CATEGORIZED | News

IADC chairman: Industry will move forward to build environmental culture; long-term outlook strong

Posted on 23 April 2009

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.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 29 January 2015

    PetroQuip deploys BigFoot toe sleeve in Anadarko Basin

    PetroQuip Energy Services successfully implemented its revolutionary toe sleeve, BigFoot, in a recent horizontal completion for an independent operator...

  • 28 January 2015

    Chevron collaborating with BP, ConocoPhillips to explore 24 leases in deepwater Gulf of Mexico

    Chevron will collaborate with BP and ConocoPhillips to explore and appraise 24 jointly-held offshore leases in the northwest portion of Keathley Canyon...

  • 28 January 2015

    BP forms alliance to advance Paleogene discoveries in deepwater Gulf of Mexico

    BP has formed a new ownership and operating model with Chevron and ConocoPhillips to focus on moving two significant BP Paleogene discoveries closer to development...

  • 27 January 2015

    US EIA: Lower 48 oil production outlook stable despite expected rig count reduction

    The sharp decline in oil prices over Q4 2014, which has continued in January, is already having a significant effect on drilling activity in the US, according...

  • 27 January 2015

    Hess announces 2015 capital, exploratory budget

    Hess Corp announced a 2015 capital and exploratory budget of $4.7 billion, a 16% reduction from its 2014 actual spend of $5.6 billion. Of this, $2.1 billion (45%) is budgeted for unconventional shale resources...

  • Read more news