Leveraging Digital Technology to Optimize Equipment Operation and Maintenance David Dunlevy General Manager, Caterpillar Oil & Gas Williston Basin Breakthrough Technologies CO&G STRATEGY 1 Caterpillar Confidential Green
Cater erpill llar Ov Over ervi view • $1.9 Billion Annual R&D • Over 600,000 Connected Assets • Over 700 Million Tons of Material Moved by Autonomous Mining Trucks CO&G STRATEGY 2 Caterpillar Confidential Green
Caterpillar r Oil & Gas Segments Primarily Upstream and Midstream Gas Compression Well Service Production Drilling Over 15,000 Connected Assets CO&G STRATEGY 3 Caterpillar Confidential Green
Key Challenges W We Face in Today’s O Oil & Gas Industr try • Cost Pressure • Shortage of Skilled Workers CO&G STRATEGY 4 Caterpillar Confidential Green
Caterpillar’s Role in M Meeti ting T These Challenges Use of Digital Technology + Domain Expertise: • Smarter Machines • Integrated Drivetrain Systems • Remote Monitoring – Connectivity CO&G STRATEGY 5 Caterpillar Confidential Green
Digital T Technology + Integrated Drivetrain 1. 1. PEMS – Pump Electronic Monitoring System 1 2 3 Provides pump operating conditions, prognostics and • diagnostics (over J1939) to warn the operator of leak or cavitation, to prevent damage to the pump $512k $512k A Annual C l Cost S Savin ings* 2. 2. DT DTOC – Dynamic Transmission Output Control Transmission software control features (All J1939) • Allows the operator to directly command flow rate • Simplif ifie ied f frac r rig g (or full f frac s spread) o operatio ion Includes Economy Mode shift schedule • $192k $192k A Annual F l Fuel S l Savin ings* Includes Automated Pressure Test Mode • Combined $921k annual O&O Pr Provi vides a s a “ “1-touch” p pres essure t e test routine t that i is Saf afe & & Accurate cost reduction per fleet for the 3. 3. EIRS RS – Engine Idle Reduction System customer & improves safety Allows for automatic engine shutdown and remote (electric) startup • via J1939 Reduces idle time by 60% and save 8.5% in annual fuel consumption • $217k $217k A Annual F l Fuel S l Savin ings* *Assuming a 16 unit frac rig fleet CO&G STRATEGY 6 Caterpillar Confidential Green
CO&G STRATEGY 7 Caterpillar Confidential Green
Example o le of Cat C Connect ect A Aler ert E t Escalati tion Proces cess Gas Compression Unit 10 July 2014 18 July 2014 2 July 2014 1 st Escalation 2 nd Escalation Check compressor valve 24 July 2014 25 July 2014 3 rd escalation and Back Online Value failure at 6:57PM at 9:01PM $100,000 lost production at $3.00/MCF ~ $30,000 to $40,000 parts and labor = $130,000 TOTAL LOSS *(Recommended repair cost <$2000) CO&G STRATEGY 8 Caterpillar Confidential Green
Ex Example: Text A Alert S Saves Drilli illing R Rig ig Engin ine f from Overheating TEXT ALERT to Equipment Manager • at 2:00 AM warns of Low Coolant Level MANAGER calls rig and onsite crew • discovers leaking hose Coolant Level is Topped Up and Leak • is Repaired Downtime and Emergency Callout • Avoided CO&G STRATEGY 9 Caterpillar Confidential Green
Ex Example: Remote D Detect ction of I Improper M Maintenance SYMPTOMS: Erratic Exhaust Port Temperatures • and Excessive Fuel Consumption ROOT CAUSE Improper Valve Adjustment on One • Bank of 12 Cylinder Engine VALUE DELIVERED Unscheduled Downtime and • Emergency Service Callout Were Avoided Training Program Improved • CO&G STRATEGY 10 Caterpillar Confidential Green
Example: Detection of P Plu lugged O Oil F il Filt ilter • Cat Fleet Manager identified oil filter plugging after an oil change • Oil filter was not replaced during the oil change • Filter was replaced at next shutdown, preventing an unscheduled outage for high filter differential P shutdown CO&G STRATEGY 11 Caterpillar Confidential Green
Ex Example: F Fleet A Advi visor Di Diagnoses E Emergi ging I g Issue U Using g Mobile D Devi vice ce a at Airport • Cat G3608 with Advanced Condition Monitoring • Cat Fleet Advisor Receives Alert and Identifies Faulty Spark Plug • Informs Site Personnel who replace Spark Plug during planned shutdown later that day • Unscheduled Downtime and Emergency Callout Avoided CO&G STRATEGY 12 Caterpillar Confidential Green
Next Ph Phase - Remote T Troubleshooting a and Software U Update Remote troubleshooting is a new technology enabling customers and Cat dealers to remotely perform most Caterpillar Electronic Technician (Cat ET) service tool tasks BENEFITS • Lower costs – technician, travel • Reduced downtime • Faster troubleshooting • Reduced time to repair • Troubleshoot without a site visit • Avoid site visit when no fault found • Increase the speed of repair by being better prepared to arrive to site • Right parts, Right technician skills CO&G STRATEGY 13 Caterpillar Confidential Green
CO&G STRATEGY 14 Caterpillar Confidential Green
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