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PROFITING

THROUGH PERFORMANCE

true for small tomid-sized oil and gas companies that are limited by the

large upfront cost of traditional on-premiseHPC systems. By using the

cloud, these companies have access to the latest hardware generations at

an entry price point that ismuch lower than on-premise systems. Reservoir

simulation is a natural fit for the cloud due to its cyclical usage. The duty

cycle of reservoir simulationwithinmost companies dramatically shifts up

and down as projects and deadlines come and go. The option to only pay

for the systemswhen they are being used is appealing tomany companies,

especially if their reservoir simulation usage changesmonth tomonth. The

drawbacks of using applications such as reservoir simulation in the cloud

are based around security concerns and the economics in high usage cases.

Even so, there is no denying that cloud technology has had a profound

impact on theHPC community. Australian oil and gas producer Woodside

is an example of a company that now runs all of its HPC exclusively on the

cloud. They have found that the burst-like nature of reservoir simulation

iswell-matched to the dynamics of the cloud. While on one day there

may be no simulations required, the nextmay demand tens of thousands

of concurrentmodels. Costs aremore directly tied to the duration and

resources consumed by each simulation as opposed to on-premise options;

however, the speed at which results are generated from inputs due to

parallel executionmeans decisions are accelerated – the value of which is

much higher than the incurred cost of immediately scalable simulation.

T

heway inwhich oil and gas companies value and use data in their

business has evolved rapidly in recent years. Some of this has been

driven by the 2015 downturn and the unrelenting pressure on energy

companies to becomemore efficient and to lower costs. These effortswill

become evenmore critical as the industry climbs out of the current slump

caused by the COVID-19 pandemic. Historically cautious energy companies

are nowaggressively pursuing new technologies that can accelerate this

process. This especially holds true in theway companies generate, process

and use data tomakemore rapid and statistically sound decisions that

can impact their business. An illustrative example is the emergence of

new technologies such asmachine learning, and the changingways that

companies use existing tools such as reservoir simulation.

A key goal of reservoir simulation is reducing the uncertainty in

forecasting. Uncertainty is introduced to reservoirmodelling primarily

by the incomplete or imprecise knowledge obtained fromsubsurface

measurements. The seismic andwell data used to create reservoirmodels is

by nature sparse and overlaidwithmany assumptions and approximations

that guide its filtering and analysis. It is important to properly represent

the uncertainty in the reservoirmodelling process so that decision-makers

understand the risk associatedwith each decision.

The traditional approach tomodelling dynamic reservoirmodels relies

on a singlemodel or a small number of scenarios that are representedwith a

high, medium, and lowprobability. Thesemodels are used to represent the

‘best guess’ of the features of the reservoir and are used tomake production

and investment decisions for the asset. By using such a small sample size of

models to represent the reservoir, engineers are thinly sampling the space

of possible outcomes. The bottleneck for using a larger sample size of data

has historically been due to the limitations of the reservoir simulation tools

available in the industry; therewas simply not enough time or resources to

carry out a complete survey of model uncertainty. This has begun to change

in the last decade for two essential reasons.

Highperformancecomputing

The first is the evolution of the high performance computing (HPC) industry

and the emergence of faster and cheaper hardware. As the increase in

clock speeds of central processing units (CPUs) began to level off in the

mid-2000s, theHPCmarket shifted tomulti-core development by putting

multiple cores on a single processor socket server. This led to a dramatic

performance increase for processes that were able to be executed on several

cores simultaneously. Performance continued to increase asmore cores

were addedwith each newgeneration of processors. As themarketmoved

intomulti-core development another key technology, graphics processing

units (GPUs), emerged in theHPC industry. GPUs contain thousands of

small, efficient cores that work simultaneously. Theywere traditionally

used for fast 3D game rendering but began to be harnessedmore broadly

to accelerate computational workloads. Not all applications could take

advantage of this newhardware, but those that could showed remarkable

speedup. The top commercial supercomputers in the industry, such as Eni’s

HPC5 and Total’s Pangea III, are bothmassive GPU-based clusters.

The emergence of cloud services has also shaped theHPCmarket by

makingmodern hardwaremore accessible to companies. This is especially

Brad Tolbert, Stone Ridge Technology, USA,

discusses the evolution

of high performance computing and reservoir simulation in the industry.

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