“Everyone wants to be first to be second.” This has been said countless times in the oil and gas industry in reference to new technology. No one wants to be the risk taker; not with a billion dollar project on the line. The challenge is taking the uncertainty out of the risk when using new technology.
A systematic risk-based qualification process, like the one in DNV’s recommended practice for technology qualification, helps technology developers build confidence in that it clearly documents the performance of new technology.
DNV developed the first industry-recommended practice for qualifying new technology in 2001–DNV-RP-A203 Qualification Procedure for New Technology. In 2005, Chevron adopted DNV’s recommended practice but changed a few items to suit its own needs. This was approved for use in 2007.
“Understanding the uncertainty associated with the use of technology and defining a technology’s risks are critical factors for Chevron. Chevron and the oil industry in general do a pretty good job of managing risks,” says Chris Chaplin, Technology Qualification Process Lead, Chevron Energy Technology Company. “What we can’t always quantify is the uncertainty and specific risks associated with the use of a technology in a particular application. We need the appropriate data to make a high quality decision.”
Chevron recognised that a qualification process was a necessary first step in the deployment of new technology. The company considered developing its own process, but identified the existing RP-A203 as a good starting point.
“The foundation for our document was the A203,” Mr Chaplin says. “We invited DNV to help our development team. We wanted to make sure that we kept the intent of A203 but we needed the process to be tailored to our specific needs.”
DNV and Chevron worked to keep the qualification process as generic as possible. The resulting process provides a consistent framework that can be applied across Chevron’s operations and development opportunities. The integration of technology qualification into a project management system and the way Chevron communicates technology development maturity are the key differences between DNV’s qualification process and Chevron’s process.
Approximately 8,000–10,000 of Chevron’s 62,000 employees will be introduced to the qualification process during the next few years. The company will focus its education efforts on the largest user communities, including those working on large capital projects and subject matter experts (SMEs), who provide technical expertise to both capital projects and existing operations. DNV runs about five or six training courses a year for Chevron employees.
Chevron’s training efforts to date have been well received by all participants. The Technology Qualification Process is a tool Chevron utilises to improve the way in which technology readiness is communicated, understand the risks associated with a technology and enhance technology utilisation in projects and base business.
Qualification process
To qualify a technology, Mr Chaplin says that Chevron “shines a flashlight into the dark corners of the technology”. Through various assessments, the company tries to identify what it does and does not know about the technology and its associated risks. Analysis using computer-based models, testing, gathering operational data from the field and developing procedures are four ways in which Chevron can quantify the risk associated with the technology.
“Depending on the specific technology being qualified, we pull the right tools out of the qualification toolbox. The methodology is the same whether we are dealing with hardware or software,” Mr Chaplin says.
Qualification allows the company to start with all the ways things could go wrong, and develop tests or analyses that are specific to the identified threats. This systematic approach to qualification provides the quantitative data necessary for making the business case to deploy the technology.
Chevron uses its process to look not only at its own technology but also at third party technology. “When we see that a technology has already been qualified according to DNV’s process, it’s easier for Chevron to determine if it is qualified for use in a specific application,” says Mr Chaplin.
Process at Work
Chevron has put its qualification process to work for the past two years. The company has qualified or is in the process of qualifying over 20 technologies. These technologies include subsea technologies, process systems and machinery systems. A Subsea Cryogenic Pipeline technology was one of the first technologies qualified using Chevron’s process.
Chevron is currently working on qualifying the next-generation earth modelling framework. This large software qualification is a mix of off-the-shelf software combined with additional custom software applications.
“This kind of software is truly the heart of the company,” Mr Chaplin says, “as it deals with subsurface uncertainty.”
Though the programme is still young, Mr Chaplin views all the qualifications to date as a success. “A success may be as simple as completing the qualification though we may not use the technology right away. From Chevron’s perspective, that’s a win because we have a technology that may be used in the next project or existing operations. The process adds transparency and traceability to our activities and allows us to build on past successes in qualification and continue to use that body of knowledge in upcoming projects.”
Date: 2009-10-23