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DRILLBITS – January 2018

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Advocacy

IADC Comment on 2019-2024 OCS Oil and Gas Leasing Proposed Program

On 4 January, the U.S. Department of Interior issued a draft 2019-2024 Outer Continental Shelf Oil and Gas Leasing Program, which proposed to open 25 out of 26 leasing areas, including waters off both the Atlantic and Pacific, along with areas in the Arctic and expanded areas in the Gulf of Mexico.

Six days later, Interior Secretary Zinke announced that the proposed plan would exclude waters offshore of Florida. In response, IADC President Jason McFarland issued the following statement on 10 January:

“Just 6 days ago, this Administration released its draft proposed plan, which included 25 out of the 26 potential leasing areas on the U.S. Outer Continental Shelf (OCS) including the three leasing areas that include waters offshore of Florida. In his statement at that time, Secretary Zinke noted that, ‘Responsibly developing our energy resources on the Outer Continental Shelf in a safe and well-regulated way is important to our economy and energy security, and it provides billions of dollars to fund the conservation of our coastlines, public lands and parks.’”

“IADC hailed last week’s action because we believe that it’s important to assess all of the nation’s OCS resources, which belong to the American people, to determine their potential for energy development. Secretary Zinke’s remark to remove Florida from consideration for any new oil and gas platforms is undisciplined and arbitrary and stands in stark opposition to the deliberative and inclusive process envisioned by the Outer Continental Shelf Lands Act, not to mention it represents an apparent about face by the Administration, particularly at this very early stage in the process. Regardless of ones viewpoint on whether or not any particular offshore area should ultimately be offered in a lease sale, the Secretary’s latest action should be viewed as contrary to the process. IADC and our industry colleagues look forward to submitting our own comments and views on the best way to responsibly develop the nation’s considerable resources.”


BLM Rescinds 2015 Hydraulic Fracturing on Federal and Indians Lands Rule

On 26 March, 2015 the U.S. Bureau of Land Management (BLM) published in the Federal Register a final rule, “Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands”. Effective 29 December 2017, the BLM rescinded the 2015 rule because it is believed to impose administrative burdens and compliance costs that are not justified.

For more information, please visit the BLM website.


DRILLERSPAC – Political Action Committee (PAC) of IADC

The DRILLERSPAC is now up and running.  It was sanctioned by IADC’s Board of Directors to further IADC’s goal of advocacy engagement with federally elected Members of Congress.  DRILLERSPAC is not affiliated with any political party.  It is organized and conducted on a voluntary, non-partisan basis.  DRILLERSPAC is overseen by the PAC Board of Trustees, which is comprised of 10 members – three from offshore companies, three from onshore companies, two from drilling services companies and two IADC employees.

To date, the DRILLERSPAC has raised $14,250 from 7 individuals.  Twelve IADC member companies have signed the prior approval form to allow employee participation.  Two $2,000 disbursements from DRILLERSPAC have been made to Rep. Garrett Graves (LA) and Sen. Heidi Heitkamp (ND) leaving $10,250 left in the DRILLERSPAC bank account.


Washington D.C. Updates

House:

The U.S. House took 50 roll call votes in January on a range of legislative issues.  Many House Members are focused on continuing to promote the passage of the tax reform legislation that was signed into law in December.

Senate:

The U.S. Senate took 27 votes in January, approving 10 more nominations, including Chairman of Federal Reserve System and Secretary for Health and Human Services.  The Federal Government was officially shut down due to lack of an agreement over spending and DACA (Deferred Arrival for Childhood Arrivals) legislation, but was quickly re-opened when the Senate voted to approve the House measure.

Administration:

On January 4, 2018, the Interior Department released a Draft Proposed Program (DPP) for a new Outer Continental Shelf Oil and Gas Program to replace the existing 2017-2019 program.  Comments on the DPP are due March 9, 2018.  In addition, the Bureau of Ocean Energy Management (BOEM) is conducting public meetings in the capitol of each coastal state to provide and solicit information on the DPP.

Secretary Zinke’s newsworthy comments to Governor Scott regarding no new drilling off Florida’s waters has sparked other Governors to make the same request to the Secretary.

In addition, the State of the Union was last night and the President continued to tout U.S. energy dominance: “We have ended the war on American Energy — and we have ended the war on clean coal.  We are now an exporter of energy to the world.”


INDUSTRY NEWS

Court Rulings Strike Down BSEE Charges Against Contractors

Following the conclusion of two recent court cases – USA v. Black Elk Energy Offshore, and Island Operating Co v. Jewell – the US Bureau of Safety and Environmental Enforcement (BSEE) will no longer be able to hold contractors liable for violations of the Outer Continental Shelf Lands Act (OSCLA). “It’s clear that, from both a criminal and civil context, the issue of contractor liability has been struck down,” said Jonathan Waldron, Partner at Blank Rome LLP. “The courts in both of these cases made it very clear that BSEE was trying to make a policy change without going to rulemaking after 50 years of precedent. “

In 2012, BSEE released an Interim Policy Document that announced that the agency would begin issuing Incidents of Non-Compliance (INC) and levying fines against contractors for violations of the OCSLA. Previously, INCs were only issued against operators, not contractors. “It was the operator’s responsibility to make sure that the contractor was complying with the law,” Mr Waldron said. The change in policy was likely a reaction to Macondo, he added. “The government never went after contractors before. After Macondo, they got very aggressive.”

Following a 2012 welding incident on a platform in the West Delta 32 lease area in the Gulf of Mexico, which resulted in an explosion that killed three people, the platform’s operator, Black Elk Energy, and two contractors were charged with criminal violations of the OSCLA and the Clean Water Act. The contractors asked the district court to dismiss the charges on the grounds that OSCLA regulations have always applied to operators, not contractors. The court agreed with the contractors and dismissed the case. The government appealed the case to the US Fifth Circuit Court of Appeals. In September, the appellate court upheld the district court’s ruling.

In both the district and appellate courts, BSEE argued that general language in OCSLA regulations gives the agency direct jurisdiction over contractors, Mr Waldron said. Throughout OSCLA, expressions like “contractors shall..” are used, and BSEE used this wording to justify criminal penalties against contractors. However, he added, regulations also limit criminal liability to operators/lessees. “The courts have basically said, by their own regulations, BSEE has never made any requirements directly applicable to contractors,” he said.

Island Operating Co. v. Jewell concerned civil penalties against contractors, rather than criminal penalties. On 23 December, the US District Court for the Western District of Louisiana also concluded that BSEE’s own regulations do not give it jurisdiction over contractors.

While both cases can still be appealed to higher courts, the Trump Administration may opt not to pursue these cases any further. “My guess is that the administration does not want to follow the route the Obama Administration did,” he said.


BLS Releases Census of Fatal Occupational Injuries Summary, 2016

The U.S. Bureau of Labor Statistics recently issued their Census of Fatal Occupational Injuries Summary, 2016. This is the second (and final) in a series of two from the BLS covering occupational safety and health statistics for the 2016 calendar year.

To view the PDF version, please visit the BLS website.

According to the BLS, in the category of ‘Mining, Quarrying, and Oil and Gas Extraction’, fatalities were up 7% from 2015, the third consecutive annual increase in workplace fatalities. The census uses diverse state, federal and independent data sources to identify, verify and describe fatal work injuries to ensure that counts are as complete and accurate as possible. The BLS claims all statements of comparison made within were found to be statistically significant at the 95 percent confidence level.


UK Oil and Gas Survey Results Available

The 27th Oil and Gas Survey conducted by the Aberdeen and Grampian Chamber of Commerce in partnership with the Fraser Allander Institute and KPMG was recently made available. Among other findings, the report found that 49% of contractors surveyed are more optimistic about their activities in the current year, up from 38% since the spring survey. A majority of respondents, 60%, believe that the bottom has been reached on the current cycle, up from 52% in the spring survey and from the 29% who believed the same a year ago.

The full report can be accessed via the Aberdeen & Grampian Chamber of Commerce website.


RAPID-S53 JIP Launches Latest Phase

The IOGP/IADC BOP Reliability JIP, known as RAPID-S53, has launched its latest phase featuring reduced fees for participating companies.  The JIP, which originated with a data gathering effort by seven offshore contractors in 2015 has been restructured to continue on an ongoing basis with fees adjusted annually.

For 2018, fees for operator participants will be $35,000.  For drilling contractors, fees for companies with subsea BOPs will be $20,000, with fees for  surface-only BOP companies at $15,000 and onshore contractors at $10,000.  Equipment manufacturers will pay $15,000.  Those figures are significantly less than what most participants paid for Phase II of the JIP.

It is anticipated that most of the 30 companies that participated in Phase II will continue their involvement with the JIP.  One new offshore contractor recently joined the new effort – Odebrecht Oil & Gas S.A. of Brazil.

The JIP has been sharing selected learnings from the data with industry groups, including the API Standard 53 Subcommittee.  At the recent API Winter Standardization conference, JIP members provided information learned regarding regulators, shuttle valves, and SPM valves.  A data quality workshop for all RAPID-S53 participants was also recently hosted by Pacific Drilling, with more than 50 people in attendance.

The JIP worked with both BSEE and the Bureau of Transportation Statistics to produce their 2016 report on equipment failure reporting required under the Well Control Rule.  The JIP is currently working with BTS on the 2017 report.

RAPID-S53 stands for Reliability and Performance Information Database, designed to collect data on BOP performance as specified in API Standard 53.

For more information, please contact Steve Kropla at steve.kropla@iadc.org.


Natural Gas, Oil Industry Launch Environmental Partnership to Accelerate Reductions in Methane, VOCs

On 5 December America’s natural gas and oil industry announced a landmark partnership to accelerate improvements to environmental performance in operations across the country. Focused initially on reducing methane and volatile organic compound (VOC) emissions, the Environmental Partnership includes 26 natural gas and oil producers, who produce a significant portion of American energy resources. Participating companies will begin implementing the voluntary program starting January 1, 2018.

Collectively, at the time of launch, the participating companies represent operations in every major U.S. natural gas and oil basin. The Environmental Partnership is a historic agreement bringing together American natural gas and oil companies of all sizes to take action, learn and collaborate in an effort to further improve our environmental performance.

The Environmental Partnership’s first initiative is focused on furthering action to reduce air emissions, including methane and volatile organic compounds, associated with natural gas and oil production. To accomplish this, the Environmental Partnership has developed three separate Environmental Performance Programs for participating companies to implement and phase into their operations starting January 1, 2018.

The three Environmental Performance Programs include:

  1. Leak Program for Natural Gas and Oil Production Sources: Participants will implement monitoring and timely repair of fugitive emissions at selected sites utilizing detection methods and technologies such as Method 21 or Optical Gas Imaging cameras.
  1. Program to Replace, Remove or Retrofit High-Bleed Pneumatic Controllers: Participants will replace, remove or retrofit high-bleed pneumatic controllers with low-or zero-emitting devices.
  1. Program for Manual Liquids Unloading for Natural Gas Production Sources: Participants will minimize emissions associated with the removal of liquids that, as a well ages, can build up and restrict natural gas flow.

In addition to its programs, the Environmental Partnership will provide a platform for industry to collaborate with stakeholders and learn from one another.

To view more information about the program and companies’ commitments, visit www.TheEnvironmentalPartnership.org.


The Risk of Nation-State Hackers in Oil and Gas

The expected cost of data breaches will reach $2.1 trillion globally by 2019, according to Forbes. With an increasing digital footprint, companies are fighting to protect themselves from a modern crimewave.

For example, Advanced Persistent Threat 34, a group with suspected Iranian roots, poses a significant risk to industry in the Middle East and potentially elsewhere. APT 34 has been in operation since at least 2014, according to Wired, and has targeted many critical infrastructure companies in the Middle East.

“It is likely that major industries in the United States could be affected by this Iranian group,” stated Juno Yeon, a Cybersecurity Analyst at the Oil and Natural Gas Information Sharing and Analysis Center (ONG-ISAC). “We are keeping a close eye on any indicators of interference.”

The group was first observed exploiting a Microsoft Office vulnerability (CVE-2017-11882) that Microsoft patched on November 14, 2017. According to the security company FireEye, the vulnerability was exploited when APT 34 attacked an unnamed government organization in the Middle East.

APT 34 has mainly targeted financial, energy, and telecom companies in the Middle East, but it would not be surprising if these attacks extended to companies in the United States.

FireEye reported that an APT 34 tactic is to compromise a targeted company by reviving an old email thread of an employee. The new email sent, which is tied to the previous thread, will include a malicious attachment that the recipient is more likely to click on because of its inclusion in a known email thread.

This type of phishing activity is increasing, and could affect industry on a large scale. According to the same FireEye report, APT 34 uses compromised emails to spear phish other companies to gain unauthorized access to sensitive information in an ongoing effort that perpetuates within critical infrastructure sectors.

ONG-ISAC Analysts have not received member submissions that would denote an obvious attack by APT 34, but the group is on their radar.

“Given that many U.S. and North American based oil and gas operations have a presence in the Middle East, it is quite possible that the target profile could expand,” said Yeon. “We saw something similar with the Palmetto Fusion attacks,” he explained.

In June 2017, public reports stated that a joint alert from the FBI and Department of Homeland Security highlighted an APT actor targeting the energy, nuclear, and critical manufacturing sectors since at least May 2017. Information suggested that this campaign was delivering watering hole attacks and spear phishing emails to compromise networks, similar to the efforts of a group like APT 34.

By working together, ONG-ISAC members confirmed and shared initial indicators to help uncover vital information about the threat actor’s activity. Members determined there had been activity from as far back as 2015 and shared observed scan attempts and watering hole sites that were not previously reported.

In situations like the Palmetto Fusion attacks, ONG-ISAC takes information sharing one step fur­ther with their Threat Intelligence Platform (TIP), a tool which supports in-depth analysis of threat intelligence to provide members with strategies to negate the ongoing and future efforts of threat actors.

“ONG-ISAC members are actively utilizing the TIP. Regular training sessions are held for our members to learn effective strategies to enrich their use of the TIP” said Matt Windt, Membership Development Executive at the ONG-ISAC. Member engagement is what drives the enriched intelligence coming through the TIP, allowing companies to leverage the knowledge of an entire community of experts to strengthen their defenses.

For more information regarding ONG-ISAC membership contact Matt Windt at mwindt@ongisac.org and visit www.ongisac.org.

ONG-ISAC was founded in 2014 and serves as a central point of coordination and communication for the Oil and Natural Gas Industry. Now 50 members strong, ONG-ISAC continues to aid in the protection of exploration and production, transportation, refining, and delivery systems through analysis and sharing of trusted and timely cyber threat information.

Sources:

https://www.washingtonpost.com/world/national-security/us-officials-say-russian-government-hackers-have-penetrated-energy-and-nuclear-company-business-networks/2017/07/08/bbfde9a2-638b-11e7-8adc-fea80e32bf47_story.html?utm_term=.bf7f9040545d

https://www.fireeye.com/blog/threat-research/2017/12/targeted-attack-in-middle-east-by-apt34.html

https://www.forbes.com/sites/stevemorgan/2016/01/17/cyber-crime-costs-projected-to-reach-2-trillion-by-2019/#528f9d8f3a91

https://www.wired.com/story/apt-34-iranian-hackers-critical-infrastructure-companies/


Norway Awards Record Number of Licenses on the Norwegian Continental Shelf

The Norwegian Ministry of Petroleum and Energy awarded 75 new production licenses in the Award in Pre-Defined Areas 2017 (APA 2017) licensing round. This number represents the highest number ever awarded in a single licensing round. Forty-five of the licenses are distributed over the North Sea, 22 in the Norwegian Sea and 8 in the Barents Sea.

More information can be found here.


US Supreme Court Rules in Favor of District Court Jurisdiction on Waters of the U.S.

On 22 January, the U.S. Supreme Court issued its ruling addressing the jurisdictional matter involving Waters of the U.S. (WOTUS). In a unanimous ruling addressing National Association of Manufacturers v. Dept. of Defense, et al, the court decided in favor of district court jurisdiction when addressing matters of the Clean Water Act. The court’s decision conceded the potential for more conformity and efficiency had jurisdiction been retained at the Circuit court level. However, the court ruled that such consideration was not justifiable grounds to circumvent the plain language of the law.

More information regarding the ruling can be found on the U.S. Supreme Court website.


ACCREDITATION

IADC Competence Assurance Program to be Updated

Competence Assurance is a crucial part of the employee development process.  Having competent employees helps to assure the safety of employees, assets, and the environment.  These are some of the reasons the industry worked collaboratively to develop IADC’s Competence Assurance Accreditation and Guidelines for Building a Competence Program.  IADC and industry understand and embrace the need for continual improvement in an ever-changing industry and are working on making the Competence Accreditation better.

The Accreditation Division is currently working with industry and IADC Competence SME auditors to grow the program and include new industry best practices.  Working together to share strengths from the various programs will help raise the bar on competence across the industry.  The new accreditation handbook with enhanced requirements is anticipated to be released in Q1 2018.

For more information about the Competence Assurance program, please visit the IADC Accreditation website. For questions, please contact Brooke Polk at Brooke.Polk@iadc.org.


IADC to Introduce WellSharp Well Servicing Course

This spring, IADC will roll out the new WellSharp Well Servicing Accreditation which will replace the old WellCAP well servicing courses. The new accreditation will offer four standalone course options, which include coiled tubing; snubbing; wireline and workover. It also introduces two new courses, which include Subsea Supplement and Oil and Gas Operator Representative Workover & Intervention Well Control.

For more information about converting to the new WellSharp Well Servicing Accreditation, please contact IADC’s Accreditation Department.



IADC COMMITTEES

IADC Supply Chain Committee Invites Supply Chain Professionals to Join

The IADC Supply Chain Committee is now open for all supply chain professionals who are members of IADC. The Committee will host its next meeting on 7 February at 1 p.m. at IADC Headquarters in Houston.

For more information about the committee and to register to attend the next meeting, please visit the IADC website.


Call for Abstracts for IADC Spark Tank on 4 April: Meet the Sharks!

The IADC Advanced Rig Technology Committee has issued a call for abstracts for the ART Spark Tank, scheduled for 0900-1130 on Wednesday, 4 April, 2018. The deadline for abstracts is Friday, 3 March.

The IADC ART Spark Tank is a strong opportunity to provide technology entrepreneurs a new opportunity to pitch their products and ideas to a panel of drilling contractors and operators (“Sharks”).

IADC ART welcomes abstracts on any new technology that will improve efficiency or safety in well construction. The purpose is to provide insights (“Sparks”) to technology developers into what matters to those they are innovating for. There is sometimes a vast disconnect between a good idea and a great product, and this series will attempt to close that gap in a good-natured, productive manner. Caveat: This forum is not designed to generate investments in the product or service.

Each Spark Tank presentation should last no more than 15 minutes, which will allow the Sharks to ask questions and give feedback on just how great (or not!) they think the product is.

Rules of engagement:

The ART Spark Tank is designed to allow technology entrepreneurs the opportunity to pitch products or ideas to a panel of experts comprising both drilling contractors and operators. The Spark Tank is envisioned as a forum to “spark” new thinking. The Spark Tank will be moderated by an officer of the Advanced Rig Technology Committee.

Format:

Thirty minutes are allotted for each topic. Each presenter will have 15 minutes to speak. Please be as brief and concise as possible.

Panelists will then use the remaining 15 minutes for questions and comments. Questions and comments will be candid.

Please be polite and allow others to complete their thoughts before speaking.

Investment:

The Spark Tank is not a vehicle to seek investment for an idea or products, though “order of magnitude” estimate of development cost is acceptable.

Click here to access the abstract submission form.

For more information, contact Mike Killalea, 713-292-1956 or mike.killalea@iadc.org.


IADC Drilling Engineers Committee Kicks Off 2018 with “Drilling the Unconventional Resource Plays”

The IADC Drilling Engineers Committee will kick off its 2018 series of Technology Forums with “Drilling the Conventional Resource Plays” on Wednesday, 21 March. The event is graciously hosted by Wild Well Control in Houston.

DEC encourages contributions from industry for possible presentations at the Q1 tech forum. If you have an idea for a possible presentation, contact DEC Chairman Dennis Moore (ddmoore@marathonoil.com), Robert Estes (robert.estes@halliburton.com), Keith Lynch (Keith.W.Lynch@conocophillips.com), or Mike Killalea (mike.killalea@iadc.org).

“Drilling the Unconventional Resources Plays” will address what is new or different about drilling the unconventional resource plays. The vast majority of the current drilling in the US today is being done in the unconventional resource plays, often called Shale Plays. This activity has led to re-examination and modification of how we do many things. Pad drilling, batch drilling, sim-ops and offline activities are a few things that are being developed and expanded upon to make drilling more of a manufacturing process. Increased well density and multistage frack jobs have required increased accuracy and precision in well placement. Reservoir characteristics and economics have required revisiting the approaches to well control, kick tolerance and casing programs. Long laterals and multistage frac jobs present new demands on casing and cement jobs. The forum will be an opportunity to discuss as many of these or other similar topics as possible with some of the people actively engaged in these activities.

The Q1 DEC Technology Forum will convene at WWC’s facility at 2202 Oil Center Court, Houston, TX 77073.

The event will begin at 08.00 with coffee and networking, with the business program kicking off at 08.30. The forum will adjourn at lunch time, with a light lunch provided courtesy of WWC.

Click here to register.

The schedule for the remainder of the year is:

  • Q2: “The New Age in Drilling”, examining the impact of the “Great Crew Change” and the advance of millennials to industry leaders. Tuesday, 13 June, hosted by National Oilwell Varco.
  • Q3: “Contemporary Challenges in Exploration Drilling”, a review of cutting-edge developments in drilling exploration. Tuesday, 19 September, hosted by Weatherford.
  • Q4: “Impact of Advances in Technology on Equipment Performance and Reliability”, discussing technical improvements to improve efficiency in these areas. Tuesday, 14 November, hosted by Halliburton.


IADC ART Committee announces 2018 schedule

The IADC Advanced Rig Technology Committee has announced its schedule for 2018, which includes three ART Spark Tanks, a Cybersecurity Workshop in Stavanger during April, and ART committee meetings in Copenhagen during June and Austin during September.

Under the leadership of ART Chairman Robin Macmillan, NOV, and Vice Chairman Trenton Martin, Transocean, the following meetings are scheduled. Registration is now available.

  • ART Committee Meeting, February 8, 2018, IADC HQ, Houston;
  • ART Cybersecurity Subcommittee Meeting, February 15, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, February 27, 2018, IADC HQ, Houston;
  • Deadline for Spark Tank Abstracts, March 2, 2018, IADC HQ, Houston;
  • ART DCS Subcommittee Meeting, March 22, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, March 27, 2018, IADC HQ, Houston;
  • ART Spark Tank, April 4, 2018, IADC HQ, Houston;
  • ART Cybersecurity Workshop, April 12, 2018, TBD, Stavanger, Norway;
  • ART BOP Controls Subcommittee Meeting, April 24, 2018, IADC HQ, Houston;
  • ART Committee Meeting, May 3, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, May 22, 2018, IADC HQ, Houston;
  • ART DCS Subcommittee Meeting, May 24, 2018, IADC HQ, Houston;
  • ART Cybersecurity Subcommittee Meeting, June 14, 2018, IADC HQ, Houston;
  • ART Committee Meeting, June 18, 2018, Bella Center, Copenhagen, Denmark;
  • ART BOP Controls Subcommittee Meeting, June 26, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, July 24, 2018, IADC HQ, Houston;
  • ART DCS Subcommittee Meeting, July 26, 2018, IADC HQ, Houston;
  • ART Cybersecurity Subcommittee Meeting, August 9, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, August 28, 2018, IADC HQ, Houston;
  • ART Spark Tank, August 30, 2018, IADC HQ, Houston;
  • ART Committee Meeting, September 10, 2018, Hyatt Regency, Austin, Texas;
  • ART BOP Controls Subcommittee Meeting, September 25, 2018, IADC HQ, Houston;
  • ART DCS Subcommittee Meeting, September 27, 2018, IADC HQ, Houston;
  • Deadline for Spark Tank Abstracts, October 6, 2018, IADC HQ, Houston;
  • ART Cybersecurity Subcommittee Meeting, October 11, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, October 23, 2018, IADC HQ, Houston;
  • ART BOP Controls Subcommittee Meeting, November 27, 2018, IADC HQ, Houston;
  • ART Spark Tank, December 12, 2018, IADC HQ, Houston;
  • ART Cybersecurity Subcommittee Meeting, December 13, 2018, IADC HQ, Houston;

For more information on IADC ART, contact Mike Killalea, 713-292-1956, mike.killalea@iadc.org.


ART Committee Announces Agenda for 8 February Meeting

The 8 February kick-off meeting of the IADC Advanced Rig Technology Committee will set the tone for its 2018 work programs. Please make plans to attend this event, which begins at 09.00 at IADC’s Houston headquarters. The meeting will be led by ART Chairman Robin Macmillan, National Oilwell Varco, Vice Chairman Trenton Martin, Transocean, and ART subcommittee officers.

Agenda items are:

— Welcome and introductions – Robin Macmillan, ART Chairman

— Introduction to facility and IADC antitrust policy – Mike Killalea, IADC

— ART subcommittee updates

— Drilling Control Systems: Nathan Morales, Chair, BP

— Cybersecurity: Dr Siv Hilde Houmbe, Chair, Secure NOK

— BOP Control Systems: Roy Mills, Chair, Noble Corp

— Discuss process for qualifying guidelines for publications – Trenton Martin, ART Vice Chair

— Discuss possible collaboration with Incose (www.incose.org) — Trenton Martin

— Review ART Committee calendar (http://www.iadc.org/advanced-rig-technology-committee/meeting-schedule/)

— Discuss 2018 ART Conference, 11-12 September, Hyatt Regency, Austin, Texas (http://www.iadc.org/event/iadc-advanced-rig-technology-conference-exhibition/). Deadline for abstracts is 9 March

— Review Spark Tank schedule. Next Spark Tank is 4 April. Deadline for abstracts is 3 March

— Discuss minute taking

— Other issues

— Review next meeting date (3 May, OTC)

— Adjourn

For more information, contact Mike Killalea at Mike.Killalea@iadc.org. For information on the ART Cybersecurity Subcommittee, contact Melissa Mejias at Melissa.Mejias@iadc.org.


 

 INDUSTRY RESOURCES

Drilling Matters’ Mission Petrohouse highlights everyday use of petroleum products

Mission: Pilot your rocketship through a 3D home. Identify all products manufactured from petroleum. Then blast off into space!

Mission Petrohouse is the latest interactive addition to DrillingMatters.org, IADC’s educational tool to dispel myths and misconceptions about the petroleum industry.

In this exciting 3D game, developed specifically for IADC Drilling Matters, the player pilots a retro-style rocket ship through an ordinary home. The goal is to identify and “zap” all objects derived from petroleum to fill the ship’s fuel tank. The player’s “inventory” tracks all items zapped, and explains the connection to hydrocarbons. Easy to play on an ordinary computer.

DrillingMatters.org comprises 16 modules. Additional new modules include:

  • More than a Fuel: From the food we eat, to the clothes on our backs, to cosmetics and skin care products, soaps and detergents, life-saving medical equipment and pharmaceuticals, building materials, toys and packaging materials, thousands of the products we use and depend on every day are made from hydrocarbons.
  • Life on a Rig: It takes a lot of people to keep a drilling rig working 24 hours a day. Because rigs often drill in remote locations, the men and women who work on them spend weeks away from home, working long hours. However, their hard work is balanced with an abundance of time off, good salaries, and generous benefits.
  • How Hydrocarbons Drive Jobs and the Economy: As the most abundant, affordable and reliable energy source, fueling most of the planet’s power and electricity needs, oil and gas hydrocarbons also provide value in another very significant way: Jobs. And those jobs are generated across countries in every region of the globe, creating a ripple effect that stimulates local economies.
  • Energizing Transportation with Oil and Gas: Energizing transportation is one of the largest boons humanity has realized from hydrocarbons. Before oil and natural gas, travel was a peril-fraught endeavor — dangerous, uncomfortable, and tediously long.
  • Interactive Rig: Drilling Matter’s enhanced interactive rig produces narrated video when a user clicks on any of several rig components.
  • Glossary: A handy guide to common and useful drilling terms.
  • The Challenge and Rewards in Deepwater: Offshore production began in the US in 1896 in the Pacific Ocean offshore California. Modern offshore drilling and production uses equipment and techniques that are as far from those Nineteenth Century platforms as the International Space Station is from the Wright Brothers’ Kitty Hawk airplane.

Check out the Drilling Matters website, and tell your friends and neighbors. Help us educate the public about our great industry. Drilling Matters: Spread the word.


API Standard 53 5th Edition Out for Ballot

The API Standard 53 (Blowout Preventer Equipment Systems for Drilling Wells) 5th Edition is currently out for ballot as of 10 January 2018.

The purpose of the standard is to provide requirements on the installation and testing of blowout preventer equipment systems on land and marine drilling rigs (barge, platform, bottom-supported and floating).

The proposed 5th edition features new language applicable to onshore BOP equipment, therefore it is highly encouraged that it is read through carefully since this is considered one of the leading industry documents in regard to BOP systems. Anyone can comment on a letter ballot (voter or non-voter) and all comments must be considered by API.

The ballot (Ballot ID #4329) can be found at API’s website.

All ballot responses must be received on or before 21 February 2018.

For questions, please contact Jim Rocco at jim.rocco@iadc.org or John Pertgen at John.Pertgen@iadc.org.


Updated IADC Federal Regulatory Actions Impacting Offshore Drilling Report Now Available

IADC recently updated the Federal Regulatory Actions Impacting Offshore Drilling report. Released semi-annually, the report details federal regulatory actions that could impact offshore drilling activities.

The report reflects regulatory activities announced in the Federal Register or other available sources through December 2017.

The full report can be accessed via the IADC Advocacy webpage.


Book of the Month: IADC Drilling Manual 12th edition

Published by IADC, 2015.

Available in two volumes, 26 chapters including a glossary

More than 200 renowned technical experts contributed to the first major rewrite of the IADC Drilling Manual in 22 years. The IADC Drilling Manual includes 25 chapters including a glossary. Each chapter is also available as a stand-alone in electronic format.

Available for purchase: $500.00

Click here to visit the IADC Book store to purchase.


IADC Lexicon Featured Term for January 2018

The IADC Lexicon (IADCLexicon.org) is a compendium of upstream-related terms, which, unlike conventional glossaries, are official definitions drawn from legislation, regulation and regulatory guidance, standards (global, national and regional), and IADC guidelines. Terms often have multiple definitions from different sources.

Check out the new Random Term Generator.

This month’s Featured Term is:

This month’s Featured Term is “Sidetrack Operation” (Source: Alaska Oil and Gas Conservation Commission, Definitions, Alaska Admin. Code tit. 20, § 25.990, December 7, 2012):

A drilling operation conducted for the purpose of straightening the original hole, bypassing junk, or correcting mechanical difficulties in the original hole.

(click the link to read the full definition on the IADC Lexicon.)


Accreditation Updates

RigPass

  • GRYPHON HOLDCO, LLC, USA (CONDITIONAL);
  • PETROLEUM TRAINING SCHOOL, ARGENTINA (CONDITIONAL);
  • RIG WORLD MULTI SERVICES PVT LTD, INDIA (CONDITIONAL);
  • TUTIS INTERNATIONAL, KUWAIT (CONDITIONAL);
  • ENSIGN ENERGY SERVICES, INC., CANADA (CONDITIONAL)


Safety Alerts

For the latest safety alerts, visit www.iadc.org/safety-alerts

Alert 17-6: Offshore crane operator falls through dislodged grating


Upcoming Events


Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

  • Apexindo Pratama Duta: (14);
  • PV Drilling: PV Drilling II (8);
  • Weatherford Dlg Int’l: Rig 40 (4); Rig 174 (2); Rig 180 (5); Rig 801 (1); Rig 814 (2); Rig 867 (7); Rig 889 (4).
For certificates received since last recordable incident (in years):
  • KCA Deutag Drilling GMBH, Algeria Branch: T211 (2);
  • Weatherford Dlg Int’l: Rig 144 (2); Rig 174 (2); Rig 776 (1); Rig 801 (1); Rig 814 (2); Rig 870 (3); Rig 871 (2).

New IADC Members

IADC welcomes 13 new members:

  • AUXILIARY SYSTEMS, INC, NORFOLKD, VA, USA;
  • AVETTA, IRVINE, CA, USA;
  • CONTROL TECHNOLOGY INC, BLACKFALDS, ALBERTA, CANADA;
  • G&M MUHENDISLIK SONDAJ MUTEAHHITLIK/G&M ENGINEERING DRILLING CO, ANKARA, TURKEY;
  • IMAERO INTEGRATED LIMITED, PORT HARCOURT, RIVERS STATE, NIGERIA;
  • JAR LIFTING & INSPECTING SERVICES, DAMMAM, SAUDI ARABIA;
  • JOSHROB SOLUTIONS, PORT HARCOURT, RIVERS STATE, NIGERIA;
  • PT RIRE SANJAYA SAKTI, BEKASI, JAWA BARAT, INDONESIA;
  • SINOPEC HUADONG OILFIELD SERVICES CORPORATION, NANJING, JIANGSU, CHINA;
  • TCS LLC, BAKU, AZERBAIJAN;
  • TRANS MARINA GROUP, BATAM, RIAU ISLANDS, INDONESIA;
  • VORENKAMP WELL CONTROL TRAINING, LLC, COLLEGE STATION, TX, USA;
  • WAVECREST INC, KATY, TEXAS USA

DRILLBITS Volume 28, Number 1

Steve Brady, Chairman • Jason McFarland, President • Amy Rose, Editor

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.