Plume Rises Over Oil and Gas Industry

By Nicole Hemsoth

June 8, 2011

Although the oil and gas industry could make use of cloud computing for remote processing of mission-critical operations, it is not common to encounter a steady stream of case studies in this arena. While there might be a few stories that fall under the behind-the-firewall, private cloud model, it seems that public clouds or multitenant managed services are not, for some reason, gaining traction with oil and gas IT leaders.

To get to the heart of this industry’s approach to cloud computing we put some questions to Mark Fossen, CIO of Rigstar Communications, Inc. and Jeff Holden, VP Energy and Utilities at Marlabs, Inc.

Rigstar handles lifecycle communication services for the oil and gas industry via their handling of remote wide area network requirements, mostly for the industry’s North American customers. They recently partnered with Marlabs, Inc., a software and BPO services company to build a managed cloud platform that will begin by serving oil and gas customers in Canada. The service will be providing what Marlabs describes as “a completely customizable suite of cloud services, delivered within the footprint of a client’s private network with three core elements—a virtual data center in a box, cloud enablement, and custom application mobility services.”

Fossen and Holden claim that the challenges for oil and gas in the cloud are the same as in other areas but the key difference is the scope and intensity of some of the core challenges. They claim that the volume and value of hard-won proprietary data, trade secrets, process details and the like are all magnified in an industry with so much competition.

With regards to the public vs. private cloud debate, private models or limited tenancy (semi-public) set-ups are the norm mainly due to the security concerns mentioned earlier.  In addition to the privacy issues, there are cross-border regulatory concerns that come into play when using the larger public cloud service providers.  

They say that another area of concern for oil and gas in the public cloud model is availability and response time and in a lot of cases, the time sensitive nature of the data being processed.  With such a dependence upon stringent response and availability targets as well as the need for iron-clad high speed continuance and recovery options the private cloud option is a much better fit for addressing these needs while still achieving some of the key efficiency & profitability benefits of the cloud.  

One of the other challenges they pointed is recognizable, if not predictable, to anyone experimenting with HPC clouds—latency. The two oil and gas experts claimed that there are several factors compounding the mere issue of speed. Rapid growth of information requires some agility in terms of delivery and collaboration across borders, which constraints systems. This is coupled with a problem that is more industry-specific as the computation can take place in remote, inhospitable environments. They claim that this is one of the keys to their announcement; they can take advantage of Rigstar’s broadband infrastructure to mitigate latency issues and utilize Marlabs’ expertise in sustaining a platform that has been purpose-built with these very problems in mind.

They also noted that there is another challenge for this industry in particular as it looks to the cloud. There is a cultural resistance within the oil and gas industry to move to a service-based solution versus building and owning the infrastructure (i.e. keeping versus losing the perceived control). To counter this, however, they say that what is many times ignored in such arguments is that the long term impact of managing and maintaining those systems. The impact that ongoing opex has on ROI and TCO is undervalued and as a result, the other issues they identified are added to the list of problems with the oil and gas industry’s cloud model.

As the two told us, like every other industry there is an increased demand for cost-efficiency and heightened ROI expectations especially in relation to new ventures and remote exploration start-ups.  Cloud based IT services offer an immediacy of access (off-the-shelf delivery) with known price points taking a lot of the guesswork out of those types of activities.  On the fly, mobile access to computational power and centralization of those resources into standardized, monitored environments is another key selling point.  It’s a lot easier to open a remote well when all you need is a thin-client or even a tablet and a network connection to commence business activities.

According to both Fossen and Holden, the low hanging fruit of easily accessible reservoirs is long gone in oil and gas. They claim that today’s exploration and extraction activities center on massive volumes of data involved in complex multi-dimensional reservoir modeling, monitoring and maintenance of advanced extraction equipment and other resource intense activities.  To perform these activities in real-time in remote corners of the world requires a combination of scalable high performance computational power and reliable, “big pipe” delivery infrastructure.

The key to designing cloud solutions for these “computational wildebeests” is in establishing adaptive clusters that can dynamically allocate processor cores on demand within a static pool of resources (as is the case in a private cloud environment).  The flexibility provided by large multi core processor OEM’s in combination with a robust virtual machine environment is critical to success in this area.

The two told us that there are times when indeed, despite any favorable arguments, clouds are not a good fit for oil and gas. As they told us in our email interview, “If your culture is not a collaborative, lean-forward environment then cloud computing is definitely not the right place for you to land.   If you have a heavy reliance on legacy systems you are in for a world of hurt trying to make those applications deliverable in the cloud.  It is not just a simple matter of creating some API’s and calling it a day.  Most of these systems are not SOA compliant and will require significant upstream and downstream re-development and testing before they can play in the cloud.  Getting your return out of that amount of development investment can be challenging.”

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

DDN Enables 50TB/Day Trans-Pacific Data Transfer for Yahoo Japan

December 6, 2016

Transferring data from one data center to another in search of lower regional energy costs isn’t a new concept, but Yahoo Japan is putting the idea into transcontinental effect with a system that transfers 50TB of data a day from Japan to the U.S., where electricity costs a quarter of the rates in Japan. Read more…

By Doug Black

Infographic Highlights Career of Admiral Grace Murray Hopper

December 5, 2016

Dr. Grace Murray Hopper (December 9, 1906 – January 1, 1992) was an early pioneer of computer science and one of the most famous women achievers in a field dominated by men. Read more…

By Staff

Ganthier, Turkel on the Dell EMC Road Ahead

December 5, 2016

Who is Dell EMC and why should you care? Glad you asked is Jim Ganthier’s quick response. Ganthier is SVP for validated solutions and high performance computing for the new (even bigger) technology giant Dell EMC following Dell’s acquisition of EMC in September. In this case, says Ganthier, the blending of the two companies is a 1+1 = 5 proposition. Not bad math if you can pull it off. Read more…

By John Russell

AWS Embraces FPGAs, ‘Elastic’ GPUs

December 2, 2016

A new instance type rolled out this week by Amazon Web Services is based on customizable field programmable gate arrays that promise to strike a balance between performance and cost as emerging workloads create requirements often unmet by general-purpose processors. Read more…

By George Leopold

AWS Launches Massive 100 Petabyte ‘Sneakernet’

December 1, 2016

Amazon Web Services now offers a way to move data into its cloud by the truckload. Read more…

By Tiffany Trader

Weekly Twitter Roundup (Dec. 1, 2016)

December 1, 2016

Here at HPCwire, we aim to keep the HPC community apprised of the most relevant and interesting news items that get tweeted throughout the week. Read more…

By Thomas Ayres

HPC Career Notes (Dec. 2016)

December 1, 2016

In this monthly feature, we’ll keep you up-to-date on the latest career developments for individuals in the high performance computing community. Read more…

By Thomas Ayres

Lighting up Aurora: Behind the Scenes at the Creation of the DOE’s Upcoming 200 Petaflops Supercomputer

December 1, 2016

In April 2015, U.S. Department of Energy Undersecretary Franklin Orr announced that Intel would be the prime contractor for Aurora: Read more…

By Jan Rowell

Ganthier, Turkel on the Dell EMC Road Ahead

December 5, 2016

Who is Dell EMC and why should you care? Glad you asked is Jim Ganthier’s quick response. Ganthier is SVP for validated solutions and high performance computing for the new (even bigger) technology giant Dell EMC following Dell’s acquisition of EMC in September. In this case, says Ganthier, the blending of the two companies is a 1+1 = 5 proposition. Not bad math if you can pull it off. Read more…

By John Russell

AWS Launches Massive 100 Petabyte ‘Sneakernet’

December 1, 2016

Amazon Web Services now offers a way to move data into its cloud by the truckload. Read more…

By Tiffany Trader

Lighting up Aurora: Behind the Scenes at the Creation of the DOE’s Upcoming 200 Petaflops Supercomputer

December 1, 2016

In April 2015, U.S. Department of Energy Undersecretary Franklin Orr announced that Intel would be the prime contractor for Aurora: Read more…

By Jan Rowell

Seagate-led SAGE Project Delivers Update on Exascale Goals

November 29, 2016

Roughly a year and a half after its launch, the SAGE exascale storage project led by Seagate has delivered a substantive interim report – Data Storage for Extreme Scale. Read more…

By John Russell

Nvidia Sees Bright Future for AI Supercomputing

November 23, 2016

Graphics chipmaker Nvidia made a strong showing at SC16 in Salt Lake City last week. Read more…

By Tiffany Trader

HPE-SGI to Tackle Exascale and Enterprise Targets

November 22, 2016

At first blush, and maybe second blush too, Hewlett Packard Enterprise’s (HPE) purchase of SGI seems like an unambiguous win-win. SGI’s advanced shared memory technology, its popular UV product line (Hanna), deep vertical market expertise, and services-led go-to-market capability all give HPE a leg up in its drive to remake itself. Bear in mind HPE came into existence just a year ago with the split of Hewlett-Packard. The computer landscape, including HPC, is shifting with still unclear consequences. One wonders who’s next on the deal block following Dell’s recent merger with EMC. Read more…

By John Russell

Intel Details AI Hardware Strategy for Post-GPU Age

November 21, 2016

Last week at SC16, Intel revealed its product roadmap for embedding its processors with key capabilities and attributes needed to take artificial intelligence (AI) to the next level. Read more…

By Alex Woodie

SC Says Farewell to Salt Lake City, See You in Denver

November 18, 2016

After an intense four-day flurry of activity (and a cold snap that brought some actual snow flurries), the SC16 show floor closed yesterday (Thursday) and the always-extensive technical program wound down today. Read more…

By Tiffany Trader

Why 2016 Is the Most Important Year in HPC in Over Two Decades

August 23, 2016

In 1994, two NASA employees connected 16 commodity workstations together using a standard Ethernet LAN and installed open-source message passing software that allowed their number-crunching scientific application to run on the whole “cluster” of machines as if it were a single entity. Read more…

By Vincent Natoli, Stone Ridge Technology

IBM Advances Against x86 with Power9

August 30, 2016

After offering OpenPower Summit attendees a limited preview in April, IBM is unveiling further details of its next-gen CPU, Power9, which the tech mainstay is counting on to regain market share ceded to rival Intel. Read more…

By Tiffany Trader

AWS Beats Azure to K80 General Availability

September 30, 2016

Amazon Web Services has seeded its cloud with Nvidia Tesla K80 GPUs to meet the growing demand for accelerated computing across an increasingly-diverse range of workloads. The P2 instance family is a welcome addition for compute- and data-focused users who were growing frustrated with the performance limitations of Amazon's G2 instances, which are backed by three-year-old Nvidia GRID K520 graphics cards. Read more…

By Tiffany Trader

Think Fast – Is Neuromorphic Computing Set to Leap Forward?

August 15, 2016

Steadily advancing neuromorphic computing technology has created high expectations for this fundamentally different approach to computing. Read more…

By John Russell

The Exascale Computing Project Awards $39.8M to 22 Projects

September 7, 2016

The Department of Energy’s Exascale Computing Project (ECP) hit an important milestone today with the announcement of its first round of funding, moving the nation closer to its goal of reaching capable exascale computing by 2023. Read more…

By Tiffany Trader

HPE Gobbles SGI for Larger Slice of $11B HPC Pie

August 11, 2016

Hewlett Packard Enterprise (HPE) announced today that it will acquire rival HPC server maker SGI for $7.75 per share, or about $275 million, inclusive of cash and debt. The deal ends the seven-year reprieve that kept the SGI banner flying after Rackable Systems purchased the bankrupt Silicon Graphics Inc. for $25 million in 2009 and assumed the SGI brand. Bringing SGI into its fold bolsters HPE's high-performance computing and data analytics capabilities and expands its position... Read more…

By Tiffany Trader

ARM Unveils Scalable Vector Extension for HPC at Hot Chips

August 22, 2016

ARM and Fujitsu today announced a scalable vector extension (SVE) to the ARMv8-A architecture intended to enhance ARM capabilities in HPC workloads. Fujitsu is the lead silicon partner in the effort (so far) and will use ARM with SVE technology in its post K computer, Japan’s next flagship supercomputer planned for the 2020 timeframe. This is an important incremental step for ARM, which seeks to push more aggressively into mainstream and HPC server markets. Read more…

By John Russell

IBM Debuts Power8 Chip with NVLink and Three New Systems

September 8, 2016

Not long after revealing more details about its next-gen Power9 chip due in 2017, IBM today rolled out three new Power8-based Linux servers and a new version of its Power8 chip featuring Nvidia’s NVLink interconnect. Read more…

By John Russell

Leading Solution Providers

Vectors: How the Old Became New Again in Supercomputing

September 26, 2016

Vector instructions, once a powerful performance innovation of supercomputing in the 1970s and 1980s became an obsolete technology in the 1990s. But like the mythical phoenix bird, vector instructions have arisen from the ashes. Here is the history of a technology that went from new to old then back to new. Read more…

By Lynd Stringer

US, China Vie for Supercomputing Supremacy

November 14, 2016

The 48th edition of the TOP500 list is fresh off the presses and while there is no new number one system, as previously teased by China, there are a number of notable entrants from the US and around the world and significant trends to report on. Read more…

By Tiffany Trader

Intel Launches Silicon Photonics Chip, Previews Next-Gen Phi for AI

August 18, 2016

At the Intel Developer Forum, held in San Francisco this week, Intel Senior Vice President and General Manager Diane Bryant announced the launch of Intel's Silicon Photonics product line and teased a brand-new Phi product, codenamed "Knights Mill," aimed at machine learning workloads. Read more…

By Tiffany Trader

CPU Benchmarking: Haswell Versus POWER8

June 2, 2015

With OpenPOWER activity ramping up and IBM’s prominent role in the upcoming DOE machines Summit and Sierra, it’s a good time to look at how the IBM POWER CPU stacks up against the x86 Xeon Haswell CPU from Intel. Read more…

By Tiffany Trader

Beyond von Neumann, Neuromorphic Computing Steadily Advances

March 21, 2016

Neuromorphic computing – brain inspired computing – has long been a tantalizing goal. The human brain does with around 20 watts what supercomputers do with megawatts. And power consumption isn’t the only difference. Fundamentally, brains ‘think differently’ than the von Neumann architecture-based computers. While neuromorphic computing progress has been intriguing, it has still not proven very practical. Read more…

By John Russell

Dell EMC Engineers Strategy to Democratize HPC

September 29, 2016

The freshly minted Dell EMC division of Dell Technologies is on a mission to take HPC mainstream with a strategy that hinges on engineered solutions, beginning with a focus on three industry verticals: manufacturing, research and life sciences. "Unlike traditional HPC where everybody bought parts, assembled parts and ran the workloads and did iterative engineering, we want folks to focus on time to innovation and let us worry about the infrastructure," said Jim Ganthier, senior vice president, validated solutions organization at Dell EMC Converged Platforms Solution Division. Read more…

By Tiffany Trader

Container App ‘Singularity’ Eases Scientific Computing

October 20, 2016

HPC container platform Singularity is just six months out from its 1.0 release but already is making inroads across the HPC research landscape. It's in use at Lawrence Berkeley National Laboratory (LBNL), where Singularity founder Gregory Kurtzer has worked in the High Performance Computing Services (HPCS) group for 16 years. Read more…

By Tiffany Trader

Micron, Intel Prepare to Launch 3D XPoint Memory

August 16, 2016

Micron Technology used last week’s Flash Memory Summit to roll out its new line of 3D XPoint memory technology jointly developed with Intel while demonstrating the technology in solid-state drives. Micron claimed its Quantx line delivers PCI Express (PCIe) SSD performance with read latencies at less than 10 microseconds and writes at less than 20 microseconds. Read more…

By George Leopold

  • arrow
  • Click Here for More Headlines
  • arrow
Share This