By Amy Rose, IADC Director of External Relations
Government and Industry Affairs
IADC’s Government and Industry Affairs Division is responsible for advocacy activities on behalf of the drilling industry. The team is tasked with proactively engaging with both US and global regulatory and legislative bodies, policymakers, oil and gas producers and the media to influence policies, provide input on standards making and pursue better regulations. This year, IADC’s advocacy team was consolidated to comprise both onshore and offshore expertise, which will enable a cohesive and consistent advocacy effort.
IADC continues to maintain a strong presence in Washington, DC, and in June hosted another “fly-in” for IADC members to meet with members of Congress and regulatory agencies. The fly-in is a unique opportunity for IADC members to talk directly with elected officials, providing an in-depth look at our industry and the economic benefits of drilling activities. As has become custom, members hosted an educational “Drilling Industry 101” lunch and learn for Hill staffers. In addition, IADC presented 30 members of Congress with the IADC Legislator Award in recognition of their support of the oil and gas industry.
In June, IADC representatives were invited to participate in a roundtable organized in DC by the US Department of Interior (DOI). Interior Secretary Ryan Zinke moderated a discussion with energy executives and trades that focused on the project permitting processes and the internal reorganization of the DOI.
Throughout the year, members of the advocacy division also engaged in discussions with the US Bureau of Safety and Environmental Enforcement (BSEE), including Director Scott Angelle, as well as officials at the Bureau of Land Management, the Coast Guard (USCG) and the Department of Labor’s Occupational Health and Safety Administration (OSHA).
Another advocacy tool is the IADC DRILLERSPAC, which was established to further the association’s goal of engagement with federally elected members of Congress. The mission is to support political candidates who support the drilling industry. In 2018, the DRILLERSPAC, which is not affiliated with any political party, raised more than $25,000 and supported more than a dozen candidates.
Members of the advocacy division were active on a variety of topics that had the potential to significantly impact drilling contractor operations. On BSEE’s proposed Well Control Rule, IADC hosted joint industry work groups to coordinate a strong response and comments. Equally, IADC worked with industry groups to develop a joint response to the Bureau of Ocean Energy Management’s (BOEM) Draft Proposed Offshore 2019-2024 Leasing Plan. In September, IADC praised the USCG’s decision to withdraw a decades-old proposed regulation that would govern Outer Continental Shelf activities. The association is also working closely with the USCG on a proposal that would more adequately reflect current industry technology.
IADC’s advocacy staff also actively contributed to the National Offshore Safety Advisory Committee (NOSAC) and participated in the continued development of API Standards 53 and 54. They engaged proactively with the Alaska Support Industry Alliance and with the SafeLandUSA Advisory Group. They were also invited to participate on the Texas Railroad Commission’s Education and Workforce Development Summit, where IADC will serve on the Curriculum and Workforce Scholarship subcommittees. IADC also continued to monitor and serve on several International Maritime Organization (IMO) subcommittees and on the International Organization of Standardization (ISO).
In 2018, the Government and Industry Affairs team published several reports on regulatory activities, including the semi-annual reports, “Federal Regulatory Actions Impacting Offshore Drilling” and “International Standardization Activities Affecting the Oil and Gas Industry.”
“Combining the offshore and onshore advocacy teams under the same umbrella at IADC has really made a difference this year,” said Elizabeth Craddock, IADC Vice President, Government and Industry Affairs. “I have seen not only the positive impact it is having on the individual team members but also in IADC’s effectiveness as advocates for the drilling industry. I expect even better results in 2019 as we continue to make more inroads throughout the top drilling states in the US. Stay tuned!”
Accreditation and Credentialing
IADC’s Accreditation and Credentialing Department (ACD) is responsible for guiding companies in their efforts to ensure quality and consistency in training content and adherence to relevant industry standards. IADC-accredited providers are held to high standards to ensure that drilling industry personnel are prepared to perform their jobs safely and efficiently.
Under the leadership of Vice President Mark Denkowski, ACD passed the ISO 9001:2015 recertification audit in February with zero findings and a commendation for improvement since the previous year’s audit. The new risk-based ISO standard is centered around quality management principles, including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement.
Members of ACD are recognized for their involvement in drafting and implementing the industry’s leading training programs. In 2018, IADC was invited to speak at a variety of workshops and conferences, including the 2nd Annual Inter-American Hydrocarbon Regulator’s Forum, SPE Safer Offshore Energy Summit and a NORA counsel meeting. They also participated in the IADC Caspian Chapter meeting, the IADC HSET Asia Pacific Conference and the IADC International Well Control Conference.
In 2018, ACD worked collaboratively with industry experts to produce new and/or updated training programs that address current technology. These include the updated Competence Assurance Accreditation and Guidelines for Building a Competence Program. IADC worked with industry and competence SME auditors to update the handbook with enhanced requirements that reflect industry best practices.
In the three years since it was launched, the IADC WellSharp program has certified close to 100,000 industry personnel, providing them an industry-best standard for well control training. Since its launch in 2015, WellSharp has expanded to include 10 drilling operation and well servicing courses, more than 500 instructors, 160 accredited training providers, and more than 1,000 test proctors. It is offered in five languages in 37 countries. IADC, through its Proctor Program and in collaboration with Lloyd’s Register, continues to be the biggest employer of veterans involved with the Wounded Warrior program in the United States.
The ACD team worked with a committed group of industry experts to draft new course levels for WellSharp. Well Servicing courses added in 2018 are Coiled Tubing, Snubbing, Wireline, Workover, Oil and Gas Operator Representative and a Subsea Supplement specialty training. In late 2018, the group will introduce a Well Servicing Introductory course and a WellSharp Plus course, with work under way on a Drilling Operations Engineer course that is expected to be launched in 2019. The increasingly comprehensive list of courses is intended to encourage companies to send their personnel to the course that is specifically designed for their position on the rig.
Looking to the future, ACD is considering a new venture that will measure baseline knowledge retention, facilitate continuous learning and reduce knowledge decay between renewal cycles.
“In 2018, we migrated all of our accreditations programs into a new database, which not only added improved functionality for recordkeeping and student performance metrics but also significantly improved interactions between our training providers accreditation staff,” Mr Denkowski said. “In 2019, we will work toward the continual improvement of our accreditation programs and the development of tools to aid in well control knowledge gap identification and closure through the new Continuous Learning and Knowledge Retention program.
“IADC’s accreditation programs, in partnership with hundreds of industry subject matter experts, continue to represent the very best in industry training specifically because it was developed by industry, for industry,” he continued.
The International Development Division, under the leadership of Vice President Mike DuBose, works to represent IADC and drilling contractor interests around the world. With a network of regional representatives based in Europe, the UK, Brazil, the Middle East, Asia Pacific and Australasia, IADC has localized expertise in the primary regions where members have operations. Regional representatives work closely with local IADC chapter members and maintain relationships with government officials and regulators.
“IADC’s regional representatives are an invaluable contributor to the association,” Mr DuBose said. “Each of our six representatives are uniquely positioned to serve as effective advocates for both the industry and IADC. They are out and about, listening to member concerns and devising strategies to solve the local issues.
“This year, we’ve worked on a variety of issues with great success. As we look forward to the coming year, we will continue to work to advance IADC’s influence on a worldwide scale,” he continued.
In 2018, members of the division were active on a variety of issues and participated in a number of workgroups. IADC was present at the Indonesian Petroleum Association (IPA) Annual General Meeting in Jakarta, and maintains an ongoing partnership with IPA on the Indonesian cabotage issue. Members of the division also attended the Australian Petroleum Production & Exploration Association (APPEA) conference, where they met with regulators from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) and the South Australia onshore regulatory agency. Also in Australia, IADC continues to monitor the Australian State of Northern Territory onshore hydraulic fracturing activities.
The International Development group continued to work with the Lebanese Petroleum Authority, particularly regarding drafting petroleum activities regulations for that country. The group also worked closely with the IADC Northern Arabian Gulf and Southern Arabian Peninsula chapters to address the value added tax (VAT) measures that went into effect in January.
The group continues to maintain relationships and a continuous dialogue on regulatory and legislative matters with the Danish Energy Agency, the Petroleum Safety Authority in Norway and the State Supervision of Mines in Holland, as well as with the UK Health and Safety Executive. IADC also continues to monitor the implementation of the Offshore Safety Directive.
IADC’s international chapters were also active this year. Most notably, the Caspian Chapter was revitalized and hosted several events, including the Chairman’s Trophy golf tournament in May and a workplace diversity meeting in February that focused on women in the oil and gas industry.
Earlier this year, the North Sea Chapter celebrated its 45th anniversary, and the group again recognized the very best in safety at its annual awards gala in April. During its 53rd Annual General Meeting, the Australasia Chapter also recognized excellence in safety performance in that region. The South Central Asia Chapter (India) hosted a Hand & Finger Injury Workshop that was attended by more than 40 people and featured presentations and case study exercises. The Brazil Chapter worked with several industry groups to help prevent the advance of a bill that would have changed Repetro in the state of Rio de Janeiro. The Southern Arabian Peninsula Chapter completed its first chapter charity project, a water well, located in Niger, Africa, that will provide water benefits to 250 people.
The International Development group, alongside the IADC Conference team, was instrumental in the establishment of the Critical Issues Latin America Conference, which was hosted in Mexico City in October. It was the first IADC conference hosted in Mexico and offered delegates an opportunity to take a deep dive into the emerging markets in the region.
The Division is also responsible for IADC’s network of student chapters, which aim to engage with students considering careers in the oil and gas industry. Currently, IADC has student chapters at Texas A&M University, the University of Louisiana at Lafayette and Missouri University of Science and Technology. This year, students involved in the chapters attended several IADC conferences and were invited by various IADC members, including M-I Swaco, Patterson-UTI, Weatherford and Halliburton to visit their rigs and equipment facilities. In 2019, the program is expected to expand to welcome new university student chapters.
IADC has recognized well control as an area of focus, and it is a priority of the association as seen through the myriad of programs and initiatives that IADC has championed to address this pressing issue.
IADC’s Accreditation and Credentialing Division addresses well control through the development and implementation of training courses. The IADC Well Control Committee provides a forum for collaboration and exchange of best practices related to well control, and the IADC Well Control Conference of the Americas offers yet another way for industry personnel to come together to share information.
In addition to training programs and providing a forum for discussion and development of solutions, IADC is also tackling the topic of well control through the RAPID-S53 BOP Reliability Database effort and within the Well Control Institute (WCI).
The Reliability and Performance Information Database, or RAPID-S53, is a joint industry project between IADC and the International Association of Oil and Gas Producers (IOGP). It is designed to collect data on BOP performance as specified in API Standard 53. The JIP, which originated as a data-gathering effort by seven offshore contractors in 2015, was restructured to continue on an ongoing basis, with fees for participants adjusted annually. Participants in the JIP include 14 contractors, 12 operators and three OEMs.
Throughout the year, the group focused on gathering population and cycle-count data to aid in trend analysis and reliability prediction, and selected learnings from the collected data were shared with industry groups, including the API Standard 53 Subcommittee. At the API Winter Standardization Conference, JIP members provided information learned regarding regulators, shuttle valves and SPM valves. The group also hosted a data quality workshop for all RAPID-S53 participants.
JIP participants also worked with both BSEE and the US Bureau of Transportation Statistics (BTS) to produce its 2016 report on equipment failure reporting, required under the Well Control Rule. In 2018, the JIP continued to work with BTS on the 2017 report.
In June, IADC attended the International Regulators Forum meeting in Aberdeen, UK. Steve Kropla, IADC Vice President, Special Projects and Member Initiatives, was invited to present an overview of both the joint BOP project and IADC’s WellSharp well control accreditation program. Mr Kropla was also invited to discuss the RAPID-S53 2017 Annual Report as part of a panel discussion at the Center for Offshore Safety’s Annual Forum.
The WCI functions as an industry clearinghouse to study recent well control events and issue recommendations on how well control performance might be improved. Its Board of Directors is comprised of those at the highest levels at companies representing drilling contractors, operators, service companies and equipment manufacturers.
The Competency Assessment Workgroup, under the chairmanship of Charlie Holt, BP, produced a white paper that was approved by the WCI Board of Directors in March. The group also nominated and voted on two new WCI Board of Director members in 2018 – Carey Lowe of Ensco and Kim McHugh of Chevron.
Drilling Services Division
The IADC Drilling Services Division is a working organization comprising five committees – Advanced Rig Technology (ART), Cybersecurity, Drilling Engineers, Technical Publications, and Underbalanced Operations and Managed Pressure Drilling (UBO & MPD). Lee Womble with Cameron, a Schlumberger company, is IADC’s Vice President-Drilling Services.
Led by Chairman Robin Macmillan, National Oilwell Varco, and Vice Chair Trenton Martin, Transocean, the ART Committee’s mission is to improve safety and efficiency through sound operating procedures, design of automated systems and standardizing automation.
The ART Committee comprises two subcommittees and sponsors three Spark Tanks each year, as well as the annual IADC Advanced Rig Technology Conference.
Earlier this year, the IADC ART BOP Controls Subcommittee delivered recommended control-valve qualification testing guidelines for SPM and shuttle valves. The guidelines address design, testing parameters, operations, maintenance and record keeping. The guidelines are available as an electronic book through the IADC eBookstore.
These testing guidelines are intended to be evergreen, with additional testing recommendations for other valves to be added in the future.
Currently, the subcommittee is working on testing recommendations for relief valves and regulators. The 2017-2018 work has been led by then-Chairman Roy Mills, formerly with Noble Corp, and Co-Chair Mitch Eichler, Parker Hannifin.
The IADC ART Drilling Control Systems (DCS) Subcommittee, chaired by Nathan Moralez, BP, and co-chaired by Robert van Kuilenburg, Noble Drilling, is engaged in a major project to evaluate and revamp the IADC Daily Drilling Report (DDR), both in print and electronic formats. This work is seen as critical as the industry moves toward greater digitization, which will require more granularity in defining job operations.
The DDR has traditionally served as proof for any financial obligations, tracking performance to improve efficiency, logging drilling data, logging equipment use, payroll, and more.
The project, directed by the IADC Executive Committee, is called DDR Plus. The subcommittee first conducted a survey to assess industry opinions, experiences and recommendations regarding the DDR. A total of 134 industry professionals responded, more than half of them drilling contractors.
In addition, Mr Kuilenburg devised a draft analysis of rig states relevant to wellsite operations. Currently, the IADC DDR lists 23 rig states, or codes, but no subcodes to provide greater granularity.
Software in the form of an executable schema will be developed to allow use of the newer, more robust electronic DDR on the rig. Ultimately, the IADC system could be used as an enabler for automation.
A subcommittee work group collected subcodes contributed by several drilling contractors and from the Canadian Association of Oilwell Drilling Contractors (CAODC). CAODC also works from a base of 23 subcodes. In the early 1970s, IADC gave permission to CAODC to adopt the IADC DDR for its own use.
David Shackleton, IDS, is leading the effort to develop the list of subcodes and even sub-subcodes. At press time, 450 subcodes and 223 sub-subcodes had been identified. The subcommittee is now working to refine and reduce the list to minimize the number of subcodes. Updates will be provided on the Resources page of the ART Committee website. The subcodes and sub-subcodes will be used in the electronic DDR Plus.
Most are applicable to both onshore and offshore operations, while others are relevant only to either onshore or offshore. The planned DDR Plus schema will offer a choice between onshore or offshore, and the user will see only the codes applicable to that choice. The group also discussed differentiating between jackups and floaters, but no recommendation was reached.
In addition to reducing the number of subcodes, the subcommittee will work to improve definitions of the main codes.
ART has convened two Spark Tanks this year, with a third planned for 12 December. The Spark Tanks are forums where new and developing technologies (“sparks”) are presented to a panel of operators and contractors (“sharks”), who provide feedback to the presenter.
The purpose of the Spark Tanks is to provide technology developers with insights on what is important to their prospective customers. “There is sometimes a vast disconnect between a good idea and a great product, and the Spark Tanks attempt to close that gap in a good-natured, productive manner,” said IADC Group Vice President/Publisher Mike Killalea.
Sharks who participated at the last three Spark Tanks were:
• Anil Godumagadda, Patterson-UTI Drilling;
• Duane Cuku, Precision Drilling;
• Kevin Lacy, Proactive Real Time Solutions;
• Theresa Baumgartner, Shell;
• Sean Halloran, Ensign Energy Services;
• Paul Pastusek, ExxonMobil Corp;
• Kelli Fereday, BP;
• Alan Quintero, Rowan Companies;
• Keith Lynch, ConocoPhillips; and
• Robin Macmillan, NOV.
The ART Committee also organized the 2018 Advanced Rig Technology Conference, held 11-12 September in Austin, Texas.
Drilling Engineers Committee (DEC)
The DEC, led by Chairman Dennis Moore, Marathon, hosts four technology forums each year, in addition to sponsoring JIPs. Each tech forum centers on a theme. Themes, dates and host companies for the four 2018 events are:
• Drilling the Unconventional Resources Plays, 21 March, Wild Well Control;
• The New Age in Drilling, 13 June, NOV;
• Contemporary Challenges in Exploration Drilling, 19 September, Weatherford; and
• Impact of Advances in Technology on Equipment Performance and Reliability, 14 November, Halliburton.
The DEC also took on two new JIPs this year, bringing the total to five. DEC does not provide financial support to the JIPs, nor does it benefit from JIP findings. The JIPs and principal investigators are:
• DEC-1, Drilling Systems Automation (DSA) Roadmap: John de Wardt, DE WARDT & CO;
• DEC-2, Decision Support for Dynamic Barrier Management: Amar Ahluwalia, DNV-GL;
• DEC-3, Rho Ve Method Software Concept: Matthew Czerniak, GCS Solutions;
• DEC-4, Independent Verification and Validation of Sensors and Systems in Drilling: Phase I: Maria Araujo, Southwest Research Institute;
• DEC-5, Apply Data Science for Rapid Modeling of Dual Fuel Technology for Life Cycle Assessment: Carolyn LaFleur, HARC.
In 2018, the IADC Executive Committee voted to promote the ART Cybersecurity Subcommittee to a full committee, with Chair Siv Hilde Houmb, Secure-NOK, and Juan Negrete from Rowan and Ben Ramduny from Seadrill selected to co-chair.
The committee issued the “Guidelines for Minimum Cybersecurity Requirements for Drilling Assets” early in the year and continue to work on “Guidelines for Network Segmentation”; guidelines for hardening of control systems focusing on existing drilling assets; guidelines for security monitoring and audit; and cybersecurity training guidelines that focus on risk assessment and management.
Committee members actively participated in lobbying on legislation that would have had negative impact on cybersecurity in the drilling industry in the US, including H.R. 3103 and S.2083: Strengthening Cybersecurity Information Sharing and Coordination in Our Ports Act of 2017.
In April, IADC was invited to meet with the USCG and National Institute of Standards and Technology (NIST) to discuss the committee’s published guidelines and the NIST Cybersecurity Framework Offshore Operations Profile.
Members of the committee worked closely with other industry groups, including the Oil and Natural Gas Information Sharing and Analysis Center (ONG-ISAC), to prioritize cybersecurity efforts, and coordinated with API on a joint paper, Cyber Risk Management of the Industrial Control Systems in Offshore and Onshore Oil & Natural Gas Industry.
In April, the committee hosted a cybersecurity workshop, in which companies discussed their approach to the topic. In December, the committee is hosting a cyber exercise in Houston, which will bring together drilling contractors, operators, service companies, the USCG and the ONG-ISAC to demonstrate how a cyber incident would play out in real time.
UBO & MPD Committee
The IADC UBO and MPD Committee, chaired by André Fernandes, Petrobras, is an active group that has developed numerous guidelines in its technical area that have been adopted by API.
This year, members of the committee worked on the influx management annex for the API RP 92S and API RP 92M and comments on the API 16 RCD document. The HSE and Training subcommittee completed the MPD training curriculum document and continued development of API RP 92C (control mud level). The committee also assisted BSEE with the MPD Notice to Lessees and Operators.
The IADC Communications Division, through its flagship Drilling Contractor magazine, the Drilling Contractor website and 12 issues of eNews, has continued to reliably share news about drilling and completion advances, innovations and achievements to the industry.
In 2018, Drilling Contractor kicked off the year with its Critical Issues in Drilling and Completions, which featured interviews with industry leaders who were invited to share their thoughts on a wide variety of hot-button industry topics, including workforce challenges, evolving rig technology and the role of drilling contractors. These individuals were:
• Kevin Neveu, Precision Drilling;
• Christophe Amadei, Total;
• David Reid, NOV;
• Ihab Toma, Vantage Drilling;
• Garrett Jackson, Devon Energy;
• Arindam Bhattacharya, Schlumberger Land Rigs;
• Byron Dunn, Independence Contract Drilling; and
• Etienne Roux, Weatherford.
Throughout the year, Drilling Contractor served a key role as the premier news source for the drilling industry. Interviews featured in the magazine this year include those with Christopher Papouras, Nabors Drilling Solutions; Pham Tien Dung, PetroVietnam Drilling & Well Service Corp; Chayong Borisuitsawat, PTTEP; and Anthony Gallegos, Sidewinder Drilling.
The Communications Division also hosted one virtual panel discussion this year, “Today’s Digital Oilfield: Dangers and Opportunities,” which aired on 9 January.
IADC’s Communications Division is also responsible for the continued development of Drilling Matters, IADC’s multimedia web-based educational tool. This year saw the addition of four new modules: Drilling It Safely; Live an Adventure: Make Your Career in Oil & Gas; Renewables: Did You Know?; and Coal: Did You Know?
In July, IADC donated a kiosk, pre-loaded with all of the Drilling Matters interactive modules, to the Ocean Star Offshore Drilling Rig Museum and Education Center in Galveston, Texas. Also in the summer, Mr Kilallea was invited to speak on the Drilling Matters project at SPE’s Enhancing HSE Performance for Drilling Operations workshop. DC