IADC CONNECTION • EDITORIAL
To help the public understand
essential role oil and gas plays,
we must each become advocates
FROM THE CHAIRMAN
To achieve energy security, reduce energy
poverty and meet the needs of a grow-
ing worldwide population, the world must
responsibly and efficiently embrace and
develop all energy sources. Despite what
some people may think, attaining energy
reliability and security demands a height-
ened investment in the production of oil
and gas. As such, the drilling industry
is, and will remain, essential to ensuring
access to affordable, reliable energy sourc-
es that support shared prosperity, growth
and innovation globally.
While we will undoubtedly see dispro-
portionate growth in renewables, OPEC
projections indicate oil will continue to
have the largest share of the global energy
mix until at least 2025, when its market
share is forecasted to decline to about 28%
from 30% today. During this same period of
time, volumetric demand for oil is expect-
ed to increase by 13.8 million bbl/day to
104.4 million bbl/day, and by as much as
17.6 million bbl/day to 108.2 million bbl/
day in 2045.
In a recent “Intelligence Matters” pod-
cast by CBS News Radio, Daniel Yergin,
the Vice Chairman of S&P Global, pointed
out that oil, which was discovered in
Pennsylvania in 1859 and Texas in 1901,
didn’t overtake coal as the world’s No. 1
energy source until the 1960s. Even so, in
2022, the world uses three times as much
coal as it did in the 1960s. Mr Yergin
highlighted that while the political focus
is clearly a transition toward global
decarbonization, what we are actually
seeing occur is an energy expansion,
where all sources are essential to create a
sustainable energy economy. He pointed
out that if net zero goals are pushed too
quickly, severe economic disruptions are
likely. In the context of strong demand for oil
and gas across most regions of the world,
there is a vital appreciation for the impor-
42 tance of energy reliability and security.
Therefore, the recent, and sharp, increase
in marketed rig utilization and dayrates
are unsurprising; and, given the underly-
ing fundamentals, it is clear that the drill-
ing industry, and particularly deepwater
offshore drilling, is in the vanguard of a
sustained market recovery.
That said, challenges remain. A funda-
mental misunderstanding of the impor-
tance of oil and gas could lead to irrespon-
sible and, potentially, detrimental regula-
tion, bureaucracy and funding deficits that
ultimately impede investment in technol-
ogies needed to achieve carbon footprint
reductions, while delivering vital servic-
es. That’s why the advocacy of everyone
working within our industry to further the
public’s understanding of the benefits of
oil and gas, and the essential role energy
plays within national and global econo-
mies, is essential to ensure that we attract
the next generation of talent, as well as the
funding required to develop and deploy the
technology needed to propel our industry
forward. The bottom line is straightforward:
Investment in new technologies is, and
will continue to be, essential if our indus-
try is to provide more energy with lower
emissions. At Transocean, we continue to invest
in and deploy new technologies to sup-
port safer, more reliable and more efficient
operations, from our Smart Equipment
Analytics “SEA” system to our HaloGuard
personnel safety system. Beyond technol-
ogy, we are also investing in our people
by offering opportunities to expand our
team members’ knowledge and expertise
as careers grow and evolve.
While our industry possesses the dis-
tinct advantage of already employing
some of the best and the brightest, this
is an opportune time for us to attract
even more smart, creative, committed and
Jeremy Thigpen, IADC Chairman
ambitious individuals to join us. The skill
set required on rigs, for instance, has
changed. Due to technological advances,
robotics, remote operations, etc, opportu-
nities on drilling rigs have become less
physical and more technical than in the
past. The technical competencies of our
crews is and will be key as our rigs
become more advanced. For instance, at
Transocean, we recently took delivery of
one of two new eighth-generation drill-
ships – the Deepwater Atlas – and we
are approaching the delivery of the sec-
ond, the Deepwater Titan. These will be
the industry’s only two eighth-generation
drillships, set apart by their ability to drill
and complete 20,000-psi prospects with an
industry-leading net 3-million-lb hoisting
capacity. It is undeniable that the drilling busi-
ness is changing in exciting ways and
the future is bright for those who are
perpetual learners interested in joining a
dynamic, versatile and innovative indus-
try. I’m excited for what’s ahead for our
industry. We are just scratching the sur-
face of what’s possible as we continuously
advance as technical leaders, and work
toward producing more energy with lower
emissions. As an industry, we must keep inno-
vating, we must keep advocating, and
we must keep educating to attract new
talent and the necessary capital for the
future. Moreover, we must keep drilling
to meet the global demands of a world
whose economies and people rely upon
the oil and gas we help produce each
day. DC
NOVEMBER/DECEMBER 2022 • DRILLING CONTRACTOR