2014IADC, Regulation, and LegislationNovember/December

2014 operational summary: Year of delivery for IADC divisions

By Amy Rose, Director of External Relations

Operational integrity

Steve Kropla, Vice President of IADC’s Offshore Division, has continued to serve on OGP/WEC task groups this year, contributing to projects aimed at catalyzing improved performance for the global drilling industry.
Steve Kropla, Vice President of IADC’s Offshore Division, has continued to serve on OGP/WEC task groups this year, contributing to projects aimed at catalyzing improved performance for the global drilling industry.

The IADC Operational Integrity (OI) Division, comprising the Onshore, Offshore, Drilling and Well Servicing, QA/QC, and Accreditation and Credentialing Divisions, devoted time and expertise to promoting the interests of IADC members across the globe. Mark Denkowski, Executive Vice President – Operational Integrity, leads the dynamic group.

“The OI group in 2014 worked closely with all of our stakeholders to ensure that IADC’s programs and initiatives accurately reflect the drilling industry’s critical needs,” Mr Denkowski commented. “We had an impressive year, with the completion and delivery of several key projects that have already had a positive impact on the industry.”

The division was reshaped in 2014 to better align IADC staff capabilities with member needs. Mr Denkowski was named Executive Vice President of the group. Steve Kropla was named Vice President, Offshore Division. Upon the retirement in August of Joe Hurt, Bob Warren was named Vice President, Onshore Division.

The internal structural changes allow the Onshore and Offshore divisions the availability to more proactively engage with and represent the interests of IADC members. In particular, division staff attended IADC chapter meetings across the US and globally and visited member companies in those areas to better understand regional concerns and interests.

Members of the division were active with a variety of industry workgroups to represent the interests of IADC members. These include attending the Arctic Council’s Task Force on Offshore Pollution Prevention meeting, serving on the executive committee of the National Service, Transmission, Exploration and Production Safety Networks (STEPS), attending NIOSH/NORA council meetings and participating on the planning committee of the OSHA Oil and Gas Safety and Health Conference. Staff also served on API subcommittees, OGP/WEC task groups and contributed to International Maritime Organization (IMO) activities.

In addition, OI staff worked closely with IADC’s committees and workgroups to develop key industry deliverables.

Demonstrating a commitment to developing solutions to industrywide critical issues, the group was responsible for the development and initiation of several high-profile projects and initiatives.

Knowledge, Skill and Ability (KSA) competencies

The IADC KSA competencies database was launched in June. The free database includes competencies for more than 70 rig-based positions, listing the recommended minimum capabilities that personnel must possess to safely and consistently fulfill their job duties.

Originally developed in 2001 with the creation of KSAs for 12 rig positions, IADC committed to expand the available competencies in 2012 at the request of regulators and the industry.

IADC Executive VP, PGRA, Taf Powell addresses attendees at IADC World Drilling 2014 in Vienna, Austria, on 19 June. One initiative among many this year for PGRA was writing to the European Commission to argue against a misinterpretation of the Offshore Safety Directive. This action could potentially save EU-based member companies more than $10 million from 2016-2018.
IADC Executive VP, PGRA, Taf Powell addresses attendees at IADC World Drilling 2014 in Vienna, Austria, on 19 June. One initiative among many this year for PGRA was writing to the European Commission to argue against a misinterpretation of the Offshore Safety Directive. This action could potentially save EU-based member companies more than $10 million from 2016-2018.

“The original KSAs, although an excellent tool for evaluating individual competence when they were created in 2001, needed to be updated. Advancements in technology and increasingly complex individual competence requirements were the drivers for launching this project,” Mr Denkowski commented.

“We envision the KSAs as having a variety of uses in our industry. They can be used to build or evaluate in-house competency assurance programs, assess personnel capabilities and qualifications by building assessment guides, build personnel development tools by identifying competency strengths and can assist in the development of career advancement pathways,” said Brooke Polk, IADC Competency and Learning Development Specialist.

The database allows users to generate, on demand, a unique set of competencies based on position, rig type and operational environment. This provides the industry with a tool to demonstrate the qualifications of their personnel. More than 70 subject matter experts from across the industry collaborated on the project.

Click here to access DC’s digital edition for computers and tablets.

Well Control Institute (WCI)

In 2014, the WCI’s structure and governance was finalized. The WCI was established in 2013 to bring together all oil and gas industry stakeholders to develop the comprehensive solutions necessary to significantly improve well control performance and reliability worldwide.

The WCI’s Executive Board, comprised of 15 representatives from drilling contractors, operators, equipment manufacturers and well servicing companies, is an independent body. The WCI’s mission is to encourage safe well practices and wellbore integrity – through collaborative consideration toward advancing competency, processes, technology and best practices.

WellCAP

WellCAP is the result of an extensive effort to rewrite and significantly change the existing IADC WellCAP standard and curricula. The program will offer a more robust standard and curricula for well control training. The four most significant changes to the standard include:

  • Designed to provide role-specific training;
  • Expanded course levels;
  • Centralized electronic testing and grading; and
  • Enhanced instructor qualifications.

Workforce Attraction and Development Initiative (WADI)

Initiated in 2013, WADI is a collaborative effort among IADC, community colleges and industry. The goal is to attract and expedite the building of a qualified pool of new employees by delivering career development pathways and career guidance for newhire personnel and existing rig-based personnel. In 2014, the program grew as more US-based and international colleges became involved in the initiative.

Supporting the industry’s need for a competent and credentialed workforce is a key element to the KSAs, WellCAP and WADI programs. To further support that goal, IADC also introduced Rigger Curriculum Accreditation, Competency Assurance Program Development Guidelines and HUET Accreditation programs in 2014.

The OI Division also contributes reports and programs to keep IADC members informed. These include:

Bob Warren (from left), IADC VP Onshore Division, and Mark Denkowski, IADC Executive VP Operational Integrity, welcome Paschoalin Consulting to IADC’s Houston office in May. IADC is collaborating with Roberto Paschoalin, Andre Paschoalin and Roberto Flossi Paschoalin as part of the association’s efforts to step up its presence in Brazil. On 6 August, the IADC Brazil Chapter, which normally meets in Macaé, held its first meeting in Rio de Janeiro. The meeting focused on managed pressure drilling methods and processes.
Bob Warren (from left), IADC VP Onshore Division, and Mark Denkowski, IADC Executive VP Operational Integrity, welcome Paschoalin Consulting to IADC’s Houston office in May. IADC is collaborating with Roberto Paschoalin, Andre Paschoalin and Roberto Flossi Paschoalin as part of the association’s efforts to step up its presence in Brazil. On 6 August, the IADC Brazil Chapter, which normally meets in Macaé, held its first meeting in Rio de Janeiro. The meeting focused on managed pressure drilling methods and processes.

Safety alerts

IADC’s Safety Alert program is universally recognized as one of the industry’s best tools for sharing lessons learned from incidents in oil and gas operations. Subscribers to the program are able to anonymously report and share information on incidents and near-misses for educational purposes.

Incident Statistics Report (ISP)

The yearly ISP report compiles data about lost-time incidents (LTIs) and recordables. For 2013, the drilling industry’s worldwide LTI rate remained unchanged from 2012 at 0.26. The recordable rate improved to 0.81, an 8% improvement over 2012. A total of 22 fatalities were reported in 2013.

Federal Regulatory Summary for Onshore Operations

Released semi-annually, this report details federal regulatory actions that could impact onshore drilling and is available free of charge via IADC’s website. The 30 June 2014 edition included updates related to the national fire codes, hydraulic fracturing on federal/Indian lands, combustible dust, process safety management and prevention of major chemical accidents, among other topics.

“As we look forward into 2015 and beyond, we see opportunities where the strengths and expertise of the Operational Integrity group can positively impact our industry. We are already working to further refine some of our existing offerings and pushing forward on the development of new projects and initiatives,” Mr Denkowski noted.

Policy, government and regulatory affairs

Under the leadership and guidance of Executive Vice President Taf Powell, the Policy, Government and Regulatory Affairs (PGRA) Division represented member interests to US domestic and global regulatory and legislative bodies, oil and gas producers and the media. Advocating that the upstream oil and gas industry is vital to the global economy for the foreseeable future and that drilling contractors are thereby major players, the division mobilized its resources to serve members on a worldwide scale.

The division comprises impressive subject matter experts in Houston and Washington, DC. Alan Spackman, Vice President of PGRA; Julia Swindle, Safety Management Systems Specialist; John Pertgen, Director, Offshore Technical and Regulatory Affairs; and Sean Brett, Senior Director, Offshore Division, are in Houston.

Bill Tanner, Vice President, PGRA (US domestic), and Melissa Mejias, Legislative Assistant (offshore and international), are based in Washington, DC.

Over the course of the year, the division published several authoritative reports, including:

  • The strategy and plan for the division’s worldwide impact, focusing on IADC leadership in the drilling space; stewardship of the industry’s core values; influence in government policymaking; and advocacy for more enabling and effective oversight by national regulators;
  • The Semi-Annual Report on International Standardization Activities Affecting the Offshore Oil and Gas Industry;
  • The Federal Regulatory Actions Impacting Offshore Drilling report; and
  • A report to the International Regulators Forum on progress in fundamental well control elements following the Macondo incident.

In the past year, the group worked with official bodies and organizations around the world to influence policies, standards and regulatory initiatives. Some examples are:

  • IADC led an industry coalition to moderate damaging tax reforms in the UK targeting drilling contractors. The campaign established IADC as the leading advocate in the UK for the drilling space and secured a 14% improvement in the new tax ceiling, potentially reducing IADC members’ contingent liability by $60 million over the three-year accounting period to 2017.
  • IADC reacted on vessel discharge regulation reform to the US Commerce, Science and Transportation Committee, urging the committee to mark up and report out S. 2094, the Vessel Incidental Discharge Act, which will establish nationally uniform and environmentally sound standards for ballast water and other vessel discharges.
  • In April, IADC responded to Australia’s Department of Industry, Tourism & Resources (DITR) Consultative Document on revision of the regulations addressing drilling permits. The strong submission by IADC was positively acknowledged by the DITR, and further dialogue with IADC has been requested.
  • In July, IADC responded to a request for information on the development of the US federal government’s 2017-2022 offshore oil and gas leasing program, urging sensible and responsible access to important US reserves of offshore oil and gas.
  • In 2014, IADC published Version 3.5 of the IADC HSE Case Guidelines for MODUs.
  • In September, IADC joined the offshore industry and the European Commission to discuss findings from a study on civil liability for offshore accidents in Europe. IADC subsequently submitted a summary of its position, including its strong opposition to any shift in environmental liability from producers toward drilling contractors.
  • IADC submitted a formal response to the UK government in September regarding the implementation of the Offshore Safety Directive. The response focused on international priorities, particularly seeking a level regulatory playing field across the 22 offshore Member States and the European Economic Area (EEA) countries. IADC also wrote directly to UK ministers appealing a critical point regarding the proposed UK Competent Authority. This was in addition to the response by the IADC North Sea Chapter on UK-specific aspects.
  • IADC wrote to the European Commission arguing against a misinterpretation by the UK regarding transposition of the Offshore Safety Directive. The European Commission has verbally agreed with IADC’s position, which will equally apply throughout the EU, potentially saving EU-based member companies $10 million-plus over the period 2016-2018.
  • IADC was recognized in September with an election to the Offshore Energy Center Hall of Fame as a Technology Pioneer. The honor was awarded in the category of Health, Safety and Environment for work on API Recommended Practice 75. Mr Spackman was individually recognized as a Technology Pioneer in the same category.
  • IADC arranged a workshop in Mexico in November with the International Regulators Forum and the International Association of Oil & Gas Producers (OGP) to establish and pursue shared priorities for offshore safety and environmental protection.

“The production of oil and gas is the major element in the sustainable energy economy. Only the drilling contractors invest in the rigs, people and equipment that make possible the exploration and production of oil and natural gas,” Mr Powell commented.

“US onshore drilling contractors have enabled a once-in-a-generation economic transformation in US oil and gas production that is the envy of the world,” he continued. “Offshore, the huge strides in drilling rig technology, safety and environmental stewardship have provided access to technically challenging, ultra-deepwater and environmentally delicate basins to sustain the world’s affordable energy supplies. In securing universal endorsement as the industry’s authoritative body in drilling, IADC will support its members to explore for and produce oil and gas, cleanly, responsibly and efficiently.”

Communications division

Under the leadership of Group Vice President/Publisher Mike Killalea, the Communications Division is responsible for the delivery of news, technical articles and practical tools for use on the rig, in the classroom and by the news media.

IADC Group VP/Publisher Mike Killalea moderates a panel session at IADC World Drilling 2014 in Vienna, Austria on 19 June.  By the end of this year, the IADC Communications Division will have delivered 30-plus issues of electronic newsletters, six issues of the print DRILLING CONTRACTOR magazine, the IADC Membership Directory and more than 60 original video interviews. IADC Communications is now also hosting virtual panel discussions (VPDs). Past topics have included API Standard 53, competency in the drilling industry and hardbanding selection. The next VPD is set to air on 5 November. Click here to view archived VPDs.
IADC Group VP/Publisher Mike Killalea moderates a panel session at IADC World Drilling 2014 in Vienna, Austria on 19 June. By the end of this year, the IADC Communications Division will have delivered 30-plus issues of electronic newsletters, six issues of the print DRILLING CONTRACTOR magazine, the IADC Membership Directory and more than 60 original video interviews. IADC Communications is now also hosting virtual panel discussions (VPDs). Past topics have included API Standard 53, competency in the drilling industry and hardbanding selection. The next VPD is set to air on 5 November.  Click here to view archived VPDs.

By the end of 2014, IADC Comm-unications will have delivered 24 issues of eNews from DrillingContractor
.org
, in addition to six print editions of IADC’s official magazine Drilling Contractor, the 2014 IADC Membership Directory and 12 issues of Drill Bits newsletter. The group also hosted four sponsored virtual panel discussions and produced more than 60 original video interviews on an array of industry topics. The IADC Bookstore is at the cutting edge of developing and offering new products to catalyze improved performance in safety and operations.

Drilling Contractor

DC, which celebrated its 70th anniversary in 2014, has expanded its readership to nearly 37,000 drilling and completion professionals for each of its six print editions. DC’s digital edition, which reaches some 4,000 readers, includes translations of selected articles in Brazilian Portuguese, Arabian Peninsula Arabic and Chinese.

DC is the industry leader in blending electronic and traditional print media through its “enhanced editorial” feature. DC’s unique enhanced editorial guides readers to additional relevant online information, including video, animations, references, white papers and more, using QR Codes and links.

IADC Bookstore

IADC Communications engaged in major revamps of long-standing products and is developing new books and products, underscoring IADC’s role as the authoritative body in the drilling space.

  • IADC Drilling Manual: Stand-alone chapters of the 12th edition of the definitive rig operations manual, the IADC Drilling Manual, became available for purchase in electronic form. More than 100 technical experts contributed to the first major rewrite of the manual in 22 years. As of late October 2014, these chapters had been made available: fluid hydraulics; drill string; wire rope; chains and sprockets; managed pressure, underbalanced and air/gas/mist/foam drilling; automation; drilling fluids processing; casing while drilling; bits; cementing; lubrication; drilling fluids; and pumps.

“The updated IADC Drilling Manual is a major deliverable of IADC and represents thousands of hours of work by a dedicated group of renowned industry experts. The new and updated content reflects the latest technologies developed over the last 22 years,” Mr Killalea noted.

More chapters will become available electronically through 2014 and into 2015, with print versions available in early 2015.

  • Under the auspices of the IADC Technical Publications Committee (TPC), led by Chairman Dr Leon Robinson, IADC continues to develop peer-reviewed technical books for the IADC Drilling Series. The IADC Drilling Series is envisioned as a comprehensive set of discrete works on critical topics for drilling. Books nearing publication include:

o “Well Cementing Operations” by Ronald Sweatman;

o “Driller’s Knowledge Book” by Dr Robinson and Juan Garcia;

o “Coiled Tubing Operations” by Les Skinner.

TPC authors are also at work on books covering non-aqueous drilling fluids, drill bits and more.

  • The landmark IADC Deepwater Well Control Guidelines underwent a major rewrite under the guidance of Chairman Louis Romo, BP. More than 70 drilling professionals contributed to the rewrite, which will be available for purchase in early 2015.

IADC Communications is responding to industry needs through new and updated IADC Bookstore products for the rig site. The new forms aim to enhance operational integrity by addressing both safety and process, two of IADC’s key critical issues. These include:

  • IADC Mud Pump Inspection Checklist;
  • IADC Mud Pump Report Form. The form was developed specifically for mud-pump monitoring and tracks total hours on the pump, as well as on individual cylinder components for each of three cylinders;
  • IADC Near Miss Report. Development of the form was supported by several major international operators and represents a huge step forward in wells HSE. The form is available in two versions, one for drilling and the other for well servicing/workover;
  • Revised IADC Daywork Contract – US Land. The contract provides a model for drilling operations conducted on a continuous per-day price, from start of well through final depth. The revised form reflects the first major update in a decade, which was carried out by the IADC Contracts Committee.

“It’s exciting to play a role in revitalizing and streamlining the IADC Bookstore,” Mr Killalea said. “ We plan to continue our focus on IADC-developed books and materials that will best educate drilling crews, drilling engineers and those new to the industry. Our goal is to provide every possible resource to help IADC drilling professionals perform at the highest possible levels of safety and efficiency.”

Click here to access DC’s digital edition for computers and tablets.

International development

Under the leadership of Vice President Mike DuBose, the International Development team continued to expand IADC’s global reach while assisting in shaping regulations worldwide.

With staff in place in Europe, Brazil, the Middle East, Asia Pacific and Australasia, the International Development Division strives to engage with government officials and regulators to develop an ongoing dialogue on issues critical to the drilling industry. Members of the division also attend and participate in IADC Chapter meetings and activities in their assigned areas.

Bill Tanner, IADC VP - PGRA, speaks with DC Editorial Assistant Lauren Wolfson at the 2014 IADC Drilling Onshore Conference in Houston on 15 May. Mr Tanner provided an update on IADC’s current legislative program.
Bill Tanner, IADC VP – PGRA, speaks with DC Editorial Assistant Lauren Wolfson at the 2014 IADC Drilling Onshore Conference in Houston on 15 May. Mr Tanner provided an update on IADC’s current legislative program.

In 2014, the division was active on a variety of issues and participated in a number of workgroups. These included:

  • On 1 April, IADC was represented at the European Union Offshore Authorities Group meeting in Brussels to discuss implementation of the EU Offshore Safety Directive. Industry representatives were invited to participate in the meeting to provide comment on the common reporting format of offshore safety incidents. Those in attendance highlighted their concerns about the criteria used in defining a reportable release of hydrocarbons.
  • In April, IADC visited the Maritime Training Centre’s offshore safety training facility in Amsterdam. The facility is housed in an old shipyard building near the center of Amsterdam and features separate pools for two helicopter underwater escape training modules and sea survival and lifeboat training.
  • On 6 August, the IADC Brazil Chapter held a meeting in Rio de Janeiro at Petrobras’ offices. The meeting focused on managed pressure drilling methods and processes and was the first chapter meeting held in Rio.
  • IADC held an European Operations Forum meeting in Brussels on 2 July. Representatives from the EU and Norwegian regulators participated, as did representatives from the European Commission and drilling contractors working in the EU and Norway.
  • Members of the IADC Southeast Asia Chapter elected new officers at an Extraordinary General Meeting on 1 April in Singapore. The purpose of the meeting was to act on the desire of both IADC and the member companies located in Southeast Asia to revitalize the dormant chapter and elect new office bearers to replace the current officials.
  • In September, Brenda Kelly and Ms Polk from IADC’s Accreditation and Credentialing Division joined Regional Representative Chit Hlaing and Mr DuBose for two workshops in India. Held in conjunction with the South Central Asia Chapter, the workshops were titled “Pathway to a Competent Workforce” and focused on the IADC KSA competencies.

“The collective expertise of the international team that IADC has assembled is enormously impactful. Each of our regional representatives has a deep understanding of their local region, allowing them to positively advocate on behalf of drilling contractors and the drilling industry in that geography,” Mr DuBose commented. “We look forward to another busy year advocating on behalf of IADC member interests across the globe.”

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