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

  • 26 November 2014

    US EIA: Increase in energy demand requires 33 million bbl/day more oil

    The world is going to need one-third more oil between 2010 and 2040, with developing countries, such as China and India, accounting for a major portion in the increase in...

  • 25 November 2014

    Prescriptive Analytics prescribes how to complete wells to maximize production

    "Big data" is taking on a new role in industry, where companies are combining the findings from geology and geophysics with new data collected from advanced technologies...

  • 25 November 2014

    Petrobras completes drilling first appraisal well in Libra Consortium

    Petrobras recently completed drilling the first appraisal well in the Libra area, the 3-BRSA-1255 (3-RJS-731), known as NW1. Located in the Northwest portion of the Libra block, in the pre-salt layer of the...

  • 24 November 2014

    Ensign secures contracts for 2 ADR 1500S pad drill rigs in Montney area

    Ensign Energy Services has signed contracts for two of its new ADR 1500S pad drill rigs for a major operator in the Montney area of northeast British Columbia...

  • 21 November 2014

    Statoil cancels Stena Carron rig contract offshore Angola

    Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola...

  • Read more news