DRILLBITS – May 2016
This Month’s Articles
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Hydrocarbons Vital for Energy Future; IADC Response to International Energy Outlook 2016
On 16 May the U.S. Energy Information Administration (EIA) issued the International Energy Outlook 2016, which projected that world energy consumption, led by increases in the developing world, will increase by 48% over the next thirty years. Particularly, the EIA noted that developing Asia accounts for more than half of the projected increase in global energy use through 2040. In response, IADC President Jason McFarland issued the following statement:
“The EIA’s International Energy Outlook is a perfect reminder of how vital hydrocarbons are to fueling our world and how misguided the ‘Keep it in the Ground’ rhetoric is to ensuring the world has plentiful and affordable energy. Even with the tremendous gains in renewable energy, the reality is that the world-wide consumption of energy will rise over the next three decades and a substantial amount of hydrocarbons will still be needed to heat our homes and fuel our cars.”
“IADC members are committed to drilling for oil and natural gas safely and in an environmentally conscious manner and are proud that their hard work helps to keep the lights on across the world.”
OSHA Issues New Rule to Track Workplace Injuries and Illnesses
OSHA recently issued a new final rule to revise to improve tracking of workplace injuries and illnesses. Under the new rule, employers in high-hazard industries (NAICS 211 for oil and gas extraction is NOT presently classified as high-hazard) will send OSHA injury and illness data that employers are already required to collect, for posting on the agency’s website.
All establishments with 250 or more employees in industries covered by the recordkeeping regulation are now required under the new rule to electronically submit OSHA injury and illness information from OSHA Forms 300, 300A and 301. Establishments with 20-249 employees in certain industries must electronically submit information from OSHA Form 300A only.
The new requirements take effect 10 August 2016, with phased in data submissions beginning in 2017. These requirements do not add to or change an employer’s obligation to complete and retain injury and illness records under the Recording and Reporting Occupational Injuries and Illnesses regulation.
IADC Future Tech Subcommittee Launches “Spark Tank” to Vet New Technologies
The IADC Future Technology Subcommittee is piloting a new meeting format to give technology entrepreneurs have a new opportunity to pitch their products and ideas to a panel of drilling contractors and operators. The first “Spark Tank” is scheduled for 09.00-11.00 (CDT) on Wednesday, 22 June, at IADC headquarters. The Future Technology Subcommittee is part of the Advanced Rig Technology Committee.
Similar to the television show “Shark Tank”, the panel will ask questions and give feedback on the presenters on just how great (or not!) they think the product is.
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.
Advice for Presenters:
Each session will be scheduled for 30 minutes. Each presenter will have 15 minutes to pitch directly to the panel. Try to focus on:
- The problem you’re trying to solve;
- How your solution solves the problem;
- Articulate benefits from the customer point of view, in terms of savings, efficiency gains or other metrics the target customer will understand;
- Implementation issues/challenges.
During the 15-minute pitch period, the panel can ask any questions they would like. After the 15 minutes, each panelist will have the opportunity to provide feedback on the proposed idea.
For more information, contact Mike Killalea, firstname.lastname@example.org
Robust Offshore Leasing Program Crucial for Drilling Contractors, IADC Comments on Draft 2017-2022 Outer Continental Shelf Leasing Program
On 26 April, the US Interior Department’s Bureau of Ocean Energy Management (BOEM) hosted a public meeting on the draft 2017-2022 Outer Continental Shelf Oil & Gas Leasing Proposed Program. In response, IADC President Jason McFarland issued the following statement:
“A robust oil and gas leasing program in the U.S. Gulf of Mexico and off the coast of Alaska is critical to the future success of offshore drilling contractors. As the BOEM notes in their own proposal, in 2014, the US produced more than 49 quadrillion btus of oil and gas. Even with the rapid increase in unconventional onshore oil and gas production, the outer continental shelf will continue to be an important source of oil and gas for decades to come as it is expected that nearly 1.9 million barrels of oil will be produced per day offshore in 2016. The U.S. still uses nearly 20 million barrels of oil per day. That oil can either be obtained by import from overseas or from our own U.S. reserves, which has the added benefits of jobs and taxes and which contribute to the overall economy. Given these facts, it is absolutely crucial that the five-year program offer extensive opportunity for further exploration, development and production.”
“IADC members believe that the U.S. requires energy policies that facilitate energy exploration and production, as these activities fuel our economy. Case in point: the oil and gas industry supports more than $1 trillion in total value added to the economy, representing 7.3 percent of U.S. GDP. Additionally, outer continental shelf revenues, totaling more than $8 billion a year, and more than $220 billion since the first offshore well was drilled, is the source for the $900 million which funds projects authorized by Congress through the Land and Water Conservation Fund, creating and protecting national and local parks, areas around rivers and lakes, national forests, and national wildlife refuges.”
“Year after year this industry finds new ways to innovate with regard to technology and equipment, along with improved safety measures and procedures that protect both our workforce and the environment. We continue to encourage the Department of the Interior, and the Administration, to put forth policies that are supportive of this industry, which so greatly contributes to the overall U.S. economy.”
DEC Tech Forum Examines “Well Life Cycle Design”
Increasingly, industry’s focus is on the entire life cycle of the well. The 8 June Technology Forum organized by the IADC Drilling Engineers Committee features cutting-edge presentations addressing life-cycle issues.
The tech forum is graciously hosted by Weatherford at its facility at 11909 Spencer Road, Houston, TX 77042.
The event begins at 08.00 with coffee, refreshments and networking. Following a review of the DEC’s current JIPs, the audience will hear six ideas for improving well life-cycle design. The morning concludes with a light lunch, sponsored by Weatherford. See the complete schedule below.
To register and view a map of the venue, go to https://www.iadc.org/event/iadc-dec-well-life-cycle-design-forum/.
08.00 Coffee/Business Cards
08.25 Welcome & Agenda Review
08.30 JIP Updates
08.30 Drilling System Automation Roadmap: Robin Macmillan, NOV
08.40 Barrier Management: Bill Nelson, DNV-GL
08.50 Design for Life of Well: Is Well Integrity the Key Common Denominator: Hans Christian Freitag, Baker Hughes
09.15 Integrated Wellbore Integrity Restoration Services – Descirption of the Technology/Approach: Dimas C AZuaje & Luis Godoy, Weatherford
09.40 Reducing P&A Liability with Riserless Subsea System: Martial Burguieres, Wild Well Control
10.20 Creating Meal In Situ Plugs: Sylvain Bedouet, Bison Oil Tools
10.45 Completion & Artigicial Lift Synergies for the Life of the Well: Bill Lane, Weatherford
11.10 Oilfield Resins for Plug & Abandonment: Paul Jones, Halliburton
11.35 Lunch & Adjournment
For more information on the Drilling Engineers Committee, contact Mike Killalea, email@example.com.
Coiled Tubing Operations Book Now Available
Coiled Tubing Operations, a comprehensive new book covering the spectrum of coiled-tubing operations, is now available for purchase for both technical and non-technical readers through the IADC Bookstore. The publication provides general descriptions of coiled tubing units (CTU), as well as CTU components, operations and applications, including CT Drilling. Appendices provide detailed mathematical derivations and calculations for CT operations.
IADC Submits Letter to BSEE Requesting Clarifications and Interpretations of Well Control Rule
On 27 May, IADC, together with API, IPAA, NOIA, OOC, PESA and the US Oil and Gas Association, submitted a letter to BSEE Director Brian Salerno regarding the final Blower Preventer Systems and Well Control rule.
Dozens of industry experts in the joint trade groups collaborated on a review of the lengthy, complex and extensive rule, focusing on portions of the rule with an imminent effective date. The group identified several areas in which clarification and/or interpretation from BSEE is necessary in order to successfully implement the rule by 28 July 2016.
These include, but are not limited to:
- Applicable standard for certification of quality management systems
- Functional requirements for ROV intervention capabilities
- Timing of deadman/autoshear upgrades
- Timing of certain accumulator capacity upgrades
- Timing of implementation of revised shearing test standards and interim acceptance of existing test records
- Resolution of inconsistencies across editions of documents incorporated by reference
- BOP failure reporting
- Due date for first Mechanical Integrity Assessment Report
- Process for obtaining alternative compliance for drilling margins
It is understood that other members in the industry have submitted more than 150 individual requests to BSEE for clarification or interpretation of the rule as well.
Full contents of the letter will be available on IADC’s website via the Offshore Operations Division on 3 June.
BSEE, BOEM Publish Results of Environmental Assessment on Use of Well Stimulation Treatments in Federal Waters off California
On 27 May, the Bureau of Safety and Environmental Enforcement (BSEE) and Bureau of Ocean Energy Management (BOEM) issued the results of a comprehensive environmental analysis on potential impacts of hydraulic fracturing on the Outer Continental Shelf offshore California.
Based on the analysis in the joint Programmatic Environmental Assessment (EA), BSEE and BOEM issued a Finding of No Significant Impact from the use of specific well stimulation treatments in oil and gas activities on the Pacific Outer Continental Shelf.
The EA evaluated several categories of treatments, including hydraulic fracturing, a range of alternatives and all environmental resources that could potentially be impacted. The analysis indicated no significant environmental impacts associated with any of the alternatives considered. The EA provides information that BSEE’s Pacific Region will consider in future processing of permits involving well stimulation treatments.
The EA is available for viewing at http://pocswellstim.evs.anl.gov/.
API to Host RP 54 Meeting on 8 June in Houston
The next API RP 54 meeting will be held in Houston on 8 June at the Houston Marriott North, beginning at 9 a.m.
Those in attendance will work on revising API Recommended Practice 54, Occupational Safety for Oil & Gas Well Drilling & Servicing Operations. The revision of the document has the potential to strongly impact onshore drilling contractors by way of regulatory enforcement.
IADC will be in attendance at the meeting and encourages members to also attend.
For the latest safety alerts, visit www.iadc.org/safety-alerts
Alert 15-05: Smashed fingers on tongs
Alert 15-06: Caught between winch truck and half pit
Alert 15-07: Poor situation awareness/Line of fire incident results in OSHA Recordable
Rigs Receive ISP Certificates
For certificates received since last LTI (in years):
New IADC Members
IADC welcomes 16 new members:
DRILLBITS Volume 26, Number 5
Tom Burke, Chairman • Jason McFarland, President • Amy Rose, Editor
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