring the innovative ideas and strategies, and many times the solutions come from the Progressive and Hexagon teams’ expertise, but many times it is a collaboration of all the stake holders…. the client, Progressive, Hexagon, and our combined SME networks.
Dan, you’re a panellist on the ‘Clean Tech Enabling the Transition’ session at the World Energy Capital Assembly'. What kind of themes and topics are you looking to hit on and what insights are you eager to access from your fellow panellists and indeed the WECA audience
I personally have not seen a ‘functional clean energy transition' strategy that does not involve “Green” natural gas. “Green” Certified Natural Gas is necessary to make the “Green” LNG that is needed for the “Transition”. “Green” LNG is critical and central to all the COP 27 driven initiatives and concepts presented last week that will or might possibly result in more stringent regulations and market challenges for the global production of the development, production and marketing of natural gas. Especially something that could be defined from a contractually binding perspective such as “Green”.
In the Forbes article – “Green LNG” – “A Pathway For Natural Gas In An ESG Future?”
”Already, more than 3,100 investors with $110 trillion in assets under management have signed on to the Principles for Responsible Investment, which supports its signatories in incorporating ESG factors into their investment and ownership decisions. ……..This has helped fuel the emergence of a new product within the LNG industry.
[Published Oct. 26th, 2020]
At this point in time, “Certification” is the most logical pathway for the energy industry. Think about it for a second….How do you track a ‘gazillion’ methane molecules around the world from the reservoirs, through the field production facilities, mixing with “non green” molecules through the regional gathering system, diluting even more through more extensive midstream systems, finally arriving at the LNG condensing facilities, loaded onto an LNG vessel to be shipped across the ocean to all the industrial countries? Especially to those developing countries that otherwise would be burning their low BTU coal/lignite resources to determine if the natural gas burned was produced in a “Green” method. It’s impossible today. That is why certification has so much momentum in the energy industry.
I am really excited to engage with the panellist and especially the broader audience at WECA. You never know when and where a “good” solution will originate. Success spreads quickly in the oil and gas industry. Just take methane emissions around flaring and venting practices for example.
How do you think clean tech innovations will ultimately allow for the oil and gas industry to lower carbon emissions?
Currently, the industry is experiencing a fundamental shift in how brownfield and legacy assets with large carbon footprints from GHG emissions migrate from a “Run to Failure” maintenance strategy (primarily reactive) to a preventive and predictive methodology (very proactive) to reduce or eliminate unscheduled flaring and venting of methane/CO2. Digital technologies targeting Asset Performance Management like our Enterprise Asset Management (EAM) is a natural first step for many of these owner operators.
Oil & Gas organisations have made vast investments in their digital infrastructures as to improve efficiencies, increase output and ultimately lower costs however how is digital supporting with decarbonising operations and supporting around ESG?
Whether you are talking about CCUS or low-temperature geothermal, you are talking about significant capital investment in infrastructure and operational complexity. Take CCUS for example, it sounds simple enough that an operator can utilize existing infrastructure like a brownfield asset in shallow water by pumping CO2 into the depleted reservoirs. The reality is that CO2, when introduced into any system, is highly corrosive and most existing flowlines and well completion equipment cannot handle these harsh environments created. Digital technology is critical to commercially successful operations.
ESG is more than a corporate buzzword or “Green Washing” when you can provide a quasi-immutable and easily auditable digital history of how an asset had operated. The days of excel spreadsheets and paper file rooms to operate and manage an asset are quickly coming to an end. Ultimately, the solutions and strategies that will prevail in the digital space are those that will leverage the connected worker and Smart Digital Reality, digital twins, and digital automation.
Hexagon and Progressive TSl are associate sponsors of the World Energy Capital Assembly 2022, where Dan Morrison will be speaking on the panel: ‘Clean Tech Enabling the Transition – The Importance of Emissions Management, Reduction & Removal for Ongoing Hydrocarbons Exploration'
Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications. Our technologies are shaping production and people-related ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future.
Hexagon’s Asset Lifecycle Intelligence division helps clients design, construct, and operate more profitable, safe, and sustainable industrial facilities. We empower customers to unlock data, accelerate industrial project modernization and digital maturity, increase productivity, and move the sustainability needle.
Our technologies produce actionable insights that enable better decision-making and intelligence across the asset lifecycle of industrial projects, leading to improvements in safety, quality, efficiency, and productivity, which contribute to Economic and Environmental Sustainability.
Learn more at hexagon.com
Progressive TSL is a business consultancy and solutions provider dedicated to providing finance, supply chain and asset management technology solutions to the energy industry. They are Hexagon Gold Channel Partners. Progressive overlay Hexagon’s physical asset management technology with their best-practice energy frameworks to meet the specific needs and processes of the industry. Progressive TSL has offices in London, Aberdeen and Lagos.
Learn more at progressive-tsl.com
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