TECHNICAL SESSION I: DRILLING PROJECT CASE STUDY

Setting Free the Bear: The Challenges and Lessons of the Ursa A-10 Deepwater ERD Well, E. van Oort, University of Texas Austin; G.A. Ugueto, J.R. Gradishar, J. Murdoch, Shell

This paper details the case history of the challenging extended reach deepwater A-10 well, drilled in the Ursa prospect in the Gulf of Mexico. This well, drilled from the Ursa TLP at a vertical depth of 20,000 ft and a horizontal displacement of 20,000 ft, targeted the yellow sand in the Ursa-Princess section of the greater Mars-Ursa basin. During the drilling of the original hole and three subsequent sidetracks, significant hole problems materialized causing extensive non-productive time and associated trouble cost. A succinct overview of the Ursa A-10 case history and a comprehensive summary of the learnings will be provided in the paper to help the future drilling of extended reach wells in geopressured, low-margin deepwater environments.

Case History of a Challenging Thin Oil Column ERD Development at Sakhalin, V.P. Gupta, S.R. Sanford, ExxonMobil Development Company; R.S. Mathis, E.K. DiPippo, Exxon Neftegas; M.J. Egan, AIPC, Consultant

ExxonMobil, as operator for the Sakhalin-1 project, recently planned a drilling campaign at the Chayvo Field, Sakhalin Island, Russia. The focus of this campaign is the development of a thin oil column reservoir using extended reach drilling (ERD).

The case history described in this paper illustrates the combination of planning, technical design and operational practices required to push the ERD envelope further.

White Rose Project Drilling and Completion Performance Evolution: A Case Study, G. Akinniranye, T. Krepp, B.M. Foster, K&M Technology Group; C. Pardy, Husky Energy; M. Carter, Schlumberger; C.C. Gregory, Canada Husky Energy

The White Rose field is a large oilfield offshore Eastern Canada, approximately 350 km east-southeast of St John’s Newfoundland. The North Amethyst Drill Center was the first satellite tie-back development of the main White Rose field.

North Amethyst faces significant drilling challenges. In earlier wells, the severe levels of shocks and vibrations encountered while drilling both the intermediate and production hole sections resulted in low rates of penetration, premature bit wear, damaged tools, unplanned trips and drill string failures.

This paper presents a deconstruction of how drilling and completion performance improvements were achieved over three years from 2009 to 2012. These efforts, even as wells complexities increase, reduced cost per foot and days per thousand feet by over 20% while drilling approximately eight wells over a two-year period.

Shale Play Drilling Challenges: Case Histories and Lessons Learned, M.J. Jellison, J.N. Brock, A. Muradov, D. Morgan, NOV Grant Prideco; J. Rowell, Premium Oilfield Services

This paper discusses the requirements for drill pipe in shale applications along with a review of some of the challenges and problems associated with the drill string in these critical applications.

Exploration and Appraisal Drilling Operations in the South Atlantic, J.W. Jenner, A. Morrison, Rockhopper Exploration; B. Lyons, Desire Petroleum; L. Phillips, AGR Petroleum Services; I. McBean, Diamond Offshore Drilling (UK)

The paper describes how the teamwork and continuity provided by utilizing a drilling project management company based in Aberdeen and a single drilling contractor enabled two small UK operating companies, with limited in-house operational resources, to conduct offshore drilling campaigns in an area remote from established support centers.

The paper will demonstrate that with detailed and careful planning, inclusive management and modern communications technology, drilling operations in remote locations can be conducted safely and efficiently.

SPE/IADC 163418: Weatherford’s 7-in. x 8 ½-in. Defyer DPC 513 drillable casing bit was used with liner drilling technology to drill and cement an operator’s
9 5/8-in. and 7-in. liners in place from the naturally fractured El Abra formation in the Carpa and Bagre fields of the Faja de Oro area offshore Mexico.

SPE/IADC 163418

Use of Liner Drilling Technology as a Mitigation to Lost Circulation in the Faja De Oro (Golden Lane) Oil Fields Offshore Veracruz, Mexico, O.L. Pohlenz, Pemex Exploration and Production; S.M. Rosenberg, E. Garcia, M.Z. Tan, Weatherford International

This paper will demonstrate the benefit of liner drilling technology to drill and cement an operator’s 9 ⁵/8-in. and 7-in. liners in place allowing for the continued development of oil reserves from the naturally fractured El Abra formation in the Carpa and Bagre fields of the Faja de Oro area.

Prior to the introduction of liner drilling, two previous wells drilled in the Carpa field encountered massive lost circulation and hole instability while drilling into the El Abra limestone resulting in a total of 55 days of NPT for the two wells. An estimated 2,700 bbls of fluid were lost in these wells with both wells having to be sidetracked to reach their El Abra objective.

E-POSTERS:

First Oil Requirements Drive Simultaneous Drilling and Subsea Construction Operations on UK Central North Sea Development, R.M. Allan, B. Fraser, S. Short, S. Davidson, E.ON E&P UK

Accelerated production targets in the field development plan of this UKCS project drove the requirement for design and drilling of the four production and two injection wells with concurrent subsea construction and planned production start-up. The objective of the paper is to demonstrate that the use of a jackup with subsea template and high-pressure riser is a worthwhile subsea well development method.

The activities described in the paper can be applied to marginal developments where accelerated production is a driver or rig market constraints are a factor during rig type selection.

Case Study of Rotating Expandable Reamer Across Whipstock and Drilling Ahead Over 8,000 ft Thereby Reducing Drilling Time, S.R. Radford, M. Allain, J. Oliveire, S. Desselle, Baker Hughes; B. Pearl, Chevron; J.D. Enterline, Hughes Christensen

Reducing drilling time and cost has become more important as wells have been drilled deeper and costs have risen. This paper will describe a case study of a well drilled in the Main Pass area of the Gulf of Mexico for a major operator. In this job it became necessary to rotate a bottomhole assembly, including an expandable reamer, across a whipstock. This eliminated a trip and significantly minimized costs.

Operational Reliability Assessment of Conventional Drilling vs MPD on Challenging Offshore Wells, D.M. Hannegan, Weatherford International Ltd.

This presentation applies reliability engineering concepts to a HPHT prospect whose water depth and formation pressure map suggests risk of kick-loss scenarios, differential sticking, risk of twist-off, cementing challenges and TD with too small a hole. An offset well’s actual experience with conventional drilling methods will be compared with an operational reliability assessment of applying the constant bottom hole pressure variation of managed pressure drilling on the proposed well.

TECHNICAL SESSION 2: WELLBORE PLACEMENT

Wellbore Collision Avoidance and Interceptions – State of the Art, J.P. de Wardt, de Wardt and Co; S.V. Mullin, Gyrodata Inc; J. Thorogood, Global Drilling Consultant; J. Wright, Bearco

Results and knowledge shared from the SPE Workshop held in Inverness, September 2012 (Collision Avoidance and Well Interceptions) will be presented.

Rank Wildcat Drilling Risks & Drilling Time Reduced in Ultra-Deepwater Offshore Namibia with the Application of Seismic & Formation Pressure While Drilling Technology, M. Richards, J. Kemper, A. Jervis, E. Bowles, Chariot Oil and Gas; C. Cassidy, Senergy World; M. Turner, N. Kelsall, J. Puech, Schlumberger

Rank wildcat wells in deepwater present some of the greatest challenges today. Decision making during drilling is challenging due to a lack of offset well data. 3D surface seismic data has significant uncertainty from the translation of two-way time to horizon depths, which further induces risk into the predrill pore pressure model.

This paper looks in detail at how the utilization of a high-tech logging while drilling suite in the execution of a rank wildcat enabled key drilling decisions to be made, reducing risk and time taken to drill the well.

New Directional Drilling Modeling Tools Improve Drilling Performance, R. Spencer, A. Kulkarni, Baker Hughes; J. Hanson, JM Hanson Consulting

This paper describes the development and use of new directional drilling software modeling tools. A new, fully dynamic drill bit software simulator is introduced with the capability of modeling rock removal done by cutters as well as gauge pads and bit blades. Side-cutting simulations with gauge pad/rock interaction are presented and compared to side-load lab test data at atmospheric pressure. Axial drilling simulations with blade/rock interaction are presented and compared to pressurized axial drilling lab tests. Both side-cutting and axial simulations show good agreement with the lab tests.

Advanced FEA-Based Modeling System Successfully Reproduces and Solves RSS Hole Spiraling Issue, M. Al Habsi, Al Hosn Gas (ADNOC); T. Stephens, Y. Owodunni, Al Hosn Gas (Oxy); R. Boualleg, Y. Shen, O. El Amin, M.R. Mokhti, P. Le, V. Radhakrishnan, Schlumberger

Hole spiraling can adversely affect drilling costs and reduce the quality of formation data acquired for geological interpretation. Quality image logs are imperative to optimize well planning, field development and reservoir characterization. In a recent production well, the operator was experiencing severe hole spiraling using RSS in the 8 ½-in hole section that severely reduced resistivity image quality. To solve the problem, an accurate 3D modeling system was applied that utilizes laboratory derived cutter-rock interaction as the basis for engineering analysis.

SPE/IADC 163472: Schlumberger’s slim-hole PowerDrive Archer RSS was designed for worldwide application in various borehole sizes. Field tests of the new high-dogleg RSS show improvements in multilateral well construction. Photo courtesy of Schlumberger.

SPE/IADC 163472

Design, Development and Field Testing of a High Dogleg Slim-Hole Rotary Steerable System, R.F. Hawkins, S. Hough, S. Jones, J. Sugiura, J. O’Connor, Schlumberger

This paper presents the design, development and field testing of a new high dogleg RSS for 5 ⁷/8-in.
to 6 ³/4-in. hole size. The design methodology is explained in terms of requirements and specifications. The development and field testing phases of the project will be described in detail including field test results from different drilling applications worldwide.

TECHNICAL SESSION 3: CEMENTING AND ZONAL ISOLATION

Sakhalin Gas Shut-off Workovers: A Case History of Zonal Isolation at Record Depths, R. Molloy, ExxonMobil Development Company; M.M. DiPippo, Exxon Neftegas

Exxon Neftegas, as operator for the Sakhalin-1 project, recently completed gas shut-off workovers on two extended-reach horizontal wells at the Chayvo field, Sakhalin Island, Russia.

This paper will recap the results of this successful gas shut-off workover campaign and the learnings obtained from straddle liner installations at world record depths.

Innovative Managed Pressure Cementing Operations in Deepwater and Deep Well Conditions, Y.A. Elmarsafawi, A. Beggah, Schlumberger; V. Pradet, C. Cheshier, BP

In Shah Deniz field in the Caspian Sea, the innovative MPD cementing technique was used to cement several string sizes that sat at different depths. In this challenging deepwater environment, specialized surface equipment was used to control the well during cementing. In addition, the mud properties and cement system were tailored for this specific operation. After cementing, the job was evaluated with sonic and ultrasonic logging tools.

The success of the MPD cementing technique enabled us to reduce completion costs and achieve drilling objectives. In this paper, we present case studies of the technique used to cement several wells and the evaluation performed after operation completion.

HPHT Well Construction with Closed-Loop Cementing Technology, D.M. Hannegan, Weatherford International

This presentation speaks to applying the principals of MPD and recent refinements of its deepwater practice to cementing processes. Precise mass flow in/out measurements, ascertainment of actual downhole pressure environment, ability to conduct frequent dynamic formation integrity tests without drilling interruption and use of PLC choke systems are applicable strengths.

Qualification and Field Trial of a Metal Expandable Well Annular Barrier, J.R. Drechsler, O. Eikeskog, Statoil; P. Hazel, R. Vasquez, B. Filev, Welltec A/S; O. Hjorteland, Welltec Inc

This paper covers the design, development and qualification of a hydraulically expandable metal annular barrier assembled on a full bore liner. The presentation will review the design, material selection to achieve the required expansion, the unique outer seal design to deliver the pressure differential requirements and the final qualification process, which exceeds the industry- established guidelines within ISO 14310.

LWD Sonic Cement Logging: Benefits, Applicability and Novel Uses for Assessing Well Integrity, M.P. Blyth, D. Hupp, T. Kinoshita, Schlumberger; I. Whyte, Tullow Oil

This paper explores the applicability of LWD sonic tools to the analysis of cement behind casing. It considers both the currently accepted deliverable of top of cement analysis, along with examples of more advanced processing techniques and their comparison to wireline cement evaluation, providing case study examples in each case.

The benefits and limitations of these methods will be discussed, along with operational considerations to aid in successful logging, including the use of repeat logging passes to indicate changes in cement quality with time. The use of LWD sonic tools to identify casing collar connections on driller’s depth, enabling the safe positioning of cased-hole whipstocks, is also covered, demonstrating a novel and little-used application of LWD technology.

SPE/IADC 163446: A new cement placement simulator investigates key criteria for optimization of zonal isolation and cement placement. Accounting for losses and the behavior of non-aqueous fluids together during cement placement allows for more in-depth analysis.

SPE/IADC 163446

Accounting for Lost Circulation and NAF Compressibility – Impacts on Cement Placement, J.M. Shine, Jr., S.A. Chaudhary, A.J. Felio, R.S. Martin, Baker Hughes

This paper will explain the theory and methods behind the advanced cementing simulator inputs and resultant outputs with case histories demonstrating field validation of the new simulator’s reliability. For example, in a Gulf of Mexico well where zonal isolation below the base of salt is critical, the simulator provided more accurate results resulting in top of cement as planned. The advanced simulator provides accountability for new industry regulations and confidence when evaluating the cement placement.

E-POSTERS:

Performance of Heavyweight Cements at Ultra-High Temperatures, J. Caritey,  J.E. Brady, Schlumberger

The effect of common weighting agents on the corresponding set cement properties at very high temperatures and pressures is presented. It demonstrates for the first time that metal (iron, titanium, manganese) oxides are not at all inert in these conditions. Analytical data show that they react with cement hydrates (xonotlite) to form other mineral phases, which are detrimental to zonal isolation as they result in lower compressive strength and higher permeability. A new strategy for heavy weight cements at extreme temperature is then presented, where performance of the set cement is preserved.

Dynamic Cementation: A Solution to Well Integrity Problems, C. Holt, N. Lahoti, L. Godoy, Tesco Corp

A new method of dynamic cementation, where pipe movement is maintained until cement begins to set maximizes the mud-cement displacement process. It can achieve a quality completion using cementing software, real-time rig instrumentation and casing rotation/reciprocation.

In this paper, barriers to change, a methodology with classifications in dynamic cementation levels and field examples are presented. It investigates the benefits of casing movement during cementing and reviewing cement bond logs.

TECHNICAL SESSION 4: DEEPWATER

Thermal Modeling Reveals Hidden Conditions that Can Impair Wellbore Stability and Integrity, R. Mitchell, R. Sweatman, Halliburton

This paper describes thermal modeling, combined with drilling fluid analysis, which reveals concealed changes in well conditions during various drilling and completion operations. These hidden conditions represent significant changes in the well’s drilling and completion fluid temperature, pressure, and density that may help explain wellbore stability and integrity issues.

Casing Design for Dual-Gradient Wells, A.J. Cantrell, Cherokee Offshore Engineering

This paper outlines factors that should be accounted for in dual-gradient casing design as compared to conventional deepwater casing design.

Big Bore Expandable Liner Hangers for Offshore and Deepwater Applications Reduces Cost and Increases Reliability: GOM Case History, J. McCormick, A. Carter, Halliburton

A case history of six expandable liner hangers (ELH) in the Gulf of Mexico show consistent materials cost savings, reduced installation time, improved reliability and increased versatility over the conventional system.

This paper disseminates technical information to increase operator awareness of an additional technology. Because deepwater exploration and development wells are becoming more prevalent, solutions for decreased materials costs, reduced installation time, improved reliability and increased versatility are needed. This ELH technology assists with both increased efficiency for current operations and the ability to push the deepwater technological envelope.

BOP Testing – Qualification Tests, Test Facilities and the Efficient Means of Operating Them, F.B. Springett, C. Johnson, M. Shah, National Oilwell Varco

BOP performance is in the limelight all the way from the manufacturers to governmental levels. Greater performance objectives require higher testing standards. This paper will examine the needs of a modern BOP test facility and the methods used to deliver on those needs effectively.

Zonal Isolation Through Gas Hydrates Offshore Tanzania, J.S. Vølstad, T. Tveit, Statoil; P.C. Aguilar Mayorga, N. Hurtado, M. Bogaerts, Schlumberger

Deepwater cementing becomes increasingly challenging as drilling operations move to greater water depths and to more remote locations. Understanding these challenges and mitigating the associated risks in time becomes ever more important. Before the first exploration well for an operator offshore Tanzania was spudded in a water depth of 2,580 meters, an extensive analysis was performed to determine all the risks for cementing operations, especially critical was the cementation of the surface casing.

Perforating Gunshock Loads – Prediction and Mitigation, C.E. Baumann, K.E. Barnard, H.A. Williams, Schlumberger; D.R. McDaniel, J.R. Cromb, Anadarko Petroleum

Most wells and particularly high-pressure wells are susceptible to gunshock damage when they are perforated with inappropriate gun systems. This paper presents a simulation methodology to predict gunshock loads for tubing-conveyed and wireline-conveyed perforating jobs. This methodology enables completion engineers to evaluate the sensitivity of gunshock loads to changes in gun type, charge type, shot density, tubing size and length, number of shock absorbers, rathole length, and placement of packers, among others.

TECHNICAL SESSION 5: DOWNHOLE TOOLS

The Evolution of Wired Drilling Tools: A Background, History and Learnings from the Development of a Suite of Drilling Tools for Wired Drill Strings, A.D. Craig, T.A. Jackson, NOV IntelliServ; D.A. Ramnarace, R. Schultze, NOV Downhole; S. Stene, ConocoPhillips Norway; M. Herbert, ConocoPhillips Norge

This paper will summarize the development of a range of drilling tools for use in a wired drill string. The paper will focus on the history and learnings from the engineering design, field use and commercialization of wired conventional drilling tools, including jars and underreamers as well as the development of an advanced drilling dynamics measurement tool capable of transmitting downhole data through the wired drill pipe network.

Industry’s First Hydro-Mechanical Surface Controlled System for Multiple Reamer Activation/Deactivation Increases Drilling Efficiency, B.T. Torvestad, H.M. Bjoerneli, K. Toerge, L. Andreassen, Schlumberger; S. Haavardstein, ConocoPhillips

Using a concentric underreamer is a widely used technique for efficient wellbore construction. Most underreamers are fitted with lock-out systems to provide a means of drilling out the shoe-track with the cutters closed before enlarging the tool below casing. Several underreamers also provide a system to lock the tool closed after reaching TD to enable full flow while pulling out of hole for best possible cleaning. However, a major limitation these systems have in common is the underreamer cannot be reactivated once closed and the tool must be placed at top BHA due to the activation method.

To increase reamer efficiency/BHA flexibility, a new hydro-mechanical system has been developed that makes it possible to perform multiple activation/deactivation of the underreamer by manipulating the flow rate in a short sequence allowing infinite open/close cycling for selective underreaming and more flexible placement opportunities within the BHA. The concept does not require any form of device to be pumped down the drill string. The system also increases the potential to save rig time on the activation/deactivation sequence.

Downhole Vibration Analysis: Fishing Agitation Tool Efficiency in Stuck Pipe Recovery, A.K. Mohanna, P. Shwets, M. Voghell, D. Perez, National Oilwell Varco; M. Ahmed, Saudi Aramco

Challenging and costly situations to overcome in modern day directional drilling applications are stuck pipe in open hole due to differential and/or mechanical sticking forces. Chances of recovery decay with time and conventional fishing BHAs are frequently unsuccessful. By incorporating axial-oscillation technology, its fishing reliability and effectiveness improve exponentially. The fishing agitation tool (FAT) is an excitation component of the fishing BHA used to deliver low impact high energy oscillation to the engaged fish. FAT keeps the string in motion, breaking static sticking friction.

Expandable Liner Hanger Milling: North Sea Case Histories, T. Berge, K.D. Mathisen, O. Storebo, Halliburton; M.S. Muir, Maersk Oil and Gas A/S

This paper discusses the first two cases in the North Sea where expandable liner hangers were milled due to drilling issues below the liners. The milling of the expandable hanger bodies provided several benefits over conventional liner hanger systems. The benefits included reduced rig time and NPT, less well debris than when milling movable parts/slips, and no parent-casing slip damage.

Unique Motor Design Decreases Costs While Improving Performance in High-Speed Drilling Applications, B.C. Guidroz, M. Hussain, National Oilwell Varco; C. Zowtuk, D. Erlandson, Talisman Energy

Drilling in high-speed applications typically requires the use of a turbine or a uniform-rubber thickness motor. While both generate high-rotating speeds, both are limited in the output power transferred to the bit. This decreases the drilling potential of the bit, especially in hard rock applications where rate of penetration (ROP) requires high speed and power. A further limitation is the per-foot drilling cost being significantly higher than traditional drilling motors and, in some cases, preventing the use of impregnated bits in low cost markets.

A new positive displacement motor has proven that the use of turbines and uniform-rubber thickness motors are not the only choices for high-speed drilling. This new motor is similar to conventional positive displacement motors in that it consists of a bearing assembly, transmission shaft and power section. The net result is a motor that can rotate at the speeds required for high-speed drilling while generating much higher output power than existing technology.

Field testing of this new motor design has shown performance that meets or exceeds existing high-speed drilling technology with regards to ROP and total drilling time.

Planning for Successful Jarring Operations – Effective Use of Drilling Impact System Helps Release Stuck Pipe, J.L. Mercado, Schlumberger

This paper focus on the drilling bottomhole assembly (BHA) design process and best operational practices that need to be follow to assure a successful drilling operation. The authors will discuss effectiveness of the impact system and proper pre-job analysis procedures for optimum jar placement to avoid a lost-in-hole situation. Case studies are presented to illustrate how the utilization of the drilling impact system culminated in the successful execution of a jarring operation to free stuck BHAs.

E-POSTERS:

A New Standard in Wireline Coring: Recovering Large Diameter Wireline Core Through Standard Drill Pipe and Custom Large Bore Jar, T.M. Farese, H. Ahmed, National Oilwell Varco; I.A. Adebiyi, Saudi Aramco

A new wireline retrievable system capable of acquiring 3-in. diameter core utilizing standard drill pipe was designed for application in Saudi Arabia. In addition, custom large bore coring jars were designed and deployed to meet the operator’s stuck pipe prevention standards. In all, 215 ft of core was cut in 8 ³/8-in. hole size achieving 98.6% core recovery, excellent core quality and 74-hrs of rig time savings compared to conventional coring operations.

The improvement in this technology has drastically increased the efficiency of large diameter wireline retrievable coring technology, decreased the stuck pipe risk and greatly reduced the minimum amount of core needed for the technology to be economically justified.

System Reliability and Metrics for the High-Speed Networked Drill String Telemetry and Along String Evaluation, D.M. Veeningen, R. McCubrey, A. Johnson, R. Adsit, National Oilwell Varco

Industry-wide adoption of networked drill strings require that the system is a viable alternative to conventional strings in terms of expense that lower well cost through increased efficiency, improved wellbore quality and reduced risk exposure. In addition, system reliability must be demonstrated with metrics.

This paper details underlying assumptions, statistical methods and presents reliability metrics for the high-speed networked telemetry drill string.

TECHNICAL SESSION 6: PERFORMANCE DRILLING

A Brief History of the Shell “Soft Torque Rotary System” and Some Recent Case Studies, J.J. Runia, S. Dwars, Shell; I. Stulemeijer, Consultant

The Shell “Soft Torque Rotary System” is a rotary drive control system to mitigate torsion vibrations in oil and gas drilling. The system was developed by Shell (with help from industry partners) in the early ‘90s and commercialized by licensing to a number of industry equipment suppliers. The original system was developed for DC-drilling drives using analogue torque feedback. The development of next generation AC drives in the drilling industry has required a re-look and upgrade of the technology. Currently we have rejuvenated the technology and introduced stringent commissioning criteria to safeguard the quality of deployment. An overview of these developments will be given, seen from a Shell perspective. In addition, a number of recent case histories will be presented.

Fit-for-Purpose BHA Design for Drilling Complex Wells Offshore Brunei Leads to New Industry Benchmark, B. Legarth, S. Dustin, J. Montero, Brunei Shell Petr. Sdn Bhd; J.R. Walker, R. Mulligan, C. Maeso, Schlumberger WTA Malaysia S/B

The paper will discuss engineering solutions implemented to mitigate risks from break-outs and complex well geometries, which consequently contributed greatly to deliver the subsequent 6,500-meter high complexity ERD well at 21.28 days ahead of AFE and with a best in class performance in the Rushmore Benchmark.

Instrumented IBOP Improves Measurements for Drilling and Equipment Optimization, J. Anderson, J. Standefer, R. Wylie, National Oilwell Varco

SPE/IADC 140347 described an instrumented surface sub (ISS) that included a vibration sensor, in addition to the standard measurements. Though tests appeared promising, practical ISS application proved difficult because of modifications needed to existing drilling equipment and resulting working space reductions between the crown block and drill floor.

To overcome these operational drawbacks, the sensor system was integrated into a standard internal blowout preventer (IBOP). Designing the instrumented IBOP presented many challenges both electrically and mechanically based on system requirements. This paper discusses the solutions for these design challenges and the validations that overcome each challenge, including lab and field testing.

Application of Targeted Bit Speed (TBS) Technology to Optimize Bakken Shale Drilling, W.D. Bassarath, C.A. Maranuk, Weatherford International

This paper examines the results of two 10,000-ft horizontal wells drilled in North Dakota. The first well was drilled to the planned total depth using TBS technology; the second well (not using TBS technology) was terminated prematurely due to high torque and drag. This paper details the improvement in the drilling process that this new technology offers by way of key metrics, such as reduced drilling time and improved wellbore geometry, with consequential cost savings.

Maximizing BHA Durability/Reliability: Turbodrill/Impregnated Bit Significantly Reduces Drilling Time in Granite Wash Laterals, G. Bone, C.D. Jamerson, Apache Corp; A.J. Klassen, J. Gray, Schlumberger; R.N. Baker, K.D. Turner, M. Parra, Smith Bits, a Schlumberger Company

Inconsistent roller cone/PDC bit performance drilling horizontally through the hard/abrasive Granite Wash reservoir in western Oklahoma has resulted in low ROP, increased operating days and escalating drilling costs. The authors will present case histories that illustrate performance achievements in the horizontal section and provide details that contributed to the success of the unique BHA.

Drilling Optimization in Deep Tight Gas Field, M.A. Al-Sharafi, N. Hariri, M. Nasrumminallah, Schlumberger; M. Al Naamani, PDO

In Oman, a high temperature/pressure, deep vertical tight gas exploration field required to reduce the drilling AFE. This paper provides a benchmark for similar high temperature/pressure tight gas projects, where cost is a concern and requires a technical solution.

TECHNICAL SESSION 7: DRILLING DYNAMICS

Little Things, Big Effects – Identifying Causes and Addressing Vibrations Issues in Challenging Deepwater Applications, G. Mensa-Wilmot, P. Benet, B. Maddoux, D. Ramchune, Chevron

This paper identifies a major contributor to drilling vibrations that is often overlooked in the types of analysis mentioned earlier – geometries of downhole tools, especially stabilizers. This realization is based on extensive analysis of worn tools. Correlations between specific vibrations modes, their initiation factors and failure patterns on downhole tools are established. Low-cost remediation solutions, that focus primarily on modifications to downhole tool geometries (little things), and the positive results they have had on the issues discussed earlier (big effects) will be discussed. Worldwide deepwater projects and results, following the new changes, will be presented.

Drill String Analysis with a Discrete Torque-Drag Model, R. Mitchell, Halliburton

In the standard torque-drag model, the drill string shape is taken as the wellbore shape. However, given that the most common method for determining the wellbore shape is the minimum curvature method, this assumed wellbore shape forces the bending moment to be discontinuous at survey points. This defect is dealt with by neglecting the bending moment.

A different approach assumes that the drill string position corresponds with the minimum curvature wellbore only at discrete points. The paper gives a complete description of the drill string calculation. Typical torque drag problems with different inclinations and wellbore curvatures are studied to compare the two torque-drag formulations. These studies give comparisons in drag forces, torques for the two models and for the new formulation, the magnitude of the bending moments.

Drill String Mechanics Model for Surveillance, Root Cause Analysis, and Mitigation of Torsional and Axial Vibrations, D. Ertas, J.R. Bailey, L. Wang, P.E. Pastusek, ExxonMobil

Case studies utilizing high-frequency surface/downhole drilling mechanics data validated a general purpose drill string mechanics model and identified three types of torsional dysfunctions with distinct signatures and mitigators: unstable stick-slip, bit/BHA stall and synchronous torsional oscillation.

Design Evolution of Drilling Tools to Mitigate Vibrations, J.R. Bailey, R.W. James, P.E. Pastusek, M. Prim, ExxonMobil; C.C. Elsborg, Esso Norge A/S

The development of methods to characterize the relative vibration tendency of alternative bottom-hole assemblies has enabled deliberate tool redesign to reduce vibrations. Tool redesign is most effective if applied early in the tool design cycle, where important configuration parameters are most easily adjusted. This paper outlines several design issues to resolve so that the next generation of tools has inherently lower vibration levels.

E-POSTERS:

Solving Stick-Slip Dilemma: Dynamic Modeling System Significantly Reduces Vibration, Increases ROP by 54%, A. Mohaideen, F.H. Bakar, N. Abd Rahman, Petronas Carigali; K.H. Tang, R. Maury, P. Cox, P. Le, H. Donald, B. Subroto, E. Brahmanto, Schlumberger

In mid-2010, Petronas Carigali started a drilling campaign of a green field development at the Malay Basin, offshore Peninsular Malaysia. The operator drilled a borehole through a challenging interbedded formation with hard dolomite stringers to access natural gas reserves in one of the fields. This paper details the collaboration and integrated approach of the service company in determining vibration issues and solving the problem, hence enhancing the drilling performance of future wells.

Pre-Job Modeling/Resulting Integrated BHA System Solution Sets Multiple ROP Records, North Field Qatar, M. Kieschnick, T. Jacob, B. James, Schlumberger; V. Karuppiah, R. Hamilton, Smith Bits, a Schlumberger Company

Drilling the 12¼-in. tangent section through thick carbonate lithology in Qatar’s North Field is exceptionally challenging. An FEA-based modeling system, rock strength identification program and CFD analysis was used to investigate several 12¼-in. PDC bit designs. The results of the simulations led to a new MSi716 design with back-up cutters strategically positioned on all blades to provide maximum durability in critical wear areas. Based on outstanding bit performance, the operator made these design changes a standard requirement for PDC bits in this application. The new design also helped standardize MSE values for future ROP gains.

TECHNICAL SESSION 8: RIGS, EQUIPMENT AND SMART TECHNOLOGY

Experience from Hardware-in-the-Loop Testing of Drilling Control Systems, T. Pedersen, Marine Cybernetics

Marine Cybernetics has finalized testing of drill floor control systems for seven rigs, involving nine different vendors. This paper presents experiences from these projects in terms of project execution, test timing and vendor cooperation and participation. Examples of typical observations are also presented.

Microwave Heating: A Feasible Alternative for Drilled Cuttings Drying in Offshore Environments, A.L. Martins, C. Sa, C. Panisset, Petrobras; M. Pereira, C. Ataide, Federal U of Uberlandia; R. Naufel, ONDATEC

Offshore discharge of drilled cuttings contaminated by non-aqueous fluids is subject of strict environmental regulations. Limits vary from country to country and are certainly associated to water depths. In many cases, deepwater operation regulations tolerate some amount of organic phase in the cuttings, while shallow water regulations generally signalize to zero discharge. Cuttings collected by the shakers are conventionally processed by centrifugal driers installed at each drilling vessel. The low efficiency and safety issues related to this process motivated the industry to pursue alternate drying techniques. Several alternatives are currently under analysis and some of them, such as thermal desorption processes, are already a reality. This article deals with the feasibility of microwave technology to remove the organic phase of these drilled cuttings.

Technological Innovation in Riser Tensioner Design Significantly Reduces Risk of Tensioner Overpull and Likelihood of Catastrophic Events, D. Trent, DTI LLC

Direct-acting riser tensioners are critical components in oil and gas drilling. What has become the accepted industry design standard for direct-acting tensioners, however, has inherent significant potential for overpull during normal operations. Overpull is directly linked to well head deformation and parting of the riser. Analysis of two assembly configurations proves that a solution exists to significantly diminish these risks.

E-POSTERS:

The Next Step in Reciprocating Mud Pump Technology, D. Berryhill, S. Shelton, Weatherford Gemoco

Recent developments in reciprocating mud pump technology provide added value for operators, drilling contractors and measurement while drilling/logging while drilling (MWD/LWD) service providers. Utilizing current proven conventional triplex (three-cylinder) pump designs and adding two cylinders provides an increased performance envelope, reduces pulsations on the rig structure and piping, and substantially increases data rate-transfer bandwidth during MWD/LWD operations.

Energy Storage for Electric Drilling Rigs, R. Thompson, K. Williams, J. Garaghty, KRW Technologies

This paper discusses the benefits from integrating large scale energy storage into gas powered electric drilling rigs. Benefits presented, which include fuel savings and emissions reductions, are based upon actual rig data with simulations of the proposed energy storage system. The energy storage technology is discussed as well as rig integration details.

BOP Performance – Developments and Consequences in a Post-Macondo World, J.P. Sattler, WEST Engineering Services

The Macondo disaster and other recent environmental incidents have resulted in an emphasis on the performance and reliability of BOP equipment and systems, specifically in the US Gulf of Mexico, but also in other regions. With the increase in industry scrutiny and regulatory requirements, this new emphasis has led to many improvements.

This paper will describe the practical effects of these changes from an independent, third-party verifier’s perspective, including perceived benefits and identified but unintended consequences, together with some possible future unintended consequences.

Dual Fuel and Dedicated Gas Engines Bring Cost and Environmental Benefits to the Oil and Gas Market, E. Henin, Caterpillar

A diesel engine fitted with an aftermarket add-on gas fuel system that provides a supplemental fuel source is generally called a dual-fuel system. Dual-fuel usage can lower fuel costs by as much as 70%, as compared to a standard diesel engine. While functional, these systems can create challenges for emissions and engine longevity.

In 2013, Caterpillar will offer dynamic gas blending, a comprehensive dual-fuel solution for land drilling and land production genset products. Caterpillar is also developing a solution for well fracturing applications.

TECHNICAL SESSION 9: LOST CIRCULATION AND WELLBORE STRENGTHENING

Practical Guide to Lost Returns Treatment Selection Based on a Holistic Model of the State of the Near Wellbore Stresses, R.D. Duffadar, F.E. Dupriest, S.C. Zeilinger, Exxon Mobil Corp

This paper presents a holistic model describing the relationship between the various common lost returns treatments, the degree to which each is capable of maintaining or enhancing borehole integrity, and corresponding methodology for selecting the appropriate treatments for given situations.

On the Shear Degradation of Lost Circulation Materials, P. Valsecchi, S.C. Zeilinger, Exxon Mobil Corp

In the present paper, a harder look is taken on the very concept of “shear degradation” and on its effectiveness in capturing the progressive size reduction of lost circulation material during circulation. Using dimensional analysis, the tendency of a material to degrade can be determined in advance. Density of the particles and suspending fluid, size of particles and fluid viscosity are examined and understanding the underlying physics enables the selection of a more shear-resistant engineered-particle drilling fluid, regardless of its application.

Wellbore Strengthening – Nano-Particle Drilling Fluid Experimental Design Using Hydraulic Fracture Apparatus, C.O. Nwaoji, G. Hareland, University of Calgary; M. Husein, University of Calgary Library – Swets; R. Nygaard, Missouri University of Science and Tech; M.F. Zakaria, University of Calgary

This paper introduces a novel LCM drilling fluid blend, which has been used successfully in the laboratory to achieve very impressive wellbore strengthening results in both permeable and impermeable formations for both water-based and invert emulsion- (diesel oil) based mud.

Numerical and Analytical Investigation of Smearing Effect in Casing Drilling Technology: Implications for Enhancing Wellbore Integrity and Hole Cleaning, S. Salehi, University of Louisiana; J. Mgboji, TESCO Corp; A. Aladasani, Kuwait Oil

This paper presents numerical and analytical models to optimize the parameters in casing drilling applications. Advance finite-element methods has been used to model the near wellbore area with considering various pipe/open-hole ratio and filter cake penetration in each simulation. The models will consider geomechanical, poro-elastic parameters of the formations, which are coupled with hydraulic model to consider drilling fluids properties. Analytical models were used to investigate the RPM, rotation mode and boundary conditions for the contact between casing and filter cake.

E-POSTER:

Analytical Model to Characterize “Smear Effect” Observed While Drilling with Casing, A. Kumar, University of Houston; R. Samuel, Halliburton

This study analyzes the theory behind the phenomenon of the smear effect mechanism using case studies and existing literature and proposes an analytical model to estimate the improvement in fracture gradient based on the drilling parameters and reservoir properties. The formation of the smear zone is addressed by broadly classifying this mechanism into four steps and modelling their contribution to the smear effect.

TECHNICAL SESSION 10: DRILLING AUTOMATION

Industry Analogies for Successful Implementation of Drilling Systems Automation and Real-Time Operating Centers, J.P. de Wardt, de Wardt and Co

It is very important to define current state and future desired state for data acquisition, processing, decision making and work flow in high-performance drilling operations. Understanding the difference between these two states provides the opportunity to guide the successful implementation of drilling systems automation (DSA) and real-time operating centers (RTOCs).

Various industry analogies will be evaluated for their applicability to DSA and RTOCs. The benefits and drawbacks of each will be highlighted. A guide will be developed to define best practices and relevant application for various well types from these analogies.

Autonomous Robotic Drilling Systems, K. Soendervik, K. Mikalsen, Robotic Drilling Systems

A full-scale autonomous robotized drill floor prototype has been run over the last two years in Norway, showing the potential of a much more cost effective and safer, unmanned drilling process. Furthermore, a simulated reality combined with a surveillance system is used for operation and visualization of the rig. This system also makes it possible to run the entire drill floor including the actual control system and simulated I/O, utilizing the final man-machine interface during the design faces of a drilling structure.

Robotic drilling systems will dramatically reduce the cost of drilling and reduce environmental impact. An autonomous robotic drill floor with a divergence system will eliminate human error.

Drill Pipe RFID: A Key Enabler in Drilling Automation, M. Grinrod, Minerals Group AS; M. Vonlanten, Trac-ID; R. Gaaso, Statoil

Radio frequency identification (RFID) for drill pipe has been developed to withstand temperature and shock/vibrations encountered in most wells. This paper outlines the technology development and status for application of RFID tags on drill pipe. Key challenges has been temperature limits, vibrations, wear and max tripping speed to pick up radio signals. Further, the paper outlines present software applications and future possibilities in software development.

Toward Drilling Automation: On the Necessity of Using Sensors that Relates to Physical Models, E. Cayeux, B. Daireaux, E.W. Dvergsnes, Intl Research Inst of Stavanger; F. Florence, National Oilwell Varco

Current topside and downhole instrumentation at the well site has been developed for the purpose of manually conducted drilling operations. The emergence of automatic drilling analysis software shows the limitations of today’s measurements capabilities. It is therefore time to analyze the requirements for on-site instrumentation in order to implement new, efficient drilling automation technologies.

Design Aid for Charting a Drilling Automation Road Map, M. Zamora, M-I SWACO; G. Hildebrand, Schlumberger Trinidad

A new design tool has been developed to chart a technology roadmap for drilling automation. The concept is based on a ternary chart, a triangular diagram that graphically depicts the composition of three-component systems. For drilling automation and perhaps automation in general, the components are automated equipment, human involvement and remote control. The relative contributions, by definition, must total 100%. In contrast, Sheridan’s well-known automation hierarchy considers only two components – automated equipment and human involvement.

Pipe-Handling Integration in Land Drilling Operations – Safety Review, Operational Drivers and Field Performance Feedback, T. Yost,  J. Heinen, National Oilwell Varco; M. Garvin, Patterson UTI

A fingerboard mounted pipe-handling system has been introduced, which differs from previous attempts to eliminate the manual interaction of a derrickman in land drilling operations. The machine was the outcome of unique consensus between the designer and the drilling contractor and provides a solution equivalent to manual tripping speeds that is strongly accepted by the drill crew.

Critical to operational success was tripping speed, simplicity and following the process that a manual operation is comfortable with. Eliminating the existing gripping devices and hoisting systems were one of many steps taken to improve the acceptance of a safety support tool on a working drilling rig.

This paper will examine a case study with Patterson UTI and an equipment manufacturer, which will show the performance feedback from a field proven solution. It will also address the barriers that hold this advancement back and has the possibility of greatly increasing safe land drilling operations.

E-POSTERS:

On the Path for Offshore Drilling Automation, A.L. Martins, Petrobras

This article deals with important steps, which compose the natural path aiming drilling automation, a topic foreseen by the industry as a key player for assuring the success of a huge number of projects to be developed in the Brazilian deepwater scenarios.

Automatic Mud Mixing, R.R. Nafikov, Statoil

The paper describes automation of drilling fluid mixing and is based on Msc thesis. The investigation is based on developed model with the help of MATLAB and SIMULINK softwares. The idea of the paper is to bring new ideas into the industry by presenting simplified explanation of the automation task.

TECHNICAL SESSION 11: EARLY DETECTION AND WELL CONTROL

Subsea Cap and Contain Method for a Deepwater Tension Leg Platform, J.A. Henley, T. Webb, Shell Exploration and Production; J. Soliah, Delmar

This paper will focus on four key aspects of Shell’s TLP containment plan. The combination of two existing proven techniques, the heave compensated landing system and the suction pile based pipeline initiation methods, have been adapted as the enabling technologies to meet these four key aspects. Additional methods and constraints have been identified for development and inclusion in the base response plan as needed.

Automated Alarms for Smart Flowback Fingerprinting and Early Kick Detection, T.H. Ali, S. Haberer, I.P. Says, C.C. Ubaru, M.L. Laing, Baker Hughes; O. Helgesen, M. Liang, B. Bjelland, Statoil USA

This publication focuses on the development and deployment of an automated flowback monitoring technology. The new solution aids drillers and drilling engineers by generating intelligent alarms relevant to current well conditions for early kick and loss detection, which can result in detecting kicks up to one connection earlier than the existing manual method. This paper demonstrates the benefits of the smart flowback fingerprinting over existing practices and how it can significantly reduce safety risks and NPT.

Detect Kicks Prompted by Losses and Direct Measurement Well Control Method through Networked Drill String with Along String Pressure Evaluation, D.M. Veeningen, National Oilwell Varco

This paper describes efficient detection of well control events, both in underbalanced and overbalanced conditions, which is especially relevant for deepwater operations as the reaction time is significantly less than with surface BOPs. A methodology is offered to detect the annulus fluid level in conditions of unknown hydrostatic column height and fluid density through the use of discrete annular pressure acquisition along a networked drill string. The downhole real-time pressure evaluation also provides for monitoring of the gas migration to manage annular filling, while losses continue to be experienced. Further, the direct measurement method is offered for well control based on constant bottomhole pressure through downhole pressure measurements independently from surface measurements.

Advances in Real-Time Event Detection While Drilling, R. Wong, Q. Liu, M. Ringer, J. Dunlop, J.C. Luppens, C. Chapman, H. Yu, Schlumberger

New sensors and enhancements to the Bayesian inference techniques significantly improve event detection and its extension to more complex scenarios making them more suitable for application to automated systems.

Although applicable to a broader set of events, improvements to these previous event detection methods are described with a focus on a new drill string washout detection module. The new module combines a method of detection of on-bottom drilling with enhanced signal characterization of standpipe pressure and flow to create an algorithm that can effectively handle drilling with a motor.

Calibrating Automated Event Detection Algorithms for Real-Time Wellbore Stability Applications, S. Wessling, A. Bartetzko, P. Tesch, T. Dahl, Baker Hughes

After an introduction into drilling automation and wellbore stability analysis, this paper presents different approaches for the automatic analysis and interpretation of formation evaluation logs for the detection of drilling events. These algorithms were extensively tested on more than 30 data sets. The approaches are beneficial to monitor the wellbore conditions and to deliver alarms about potential overpressure regions and breakouts on the formation wall. Observations obtained from testing are put into the context of developing an automated alarm and advice-generation system. Experience with alarm generation within other communities and its comparison to the oil and gas industry will be highlighted.

Feasibility Study of Applying Intelligent Drill Pipe in Early Detection of Gas Influx during Conventional Drilling, A. Karimi Vajargah, S.Z. Miska, M. Yu, University of Tulsa; R. Majidi, BP America

This paper proposes a technique for early gas detection during conventional drilling by utilizing intelligent drill pipe. For this purpose, different involved flow regions in the annulus are identified and modeled based on the conservation equations. A numerical scheme and transient gas kick simulator are developed to solve the equations. Sensitivity analysis is conducted for various parameters such as influx sizes, mud flow rates and wellbore geometry.

E-POSTERS:

SPE/IADC 163442: A test facility is used to quantitatively analyze the results of negative pressure tests. No standard procedures currently exist for conducting and interpreting negative pressure tests, which recent industry experience has shown could have disastrous results if misinterpreted.

SPE/IADC 163442

Full-Scale Testing Shows Advantages of a Quantitative Approach to Interpreting Negative Pressure Tests, R. Rahmani, J.R. Smith, D.A. Bourgoyne, Louisiana State University

Negative pressure tests are an important step in proving well integrity for some well operations. Although the concept is straightforward, there are no standard procedures for conducting and interpreting negative tests. Recent industry experience has shown the potential for these tests to be misinterpreted with disastrous results. This paper describes proper quantitative interpretation of both successful and unsuccessful tests demonstrated on two full-scale test wells.

Swab and Surge Effects Due to Heave of Vessel in Deepwater Wells: Model Development and Benchmarking, P.V. Suryanarayana, S. Chandrasekhar, W. Bacon, Blade Energy Partners; B. Toldo, Woodside Energy

In this paper, we present the development of a semi-analytical approach to model transient pressure problems. The transient pressure problem is solved using the method of characteristics. The method is extended to include power-law fluids. Arbitrary flow ports can be situated anywhere in the string, with either one or two-way flow. Both open- and closed-end pipes are considered, in addition to nozzles at the pipe end. Temperature and pressure effects on the compressibility and elasticity of the formation, are considered. The approach can accept any arbitrary forcing function at surface, either as a periodic wave or as a tabulated time function of displacements.

Deepwater Well Control – An Important Way Forward, C.P. Leach, J.M. Mounteer, Argonauta Drilling Services LLC

Following Macondo (and other well control incidents), great strides have been made with respect to well control, and much discussion and reflection has taken place.

This paper looks at the processes that must be conducted and gives examples of these. In particular, this requires a deep understanding of the interactions of real reservoir fluids (gas, volatile oil) with typical drilling mud which will be oil based. Examples of what will be seen for these combinations are given along with the resultant detailed solutions/approaches/procedures.

TECHNICAL SESSION 12: MANAGED PRESSURE AND UNDERBALANCED DRILLING

Utilizing Wired Drill Pipe Technology During Managed Pressure Drilling Operations to Maintain Direction Control, Constant Bottomhole Pressures and Wellbore Integrity in a Deep, Ultra-Depleted Reservoir, J.C. Rasmus, Schlumberger

A recently drilled well into an underpressured reservoir provided an opportunity to demonstrate the applicability of wired drill pipe (WDP) to deliver the required measurements and maintain the proper directional control while keeping the well fluids under control. During WDP operations, both the traditional mud pulse transmission and the new WDP transmission methods are available, providing 100% data transmission reliability.

Anatomy of MPD Well Failures: An Investigation into the Sensitivities to Success on a Series of Difficult Wells, B. Dow, L.D. Smith, A. Voshall, P.N. Spriggs, Schlumberger

The authors will look at a series of uniquely different wells, all employing MPD but for different technical reasons. Exploration drilling through challenging pore pressure ramps, high angle and horizontal wells across formations highly sensitive to pressure cycling, PMCD wells and wells drilled through very narrow pore pressure and stability window across depleted zones. Analysis of the detailed design during the planning phase, with the information that was known at that time, will lay the foundation of how each well was executed. In each case, the desired outcome was not achieved for reasons unique to the respective project falling outside the core MPD engineering design.

Analysis of the failures will identify key lessons learned and show progressive continuous improvement that has made MPD critical to success on future projects and raised confidence of the users.

Successful Application of Concentric Casing Nitrogen Injection to Overcome Drilling Challenges and Deliver a Record Horizontal Well in the Tecominoacan Field, M. Salazar, R. Rodriguez, R. Franco, G. Gamez, PEMEX; J. Flor, C. Gonzalez, J. Rueda, W. Colombine, J. Tilley, Halliburton

The Jujo-Tecominoacan field is part of the Bellota Integral Active in the Pemex South Region. It is located in the state of Tabasco, northwest of the city of Villahermosa. Several drilling challenges exist in this field, including horizontal drilling in dolomites with a high compressive strength, under-pressured reservoir requiring the use of a biphasic drilling fluid with nitrogen injection through concentric casing annular space, crossing through Cenozoic members of abnormally high pressure that require managed-pressure drilling, drilling through inverse geologic faults, and proximity to a salt dome.

The service company and operator formed an interdisciplinary team to meet the challenges of constructing the deepest and longest concentric injection horizontal well, with a total depth of 6,611 meters. A horizontal production section was drilled to a length of 862 meters, with an average inclination of 84°. The main objective was to maximize production in the fractured carbonate formations from the lower Cretaceous to the Kimmeridgian Jurassic formation.

The Application of Advanced Gas Extraction and Analysis System Complements Early Kick Detection & Control Capabilities of Managed Pressure Drilling System with Added HSE Value, B. Patel, T.D. Cooper, Weatherford; W. Billings, Talisman Energy

The paper will discuss the successful application of an advanced gas extraction system utilizing an innovative membrane technology and high speed gas chromatograph to improve surface gas detection and analysis capability during MPD operations with a micro-influx control system. Various tests were carried to validate the advanced gas detection system’s capability to detect and analyze gas in mud. During hydrocarbon influx circulation, data from the advanced gas detection system helped to plan the strategy to handle gas on surface. Test data was validated with the results from the real wells.

Implementation of PMCD to Explore Carbonate Reservoirs from Semisubmersible Rigs in Malaysia Results in Safe and Economical Drilling Operations, I. Abd Aziz, M. Jayah, Z. Drus, Petronas Carigali; F. Rojas, P. Spriggs, A. Voshall, G. Parayno, Schlumberger

Implementing a variant of the managed pressure drilling called pressurized mud cap drilling (PMCD) has allowed the Petronas Carigali drilling team to reach targeted total depths on several wells.

By successfully implementing the PMCD technique, the operator was able to reduce risk and reach the exploration targets successfully. Lessons learned surrounding operational techniques, pressure limitations of the drilling system and continuous training and development of the operating team have expanded the application for the operator.

The authors present case histories of wells drilled to date and key lessons learned as the operator evolves to improve execution of PMCD.

E-POSTER:

Application of UBD and MPD Techniques to Solve Challenges and Optimize Drilling through the Quintuco and Vaca Muerta Formations in the Neuquén Basin, N. Gomez, YPF; O. Montes, R. Leon, J. Benedetti, I. Poletzky, A. Miller, Halliburton

Eleven wells have been drilled in the Neuquén basin, applying UBD and MPD techniques. This paper describes the implementation of these techniques when drilling the 8 ½-in. and 6 ¹/8-in. sections, along with results, including the evaluation of reservoir potential while drilling, estimation of formation pressures, minimizing formation damage, as lower-density drilling fluids are being used, reduction of NPT, and being able to safely reach the planned TD. Field data is used to illustrate the challenges encountered and results obtained. Lessons learned and how the drilling process has been, and would be, optimized are also discussed.

TECHNICAL SESSION 13:  MANAGEMENT AND HSE

Drilling Systems Automation – Preparing for the Big Jump Forward, J.P. de Wardt, de Wardt and Co; M. Behounek, Apache Corp; C.D. Chapman, Schlumberger; D. Putra, Schlumberger Cambridge Research

Results and knowledge shared from the SPE Workshop held in Vail, Colo., in July 2012 (Well Construction Automation – Preparing for the Big Jump Forward) will be presented.

Macondo Litigation and its Impact on the Offshore Industry – What Every Operator, Driller, Service and Supply Company Needs to Know!, C. Moomjian Jr, CAM OilServ Advisors

Macondo is a “game changer” that will substantially impact the industry from an operational, contractual and risk management perspective.

Decisions in the Macondo litigation that are pending in a US District Court in New Orleans will impact operators, drillers, service and supply companies in respect of pollution liability in general and contractual indemnity/release provisions in particular.

This paper reviews and analyzes landmark court decisions on summary judgment motions regarding interpretation, applicability and enforceability of the indemnification provisions and releases in the drilling and cementing contracts that were applicable to the Macondo well.

Operational Control and Managing Change: the Integration of Non-Technical Skills with Workplace Procedures, J.L. Thorogood, Drilling Global Consultant LLP; M.T. Crichton, People Factor Consultants

The paper will outline common pitfalls and problems associated with managing operations. It will draw on existing operational decision-making literature and the authors’ experience researching these problems and working with operations teams. It will discuss the non-technical skills required to manage operations effectively, the organizational structures that are most operationally effective and describe techniques for training teams and helping to develop the competencies to manage operations safely and deal effectively with uncertainty.

Delivering Consistent Top-Quartile Drilling Performance without Compromise, M. Cockram, F. Stewart, A. Ritchie, BG Norge; F. Hevrøy, S. Bjarne Barke, Seadrill

BG Norge embarked on a five-well exploration, appraisal and development campaign with the West Alpha between 2009 and 2011. The rig was part of a three year, 17-well rig sharing consortium that involved four other operators. Following and expanding upon the management approach outlined in IADC/SPE 87118, BG Group developed a strong relationship with the rig contractor, Seadrill, and delivered exceptional results.

This paper will outline the management process taken by BG Group and Seadrill that enabled improved performance.

Advanced Dynamic Training Simulator For Drilling as Well as Related Experience from Training of Drilling Teams with Focus on Realistic Downhole Feedback, S. Ødegård, Ø. Mehus, Oiltec Solutions; R. Rommetveit, eDrilling Solutions; B.T. Risvik, Statoil ASA; K. Bjorkevoll, SINTEF Petroleum Research

The paper presents a highly advanced training simulator that combines an advanced topside simulator with a dynamic downhole simulator with an advanced transient integrated hydraulics and thermal wellbore model and a dynamic torque and drag model. The simulator is aimed at drilling and well operations, and is able to handle all normal operations, including high-pressure, high-temperature wells, through-tubing rotary drilling, extended reach drilling and managed pressure drilling.

Dust Collection System for Personnel Health During Fracturing Operations, M.L. Boucher, T. Anderson, C. Hooker, A. Uttecht, National Oilwell Varco

The rapid expansion of the hydraulic fracturing industry has in some places outpaced necessary regulations and equipment for worker safety, especially dust control. A dust collection system has been developed to target specific points, including the hopper and blender where sand particles are likely to be released into the air.

With a system in place that meets OSHA standards, the threat of silicosis is eliminated from the hydraulic fracture process and unconventional development is made safer for everyone involved. This paper will discuss the dust collection equipment, its deployment and integration with existing equipment, and field results.

E-POSTERS:

From Research to Practice: A Story of an Actionable Safety Leading Indicator Index, J. Stough, IHS

For the past several years, a group of global energy companies, including nearly all of the super majors, has been working on a research initiative with a common mission to find an actionable leading indicator index to drive safety and eventually overall sustainability performance.

This paper will review the leading indicator research findings drawn from analyzing a large energy industry data set.

Evolution of Drilling and Completions in the Slave Point to Optimize Economics, J. Hollan, Packers Plus Energy Services; B. Schaab, N.B. Lerner, Penn West Exploration

This paper will detail the evolution of drilling and completion practices and technologies utilized to optimize economic development of the Slave Point carbonate formation in northern Alberta. The Slave Point was originally developed in the 1960s with vertical wells, but success depended on localized reservoir quality. Horizontal drilling and multistage fracturing completions have opened up lower-porosity regions enhancing recoveries from zones that were once deemed uneconomic.

Investing in Greener Growth: Making the Business Case for Environmental Solutions, L. Brantley, J. Kent, L. Sallee, National Oilwell Varco

This paper will analyze the business case for environmental solutions from the perspective of an equipment manufacturer and technology and services provider.

Remote Operations Center – An Efficient and Highly Competent Environment to Optimize Operational Performance and Reduce Risk, A.K. Thorsen, E. Saeverhagen, N. Spanovic, J. Dagestad, J. Fraser, Baker Hughes

To illustrate the data gathering and risk mitigation aspect of a remote operational center, the BEACON center concept is used to display the workflows, data analysis and feedback to the rigsite for maximum progress and minimum risk. Areas from subsurface understanding through drilling optimization and BHA reliability will be covered.

SPE/IADC 163451: Weatherford’s 9 7/8-in. x 12-in. Defyer DPA 6413 drillable casing bit was used in a drilling-with-liner operation in a deepwater block of Mississippi Canyon.

SPE/IADC 163451

A Collaborative Approach for Planning a Drilling with Liner Operation, S.M. Rosenberg, T. Cummins, T. Dunn, M.Z. Tan, Weatherford International

This paper will illustrate the collaborative approach an international oilfield services company used for planning a drilling with liner (DwL) operation to isolate a 6.5 ppg depleted sand interval in a deepwater block of Mississippi Canyon. Early collaboration between the service company and operator identified DwL technology as the core technology to meet the operator’s well objectives.

TECHNICAL SESSION 14:  BIT TECHNOLOGY

Pointing Toward Improved PDC Bit Performance: Innovative Conical Shaped Polycrystalline Diamond Insert Achieves Higher ROP and Total Footage, M. Azar, A. White, Smith Bits, a Schlumberger Company; M. Taylor, Schlumberger

Vibration induced impact damage can significantly reduce PDC bit/cutter life in hard/abrasive and interbedded formations. To develop a more stable fixed cutter bit for these difficult lithologies, an R&D initiative was launched to investigate new insert designs and experiment with count/placement to improve drilling efficiency and mitigate vibration. The research yielded an innovative conical shaped polycrystalline diamond insert (PDI) with an ultra-thick synthetic diamond layer.

It was run in a North Dakota 8.75-in. vertical section through a highly mixed sequence of formations, where the objective is high ROP and to reach KOP in one run. The bit improved ROP over a longer interval drilled compared to PDCs used in offsets. Additional testing is underway to further evaluate PDI potential and how it can used to improve PDC bit performance.

Large Diameter (24 – 26 in. OD) PDC Bit Drilling in Deepwater Gulf of Mexico, P. D’Ambrosio, E. Prochaska, R. Bouska, NOV Downhole; S. Hart, BP; D. Tinsley, Total Energy Services

This paper focuses on the different aspects of large diameter PDC bit drilling in the deepwater Gulf of Mexico and the considerations that have been used to optimize these applications. Conclusions and recommendations will be based on the analysis and evaluation of numerous runs as well as specific case histories. These recommendations will provide a basis for operators to justify a lower cost per foot approach to these large diameter applications.

Simulation of Single Cutter Experiments in Evaporites Through Finite Element Method, I.M. Reyes Martinez, S. Fontoura, N. Inoue, C. Carrapatoso, Pontifical Catholic University of Rio de Janeiro; A. Lourenço, D. Curry, Baker Hughes

Single-cutter laboratory experiments are used for evaluating the drill bit – rock interaction mechanisms. These experiments can be simulated through numerical methods to analyze particular conditions of each borehole drilling operation. This paper describes the use of the finite element method for modeling single-cutter experiments in evaporites using a single cutter.

Innovative Rolling PDC Cutter Increases Drilling Efficiency Improving Bit Performance in Challenging Applications, Y. Zhang, R.N. Baker, Y. Burhan, J. Shi, C. Chen, Smith Bits, a Schlumberger Company

Extended footage capabilities and high rate of penetration give PDC bits a distinct advantage over rollercone in many applications. However, the fixed PDC element creates an inherent limitation because only a small portion of the cutter contacts the formation, and as the cutters wear/chip, drilling efficiency declines. The industry requires new technology that would effectively utilize the entire diamond cutting edge to reduce frictional heat/wear, while increasing drilling efficiency and bit life.

A Breakthrough Performance for an Inland Application with a Hybrid Bit Technology, M. Di Pasquale, E. Calvaresi, Baker Hughes; S. Pecantet, NV Turske Perenco

This paper describes a field experience for a new generation of hybrid bit that is based on proven PDC bit designs with rolling cutters on the periphery of the bit. A hybrid bit can drill shale and other plastically behaving formations up to three to four times faster than a roller-cone bit by being more aggressive and efficient.

A field result compares the performance of hybrid bits with conventional PDC and roller-cone bits used on an offset well, inland application.

New Generation Thermally Stable Cutters Deliver High Penetration Rates while Maintaining Durability in the Troll Field, Norway, T.S. Roberts, E. Ludvigsen, M. Bailey, O. Hareid, National Oilwell Varco; C.O. Irgens, Statoil

Following an in-depth study, the drill bit design evolved following several iterations that included computational fluid dynamics to optimize fluid impingement angles and reduce fluid induced shear stress on both the bit body and cutter substrates.

The successful execution of this design with new cutter technology has proven that the combination of improved thermal resistance, with a more efficient cutter geometry, enables the cutters to stay sharp drilling through the hardest stringers and with greater durability to complete the section. The improved designs have now drilled further and faster than any previous attempts.

E-POSTERS:

Innovative Hybrid Bit Mitigates Geological Uncertainties, Improves Drilling Performance in Brazilian Pre-Salt Formations, S. Hbaieb, Schlumberger; M.G. Azar, Smith Bits, a Schlumberger company

An innovative hybrid bit design has been successfully applied offshore Brazil to mitigate geological/formation uncertainties in pre-salt formations and eliminate several trips for new bits. This paper will focus on case studies where pre-salt carbonate lithology is non-uniform with a high occurrence of silicate inclusions. The authors will discuss drive system and drilling parameters selection that were critical to achieving the desired performance.

Novel Drill Bit Materials Technology Fusion Delivers Performance Step Change in Hard and Difficult Formations, A. Garcia, H. Barocio, R.W. Weeden, National Oilwell Varco; R.A. Quijada, ENI

New drill bit technology capable of drilling these lithologies and performance requirements is unmistakably needed. This paper describes the development of novel drill bit technology aimed at this requirement. This technology is born through the fusion of existing bit technologies; fixed cutter and impregnated diamond and a design philosophy providing greater versatility in drilling a wider range of harsh lithologies, not typically drilled entirely with PDC bits. This novel design philosophy includes optimized cutter placement and exposure of diamond impregnated mix applied in critical areas of the bit.

TECHNICAL SESSION 15: DRILLING AND WELL TECHNOLOGIES

A Summary Of Wired Drill Pipe (IntelliPipe) Field Trials And Deployment in BP, S.T. Edwards, C.J. Coley, BP

The first use of IntelliPipe in BP was in early pre-commercial field trials in seven Oklahoma wells in 2004 to 2005. This paper includes a discussion of the challenges and solutions in areas, such as hardware modifications (e.g. wiring top drives, reamers, jars), deployment, logistics, reliability, pipe handling and other operational modifications, surface connectivity and dataflow to shore. The bulk of this paper discusses wired pipe enabled applications and explores some of the opportunities for using wired pipe in the pursuit of safe and reliable wells.

Annular Pressure Build-up Analysis and Methodology with Examples from Multifrac Horizontal Wells and HPHT Reservoirs, J.E. Bellarby, Canmore Consulting; S.S. Kofoed, Maersk Olie og Gas AS – Maersk Oil; F. Marketz, Shell

Annulus pressure build-up (APB) remains an important design consideration for many wells, not just deepwater or subsea wells. This paper outlines a step-by-step methodology for analyzing APB issues applicable to any type of well. Analyses of APB scenarios for horizontal wells in both a tight chalk oil reservoir and an HPHT gas-condensate reservoir in the Danish Sector of the North Sea are used to demonstrate the methodology.

Analysis of Bridging Scenarios During Blowout Events, S.M. Willson, Apache Corp

In this paper the analysis methodology presented in SPE 156330 “A Wellbore Stability Approach For Self-Killing Blowout Assessment” is applied to realistic blowout scenarios. The paper demonstrates how analyses of borehole stability and solids transport can be applied to the problem of blowout risk assessment. This is a technology area that has been previously neglected by petroleum geomechanics practitioners.

Comparing Soft-String and Stiff-String Methods Used to Compute Casing Centralization, L. Gorokhova, A.J. Parry, N.C. Flamant, Schlumberger

A comparison between measured and calculated casing centralization in several field cases is presented. The casing eccentricity was measured after the cement placement using recently developed ultra-sonic logging tools and diagnostics. Discrepancies between analytical and numerical calculation methods are analyzed, then advantages and disadvantages to each method are discussed. Based on the results of the calculation methods, an optimal approach to centralize casing can be proposed.

Multiwell Thermal Interaction: Field Data Validation of Transient Model for Closely Spaced Wells, A.R. McSpadden, Altus Well Experts; A.J. Gunn, C. Dunagan, ConocoPhillips UK

Wellbore temperature logs and associated field history from an HPHT condensate North Sea platform are presented, which validate accuracy of a transient multiwell thermal interaction model.

Empirical data including field history presents an opportunity to understand this important topic. Prior to this current work, industry discussion of multiwell thermal interaction or cross-heating has been largely anecdotal. Model validation against field data is necessary to achieve full understanding of the physical system and provide confidence in predictive capability.

Obtaining Both Horizontal Stresses from Wellbore Collapse, B.S. Aadnoy, E. Kaarstad, University of Stavanger

A wellbore that collapses during drilling or during production usually assumes an elliptical shape because of anisotropic stress loading. Recently an exact solution for tangential stress of an elliptic wellbore was derived. This model couples the ovality of the wellbore to the stress anisotropy. The rock strength plays an important role, such that a strong consolidated rock will have less ovality than a less consolidated rock.

This new solution has many practical applications, first of all to develop fracture and collapse curves for deviated wells, but also for sand production, well stimulation and reservoir subsidence. The paper will present several field cases, both from Brazil and Norway, demonstrating improvements in practical wellbore stability analysis.

E-POSTERS:

Living the HSE Vision & Values – Delivering Success in an Environment of Significant Change; Inside and Outside the Organization, G.P. Siokos, George Siokos Consulting; J.M. Karish, Ensco

Ensco is an international drilling contractor which has experienced significant growth since its creation only 25 years ago to its current position as the second largest offshore drilling organization worldwide.

Despite this growth, and while being challenged by many issues from inside, such as integration, and from the outside, such as having to do business in a difficult market and in many different national cultures, it has achieved acknowledged excellent performance.

This paper and presentation will describe the processes and the leadership that has driven this success.

Pore Pressure Evolution, Core Damage and Tripping Out Schedules: A Computational Fluid Dynamics Approach, I. Zubizarreta, M. Byrne, Y. Sorrentino, E. Rojas, Senergy Ltd

There is a lack of clarity and consensus regarding tripping schedules impacting on both the integrity of the core and the economics of coring/drilling operations.

With this high daily rig costs, a more scientific and quantitative approach, tailored to each case is required. The application of computational fluid dynamics (CFD) is described to model transient pressure differentials in a gas reservoir core during retrieval.

This study demonstrates that CFD can accurately predict the pressure differentials created in a core during retrieval to surface and enables proper planning of tripping times based on the assessment of potential damage by pressure release.

TECHNICAL SESSION 16: DIRECTIONAL DRILLING

Drilling Unconventional Shale Wells Remotely, C. Gongora, O. Awan, J.F. Mota, Shell; E. van Oort, University of Texas Austin

After a successful pilot application in the Haynesville Shale, Shell Upstream Americas is currently transferring all of its directional drilling, MWD/LWD and geosteering operations in the Americas to remote drilling centers. In this paper, we provide all the learnings and best practices associated with the implementation of the remote drilling centers for unconventional shale drilling operations.

This includes a review of the technologies involved, the new workflows that were implemented and changes that were managed, how the “people issues” were addressed, and what results – including a three-fold reduction in staff at the rigsite and 90% improvement in the speed of decision making – were obtained. In addition, we will comment on the potential to broaden the approach to other drilling and completion operations (e.g. frac jobs, offshore drilling, etc).

Innovative Drilling System with a Built-In Kick-Off Ramp Allows Dependable Curve Building in Granite Wash Formation, P.C. Desai, S.N. Swadi, A.J. Klassen, Schlumberger; G.A. Bruton, J. Talkington, Chesapeake Operating

Granite Wash formation in Beckham County, Oklahoma and surrounding areas presents a number of challenges in drilling build section from a vertical openhole to form a horizontal lateral in the productive zone. The formation is hard and abrasive and it is difficult to anticipate rock properties downhole from one well to the next. This erratic nature of the formation results in unpredictable performance by the steerable drilling assembly and drill bits particularly in the build section below 12,000 ft.

To remedy the issue, an innovative drilling system was developed, which provides a dependable kick-off ramp and a firm beginning in initiating the build section without having to rely on the drilling BHA’s fulcrum point.

The authors will describe in detail the system components and the running procedure. They will also discuss system performance in the field along with realized benefits to the customer, lesson learned, planned improvements and the way forward activities.

Automated Decision Support to Enhance While-Drilling Decision Making: Where Does it Fit within Drilling Automation?, A.G. Sadlier, I.P. Says, Baker Hughes; J.E. Webster, Verdande Technology

A case history is presented on the use of case-based reasoning to enhance automated advice by identifying hazardous situations in advance that enabled successful corrective action implementation.

Extended Reach Drilling – New Solution with a Unique Potential, O.M. Vestavik, Reelwell

The Reelwell Drilling Method (RDM) is a multi-purpose drilling method with a unique flow arrangement. RDM enables improved hole cleaning and improved downhole pressure control and has features for extended reach drilling (ERD). The development of RDM started in 2004 and was qualified for commercial use following the successful pilot well for Shell and Statoil.

In January 2011, Reelwell started a large joint industry project called “ERD beyond 20 km,” supported by Shell, TOTAL, Petrobras and RWE Dea and the Research Council of Norway. The project goal is to verify the extreme ERD capability, beyond conventional reach.

The paper will cover the current status of the RDM from this development and present simulation and test results to verify the ERD potential. Further, an outlook for the extreme ERD capability of the RDM technology will be presented.

Novel Technique to Drill Horizontal Laterals Revitalizes Aging Field, S.D. Cinelli, A.H. Ahmed Kamel, University of Alaska Fairbanks

This paper outlines the recompletion of a portion of a 40-year old field using radial jet drilling. It is a carbonate reservoir with low permeability. The combination of low permeability, low productivity of traditional vertical completions in thin net pay and lack of low cost techniques to increase production caused production to dwindle.

After acquiring the lease in late 2010, the operator implemented a program of radial jet drilling and acid/nitrogen fracturing to increase field production. The operator was able to realize nearly a five-fold production increase after the work was complete.

Offshore Angola Deepwater ERD: Drilling Optimization Case History, H. Jerez, R. Dias, J.D. Tilley, Halliburton

Extended reach step-out wells provide challenging opportunities for the drilling team. A deepwater extended reach well for a major operator in Angola required a tangent section in a soft formation maintaining a 70° drift angle for 11,000 ft in a single hole interval. The production hole section required steering the well into the best section of the pay-zone. To accomplish the drilling objectives, an exhaustive, detailed plan with multiple scenarios was required before the well was drilled.

E-POSTERS:

Torsional Resonance – An Understanding Based on Field and Laboratory Tests with Latest Generation Point-the-Bit Rotary Steerable System, L.A. Lines, D.R. Stroud, V. Coveney, Weatherford

The paper describes a high frequency, high amplitude type of torsional vibration not previously observed with point-the-bit rotary steerable systems. This particular type of torsional vibration is of such high frequency that conventional logging rates are insufficient to detect it. The phenomena could be much more widespread than currently recognized.

Pivot Stabilizer Innovations for Point the Bit Rotary Steerable Systems Result in Improved Drilling Performance for Specific Applications, C. Jeffery, M. Bailey, R. Rivera, M. Coss, National Oilwell Varco

To achieve optimal directional response and maintain superior stability in specific applications, pivot stabilizer design, selection and evaluation are crucial when used as a near-bit pivot on point the bit rotary steerable systems. This paper describes the progression of stabilizer design through simulations, facility testing, field testing and in-service performance tracking. Extensive testing and performance evaluation has allowed development of predictable directional response, bit/drill string stability, and other drilling performance metrics of specific stabilizer designs to be rationally chronicled for continual innovation in pivot stabilizer design.

A New Measurement-While-Drilling System Designed Specifically for Drilling Unconventional Wells, S.J. Krase, Navigate Energy Service

The recent drilling explosion targeting unconventional reservoirs has created extraordinary opportunities for growth in the oil industry and has also presented many challenges for the MWD industry.

A new generation of MWD systems has been created specifically for the unconventional drilling environment. Starting with a blank sheet of paper enabled the development of a fit-for-purpose MWD system that meets the technical and financial requirements for drilling these unconventional reservoirs.

The Combined Application of Azimuthal Deep Resistivity and Multilateral Technologies Maximizes Extra-Heavy Oil Recovery and Improves Production Rates in Junin Block of the Orinoco Oil Belt, O. Mendez, Halliburton

PDVSA Petrocedeño has encountered challenges in achieving higher production rates and maximizing extra-heavy oil recovery from complex reservoirs in Junin block of the Orinoco Oil Belt of Venezuela. Horizontal wells in this area show poor production results.

The YC36 well plan included drilling two laterals with the geosteering technique, which would improve the production rate to an estimated 343 BPD. This paper describes the combined application of multilateral and geosteering technologies in the YC36 well, as well as details about the results of the application.

New Technology Enhances Rotary Steerable System Performance and Provides Superior Borehole Quality and Reduces Vibration in Rotary Steerable Applications, D. Herrington, National Oilwell Varco; S.P. Barton, NOV Downhole Tools and Pumping

Rotary steerable systems (RSS) have become a standard technology in today’s drilling industry. With the advent of the RSS, have come new challenges associated with well bore quality, steerability and vibration mitigation. The need for technology that supports and compliments RSS operations is the next logical step in providing optimized RSS drilling services.

This paper provides supporting documentation that a technology proven to improve lateral stability while mitigating damaging downhole vibrations is assisting a major operator in maximizing the performance of their RSS operations and allowing operators a new level of performance and cost savings.

TECHNICAL SESSION 17: FLUIDS, CUTTINGS TRANSPORT AND CUTTINGS PROCESSING

The Use of IntelliPipe Conveyed Along String Annular Pressure Measurements While Drilling High-Angle Offshore Wells in Trinidad, C.J. Coley, S.T. Edwards, BP

This paper discusses the use of annulus pressure measurements taken at multiple points along the drill string as an enabling technology for monitoring the transport of drilled solids in near real time. Techniques developed internally to convert the significantly increased quantity of data into information (including methods for the processing and analysis of measurements taken during high-density sweeps and ECD fingerprinting) are presented. Other practical concerns, such as sensor placement, sensor accuracy and the importance of a robust IT network to handle the flow of data, are also discussed.

High Performance Water-Based Drilling Fluids – An Environmentally Friendly Fluid System Achieving Superior Shale Stabilization While Meeting Discharge Requirement Offshore Cameroon, A. Witthayapanyanon, A. Denax, R.G. Bland, Baker Hughes; J. Leleux, R. Morvan, A. Pomian, J. Segouffin, Perenco

With a regulatory environment moving toward zero discharge, the cost of the waste management with invert emulsion drilling fluids is diminishing their attractiveness. Therefore, when the operator was planning to drill their first well offshore Cameroon in the BAF field, they evaluated high performance water-based mud system (HPWBM) alternatives as these offered the potential advantage of offshore discharge of drilled cuttings and effluents due to absence of oil contamination and lowered waste management costs.

This paper documents the advantages of the HPWBM chosen, its design and performance characteristics in stabilizing reactive clays/shale.

A New Fluid Management System and Methods for Improving Filtration and Reducing Waste Volume, Introducing a Step Change in Health and Safety in the Mud Processing Area, A. Kroken, J.K. Vasshus, Cubility AS; T. Omland, B. Aase, Statoil

Effective removal of contaminants from drilling fluids is widely accepted as a key factor in achieving best-in-class drilling performance and reducing fluid cost. Current shaker technology reflects incremental advances in functionality related to size, g-forces and screen technologies. This paper describes the development, qualification and field testing of an alternative solids control solution that provides advances on several aspects that conventional equipment is infested with. The findings presented are based on results obtained both during the qualification process and field testing.

Real-Time Evaluation of Hole Cleaning Conditions Using a Transient Cuttings Transport Model, E. Cayeux, Intl Research Inst of Stavanger; T. Mesagan, S. Tanripada, M. Zidan, Statoil; K. Fjelde, University of Stavanger

During a drilling operation, the real-time analysis of surface and downhole measurements can give indications of poor hole cleaning. Nevertheless, it is not always intuitive to understand how and where the cuttings are settling in the borehole, because the transportation of cuttings and the formation of cuttings beds is largely influenced by the consecutive series of actions performed during the operation. Using a transient cuttings transport model, it is possible to get a continuously updated prognosis of the distribution of cuttings in suspension and in beds along the annulus.

This information can be of prime importance for taking decisions to cure and prevent poor hole cleaning conditions. This paper presents how this model has been used to monitor two different drilling operations in the North Sea.

Novel Drilling Fluid Design Enables Successful Drilling of Depleted Carbonate Reservoirs Offshore Republic of Congo, A.A. Thomas, M-I SWACO; J. Leleux, Perenco

This paper details case histories from the Emeraude field 13-well drilling program, focusing on the design elements of the novel drilling fluid. An air-energized drilling fluid was developed that enabled all 13 wells in the development program of the Emeraude field, offshore Pointe-Noire, Republic of Congo to be drilled with only 19-bbl downhole losses and zero non-productive time. The energized air-surfactant polymer drilling fluid used on the Emeraude field has potential for drilling similar depleted carbonate reservoirs in West Africa.

Best engineering practices adopted to drill these challenging wells also are described in detail.

Evaluated of Filter Cake Mineralogy in Extended Reach and Maximum Reservoir Contact Wells in Sandstone Reservoirs, B.S. Bageri, A. Al-Majed,  A. Ul-Hamid, A. Sultan, King Fahd University of Petr and Min; S.H. Al-Mutairi, Saudi Aramco

This study will focus on an aspect which was not fully covered in the literature: the chemical characteristics of filter cake formed in the horizontal section, from its heel to its toe. High pressure fluid loss test were performed using real drilling fluid samples from the field which were collected during drilling horizontal section of sandstone formation. The mineralogy of the external filter cake formed by fluid loss test is described in detail using both scanning electron microscopy and x-ray diffraction.

E-POSTER:

Drilling Fluid Selection Methodology For Environmentally Sensitive Areas, K. Dimitriadis, P. Burden, Tullow Oil; S. Thomas, T. Staples, C. Nguyen, K. Clements, M-I Swaco

Tullow operates in areas of Africa which are particularly environmentally sensitive. Selection of drilling fluids in such cases should take into account both technical and environmental criteria in regards to the treatment and disposal of the cuttings and excess fluids.

A thorough study was performed, which comprised shale characterization and inhibition testing on core samples and drill cuttings. Seven drilling fluid compositions were tested, six water based and one synthetic based. A simple rating method was devised for ranking technical and environmental performance or treatment and disposal options for each fluid.

In this particular case, Tullow’s choice of drilling fluid during its exploration and appraisal campaign was driven primarily by the need to use fluids with green credentials and the fact the exploration wells were not particularly demanding from a technical point of view. However, it was recognized the that a system with improved technical performance would be required when drilling the anticipated, more demanding, high angle and extended reach wells during the development drilling.

TECHNICAL SESSION 18: TUBULARS

Dynamic Model for Stiff String Torque and Drag, V. Tikhonov, K. Valiullin, Aquatic Company; A. Nurgaliev, R.A. Gandikota, L. Ring, P. Chaguine, C.A. Cheatham, Weatherford International

A stiff string torque and drag model is presented that uses steady state dynamic equilibrium of the drill string as its basis for calculations. Results are compared to previously published torque and drag models that are based on static equilibrium. The novelty of the new dynamic model is in the ability to solve torque and drag operations of the entire drill string in reasonable time using standard engineering computers. The new approach is based on a 3D-transient dynamic model of drill string and BHA in an elastic borehole.

Safely Exceeding Buckling Loads in Long Horizontal Wells: Case Study in Shale Plays, S. Menand, Drillscan; D. Chen, Hess Corp

This paper shows a case study in shale gas wells for which helical buckling load has been exceeded without compromising the success of the operations.

Drilling data from long horizontal wells in US shale plays have been gathered, analyzed and compared to an advanced drill string mechanics model that enables to calculate simultaneously torque, drag and buckling.

Drill Pipe Riser Intervention System Successful Experience in Offshore West Africa, C. Rohart, H. De Fonvielle, VAM Drilling; W. Campbell, TOTAL

While offshore intervention on subsea equipment is quite common, the increasingly deeper water operations require light weight intervention systems, while meeting safe and stringent operating specifications. For these new deep offshore challenges, the conventional risers are becoming a more costly and less desirable solution.

The solutions that were used by TOTAL in Angola are drill pipe risers with a proprietary double shoulder connection and featuring a Teflon seal ring close to the external shoulder. Intensively used in West Africa since 1999, the solution has shown robustness and reliability on several projects such as Girrasol and Rosa and now GirRI. The paper draws a summary of these operations and field use feedback, as well as maintenance costs and the financial benefits of using this product.

Brittle Failures of Oilfield Components Due to Improper Testing Methods, S.R. Koneti, S.R. Gokhale, T.H. Hill Associates

Oilfield tubular components can fail through brittle cracking due to poor fracture toughness of the material. For heat treated material, most vendor and user manufacturing specifications, including API, require the mechanical test specimen to be removed from either a sacrificial production part, a prolongation removed from a production part, or from a quality test coupon (QTC) from the same heat.

In certain cases, manufacturers prefer to perform all mechanical testing on a QTC. However, case studies indicate that material test results on the QTC, especially Charpy V-notch impact energy values, which point to the fracture toughness of the material, may not accurately represent the material properties of the actual component.

This paper presents case studies and lessons learned from the analysis of failures that were found to be related to this discrepancy.

The Stability of a Pipe Stand Racked in a Derrick, Part 2 – A General Pipe Stand Model, S.J. Sawaryn, P. Pattillo, BP Exploration

This paper builds on the information contained in Part 1 and presents a general pipe-stand model. The model is based on the Fourier series solution of the energy equation for calculating the deflection and buckling condition of an inclined, non-uniform pipe stand with an arbitrary number of intermediate loads and stick-up above the top racking board. Full details of the derivation and algorithms are included in the paper. This flexible approach is used to examine more complex, practical situations, including the buckling sensitivity to the position of the upper support and added loads, such as tool joints or running tools racked with the stand.

Analysis of Torsional Shock During Drilling, T. Collins, E.M. Elhassan, Schlumberger

Recent developments in drilling techniques such as rotary steerable tools, aggressive diamond drill bits and dual-diameter drilling tools have greatly improved the speed of drilling wells and have allowed efficient drilling in very difficult environments. These have created a new set of conditions that the bottomhole assembly must withstand: a combination of high rotary speed and high, unsteady reactive torque, which have given new importance to an understanding of drill string dynamics.

Dynamic loading of drill strings has previously been studied using application-specific models and numerical methods. This paper demonstrates the application of some simple methods borrowed from acoustics, which allow approximate but very general solutions to the dynamic effects of torsional shock loading.

The results are illustrated with a case study from a well where unexpected geological features led to very high torsional shock, which caused severe equipment damage. The dynamic loading was shown to be well beyond the accepted design parameters. The new methodology can account for this loading as well as providing the design tools to withstand it.

E-POSTERS:

The Stability of a Pipe Stand Racked in a Derrick, Part 1 – Foundation, S.J. Sawaryn, BP Exploration

The paper presents an exact analytical solution using higher order functions for the deflection and buckling of a simple pipe stand in a derrick, modeled as an inclined slender column, with self-weight and pinned at both ends.

The results are consistent with industry practice where an intermediate finger board is used to support 93 ft stands of both 2 ³/8-in. and 2 ⁷/8-in. steel pipe but is not required for 3 ½-in. pipe. These observations suggest a suitable safety factor for application in other cases.

Analytical Model to Estimate the Drag Forces for Micro-hole Coiled-Tubing Drilling, Y. Zhang, Y. Hao, University of Houston; R. Samuel, Halliburton

Micro-hole coiled-tubing drilling is a new technology that provides added advantages while posing numerous operational challenges. This manifests in a number of ways, all adversely affecting the efficiency of the drilling process.

The problems include increased wellbore friction, poor hole cleaning, tubular failures and associated problems during tripping operations. Presently, conventional torque-and-drag models are used to calculate the drag forces and surface loads. Estimates of surface loads predicted using conventional torque-and-drag models are under-conservative as a result of the residual bend in the small-size coiled tubing on the reel and gooseneck. In such circumstances, an improved model and more comprehensive analysis is required.

This paper documents the comparison between the predicted mathematical simulation results with the actual well data from wells describing the accuracy and applicability of the model. The analysis results and comparison are presented along with three examples.

The HullBUG autonomous underwater vehicle is delivered for field testing in Florida.

SeaRobotics Corp has delivered the first HullBUG (Hull Bio-inspired Underwater Grooming) system to the Center for Corrosion and Biofouling Control at the Florida Institute of Technology in Melbourne for US Navy testing. This is in support of the institute’s newly commissioned Large-Scale Seawater Facility for HullBUG Development funded by the US Navy Office of Naval Research (ONR).

The HullBUG system is an autonomous underwater vehicle designed to crawl on ship hulls or other underwater structures and “proactively groom” the surface. Developed by SeaRobotics and funded by ONR, this highly automated proactive grooming (or light cleaning) process aims to revolutionize hull maintenance, allowing ship hulls to remain in a clean state at all times. The benefits of improved hull condition are expected to be significant, with an estimated 5% improvement in fuel efficiency achieved through proactive grooming translating into a savings of $15 billion per year for the shipping industry worldwide, as well as reduction in the 1 billion tons of greenhouse gases emitted by the fleet.

“The financial benefits to the commercial shipping industry of HullBUG-enabled proactive grooming are enormous. Equally impressive are the associated environmental benefits derived from the operations with improved hull efficiency,” SeaRobotics president Don Darling said.

HullBUG is a small autonomous vehicle weighing 30-40 kg that attaches to the hull and performs a gentle cleaning function, or grooming. Numerous embedded computers perform navigation and sensing tasks to allow the grooming of the majority of the ship hull. Its ability to be attached to ferrous, non-ferrous and fiber-glass hulls and to deploy various sensors allows the system to overcome challenges in inspection and grooming. Opportunities in commercial shipping, oil and gas, nuclear, and conventional power generation markets are under discussion.

SeaRobotics specializes in small, smart vehicles that are remotely or autonomously operated. Its clients include major military and commercial organizations. Its marine survey software interfaces with most data acquisition hardware, software and sensing systems to produce multi-spectral, DGPS-stamped data for survey, research or surveillance efforts. Applications for SeaRobotics vehicles range from hull grooming and inspection to bathymetric and hydrographic surveys to coastal, harbor and riverine surveillance.  Many SeaRobotics vehicles are small, modular and man-portable, allowing for rapid deployment in remote areas.

The US EPA’s decision to ban BP from bidding in future offshore US lease sales could have a hugely negative ripple effect on drilling contractors and the rest of the offshore industry, according to a press release issued jointly by IADC and the National Ocean Industries Association (NOIA) in late November.

The offshore oil and gas industry in the Gulf of Mexico supported more than 200,000 American jobs in 2010 and contributed nearly $80 billion in revenues to the US government from 2001-2010.

IADC and NOIA stated that EPA’s suspension may be overly punitive, considering BP’s diligent efforts to work with the federal government on cleanup and restoration efforts and given the potential far-reaching impacts of the action.

“We are hopeful that the offshore industry, the Gulf region and the federal government can benefit from BP’s participation in the upcoming Central Gulf sale and future offshore lease sales,” said Brian Petty, IADC executive VP of government and regulatory affairs.

IADC issues appeal on 46 USC 8701

IADC, along with the US Offshore Marine Service Association (OMSA), issued a joint letter on 28 November to Rear Admiral Ray A. Nash, Commander of the Eighth Coast Guard District, regarding the new interpretation and application of 46 USC 8701. The law governs documents required by merchant mariners.

The latest appeal noted that the new application of the law, unchanged since 1983, appears to violate the requirements of the Administrative Procedures Act and requested Rear Admiral Nash reconsider his previous denial.

IADC and OMSA asked to participate in a meeting at US Coast Guard headquarters to discuss the possible severe consequences of the reinterpretation.

Intangible Drilling Costs Coalition strongly opposes tax changes

IADC, along with 33 other associations, signed a letter to members of the US Congress on 28 November as part of the Intangible Drilling Costs (IDC) Coalition.

The coalition expressed concern that future tax reforms could seek to limit or eliminate the current deductibility of IDCs. The tax code currently allows operators to deduct expenses, such as labor, fuel, repairs, hauling and other non-salvageable expenses, required for the drilling of oil and gas wells as they are incurred.

The letter went on to detail ramifications of such reforms, noting restrictions on expensing IDCs would discourage new US oil and natural gas exploration and undermine energy security in the US. Signees stressed new investment in American energy as critical to meeting future energy demand, boosting US energy security and protecting and creating jobs.

John Beswick, director of PR Marriott Drilling, represents IADC on the OGP Gas Communications Task Force.

By Katherine Scott, associate editor

John Beswick, director of PR Marriott Drilling, grew up wanting to be a pilot. “I was always destined for a career in the Royal Air Force,” he said. “It was my eyesight that eventually stopped me from being a flyer.” But nothing would prevent Mr Beswick from finding his own success, which he defines as being open to change. “You have to get up and pick yourself up. I’m used to starting again and looking at things from various perspectives. I’m quite flexible.”

With his piloting dreams dashed, Mr Beswick instead earned a civil engineering degree from Loughborough University in England in 1963 and later a postgraduate degree in engineering geology from London’s Imperial College, after which he worked on various operations in civil engineering and geology, as well as in geothermal research, before finally making his way to Kenting, a Canadian drilling contractor, in 1986. Thus he began his work in oil and gas industry, where he has managed operations worldwide for the last 26 years.

In his current part-time role with UK-based Marriott Drilling, Mr Beswick is helping grow the company from a small family operation into a medium-size group. “I’m like a coach more than anything,” he said. “I’ve been trying to change the style, the way we operate, the quality and the health and safety culture to bring it up to a the highest standards of the industry. Marriott has now become a highly respected company with both domestic and international operations.” Mr Beswick had just retired in 2007 when he received a call from Marriott. “They had been trying to get me to join for a while, and I said, ‘When I retire and I’ve got nothing else on my desk, if you’re still interested, I might think about it.’ The day I retired, I got a call,” he recalled. “It’s been quite an interesting story in my twilight years as I was attracted to Marriott as it is different sort of company with a family tradition, strong values and ambition.”

As a member of the International Association of Oil and Gas Producers (OGP) Gas Communications Task Force in Brussels, Mr Beswick has been representing IADC with the group since April 2011. The task force, predominately made up of operators, compiles reports and disseminates material to the general public and European ministers as a way to tackle shale gas misinformation. Having been previously involved with IADC’s government affairs, Mr Beswick supplies an expertise that extends beyond drilling and said that there has been positive support for IADC’s place at the table. “We’re really trying to be responsible citizens,” he said.

While shale gas development is in its infancy in Europe, Mr Beswick noted that industry hopes are high in many countries, as long as they can get past the exploration phase. “Until we’ve actually drilled and fractured and produced gas, we can’t make any statements about how good it is, but overall, it has the potential to provide Europe with a good resource for many years. We just have to get over the politics.”

One problem, he said, lies in the way industry describes shale gas. “Why did we have to call this ‘unconventional’ gas?” he asked. “If the word ‘unconventional’ was left out of it, we wouldn’t have half the trouble. But, because we used this word, the general public thinks this is something new, like, ‘Ah ha! It’s radioactive waste.’” It’s up to the industry to disseminate the facts, he said. “We’ve got to change the hearts and minds of people to believe this is not a bad thing.”

Industry should also focus on attracting more young people and “giving them a wider experience,” Mr Beswick said. “A lot of people are coming up now that may be good at one thing, but they don’t have the broad general knowledge of the industry.” The best way to resolve this issue, he feels, is to share experience. “Sharing works both ways; the young people benefit from the ideas you might throw around and the older people keep up to date with the way the young think.” And the reward is indescribable, as Mr Beswick reflects that one of the best parts of his career in this industry is “looking back through the years and seeing you’ve helped a lot of young people.”

Likewise, it’s important to be a team player, he continued. He likens industry collaboration to football. “We have an international standard; the markings of the lines are the same, we have the same number of players, and every position has to do their bit,” he said. “It’s only when they work together every match that they succeed and become champions. And that’s the idea of being a team player.”

While Mr Beswick, who visited the White House in summer 1959 as a guest of the US Air Force, having been a member of the International Air Cadet Exchange, once had other career plans, he feels he ended up where he belongs. “I enjoy the technical side and the new challenges. There’s always an awful lot to do in this industry because we continue to discover better ways to do things.”

David Williams, Chairman
Noble Corp

David Williams was named chairman, president and chief executive officer of Noble Corp in January 2008. He joined the company as senior vice president – business development in September 2006 and was subsequently promoted to senior vice president and chief operating officer in April 2007. Prior to joining Noble, Mr Williams served as executive vice president of Diamond Offshore Drilling. He has more than 30 years of experience in the energy industry.

Mr Williams attended Texas A&M University, where he earned a bachelor of business administration degree in marketing. In 2009, he was named an outstanding alumni by the Mays Business School at A&M for his career achievements and service to the school.

Mr Williams served as IADC vice chairman in 2012. He also serves as a board member of API, where he chairs the General Membership Committee and sits on the Executive Committee. He also serves on the Board of Spindletop International and is a member of the National Petroleum Council, SPE and the American Bureau of Shipping.

Jay Minmier, president of Nomac Drilling, has more than 25 years of experience in the drilling industry, including positions with Helmerich & Payne and Grey Wolf Drilling Co. He also previously served as vice president and general manager for Precision Drilling.

Prior to working in the oilfield, Mr Minmier was a captain in the US Air Force. He has a bachelors degree in electrical engineering from the University of Texas at Arlington and a master of business administration from the University of West Florida.

Scott McReaken joined Seadrill in July 2012 as director of finance for the Americas region.

Before joining Seadrill, he was the director, financial planning and analysis at Vantage Drilling from March 2010 to July 2012. He also held various management positions in accounting at Pride International in their Houston and Angola locations from 2005 to 2010.

Prior to working in the contract drilling industry, Mr McReaken spent five years as an internal auditor at the accounting firm Arthur Andersen.

Mr McReaken holds a bachelor of business administration degree in accounting from the University of Texas at Austin and is a Certified Public Accountant and Certified Internal Auditor.

As COO at Rowan Companies, Thomas Burke is responsible for all of the company’s drilling operations, as well as sales and marketing. Mr Burke joined Rowan in December 2009 as president and CEO of LeTourneau, a manufacturing subsidiary that Rowan divested in 2011. Prior to that, Mr Burke held senior positions at several oilfield companies, including Complete Production Services and Schlumberger.

Mr Burke received a PhD in engineering from the University of Oxford, a BA of engineering with honors from Heriot-Watt University in Scotland and an MBA from Harvard Business School.

Ron Tyson, president of Cactus Drilling, joined the company in January 2000 as vice president of operations and was named president in 2011. He previously worked at Bayard Drilling Technologies, which he joinedin 1997 as engineering manager. Prior to that, Mr Tyson worked as roughneck, driller, drilling engineer and project engineer at Helmerich & Payne  since January 1992.

He graduated in 1991 from the University of Missouri – Rolla after receiving a bachelor of science degree in geological engineering.

David Reid is the senior vice president of global accounts and chief sales officer at National Oilwell Varco (NOV) and is responsible for leading the NOV sales and marketing organizations toward strategic growth. He is charged with developing the market and strategic engine of NOV to offer their customers a most valued position in their relative markets.

Mr Reid joined Varco International more than 20 years ago. He began in the service end of the business and has lived in Scotland, California and Houston while working worldwide in a number of roles covering business development, product development, leadership and management.

He has provided key contributions to the development of today’s top drives, pipe-handling equipment, iron roughnecks, blowout preventers, integrated drilling systems and automation. He has led the introduction of modern drilling system design in offshore drilling rigs and has had an active role in the industry as a voice in addressing change in design, as well as business models.

Mr Reid serves on the NOV and Schlumberger IntelliServ Joint Venture Board. He also serves as the chairman of the IADC Advanced Rig Technology Committee and is a founding member of the SPE Drilling Systems Automation Technical Section.

Stephen Colville, president & CEO of IADC, has more than 30 years of experience in corporate public affairs and government relations, with extensive on-the-ground experience in North and South America, Europe, South Africa, the Middle East, Eurasia and Asia Pacific. He joined IADC in 2012.

Mr Colville previously served as vice president-communications for Royal Dutch Shell – Projects & Technology Business since August 2009. Prior to that, he served as vice president-communications – Global Gas Business for Royal Dutch Shell when he joined in December 2006.

His background includes seven years as an industry advocate, working in London and Brussels since 1990 to implement public and government-affairs campaigns. Mr Colville began his career in the UK Department of Trade and Industry in 1979.

Brian Petty is IADC’s executive vice president for government and regulatory affairs, based in Washington, DC, where he directs the drilling and oilfield service industry’s global government affairs program. He formerly served as the State of Texas Energy Counsel in Washington and was an officer with the international investment banking firm of Warburg Paribas Becker, heading its Houston office. This followed his association with the law firm of Mudge Rose Guthrie & Alexander in New York.

Mr Petty earned his BA degree at Spring Hill College, his MA at the University of Virginia and his JD at Georgetown University. He serves as chairman of the federal Industry Trade Advisory Committee on Automotive Equipment and Capital Goods (ITAC 2), which counsels the US Trade Representative and the US Secretary of Commerce on international trade issues. He also serves as chairman of the Investment Working Group, designated to advise them on international investment policy. In addition, he serves as IADC’s representative on the EU Committee of the London-based International Association of Oil and Gas Producers.

He also co-chairs the Energy Services Coalition, made up of 60 companies and trade associations seeking to increase international trade in hydrocarbon, electric power and renewable energy sectors.

Tom Terrell is IADC senior vice president – corporate development and chief of staff. He has 33 years of experience in publishing, marketing and business with oil companies and service companies. He has been in charge of petroleum group operations for a major petroleum industry publishing company.

Mr Terrell has extensive experience in strategic planning, sales management, marketing and product development. His responsibilities at IADC include leadership of a diverse global sales, editorial, administrative and financial staff. Mr Terrell holds a BBA from the University of Houston.

Mike Killalea is group vice president/publisher, with responsibility for IADC’s electronic and print communications vehicles; development, marketing and sales of IADC books and forms; advancing IADC’s digital applications; and public-relations and education initiatives.

Mr Killalea’s background in petroleum engineering is complemented by more than 25 years experience in technical and business journalism. He graduated with high honors from the University of California at Davis with a BS in chemical engineering. He joined IADC in 1991.

Steve Kropla is group vice president – operational integrity. He manages IADC’s offshore affairs, land drilling, HSE, and accreditation and certification functions, as well as regional operations in North America, Europe, the Middle East and Asia. He also oversees the overall management of IADC’s technical committees.

Mr Kropla joined IADC in 1992, after more than 10 years in the drilling industry in Alaska and the lower 48 US states. His duties included health and safety, training, and responsibility for a broad range of human resource issues.

He holds a BS degree in journalism from Southern Illinois University and an MS in human resources management and development from Chapman University in California. Mr Kropla is a Certified Senior Professional in human resources.

Mark Burns, executive vice president and chief operating officer of Ensco and 2007 IADC Contractor of the Year.

Industry increasingly looks to non-traditional geographies, disciplines for workers, enhancing safety through strong corporate culture

By Katherine Scott, associate editor

Mark Burns is executive vice president and chief operating officer of Ensco and 2007 IADC Contractor of the Year.

The industry is challenged with a shortage in qualified and experienced personnel. What have been the effects of this critical issue on industry operations?

In addition to strong onshore demand for personnel, the offshore industry is set to deliver approximately 150 newbuild rigs over the next few years that must be staffed. At the same time, we are challenged with an aging workforce, and we need to manage natural attrition, so we’ve got to continue to train and develop and retain qualified personnel. Additionally, drilling equipment is becoming much more complex than what we dealt with years ago, so the level of sophistication in these systems and the level of education in the personnel required to operate them is very important.

Ensco has implemented a Competency Assurance Program for all of our offshore positions that is accredited by IADC.  This ensures our employees are qualified to do the jobs they’ve been assigned to.

How can industry do a better job of recruiting?

First of all, we can do a better job of promoting our industry. A lot of young people who come out of universities or technical schools overlook our industry.  This is a global industry with a global workforce. Years ago the majority of our senior operating personnel came from the United States because of the inherent amount of operations we did there. That has changed. You’ll see companies looking at non-traditional geographies for oilfield workers, like southern Europe, some areas of Latin America and some areas in Asia, and you’ll see more recruiting from outside the industry, like the military. We have focused on all branches of the military for several years. Veterans bring discipline. They understand how to work in a safe, systematic manner, how to follow policies and procedures. Plus, many of them are highly skilled in technologies that we use in the drilling industry.

You noted that the workforce is now global, so how can we ensure that people moving from rig to rig are able to work together among different cultures with different backgrounds?

The key is to have a strong corporate culture built on shared values. All employees agree on the importance of safety.  Everyone understands the significance of operational performance, customer satisfaction and ethical behavior.  Reinforcing these core values brings people from different backgrounds together – working toward common goals.

At the tactical level, we have translated many of our materials into multiple languages. Our safety induction video, for example, has been produced in 10 languages, from Portuguese to Thai and Vietnamese.

You said industry could do a better job of promotion of its image. How would you approach this?

There are three pieces of our story I think we need to tell:

First, there is great opportunity for young people entering our industry today. With the growth rate of our industry and the demand for hydrocarbons around the world, there is limitless opportunity to grow and be promoted – and to have an impact on the future of our industry.

Second, we’re a safe industry, and we have very defined processes, policies and procedures. We spend a huge amount of time and money on training our workforce to work safely.

Ensco employees conduct a job safety analysis on the ENSCO 8506. Ensco’s safety record in 2012 was the best they’ve had in the history of the company.

Third, as with our safety performance, we focus on protection of the environment. We have sophisticated environment-processing equipment onboard the rig, and we follow very stringent marine and government regulations as it relates to the environment.

When recruiting, is industry looking for people who are already competent, or is it better to grow a new generation of loyal employees?

It can be a mixture of both. Anytime you can promote from within, it’s desired. Promotion from within builds loyalty, it builds familiarization with the company, and it builds a stronger culture. To me, promotion from within to the maximum extent possible is what you want to achieve.

How should competency be approached?

For competency assurance programs to be effective, they must be auditable and verifiable. How can you verify someone’s competency? You’ve got to do it by watching them perform something, and there has to be a certain amount of classroom instruction. Companies that adopt and apply effective, stringent, disciplined competency assurance systems  see major benefits.

As IADC’s 2012 chairman, Dan Rabun, Ensco chairman, president and CEO, worked with the association to develop enhanced competency guidelines for rig personnel by expanding IADC’s existing Knowledge, Skills and Abilities (KSA) templates.

How do you think that will improve operational integrity across the drilling industry?

As personnel transfer from rig to rig, in some cases from company to company, if you have standardized competency requirements and a floorman on Company A goes to work for Company B, then he would know what’s expected of him at Company B. For a program like this to work, it really has to be implemented industrywide. Also, you have to keep refreshing and revitalizing the program.

Anytime you do something consistently, people understand what’s expected of them and you keep everyone inside the boundary, and you can’t help but improve efficiency and improve operating performance.

A driller works in his cabin on the ENSCO 8506. Ensco sends two-man teams offshore to audit its safety management system, making sure its permit-to-work system, energy isolation procedures and documentation are being followed.

We’ve talked about the new generation of workers and the gap between the older and younger workforce. How can the industry make sure there’s a sharing going on where everyone is learning from one another?

We’ve always been a very close industry. We work together, and we collaborate well. It’s incumbent upon the senior generation to pass on to the younger employees entering this industry what are the good, strong points about working in this industry. Technology has changed, so it’s not so much a matter of handing down that knowledge. But when you get to things like well control and knowing how to handle a situation that doesn’t come up that often, that’s where the industry experience gained over the years can be passed on.

You’ve said before that if people take responsibility for their own actions, then we could have an accident-free workplace. How do you think industry can achieve that?

To me, the most important thing in maintaining an incident-free workplace is personal responsibility for safety. That means that a person will work outside on the rig floor for 12 hours focusing all the time on where he puts his hands, making sure he’s got the proper PPE on, watching other workers, being aware. It takes focus.

Further to that, the company has to define guidelines on how to act and permit-to-work systems, and each worker has a personal responsibility to follow those policies and procedures. If everyone is personally responsible for his or her own safety, it will go a long way in everyone working safely.

You then have to have an interdependent culture, a culture of teamwork, where each person will also look after his colleague and make sure if he sees someone putting his hands where his shouldn’t, he will remind that person not to do that. If someone is struggling in safety meetings or pre-job tour meetings, a co-worker should help them understand the job better.

If a job is not going the way it should be, workers should stop the job and regroup, think about it, re-plan and reorganize. Do not be afraid to stop the job. Many incidents occur when things get moving too fast and people forget where they are supposed to be.

We also must continue to train our people. At Ensco, our safety record in 2012 was the best we have ever had in the history of our company. We are working at a safer level than we have ever worked. Training of our personnel is very important, and through the first 11 months we’ve trained almost 2,000 of our supervisors in our safety management system, making sure everyone understands the same consistent policies and procedures and we’re applying them all across the Ensco fleet.

Process safety is obviously important as well. Process safety means you have defined policies and procedures. You’ve got checklists, so if something doesn’t look right when you reach this point, you adjust or stop and discuss it again.

I strongly believe that unless you have a personal responsibility for safety, unless you’re looking after your coworkers and you’re fostering a teamwork attitude and a strong safety culture onboard the rig, you’ll never be able to achieve an incident-free workplace.

How do you make sure that personal responsibility is instilled in every individual?

You can expect what you inspect. What that means is you might think that everyone is working safely and they understand what they’re supposed to be doing, but unless you go out and audit it, check on them and follow up, you will never know for sure. You must audit.

How often do you need to go out and inspect or audit?

An Ensco crew performs a safety drill on the ENSCO 8506 semi. The company encourages both a personal responsibility for safety and a culture of teamwork.

We have three two-man audit teams called core value teams that go offshore with the specific requirement to audit our safety management system, make sure our permit-to-work system is being followed, make sure our energy isolation procedures are being followed and make sure our documentation is being followed. Then they also look for good housekeeping practices, make sure that we’re working consistently, that what we’re doing on ENSCO 8502 we’re doing on ENSCO 8503. If you have a culture of consistency across an organization, it makes the management of the organization much easier because everyone knows what’s expected of them.

How does equipment standardization play a role at Ensco?

It’s a philosophy we’ve been very successful at implementing. We’ve been focused on it very much the past five years. We recently delivered the seventh of our ENSCO 8500 Series semisubmersibles; we have a number of Samsung 96K drillships that are all consistent design, consistent equipment.

Many of our rigs are not only of the same design but also in the same operating areas. It makes it very easy to transfer a person from one rig to another without a lot of additional training because he’s already familiar with the equipment on the two rigs. It contributes to career development by increasing the opportunity for people to advance, but it also increases the benefits of keeping people because you have all of these rigs that are similar and you’re able to use their expertise. Equipment standardization also makes rig maintenance easier.

What equipment has become vital in offshore drilling operations?

Many improvements in efficiency and design of offshore drilling units have been achieved in the past 10 years. Our critical challenge in that arena is equipment reliability. We need to continue to work with our equipment suppliers in ensuring processes are maintained during the manufacturing, assembly and commissioning of this equipment, and we need to continue training technical personnel to operate this complex equipment.

We’re starting to see a lot more automated and computer-driven equipment, which is leading to more electronic technicians onboard. Years ago, you never saw an electronic technician on an offshore drilling rig; now they’re common. Rig designs are changing, and the equipment is more complex. It takes different skill sets to work offshore now than what it used to. Pressures are greater, temperatures are extreme and loads are heavier. In a 30,000-plus ft well in 8,000 ft of water, the loads in the weight of the casing string and the drilling string that you’re required to handle and manipulate are just incredible, so equipment has to be robust enough to work in those types of environments.

Another point is redundancy, because of the high cost of operating in extreme offshore environments. If something breaks down, you need to show you have a backup plan to continue operating.

You said these rigs are becoming a lot more complex and automated. With 150 newbuilds coming in, what is industry doing to ensure the startup and commissioning process goes smoothly?

The commissioning and startup process begins at a very early stage of construction. In other words, do not wait until the entire rig has been built before you start the commissioning process. Start commissioning and testing as you’re building the rig. Each rig has a defined maintenance system, so go ahead and get that information put into your maintenance system. If you need to pressure-test a length of pipe or a pipe spool or a pump, go ahead and get that done so that once the rig is delivered, you will have a lot of these systems commissioned individually. Then, once you do get in your final acceptance testing, you’ll have a lot of this work primarily done.

A lot of these vessels are built in modular form; when you get one module built, you can go ahead and start commissioning, and then when another one is integrated, you can continue there.

Ronnie Witherspoon, executive vice president of Nabors Completion & Production Services.

Rush into manufacturing mode may be leading to less efficient frac designs, forfeiting valuable information, production in shales

By Katherine Scott, associate editor

Ronnie Witherspoon is executive vice president of Nabors Completion & Production Services.

What technological challenges do you see in the provision of completion and production services, and what equipment improvements will be needed in the future?

If you look at the estimated ultimate recovery using unconventional drilling and completion practices, the numbers are a stark contrast to what we see in conventional oil and gas production, where ultimate oil recovery may have exceeded 20% over the original oil in place, so there’s room for significant improvements in current completion technology.

The reserves being produced today are often more geophysically complex in nature and much harder to reach from a drilling perspective. These reserves often require advanced completion techniques in order to be economic.

These challenges are being met with new technologies and novel applications of existing technologies, as well as the careful application of best practices. The industry will certainly witness an increase in fracture network efficiencies in the reservoir contact area and the implementation of improved secondary recovery techniques.

As we continue to optimize the fracturing process, the industry will have to move toward greater automation. The drilling side of the industry has become largely an automated process. This development has substantially lowered manual labor requirements. However, the completion process, including hydraulic fracturing, continues to be highly labor-intensive. There is significant room for improvement in the automation of that facet of the business.

How should a well be designed for successful fracturing?

We’ve seen a complete rush into the shale plays, so the urgency to exploit the play to extract hydrocarbons in a rapid fashion has really put the industry into a manufacturing mode mindset. This practice has unfortunately marginalized the science needed to optimize each well utilizing a tailored engineering solution. It is critical to account for certain variables, such as closure stress, permeability and conductivity, and fluid efficiency in order to ensure that we are designing a fracturing recommendation that results not only in the highest recovery for the initial production but also in the optimal production decline over time for each well.

In many of these basins, operators are utilizing more wells per pad. Instead of one well, industry now sees anywhere from four to 20 wells per pad, and the geologies don’t vary a great deal so operators default into a manufacturing mode.

This shale concept of drilling multiple wells on a pad is somewhat new to the industry. You drill one well over and over, replicating that process. A cookie cutter approach is, however, not always the most optimal approach.

Has this manufacturing mode of drilling been beneficial for the industry?

It’s a double-edged sword. Operators can look at some simple injection tests that may have been performed in the past on certain fracturing treatments in order to gain valuable knowledge about the formation.

Indeed, it’s becoming common practice now for companies to utilize the relatively cost-effective procedure to gain information on initial wells.

Nabors conducts a fracturing operation in Jane Lew, W. Va. One challenge to hydraulic fracturing is the increase in fracturing capacity and decrease in demand. “All of that right now puts us in an unbalanced situation that over time will take care of itself,” Ronnie Witherspoon, executive vice president of Nabors Completion & Production Services, said.

Unfortunately, a lot of companies are sort of defaulting to this replication approach after the initial well design is implemented, which may or may not be a bad thing, but it’s ultimately a blind reliance on initial sampling. It can result in the forfeiture of valuable information about certain anomalies or complex faults or structures that persist in the underlying formation.

Do you believe industry needs to improve how they understand these reservoirs?

Over time, operators will realize quicker cash flows from producing wells in that replication mode, but that can lead to less efficient frac designs. For example, proppant selection is still critical for the longevity of the well and, as formations become deeper and more complex in structure, the overall natural stresses from the well production can lead to proppant embedment and crushing, so understanding the connectivity implemented by the initial fracturing treatment is important.

Ascertaining the closure stress present in an individual well is a prerequisite to an optimal proppant selection process and can help ensure that an operator’s investment can and will lead to maximum recovery over the lifespan of the well.

Fracturing operations require trucks to move materials to location. How is industry working to reduce road use during fracturing?

As an industry and definitely at Nabors, we’re focused on increasing driver training and education. In addition, we have raised the bar with regards to the selection and criteria that must be met by new drivers. Across the board, the industry is using more stringent hiring practices around driver selection. There is also heightened focus on increased control injury management for vehicle movements and monitoring between locations.

Another issue surrounding fracturing is water management. How does industry approach this task?

Water resource plays a critical role in our management strategy. The drilling of deep saltwater wells for hydraulic fracturing has become more common, but both saltwater and water reuse techniques require fluids design technology that is capable of resisting brines and other water mineral characteristics, so the oil and gas industry has focused its efforts on “green” chemical initiatives. More and more, industry has viewed water as a key resource central to the operation of the business.

The manner in which water is being obtained, managed, processed, stored and utilized as a critical asset is a high priority for our industry. Technology is playing a key role in the water management cycle for utilization, filter and reuse. Addressing this challenge requires an “all in” strategy, including the use of flowback and produced water in completion methods in large-scale drilling, as well as stewardship and the conservation of surface water. It will make the use of deep saltwater wells to source water for oil and gas operations increasingly more commonplace.

What specific technologies can you point to that are addressing this?

We’re looking at technologies for overcoming these obstacles with a focus on new completion fluid designs, with increased tolerance for brines and other minerals in the water while meeting the challenges and requirements of unconventional wells. Additionally, new technologies of filtration and purification continue to come into the marketplace, addressing the challenging water conditions encountered by the industry.

What do you see as some of the biggest challenges to hydraulic fracturing?

Nabors operates in Jane Lew, W. Va. The company currently does not have stimulation operations outside of North America but is looking to expand its footprint in the major shale basins around the world that have commercial productivity, such as Argentina, Colombia, Mexico, the Middle East and potentially China.

The market in the US is a bit challenged right now. We’re in an oversaturated state, so it sort of exacerbates the people situation when you want to continue to attract and retain the best people, but you have to find the fine balance in it. We’ve just undergone a transition from the more gassy areas to the liquid-rich areas, so we’re still balancing that out.

If you look at some of the commercial challenges, not only have we seen the frac capacity increase, but also we’ve seen a decrease in the demand side. Service intensity has also fallen, causing incremental reductions in demand based on redeployment of frac capacity to lower-intensity places, i.e., the oil and the liquid plays from the gas plays.

We’re starting to see a greater adoption of certain completion techniques that reduce time post-frac, which exacerbates this overcapacity situation. We’re working closely with clients to establish and reduce that time for fracturing, and the reduction of frac stages per well in the gas plays. All of that right now puts us in an unbalanced situation that over time will take care of itself.

How does Nabors address challenges on the regulatory front?

Both as a production and service company, we’ll have to continue to comply with a host of local, state and federal regulations in the US, as well as regulations from foreign governments, including taxes, financial reporting, air and water emissions, transportation, and product use and disposal. There exists an extensive procedural regime for applying and receiving key permits and licenses. There’s a lot of misinformation out there, and as an industry, we’re going to have to continue to work closely with the public and the regulatory authorities to ensure that the existing regulatory and permitting process and framework makes sense.

Do you see industry expanding its fracturing operations around the world?

Nabors doesn’t have stimulation operations outside of the US other than Canada right now, but we are looking to expand our footprint in the major shale basins around the world that have commercial productivity. Our drilling group has a sizeable footprint in the international markets, and we want to leverage that to establish a footprint on the stimulation side in key areas like Argentina, Colombia, Mexico, the Middle East and potentially China.

How has industry approached the fracturing issue in relation to its public image, and how should it be approached going forward?

We have to continue to educate the public. There’s a lot of misinformation about the industry that really stimulates an irrational fear about our business. The industry has to encourage public media-based educational programs. We have to continue to have town hall meetings that are informative and worthwhile at the local levels, but at the end of the day, the industry’s detractors will always seize upon the uncommon occurrences and make an improper characterization of the industry as a whole.

We’ve got to do a better job at combating some of the things that are improperly characterized and instruct the public about the significant technologies, safeguards and procedures that we’re all driven toward and that we’re committed to implement in order to ensure safe operations throughout the industry.

Nabors lives in the communities that it works in. Safety drives every aspect of our business, so the industry should not embrace more regulations just for the sake of more regulation, but what we should do is work in a collaborative effort with the public and regulators, and develop a regulatory framework that makes sense for the industry and for the public.

I think that our goals are far more aligned than what some of the industry detractors would have the public believe.

Do you think industry is doing enough to improve environmental performance so that is comparable to its safety initiatives?

We look at environmental performance as a key piece to our ongoing strategy to preserve and protect the well-being of our people and communities. It’ll continue to hold the same priority it does for us to protect and serve our people, so when I say safety, I talk about our environmental efforts as well. They go hand and hand

John Willis, chief of drilling, Occidental Oil and Gas (Oxy).

Applying same drilling practices to both complex and basic wells builds skills, capability, can reduce overall costs if done right

By Katherine Scott, associate editor

John Willis is chief of drilling for Occidental Oil and Gas (Oxy).

From simple to complex wells, industry remains focused on managing the cost of drilling. How is Oxy approaching this critical issue?

In 2012, we drilled about 2,500 gross-operated wells globally, primarily in older fields. After ensuring we operate safely, a key focus for our drilling organization is tracking and reducing the cost of drilling those wells.

At the end of 2012, we had approximately 70 rigs working globally, drilling mainly onshore. About 60% of our business is in the US, mostly in West Texas, New Mexico, California, South Texas, and North Dakota. We have about 21 rigs operating abroad. Oxy operations outside the US are mainly in Oman, Bahrain, Qatar and Colombia.

Even though we’re drilling basic standard technology wells, in general, we drill our simple wells using the same drilling principles and practices as very complex wells. We selectively use advanced technology – advanced rigs, PDC bits, rotary steerables – when rigorous analysis proves that we can reduce costs.

Can you describe the types of wells you’re drilling with this approach?

Using advanced rigs on simple wells, Oxy has been able to reduce drilling time and costs. In one project with 3,000-ft vertical wells, before switching to advanced-technology singles rigs, the fastest well the company drilled was five days. The average was reduced to less than three days after rig upgrades.

About half are vertical wells, and most are less than 10,000 ft, so we have a lot of simple wells. By using the same practices on the simple wells that we apply on the more complicated wells, we build our organizational skill and build our capability to drill the more complex wells effectively. On those simple wells, advanced rigs and advanced technology are effective when we have a continuous program. Profitable use of advanced technology on simple wells requires consistently high performance, which is difficult to achieve. For more complex wells, the advanced rigs and technologies are very effective.

This approach evolved over several years, taking a more performance-based approach rather than a low-bid approach. It’s been successful for us because our overall drilling performance is better now. From 2008 to 2009, we upgraded our rig fleet from around 25% advanced rigs to nearly 60%. We’ve stayed at that 60% range since, with a significant improvement in our drilling performance. It’s enabled us to increase our PDC bit percentage from 40% to over 70% of our footage. Downhole motor use has increased from 50% to about 85% of our footage. We’ve used rotary steerables on just about every kind of well, even shallow vertical wells. We are constantly re-evaluating economic benefits and in many cases have returned to conventional practices where they proved to be lower cost.

What drives this performance-based drilling at Oxy?

A driller sits inside the driller’s cabin on an advanced-technology rig. Mechanization is extensive on the advanced rigs Oxy uses, though automating complex tasks is not a specific goal for the company.

It’s driven by the goal of reducing drilling costs while meeting our drilling objectives and improving safety. In drilling, there are strategies based on unit-cost and strategies based on performance. A unit-cost strategy might focus on older and conventional rigs, basic bottomhole assemblies with very little directional control, and simple mud. A unit-cost strategy works well on simple, shallow wells.

The performance strategy focus is to drill the well quickly, with the objective of lower cost. The rig is more expensive, the downhole equipment is more expensive, the bits are more expensive, but if you cut the drilling time by 40% or 50% then it could be very economical to take a performance-based approach. You have to continuously evaluate and continuously push to get good performance. If you get an expensive operation and then drill in the same time as the low-bid operation, the cost is much higher. Consistency is essential to make the performance approach economical.

It’s been a successful strategy. Our safety performance has improved. The drilling cost are lower, the costs are more predictable, we’ve drilled wells faster, and the fields have been developed faster. It’s worked out well overall, but we continue to evaluate and adjust.

Have the longer-term contracts on your advanced-technology rigs helped with the performance-based drilling approach?

The benefit is from keeping a rig working continuously for a long term, not the term of the contract. But, longer-term contracts were the key to getting our rig fleet upgraded. High-level approval enabled us to get the high-performance rigs on long-term contracts, and it made a dramatic change in our drilling. Newbuild rig contracts are typically two to three years, some as long as five years.

A long-term contract is advantageous when it enables access to new-technology rigs. When rigs are busy, it’s the only way to get advanced rigs.

Advanced rigs drill for Oxy in the Goldsmith Field in Midland, Texas (top) and the Piceance basin in Colorado (bottom). From 2008 to 2009, the company upgraded its rig fleet from around 25% advanced rigs to nearly 60%.

A key factor for managing drilling costs is stable long-term programs. One thing we’re working on for 2013 is to drill fewer types of wells and keep our drilling programs consistent so that we can get the rig and the other people involved very skilled at drilling a certain type of well, and drill that well repeatedly. We know we get better performance when we do that. Picking up a rig and getting a whole new set of people trained is very expensive.

You noted that you’ve been able to make rotary steerables work out, economically speaking, on almost every type of well, even shallow vertical wells. How have you seen the reliability of rotary steerable technology improve?

The overall reliability varies a lot depending on how much attention we put on it. Where we have a continuous operation with multiple rigs and a single service company for a long period, we get very good reliability because we learn what drilling parameters to avoid damaging the tools, and the service company learns what they need to do to their processes to make the tools more reliable. In places where we operate only one rig out of a shop with lots of other operators, and the tools go from one company to another, the reliability is often poor, and it’s difficult for us to improve it.

Especially in the US when demand is intense, we’d really like to see service companies do more to follow their own established procedures, which they know will deliver pretty reliable tools.

How much time does Oxy save by using advanced rigs on simple wells?

Keep in mind, reducing time is not the goal; we’re trying to reduce costs and improve safety. In one project with 3,000-ft vertical wells, before we brought in advanced-technology singles rigs, the fastest well we drilled was five days. Now the average is less than three days.

The important thing is not the reduced time, but that the costs are lower while at the same time drilling better wells and improving safety. This is from very well-designed rigs that are well-suited for the operation, and that’s the kind of thing we’re looking for with the advanced-technology rigs. Any depth well, any kind of complexity, even the simplest wells can be drilled much faster with modern, effective rigs. Big things are more hydraulic horsepower, more horsepower in the top drive and short move time. Dayrate is a big factor. The time savings must pay for a higher dayrate.

Is Oxy trying to work in more automation into its operations?

Most advanced-technology rigs drilling for Oxy, such as this one in the Permian Basin in Texas, feature highly mechanized rig floors. In 2013, the company plans to drill fewer types of wells and have stable long-term drilling programs, which is a key factor for managing drilling costs, John Willis, chief of drilling for Oxy, said. The company believes it gets better performance when the rig and personnel get skilled at drilling a certain type of well and do it repeatedly.

Mechanization is extensive on our advanced rigs. Remote controls, driller consoles, hydraulic systems and other mechanization have been very widely applied in our drilling operations, but automating complex tasks is not a specific goal. There’s a lot of complexity for a small incremental improvement. We’re in the low-cost end of the industry, so we watch technology as it starts in the high-cost areas, and we see it developing over the years. For us, it’s a matter of monitoring it until the cost becomes low enough to apply it in our operations.

What has been a challenge for Oxy in improving operations?

One of the biggest challenges we have in improving our operations is getting new thoughts and concepts permeated and accepted throughout the drilling staff down to the rig level – and that includes all of the contractors who work with us. Performance-driven people have learned from their experiences over the years and have developed knowledge that works.

It’s difficult to prove that something new is better. We need new ideas that really work, and the best source is from our own operations. We focus on sharing successful practices from one business unit with all of our global operations.

We use standards, recommended practices, intranet, meetings and conference calls to disseminate information, and we send our experts to visit other business units. We do a pretty good job of spreading information, but it does take a lot of work.

Advanced-technology rigs operate for Oxy in Elk Hills, Calif., (left) and the Piceance Basin in Colorado (right). Longer-term contracts were key to upgrading the company’s rig fleet, enabling access to new-technology rigs. “When rigs are busy, it’s the only way to get advanced rigs,” Oxy chief of drilling John Willis said.

It seems like it’s a good time to change the old mindset with all the new people coming into the industry. Is it something you’ve incorporated into your training?

Our total drilling management and engineering staff globally is about 200. We’ve added many experienced new-hires that did not have operator experience and 17 recent graduates in the past year.

We’ve put a lot of attention on having a good training program to get them all well-grounded in solid principles and practices for drilling so they have a good knowledge from the beginning of their career. That’s been a really important thing for us.

From an operator’s perspective, what would you like to see your contractors do to improve their performance and reduce downtime?

We would like to see contractors focus more attention on following their own standards and procedures to have reliable equipment and less turnover so we can maintain consistently good performance. We recognize their need to train people and move them to more complex operations and are happy to help with that effort, but we still need stability in our workforce to keep our operations running at a good level of performance.

We get a lot of proposals for higher-value services at higher costs. Some of those have worked out, but we still put a lot of value in good basic services at a low cost.

Thomas Burke, chief operating officer of Rowan Companies and 2013 IADC vice president – offshore division.

Contractors expanding safety management systems to formalize stronger process safety components

By Katherine Scott, associate editor

Thomas Burke is chief operating officer of Rowan Companies and 2013 IADC vice president – offshore division.

For today’s drilling contractors, what are the industry’s highest-priority issues?

For the majority of drilling contractors, the highest priority continues to be safety of personnel performing drilling operations. Contractors are moving from a purely personal safety approach to formalizing stronger process safety systems.

Competency of personnel is also a critical issue. Given recent industry events, ongoing retirements of experienced personnel and the number of new assets under construction, ensuring personnel competency is a high-priority issue.

Operators have been talking a lot more about process safety since Macondo. What are you hearing from clients in terms of process safety requirements?

Process safety requirements of our operator customers vary widely. Some major operators are highly focused on the issue, with clear definitions and systems in place. These larger operators also expect their vendors, including drilling contractors, to have similar systems in place. For smaller operators, process safety is much less formal, and there are few official requirements on their contractors.

What has Rowan been doing to reduce its incident rate?

At Rowan, our two highest priorities are safety and integrity. Our CEO and our entire management team speak to our employees on every occasion about these two interwoven values. We reiterate that it is every employee’s responsibility to ensure that each job is conducted safely – including stopping the job if necessary to protect our employees or others at the work site.

Our company’s safety incident rate has declined dramatically in the last 10 years. While our strong safety program and energized professionals supporting line management has been a factor in our success, the main reason for fewer incidents has been the focus and expectations set by our managers, supervisors and employees to be injury-free.

Tactically, we have had several initiatives, including strong reporting and investigation, and have trained our employees in stop work authority and having effective safety conversations.

When we have an incident, near-miss or dropped object, our employees report the incident, and we investigate the circumstances. We make sure we understand what happened and why, determine the best way to prevent future similar incidents, and then we educate the rest of our fleet to share the lesson learned. This may seem fairly elementary, but with our rigs working in so many different regions, it is not trivial to actually make it happen.

Stop work authority is just what it sounds like – we ensure all of our employees and third parties on our rigs and in our facilities understand that they have the authority and the obligation to stop the job whenever they believe it is unsafe or something is going wrong. As an example, in the North Sea last year, one of our roustabouts assigned to assist in a helicopter arrival procedure noticed that the helicopter fuselage was damaged. He called a “timeout for safety.” The helicopter was shut down, and an aircraft mechanic arrived to fix the issue.

By stopping the job, the roustabout may have saved lives, and he received much praise for speaking up. Rowan’s workforce is empowered “to do the right thing” to ensure the safety of our operations.

We have also spent time and resources teaching our employees how to have effective safety conversations. We believe we achieve better safety results when employees and third parties have conversations about safety, rather than just completing and filing a form. We have not met our goal of zero injuries, but our safety performance is better than it has ever been.

After safety, what other critical issues is the industry facing?

In offshore drilling, we are experiencing a rapid growth cycle, which followed years of relative stagnation. Maintaining crew competence to meet our company needs and our customers’ expectations in an era of tremendous industry growth is a challenge, particularly in a post-Macondo environment.

Rowan’s Bob Palmer jackup is on contract to Saudi Aramco in the Middle East until June 2014. Over the past six years, Rowan has built and delivered 11 high-specification jackups and currently has four ultra-deepwater drillships under construction in Korea. Rowan uses its Ready-To-Drill program to ensure rigs are ready for drilling operations as soon as they leave the shipyard.

Our efforts are focused on retaining, recruiting and hiring the right people and ensuring all of our employees are competent to complete the jobs required. The growth in other parts of the energy industry, such as land drilling and completions, will mean even tougher competition for talent.

While most large drilling contractors have their own competency programs, IADC is working on this issue from an industry perspective. The association’s Knowledge, Skills and Abilities (KSAs) project is going to be a tremendous help industrywide.

What do you feel needs the most updating in current competency programs?

At Rowan, we think about competency from a risk-based perspective. We do need to ensure competence across all positions and tasks; however, we have prioritized our competency efforts and training on those employees handling tasks on the rig where there is “the highest price of failure.” Clearly these “high-risk” positions and tasks are concentrated around the rig floor and with an emphasis on well control. We believe this is a strong approach and certainly something for others in the industry to consider.

Should workers be measured in IADC competency as well as company competency?

Each large drilling contractor should design and use its own competency program that is specific to its values, assets, policies and procedures. At Rowan, we have our own competency program that was developed in the North Sea and is being pushed across the company. However, IADC is not just serving the larger drilling contractors; it is also serving a lot of smaller companies that simply cannot afford to have a custom competency program.

Nonproductive time can be a critical issue. What can the industry do to work with suppliers to improve equipment reliability?

We’re spending a lot of time with suppliers trying to help solve equipment issues and increase uptime. Often suppliers don’t have a full appreciation for the failure modes of their equipment or how the equipment is actually used in field operations. The industry needs to do a better job of sharing the causes of failures with suppliers, getting suppliers to understand the root causes and then collaborate on solutions.

We have determined that we can achieve better results if we are more involved in monitoring the manufacturing process of our vendors – by participating in the build and the commissioning process of equipment, we can ensure our vendors have a better understanding of how we plan to use the equipment and can solve failure issues before they occur.

Along those same lines, shipyards are building the rigs, but they’re not the ones operating them. Should drilling contractors be doing more to monitor the shipbuilding process?

The dynamics of rig construction have changed over the last decade. Historically, a drilling contractor would contract a shipyard to build a vessel and would also furnish the drilling equipment and other key systems. Previously, the drilling contractor would choose the equipment vendors and be responsible for the integration and the commissioning of critical systems. Now shipyards perform these tasks. This shift has changed the dynamics of the OEM and shipyard markets dramatically, with the manufacturers selling directly to the shipyards rather than the drilling contractors.

At Rowan, we have four ultra-deepwater drillships under construction in Korea. Over the past six years, we have also built and delivered 11 high-specification jackups. We have found that on-site supervision and quality control is critical, as well as agreeing to a strong commissioning plan with the shipyard. We have a program called Ready-To-Drill, which focuses Rowan and the shipyard on ensuring the rig or ship is ready for drilling operations as soon as it leaves the shipyard.

Our increased staffing and attention during the construction process has resulted in increased budget control, more predictable delivery timing and a better end product. We are an active partner with the shipyard and review lessons learned to ensure we continuously improve our processes. When we have a problem, we believe it is vital to have the shipyard accept and acknowledge the issues after the rig is delivered. By continuing to involve the shipyard, they have a better understanding of critical issues and how to address them in future construction projects.

Looking at the challenges of deepwater drilling, what equipment improvements can be made?

The Rowan Stavanger jackup, contracted to Talisman Energy, is expected to continue operating offshore Norway through March 2013. The rig is then scheduled to move to the UK sector of the North Sea on a contract lasting into November 2013.

Here are two examples of what we have done at Rowan:

First, we’ve spent about $12 million on each of our drillships to enhance riser gas-handling capabilities. We believe this provides a step-change improvement in managing the hazards of expanding gas in the drilling riser.

Second, with multiple software systems on each vessel from different vendors, we are using ABS’ integrated software quality management notation (ISQM) to drive consistency and exert control. ISQM is a risk-based software development and maintenance process built on internationally recognized standards. The ISQM process verifies the software installation on the facility and then monitors for consistency when there are software updates or a change in hardware. We believe this software assurance will benefit Rowan and its customers greatly.

A lot of people are talking about moving toward more automation. What is your take on this issue?

A lot of equipment around the rig floor on modern rigs is automated, or at least mechanized. While increased automation is beneficial as it removes personnel from dangerous operations, our experience has been that increased automation can lead to increased downtime or nonproductive time for technical issues or failures. The cause of these issues and failures is likely a lack of detail design and testing from the equipment manufacturer before equipment is installed on the rig. Failure mode analysis or hardware testing is key to really understand what’s going to happen when the equipment goes out to the rig.

You were recently reelected as the vice president of IADC’s offshore division for 2013. How does industry benefit from sharing between companies, even if they’re competitors?

Drilling contractors are competing aggressively; we never share any competitive data or information. However, I believe IADC and its committees are healthy for the industry, our customers and suppliers. Executives, managers and people in this industry are open about issues, particularly regarding safety. IADC safety reports, for example, are an excellent resource for sharing details of serious wellsite incidents that benefit the industry as a whole.

How has the dynamic between operators and contractors evolved since Macondo?

Some operators want drilling contractors more involved in their planning process, though many key decisions are made well before rigs are selected and contracted. Others are highly interested in contractors’ feedback as how to improve the efficiency of their operations. It varies with the customer, but across the board, operators are soliciting more input. Closer involvement has provided contractors with a much deeper understanding of operator challenges and what success looks like to our customers. Ultimately, the more drilling contractors are involved in operator processes, the more likely we are to jointly succeed.

2013 Drilling Conference chairman Øystein Arvid Håland will kick off the conference at an opening session on 5 March in Amsterdam.

The 2013 SPE/IADC Drilling Conference and Exhibition, 5-7 March in Amsterdam, will provide leading industry thinkers the opportunity to meet, discuss, evaluate and share ideas to advance worldwide drilling and completion operations.

Topics at the conference will include tubulars, well technology and field development, management and systems, and more. The program includes more than 100 papers, 37 e-Posters and a plenary session. A luncheon will be held on 6 March providing young professionals the chance to discuss industry and career topics with experienced professionals in a relaxed setting.

In the opening session on 5 March, welcome remarks will be provided by the 2013 Drilling Conference chairman, Øystein Arvid Håland, head of drilling & well for Statoil and a senior representative from SPE, as well as 2013 IADC chairman David W. Williams,chairman, president and chief executive officer of Noble Corp. The SPE Drilling Engineering Award also will be presented.

On 6 March, Ole Slorer, managing director of global oilfield services for Morgan Stanley Research will moderate the plenary session, “Delivering Wells in a Critical World,” that explores how the drilling industry is affected by and how it should respond to increased demands and growing expectations from its stakeholders.

In light of these expectations and increased public awareness about the impact of energy exploitation and use, how should our industry develop and evolve?

Get up-to-date information on the 2013 IADC/SPE Drilling Conference and Exhibition.