Home / 2018 (page 2)

2018

Risk aversion shouldn’t be used as excuse not to innovate

By Linda Hsieh, Managing Editor The drilling industry stands at the doorstep to a vast digital transformation. Yet, in many ways, it remains hesitant to fully cross the threshold. On the other side is Industry 4.0, characterized by things like smart machines, artificial intelligence, data-enabled efficiency and decentralized decision making. To take that great leap, it’s become apparent that leadership commitment to change will be key. So it was exciting when the head of an onshore drilling contractor stood up at a recent IADC conference and delivered a definitive call to action: Let go of old mindsets; don’t be a “smart follower” but an “early adopter.” Not only that, but he also laid out a path forward to Drilling 4.0 ...

Read More »

NOV rig census shows global rig market entering expansion cycle

Onshore, tightness of top-tier rigs will drive new rig orders, upgrades; offshore drilling growing modestly, but oversupply to sustain pressure on fleet utilization By Carlos Huerta, National Oilwell Varco As rig demand grows across land markets and offshore drilling recovers from its cyclical bottom, the industry will look to reactivate, upgrade and add rigs to suit market requirements. Although all rig market segments saw improvements in drilling demand, the biggest adjustment took place on the supply side. In some regions, as many as 30% of rigs were removed from the available fleet for being inactive for more than three years. US land rig demand in 2018 grew 11% to 1,209 rigs, compared with 1,089 units a year earlier. Canadian rig activity ...

Read More »

DC fly-in, WellSharp Well Servicing, student chapters, BOP database, new Drilling Matters modules among wealth of IADC initiatives in 2018

By Amy Rose, IADC Director of External Relations Government and Industry Affairs IADC’s Government and Industry Affairs Division is responsible for advocacy activities on behalf of the drilling industry. The team is tasked with proactively engaging with both US and global regulatory and legislative bodies, policymakers, oil and gas producers and the media to influence policies, provide input on standards making and pursue better regulations. This year, IADC’s advocacy team was consolidated to comprise both onshore and offshore expertise, which will enable a cohesive and consistent advocacy effort. IADC continues to maintain a strong presence in Washington, DC, and in June hosted another “fly-in” for IADC members to meet with members of Congress and regulatory agencies. The fly-in is a unique ...

Read More »

Offshore, oversupply means 2019 optimism still bound by caution

Global rig supply continues to cast shadow on recovery prospects despite positive signs in steady oil prices, increased rig demand in spots By Rick Von Flatern, Contributor Petroleum sector analysts, pointing to a contradictory mix of market forces, paint a picture of a global offshore drilling industry that is likely to experience slow but steady growth in 2019. In its quarterly Drilling and Production Outlook report issued at the end of September, Spears and Associates predicted that international oil prices will remain strong in response to continued global oil demand growth, low global oil inventories and increased geopolitical uncertainty. The report also concluded that, although US oil prices will rise relative to international prices, “US operators are expected to maintain a ...

Read More »

Recovery holds steady across North America

Pipeline constraints likely to hold back growth in Permian drilling, while Bakken resurgence takes many by surprise, forecast to continue By Rick Von Flatern, Contributor Predicting how the world of North American onshore drilling will look in 2019, most experts agree, requires only a look back to 2018. All the primary signals that industry analysts interpret to assess probable future drilling activity – rig count, dayrates, crude prices – show no indication of significant movement from current levels. “The average rig count in 2018, we predict, will be 1,011 in the US and 208 in Canada,” said John Spears, President of Spears and Associates. “In 2019, we predict about 1,040 for the US and 211 for Canada, or about 3% ...

Read More »

Simplicity leads subsea technology innovations

Shape-memory polymer technology, electrohydraulic downhole flow control and monitoring, dissolvable tools, and large-bore subsea safety system among innovations making waves in subsea completions By Karen Boman, Associate Editor If marginal offshore fields are to become economic, the next wave of subsea completion solutions must continue to focus on lowering costs and boosting efficiencies. As oil prices recover and operators are successful in their efforts to reduce offshore field development costs, the amount of subsea equipment orders is expected to rise in 2019. In fact, for the foreseeable future, spending on subsea equipment is expected to increase, according to an analysis of industry trends from Rystad Energy. Demand for subsea equipment will come from major field development projects, such as Shell’s Vito ...

Read More »

The case for non-OEM repairs: a missed cost reduction opportunity?

Non-OEM makes case for reexamining engrained beliefs about equipment repairs, urges industry to gain knowledge of alternatives in supply chain By Craig Fraser and Paul Naysmith, RigQuip Non-original equipment manufacturer (non-OEM) repair of drilling equipment is an often-controversial subject, with the drilling industry seemingly split down the middle. For various reasons, some do, and some don’t. This article will discuss and explore the differences between OEM and non-OEM repairs and present one company’s view, along with two case studies where an operator and drilling contractor chose to go non-OEM. The latest API repair standards, API Q2 and API 16AR, will also be discussed and presented. Introduction One cost reduction opportunity that is sometimes overlooked in the oil industry supply chain is ...

Read More »

Walking MPD-Ready rigs developed with integrated hardware, software to overcome operational inefficiencies

All managed pressure drilling equipment skids with rig, eliminating nonproductive time when moving between wells for multiwell pad drilling By Juan Pinzon, Nabors Drilling Solutions While many industries are undergoing rapid digital transformations, the oil and gas industry has been slower to adopt technological innovations on the software front. Over the years, the adoption of managed pressure drilling (MPD) has been hindered by the perception and evolution of MPD gradually changing from a single event management solution to a general efficiency approach. Conclusions about justifications for adopting this technology have previously been made based on one-well MPD operations. An MPD-Ready rig is a transformational technology that has been used to drill safer and more economical wells, while achieving operational and ...

Read More »

Wirelines

Revisions to BSEE Offshore Safety Rule Enhance Offshore Oil and Gas Safety, Operations On 28 September, the US Bureau of Safety and Environmental Enforcement (BSEE) announced revisions to the Oil and Gas and Sulphur Operations on the Outer Continental Shelf – Oil and Gas Production Safety Systems Rule. The updated regulations revise or remove certain regulatory provisions that create unnecessary burdens on stakeholders and clarify other provisions, while ensuring safety and environmental protection. In response to the announcement, IADC President Jason McFarland issued the following statement: “IADC is pleased to see the results of the exacting approach taken by BSEE to enhance its production safety regulations. Far from making industry operations less safe, as detractors have alleged, the judicious assessment ...

Read More »

Drilling & Completion News

Transocean Norge Wins Six-Well Contract With Equinor Equinor has awarded Transocean a contract for drilling six wells on the Norwegian Continental Shelf (NCS) by use of the Transocean Norge semi. Drilling start-up is scheduled for summer 2019. The rig has also been awarded a contract option for drilling four additional wells and is intended for subsequent continuing options. In a previously signed agreement with Equinor, the Transocean Spitsbergen semi was the company’s first rig to be included as per the framework agreement terms. The Transocean Norge will be the second. The contract backlog is approximately $89 million, excluding a bonus opportunity and other services. In separate news, Transocean has also entered an agreement to acquire Ocean Rig in a transaction ...

Read More »