Knowledge is Power, and a Big AdvantageWed, 01/18/2017 - 11:06
Q: What is the extent of C&C Reservoirs’ activity in Mexico?
A: We have extensive experience with NOCs and IOCs. We understand that NOCs want to protect their national endowment, which is a country’s hydrocarbon resources. They also want to work with IOCs that have the experience to find, explore and produce hydrocarbons. Both have the ultimate goal of producing the most out of reservoirs. We have worked in Mexico for about 10 years, mainly with PEMEX, but after the Energy Reform we also began working with IOCs coming to the country. Before the Energy Reform, we trained 300 to 400 people at both PEMEX and CNH and right before the reform we assisted them in capturing information from PEMEX’s fields and helped CNH build a tool with which they could rank the assets to be put up for auction. This was all so that PEMEX and CNH can continue to protect Mexico’s hydrocarbon endowment.
NOCs and IOCs that use our platform in the Mexican bidding rounds will have added value and a tactical advantage against those who do not. By having data from global analogs they can make comparisons with the reservoirs in the bidding rounds and gain information that other bidders do not have. They improve their chances to better understand the opportunity and get those contracts that fit best with their objectives. The sooner a company reaches a decision with confidence while eliminating confirmation biases, the better off it is against other bidders.
Q: What added value do the company’s DAKS™ and DAKS™ IQ products and services provide?
A: C&C Reservoirs is a knowledge-based company started 22 years ago with the introduction of DAKS™ (Digital Analogs Knowledge System), a product that can be leveraged at almost any step in the E&P value chain. During those 22 years we have been defining the key field and reservoir attributes to consider when performing reservoir analog comparisons and benchmarking. We have been gathering information about the world’s most important mature reservoirs, which at the moment number nearly 2,000. We have written comprehensive reports and collected knowledge on more than 400 parameters for 1,500 of these reservoirs and will continuously add more knowledge so that our customers can compare the most relevant criteria across reservoirs. Such comparisons are really hard to do in this industry because geologists tend to see things differently according to their experience and often use different criteria but the standard classification system we have developed makes this easier.
DAKS IQ, introduced last year, is the latest version. It extends our capabilities for gathering knowledge and generating in depth reports to analytical tools and knowledge-capture know-how. To put in perspective the value that DAKS and DAKS IQ provide, it would take nearly 150 years to gather and synthesize the knowledge and experience reflected in our system.
The basis of the knowledge in DAKS is publicly available information from institutions, such as the Society of Petroleum Engineers (SPE) and the America Association of Petroleum Geologists (AAPG), investor presentations and operator discussions. The reports consist of a set of very detailed images with a well-documented and synthesized life story of the fields. DAKS IQ is also an analytical tool that enables customers to make comparisons between reservoirs – they begin by collecting and synthesizing their own reservoir information and then benchmarking it against proven global analogs in DAKS IQ through cross plots, histograms and characterization tables. Such a process would usually take geoscientists weeks without DAKS IQ.
The classification system we have developed, and which many of our customers have adopted, enables them to easily input their data into the system. Their reservoir information is stored securely and separately from all other publicly available information. This capability has been popular with NOCs and we believe that for Mexico it would be very interesting to use a standard classification and knowledge-capture system such as the one in DAKS IQ, especially with the large number of IOCs interested in new opportunities. For government agencies this system can help them know whether operator development plans make sense because they can compare those with success cases from analogs around the world.
Q: How does C&C Reservoirs ensure the quality of its solution?
A: The C&C Reservoirs solution is three different things, each with quality assurance and control programs. The first is a classification system and knowledge base. For more than 20 years we have developed a classification system that clearly defines each of the more than 400 parameters in our knowledge base. In addition, we have documented the guidelines for the entire classification system. When data is entered into our knowledge-capture tool by the analysts who write our reports, they know what the parameter means and how to apply it. Our quality assurance program for all knowledge capture includes clear steps to eliminate errors and the rigorous quality-control program ensures we catch them in the event they do happen.
The second is The Field Evaluation Reports. Over the past 20 years we have written about 1,500 of the world’s most important reservoirs and fields. All of our analysts go through a rigorous training program and follow a standard format for all our reports. While writing the reports analysts must reference all of the information used and each report is checked by an editor and then by a publisher before it is made available in the C&C Reservoirs Platform. Our research team is always looking for new information and when a report is updated the process is the same. Many of our reports have been updated with new information many times, ensuring we are capturing new improved recovery methods or new reservoirs in a field, for example.
The third is the development of our Analytic Tools. We have developed tools using agile software development methods that ensure we deliver what customers want and as quickly as possible.