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November/December

People, Companies & Products

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.

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

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

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

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.

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

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.

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Deepwater leveling out but likely to stay flat through 2018

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.

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

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.

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

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.

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Steadfast commitment to member service as IADC heads into 2017

When I stepped into the role of President of IADC in March, I announced that my focus, and the focus of the IADC staff, would be on member service. After more than 20 years with IADC, I have a profound appreciation for the work our members do to make our industry better. And I strongly believe that an association that represents and advocates for drilling contractor interests plays a vital role in this industry.

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News Cuttings

On 23 September, the Oil and Natural Gas Subsector Coordinating Council (ONG-SCC) hosted a 2-hr educational session for the US Department of Energy and other agency staff who are involved or interested in how the oil and natural gas industry works and how it prepares for and responds to weather-related events.

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