Home / News (page 14)


Garvin: Systems, processes must be in place to keep workers safe as rigs go back to work


It’s been approximately 20 months since the downturn began, and uncertainty persists over how much longer the market will remain depressed. Dayrates are down by approximately 40% on average, and many contractors are operating on negative margins. Some have even been pushed out of the market altogether, Mike Garvin, Senior Vice President, Operation Support at Patterson-UTI, said at the 2016 IADC Asset Integrity and Reliability Conference on 31 August in Houston. “Back at the peak, there were 171 drilling contractors operating at least one rig in the United States. Today, we're at 87, so half of the drilling contractors have quit working over the last two years,” he said.

Read More »

Future success depends on non-linear innovation, closing the possibility gap


In the midst of the industry’s worst downturn since the 1980s, many oil and gas companies may be focused on today, not thinking much about the future. However, companies must balance managing the present with planning for the future if they want to become and remain an industry leader, said Dr Vijay Govindarajan, Coxe Distinguished Professor at Dartmouth University’s Tuck School of Business. “Because an organization is a leader today, you cannot assume you will be a leader tomorrow. Earning that leadership is what strategy is all about,” Dr Govindarajan said on 23 August at the Landmark Innovation Forum and Expo, hosted by Halliburton in Houston. “Strategy is always about creating your future while managing your present.”

Read More »

BP signs second Chinese shale gas contract with CNPC


BP announced that it has signed a second production-sharing contract (PSC) for shale gas exploration, development and production with China National Petroleum Corp (CNPC). The PSC, signed on 27 July, covers an area of approximately 1,000 sq km at Rong Chang Bei in the Sichuan Basin. In March 2016, BP and CNPC signed their first shale gas PSC on the adjoining Neijiang-Dazu block. As with the earlier contract, CNPC will operate the Rong Chang Bei PSC. “We are pleased to be making further progress in our strategic partnership with CNPC and deepening our business in China. This second shale gas PSC in China builds on the successful cooperation we are already seeing with the Neijiang-Dazu PSC signed in March,” Bob ...

Read More »

Reid: Downturns are painful, but they’re also good for our industry


At the 2016 IADC/SPE Asia Pacific Drilling Technology Conference, held 22-24 August in Singapore, one panel session was devoted to the question of whether the various stakeholders in the industry can achieve mutual profitability in transformational times such as these. For David Reid, Chief Marketing Officer for National Oilwell Varco (NOV), the answer is simply that we must, and we will. “We understand that we must find a way,” he said, adding that downturns – while painful – is actually good for the industry. When times are good, companies typically don’t have time for anything but execution. But when times are bad, it’s time to learn and improve. “It causes us to ask really hard questions,” he said.

Read More »

ABS, partners test Polar Code requirements through search and rescue exercise offshore Norway

Screen Shot 2016-08-25 at 3.23.50 PM

In April, ABS partnered with the Norwegian coast guard, academic institutions and other stakeholder companies to perform a search and rescue exercise in Svalbard, Norway. The University of Stavanger, Company GMC and the Norwegian Coast Guard organized the exercise, which took place on the K V Svalbard, a Norwegian Coast Guard vessel. The exercise was conducted to gain a better understanding of the IMO Polar Code’s requirements, which many in the industry regard as vague, according to ABS. For example, the code requires the crews of maritime vessels, including drilling rigs, to be equipped be able to survive five days in polar waters while awaiting rescue. There was concern about whether this was even possible with existing equipment, said ABS ...

Read More »

To reduce system costs, industry must look to collaboration, digitization, integration


By Linda Hsieh, Managing Editor Although the industry has been working to reduce costs in this downturn, few structural changes have been introduced, particularly toward total system costs. In the face of not just low oil prices but also competition from renewable energy sources, “if we don’t manage to reduce our finding and development costs, we will be out of market in 50, 60, 70 years because other industries are consistently reducing costs,” Rajeev Sonthalia, President of Integrated Drilling Services for Schlumberger, said at the 2016 IADC/SPE Asia Pacific Drilling Technology Conference on 22 August in Singapore. He urged the industry to look further at collaboration, noting that earlier collaboration between supplier and operator is necessary in order to engineer ...

Read More »

Petronas implements enterprise-level real-time data management infrastructure

Petronas implemented the Real Time Well Solution, an enterprise real-time data management solution with web-based delivery, in 2014. The data management infrastructure is helping the operator to better manage its rig-site drilling operations from remote locations.

Although Petronas had established its Smart Drilling Optimization Monitoring Centre (Smart DOMC) in 2010, the operator decided in 2014 to change its approach to rig-site monitoring. “At that time, the environment of the real-time (monitoring) was fully managed by a service company, so we felt that we didn’t have control,” Noorazmah Yusoff with Petronas said in a presentation at the 2016 IADC/SPE Asia Pacific Drilling Technology Conference, held 22-24 August in Singapore. “We wanted to have more control of the data, from the location portion up to the integration portion of it.”

Read More »