Home / 2016 / November/December

November/December

People, Companies & Products

Frode Kaland (left), VP Procurement, Kongsberg Maritime, and Roar Søvik, Siemens Director Marketing/Head of Process Industries and Drives Division, signed an agreement on 8 September between the two companies based on delivery of VFD components.

Kongsberg Maritime and Siemens have signed a partnership agreement based on delivery of components on variable frequency drive systems for offshore and maritime vessels. The agreement will strengthen the partnership between the two companies, enabling them to develop a larger footprint in the marine markets. The partnership with Siemens helps Kongsberg to provide a wider scope of supply to its owner and yard customers through development of “K-Power” products for variable frequency drives. As part of the proposed partnership, Kongsberg will use its own design for variable frequency drives and Siemens components as part of the total energy solution.

Read More »

In 2016, association stepped up wide-ranging advocacy efforts by engaging with and educating lawmakers, regulators, general public

SapuraKencana Drilling’s Louay Laham, who is serving as 1st Vice Chairman of the IADC Southeast Asia Chapter, speaks at a chapter meeting in Jakarta, Indonesia, on 24 May. The chapter saw very active participation at the meeting from SKK Migas, APMI, Pertamina, Pertamina Drilling Services Indonesia and Elnusa.

The PGRA staff is among several teams within IADC that are responsible for advocacy activities and intervention on behalf of the drilling industry. The PGRA team engages proactively with both US and global regulatory and legislative bodies, with policymakers, oil and gas producers and the media. The team focuses on working with regulatory bodies and organizations worldwide to influence policies, provide input on standards-making and pursue better regulation by providing counsel on proposed legislat

Read More »

Guest Editorial: US drilling industry, particularly in Texas, poised for burst of activity growth in 2017

sittonTN

The outlook for oil and gas drilling is strong, particularly in the United States. This year signified a shift in the oil and gas industry as oil prices have increased by more than 50% since their January 2016 lows. Now, we see the gap between global production and consumption beginning to narrow. While we are certainly in a challenging commodity environment, worldwide demand for oil continues to rise. That means more and more companies are going to start deploying additional capital to drill new wells.

Read More »

Global supply/demand forecasts, OPEC agreement signal modest recovery could be within reach

Speaking at the 2016 Deloitte Oil & Gas Conference on 21 September in Houston, ExxonMobil’s Rob Gardner said the operator expects oil to remain the world’s primary fuel through 2040. The operator also expects to see continued growth in oil demand from both the transportation and chemicals sectors. Photo Courtesy of Deloitte.

The downturn is still in full swing, but the seeds of optimism are beginning to sow within the industry. In late September, OPEC agreed to cut oil production during a meeting in Algiers. This is the first time in eight years that the oil cartel has agreed to reduce production levels. And with analysts predicting that global oil supply and demand are near a rebalance and that oil prices will average above $50/bbl next year, the hope of a rebound – if only a modest one – now seems within reach.

Read More »

Deepwater leveling out but likely to stay flat through 2018

Statoil has used the Transocean Discoverer Americas drillship in deepwater exploration projects in East and North Africa and the Gulf of Mexico. Next year, Statoil plans to undertake deepwater exploration in Brazil, Eastern Canada and the Barents Sea. Photo Courtesy of Paul Joynson, Hicks AP, Statoil.

When oil prices began falling in 2014, the industry’s collective hope was that they wouldn’t stay down for long. However, the industry is now closing out its second full year in a massive downturn, and there’s not much good news on the horizon for offshore drillers. Over the past two years, many of their older assets have been retired – 10 drillships, 52 semis and 27 jackups since July 2014, according to IHS. But that hasn’t been enough. The offshore rig market is still out of balance.

Read More »

Regulatory outlook: Air quality, methane waste prevention rules on the horizon while industry still working to clarify Well Control Rule

BSEE Director Brian Salerno testified before the US Senate and Natural Resource Committee in December 2015 regarding the then-proposed Well Control Rule. The final rule was announced in April 2016 and officially took effect on 28 July. However, the industry is still working with BSEE to get clear answers to questions about several of the rule’s requirements.

As the current administration draws to a close and the US prepares for the incoming president and Congress, several new regulations have recently been proposed or finalized by various regulatory bodies. Three items of concern are especially notable on the regulatory horizon: the Well Control Rule from the Bureau of Safety and Environmental Enforcement (BSEE), the Air Quality Rule from the Bureau of Ocean Energy Management (BOEM), and the Methane Waste Prevention Rule from the Bureau of Land Management (BLM). For many in the industry, the timing of these rules and proposals are clear attempts to push through new regulations before the current administration ends in January.

Read More »

As US LNG exports ramp up, increasing gas demand could mean higher rig counts for land drillers

The US is exporting LNG not just to nearby markets but also to markets in China, India and the Middle East, Oliver Tuckerman, Director of Strategy and Analytics for Cheniere Energy, said at the 2016 Deloitte Oil & Gas Conference in Houston on 21 September. Photo Courtesy of Deloitte.

The US Lower 48’s first liquefied natural gas (LNG) export, which left the Sabine Pass LNG liquefaction and purification plant, or “train,” in February, was a milestone that was empowered by the US shale revolution. As the US begins to build additional LNG trains –­ a second has been completed and five more are under construction –­ it will be up to the onshore drilling industry to support increasing exports by drilling more wells. “It’s one of the larger sources of growing demand that we see for natural gas, which is one factor that could make it more attractive for operators to drill wells,” John Krohn, Communications Manager for the US Energy Information Administration (EIA), said.

Read More »

Dayrates down, but rig demand remains stable in Middle East

Shelf Drilling’s Galveston Key jackup is drilling development wells in the UAE for National Drilling Company. The rig has a maximum drilling depth of 21,000 ft and can work in up to 300-ft water depths.

While drilling markets remain depressed around the world, the Middle East still stands as a growth market. In this region, demand for drilling rigs appear to be relatively stable and is likely to continue growing in 2017 and beyond. “Few rigs have come off contract without going back to work,” said Niels Espeland, President, International at Grey Wolf Oilfield Services. “The Middle East has been stable throughout the cycles. Due to its unique drivers, there’s always been growth regardless of the global market cycles.”

Read More »

Perspectives: Teresa Scott, Nabors: Training, robust safety culture are necessary to ensure the safe reactivation of rigs whenever the upturn comes

teresa-scott-finalCropped

Over her 20 years in human resources in the oil and gas industry, Teresa Scott has worn many hats. “HR is not just one job,” said Ms Scott, currently Human Resources Manager at Nabors Corporate Services. “We’re employee relations and talent acquisition, and we’re strategic partners in the business. It’s a little bit of everything, and the job is never dull.”

Read More »