Executive Report

Six Key Steps to Obtain Better Geophysical Data Analysis and Operations in Data Centers

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The energy industry strives to meet ever-increasing demand while IT leaders seekopportunities for greater efficiency.

The Oil and Gas Industry Stands at a Crossroads

On one hand, global demand for energy has never been higher. On the other, unstable

markets, variable oil prices and rising pressure from government and environmental

groups are creating major challenges for the enterprise. The demand for state-of-the-art

geophysical analyses is required to meet goals, and maintain efficiency.

Both trends have spawned technological improvements that demand nearly real-time

consumption of information and generate vast amounts of data. How oil and gas

companies manage the collection, storage, retrieval and growth of this data will

be a primary success factor moving forward.

Oil and Gas Technology Advances Have Produced an Explosion of DataCompetitive pressure to locate new sources of oil and gas has produced powerful

information technology (IT) innovations and, subsequently, a data explosion. Take

geostatistical software, for example. To achieve the best fluid dynamics simulation

within a reservoir, oil and gas companies rely on increasingly sophisticated reservoir

characterization software and tools.

Geostatistical software is used to accurately capture and visualize complexities while

providing updated models for flow simulation use. As the software becomes more

sophisticated, the resulting data increases exponentially and is vastly more cumber-

some to manage with conventional computing resources.

Chief information officers (CIOs) need robust infrastructures to handle the unique IT

challenges of the oil and gas industry. Extremely high server densities, ample storage

capabilities and complex network architectures are just a few of the components

needed to support every geophysical analysis stage.

Oil and gas companies require cost-efficient, advanced data center strategies to

address the data explosion taking place within their industries. As computing hardware

becomes denser to allow the processing of more data, the equipment requires even

more power and cooling. In many cases these enhancements cost twice as

much as the equipment itself.

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Technology Now a Primary Business DriverMIT Technology Review published a piece on how innovation is bringing some very

big changes, notably in the areas of how the use of big data is impacting practices in

the industry. Then there was a highly technical paper presented at an conference, both

in 2015, on the use of new 3D seismic technology to optimize exploration and drilling

practices in the field.1

During the next few years, these companies will analyze various oil and gas

businesses and identify the best candidates to invest in for future profits. As this

trend unfurls, IT innovation will be a deciding factor in which companies receive

funding and which companies the investment community leaves behind.

With oil and gas investors identifying IT functionality as a key strategic asset for

technology must be viewed as a business enabler and not just a background solution

that facilitates operations.

In response to these demands, oil and gas companies will face the critical decision

to build or outsource data center construction. This decision forces them to work

outside of their core competency and divert resources to IT that could otherwise

go toward drilling efforts. This is problematic because handling the data and

applications associated with geostatistical analysis requires high-density server

environments, advanced cooling architectures and “… network capabilities that

can transmit critical real-time information between drilling sites and data centers.”

The Volume and Speed of Data Access in Geostatistical AnalysisOil and gas companies face major IT challenges when the importance of geophysical

testing converges with investors’ increasing emphasis on IT. Vital functions include

tracking seismic activity, simulating fluid dynamics in a reservoir, completing

geostatistical modeling processes, and applying sequence stratigraphic principles.

Because testing is becoming more complex and is conducted more frequently, oil and

gas CIOs are managing staggering quantities of data between data centers and field

A snapshot of data collected during seismic data processing.

1 Forbes.com/ SEP 23, 2015, Innovation Thrives In The Oil & Gas Industry

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workers. This creates major challenges within the data center.

The initial exploratory process presents major stumbling blocks. The seismic analysis

performed during this period hinges on effective seismic data integration, for example,

and ensures the accurate collection of information regarding the scope, continuity and

core dynamics pertaining to seismic regions.

In many cases, the process requires almost instant access to dozens of terabytes (and

often more), and creates challenges even greater than those associated with analyzing

mature oil and gas reservoirs.

Exacerbating the challenge is the fact that the data must be transmitted faster and

delivered to recipients in real time. Such data-related challenges are furthered by the

need to clearly visualize the information on highly specialized field equipment that

allows for rapid analysis and accurate interpretation of geological conditions. To achieve

that goal, companies must send parallel packets of information into visualization tools

with a level of detail and clarity that field workers can use to make intelligent drilling

decisions.

Colocation Decisions Align Closely with Revenue Generation Performing geostatistical analysis is a key revenue generator in the oil and gas industry.

Increased political and geological risks are pushing companies to more accurately

ascertain the material output of drilling sites. To ensure consistent revenue and drilling

projections, oil and gas companies complete geostatistical analysis on both early

development locations and mature reservoirs – a competency area where data

accuracy can be limited.

Information analysis is built around gathering as much information as possible with

reasonable precision, and then using that information to develop sensible reservoir

oil and gas yield estimates. Accuracy and efficiency during this process are attained

through rapid interconnects between offshore wells and data centers, optimized data

flow, and access to real-time data.

Advanced data center application and hardware systems help oil and gas companies

gain high-performance data analysis, storage and delivery – all of which contribute to

optimized procedures that align with business needs. Increasingly, major oil and gas

organizations turn to leading enterprise colocation vendors to provide not only space,

power and cooling for their mission-critical data, but also expedient interconnects

between field and data center locations or between data centers.

Colocation is when a business rents space for servers and other computing

hardware. A data center company provides the building, cooling, power, bandwidth

and physical security, while the customer provides servers and storage. Colocation

offers oil and gas companies more than just an easier way to gain access to an

interconnect infrastructure; it also reduces costs and enables new levels of

network flexibility and security.

Oil and Gas CIOs Feel the Pressure of High Performance Demands

Geostatistical requirements have made the data center a major priority for oil and gas companies.

With the successful management and transmission of geostatistical data of such premium importance, the logical step for many CIOs is to manage the process themselves.

While self-control of operations can work in some circumstances, this strategy pulls resources away from other operational needs. Turning to a colocation provider, on the other hand, can give oil and gas companies access to future-proof data center systems that can not only meet their operational needs, but also give them a strategic edge in geostatistical analysis and other geophysical processes.

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Advantages of Colocation and Third-Party Data Center ServicesColocation’s performance benefits are considerable and difficult to ignore.

Geostatistical analysis systems and other oil and gas-related IT solution hosting

depend on a high-density server environment capable of processing large quantities

of data and supporting incredibly complex applications.

High-density servers are difficult to configure, manage and maintain. However,

a potentially greater challenge is offering the resources needed to foster a

high-density computing environment.

When taking a strategic view of the data center – and factoring in the power, cooling

and interconnectivity requirements – many oil and gas CIOs are finding colocation

is the best choice.

In fact, many are already leveraging colocation as a way to mix and match data

centers; maximize their content delivery networks; and deliver data in a much faster,

efficient manner.

Demanding Power RequirementsThe data center’s core purpose is to provide the power and cooling infrastructure

needed to keep servers healthy and working at peak capacity. High-density servers

often feature multiple processors with multiple central processing unit (CPU) cores.

The machines’ sophisticated and powerful nature creates an environment in which

electricity consumption can skyrocket due to server, storage system, network

equipment and cooling infrastructure power consumption.

Having an extremely efficient, redundant and resilient power setup is therefore

essential for data centers serving oil and gas companies.

High-Density EnvironmentsThe potential for heat-related problems within components is substantial in a

high-density server environment. The data center infrastructure required to support

high-density server environments must be able to handle the increased watts per

square foot. Typically, high-performance computing systems require at least

250 watts per square foot of data center infrastructure support. As a result, efficient

cooling architectures must be combined with robust management tools that identify

any hot spots and notify data center managers, who can respond to the problem and

improve airflow before equipment failure occurs.

When supporting geostatistical analysis applications, equipment failure could mean the

loss of terabytes of data, contributing to major revenue consequences down the line.

Having the power, cooling and management infrastructure in place to prevent these

systemic failures is vital for oil and gas companies.

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State-of-the-Art Equipment, Facilities and ConnectivityToday’s oil and gas CIOs are thinking about big data, real-time data connections,

interconnection among business partners and customers, and myriad other data-related

issues. CyrusOne’s interconnected data centers not only provide the right level of power,

cooling and security, but they also assuage many of the challenges plaguing today’s oil

and gas IT departments.

Company-owned servers that were previously refreshed only every five years, for

example, are replaced semiannually by state-of-the-art servers requiring a power and

cooling architecture designed specifically for that piece of equipment’s computing

specifications.

High-quality colocation facilities can deftly manage frequent shifts in the hardware

configuration without experiencing availability or power issues.

While the core facility capabilities offered by colocation providers make them an optimal

choice for oil and gas companies, the data distribution functionality may be just as

important.

CyrusOne colocation facilities are built to ensure rapid data delivery over fiber-optic

cabling infrastructure from the central location to global information distribution centers.

With the CyrusOne National Internet Exchange (IX), oil and gas companies obtain the

robust, low-latency connectivity needed to transfer huge data files to help them make

strategic decisions in a timely manner.

Environmentally EfficientIn an industry like oil and gas, sustainable data center operations can make a company

stand out for all the right reasons.

Combined, all of the above factors simplify the data center landscape dramatically

for the CIO who, in attempting to build a private data center, grapples with performance

issues, future-proofing, network and sustainability considerations, and staffing

management. Colocation providers can completely alleviate these burdens and let

CIOs focus as many resources as possible on the core competencies that drive

business success, gaining the positive attention of investors, regulatory bodies and

environmental groups.

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SummaryMore and more Fortune 500 leaders are counting on colocation as the best way to scale

IT infrastructure, reduce capital expenses, and allocate more resources on their core

business to enable growth.

Optimized for high-value seismic processing equipment for oil and gas companies,

CyrusOne’s colocation facilities feature best-in-class data center power systems,

redundant cooling architectures and unparalleled IX capabilities.

CyrusOne’s Seismic IX (based in Houston), together with the CyrusOne National IX

platform, enables customers to seamlessly share information with business partners,

content providers, networks, carriers and other entities.

Oil and gas companies may have historically been required to own their own data

centers to meet specialized needs, but colocation now offers functionality, savings

and interconnectivity to enable oil and gas CIOs to focus on using IT resources to

drive business growth, rather than just keep the lights on.

Single consolidated data center• With all of the eggs in one basket,

harden the basket.

Three or more data centers• Active – Active – Passive

• Active – Active – Active

Two data centers• Active – Passive

• Active – Active

Data Center Options

CINCINNATIMETRO

NEW YORKMETRO(coming soon)

PHOENIX

AUSTIN

DALLAS

HOUSTONSAN

ANTONIO

NORTHERNVIRGINIA

CHICAGO

ER-004-2016 | © 2016 CyrusOne Inc. CyrusOne Enterprise Data Centers | 855-564-3198 | CyrusOne.com

About CyrusOneCyrusOne specializes in providing highly reliable, flexible and scalable enterprise data

center colocation that meets the specific needs of customers across its broad portfolio

of carrier-neutral data center facilities in the United States, Europe and Asia. CyrusOne

employs its Massively Modular® engineering and design approach to optimize design

and construction materials sourcing and enable just-in-time data hall inventory to

meet customer demand. The company engineers its facilities with redundant power

technology, including an available 2N architecture.

CyrusOne customers can mix and match data centers to create their own production

and/or disaster recovery platforms by combining facilities via the low-cost, robust

interconnectivity provided by the CyrusOne National Internet Exchange (IX).

About the AuthorVince FavaDirector of Solutions Engineering

Vince Fava is responsible for Sales Engineering and Customer Implementations at

CyrusOne. Prior to joining CyrusOne, he served JPMorganChase for 26 years in various

technology roles, most notably as Director of Data Center Technologies for the Southern

and Eastern United States, overseeing the consolidation of 22 data centers into 12 mega

centers.

Vince received his diploma in Computer Technology, Programming and System Design

from New York University in 1983. He received an Honorable Discharge from the United

States Army in 1980 where he maintained a Top Secret Signal Intelligence security

clearance while working for Intelligence and Security Command, formerly the Army

Security Agency.