DRILLBITS – November 2019
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IADC: Move Forward Not Backward on ANWR, U.S. House Votes to Bar Development
In September, the U.S. House voted, 225 to 193, to advance H.R. 1146, the Arctic Cultural and Coastal Plain Protection Act, legislation that reverses the enacting clause opening the Arctic National Wildlife Refuge (ANWR) in the 2018 Tax Cuts and Jobs Act. In response, IADC President Jason McFarland issued the following statement:
“Today’s vote bans oil and gas leasing and development in and around the coastal plain of the Arctic National Wildlife Refuge (ANWR) in Alaska. These lands, which are presumed to hold more than 10 billion barrels of recoverable oil, can be developed safely and in an environmentally responsible manner. The impact of such activity would no doubt have a huge impact on the Alaskan economy, as well as the U.S. Treasury, bringing jobs to the region along with the drilling royalties these activities generate. IADC supports energy policies that encourage the safe and environmentally sound development of all the nation’s energy resources. With today’s vote, the House took a step backward in promoting U.S. energy production, and another step toward advancing ‘keep it in the ground’ policies.
Results of DRILLERSPAC Campaign
IADC’s DRILLERSPAC ran a fundraising campaign from May 20-June 20 with a goal to raise $50,000. To date, $37,000 has been received from 71 individuals and 13 companies! Thank you for those contributions. In addition, Latshaw Drilling had 43 employees who committed to supporting the PAC. Thank you Trent and Latshaw Drilling!
In the 2018 midterm elections, the IADC DRILLERSPAC supported 14 candidates in Senate and Congressional races, with 13 of those winning their races, a 93% success rate. The next election cycle includes key races in Texas, Louisiana, Oklahoma, Colorado, Wyoming, Mississippi and Alaska, among others, and IADC will again be supporting candidates who have demonstrated a commitment to supporting energy and the drilling industry.
The DRILLERSPAC 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.
Washington D.C. Updates
October brought a whirlwind of activity to the House. With Democrats impeachment proceedings moving along at brusque pace, a slew of hearings was held aimed at collecting testimony from various Administration and intelligence officials. Regarding natural resources and energy issues, the HNR and HSCC committees held a series of hearings examining global climate change, oversight of the oil and gas industry, and eco-friendly workforce development policies. Additionally, the House passed two bills restricting oil and gas development in the Chaco and Grand Canyon areas. On the trade front, House Speaker Nancy Pelosi said recently that negotiations between the Trump administration and Democrats to secure changes to the new North American trade pact are close to wrapping up, stressing that Democrats’ top concern is enforcing the deal.
Essentially the gatekeeper to all legislative issues, Senate Republicans have found themselves at the center of House Democrats impeachment hearing and the surrounding media buzz. Despite increased public pressure, Leader McConnell has signaled that he and other republicans are not prepared to impeach the president. The SENR committee has been relatively quiet as of late, holding a few hearings looking at energy efficiency, the strategic petroleum reserve, and emissions reduction. Despite the House passing two bills exempting the Chaco and Grand Canyon areas from oil and gas development, it remains unlikely that O&G related legislation will see floor time.
On the trade front, Senator Chuck Grassley has begun to apply public pressure on House Speaker Pelosi in attempt to complete the deal.
The White House spent October addressing various domestic and international issues.On the energy front, the President has continued his boisterous rhetoric in support of the oil and gas industry. Early in the month he spoke at a PA refinery where he touted the industry and his plan for American industry dominance. Foreign policy has taken center stage this month as well. The US withdrawal from Syria, bubbling tensions with Iran and Turkey, and new North Korean missile tests are issues that have received significant public pushback, and despite a brief victory with the US killing of ISIS leader Baghdadi, the Administration is stretched on all fronts with no easy end in sight. The ever-present impeachment inquiry is marching along, with the President relying on Senate Republicans to parry Democrats insistence on his removal from office.
Julie Robertson Named 2020 IADC Chair
The IADC Board of Directors has elected Julie J. Robertson as 2020 Chair of the association.
Ms Robertson has served as Chairman, President and CEO of Noble Corp since January 2018.
Previously, she served as Executive Vice President of the company from February 2006 and as Senior Vice President – Administration from July 2001 to February 2006. Ms Robertson also served continuously as Corporate Secretary of Noble from December 1993 until assuming the Chairman’s role in 2018. She also served as Vice President – Administration of Noble Drilling from 1996 to July 2001.
In 1994, Ms Robertson became Vice President – Administration of Noble Drilling Services. From 1989 to 1994, Ms Robertson served consecutively as Manager of Benefits and Director of Human Resources for Noble Drilling Services. Prior to 1989, Ms Robertson served consecutively in the positions of Risk and Benefits Manager and Marketing Services Coordinator for a predecessor subsidiary of Noble, beginning in 1979. She earned a Bachelor of Journalism degree from the University of Texas at Austin and attended the Advanced Management Program at the Harvard School of Business.
Steve Brady Recognized as 2019 IADC Contractor of the Year
Steve Brady, Valaris, was named the 2019 IADC Contractor of the Year during the IADC Annual General Meeting in Austin on 8 November. Mr Brady served as IADC Chairman in 2018, dedicating his term to outreach, competency and advocacy.
The Contractor of the Year award is sponsored by National Oilwell Varco. It was established in 1998 to recognize an individual drilling contractor’s outstanding lifetime achievement in technical innovation, safety, and economic efficiency within the drilling industry. The prestigious industry award is the only one reserved exclusively for drilling contractors. All recipients of the Contractor of the Year award are nominated and selected by other drilling contractors who are IADC members.
Mr. Brady joined Valaris – then Ensco – in 2002 and was appointed to the role of Senior Vice President – Eastern Hemisphere in December 2014. He previously served as Senior Vice President – Western Hemisphere, Vice President – Europe and Mediterranean, General Manager – Middle East and Asia Pacific, and in other leadership positions in the Eastern Hemisphere. Prior to joining Ensco, Mr Brady spent 18 years in various technical and managerial roles for ConocoPhillips in locations around the world.
Mr Brady holds a Bachelor of Science degree in petroleum engineering from Mississippi State University.
Kathy Willingham, Robin Macmillan Recognized with IADC Exemplary Service Awards
During the 2019 IADC Annual General Meeting in Austin, Kathy Willingham, Vice President Human Resources & HSE, Cactus Drilling Company and Robin Macmillan, Sr. Vice President, National Oilwell Varco, were recognized for their contributions to IADC with Exemplary Service Awards.
The awards recognize individuals’ notable for outstanding contributions to the drilling industry and to IADC. Recipients have, during their career, demonstrated their commitment to improving the drilling industry and advancing its safety, training or technology.
Kathy Willingham is Vice President of Human Resources and HSE at Cactus Drilling Company. She has devoted substantially her entire career to the oil and gas industry. In 1981, she began with AnSon Gas Corporation, an E&P company which included Anadarko drilling. With a spin off in 1996 of Anadarko she began her first of startup companies, Bayard Drilling. Following a sellout, she moved back to an E&P company, Continental Resources. However, missing the never-ending turmoil of the drilling business and loving a challenge, Ms. Willingham helped start Nomac Drilling from ground zero to three years. She was recruited in 2003 to help create Cactus Drilling. Beginning with a staff of 30, she helped guide the company through a period of consistent growth, and it is currently the largest independent drilling contractor in the US. She has served as Chairman of the IADC Oklahoma-Texas Panhandle Chapter, and currently serves on the IADC Onshore Advisory Panel.
Robin Macmillan attained a degree in Geology from the University of Leeds in England and started his oilfield career many years ago on a rig in the Rio Grande Valley. Since then, he has worked in many countries including eight years in Latin America. Having joined drill bit company ReedHycalog in 1991, he worked in several sales and management positions including the management of Schlumberger Drilling and Measurements in Canada. He was appointed as President of ReedHycalog in 2008. His current position is Senior Vice President for Business Development at National Oilwell Varco.
Mr Macmillan has published technical papers on drilling automation, drill bit design and managed pressure drilling and holds a patent on drill bit design. He is chairman emeritus of the International Association of Drilling Contractors Advanced Rig Technology committee, has moderated several technical webinars for the Society of Petroleum Engineers and is a member of the International Society of Automation.
DNVGL Releases Maritime Forecast to 2050 3rd Edition
DNVGL recently released its Maritime Forecast to 2050 3rd Edition: Fuel Flexibility Key to Competitiveness in Low-Carbon Shipping Future. The document examines the future of the shipping industry in a rapidly changing global energy landscape. This year’s report focuses on the challenges of reducing the carbon intensity of the global fleet to meet the ambitious targets set by the IMO’s greenhouse gas reduction strategy.
To obtain a full copy of the report, please visit the DNVGL website.
NOPSEMA Issues Guidance Notes
Australian regulator NOPSEMA recently issued a Guidance Note and a draft Guidance Note for those with operations in the region. They include:
Operational Risk Assessment Guidance Note. On 16 October, this guidance note was published to assist operators in developing, implementing and maintaining robust prcoedures to address the degradation of safety elements/processes leading ot increased major accident risk. This guidance note comes to fruition after two rounds of industry feedback and an operational risk assessment workshop that was previously convened. Though voluntary, these measures are intended to be incorporated into a facility’s safety case regime to address concerns such as management of change and associated risk assessments. The note can be found in its entirety on NOPSEMA’s website.
Draft Guidance Note: Powers of Health and Safety Representatives. On 29 October, NOPSEMA issues this notice for comment on its draft of the Powers of Health and Safety Representatives guidance note. It seeks to explain the powers of HSRs under the Offshoer Petroleum and Greenhouse Gas Storage Act 2006 and how HSRs may exercise those powers. It also seeks to assist facility operators and employers meet their legal obligations for HSRs. NOPSEMA encourages all interested stakeholders to have their say prior to the publication of the guidance note. Operators and employers are strongly encouraged to work with their own HSRs to review the guidance note and develop relevant comments as necessary and appropriate. An overview of the draft guidance can be found at NOPSEMA’s website.
UN Hosts Intergovernmental Panel on Climate Change Discussion
In late September, the United Nations hosted the Intergovernmental Panel on Climate Change in Monaco to consider the Special Report on the Ocean and Cyrosphere in a Changing Climate (SROCC). The SROCC was subsequently approved as it provides evidence of the benefits of limiting global warming to the goals set at the 2015 Paris Agreement.
A list of the report documents can be found on the Intergovernmental Panel on Climate Change website.
IADC Student Chapters Established in India, Louisiana State University
IADC recently announced the establishment of new student chapters at the Maharashtra Institute of Technology (MIT) in India and at Louisiana State University (LSU) in the United States.
The first international IADC Student chapter was established at MIT last month. During a presentation to MIT, IADC President Jason McFarland said, “Expanding the student chapter program outside of the U.S. has been a goal since its inception in 2017. To accomplish this goal by establishing a student chapter in India is particularly special, as IADC’s South Central Asia Chapter has long provided exceptional leadership in this region.”
Mr. McFarland went on to thank Mike DuBose, IADC Vice President, International Development for his leadership of the student chapter initiative and Arun Karle, President of Askara Enterprises who has supported IADC and its members in India for 25 years.
IADC Houston Chapter to Host Christmas Gala
The IADC Houston Chapter will host its 3rd annual Christmas Gala on Saturday, 7 December at the Petroleum Club of Houston from 7 p.m. to 12 a.m. The evening’s festivities will include music, caricature artist, door prizes and a special visit from old St. Nick. Last year’s gala raised more than $10,000 for the Houston Chapter’s scholarship fund.
For more information, or to purchase a ticket or table, please contact Scott Gordon at email@example.com.
IADC Brazil Chapter to Host Subsea & Drilling Brazil Conference
The IADC Brazil Chapter is hosting the Subsea & Drilling Brazil Conference on 28 & 29 November at the Sulamerica Expo Center in Rio de Janeiro. This is the first event focused on subsea and drilling to be offered in Brazil. For more information: https://zoomout3.wixsite.com/brazil-conference…
IADC ART DCS Subcommittee to create rig sensor/instrument guidelines through new initiative
The IADC ART Drilling Control Systems (DCS) Subcommittee has kicked off the Rig Sensor Stewardship initiative, which aims to formulate guidelines to ensure sensor and instrument performance. This is an important project due to the massive amounts of data the industry is generating and the need for accurate data to digitalize and automate, said Assaad Mohanna, Vice Chairman of the IADC ART DCS Subcommittee. In this video with DC at the 2019 IADC Advanced Rig Technology Conference in Amsterdam, Mr Mohanna explains the initiative’s relevance and scope, as well as how the guidelines relate to the work done by the API Subcommittee 8 and the Operators Group for Data Quality.
For more information about the project, please visit DrillingContractor.org for an interview with Mr. Mohanna.
DDR Plus V2.0 Released for Final Comment
IADC has issued V2.0 of the DDR Plus for final comment, after receiving and considering wide-ranging input from across the industry over the past eight months since V1.0 was launched earlier this year.
Among the major changes are:
- Main Codes 21, 22 and 23 are now “Other” which can be used for any user-defined operations.
- Nonproductive time was moved from Main Codes to a Sub-Activity Code.
- Run/Retrieve Riser Equipment and “Surface Testing” moved from Main Codes 21/22 to 31/32.
- “Operating Status” moved from Main Code 25 to Main Code 33.
- “Safety” moved from Main Code 26 to Main Code 34.
- “Well Control” moved from Main Code 27 to Main Code 35.
- Thorough vetting and consolidation of subcodes.
IADC paper DDR Plus tour sheets will also be updated by January 2020 to match the electronic IADC codeset. New fields have been added for:
- Spud Date/Time,
- Rig Release Date/Time
- Pause Date/Time
- Resume Date/Time
- TD (Total Depth) Date/Time
- Fuel Used
- Fuel on Hand.
The fields have been slightly re-arranged to group corresponding codes more efficiently together.
The work has been completed by the IADC Drilling Control Systems (DCS) Subcommittee under the purview of the IADC Advanced Rig Technology (ART) Committee. The group aims to keep the DDR Plus as an evergreen document, with annual surveys conducted to identify changes that may be required as the industry and its technologies evolve.
The new codeset and a mockup of the revised print tour sheet can be viewed online at ddrplus.iadc.org. Comments should be submitted no later than 30 November 2019, either via the website or e-mailed to firstname.lastname@example.org.
IADC Bookstore Enhanced and Upgraded
The IADC bookstore recently completed a thorough update and streamlining process to further advance the overall user experience. The print and electronic bookstores are now combined into one store and allow customers to quickly link to the desired choice and format of desired books, contracts, daily drilling reports, and streaming media. Top-selling items, including the 2T6 Drilling Report, the IADC Drilling Manual and the Drillers Knowledge Book, are featured.
IADC has worked with its partners, including Techstreet and Moxie Media, in making the user experience much easier while offering new products and delivery methods. The bookstore will continue adding relevant content for our users and customers over the coming weeks.
Android App for Mission Petrohouse Rolled Out
IADC’s Drilling Matters initiative to educate the public and dispel myths and misconceptions about our industry hit the ground running in 2019, with the roll out of an Android app for its popular online game Mission Petrohouse.
Mission Petrohouse players steer a retro rocket ship through a home and “zap” everyday products created from petroleum to fill the rocket’s fuel tank. The game tracks the number of items zapped, and provides helpful information about each item.
The new app can be downloaded from Google Play at https://play.google.com/store/apps/details?id=com.iadc.hydrohouse
Drilling Matters is available on line at www.DrillingMatters.org.
For more information about Drilling Matters, contact Amy Rose (email@example.com).
IADC Lexicon Featured Term for November 2019
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:
“Stress Intensity Factor” ( Source: API Standard 2RD, Dynamic Risers for Floating Production Systems, Second Edition, September 2013.):
Term used in fracture mechanics to define the local conditions of stress and strain around a crack tip, in terms of global parameters such as of loads, geometry and crack size
(click the link to read the full definition on the IADC Lexicon.)
Rigs Receive ISP Certificates
For certificates received since last LTI (in years):
New IADC Members
IADC welcomes 10 new members:
DRILLBITS Volume 29, Number 11
Kevin Neveu, Chairman • Jason McFarland, President • Amy Rose, Editor
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