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Cisco Kinetic for Oil and Gas: Refineries and Plants

Cisco Kinetic helps oil and gas companies improve operations
IoT drives innovation in a new norm

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Table of Contents

Introduction ........................................................................... 3

Realizing the Benefits of IoT .................................................... 4

Gas Monitoring and Detection Use Case .................................... 6

Equipment Health Monitoring Use Case ..................................... 9

Valve Status Use Case .......................................................... 12

Why Cisco ........ ................................................................... 15

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Introduction Increase business
Operating during a new norm of lower oil prices and heightened safety and value with digital
environmental awareness, will not pose challenges for inefficient oil and gas innovations that help
companies. It will also drive the efficient ones to find new and consistent increase productivity
methods to preserve or increase profitability, compliance and reputation.
and minimize risk
According to Deloitte, digitization through IoT promises to help petroleum
organizations meet these challenges head on as part of their key focus to:

• Improve reliability and manage risk: Minimizing the risks to health,

safety, and the environment by reducing disruptions.

• Optimize operations: increasing productivity and optimizing the supply

chain through the cost and capital efficiency of business operations.

• Create new value: exploring new sources of revenue and competitive

advantage that drive business transformation.

The potential value of IoT for oil and gas companies is not through directly
managing their assets, supply chains, or customer relationships. IoT provides
a new dimension to the organization, by providing new information about
these parts of the business, delivering a new level of value (Figure 1). This
information can be readily leveraged to provide greater insight into operations,
and to make better decisions.

Oil and Gas

$1.1T Digital Value at Stake
2015-2024

USE CASES
$428B Drilling optimization
USE CASES Lifting process automation
Recovery efficiency Refinery productivity
Dry wells optimization Cybersecurity
Asset
Cybersecurity
Utilization OUTCOMES
Innovation Reduce drilling cycle time
OUTCOMES
Increase recovery rate $335B Streamline project costs
of oil-in-place Increase security

USE CASES USE CASES

Project planning $153B Next generation workers
Management of spares/ Remote monitoring
inventory Safety and security
Supply Chain OUTCOMES Employee Monitoring control
& Logistics Reduce schedule overruns Productivity OUTCOMES
Streamline project costs $84B Reduce downtime rate
Increase security Significantly reduce driving
mileage of field personnel

$40B

USE CASES
Recovery efficiency $20B
USE CASES
Drilling optimization Energy management -
downstream
OUTCOMES
Customer Reduce fuel prices Oil spillage control
Experience Improve environmental Sustainability OUTCOMES
conservation
Optimize energy utilization
in lighting of refineries
Reduce probability of
environmental hazards

Figure 1: Oil and Gas Digital Value at Stake (Source: Cisco, 2015)

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Realizing the Benefits of IoT in Oil and Gas
Refining and Processing
With the staggering number of machines, devices, and processes present on
any plant floor, oil and gas is one of the top industries positioned to benefit
from digital transformation, and specifically to benefit from IoT technologies.

Industry Trends

62% Over the next 3-5 years, 62% of oil and gas
executives worldwide say they will invest more
than they currently do in digital technologies.

$20B Unscheduled refinery shutdowns in the U.S. alone

cost customers 5% of their total production, or $20
billion per year.

5.6% Global gas detection market will expand from

$3.4B to $5.6B by 2024, a 5.6% CAGR.

77% A refinery valve monitoring project reduced

customer hydrocarbon losses by $3 million annually.
The project paid for itself in five months with an
estimated ROI of 271% annualized over 20 years.

Data sources: Deloitte, Cisco, Cisco, Research & Markets

An Ernst and Young survey of global executives showed 61% of oil and gas
companies are experiencing positive financial change as a result of digital
transformation. This is further backed by an FC Business Intelligence 2018
Market Outlook report that summarizes it well — automated data-centric
software solutions deliver powerful productivity and collaboration tools that
provide the following benefits:

• An increase in the speed and quality of decision making.

• Early identification and mitigation of risks.

• A seamless, single-source-of-truth data, amongst all participants in

a value chain. This could include the owner (IT, OT, security), multiple
contractors, subcontractors, vendors and suppliers.

• Intelligent analysis of information using purpose-built algorithms.

• Data captured, analyzed and shared in near real-time.

• Reliable data for benchmarking performance and passive non-intrusive

data collection to continuously evaluate project practices.

• A workflow-focused, automatic dissemination approach.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Oil and gas companies recognize this potential; however, according to a 2017 Get the right data to
Accenture study, have been slow on the uptake. This is where Cisco Kinetic for the right applications
Oil and Gas and our pre-integrated Starter Solutions can help. Cisco Kinetic
for actionable insights
helps oil and gas companies get maximum value from IoT data. It simplifies
the process of gathering large amounts of data, sifting through data to identify
that drive value
meaningful information, and translating information into easy-to-consume,
actionable insights.

Cisco Kinetic is a versatile platform that performs three key functions:

• Extracts data from its source.

• Computes data, anywhere in the network from edge to destination.

• Moves data to the applications and business intelligence systems the

company uses for deeper analysis.

Because Cisco Kinetic is sensor and system vendor agnostic, it can collect and
analyze information from all types of plant devices, applications and assets.
The solution provides automated near real-time alerts on gas measurements
and equipment performance, leading to optimized equipment maintenance.
And plant operators gain the ability to simplify worker safety by tracking and
monitoring location and associated leaks. Asset performance and worker
safety information is monitored from a single, consolidated view.

This paper describes three use-case scenarios enabled by Cisco Kinetic for
oil and gas refineries and processing plants: gas detection and monitoring,
equipment health monitoring, and valve status and alignment. All of these
use cases can be deployed individually, or as part of the same solution
leveraging common communications infrastructure and operational visualization
dashboards. The solutions can scale from a handful of sensors, to plant-wide
deployments using the same technologies.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Gas Monitoring and Detection Use Case

Customer Situation

An oil and gas major had limited visibility into gas leaks in the refinery as their
sensors were installed in fixed locations. They also had no visibility into the
location of personnel, raising potential safety issues as they couldn’t see where
workers were in relation to leaks. Productivity of workers was also impacted
as commencement of work was always delayed due to a manual gas detection
survey in places of work. Installing wired gas detectors to provide pervasive
coverage was not an option due to high installation costs.

The plant manager and safety teams needed a solution that provided near
real-time visibility of gas detection and personnel location, with easy to
understand visualization and alerting dashboards. This would enable them to
improve productivity through decreasing the time taken to start work, optimize
evacuation route planning, and to meet critical staff safety and compliance
goals.

Cisco Kinetic Gas Detection and Monitoring Solution

To address these customer needs, the gas detection and monitoring solution Cisco Kinetic
was developed, featuring Cisco Kinetic, Cisco industrial hazardous location
wireless infrastructure, and key partner fixed and mobile wireless 4-way gas
detectors from trusted partners.

Cisco Mobility
In the refinery, engineers are equipped with mobile 4-way gas detectors, Services Engine
supplemented by fixed wireless gas detectors in key locations. The plant is MSE

covered by a pervasive industrial wireless MESH. Real-time gas monitoring

measurements information is sent from the gas detectors, across the wireless Cisco Wireless
LAN Controller
infrastructure, to the Cisco Mobility Services Engine (MSE). This information
includes gas measurements for H2S, LEL, CO2, and O2, in addition to the Cisco 1552H
Wireless
location of the sensor and engineer in the plant. This data is passed from the Access Point
MSE to Cisco Kinetic.

Cisco Kinetic receives the data, processes it using customer defined policies 4Way Wireless
Gas Detector
and key performance indicators (KPIs), and turns the data into actionable
insight via a near real-time gas monitoring and detection risk map in an
operational dashboard. The dashboard is viewable by operations, maintenance
and safety teams, and can be extended securely to the enterprise. The
dashboard also includes historical analysis that can be leveraged for gas leak
prediction and automated evacuation route planning and mustering.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
 Gas detection and monitoring
Historical
Historical
information
information

Real-time
R eal-time gas
gas
detection
detection alerts
alerts

Individual gas
Individual gas
ssensors
ensors drill
drill
Real-time
R eal-time
down
drowndetails
details
personnel
personnel
location tracking
location tracking

Solution Benefits

• Operational cost savings through the elimination of significant gas testing

effort for hot work starts.

• Time-savings and productivity improvements by eliminating gas testing

activities, resulting in higher wrench time for employees and contractors.

• Improved safety through near real-time location awareness of individuals,

especially during turnaround.

• Quantifiable benefits with the company realizing annual $1.4M USD

savings based on the reduction of time keepers, contractor productivity
improvement and early start of hot work.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Gas Detection Use Case Components Track gas detection
• Cisco Kinetic: Provides real-time visibility into gas levels throughout the alerts and employees
plant and location of all workers through a single operational view of your with a real-time,
IT and OT environments along with your broader networks of IoT devices. location-based
It includes a secure IoT data pipeline, and an embedded, operational
reporting dashboard
reporting and visualization dashboard, providing real-time and historical
location based tracking of employees and gas detection alerts.

• Cisco Mobility Services Engine: Provides secure wireless asset and

worker location based services to deliver:

• Worker location tracking for personal safety monitoring

• Portable H2S gas detector monitoring and tracking
• Man-down alarming and alerting

• Cisco Wireless Infrastructure: The 1552H Industrial Wireless Access

points are hazardous location-certified and designed specifically for
industrial environments like oil and gas refineries, chemical plants, and
process control applications. They create flexible, secure, scalable, self-
healing and self-optimizing wireless networks, to support multiple-device
and multiple-network application delivery such as real-time mobility,
video surveillance, and high speed data transfer.

Cisco wireless controllers provide the visibility, scalability, and reliability

needed for highly secure, enterprise-scale wireless networks, with
simplified operations and centralized control.

• Wireless 4Way Gas Detector: Continuously monitors a worker’s

exposure to gas, and their location in the plant. It detects up to four
gases (H2S, LEL, CO, O2, SO2, NO2), transmits real-time alerts over a
wireless network, and alerts the control room during man-down or
panic-button scenarios.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Equipment Health Monitoring Use Case

Customer Situation

An oil and gas major had inadequate sensor instrumentation on key plant
assets to adequately monitor key equipment health variables in real-time.
The company wanted to increase overall uptime of assets through real-time
operation of equipment, identifying faults and fixing them before they occurred
and caused outages, and ultimately extending the life of assets. Equipment
was inspected on a pre-scheduled basis. This meant that equipment might not
perform optimally, or might break, prior to a scheduled maintenance visit. It
also meant that equipment would be taken offline during the inspection, even if
it had no issues. Both could impact production time and profitability.

The plant manager and engineering teams needed a solution that provided
near real-time visibility of equipment performance in line with vendor and
industry recommendations, for optimal performance. They also wanted to be
forewarned if any equipment began exhibiting signs of requiring maintenance,
and to be able to introduce a condition-based maintenance plan. Deploying
wired sensors would incur high costs, and would not enable transient or
intermittent monitoring.

Cisco Kinetic Equipment Health Monitoring Solution

Equipment health monitoring

To address these customer needs, the equipment health monitoring solution Cisco Kinetic

was developed that features Cisco Kinetic, Cisco industrial hazardous location
wireless infrastructure, and key partner wireless temperature, vibration and
pressure sensors. Cisco Wireless
LAN Controller

The wireless sensors are deployed on assets throughout the plant, including
Cisco 1552H
heat exchangers, compressors, turbines, flare stacks, cokers, motors, pumps Wireless
Access Point
and drives. The plant is covered by a pervasive industrial wireless MESH
infrastructure. The sensors transmit real-time process data to the sensor
Sensor
gateway, which is passed across the wireless infrastructure to Cisco Kinetic. Gateway

Cisco Kinetic receives the data, and provides near real-time edge processing Wireless
Sensors for
and analysis of data, immediately forwarding critical data and alerts to a Temperature,
real-time operational dashboard, and forwarding aggregated historical data Vibration and
Pressure
to a storage database. Kinetic analyses the sensor data (which can come
from multiple vendors, and via multiple industrial protocols) against pre-
defined policies and key performance indicators (KPIs), and turns the data into
actionable insight via a near real-time equipment health monitoring operational
dashboard.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
The dashboard is viewable by operations and engineering teams, and is
securely accessible by the enterprise. The dashboard also includes historical
analysis that can be leveraged for equipment performance optimization, and
for maintenance planning moving towards more of a condition-based model.

Equipment health monitoring

Equipment
Equipmenthealth
overview
health overview

R eal-time alerts
Real-time alerts

Equipment
Equipment
health
healthstatistics
statistics

Visual equipment
Visual equipment
performance data
performance data

Solution Benefits

• Fast, easy deployment, with reduced deployment costs.

• Optimized equipment performance leading to increased production.

• Reduced downtime through identifying faults before they occur and

preventing equipment failure.

• Intuitive and easy to understand multi-vendor operational information

dashboard, providing a vendor agnostic way to connect and monitor
assets.

• Quantifiable benefits with the company realizing annual $1.5M USD savings
due to performance monitoring, process condition optimization, and
predictive maintenance.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Equipment Health Monitoring Use Case Components Count on secure
• Cisco Kinetic: Provides real-time visibility into the equipment performance and self-optimizing
of any vendor throughout the plant through a common IoT platform that wireless networks
can be leveraged in your IT and OT environments. It includes a secure IoT for reliable tracking
data pipeline, and an embedded operational reporting and visualization
of equipment
dashboard, allowing real-time and historical equipment performance
information.
performance

• Cisco Wireless Infrastructure: The 1552H Industrial Wireless Access

points are hazardous location-certified and designed specifically for
industrial environments like oil and gas refineries, chemical plants, and
process control applications. They create flexible, secure, scalable, self-
healing and self-optimizing wireless networks, to support multiple-device
and multiple-network application delivery such as real-time mobility,
video surveillance, and high speed data transfer.

Cisco wireless controllers provide the visibility, scalability, and reliability

needed for highly secure, enterprise-scale wireless networks, with
simplified operations and centralized control.

The addition of a Cisco MSE will provide site-wide location of assets.

• Wireless Sensors and Wireless Gateway: Wireless sensors are

connected to plant assets, measuring and monitoring temperature,
vibration, and pressure sensors. The wireless gateway consolidates data
from the wireless sensors and passes the data the Cisco 1552H wireless
access point infrastructure.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Valve Status Use Case

Customer Situation

An oil and gas company had challenges with the valve alignment process
in their plant. Valve misalignments in tank fields and blending areas caused
incorrect product mixes, resulting in financial losses from product quality,
and posed environmental safety issues. Multiple incidents of misalignment
in a single plant caused millions of dollars in documented financial losses in
a single year, through poor product quality due to tanks or deliveries being
contaminated, and operational issues affecting the performance of multiple
process assets.

The valve alignment status and monitoring process in the plant was manual, or
verbally communicated. Worker and documentation errors led to production
issues, and it was a time consuming and manually intensive process. The plant
manager needed a solution that provided near real-time status of the valve
positions throughout the plant, including location to help engineers identify
individual valves for manual changes. The manager needed a single operational
dashboard that would indicate the correct status of all valves involved in a
product transfer so they could be locked in place, prior to starting the transfer
or blending process.

Cisco Kinetic Valve Status Alignment Solution

Valve alignment status

To address these customer needs, Cisco has developed a solution that features Cisco Kinetic

Cisco Kinetic, Cisco industrial hazardous location wireless infrastructure, and

key partner wireless valve position sensors.

The wireless sensors are deployed on non-monitored valves throughout Cisco Mobility
the plant, with the plant covered by a pervasive industrial wireless MESH Services Engine
MSE
infrastructure. The sensors transmit near real-time valve status process data
to a sensor gateway, which is passed across the wireless infrastructure to
Cisco Wireless
Cisco Kinetic. LAN Controller

Cisco Kinetic receives the data, and provides real-time visualization of all Cisco 1552H
Wireless
monitored valves and their status. The dashboard provides full schematics Access Point
for the plant environment, and PDFs, images files or real-time video for each
valve can be reached at the click of a button. Kinetic also provides real-time Sensor
Gateway
analysis of the valve data, against pre-defined business rules and actions set
by the company, and turns this into actionable insight by providing full product Wireless
flow path status and indicators that operators can use to indicate it is safe to Position
Monitor
start the transfer or blending process. Sensors

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
The dashboard is viewable by operations and engineering teams, and can
also be securely accessed by the enterprise. The dashboard also includes
historical analysis that can be leveraged for logistics optimization, scheduling
efficiencies, and event analysis.

Valve alignment status

Real-time valve
Real-time valve
position status
position status
Site piping
Site piping
and valve map
and valve map

Site piping
Site piping and
and valve
valve mapmap

Solution Benefits

• Increased visibility into real time valve status, plant-wide.

• Cost avoidance through improved product quality and minimized waste.

• Improved worker productivity through minimizing manual intervention and

locating valves.

• Ensuring compliance by meeting safety and environmental goals, and

providing a second barrier of protection to operational activities.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Valve Status Use Case Components Analyze valve data
• Cisco Kinetic: Provides a single operational view of your IT and OT in real time, based
environments along with your broader networks of IoT devices. It includes on your customized
an embedded, operational reporting and visualization dashboard. business rules
• Cisco Wireless Infrastructure: The 1552H Industrial Wireless Access
points are hazardous location-certified and designed specifically for
industrial environments like oil and gas refineries, chemical plants, and
process control applications. They create flexible, secure, scalable, self-
healing and self-optimizing wireless networks, to support multiple-device
and multiple-network application delivery such as real-time mobility,
video surveillance, and high speed data transfer.

Cisco wireless controllers provide the visibility, scalability, and reliability

needed for highly secure, enterprise-scale wireless networks, with
simplified operations and centralized control.

• Wireless Valve Alignment Sensor and Wireless Gateway: Wireless

sensors are connected to valves across the plant, monitoring and
reporting on valve position (open, close, angle). The wireless gateway
consolidates data from the wireless sensors and passes the data the
Cisco 1552H wireless access point infrastructure.

© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.
Why Cisco

All of these solutions can be achieved through a single implementation of

Cisco Kinetic, with one powerful IoT platform providing a single operations
and management portal for multiple use cases in the refinery and plant
environments.

Digital transformation is accelerating, and keeping pace with these changes

is more important than ever for organizations that want to stay competitive.
That means deploying flexible solutions that can help you optimize your most
important business processes. Cisco delivers a digital-ready infrastructure that
is secure, automated, simple, and intelligent. And our rich portfolio of solutions,
backed by our service offerings and our global partner ecosystem, delivers
a robust foundation for your digital transformation. Jump-start your digital
journey today.

For more information, check out www.ciscokinetic.com.

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© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public Information.