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

  • 27 March 2015

    Gravity-deployed carbon composite cable completes first commercial deployment offshore Norway

    Ziebel, a Stavanger-based provider of specialist well intervention services for the oil and gas industry, announced that its Z-Line gravity-deployed...

  • 27 March 2015

    Petronas’ INSTEP training institute plans improvements for integrated, experiential learning

    Institut Teknologi PETRONAS (INSTEP) takes realism seriously when it comes to experiential learning – seriously enough to be planning...

  • 26 March 2015

    Wood Mackenzie: Falling costs to soften blow of slashed exploration budgets

    Exploration budget cuts in 2015 will average 30%, but that will be matched by an approximately equal fall in exploration costs...

  • 25 March 2015

    C&J Energy Services merges with Nabors’ completion/production services

    C&J Energy Services, (C&J) and Nabors Industries (Nabors) announced the completion of the combination of C&J with Nabors’ completion...

  • 25 March 2015

    Douglas-Westwood: Oilfield services expenditure to decline by 30% in 2015

    Global oilfield services (OFS) markets are facing difficult headwinds as a function of commodity prices...

  • Read more news