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2019

Investments needed to meet global oil/gas demand hurt by disconnect between public perception, reality

Impact can be seen in weak stock prices for oil companies, shift away from long-cycle deepwater projects By Linda Hsieh, Editor & Publisher For some time now, it’s been difficult to discuss the long-term outlook for the oil and gas drilling industry without also discussing things like renewables and electric vehicles. But now, it’s become increasingly difficult to examine even shorter-term outlook without also considering their impact. Clearly, public perception on issues like the energy transition and climate change is swaying where investment dollars go. “Broadly speaking, there’s a very big shift – a recommitment of oil majors’ balance sheets – from the big offshore projects to the short-cycle North American shale plays,” said Paul Bogenrieder, Ernst & Young Global ...

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Optimism rising for jackup outlook as utilization, dayrates both improve

Non-harsh environment floater market is relatively weaker, but positive signs can be found in new contracts signed in 2019 By Linda Hsieh, Editor & Publisher You can’t quite say the outlook for the offshore drilling market is rosy just yet, but some of the gloom is definitely letting up, according to David Carter Shinn, Partner and Head of Bassoe Analytics at Bassoe Offshore. Particularly in the jackup segment, 2020 should be a step above recent years, he said. “We’re much more optimistic than we were a year ago. With respect to jackups, we’re seeing strong growth in the number of rigs on contract and demand.” Bassoe Analytics, an open-source collaborative rig database, shows that there were around 340 working jackups ...

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150 ksi nickel alloy materials among new innovations for sour service

Other advances include adoption of compressive stress relaxation evaluation method and capability to use 3D printing for corrosion-resistant nickel alloys By Linda Hsieh, Editor & Publisher To reduce well completion costs in environments with H2S, Baker Hughes is working to develop innovations that span materials, manufacturing, evaluation and testing. DC recently spoke with Darren Bane, Product Line Director, about recent and upcoming technical advances for sour service. High-yield sour-service nickel alloy materials As operators continue to drill and complete wells in sour-gas environments with increasingly higher pressures and higher temperatures, the demand is also increasing for materials with higher minimum yield strengths. Over the past few decades, the highest available yield for nickel alloy materials had risen from 120 ksi ...

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Through IADC, members come together to make our industry better and stronger

By Kevin Neveu, 2019 IADC Chairman At the start of this year, I noted that IADC has a long history of bringing the drilling industry together to identify common problems and solve them in ways that enable our long-term success. As we wrap up 2019, I’m honored to have served as Chairman of IADC and particularly proud of our accomplishments that further solidify the association’s legacy. It is an accepted fact that our industry is volatile, but I have always believed that if you work hard and deliver results, you can have a successful career in this industry. This is a critical message that must be conveyed to those who are in the infancy of their careers, looking at our ...

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Important industry cultural shift to focus on underlying causes of incidents, not on individual blame

By Joshua Baethge, Contributor Not many oil and gas professionals can say they helped design the International Space Station (ISS), but Chris Parker can. In the mid-’90s, while working toward a Master’s degree in experimental psychology and human factors at the University of Dayton, he interned at the Johnson Space Center in Houston. One project he worked on was analyzing where to place handrails on the ISS. Mr Parker, who joined BP’s Global Wells Organization in 2018 as Human Performance Lead Adviser, helped the team at NASA to conduct simulations that took into account what the astronauts would need from the design in order to move equipment through different locations. “It was like a playground. It was incredible,” he recalled. ...

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Vessel selection, lessons learned in using a drillship for temporary abandonment of 15 subsea wells

Drillship edges out light well intervention vessel after operator analysis of multiple technical, commercial factors By William Liew Sin Yoong, Khalil Mohamed M’bareck, Shahira Emie Lyana Bt Mustaffa and Mohd Hairi Abdul Razak, PETRONAS; Frederic Jacquemin, William Zomerdijk, PACIFIC DRILLING As the final stage in the oil and gas field life cycle, abandonment and decommissioning (A&D) activities are inevitable and have been increasing. For one deepwater subsea field offshore Mauritania in West Africa, the operator decided to cease production due to depleted reservoirs and the low oil price environment. This article discusses how the operator selected the drillship to carry out the A&D project, including considerations of the advantages and disadvantages in using a drillship for such operations, as well ...

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High-density survey data allows for capture of live inclination, azimuth, delivers clearer downhole picture

By enabling rapid assessment of wellbore trajectory, directional drillers can construct smoother well path, optimize sliding time By Chris Hartley, Gyrodata The evolution of drilling technology continues to play an important role in improving drilling efficiencies and well placement. Directional drilling providers use specialized sensors that can operate in harsh downhole environments, where temperatures reach 300°F or higher. These sensors are used to compute the orientation relative to vertical and north directions. The orientation is then used to calculate the wellbore position from the surface location to a known point along a well path, which is defined by a series of survey stations. Operators need accurate and precise measurements from drilling surveys so they can drill into the target reservoir ...

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On environmental stewardship, industry may need realignment

By Linda Hsieh, Editor & Publisher The world’s energy system is heading for big changes, and the drilling industry must have a stronger voice in the public discourse around climate change and better position itself as part of the solution. This was the main takeaway from Shell’s keynote address at the IADC Drilling HSE&T Europe Conference in September. And it’s a message that echoes other speeches and discussions that I’ve heard throughout this year. Drilling contractors and other oilfield service companies are increasingly being measured – by both their customers and the investor community – not just on financial and operational performance but also on environmental, social and corporate governance (ESG) criteria. The European Investment Bank, for example, is apparently ...

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Wirelines

US House passes legislation to impede offshore drilling On 11 September, the US House passed H.R. 1941, the Coastal and Marine Economies Protection Act, legislation that bars offshore drilling in federal waters off the Atlantic and Pacific coasts. It also passed H.R. 205, the Protecting and Securing Florida’s Coastline Act, to permanently extend the GOMESA moratorium on oil and gas activities in the Eastern Gulf of Mexico. In response, IADC issued a statement expressing industry’s strong concerns and noting that rising energy needs in the US should be considered. US house votes to bar development in ANWR On 12 September, the US House voted, 225 to 193, to advance H.R. 1146, the Arctic Cultural and Coastal Plain Protection Act, to ...

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Drilling & Completion News

Transocean launches hybrid floating drilling unit Transocean announced that it has deployed the world’s first hybrid energy storage system aboard a floating drilling unit. The system is now operational on the Transocean Spitsbergen, engaged in drilling operations on the Snorre field in Norway. The hybrid power technology, developed in partnership with Aspin Kemp and Associates, reduces fuel consumption and increases a dynamically positioned rig’s stationkeeping reliability by capturing energy generated during normal rig operations that would otherwise be wasted. The energy is then stored in batteries and used to power the rig’s thrusters. This enhancement targets a 14% reduction in fuel use during normal operations, leading to a significant reduction in NOx and CO2 emissions. Transocean’s investment is funded in ...

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