DRILLBITS – November 2016
This Month’s Articles
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Andy Hendricks Elected as 2017 IADC Chairman, 2017 Officers Named
During the 2016 IADC Annual General Meeting in Scottsdale in November, the IADC Board of Directors elected William Andrew “Andy” Hendricks, President and CEO of Patterson-UTI Energy, as its 2017 Chairman.
Mr. Hendricks was appointed to his current position at Patterson-UTI in October 2012. From April 2012 to September 2012, he served as the company’s Chief Operating Officer. Prior to that, Mr. Hendricks worked for Schlumberger in a variety of leadership positions. He joined Schlumberger in 1988 after working offshore for ODECO. He received his Bachelor of Science in petroleum engineering from Texas A&M University in 1987.
“I’m both honored and excited at the same time to be the chairman next year of an organization with such deep roots,” said Mr. Hendricks. “My first big IADC event was back in 1997 with the SPE/IADC Drilling Conference in Amsterdam, and I’ve participated in many IADC events since. IADC plays a very supportive role in our industry in terms of safety, well control and other aspects of performance that allow us to share important but non-competitive information amongst drilling contractors so that we can do a better job for the operators and keep our people safe. I certainly want to do what I can to help build on that and continue all the efforts of the past.”
Other IADC officers elected include:
- Vice Chairman: Steve Brady, Ensco
- Secretary/Treasurer: Scott McReaken, Sevan Drilling
- Division VP Offshore: Lyndol Dew, Diamond Offshore Drilling
- Division VP Onshore: Mike Garvin, Patterson-UTI Energy
- Division VP International Onshore: Niels Espeland, Grey Wolf Oilfield Services
- Division VP Drilling Services: Mike Bowie, GE Oil & Gas
Mike Garvin Named 2016 IADC Contractor of the Year
Mike Garvin, Senior Vice President of Operations Support at Patterson-UTI Drilling Company, was presented with the 2016 IADC Contractor of the Year Award during the IADC Annual General Meeting on 4 November in Scottsdale, Arizona.
The Contractor of the Year Award is given annually, and recognizes individual drilling contractors and their outstanding lifetime achievements in technical innovation, safety and economic efficiency within the drilling industry. Sponsored by National Oilwell Varco, the award is the only one in the industry reserved solely for drilling contractors.
Mr. Garvin has served as IADC Division VP North America Onshore since 2015, and he currently leads the IADC Onshore Advisory Panel, and has been instrumental in collaborating with regulators on behalf of onshore contractors.
“I’m accepting the ward on behalf of the thousands of wonderful men and women that work for Patterson-UTI,” said Mr. Garvin in his acceptance speech. “The only difference between them and me is I’ve had the opportunity to work with all of the wonderful folks that make up the IADC. The award is designed to recognize the things that have been done, but all I can think about is how much more we have left to do.”
Mr. Garvin has 36 years of experience in the upstream energy business. Prior to joining Patterson-UTI, Mr. Garvin worked for Ensco as Senior Operations Manager. He also spent 27 years with GlobalSantaFe and its predecessor companies, Global Marine and Transocean, holding various operations and support leadership positions. Mr. Garvin earned a Bachelor of Science degree in engineering from California Polytechnic State University.
IADC Recognizes Excellence with Exemplary Service Awards
IADC presented industry veterans Scott McReaken and Terry Loftis with Exemplary Service Awards during the 2016 IADC Annual General Meeting in Scottsdale, Arizona, on 3 November.
The IADC Exemplary Service Awards recognize individuals for their outstanding contributions to the association and their commitment to improving and advancing safety, training and technology throughout the industry.
Mr. McReaken, CEO of Sevan Drilling, was recognized for his service as IADC Secretary/Treasurer since 2013 and as an Executive Committee member. Mr. Loftis, Director of Engineering at Transocean, was recognized for his work as chairman of the IADC Advanced Rig Technology (ART) Committee.
“Terry and Scott are each truly dedicated to the mission of IADC, and I am proud to present this well-deserved award to them in recognition of their deep commitment to our association,” said Jason McFarland, IADC President. “It goes without saying that an association is only as strong as the members who support it, and I am thankful for our members who volunteer their time and expertise to support IADC.”
U.S. Interior Department Issues Final Methane and Waste Prevention Rule
On 16 November, the U.S. Interior Department issued the final Methane and Waste Prevention Rule. The Final Rule is effective on 17 January 2017. The U.S. Bureau of Land Management worked on the rule for five years, issuing a notice in the 8 February 2016 Federal Register of the proposed rule.
The updated regulations aim to reduce flaring, venting and leaks of natural gas on public and Indian lands. Industry groups have argued that the rule is duplicative of state regulations and drives up costs for the oil and gas industry. In response to the issuance of the Final Rule, the Western Energy Alliance and Independent Petroleum Association of America (IPAA) filed suit in the U.S. District Court of Wyoming, arguing that the regulation is a vast overreach of the U.S. Department of the Interior’s Regulatory Authority.
IADC Comments on Federal Offshore Leasing Program, Expresses Disappointment with Exclusion of Arctic
On 18 November, in response to the release of the U.S. Department of the Interior’s 2017-2022 Outer Continental Shelf Oil & Gas Leasing Program, IADC President Jason McFarland issued the following statement:
“By failing to include the Arctic in the 2017-2022 Outer Continental Shelf Leasing Program, the outgoing Administration has proven that it is not interested in growing an industry that provides both jobs and economic benefits for all Americans. IADC members are disappointed that all areas outside of the Gulf of Mexico are excluded from the plan, as it signals a missed opportunity to supply more jobs and strengthen energy independence for the U.S.”
“According to the US Geological Survey, the Arctic is believed to contain 13% of the world’s yet to be found oil and 30% of the yet to be found gas. Arctic reserves are estimated at more 90 billion barrels of oil and 1,669 trillion cubic feet of natural gas. It’s also important to note that Arctic drilling has been successfully undertaken by several Arctic coastal nations, including Canada, Norway and Russia.”
“The International Energy Agency has forecasted that oil demand is expected to continue to grow until at least 2040. Therefore, U.S. offshore areas must be made available to meet this demand. Most importantly, the U.S. requires an energy policy that facilitates robust energy exploration and production, which ultimately fuels the economy. This 5-year plan is disappointing, as the Interior Department had an opportunity to assist in growing the U.S. economy, yet chose to do the opposite.”
IADC Launches Accreditation Program for Rigger and Crane Operator Training
IADC recently launched the Crane-Rigger Training and Assessment accreditation program, which offers a training standard that aligns with similar international standards while offering the support and credibility of accreditation. Included in the new program are curricula for basic rigging and crane operation.
The program was developed by members of IADC’s Workforce Development Committee, comprising representatives from drilling contractors, operators, training providers and other stakeholder companies.
The goal of IADC’s Crane-Rigger Training and Assessment is to provide a robust program through which training providers can be accredited and audited, which will lead to safer operations. The program is a globally-minded, affordable accreditation which aligns with, and surpasses, the API RP 2D standard.
Crane and rigging experts worked collaboratively with IADC to develop curricula and delivery requirements for the new program, which includes the following:
- Requirements for practical exercises, hardware, and equipment
- Resources to facilitate the standardization of content delivery
- Instructor qualification and assessment requirements
- Standardized skills assessments
- Criteria for content and delivery of knowledge assessments
- Content applicable to both onshore and offshore operations
- A framework for offering consistent, verifiable quality of training
- Crane operations coursework that can be customized by crane type (i.e., mechanical and non-mechanical crane types)
“Development of this program was a long process involving dozens of stakeholders who each brought to the table a unique perspective in rigging and crane operations, both onshore and offshore,” said Patty Tydings, IADC’s Competence and Workforce Development Specialist. “Members of IADC’s Workforce Development Committee serve as the program’s ultimate decision-makers to ensure that the training modules and performance objectives are appropriate and comprehensive and that the accreditation criteria promote quality and consistency.”
For more information about the IADC Crane-Rigger Training and Assessment accreditation program, please email firstname.lastname@example.org.
U.S. Senate Rejects American Energy and Conservation Act of 2016
On 17 November, the U.S. Senate rejected a motion to proceed on the American Energy and Conservation Act of 2016. The Act, proposed by Senator Bill Cassidy and colleagues, would enhance revenue sharing programs for states that host energy production activities off their shores and within their borders.
On 15 November, IADC, along with seven other industry associations, submitted a letter to U.S. Senate Majority Leader Mitch McConnell and U.S. Senate Democratic Leader Harry Reid in support of the legislation.
The letter noted, “Federal-state revenue sharing programs are vitally important to states supporting energy development. States that play host to energy production supply our country’s energy needs and the revenue that has been shared to date allows these states to fund essential state programs, benefiting a broad range of initiatives including transportation, infrastructure improvements, coastal rehabilitation, and education, among others. Support for federal-state revenue sharing programs is broad and crosses party lines with support from Governors, state legislatures, local governments and communities.”
To read the letter in full, please visit IADC’s website.
OSHA Issues Final Rule on Walking-Working Surfaces Standards
On 17 November, the U.S. Department of Labor’s Occupational Safety and Health Administration issued a final rule to update its general industry Walking-Working Surfaces standards specific to slip, trip and fall hazards. The rule also includes a new section under the general industry Personal Protective Equipment standards that establishes employer requirements for using personal fall protection systems.
The rule was published in the 18 November Federal Register, and will become effective 60 days after the publication.
For more information, please visit OSHA’s website.
American Bureau of Shipping Publishes New Guidance
The American Bureau of Shipping (ABS) has published a new guidance on Survey and Inspection of Jacking Systems. The purpose of the Guide is to establish minimum requirements for inspection of Rack and Pinion jacking gear at Special Periodical Survey of Hull for Self-Elevating Drilling Units for consistent application of the MODU Rule requirement.
For more information, please visit the ABS website.
DNV GL Issues Guidance on Updating Risk Assessments
DNV GL recently announced the availability of DNVGL-RP-G107, Efficient Updating of Risk Assessments. The objective of the Recommended Practice is to serve as a guideline:
- For a systematic and efficient approach to risk assessment updates by determining which parts of the basis are still valid and where important changes have occurred.
- For identifying the variables and uncertain parameters that alone, or in combination, can have an impact on the risk level, and for discovering how these can be controlled and measured.
The RP focuses on recommendations for updating risk assessments during the operational phase of a facility by assessing the effect of changes in the risk assessment basis, using a combination of qualitative and quantitative methods to deliver the decision basis.
To access the Recommended Practice document, please visit the DNV GL website.
IPIECA Issues New Report Exploring Low-Emissions Pathways
IPIECA, the global oil and gas industry association for environmental and social issues, recently published a new report, Exploring Low-Emissions Pathways: Advancing the Paris Puzzle. The report provides an oil and gas industry perspective on the common elements and enablers of pathways to meet a low-emissions future.
The report can be accessed via IPIECA’s website.
IADC Drilling Matters Multimedia Educational Website Now Live
IADC recently launched the first phase of Drilling Matters, a new website to inform, educate and dispel misconceptions about the oil and gas industry.
Sensing a void in educational resources for people with little knowledge of the oil and gas industry, IADC began developing Drilling Matters in 2015 with help from many industry partners. The result is a multimedia website that provides an in-depth and well-rounded look at the oil and gas industry.
Drilling Matters is divided into three sections:
- Who Needs Us and Why: Energy poverty in the 21st Century and the role of the energy industry
- What We Do and How: Meet the drilling rig, rig systems and the people who operate them
- What We Provide: How oil and gas extend life expectancy and promote economic growth
Each section contains one or more modules, which cover various aspects of each of the umbrella topics. Modules contain videos and interactive content, along with links to further references.
“This initial launch is a major milestone achieved only through great teamwork by the generous cooperation of many IADC members and our staff. The videos, photographs and interviews provided by our members were indispensable,” said Mike Killalea, IADC Group Vice President/Publisher. “During development, it was important to us that each of the modules contain language and explanations that are easy to understand for anyone who visits the website. A member of the public, a legislator or regulator, and members of the industry can each find value in the information contained in Drilling Matters.”
IADC will continue to add modules to the Drilling Matters throughout the fall. Future modules will provide information on the oil and gas industry’s positive impact on the economy and jobs, detail the who’s who in the drilling business, give a real-world view of life on the rig, and provide an in-depth look at deepwater drilling, among other topics.
For the latest safety alerts, visit www.iadc.org/safety-alerts
Alert 15-08: Disabled and non-functional safety devices leads to destruction of derrick board
Alert 15-09: Near miss – dropped six pound sledge hammer
Alert 15-10: Fatality on drill floor
- IADC Critical Issues Middle East 2016 Conference & Exhibition: 13-14 December, Dubai;
- 2017 IADC Health, Safety, Environment & Training Conference & Exhibition: 7-8 February, Houston, Texas;
- 2017 SPE/IADC Drilling Conference & Exhibition: 14-16 March, The Netherlands;
- IADC Drilling HSE&T Asia Pacific 2017 Conference & Exhibition: 22-23 March, Kuala Lumpur
Rigs Receive ISP Certificates
For certificates received since last LTI (in years):
New IADC Members
IADC welcomes 7 new members:
DRILLBITS Volume 26, Number 11
Tom Burke, Chairman • Jason McFarland, President • Amy Rose, Editor
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