DRILLBITS – June 2018
In This Edition
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IADC Supports House Natural Resources Committee Passage of BLM Onshore Permitting Bills
On 27 June, the U.S. House Committee on Natural Resources passed three bills that will eliminate delays in the Bureau of Land Management’s (BLM) onshore permitting process. IADC supports today’s passage of H.R. 6087: Removing Barriers to Energy Independence Act; H.R 6088: Streamlining Permitting Efficiencies in Energy Development Act and H.R. 6107: Ending Duplicative Permitting Act. IADC is also supportive of the committee’s passage last week of H.R. 6106: Common Sense Permitting Act. In response, IADC President Jason McFarland issued the following statement:
“IADC has long been a supporter of energy laws and regulations that responsibly enable the exploration and production of oil and natural gas on Federal lands. Unfortunately, despite soaring production levels in the U.S., production on Federal lands continues to lag behind production on state and private lands. As a result, the Federal government is losing out on millions of dollars in royalties, bonus bids and lease rental payments that are instead being invested elsewhere. The passage of today’s collection of bills is a great start in the legislative process to boost onshore energy development on Federal lands.”
IADC Recognizes 30 Members of Congress with Legislator Awards
On 10 June IADC honored 30 Members of Congress with the first IADC Legislator Awards, which recognized support for the drilling contractor industry in the 115th Congress.
“The upstream oil and gas industry is fortunate to have many supporters in Congress who understand the importance of drilling for oil and natural gas – two fuels that account for more than 66% of the U.S. total energy consumption,” said Jason McFarland, IADC President. “We are grateful for the support of these legislators, who have made time to meet with our members to better understand the drilling contractor industry and how we operate, and have also supported legislation that ultimately continues to enable America’s energy renaissance.”
The award reception was held in Rayburn 2075, and the awards were presented by IADC President Jason McFarland and IADC Chairman Steve Brady of Ensco.
“This industry literally provides the fuel that powers the U.S. and world’s economies. Yet, many insist that we should ‘keep it in the ground.’ Those who insist that just aren’t realistic about the amount of energy and types of fuels we consume in this country. The EIA expects demand for natural gas and oil will continue to increase until 2040 and the U.S. can supply that demand safely and with environmental stewardship, while also supplying jobs for our economy and taxes for state, local and federal governments,” said Liz Craddock, IADC Vice President, Government & Industry Affairs. This industry is so vitally important to virtually all other industries throughout our economy and IADC is grateful for the support of these Senators and Representatives who recognize the importance of having a strong upstream industry in the U.S.”
The following Senators and Members of Congress were recognized with the 2018 IADC Legislator Award:
Senator John Barrasso (R-WY) Representative Jeff Duncan (R-SC)
Senator Bill Cassidy (R-LA) Representative Louie Gohmert (R-TX)
Senator John Cornyn (R-TX) Representative Paul Gosar (R-AZ)
Senator Ted Cruz (R-TX) Representative Vicente Gonzalez (D-TX)
Senator Heidi Heitkamp (D-ND) Representative Garret Graves (R-LA)
Senator Jim Inhofe (R-OK) Representative Gene Green (D-TX)
Senator James Lankford (R-OK) Representative Will Hurd (R-TX)
Senator Joe Manchin (D-WV) Congressman Evan Jenkins (R-WV)
Senator Lisa Murkowski (R-AK) Congressman Mike Johnson (R-LA)
Representative Rob Bishop (R-UT) Representative Doug Lamborn (R-CO)
Congresswoman Liz Cheney (R-WY) Representative Markwayne Mullin (R-OK)
Representative Collin Peterson (D-MN) Representative Steve Pearce (R-NM)
Representative Jim Costa (D-CA) Representative Steve Scalise (R-LA)
Representative Kevin Cramer (R-ND) Representative Bruce Westerman (R-AR)
Representative Henry Cuellar (D-TX) Representative Don Young (R-AK)
IADC Hosts Washington D.C. Fly-In for Onshore and Offshore Members
On 11-14 June, IADC hosted a Fly-In in Washington, D.C. for onshore and offshore members. Those who attended participated in 17 meetings and visited with a total of 28 congressional offices over two days. They also had an opportunity to meet with representatives from BSEE and BLM. IADC also hosted an educational ‘Snack and Learn’ event on Capital Hill for Congressional staff, agency staff, trade associations and anyone else who had an interest in learning more about the basics of onshore and offshore oil and natural gas drilling.
IADC members in attendance included Christopher Menefee, Independence Contract Drilling Inc.; James Sanislow, Noble Drilling; Michael Lawson, Rowan Companies; Mike Bowie, Baker Hughes, a GE Company; Mike Garvin, Patterson-UTI Drilling Company; Scott McKee, Cactus Drilling; Steve Brady, ENSCO plc; and Terry Bonno, Transocean Ltd. Additionally, Jason McFarland, IADC President, Liz Craddock, Melissa Mejias and Bob Warren, all from IADC, attended the Fly-In events.
The Snack and Learn event featured a presentation on Drilling 101, and more than 35 people attended the educational event. The group met with Members of Congress from Oklahoma, Texas, North Dakota, Utah, Louisiana, Arizona, Alabama, New Mexico and Maine. During each meeting, discussion centered on key issues including industry safety, the BSEE Well Control Rule, steel and aluminum tariffs, offshore access, NAFTA, BLM permitting delays, support for state maritime academies and US corporate tax reform. The group also met with BSEE Director Scott Angelle and Bureau of Land Management Deputy Director, New Mexico Sheila Mallory during their time in D.C.
IADC Invited to Participate in Department of Interior Roundtable Discussion on Energy
Presidential Executive Order on Ocean Policy Aims to Advance the Economic, Security and Environmental Interests of the U.S.
On 19 June, the U.S. President issued an Executive Order (EO) regarding the ocean policy to advance the economic, security and environmental interests of the U.S. The EO supports and encourages the government to work to facilitate the economic growth of coastal communities and promote ocean industries, advance ocean science and technology, enhance America’s energy security and ensure that Federal regulations and management decisions do not prevent productive and sustainable use of ocean, costal and Great Lakes water.
To read the Executive Order in Full, visit the White House 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
The House also passed the NDAA and a slew of other bills intended to combat the opioid crisis. This month, the chamber tried to pass two different immigration bills, but both failed to gain enough support for passage in the U.S. House. Earlier in the month, they passed the Water Resources Development Act, or WRDA.
This month, the Senate passed the National Defense Reauthorization (NDAA), an appropriations minibus which contains three Appropriations bills for Military Affairs, Energy and Water and Legislative Branch. They have also begun consideration of the Farm Bill, which reauthorizes the nation’s farm support programs.
The White House spent the month focusing on immigration, specifically it’s family separation policy at the border between the U.S. and Mexico. In addition, tariff and NAFTA negotiations are ongoing. The Supreme Court upheld the President’s travel ban, and the President will have the opportunity to select another Supreme Court pick with the retirement announcement of Justice Kennedy.
IADC Brazil Chapter Works to Prevent Changes to Customs Regime
The IADC Brazil Chapter, represented by its Executive Secretary, Dr Leandro Luzone, recently worked with several industry groups to help prevent the advance of a bill that would have changed Repetro in the state of Rio de Janeiro. Repetro is a special customs regime that allows the import of specific equipment to be used directly in the oil and gas research and mining activities without incurring federal taxes. This enables the temporary entry into the country of high-value equipment for use in oil and gas E&P.
The bill, which had been advanced by the Rio de Janeiro Parliament, intended to limit the tax limit to only the exploration phase. The justification was that the state of Rio de Janeiro could not lose out tax revenues due to the country’s ongoing financial crisis. Under the pretext of increasing revenues in the short term, the proposed bill would have led to job losses in the state in the medium and long term, as companies that are currently working in Rio de Janeiro may opt to work in other tax-exempt states.
European Commission Publishes Evaluation Report on EU Rules on Machinery Safety and Product Liability
The Machinery Directive was adopted in 2006, and became applicable in 2009, and is the core European legislation regulating products of the mechanical engineering industries. It’s objective is to ensure a high level of safety and protection for machinery users and other exposed persons and to secure the free movement of machinery in the internal market.
In 2015, after six years of implementation, it was necessary to assess if the Directive had achieved its objectives. The purpose of the evaluation was to analyze the performance of the Machinery Directive, assesses the extent to which it is fit for purpose and whether it continues to deliver effectively, efficiently and at minimum cost the intended benefits for consumers and businesses.
99% of the respondents to the evaluation rated the Machinery Directive as important to the objective of ensuring a high level of health and safety for users of machinery. However, while a majority of stakeholders view the directive as providing a suitable framework at present, doubts have been raised regarding the directive’s ability to remain fit for purpose in the face of emerging Artificial Intelligence and the Internet of Things developments.
To access the full report, please visit the European Commission website.
BSEE Releases Study on Strategies to Improve Safety and Mitigate Risks in Offshore Oil and Gas Operations
On 21 June, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) released a report from the National Academies of Science entitled, “High-Performance Bolting Technology for Offshore Oil and Natural Gas Operations”. The objective of the BSEE-sponsored study was to determine the optimal material properties and coating requirements associated with fasteners used in critical safety components and equipment in offshore oil and natural gas subsea applications.
A copy of the report can be purchased via the National Academies of Sciences, Engineering and Medicine website.
U.S. Coast Guard Offers Marine Transportation System Cyber Awareness Webinar
In coordination with the ABS Group, the U.S. Coast Guard provided Area Maritime Security Committee members “Maritime Transportation System Cyber Awareness” training via webinar. In consideration of those who were not able to participate in the webinar sessions, the Coast guard has made available a recording of the training online. The training was developed to provide basic cyber awareness with a focus on maritime facility and vessel operations. The awareness training is intended to provide personnel at all levels of an organization with a basic understanding of cyber terms and systems that may be encountered throughout the Marine Transportation System.
To access the online training, please visit the Coast Guard Maritime Commons blog.
U.S. BLM Issues Memorandum on Directional Drilling Into Federal Mineral Estate from Well Pads on Non-Federal Locations
On 12 June, the U.S. Bureau of Land Management (BLM) issued an Instruction Memorandum on Directional Drilling into Federal Mineral Estate from Well Pads on Non-Federal Locations. The purpose of the Instruction Memorandum (IM) it to establish polices and procedures for processing Federal Applications for Permit to Drill (APD) proposing to drill into and produce leased Federal minerals from well pads on entirely non-Federal locations.
The policies and procedures apply to the processing of APD’s for wellbores that produce Federal minerals from well pads that are located on entirely non-Federal land. The BLM commonly refers to such well as “Fee/Fee/Fed”. The IM begins with guidance for complying with the National Environmental Policy Act (NEPA), the Endangered Species Act and the National Historic Preservation Act when processing APDs in three specific Fee/Fee/Fed situations. Following the discussion of these 3 situations, the IM provides additional general guidance for processing Fee/Fee/Fed APDs.
To access the entire Instructional Memorandum, please visit the U.S. BLM website.
UK Maritime and Coastguard Agency Releases UK National Standard for Marine Oil Spill Response Organizations
On 8 June, the UK Maritime and Coastguard Agency released its final version of the UK National Standard for Marine Oil Spill Response Organisations.
Introduced after a consultation with industry on the creation of a UK national standard for Oil Spill Response Organisations between January and March 2018, the standard contains up-to-date best practice guidance for organizations delivering Tier 2 spill response services in the UK. Applicability of this standard extends to all offshore installations on the UK Continental Shelf.
The Standard can be accessed at https://bit.ly/2yMhbzI
ULL Student Chapter Members Attend Conference, Tour Weatherford Facilities
IADC Caspian Chapter Hosts Golf Tournament
IADC Headquarters is Relocating
IADC is moving! The IADC Houston office will open the doors to its new headquarters on 2 July, 2018.
The new IADC headquarters will be located at 3657 Briarpark Drive, a mere half a mile from the current building. It will offer a brand new, custom-designed office space, and modern meeting facilities that will offer significant value to IADC’s members.
The Association looks forward to welcoming members to the new corporate headquarters beginning the week of July 2.
IADC Accreditation Department Successfully Passes ISO 9001:2015 Recertification Audit
In February, IADC’s Accreditation Department successfully passed the ISO 9001:2015 recertification audit with zero findings and an added commendation for improvement since the previous year’s audit.
The ISO 9001 family addresses various aspects of quality management and contains some of ISO’s best-known standards, which provide guidance and tools for companies and organizations that want to ensure that their products and services consistently meet customer’s requirements. ISO 9001:2015 sets out the criteria for a quality management system and is the only standard in the family that can be certified to. This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement.
“It is important that IADC’s accreditation division, as an accrediting body that holds training providers to course and quality standards, holds itself accountable for the quality of the services delivered to the industry,” said Brook Polk, Director – Program Development and Technology. “Obtaining the ISO recertification ties directly to ACD’s core mission of commitment to providing customer satisfaction with the highest quality products and services. It reinforces our drive for continued improvement and program integrity.”
For more information, please contact Brooke Polk at Brooke.Polk@iadc.org.
IADC Prepares to Roll Out WellSharp Well Servicing Accreditation in 2018
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.
The first WellSharp track, for drilling operations, was launched in 2015. It was the result of an industry-led effort to improve well control training and assessment. Compared with WellCAP, the curriculum puts greater emphasis on risk awareness and assessment.
For more information about converting to the new WellSharp Well Servicing Accreditation, please contact IADC’s Accreditation Department.
Minutes From 6/13 IADC DEC Tech Forum, “New Age in Drilling” Now Available
The IADC Drilling Engineers Committee’s 13 June Technology Forum, “The New Age in Drilling”, focused on how the generational changing of the guard impacts development of new technology, refinement of business models, and the perspective of drilling professionals
The event was hosted by National Oilwell Varco at its facility at 10353 Richmond Ave in Houston,
The agenda featured five up-and-coming drilling technologists to present their perspectives on technology, decision making and more. In lieu of individual Q&A, the speakers participated in a panel following all presentations.
In addition, spokespersons for DEC joint industry will provided updates on their work, and a proposal was made for a new JIP.
DEC Advisory Board Member Robin Macmillan of National Oilwell Varco opened the meeting, welcomed the attendees and reviewed the agenda.
- JIP DEC 1 “Drilling Systems Automation (DSA) Roadmap”: Robin Macmillan, National Oilwell Varco (Phase II, Stage I Full Report)
- JIP DEC 2 “Decision Support for Dynamic Barrier Management” – Amar Ahluwalia, DNVGL (Project description; supporting slides)
- JIP DEC 3 “Independent Verification and Validation of Sensors and Systems in Drilling: Phase I”, Maria Araujo, Southwest Research Institute (Project description)
JIP proposal: Carolyn LaFleur, HARC Environmentally Friendly Drilling Systems, “Data Science for Life Cycle Assessment of Dual Fuel Diesel Engine Technology”
The HARC Environmentally Friendly Drilling Systems Program (EFD) seeks industry support to develop a predictive model using advanced instrumentation and data science. The model will support planning and optimization by addressing uncertainties of fuel consumption, engine performance, emissions, and environmental factors.
Panel: “New Age of Drilling” – Robin Macmillan, moderator
- Clena Abuan, Senior Technology Associate, BP: “Where Creativity Sits” (no slides used)
- Theresa Baumgartner, Drilling Research Engineer, Shell: “A New Open-source Culture for Operators to Accelerate Value Gains from Drilling Data Analytics” (presentation not available)
- Stephanie Mertz Farrar, Process and Reliability Manager, Phoenix Technology Services: “How Does the Current Generation Differ in Its Approach to Technology and Decision-making?”
- Mete Mutlu, Engineer, Subsea Task Force, Transocean, “From Sensor to End User: Offshore Well Control Equipment Condition Monitoring” (presentation not available)
Following the presentations and discussion, Mr Macmillan adjourned the meeting. Lunch was sponsored by NOV.
The IADC DEC website is https://www.iadc.org/drilling-engineers-committee/. For questions about DEC in general, contact Mike Killalea, 713-292-1956, firstname.lastname@example.org
Register for the IADC Spark Tank on 16 August
The IADC Advanced Rig Technology Committee will host the next ART Spark Tank, scheduled for 0900-1130 on Thursday, 16 August, at IADC headquarters in Houston, Texas. Note the change in date for the Spark Tank – 16 August is the new date, replacing 30 August, the old date!
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”). The Spark Tank provides 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.
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.
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.
Click here to register.
Colorado Oil & Gas Conservation Commission Hosts Monthly Industry Operations Meetings
For IADC members with operations in Colorado, the Colorado Oil & Gas Conservation Commission (COGCC) conducts a monthly “Industry Operations Meeting” with industry’s technical, operations and regulatory staff to discuss issues or concerns regarding compliance expectations. The purpose of the meetings is to facilitate compliance by enhancing communication and resolving issues quickly.
All meetings are held from 9 to 10:30 a.m. at COGCC’s Denver office unless otherwise noted. The next meeting is scheduled for July 17.
More information can be obtained at the COGCC website.
IADC ISP Plaques Showcase Company Safety Record
Safety should not be competitive in the drilling industry, but bragging rights always are!
You have worked hard to build an impressive safety record. Your employees pay close attention to ensure that they work safely.
Let your customers know about it. IADC ISP plaques are a stand-out way to ensure the world knows how successful your accident prevention program is.
IADC has two types of ISP plaques available. The Executive Grade: Bronze-tone safety excellence medallion on a red velvet background with gold engraved text on a raised bronze-tone plate. Supreme Grade: Laser engraved text with company name, rig name or number and IADC logo in raised gold lettering. Both plaques include company name, rig name or number with the numbers of years without a Lost time or recordable incident.
IADC acknowledges the rigs in the monthly DrillBits newsletter.
Get extra plaques for the office, rig, and your top employees. Fire those guys up with a well-deserved pat on the back.
IADC ISP plaques are only available to companies participating in the IADC ISP program, the industry’s definitive safety statistics program since 1961.
For more information on ordering plaque please contact Loretta Krolczyk at email@example.com.
To participate in ISP, please email firstname.lastname@example.org
Survey Results Provide Insight on Enhancing IADC DDR
Preliminary results of a survey on usage of the IADC Daily Drilling Report (DDR / “Tour Sheet”) provided valuable feedback that will help guide the process of updating the report for maximum benefit for the industry.
The IADC Drilling Controls Systems Subcommittee, which sponsored the survey and the draft rig states, is advancing the IADC DDR Plus project, which seeks to enhance the DDR. The DCS is a subcommittee of the IADC Advanced Rig Technology Conference.
More than half the recipients indicated that they used the DDR to receive data; for end of well reporting; and performance analysis. Other common responses were to provide data; verify/confirm payments; satisfy internal policy; invoice providers; and reporting to government.
61% of respondents reported using the electronic version of the IADC DDR, while 23% use the hard copy; and 13% use both.
79% of respondents use the DDR to track activities, indicating that the form connects to performance.
The complete survey results are available as a PDF on the IADC Website.
For more information about the DCS subcommittee, or the DDR Plus project, please contact Mike Killalea, 713-292-1956, email@example.com
Add a DrillingMatters.org Link to Your Website
Show the browsers to your website that Drilling Matters to you. IADC’s DrillingMatters.org is an educational tool designed to dispel myths and misconceptions about the petroleum industry, and demonstrate the value of our industry to humanity.
If possible, please use the enhanced link below, which provides SEO content. A webmaster can easily insert this code on a website.
<!– ————————— BEGIN IMAGE LINK ————————— –>
<div><a title=”Drilling Matters, an interactive video-based educational site to improve public understanding of the oil and natural gas drilling industry” href=”http://drillingmatters.iadc.org/” target=”_blank” rel=”dofollow”><img style=”max-width: 100%; height: auto;” src=”http://drillingmatters.iadc.org/wp-content/uploads/2017/03/DrillingMatters-600×500.jpg” width=”300″ height=”250″ /></a></div>
<!– ————————— END IMAGE LINK ————————— –>
Please contact Anthony Garwick (Anthony.firstname.lastname@example.org) with any technical questions.
For more information about Drilling Matters, contact Mike Killalea, email@example.com, +1 713-292-1956.
IADC Lexicon Featured Term for June 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:
“Cyclic Surging” (IADC UBO / MPD Glossary, December 2011) :
Small surges of pressure that oscillate within the line or vessel; cyclic surges are associated with line or vessel equipment, such as reciprocating pumps/compressors and pressure reducing valves.
(click the link to read the full definition on the IADC Lexicon.)
For the latest safety alerts, visit www.iadc.org/safety-alerts
Alert 18-02: Fatality – Struck by/Caught Between Pipe Handling Catwalk Machine
Rigs Receive ISP Certificates
For certificates received since last LTI (in years):
New IADC Members
IADC welcomes 10 new members:
DRILLBITS Volume 28, Number 6
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 firstname.lastname@example.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 email@example.com.