“We were looking at why employees on the contractors side weren’t coming to our (10-day Operations Course), whereas 10-15 years ago probably 50% of the class were from the contractors,” said Bill Murchison Jr, an instructor at MDS.

Sam Sirman, who joined MDS in February this year as a lead instructor and has 27 years of experience working for drilling contractors, pointed out that it’s simply too difficult for contractors – drillers and ADs – to get away for 10 days. Scheduling two weeks away from work is tough even under normal circumstances, but during these times of high rig activity and personnel shortage, a 10-day course often becomes unworkable. Therefore the five-day course was created.

According to Mr Murchison, MDS expects to hold its first Drillers Course in the coming months, likely in Singapore. They plan to have 12-15 students in each class, though they can fit in 20-25.

Underscoring the need for more driller/AD training is the fact that rapid promotions are becoming more common with drilling crews, he noted, with some employees going into drillers positions within a year.

It’s been reported that the average kick size in the Gulf of Mexico is 50 bbl, he said. “That’s extremely large. And who is responsible for catching those kicks? The driller.” Inexperienced crews can lead to serious problems on rigs, and rather than having micromanagement from corporate offices, it’s better to train employees well and put qualified people onto the rigs.

Topics covered in the Drillers Course include drill string design, stuck pipe, freeing techniques, hydraulics, shallow gas, tripping practices, well control red flags and transition zone indicators, mud solids, trends, casing and cementing, lost circulation and associated problems, abnormal pressure, shales, and gas cap drilling. Students who go through the course will have “a better understanding of the whole drilling process and will be able to handle problems much more effectively,” Mr Murchison said.

An optional sixth day can be added to the course to cover topics such as BOP equipment or pre-spud meetings.

Earlier this year MDS began offering its WellCAP-certified five-day Supervisory-Level Well Control Course. A new well control center also has been added to its training facility in Albuquerque, N.M.

Additionally, Mr Murchison noted that MDS is planning to offer new courses on deepwater drilling and dynamic positioning operations. The need is there for this kind of training, he said, especially with the newbuilds already starting to come out and those still under construction.

Rather than going back to Scotland, the adventurous couple set their sights more than 10,000 miles away and headed Down Under in 1974. Once they arrived, they fell in love with the “friendly people and wide, open spaces” and never looked back. “We’re well and truly Aussies now,” said Mr Morrow, a manager of Atwood Oceanics in Australia.

After six years with a local dredging company, he got his start in the oil business when he answered a recruiting ad by Woodside Energy. In 1980, the company was just starting its North West Shelf gas project and was cranking up construction on its first big gas platform, pipelines, onshore facilities, etc. Mr Morrow got involved in the planning and construction of the North Rankin A platform, to this day one of the world’s largest offshore gas-producing facilities.

After the initial construction phase, he decided to move into the operations side, though he recalls that it was “a bit of a step out of my comfort zone at the time.” Good thing he took that step, though, because it introduced him to drilling and gave him the experience he’d need for his future career with Atwood Oceanics.

By 1990, Mr Morrow had left Woodside and taken a management position at a construction and engineering company. Then he bumped into an Atwood manager he had met while with Woodside, and the run-in led to a job offer. “And then suddenly I was working for Atwood,” he said. “There was quite a bit of serendipity there.” He has been with Atwood since May 1990.

NEW PHASE

After joining Atwood, however, Mr Morrow found himself once again working for Woodside. Atwood had just won a contract with the operator to design and build the drilling rig for their new Goodwyn A platform. After the rig construction and commissioning, he became operations manager – first for new Goodwyn A drilling, then for further drilling on the North Rankin A platform that he had helped to build years before. The Atwood crews began drilling in 1994 and continued together for seven year on those two platforms.

“The team made some great achievements together,” Mr Morrow said. Not only did they drill many highly challenging and highly deviated wells, they even set an offshore drilling record in 2001 with a 27,524-ft step-out on an extended-reach well (measured depth 30,440 ft). On the safety side, the crews received the Atwood President’s Safety Award, which recognizes an entire year of operations without a lost-time injury, for four consecutive years.

Personal successes were gratifying as well, as Mr Morrow watched some of his crew members join the industry as inexperienced roustabouts and gradually work their way up to driller. “I felt extremely lucky to be around great people with enormous capacity, whether it was my task to work for them, with them or to lead them,” he said.

Mr Morrow and his wife have two daughters, Debbie and Kate. And just to keep it in the family, Debbie has followed her dad’s footsteps into the oil and gas business – working for Woodside.

CHALLENGES

Today, Mr Morrow has moved into a broader role in support of Atwood’s operations in Australia. Since 2004 he has also served as chairman of the IADC Australasia Chapter, working with his drilling contractor peers in the region to address common challenges. This continues the commitment to and involvement in IADC by a large number of Atwood employees over many years, including Atwood president and CEO John Irwin, who served as IADC chairman in 2000.

One challenge faced by the Australasia Chapter has been the formation of the National Offshore Petroleum Safety Authority (NOPSA) in 2005, which has brought “significant changes to the way the Australian offshore oil and gas industry is regulated,” he said. This new national body unified offshore safety regulations, previously managed separately by each Australian state. The IADC Australasia Chapter has spent significant time responding to and handling these changes, he said.

Another challenge, he said, is one that the worldwide drilling industry faces together – a shortage of qualified personnel. “We have three times as many offshore rigs in the Australia/New Zealand region as we’ve ever had before, and most are under long-term contracts,” he said. While this has obviously put the labor pool under a big strain, the longer-term contracts have also created a training opportunity for drilling crews. Drilling contractors can now look out three or four years ahead, and this has enabled Atwood to implement an apprenticeship program. Apprentices who complete the program can earn a mechanical or electrical trade qualification.

“In days gone by, we were lucky if we could look six months ahead with any certainty. Now we can take good candidates, old or new, and work with them in the longer term,” Mr Morrow said. “We need to transfer knowledge to the next generation and create the crews for the decades to come before the old crew signs off.”

Mark Burns has joined ENSCO to serve as president of ENSCO Offshore International Co, an international operating subsidiary of the company.

To be based at ENSCO’s Dallas headquarters, he will replace Paul Mars, who is retiring effective 2 July 2008. Mr Burns was previously vice president and division manager of Noble Drilling, responsible for managing Noble’s offshore units in the US Gulf of Mexico. He holds a Bachelor of Arts degree in business and political science from Sam Houston State University.

Mr Burns served as chairman of IADC’s North Sea Chapter in 2004, and in 2007 he was named IADC Contractor of the Year. He is a SPE member and served as an Advisory Committee member for the SPE/IADC Drilling Conferences in 2003 and 2005.

M-I Swaco opens offshore facility to serve deepwater GOM

M-I Swaco recently opened a new offshore facility in Cameron, La., replacing the long-time facility destroyed in 2005 by Hurricane Katrina.

The new supply base has been relocated from the previous location it occupied since 1958 at the Calcasieu Ship Channel at the only deepwater port left in Cameron. The new plant, one of the largest that M-I Swaco operates on the Gulf Coast, has total mixing capacity of 4,000 bbl of water-base, synthetic-base and oil-base drilling fluids and storage capacity of 39,000 bbl.

The company has worked to ensure the plant and associated faciliites will remain intact during future storms, such as constructing a deflection wall around the tank farm. Also, the totally electric-powered facility has been upgraded to better prepare for shutdown during hurricane evacuation.
“The new Cameron facility is strategically positioned to service the needs of our customers in the expanding western Gulf of Mexico deepwater market,” said Joe Bacho, senior vice president of the North America Business Unit.

Schlumberger signs deal with Hess

Schlumberger has signed an agreement with Hess Corp to provide geological, geophysical, reservoir engineering, economics, drilling and production software. The agreement also includes data management services and enhanced application and workflow support. Hess will deploy GeoFrame reservoir characterization, Petrel seismic to simulation, ECLIPSE reservoir simulation, Merak project economics, as well as OFM and Drilling Office softwares.

Halliburton to buy WellDynamics

Halliburton has entered into a definitive agreement with Shell Technology Ventures Fund 1 B.V. to acquire its 49% equity interest in WellDynamics. Following completion of the transaction, Halliburton will own 100% of WellDynamics.

Weatherford wins contracts from StatoilHydro

Weatherford International announced it was awarded two separate contracts for reservoir monitoring systems by StatoilHydro. They will be carried out over the next eight years. Technologies covered in the contracts include advanced downhole optical monitoring equipment, including pressure and temperature sensing systems and downhole multiphase flow measurement for platform and subsea wells.

Dickerson promoted to Diamond CEO

Diamond Offshore announced that Lawrence R Dickerson, formerly president and chief operating officer of the company, has been named president and chief executive officer. James S Tisch will remain as chairman. Mr Dickerson has been with the company since 1979 and became president/COO in 1998.

New VPs at Atwood

Atwood Oceanics has promoted Alan Quintero to senior vice president – operations. Barry Smith was promoted to vice president – technical services, and Randal Presley was promoted to vice president – administrative services.
Newman advances to

Transocean president, COO

Transocean has named Steven L Newman as its president and chief operating officer. He replaces Jon A Marshall, who announced plans to retire earlier this year. Mr Newman has served as Transocean’s executive vice president of performance since late 2007. Additionally, Transocean named Rob Saltiel as executive vice president for performance. He previously served as senior vice president of the North and South America unit.

Mody is new BOT VP-technology

Rustom Mody has been promoted to vice president – technology for Baker Oil Tools. He has held several positions with Baker Hughes since joining the company in 1987.

Cameron to supply subsea system

Cameron has been awarded a contract from Stena Drilling for a subsea drilling system to be used on the recently ordered Stena DrillMax IV, an ice class, dynamically positioned drillship. The subsea drilling system includes a subsea BOP stack, subsea controls, drilling riser and choke manifold.

NOV showcases technical college in Houston

National Oilwell Varco held a customer open house to showcase its new technical college and training center for the Rig Solutions division on 2 June in Houston. The center is part of the NOV Technical College program, intended to grow NOV’s capability to meet demand from the new rig construction backlog.

Locations for the Technical College have been established in Kristiansand, Norway, and Houston, with an additional center in Singapore planned for later this year. Students are being sourced from area technical colleges, university graduates, mechanical and electrical technicians from other industries and returning servicemen from the military. The curriculum duration and scope for these students runs from 6-12 months based on the specific competency of the discipline. NOV plans to double its service, installation and commissioning technicians over the next 24 months.

The 33,600-sq-ft Houston facility also will house NOV’s customer training courses for production operations and maintenance classes, which trained more than 2,000 customers in 2007 and is expected to train more than 3,000 customers in 2008.

Helix begins building new spoolbase in Texas

Helix Energy Solutions Group has broken ground on construction of a new spoolbase facility and service complex to support its Gulf of Mexico operations. The facility will be constructed on the La Quinta Channel in Ingleside, Texas, 15 miles east of Corpus Christi. The 120-acre base is expected to be completed in mid-2009.

Enventure adds technical sales members

Enventure International has added two senior technical sales advisers, Richard Craig and Mervyn Newberry, to its European sales team in Aberdeen, UK. They will be responsible for optimizing applications of Enventure’s SET technology, with Mr Craig in the Danish and Norwegian markets and Mr Newberry in Continental Europe and the UK.

Doyle’s Valves hires national sales manager

Doyle’s Valves has hired Jeff Chaapel Jr as national sales manager. He has more than 11 years of experience in drilling/environmental solutions and waste management industry. At Doyle, he will be responsible for developing and managing the company’s sales force and securing strategic alliances with drilling contractors and suppliers.

waySmart aims to improve driver behavior, safety

To improve driver safety, inthinc has introduced waySmart 820 RTS (Real Time Safety), a solution designed to create immediate improvements in driving behavior of commercial fleet drivers. Real-time, in-cab alerts are delivered to drivers to let them know when they are conducting unsafe driving behavior; these alerts prompt them to discontinue actions such as seat belt violations, aggressive driving and speeding. Management can streamline business with access to the fleet’s latest data through the GAIN (Global Access Information Network) web interface. In heavy commercial trucks, waySmart has helped to reduce crashes from 2.63 per million miles to .23, according to inthinc.

Well Control School releases web-based training program

Well Control School has released its IADC-certified SYSTEM 21 Web-Based Well Control Training Program. This emerging technology allows well control training to be online 24/7/365, with global access. It offers competency-based courses in drilling, workover/completion, well servicing (coiled tubing, snubbing and wireline) in surface and subsea stack.

Landmark’s R5000 offers new levels of integration

Landmark, a product service line of Halliburton, has launched R5000, a synchronous software release including upgrades to more than 70 products spanning all disciplines within the E&P lifecycle. The launch offers operators unprecedented levels of integration, the potential to customize workflows and the opportunity to make more informed field development decisions. “We listened to our customers when creating these technology solutions, ensuring that they directly address the complex challenges exploration and production companies face,” said Chris Usher, Landmark’s senior director of technology.

GE Energy launches Sondex Ultrawire Formation Logging Tools

GE Energy’s Oilfield Technology business, which incorporates the recent Sondex acquisition portfolio, has launched its new Sondex Ultrawire Formation Logging Tools (U-FLT). It is the only industry-accepted open hole system available for direct purchase to customers worldwide. The system offers the integration of high-end formation evaluation sensors into turnkey systems.

Thern offers new air tugger with TA10 Big Red Series air winch

Thern has developed its next-generation air tugger with the new TA10 Big Red Series air winch. The TA10 includes a high-capacity air motor to provide higher line pull capacity while maintaining faster line speeds. Performance ratings include 1st layer and full drum load capacities of 37,000 lbs and 21,800 lbs, along with a maximum line speed of 34 fpm. The new series also incorporates reversible band brake and disc brake assemblies and an innovative revolving cable anchor, among other design changes.

Hughes Christensen helped a customer in the Congo accomplish a world-first by utilizing an innovative technique to create an additional slot on a platform in the Foukanda offshore field.

The objective was to simultaneously drill and case off over 60 m (197 ft) of shallow formations using casing while drilling (CwD) to enable the drilling of additional wells from the existing platform, which had no further slot availability. A 30-in. diverter conductor pipe was positioned from the platform to the seabed. The pipe was manufactured with a pre-cut window and a 2° deflector inside that would allow drilling to be diverted from the existing eight directional wells, avoiding any collision.
The recommended drilling assembly consisted of an EZCase 24-in. bit and 20-in. casing rotated using a drive sub. The 66-m (217-ft) section was drilled successfully with returns to the sea. The EZCase bit and 20-in. casing were cemented in place, and the casing was connected to the surface wellhead as usual.

ROP was controlled and averaged 7.5m/hr (24.6 ft/hr) on-bottom drilling, and the bit was drilled out in just over three hours with a 16-in. GTX-CPT311 TCI bit.

Baker Oil Tools installs industry’s first RAM Multilateral System on Alaska’s North Slope

Baker Oil Tools has achieved the first successful installation of a new rotating, self-aligning multilateral (RAM) system on Alaska’s North Slope. The RAM system is the industry’s first tool that can continuously rotate liners and screens into extended-reach lateral bores while simultaneously landing multilateral junctions.

“On Alaska’s North Slope, extended-reach multilateral wells are necessary to ensure maximum contact with trapped oil pools. The RAM System enables operators to efficiently construct long, horizontal multilaterals, a major technical challenge,” said Alex Ortiz, wellbore construction manager for Baker Oil Tools. “The RAM system is an evolutionary tool based on our HOOK Hanger and FORMation Junction technologies.”

On the North Slope, a major operator found that improving recovery from the sand horizon just below the permafrost (3,000-ft depth) required extended-reach multilaterals with horizontal departures of more than 5:1 ratios and liner lengths of more than 8,000 ft. Continuous rotation was necessary to get the drill pipe and liner to total lateral depth in these long horizontal sections.

The RAM system was used to land two multilateral junctions and simultaneously rotate liners to bottom. Liner length of the upper lateral was 8,689 ft, and total depth was 17,035 ft (3,212 ft TVD). All project objectives were met, resulting in the world’s first successful RAM multilateral system and providing an economical option for developing the large viscous oil reserves in Alaska.

Separately, Baker Oil Tools has run and deployed its first hydraulic whipstock in deepwater with a sidetrack well on the Matterhorn platform. Following a competitor’s gravel pack failure, the operator wanted to re-enter the production zone from the same casing. Water depth was 2,800 ft (853 m), and the deviation in the 9 5/8-in. casing at the whipstock setting depth was 61°. The operator also wanted a hydraulic set one-trip system that did not require a cast iron bridge plug. Baker Oil Tools deployed a G2 Hydraulic WindowMaster system and completed the window in 5.5 hours, then drilled 40 ft of additional formation with flawless execution.

INTEQ runs first MagTrak service

Baker Hughes INTEQ recently ran the first MagTrak job in the Utue field in Nigeria. The 8½-in. deviated hole section was drilled using the 6 ¾-in. AutoTrak Rotary Closed Loop System, LithoTrak and MagTrak services. Cutting primarily through shale with intermittent sand, this run drilled 1,727 ft (526.4 m) from 9,206 ft (2,805.9 m) to 10,933 ft (3,332.3 m) measured depth. The client’s primary reason for running this LWD package was to compare the porosity readings of the new MagTrak service with the proven LithoTrak measurements and, if acceptable, qualify the MagTrak tool for future applications. Although real-time communication with the MagTrak system was lost, the tool obtained a complete set of memory data, which compared well with LithoTrak porosity readings.

World’s deepest conventional mooring system installed

Murphy Sabah Oil and partner Petronas Carigali has set a record for installing the world’s deepest conventional mooring system. The companies worked with InterMoor to moor Diamond Offshore’s Ocean Rover semisubmersible on the Buntal exploration well offshore Sabah, East Malaysia.

The rig was moored at depths that required two of the anchors to be set in more than 8,000 ft of water. The deepest leg of the eight-leg conventional mooring system reached 8,431 ft.

Each mooring leg, deployed using the anchor-handling vessels Normand Ivan and Normand Atlantic, consisted of a 10-metric ton Stevpris anchor with the rig’s self-contained wire and chain.

World’s longest extended-reach well drilled offshore Qatar

Transocean’s jackup GSF Rig 127 has set a world record for the longest extended-reach well ever drilled at 40,320 ft (12,289 m) MD with a 35,770-ft (10,902-m) horizontal section. The well was drilled offshore Qatar in 36 days and incident-free. The new record of 7.6 miles is also the first well in the history of offshore drilling that exceeds 40,000 ft (12,191 m). The well surpasses by approximately 2,000 ft the prior extended-reach record of 38,322 ft (11,680 m) MD set by another drilling contractor with a land rig on Sakhalin Island earlier this year.

The rig’s crew, working with the operator, Maersk Oil Qatar AS, overcame many constraints, including high drilling torque in the horizontal section. The Well BD-04A is in the Al-Shaheen field offshore Qatar. Crews used extensive deck-management planning and a supply boat to hold additional drill pipe so that the rig could stay within its variable deck load rating.

Worldwide, Schlumberger technology has contributed to six of the top seven extended-reach directional projects. The latest, drilled in the Al-Shaheen field offshore Qatar, reached a total depth of 40,320 ft. Total step-out distance from the surface location was 35,770 ft.

In all, the well set 10 records, including:

• Longest well ever drilled.
• Longest along-hole departure (37,956 ft).
• Longest 8 ½-in. section (35,449 ft).
• Highest ERD ratio (AHD/TVD): 10.485.
• Highest Directional Drilling Difficulty Index (DDI): 8.279.
• Deepest directional control.
• Deepest downlink, MWD transmission and LWD geosteering (40,320 ft).
• Deepest battery-less operation.
• Longest reservoir contact (35,449 ft).
• Longest open hole.

The 8 ½-in. horizontal section was drilled in two runs with the PowerDrive X5 and PowerDrive Xceed RSS. The TeleScope high-speed telemetry-while-drilling system transmitted geosteering information in real time and continuous measurements of parameters that affect drilling efficiency. The system also ensured that downlinking commands were received by the bottomhole assembly all the way to total depth. Continuous trajectory control enabled drillers to keep the wellbore within the 3-ft “sweet spot” of the 10-ft-thick reservoir 95% of the time.

For the first time, totally battery-less LWD triple combo equipment was used. The TeleScope, geoVISION and adnVISION systems were powered by a turbine generator driven by drilling fluid circulation.

The record-breaking performance involved a Schlumberger D&M team assigned to the customer for more than a year. Drilling engineers located in Maersk’s offices provided close collaboration, and Operation Support Center (OSC) engineers ensured clear communications and vital data were available for decision-making. Repair and maintenance personnel prepared and tested the equipment.

1st phase is completed in rigless subsea well intervention project in Australia

Phase one of a rigless intervention activity on Woodside’s Vincent project, offshore Western Australia, has been completed. This marks the first ever fully integrated rigless subsea well intervention project in the Asia Pacific region. TSMarine’s Perth subsidiary operates a multi-year service contract with Woodside, and this milestone project has seen TSMarine’s offshore well intervention vessel, the Havila Harmony, successfully deploy, install and test seven subsea trees and carry out wireline intervention on all seven wells. This is the first phase of a campaign that will include the installation and completion of up to 11 subsea trees in the Vincent field and a range of commissioning and decommissioning projects in region. This also was the first time the deployment and installation on wire of subsea xmas tress from a monohull vessel has taken place in the region. Similarly, it was the first time a subsea well intervention project has been carried out using wireline services from a monohull vessel in Australian waters.

Seadrill has entered into agreements with Keppel FELS and PPL Shipyard in Singapore for the construction of a total of four jackup newbuilds with delivery in 2010.

The two units to be built at Keppel FELS will be based on the KFELS Mod V ‘B’ design. The rated water depth is 400 ft, and drilling depth is 30,000 ft. Deliveries are scheduled in June 2010 and November 2010, and the total contract price for the two units is approximately US$420 million.

These jackups will be the fifth and sixth jackup orders that Seadrill has placed with KFELS. The shipyard recently completed its fourth jackup, West Ariel, for Seadrill, within budget and three days ahead of schedule.

The two units to be built at PPL Shipyard will be based on the Baker Marine Pacific Class 375 Deep Drilling design. The rated water depth is 375 ft, and drilling depth is 30,000 ft. Deliveries are scheduled in March 2010 and November 2010, and the total contract price for the units is approximately US$430 million.

Separately, Seadrill has entered into an agreement with Keppel O&M in Singapore to build a new semi-submersible self-erecting tender rig. Total project price is estimated at US$210 million. Scheduled for delivery in 1Q 2011, the new unit is targeted for harsher environment and deepwater drilling operations in combination with floating wellhead platforms such as TLPs and spars.

KCA DEUTAG wins contracts in Russia, Germany

KCA DEUTAG has been awarded land drilling contracts and extensions from oil and gas operators in Europe and Russia worth more than US$100 million.
Burgaz, Gazprom’s drilling subsidiary, has awarded KCA DEUTAG a contract for rig T-500 for 16 months, plus extensions, for a drilling campaign in the Novyi Urengoi field in the Yamburg region of west Siberia. The contract, which commenced in April 2008, will see rig T-500 mobilised less than 100 km from where it has been working under a three-well contract for Achimgaz (Gazprom/Wintershall).

Also in Russia, VCNG (TNK-BP/Rosneft) has issued an LOI for a three-year contract for rig T-2000, commencing 1 June 2008, for its ongoing drilling programme in eastern Siberia.

GeoEnergy GmbH of Germany has awarded KCA DEUTAG a three-year contract, commencing August 2008, for its T-46 land rig. This will be used for geothermal drilling of 10 to 12 wells to depths of 2,800m to 3,800m in Oberrheingraben in Germany.

Also, German utility company Gasag has awarded KCA DEUTAG a contract for its rig T-85 to undertake a six-week workover programme, commencing May 2008, in the B-12 field in Berlin.

Parker Drilling to build new rigs for drilling in Alaska

Parker Drilling Company has received a letter of intent from a BP subsidiary for a contract that will require two newbuild land rigs for a development drilling program in Alaska. The five-year drilling contract carries a five-year option, and operations are anticipated to commence during the second half of 2010.

The new arctic-class rigs incorporate advanced features such as fully enclosed rig modules for operation in arctic conditions down to -50°F; fully automated drilling systems featuring AC technology and variable frequency drive; and design composed of three lightweight Drilling, Mud and Utility modules, enabling the entire rig to be moved in only three loads.

JDC jackup delivered

Japan Drilling Co (JDC) took delivery of its newbuild jackup Hakuryu-10 from the PPL Shipyard in Singapore on 4 June 2008. The Baker Pacific Class 375 design unit is capable of drilling in water depths up to 375 ft and drilling down to 30,000 ft. The rig will be mobilized within the next few months to the Republic of Tunisia to begin operations.

Transocean, Union Drilling sponsor Troops 2 Roughnecks

Transocean and Union Drilling have signed multi-year sponsorship deals with Troop Transition’s Troops 2 Roughnecks program. “Labor issues are front and center in today’s robust oil and gas market. Our sponsors made the decision to invest in a new labor pool – the US Armed Forces,” said Kevin M Denny, Troop Transition CEO and founder.

More than 225,000 servicemen separate from active duty every year, all looking for meaningful post-service employment, Mr Denny said. Troop Transition seeks to channel those veterans into careers through industry-sponsored training and credentialing. Troops 2 Roughnecks’ eight-week course allows active-duty Marines to Control credentials prior to discharge. Sponsors and partner companies then make job offers, contingent on completing the T2R program and an honorable discharge.

Like many renewable energy sources, geothermal carries substantial potential for powering the world in an environmentally friendly way. However, also like many renewable energy sources, geothermal remains unable to evolve into a fully viable alternative to oil or natural gas.

The late 1970s and early ’80s saw rapid growth of the US geothermal industry, mostly in western states such as California and Nevada. But by the ’90s, geothermal had hit a wall. Demand went down in the face of strong competition from natural gas – fairly cheap at the time, if you recall. Even after the US government added an investment tax credit for geothermal drilling in 1992, the market continued to stall.

Times have changed since the ’90s. Neither oil nor natural gas are exactly cheap these days. Since the early 2000s, drilling costs for geothermal wells have decreased relative to oil/gas wells – likely due to improved geothermal drilling practices and because oil/gas drilling costs have gone up significantly. Not to mention there’s an increasing focus worldwide, by both energy consumers and governments, on going “green.”

The US Department of Energy is now aggressively working to push geothermal to the next level – not just in the agency’s traditional arena of technology R&D, but also in government policy and technology commercialization. “These are new areas for us, and I hope we will have a greater role and greater impact in the future,” said Steven Chalk, deputy assistant secretary for renewable energy at the DOE’s Office of Technology Development, Energy Efficiency and Renewable Energy (EERE).

The next step: Enhanced geothermal systems

Producing geothermal energy means tapping into naturally existing hydrothermal reservoirs and generating power off of the heated fluids. The problem is that these reservoirs aren’t found in as many regions as would be required for geothermal drilling to really hit it big – big enough to make it a true alternative to oil and natural gas, and big enough to possibly address climate change issues.

The DOE has been studying the potential of enhanced geothermal systems (EGS), which basically engineer rocks to create hydrothermal reservoirs. For drilling contractors, the process means a lot of new drilling opportunities – many injection and production wells will be needed, although in an environment much different from oil/gas. Stimulation and fracturing are also critical parts of the EGS.

According to a report released last year by MIT, there are an estimated 13 million exajoules (1018 joules) of heat that are EGS-accessible in the US. To put that in perspective, the DOE said, total US energy usage per year is about 100 exajoules.

So, the good news is, the potential is significant. The challenge, however, is once the reservoirs are created, can fluids be produced from them at sufficient rates to be economic?

DOE program

On 18 June, the DOE issued a Funding Opportunity Announcement (FOA) for the R&D and demonstration of EGS technology. Up to $90 million was offered over four years, including $40 million on R&D projects and $50 million on demonstration projects.

R&D projects will target technologies needed to create reservoirs at temperatures up to 300°C and depths down to 10 km. Critical technologies have been identified as: downhole pumps, fracture characterization, image fluid flow, high-temperature logging tools/sensors, stimulation prediction models, tracers/tracer interpretation, and zonal isolation. Demonstration projects will be cost-shared with industry and will focus on stimulating existing unproductive geothermal reservoirs.

For more information on geothermal drilling, visit EERE’s website at www.eere.energy.gov. Linda Hsieh can be reached at linda.hsieh@iadc.org.

IADC Career Connection (ICC) held its second Returning Military Campaign (RMC) Job Fair at Fort Hood, Texas, on 14 May. It was held in conjunction with the Army Career Alumni Program Semi-Annual Job Fair, which attracted 170 companies from across the US. Ten IADC member companies participated: Bandera Drilling, Chesapeake, ENSCO, Grey Wolf Drilling, Helmerich & Payne, Nabors International, Parker Drilling, Patterson UTI, Pride International and Transocean. Recruiters met with more than 2,000 military – including artillery soldiers, infantrymen, medics, mechanics, electricians, aviators and even retiring officers – and their families.

Ann Brazzel, vice president of Bandera Drilling, commented, “The young men and women at Fort Hood were a delight to meet. They were prepared with resumes and questions about what was required to work in our industry and at our company.”

IADC believes that by working together as an industry, we can attract our future workforce while simultaneously communicating a positive story to the general public, said ICC manager Linda Silinsky Kephart.

A RMC job fair at Fort Carson in Colorado Springs is in the planning stages, with three companies already signed on to participate. Drilling contractors interested in participating should contact Ms Silinsky Kephart at linda.silinsky-kephart@iadc.org. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

To learn more about IADC Career Connection, please visit www.careers.iadc.org.

North Sea Chapter presents annual Safety Awards

IADC North Sea Chapter (NSC) chairman Steve Rae of Seawell announced winners of the 2008 IADC NSC Safety Awards at the group’s annual dinner in Aberdeen on 16 May. Performance awards were presented for jackups, semisubmersibles and platforms based on safety statistics for 2007. Noble Drilling won in the jackup category, with Rowan Drilling as runner-up. Noble also won in the platform category, with KCA DEUTAG as runner-up. The semisubmersibles award went to Stena Drilling, with Diamond Offshore as the runner-up.

This year’s Merit Awards recognised operations/installations that achieved extended periods without a Restricted Work Transfer Case or above. Awards were given to Noble for the Clair Platform and to KCA DEUTAG for the Kvitebjørn Platform.

The Noble Piet van Ede, which has received several merit awards in recent years, was presented with an outstanding achievement award for working 10 years without a lost-time incident.

An IADC NSC Associate Member Award recognising safety innovations was presented to NOV Brandt for its VSM 300 Shale Shaker. The Chairman’s Special Award went to Russell Robertson, who has been seconded from his employing company Transocean to Step Change in Safety. The award recognises Mr Robertson’s dedication on behalf of IADC through his 30-month period of secondment

IADC members receive Service Awards

Two long-time industry contributors were recognized with IADC Exemplary Service Awards at the World Drilling 2008 Conference & Exhibition on 11 July 2008. IADC president Dr Lee Hunt presented the awards to Dominique Dupuis of Pride International and Pierre Gie of TOTAL during the conference’s opening session.

Mr Dupuis, head of drilling engineering at Pride and vice president at Horwell, holds a mechanics degree from ENSM and degrees for drilling technical courses at the French Petroleum Institute. He has long been a member of the IADC/SPE Drilling Conference program committee, as well as a member of the IADC European Working Group. Mr Gie is global rig coordinator and coordinator for service companies in drilling for TOTAL. He earned an MS degree from Ecole Centrale de Lille and a petroleum engineering degree from Ecole Nationale Superieure du Petrole et des Moteurs in France. He also holds an MS in economics from the Lille University. He has served in within TOTAL in Algeria, Indonesia, Italy, Norway and Scotland, and has served for several years on the IADC World Drilling program committee.

2008 IADC chairman John Lindsay of Helmerich & Payne joined producer representatives in a Denver meeting with Colorado Gov. Bill Ritter to express concerns about proposals of the Colorado Oil and Gas Conservation Commission (COGCC) to limit E&P activity in the state. Draft regulations would suspend drilling operations for three months each year, allegedly in the interest of wildlife protection. Not only would that discourage contractors from working in the state, Mr Lindsay argued, but the drilling suspension could be as long as five months, considering the time needed for rig mobilization and de-mobilization.

EU Ministers Announce New Working Time Proposal

After years of political impasse, EU ministers came to a political agreement on the way forward with a new Working Time Directive (WTD). This agreement still must be formally adopted and run the gauntlet of EU Parliamentary scrutiny, but as currently drafted, it would be acceptable to the offshore E&P industry. It would solve the “Jaeger” issue, which involves an European Court of Justice decision holding that any time an employee is at the “call” of the employer constitutes working time. That decision would make it virtually impossible for most EU employers to manage shift cycles, including traditional offshore rotas. The sticking point these many years had been the UK’s insistence on an “opt out” from the Directive for employees wanting to work longer than the 48-hour weekly maximum. Under a compromise, a Member State could choose a 12-month reference period – a key objective of IADC for offshore work – but must relinquish the opt-out. If choosing to retain the opt-out, the reference period’s limited to six months.

I just wanted to send you a brief note about your Drilling Onshore Conference. I really enjoyed being there and seeing all the progress you have been making in the past seven or eight years that I have been gone. It was very impressive to see the attendance and the exhibits and the enthusiasm everyone has, your staff included. What really got me energized to write was the list of conferences that you have lined up. Wow! All over the world! I can’t imagine how you keep up. Whatever it is, keep doing it, because all the contractors will benefit if they attend. Nice going, maybe I will back again one of these days and we can visit again.

Your friend,
Sherman

Sherman Norton was formerly president of Norton Drilling and in 1988 became the first recipient of the IADC Contractor of the Year Award.

Mobile Offshore Drilling Units (MODUs) in the Gulf of Mexico are a critical part of the infrastructure required for oil and gas E&P. Industry standards that allow safe and economic operations are important to the industry, community and regulatory authorities. Much work has been done since the events of the 2004 and 2005 hurricane seasons to better understand the causes of moored MODU failures and learn from them. This knowledge has resulted in changes to the industry standards.

API RP 2SK 3rd Edition establishes a minimum acceptable design code for mooring systems. RP 2SK requires a mobile mooring, like that on a MODU, be designed to a 5-year return period event when operating away from other structures. When operating in the vicinity of other structures, a 10-year return period event is required. However, no specific definitions are provided on what is considered “away from” and “in the vicinity of.” Some examples are given for operations in the vicinity of other structures. RP 2SK also permits using a risk analysis to determine the design return period, but in no case shall it be less than one year.

Three strong hurricanes (Ivan, Katrina and Rita) entering the Gulf of Mexico within roughly a 12-month period and carving paths through areas of the Gulf of

Mexico with extensive oilfield infrastructure was unprecedented. In the past, hurricanes have caused MODU mooring failures; for example, in Andrew and Lili. However, over time, the number of MODUs working in the deep water has increased, along with more infrastructure, thus increasing the probability of failure and possible consequences of failure (damage).

New criteria, which are risk based, are needed to better protect critical infrastructure during GoM hurricanes unless a more prescriptive type of code can be developed. The industry’s initial response to the problem was addressed in API RP 95F, 1st Edition, published in May 2006. The minimum design return period was increased to a 10-year return period event, whether far from or in the vicinity of infrastructure. It also required the use of the Central Gulf metocean criteria developed by the ABSC MODU Mooring JIP or site-specific criteria, which includes the 2004 and 2005 hurricane season hindcast. Also, in no case is the one-minute wind speed to be less than 64 knots (a threshold category 1 hurricane). 95F also recommends that a site-specific assessment be conducted to evaluate the risk of such operations during hurricane season.

For the 2007 hurricane season, a 2nd Edition of 95F was released that was an improvement over the 1st Edition but still did not provide all the guidance needed by the industry. The 2nd Edition included guidance on post-storm inspection and recertification of mooring components to ensure the integrity of components from a damaged mooring system. This guidance was subsequently incorporated in API RP 2I, 2nd Edition, mooring inspection, which was successfully balloted by API Subcommittee 2 in spring 2007. RP 2I also dictates that mooring components should go through a more thorough and fully documented quality and inspection process.

A risk-based approach has been developed and incorporated into a new Appendix K of RP 2SK to replace 95F for the 2008 hurricane season and beyond. Proper implementation of the appendix will aid in the planning of drilling operations and the designs of MODU mooring systems, which should reduce the consequences to the MODU fleet and offshore infrastructure if the 2004-05 hurricane seasons repeat.

In parallel with the efforts of the 2SK Task Group, a joint industry project was launched to explicitly study and learn from the successes and failures of moored MODUs during the 2004-05 hurricane seasons. The JIP and the 2SK Task Group worked closely together to mutually benefit from each other’s efforts. A key objective of the JIP was to pass on results from studies that could benefit the 2SK Task Group in developing the Commentary. Explicit studies that were conducted and how they benefited the 2SK Task Group will be discussed and how they impacted the 2SK Commentary. This includes development of a consequence-based assessment spreadsheet tool, a mooring reliability study, fleet mooring capability for the original and upgraded mooring systems and comparative risk assessment.

Industry response to the impact of the hurricanes and the evolving practices shows the commitment by all to address and correct this issue. Even before 95F 1st Edition was published, MODU owners had begun making significant upgrades to the mooring systems. Use of additional mooring lines, “rig upgrades,” and use of alternative mooring systems and components, “component upgrades” have become more common in an effort to reduce the probability of a MODU failure or the likelihood of damage to surrounding infrastructure should a failure occur.

For more information, please see OTC 19607, “API RP 2SK: Stationkeeping – An Emerging Practice,” and API RP 2SK, Appendix K, Gulf of Mexico MODU Mooring Practice For Hurricane Season. David Petruska is GoM SPU Riser Technical Authority for BP America and chairman of the API Stationkeeping Task Groups.