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November/December

Perspectives: Randy Smith: Industry’s well control training courses must focus on preparing its employees for work, not for tests

Randy Smith, founder of Smith Mason & Co, has always had a passion for teaching and coaching. While working in the Middle East and North Sea for Sedco in the 1970s and ’80s, Mr Smith coached baseball and basketball teams in his free time. Many of the players he coached were children of the managers and executives of oil companies and drilling contractors who were living in the area. So when Mr Smith started his first training school – Randy Smith Training Solutions – in 1988, he realized that the connections he had made through sports were actually helping him to develop and grow his company. “We did a lot of training throughout the world, building that company for 20 years doing well control, stuck pipe prevention, TRUE (Training to Reduce Unscheduled Events) training and leadership training.”

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IADC engages in multitude of initiatives to catalyze improved performance for the global drilling industry

2015 marked the 75th anniversary of IADC. Over this time, our members have experienced the inevitable ebbs and flows of the global oil and gas industry. But this year has been as testing as any we have known – low oil prices and high operational costs have led to drastic reduction in rig counts globally both onshore and offshore.

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Another rough year ahead for North American shale producers and drilling contractors, but 2017 could be a year of recovery

While 2016 is expected to be another rough year for North American shale drilling, rig counts and activity declines are projected to be much less severe than the reductions seen in 2015. “It’s pretty clear we’re close to an equilibrium in terms of rig count in the United States,” Timothy L. Dove, President and COO of Pioneer Natural Resources, said. “We continue to see small weekly reductions, but basically we’re reaching the bottom of where I think the rig count’s going to go.”

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Editorial: Don’t use market correction to justify lesser training as it could set back all momentum on safety

I have been an active member of IADC for more than 30 years and a member of this industry for more than 40. This year’s market correction has changed the landscape for drilling contractors, and while times have been tough for all of us, I am proud of what our association has accomplished this year. It is in the toughest of times that we prove our strength, and IADC has a 75-year history to back up its formidable strength.

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News Cuttings

Written for experienced drillers, the Drillers Knowledge Book provides never-before-published solutions to common drilling problems and methods to continually improve efficiency during drilling. The book covers all aspects of drilling, including well design and construction, hydraulic optimization, rock mechanics, drilling fluid processing and more. It focuses on field-proven techniques and procedures necessary for a drilling rig to drill at its maximum potential, while eliminating trouble time and costs that delay drilling and increase risks.

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People, Companies & Products

National Oilwell Varco (NOV)announced that Jose A. Bayardo has been named Senior VP and CFO of NOV. Mr Bayardo succeeds Scott K. Duff, Interim CFO. Prior to joining NOV, Mr Bayardo has worked at Continental Resources, Complete Production Services and JP Morgan in various roles. He earned a Master of Business Administration from the Kellogg Graduate School of Management at Northwestern University, a Master of Engineering Management from the McCormick School of Engineering at Northwestern University and a Bachelor of Science in Chemical Engineering from the University of Texas at Austin.

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Pressures mount as industry goes deep into survival mode

The upstream oil and gas industry has gone into survival mode, and analysts appear to agree that things are going to get worse before they get better. With low and volatile oil prices leading to more and more postponed drilling projects and lower and lower rig counts, operators, drilling contractors and service companies alike are cutting costs wherever possible. However, it’s the drilling contractors and service companies that have bore the brunt of these reductions, and analysts are urging the industry to increase collaboration to reduce costs in a balanced manner.

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Offshore drilling industry must cooperate to ‘recalibrate’ market

Cutthroat competition for offshore rig contracts became an unfortunate reality for drilling contractors worldwide this year. Without a significant decrease in the global offshore rig supply, these woes will likely persist into 2016. According to the US Energy Information Administration (EIA), the active offshore rig count declined by almost 20% between August 2014 and August 2015, no doubt the result of big declines in crude oil prices and, subsequently, operator CAPEX.

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Geopolitical concerns cloud short-term global oil forecasts

Geopolitical developments, including China’s economic slowdown, the Iran nuclear deal and the potential lifting of the US ban on crude exports, will likely continue to be factors that prevent the oil price from recovering significantly in 2016. The effect these developments will have on the global oil supply and demand balance is unclear, which only adds more uncertainty to an already unpredictable market. “The level of volatility has increased substantially,” said Sam Ori, Executive Director of the Energy Policy Institute at the University of Chicago (EPIC). “That’s being driven by real uncertainty in the fundamentals of the oil market.”

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