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A Note from IADC President Jason McFarland on COVID-19
This edition of Drill Bits is a bit different than what we usually share in this space. We thought it best to use this newsletter to share information about how IADC is working to ensure our Members have access to critical industry information related to the COVID-19 pandemic
Our website now includes a page that consolidates global recommendations and guidance from regulators and other industry groups on COVID-19. These links to more information are continually being updated and can be found at iadc.org/covidresources.
You will also find a page with information related to rescheduling of IADC conferences and committee meetings along with up-to-date information regarding our Accreditation programs and certificates. This page will also be continuously updated as new information arises: https://www.iadc.org/covid19-update.
I would also like to point out that if you aren’t already following IADC on our social media channels, they are good sources for daily up-to-date information. You can find us on Facebook and LinkedIn. As well, our flagship publication, Drilling Contractor, is continuing to provide up-to-date industry news at www.drillingcontractor.org. The latest issue of the magazine can be found online at https://www.drillingcontractor.org/digital-reader-marapr-2020-55776.
These are unprecedented times for our industry. I hope that this communication finds you safe and healthy. IADC remains available via phone, email and through our social media channels to continue to provide support for the worldwide drilling industry. Should you have further questions or concerns, please reach out, we are here for you.
IADC advocacy teams continue to monitor the worldwide pandemic, working alongside members to advocate for the essential nature of worldwide oil and gas drilling activities. Items of note:
- IADC Hosts Discussion on Eastern Hemisphere Pandemic Challenges On Tuesday, 7 April, IADC hosted a call uniting more than 80 members from the Eastern Hemisphere, alongside IADC Regional Representatives including Hisham Zebian, VP Eastern Hemisphere; Martin Flojgaard, Regional Director – Australasia; Chit Hlaing, Regional Director – Asia Pacific. Those on the call discussed key challenges during the worldwide COVID-19 pandemic including industry mitigation and contingency plans for safeguarding personnel movements onshore & offshore; financial implications of the dramatic oil price drop; market outlook and changes in regional and local government regulatory requirements and regulations, among other discussion points. IADC’s International Development team is working to put together similar calls specifically for IADC members in India and possibly the Western Hemisphere soon.
- APPEA Guidelines for Worker Movement IADC and our members worked closely with APPEA on a guide for movement of critical oil and gas personnel (and families) into and out of Western Australia. The guide provides information on processes to follow for interstate workers and marine crews moving in and out of State. More information about APPEA’s response to the pandemic can be found on the APPEA website.
- Legal/Contracts Webinar PESA and IADC will host a webinar on Wednesday, April 15 at 2:00 P.M. The webinar will feature a discussion including Contract Issues, Early Termination, Force Majeure, Travel Restrictions, and other Critical Infrastructure topics in the current business climate, facilitated by Tim Tarpley – Vice President, Government Affairs at PESA. More information, including Speakers and registration (required), can be accessed from the PESA Events webpage.
- CARES Act: In response to the devastating economic impacts arising from nationwide quarantine and stay-home orders, the U.S. Congress and Administration have passed three relief bills with a fourth bill planned. The bills are wide-ranging and include direct payments to individuals/families, loans for small businesses, and billions in corporate relief funds. Phase 3 of the stimulus includes the Paycheck Protection Program, available to U.S. companies, which provides loans dispersed through lenders approved by the U.S. Small Business Administration. More information can be found on the U.S. Senate website.
- Strategic Petroleum Reserve: On April 2, the U.S. Department of Energy (DOE) announced a solicitation to immediately make 30 million barrels of the Strategic Petroleum Reserve’s (SPR’s) oil storage capacity available to U.S. oil producers that are struggling with catastrophic financial losses due to the combined impacts of COVID-19 and the intentional disruption of world oil markets by foreign actors. The Department currently intends to make an additional 47 million barrels of storage capacity available thereafter.
- Helicopter Transfer Flowchart IADC and our members worked alongside Oil and Gas UK to develop a COVID-19 Helicopter Transfer Flowchart to determine movement of offshore personnel and considerations related to transporting workers amidst the pandemic. The flow chart can be found on the OGUK website
- Congressional Support for Energy Industry: In these uncertain times, the support and dedication of our elected officials has never been more important. Over the past few weeks, IADC has been vigorously working with Members of Congress, many of whom have issued letters of support for the industry. Congressman Jodey Arrington (R-TX) , Congresswoman Lizzie Fletcher (D-TX), Congressman Dan Crenshaw (R-TX), and a plethora of U.S. Senators have already issued 5 letters in support of the U.S. oil and gas industry. These have been directed to the Department of Interior, U.S. Commerce Secretary Wilbur Ross, and even the President himself, and have been crucial in raising awareness of the difficult situation the industry is currently faced with. As Congress and the Administration continue to work to address the public health crisis arising from the COVID-19 pandemic and to mitigate the economic harm from the Russo-Saudi price war, IADC will continue to work with Congress and the Administration to advocate for our drilling contractors.
- Essential Worker Designation for Oil and Gas Personnel – IADC joined together with PESA, API and IAGC on a letter to petition U.S. Secretary of State, Mike Pompeo, to include the oil and gas sector in its list of essential workers. The letter, issued on 24 March, argued this industry needs to do the work to protect critical energy infrastructure during the pandemic. IADC and PESA joined together on a separate letter urging the U.S. Cybersecurity and Infrastructure Security Agency (CISA) to ensure that energy employees have the ability to maintain critical services during the national crisis.
On 28 March, the U.S. Department of Homeland Security amended their guidance, to include the oil and gas industry. The updated guidance can be found here: :https://www.cisa.gov/publication/guidance-essential-critical-infrastructure-workforce
IADC Chairman’s Anniversary Award Program Accepting Submissions
The Chairman’s Anniversary Award was developed to recognize field-based individuals who have made a direct impact on improved performance for their company, either through a project or personal effort. The Award is given every five years as part of IADC’s anniversary celebrations.
Award winners will demonstrate how their innovative project directly improved performance in the field in one of the following ways:
- Eliminating injuries
- Enhancing process safety
- Reducing NPT
- Improving equipment reliability
- Increasing efficiency
***IADC has extended the submission deadline. Those who wish to nominate a colleague for the Chairman’s Anniversary Award can do so now through 31 August. A selected group of IADC staff and industry veterans will judge all submissions the week of 14 September and a winner will be recognized during IADC’s Annual General Meeting in November.
For more information and to submit a nomination, please visit the IADC Website.
IADC Lexicon Featured Term for April 2020
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.
This month’s Featured Term is:
“Governing Body” ( Source: ISO/IEC 27000:2014, Information technology — Security techniques — Information security management systems — Overview and vocabulary, Third Edition, January 2014. Global Standards):
Person or group of people who are accountable for the performance and conformance of the organization.
- Note 1 to entry: Governing body can in some jurisdictions be a board of directors.
(click the link to read the full definition on the IADC Lexicon.)
New IADC Members
IADC welcomes 14 new members:
- CONNTRAK CATERING SERVICES LLC, ZAYED CITY, ABU DHABI, UNITED ARAB EMIRATES;
- DIPENZE INTEGRATED NIGERIA LIMITED, BENIN, EDO, NIGERIA;
- EKWILOG TECHNICAL SERVICES, AJAH, LAGOS, NIGERIA;
- FALCON RIGS COLOMBIA S.A.S., BUCARAMANGA, SANTANDER, COLOMBIA;
- FUDA ENERGY TECHNOLOGIES DMCC, DUBAI, UNITED ARAB EMIRATES;
- FUTURE LEADERS FOR PETROLEUM TRAINING, NASR CITY, CAIRO, EGYPT;
- JACHE LIFTING SERVICES LTD, PORT HARCOURT, RIVERS, NIGERIA;
- KDI ENGINEERING SERVICES, PORT HARCOURT, RIVERS, NIGERIA;
- RIGUP, AUSTIN, TEXAS, USA;
- SAUDI GLOBAL INSTITUTE, DHAHRAN, EASTERN PROVINCE, SAUDI ARABIA;
- TRUST DRILLING & WORKOVER COMPANY, NEW MAADI, CAIRO, EGYPT;
- ZHONGYUAN WELL CONTROL TRAINING CENTER, PUYANG, HENAN, CHINA
DRILLBITS Volume 30, Number 4
Julie Robertson, Chairman • Jason McFarland, President • Amy Rose, Editor
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