He said that environmental benchmarking will be an increased focus area for IADC. “Right now, the HSE Committee is working on internationalizing IADC guidelines for collecting environmental data by adding specifications relevant to European Union requirements,” he said.
Mr Hemmingsen acknowledged that the world economy has thrown the global drilling industry into turmoil. However, he expressed confidence that the long-term outlook is very positive.
“Only a year ago, we were facing rapidly increasing oil prices, to unprecedented and seemingly unsustainable levels,” he remarked. “Immediately thereafter we saw a fast and dramatic decline to a level which took us back to 2005.
“We currently see an industry operating in somewhat stormy waters. The uncertainties in demand from the oil companies and the prevailing global financial situation have provided the drilling industry with some anxiety for the future.”
On the other hand, Mr Hemmingsen pointed out, “Less than five years ago, the industry expressed optimism – and hope – at the prospect of an oil price sustainably above the USD$40 per barrel mark. By these standards, the current oil prices is way beyond this range!”
The industry must expect to adjust costs to levels appropriate for its now-reduced revenues. This is a sharp turnaround from the startling cost increases that occurred over the last couple of years.
Short term, the industry faces diverse challenges:
• Unpredictable market with volatile oil prices leading to uncertainty in demand;
• Depleting oil fields requiring extensive work;
• Need for increased exploration;
• Call for more advanced technology to improve efficiency and HSE.
“It is my strong belief that we are capable of meeting all these challenges in a successful and professional way that matches the expectations of our partners and clients,” Mr Hemmingsen said.