Encana Success Story

ENCANA COMPANY PROFILE

CMYK LOGOEncana (NYSE: ECA) is one of the largest oil and gas companies in North America. Focused on oil and natural gas exploration and the development of resource plays, Encana holds a diversified portfolio of assets and a highly competitive land and resource position in a number of North America’s most promising shale and tight gas resource plays. With approximately 15.6 million net acres of land, 12.4 trillion cubic feet of proved gas reserves and 3.0 billion cubic feet per day of natural gas production, they continue to be a leader in North American gas production.

STATEMENT OF BUSINESS PROBLEM

Encana conducts oil and gas exploration activity throughout the U.S and Canada and maintains an extensive portfolio of oil and natural gas wells. Prior to this project, each Encana business unit operated independently, maintaining their own disparate systems to track well-related information in accordance with their own processes, using Microsoft Access or Excel spreadsheets. Teams involved with the management of wells complained of lack of access to important well-related data and redundant systems containing conflicting data. There was also a lack of visibility between the various functional groups involved along the well lifecycle making it difficult for the teams to forecast activities coming into their queue.

BUSINESS CASE FOR CHANGE

A steering committee was formed within Encana with representation from each of the business units and functional groups involved in the well lifecycle. The charter of this team was to define the overall well process, oversee the definition of requirements, and select solution providers. The steering committee identified a need to implement a comprehensive well planning system. The committee defined the primary requirements for the system as follows:

  • Present a holistic view of the well portfolio and provide a central repository for all well data. The repository must be easily adapted to the unique requirements of each business unit.
  • Govern the relationships between the stages of the lifecycle and provide an accurate representation of the state of each well.
  • Optimize the scheduling of valuable rig and drilling resources to maximize profit and minimize cost.

STATED OBJECTIVES

One of the initial tasks of the steering committee was to query the population of team members in the organization to clearly define the objectives and criteria for success of the project. After an extensive study, the Encana well planning steering committee defined the objectives for the well planning system as follows:

  • Increase Visibility – Provide a central repository for well planning data allowing transparency to the portfolio to facilitate meaningful dialogue among teams and catalyze process improvement.
  • Gain Control through Governance – Provide governance and accountability in managing the wells through a structured process to facilitate increased process efficiency and minimize duplication of effort.
  • Improve Collaboration and Knowledge Sharing – Promote collaboration and knowledge-sharing between teams to improve overall organizational performance in the well planning process.
  • Align Active Portfolio with Business Strategy – Continuously analyze new opportunities and existing initiatives to focus resources on activities that are strategically aligned with organizational priorities.
  • Deliver Well Projects Successfully – Automate the essential business processes of the well planning lifecycle to ensure projects are delivered with repeatable success and intended benefits are realized, to ensure that projects are consistently delivered on time and in accordance with established standards for quality.

THE SOLUTION

Oil well in front of mountain rangeAfter a rigorous evaluation process, Encana implemented the WellCycle Well Planning solution to manage their entire portfolio of wells. WellCycle Well Planning provides a central repository of well-related data, facilitating visibility and collaboration between functional disciplines, including: geology, development, mineral land, surface land, regulatory, drilling, construction, midstream, and completions. All wells are now governed through a consistent workflow, automating a repeatable process from planning through abandonment, to enforce sound governance and project management discipline throughout the well lifecycle. The system offers a holistic view of all critical drilling activity, manages the relationships between process stages, and offers an accurate representation of the state of each well. Primary functions of the WellCycle Well Planning solution include:

  •  Well Data Management – Manage all well-related data in a Web-based repository, offering visibility and collaboration between the various disciplines involved in the well planning process.
  •  Well Lifecycle Management – Govern all wells through a consistent workflow to enforce a repeatable process and facilitate hand-offs between the functional disciplines involved in the well lifecycle.
  • Drilling and Rig Scheduling – Oversee the scheduling of rigs and drilling activities to optimize the use of valuable resources and expedite the drilling process.

STRATEGIC BENEFITS ACHIEVED

After implementing the WellCycle Well Planning solution Encana has experienced the following strategic benefits to their well planning process:

  • “Single Source of the Truth” – All well-related data is now maintained in a central repository, offering data availability, information sharing and easier work relationships between the various groups involved along the well lifecycle. Individuals now understand where to find an up-to-date status on each well, increasing efficiency through streamlined internal communications.
  • Governance of a Consistent Well Lifecycle – All wells are now managed through a consistent workflow enabling a repeatable process and facilitating handoffs between functional teams. All teams now adhere to a standard well planning process reducing volatility by providing the ability to forecast upcoming activity.
  • Optimization of the Drilling and Rig Schedule – A specialized scheduling module now optimizes their drilling and rig scheduling to maximize the utilization of valuable resources and expedite the drilling process. This provides an ability to bring wells online at a faster rate, resulting in increased production and significant cost savings for the organization.
  • Regulatory Management Process – WellCycle is now the central repository to collect all data necessary for preparing permits. Other groups: Geology, Surface Land, Mineral Land, Construction, Facilities, Drilling, Completions now enter their data directly into WellCycle providing a single source for Regulatory to obtain data when preparing permits. The system also tracks key tasks in the regulatory process such as permit submittal and approval dates.
  • Colorado Oil and Gas Conservation Commission (COGCC) – Encana has configured their WellCycle system to map directly with the COGCC online permit submission system. This has helped them to organize the collection of data in accordance with COGCC formatting, thus expediting the regulatory submittal process.
  • Rig Scheduling for Batch Drilling Process – Encana has implemented WellCycle Well Planning Version 2.0 to support the drilling of multi-well pads, and the assignment of multiple drilling rigs for the various phases of horizontal drilling.

IMPLEMENTATION PROCESS

The initial implementation of the system was conducted for the Encana Mid-Continent Business Unit in Dallas, TX. The well planning steering committee, with representation from each of the functional teams, oversaw the definition of requirements and the vendor selection process. After a thorough evaluation, WellCycle was selected and the vendor began a comprehensive implementation.

First, requirements sessions were orchestrated with each functional team to define detailed data management and reporting requirements. The system was then adapted to the specific needs of each functional team and business unit, and then rolled out to a controlled group for user acceptance testing and final modifications. Users across all teams were then trained, data from previous systems was converted to the new environment, and the system was brought on line. The system was then subsequently deployed to the South Rockies Business Unit.

TECHNOLOGY PLATFORM DEPLOYED

Data Center Image

  • Microsoft Internet Explorer – Users access the system using Microsoft’s Internet Explorer Web-browser to facilitate global access.
  • Microsoft Server Platform – The system leverages Microsoft’s Windows Server, IIS, and SQL Server offering a secure enterprise platform.
  • Microsoft SQL Server Reporting Services – The system leverages an enterprise reporting platform to provide scalable, high-end business analytics.

Contact WellCycle for more information