American Oil and Gas Reporter - November 2022 - 40

times while minimizing failures. Plus, ESP optimization enables
us to become more aggressive in producing wells with no risk
of reservoir damage. We also are able to identify early issues
with pump sizing, which helps strategize pump downsizing
with minimal downtime. The program has expanded to more
than 170 wells, many of which are equipped with smart valves
that operate without human intervention. Now that field engineers
are more comfortable with the recommendations, ESP optimization
is close to being fully autonomous.
Dynamic Routing
Another way in which our digital initiatives help drive
revenue and ESG focus is with the implementation of a dynamic
routing system, in which we use data to optimize our operators'
routes. Previously, operators ran the same daily routes, stopping
at each well. Now, field sensors collect data and send it to our
digital platform to quickly identify critical events (whether
related to ESG or production) and route our lease operators in
response. Our dynamic routing capability has increased revenue
substantially, even though we are currently deploying it on only
half of our routes.
In addition, data entry automation is saving field technicians
from manual data entry, which used to cost them about three
hours every day. Rather than requiring operators to drive to
each well site and plug in data, our telemetry system collects
data automatically and sends it directly to the data lake, which
then feeds data to all the proper systems.
Dynamic routing works with ESP optimization to save
money and time. Once an ESP algorithm makes its suggestion
and a production engineer accepts the change, the task enters
the dynamic routing queue and sends a lift tech accordingly. As
our technology continues to mature, the process will not require
a lease operator at all. In short, the equipment will be fully autonomous.
It is another example of how Laredo is methodically
deploying proven technology throughout the company to achieve
operational, safety, business and ESG goals.
Pack
Well
Tab
Optimization
Label explanation
For well modes:
PID Mode,
Gas Lock Mode
For oil production metrics:
MAPE ≤ 20% & R2
MAPE ≤ 40% & R2
MAPE > 40% & R2
≥ 0.75
≥ 0.40
< 0.40
Recommended controls
Tubing Pressure
Current
359 psi
Oil change
314 bbl
290 bbl
↑ 24 bbl
Production contour plots
(dark areas are forbidden by limits)
Oil
600
500
400
300
200
100
40
50
60
frequency
Laredo had developed an ESP optimization initiative that uses multiple data sources from its data lake to tune algorithms to specific
business strategies, such as pump longevity or increased production. The algorithm also shows the expected result from a suggested
change, and allows data scientists to use the results to continually fine-tune the algorithms. The ultimate goal of ESP optimization is full
autonomous operations for longer ESP run times and maximum production.
40 THE AMERICAN OIL & GAS REPORTER
70
80
240
280
320
360
Data Excellence
The success of our digital solutions and the ability to
demonstrate business value have rallied the organization behind
the idea of data stewardship. Previously, our data management
occurred in silos, with heavy use of localized spreadsheets, files
and databases. Now we say that data should flow like water,
streaming seamlessly to get everywhere it needs to be. Business
and IT leaders understand and acknowledge the value of data as
the IT department matures and modernizes with the adoption of
innovative technologies that underpin our business objectives.
Data excellence is not merely a project at Laredo. Rather, it
is how we work, requiring people, processes and technologies
to successfully work together. Data stewardship is becoming
integrated into our company culture. In early 2022, Laredo
launched a Data Excellence Program, a core initiative with the
goal to break down silos and use data to drive business
decisions. Internally, we are beginning to understand what accountability
means when it comes to data as well as the
upstream and downstream impacts.
Driving clarity across the organization has been key. For example,
we have created and posted enterprise definitions of
terms in a business glossary. As an illustration, " turn in line "
(TIL) used to have different meanings throughout Laredo. Some
people defined it as the moment the well opens, whereas others
considered it the first oil production. For TIL and other terms,
we have standardized not only the description, but also enterprisewide
criteria for the data that comprises the measurement
and the method of calculation. And to standardize reporting
across the company, we have built dashboards on top of the
data lake that allow teams to share information in real time and
enable the organization to make data-driven decisions.
At Laredo, we like to say that every business discussion is a
data discussion, and every data discussion is a business discussion.
In order to be a data-driven company, we must have data that all
of our internal and external stakeholders trust. On top of the
Data Excellence Program, we have a data certification process.
Frequency
Recommended
360 psi
↑ 1 psi
Water Change
703 bbl
↑ 82 bbl
621 bbl
Pump Curve
60
50
40
30
20
10
500
1,000
Flow Rate (BPD)
1,500
Frequency
40Hz
45Hz
50Hz
55Hz
60Hz
65Hz
70Hz
75Hz
80Hz
Min
Max
Best
Current
60 Hz
Gas Change
470 MMcf
↑ 47 MMcf
423 bbl
Recommended
65 Hz
↑ 5 psi
tubing
volume, bbl
Head Feet

American Oil and Gas Reporter - November 2022

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