Industry News

 

This Month’s Articles

Sign Up For the DRILLBITS Email Newsletter!

Get DRILLBITS By Email

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.

Drilling Matters can be accessed via www.DrillingMatters.org. IADC also included on the site an appreciation page to recognize those whose contributions made the project possible.

 

IADC Hosts Offshore Oil and Gas Industry Educational Lunch and Learn Event on Capital Hill

On 20 September, IADC hosted an “IADC Offshore Drilling 101” Lunch and Learn in Washington, D.C. to educate Capital Hill staffers on the basics of offshore drilling operations, along with the positive impacts of drilling operations on the U.S. economy.

IADC offshore members who led the Lunch and Learn presentation also visited with several Senators, Members of Congress and their staff while in D.C. to educate them about the offshore drilling industry, it’s goals and successes and to give them a better sense of who IADC’s members are, and what they do.

“In April, IADC onshore members visited the Capital to educate the individuals creating our nation’s energy laws and regulatory policies on onshore drilling operations and hydraulic fracturing. The event was incredibly well received by those in attendance. Thus, we invited IADC offshore members to put together a similar program,” said Elizabeth Craddock, IADC Vice President, Policy, Government and Regulatory Affairs. “During our lunch and learn, and in individuals visits with Members of Congress, Senators and their staff members, we were able to demonstrate how IADC members safely drill offshore for our nation’s oil and natural gas resources that fuel our economy, while also contributing jobs and positive economic impact. Drilling contractors, whether they operate onshore or offshore, have a vital role in the upstream oil and gas industry. We have a compelling story to tell, and in D.C., we found an audience that was willing to listen and understand.”

IADC members who participated include:

Brady Long, Senior Vice President and General Counsel, Transocean Ltd.

James Sanislow, Vice President and Chief Compliance Officer, Noble Drilling Services, Inc.

Steve Schappell, Location Director, Maersk Drilling, USA

Tony Seeliger, Senior Vice President of Operations, Pacific Drilling

Michael Lawson, Vice President, Health, Safety, Environment and Training/Competency, Rowan Companies

 

IADC to Air Virtual Panel Discussion, “Leadership for the Upturn: Are Your People Ready?”

On 19 October, IADC will air a free video webcast, sponsored by The REACH Group, that will feature a discussion exploring key tools to effectively develop tomorrow’s leaders, based on real-world examples in the drilling industry.

Two highly respected drilling CEO’s, along with an expert in leadership development, will discuss how contractors are expected to manage their business effectively with leaders who know how to deliver safe, efficient operations. When the market returns, it will remain extremely competitive, and leaders will need to make the right decisions the first time as there will be little patience for error. The webcast panelists will explore these realities and more.

Panelists:

Thomas Burke, CEO, Rowan Companies Christopher Beckett, CEO, Pacific Drilling Dave Massey, President, The REACH Group Mike Kilallea, Group VP/Publisher, IADC (moderator)

To register for the free webcast, please visit IADC’s website. Those who register will receive a login email on the morning of 19 October to access the Virtual Panel Discussion webcast.

IADC Future Tech Subcommittee is Looking for a Few Good Ideas

The IADC Future Technology Subcommittee is looking for a few good ideas. This ART subcommittee is organizing its next “Spark Tank” to provide technology entrepreneurs an opportunity to pitch their products and ideas to a panel of drilling contractors and operators.

If you’d like feedback on an idea, product or service, we are interested in hearing from you.

The Q3 2016 Future Technology “Spark Tank” is scheduled for 09.00-11.30 (CDT) on Thursday, 27 October, at IADC headquarters.

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.

To submit an idea for the subcommittee to consider for the Spark Tank, please complete the online form at http://www.iadc.org/abstract-future-technology-sc-spark-tank.

For more information about the IADC Future Technology Subcommittee or other initiatives of the Advanced Rig Technology (ART) Committee, contact Mike Killalea, This email address is being protected from spambots. You need JavaScript enabled to view it..

Oil and Natural Gas Subsector Coordinating Council Hosts Educational Meeting

On Friday, 23 September, the Oil and Natural Gas Subsector Coordinating Council (ONG-SCC) hosted a 2-hour educational session for the U.S. Department of Energy and other agency staff who are involved in or interested in how the oil and natural gas industry works and how it prepares for and responds to weather-related events.

The session included a brief overview of how the industry works – from production to distribution – and addressed how various elements of the operations across the oil and natural gas supply chain prepare for response. Presenters highlighted potential challenges, the ways in which industry and government can work together to limit impacts to the public, and the differences between oil and natural gas when weather events impact operations.

The educational meeting was particularly timely in light of NOAA’s increased prediction for the potential number of named storms in the 2016 hurricane season, as industry, along with Federal, state and local government agencies, consider what is needed to ensure impacts are understood and can be responded to efficiently and effectively.

Industry representatives from all aspects of the oil and natural gas supply chain were present and available for questions during and after the session presentations. Melissa Mejias, IADC Legislative Analyst, presented on behalf of IADC.

The ONG-SCC will host another DOE educational session, “Understanding the Oil and Natural Gas Industry: Regulatory Framework” at a to be decided date later this year. For more information about the ONG-SCC please visit the website. And for information about upcoming meetings, please contact Melissa Mejias at This email address is being protected from spambots. You need JavaScript enabled to view it..

National Academies of Sciences, Engineering, and Medicine to Host Workshop, “Strengthening the Safety Culture of the Offshore Oil and Gas Industry”

The National Academies of Sciences, Engineering, and Medicine will host a workshop on 12 October in Houston to discuss the Strengthening the Safety Culture of the Offshore Oil and Gas Industry report.

The main objectives of the workshop are:

To engage BSEE and the members of the offshore oil and gas industry in a discussion about the recommendations contained in the report in order to help identify concrete steps for going forward. To provide the offshore industry with guidance on how to get started or how to continue their efforts for strengthening safety culture.

The free workshop is scheduled from 8:30 a.m. to 1 p.m., and lunch will be provided. Those who wish to attend must register in advance.

To read the Strengthening the Safety Culture of the Offshore Oil and Gas Industry report, please visit The National Academies Press website.

North Sea Offshore Authority Forum Issues Safety Alert

On 30 December 2015, one person was killed and four injured on the drilling rig COSL Innovator as a result of a breaking wave in the Norwegian part of the North Sea. The breaking wave also caused damage to the rig’s accommodation area in the deck box.

Before the incident occurred, COSL Innovator was disconnected from the well as a result of bad weather and was raised to its survival condition.

At the time of the incident, COSL Innovator’s superstructure was not dimensioned to resist horizontal wave loads, even though the unit did not have a positive air gap (gap between the underside of the lowest deck and the highest wave crest).

The incident has led the North Sea Offshore Authority Forum to issue a safety alert highlighting the fact that the superstructure should be dimensioned to resist not only vertical but also horizontal wave loads in the case of negative air gap.

Please visit the Petroleum Safety Authority’s website for the full investigation report.

Pennsylvania Expected to Finalize “Environmental Protection Performance Standards at Oil and Gas Well Sites” this Fall

The Pennsylvania Department of Environmental Protection is expected to finalize its Environmental Protection Performance Standards at Oil and Gas Well Sites rulemaking this fall, after a 5-year development process.

The rulemaking represents the first update to rules governing surface activities associated with the development of unconventional wells. The amendments applicable to conventional oil and gas wells were withdrawn at the direction of the Office of Attorney General in response to the passage of Act 52 of 2016. The new regulations will address surface activities at unconventional well sites, and center on five core areas. The amendments improve protection of water resources; add public resources considerations; protect public health and safety; address landowner concerns; and enhance transparency and improve data management.

For more information, please visit the Pennsylvania Department of Environmental Protection website.

Railroad Commission of Texas Publishes August Drilling Permit and Completion Statistics

The Railroad Commission of Texas (RRC) recently issued statistics on drilling permits and completions for the month of August, 2016.

The RRC issued a total of 660 original drilling permits in the month of August, compared to 864 in August of 2015. The August total included 512 permits to drill new oil or gas wells, eight to re-enter plugged well bores and 140 for re-completions of existing well bores. The breakdown of well types for those permits issued in August 2016 included 203 oil, 24 gas, 392 oil or gas, 26 injection, zero service and 15 other permits.

Also in August 2016, the RRC processed 545 oil, 223 gas, 46 injection and 8 other completions, compared to 1,113 oil, 172 gas, 36 injection and 11 other completions in August 2015. Total well completions for the 2016 year-to-date are 8,107, down from 14,665 recorded during the same period in 2015.

According to Baker Hughes Inc., the Texas rig count as of September 9 was 245, representing about 48 percent of all active rigs in the U.S.

For additional drilling permit and completion statistics, visit the Commission’s website.

OSHA Publishes New Guidelines for Whistleblower Settlements

OSHA recently issued new guidelines for approving settlements between employers and employees in whistleblower cases to ensure that they do not contain terms that could be interpreted to restrict future whistleblowing.

The new guidelines respond to a March 2015 petition for rulemaking from the Government Accountability Project, which asked OSHA to clarify that it will not approve settlements that discourage whistleblowing.

In particular, the updated guidelines make clear that OSHA will not approve a settlement that contains a provision that restricts the employee’s right to provide information to the government or requires the employee to notify the employer before or after communicating with the government. OSHA also will not approve an agreement that requires a whistleblower to waive his or her right to receive a monetary award from a government-administered whistleblower program or to pay the employer a portion of such an award.

More information can be found via OSHA’s website.

OSHA Joins Health Canada to Develop 2016-2017 Workplace Chemicals Work Plan

The Occupational Safety and Health Administration (OSHA) and Health Canada, through the Regulatory Cooperation Council, have jointly developed a 2016-2017 Workplace Chemicals Work Plan. The purpose of the work plan is to ensure that current and future requirements for classifying and communicating the hazards of workplace chemicals will be acceptable in the U.S. and Canada without reducing worker safety.

The work plan involves activities that support:

Developing materials to assist stakeholders with implementing the Globally Harmonized System of Classification and Labelling (GHS) and understanding the interpretation of technical issues and requirements in Canada and the U.S.; Coordinating opinions on issues that arise from international discussions on the GHS; and Maintaining alignment between the U.S. and Canadian requirements for implementing the GHS when revisions are made.

OSHA signed a Memorandum of Understanding with Canada’s Department of Health in 2013. The goal of the MOU is to devise a system, accepted by both countries, that allows the use of one label and one safety data sheet.

OSHA aligned its Hazard Communication Standard with the GHS in March 2012 to provide a common, understandable approach to classifying chemicals and communicating hazard information on labels and safety data sheets. OSHA’s Hazard Communication Web page includes links to the standard, frequently asked questions and guidance materials.

 

Accreditation Updates

RigPASS

BEIJING XINBO INTERNATIONAL PETROLEUM TECHNICAL SERVICE COMPANY
(CONDITIONAL), CHINA; MAERSK TRAINING, INC., USA; SEGURIDAD AMBIENTE CALIDAD Y SALUD CONSULTORES S.A.S. (CONDITIONAL), MEXICO

DIT

Aset International Oil & Gas Training Academy, Aberdeen, United Kingdom;
International Petroleum College, Islamabad 44000, Pakistan; PCI Bahrain, Manama, Bahrain

WellSharp

G&C Advisory & Consulting, Mexico;
Halliburton  Energy Services PM, Houston, Texas

Safety Alerts

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

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

COSL Drilling Pan Pacific LTd.: COSL Force (2); COSL Strike (7) Songa Offshore: Songa Dee (1); Songa Delta (3); Songa Equinox (1); Weatherford Drilling Int’l: Rig 144 (15); Rig 147 (4); Rig 150 (3); Rig 155 (17); Rig 811 (5); Rig 875 (2); Rig 891 (2); Rig 892 (2); Rig 893 (2); Algeria Support Team (1); Kuwait Support Team (1). For certificates received since last recordable incident (in years):
Weatherford Drilling Int’l: Rig 147 (4); Rig 808 (1); Rig 811 (1); Rig 841 (1); Rig 844 (2); Rig 875 (1); Rig 892 (2); Algeria Support Team (1); Egypt Support Team (1); Kuwait Support Team (1).
New IADC Members IADC welcomes 8 new members:
COVAR APPLIED TECHNOLOGIES, INC., MCLEAN, VA, USA;
ENERGY ASIA GROUP PRIVATE LIMITED, SINGAPORE; HEBEI GN SOLIDS CONTROL CO., LTD., LANGFANG, HEBEI, CHINA; SIGMA DRILLING TECHNOLOGIES, LLC, SACHSE, TEXAS, USA; SPARKCOGNITION, AUSTIN, TEXAS, USA; TOCANTINS ADVOGADOS, CENTRE, RIO DE JANEIRO, BRAZIL; LLC DRILLING ENERGETIC COMPANY “TECHNICS”, POLTAVA, UKRAINE; SAVANNA DRILLING, ODESSA, TEXAS, USA DRILLBITS Volume 26, Number 9
Tom Burke, 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 This email address is being protected from spambots. You need JavaScript enabled to view it..

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 This email address is being protected from spambots. You need JavaScript enabled to view it..

 

This Month’s Articles

Sign Up For the DRILLBITS Email Newsletter!

Get DRILLBITS By Email

Siv Hilde Houmb represents IADC Cybersecurity Subcommittee at meeting to discuss Cyber Threat to Maritime Transportation Systems

On 19-20 July, the Maritime Industry National Maritime Interagency Group (NIAG) and the Company Security Officer (CSO) hosted a meeting at the Johns Hopkins University Applied Physics Laboratory in Maryland to discuss the Cyber Threat to Maritime Transportation Systems.

The meeting was arranged between the National Maritime Intelligence-Integration Office (NIAG), the Maritime Administration (MARAD), the US Department of Transportation (USDOT) and the US Coast Guard.

The event was organized to highlight a sampling of potential cyber threats that target the maritime and offshore industry and included discussion on high impact vulnerabilities, prevention and remedies. It provided an opportunity for maritime and offshore industry representatives to engage with maritime stakeholders within the US Federal interagency and to articulate issues.

Dr Siv Hilde Houmb, chairwoman of the IADC Cybersecurity Subcommittee and Chief Technology Officer, Secure-NOK, presented on behalf of IADC, detailing the planned 2016-2017 work plan of the subcommittee, alongside presenters from U.S. government agencies and other members within the maritime and offshore industry sector.

The IADC Cybersecurity Subcommittee will host it’s next meeting on Thursday, 1 September at 9:30 a.m. in Houston. For more information on the subcommittee, please visit the IADC Website. To access the recently released IADC Guidelines for Assessing and Managing Cybersecurity Risks to Drilling Assets, please visit the IADC Bookstore.

US Bureau of Ocean Energy Management Issues Report on Deepwater Gulf of Mexico

The US Bureau of Ocean Energy Management recently produced a new report, “Deepwater Gulf of Mexico December 31, 2014”, which provides more than 99 pages of page on oil and gas activities in the Gulf of Mexico. The report, which contains information pertaining not only to deepwater, is the 10th report from BOEM highlighting oil and gas activities in the Gulf of Mexico, and the first since 2009.

BOEM noted, “Because of the importance of oil and gas development in the deepwater Gulf of Mexico, BOEM has resumed this systemic compilation of information and statistics from deepwater activities, from leasing through production.”

The report can be downloaded from BOEM’s website.

Industry Association’s Detail Concerns with Expansion of the Flower Garden Banks National Marine Sanctuary Boundaries in Letter to NOAA

On 19 August, IADC, along with API, NOIA, IPAA, IAGC and the OOC submitted comments to the US National Oceanographic and Atmospheric Administration (NOAA) on the Draft Environmental Impact Statement for the proposed actions of boundary expansion and application of existing regulations and management plan actions to new geographic areas of the Flower Garden Banks National Marine Sanctuary.

The letter details several critical areas of concern with the draft, which was included in the June 10, 2016 Federal Register. The letter goes on to conclude that, “the Associations do not support an expansion of the Flower Garden Banks National Marine Sanctuary at this time due to the lack of scientific basis for benefits, expected high negative effects on the economy and energy production, and lack of justification to satisfy statutory requirements under the National Marine Sanctuaries Act. NOAA has not conducted adequate analyses as required under NEPA, has failed to follow an open, transparent process, and has disregarded the reasonable expansion recommendations put forth by the Sanctuary Advisory Council, which included significant stakeholder input. The Associations urge NOAA to cease work on draft environmental impact statement, define a more reasonable set of alternatives, work with BOEM and industry stakeholders to more fully analyze the impacts of these new alternatives, and re-issue a draft that meets National Environmental Policy Act requirements and allows for informed comment and decision-making.”

For more information, please see the 10 June, 2016 Federal Register.

IADC Future Tech Subcommittee is Looking for a Few Good Ideas

The IADC Future Technology Subcommittee is looking for a few good ideas. This ART subcommittee is organizing its next “Spark Tank” to provide technology entrepreneurs an opportunity to pitch their products and ideas to a panel of drilling contractors and operators.

If you’d like feedback on an idea, product or service, we are interested in hearing from you.

The Q3 2016 Future Technology “Spark Tank” is scheduled for 09.00-11.30 (CDT) on Thursday, 27 October, at IADC headquarters.

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.

To submit an idea for the subcommittee to consider for the Spark Tank, please complete the online form at http://www.iadc.org/abstract-future-technology-sc-spark-tank.

For more information about the IADC Future Technology Subcommittee or other initiatives of the Advanced Rig Technology (ART) Committee, contact Mike Killalea, This email address is being protected from spambots. You need JavaScript enabled to view it..

Transportation Research Board to Host Workshop to Discuss Final Report from the Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations

The Transportation Research Board, part of the National Academies of Sciences, Engineering and Medicine, will host a workshop on 22 September in Houston to communicate the findings and recommendations of the Committee on the Application of Real-Time Monitoring of Offshore Oil and Gas Operations final report.

The RTM Final Report Dissemination Workshop, sponsored by the Gulf Research Program, will be held at the JW Marriott Houston, from 7:30 a.m. to 5 p.m.

For more information, including an agenda, and to register for the free workshop, please visit the Dissemination Workshop registration site.

The Committee’s Final Report can be accessed via the Transportation Research Board website.

BOEM Hosts First Live-Streamed Gulf of Mexico Lease Sale

On 24 August, the US Bureau of Ocean Energy Management hosted it’s first live-streamed lease sale for offshore oil and gas drilling. For Sale 248, the agency received 24 individual bids totaling slightly more than $18 million from three companies, Exxon, BP and BHP. The 24 tracts covering 138,240 acres that received bids made up less than 1 percent of the 23,778,011 acres that were available.

The auction was the eleventh Gulf of Mexico offshore sale and the final one for the Western Planning Area under the Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017. The sale builds on the first ten sales in the current Five Year Program, which offered more than 60 million acres and netted nearly $3 billion for American taxpayers.

Sale 248 included approximately 4,399 blocks, located from nine to 250 nautical miles offshore, in water depths ranging from 16 to more than 10,975 feet (5 to 3,340 meters). As a result of offering the area for lease, BOEM estimated a range of economically recoverable hydrocarbons to be discovered and produced of 116 to 200 million barrels of oil and 538 to 938 billion cubic feet of natural gas.

For more information about Western Planning Area Lease Sale 248, please visit BOEM’s website.

2017 DC Editorial Calendar, Media Kit, Now Available

The 2017 media kit for Drilling Contractor and other key IADC communication tools, showing both editorial and advertising opportunities, is available on line at http://www.drillingcontractor.org/mediakit.

The 2017 media kit details the editorial topics covered in each of DC’s six issues next year, as well as information about IADC.org, DrillingContractor.org, eNews from DrillingContractor.org, DrillBits, the 2017 IADC Membership Directory, and more.

The media kit contains information on the very strong web statistics for all IADC electronic products, which uniformly outperform Internet averages.

“2016 is a difficult year, to put it mildly, and DC is sensitive to industry realities,” remarked Mike Killalea, Group VP/Publisher. “That’s why DC is keeping its prices low for 2017, the fourth consecutive year without raising rates on our flagship Drilling Contractor.

“We are focusing on adding value for our clients,” he added. “This year, we have greatly expanded advertiser reach for those advertising on any of DrillingContractor.org’s eight microsites.

Each of the highly focused microsites covers one of eight areas — drilling rigs and automation, innovating while drilling (IWD), onshore advances, completing the well, IADC initiatives and regulatory challenges, drilling it safely, global and regional markets, and the offshore frontier.

Each microsite landing page features only one advertiser. That company’s advert will appear on all landing pages for that specific microsite. In addition, it will appear on all articles linked to any of the eight microsites (banner will rotate with up to seven other adverts). With 2,400 microsite-linked articles on DrillingContractor.org, that’s a lot of exposure.

The media kit also discusses IADC’s successful video panel discussions, which provides high visibility and enormous added value.

For more information, contact Mike Killalea at This email address is being protected from spambots. You need JavaScript enabled to view it. or a local sales representative.

IADC DEC Tech Forum Studies “Barriers in Well Control”

Maintaining proper well control is the drilling industry’s single most important responsibility. The 7 September Technology Forum organized by the IADC Drilling Engineers Committee will feature cutting-edge presentations exploring the most effective means of assuring robust well control.

The tech forum will be graciously hosted by ABS at its facility at 15011 Katy Freeway, Suite 100 (conference room 101), Houston, TX 77094.

The event will begin 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 control. The morning concludes with a light lunch, sponsored by ABS. See the complete schedule below.

To register, go to http://www.iadc.org/event/iadc-dec-technology-forum-8/.

08.00   Coffee/Business Cards

08.25   Welcome & Agenda Review

08.30   JIP Updates:

08.30   DEC-1: “Drilling Systems Automation (DSA) Roadmap”, Robin Macmillan, NOV

08.40   DEC-2: “Decision Support for Dynamic Barrier Management”, Amar Ahluwalia, DNV-GL

08.50   “Mud and Gas Handling: Conceptual Design”, Brad Smolen, Director, BP Gulf of Mexico Region, & Charlie Holt,  Senior Technical Specialist, Well Control, BP Global Wells Organization, BP

09.20   “MPD System Optimized for Operation with Conventional Primary Barrier”, Brian Piccolo, Pumped Riser System Project Manager, Managed Pressure Operations

09.50   ”Key Measurements for Confirming Well Control Barriers”, Bob Pilko, Strategic Relationships Director, Blade Energy Partners

10.20-10.35     Break

10.35   “RTD and CSD: A Better Compliance Path with BSEE’s Well Control Rules?”, Robert Ziegler, Global Director, Well Control Systems, Weatherford Ltd.

11.05   “Development of a Subsea Annular Flowmeter for EKD Application”, Bob Judge, Director, Product Management, GE Oil & Gas

11.35   “Intersection of MPD and Well Control”, Blaine Dow, Drilling Engineering, Marketing and Technology Manager, MI-SWACO, A Schlumberger Company

12.05   Lunch & Adjournment

For more information on the Drilling Engineers Committee, contact Mike Killalea, This email address is being protected from spambots. You need JavaScript enabled to view it..

Updated IADC Safety Posters Available for Purchase

IADC recently updated its Safety Posters, offering a complete set of 10 full color posters to deliver key safety messages and enhance worker safety awareness on the job. Safety posters on Anti-Drugs, Zero Incidents, Lock-out Tag-out; H2S Warning; Eye Protection; No Phone Zone, Extinguishers, Hearing Protection, Dehydration an Employees Only are included in the set. IADC Safety Posters can be purchased through the IADC Bookstore.

BSEE Hosts Well Control Implementation Workshop

On 17 August, IADC Vice President, Policy, Government and Regulatory Affairs Alan Spackman attended a Well Control Rule Implementation Workshop in Houston hosted by the US Bureau of Safety and Environmental Enforcement (BSEE). Key provisions and implementation dates for the rule were presented, along with information regarding the Guidance, or interpretations, of the rule. BSEE continues to post guidance as it is developed.

The Guidance can be accessed via BSEE’s website. For questions regarding interpretation of the rule, submit in writing to This email address is being protected from spambots. You need JavaScript enabled to view it.

API Opens Ballot on Specification for Marine Drilling Risers

API has opened a ballot for the next edition of API Spec.16F, Specification for Marine Drilling Riser Equipment, 2nd Edition. An associated ballot has been issued for the withdrawal of API Spec.16R, Specification for Marine Drilling Riser Couplings, 1st Edition. Both ballots close on 6 October 2016, and can be accessed via API’s website.

The API Ballot system can be accessed as a guest (non-voter) in order to view or provide comments on the draft standard.

 

Accreditation Updates

RigPASS

BEIJING XINBO INTERNATIONAL PETROLEUM TECHNICAL SERVICE COMPANY
(CONDITIONAL), CHINA; MAERSK TRAINING, INC., USA; SEGURIDAD AMBIENTE CALIDAD Y SALUD CONSULTORES S.A.S. (CONDITIONAL), MEXICO

DIT

Entrac, Basra, Iraq; Institute of Engineering and Information Technologies KBTU, Almaty Region, Kazakhstan; Next-A Schlumberger Company, Dubai, Saudi Arabia

WellSharp

G&C Advisory & Consulting, Mexico;
Halliburton  Energy Services PM, Houston, Texas

 

Safety Alerts

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

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Energy Drilling Company: Rig 7 (3);  Frigstad Offshore: Frigstad Shekou (1); Japan Drilling Co. Ltd.: Hakuryu-5 (6); Hakuryu-10 (5); Sagadril-2 (4); PV Drilling: PV Drilling I (9). For certificates received since last recordable incident (in years):
Japan Drilling Co. Ltd.: Hakuryu-5 (1); Hakuryu-10 (4); Hakuryu-11 (1); Naga-1 (2); Sagadril-2 (4).
New IADC Members IADC welcomes 14 new members:
ASAP FLUIDS PVT LTD, VIKHROLI (WEST), MAHARASHTRA, INDIA;
BEN LINE AGENCIES, SOUTHPOINT, SINGAPORE; BRC INTERNATIONAL LLC, BAYTOWN, TEXAS, USA; CHANNELS OF KNOWLEDGE TRAINING CENTER, AL-KHOBAR, EASTERN PROVINCE, SAUDI ARABIA; DEVICE MAGIC, RALEIGH, NORTH CAROLINA, USA; LEI, INC, HAMMOND, LOUISIANA, USA; PROFESSIONAL PHYSICAL THERAPY, INC, SANFORD, FLORIDA, USA; RAS TRAINING, MUANG SURIN, SURIN, THAILAND; RYNO DRILLING & ENERGY SERVICES INTERNATIONAL LTD, PANAMA CITY, PANAMA; SHANDONG DESHUNYUAN PETRO SCI & TECH CO LTD, DONGYING CITY, SHANDONG PROVINCE, CHINA; SHEENSTONE (SHENZHEN) OIL TOOLS CO, LTD, SHENZHEN, GUANGDONG, CHINA; SINOPEC OFFSHORE OILFIELD SERVICES COMPANY SHANGHAI DRILLING DIVISION, PUDONG, SHANGHAI, CHINA; SISTEMAS INTEGRALES DE COMPRESION SA DE CV, VERACRUZ, MEXICO; TOP GUN OILFIELD TRAINING CENTER, STOCKDALE, TEXAS, USA DRILLBITS Volume 26, Number 8
Tom Burke, 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 This email address is being protected from spambots. You need JavaScript enabled to view it..

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 This email address is being protected from spambots. You need JavaScript enabled to view it..

 

This Month’s Articles

Sign Up For the DRILLBITS Email Newsletter!

Get DRILLBITS By Email

U.S. House Interior Appropriations Act Recognizes Energy Industry’s Economic Contribution

In response to the passage of H.R. 5538, the Interior Appropriations Act on 14 July by the U.S. House of Representatives, IADC President Jason McFarland issued the following statement:

“The passage of the Interior Appropriations Act with robust support for oil and gas provisions indicates that House members recognize the tremendous role the energy sector plays in ensuring America’s economic stability. IADC is pleased that the $32 billion measure, which will fund the Interior Department, EPA and other related agencies in fiscal year 2017, contains language that is supportive of oil and gas activities.

“Passage of several amendments restricting the Department of Interior from moving forward on several recent harmful regulations including BSEE’s Well Control Rule, arctic regulations, financial assurance, venting and flaring and methane regulations, and the BLM’s hydraulic fracturing rule is a recognition that imposing costly, prescriptive and duplicative regulations is unnecessary and impedes economic development.”

“The approval of this bill is an important step forward in ensuring that oil and gas regulations are fair and sensible. IADC thanks those House members who voted in support of the energy industry, and for the leadership of those Members who proposed amendments to scale back these harmful regulations to help ensure America’s continued energy renaissance.”

Specifically, approved amendments that were supported by IADC include:

#13 – Prohibits funds to be used to remove 3 Arctic Sales from the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Program – Continued Arctic leasing is important to US energy and national security. The proposed lease sales should be retained in the 2017-2022 Five Year Leasing Program. http://amendments-rules.house.gov/amendments/RedoDY134711161119441944.pdf #5 – Ensures that no money is permitted for the implementation of the Well Control Rule – Given the uncertainty with the rule and the fact that BSEE still has not responded to necessary questions for clarification, the rule is not ready to be implemented on its July 28thimplementation date so BSEE needs more time. http://amendments-rules.house.gov/amendments/BOUSTA_071_xml711161551485148.pdf #4 – Prohibits the Secretary of the Interior to implement, administer, or enforce any rule or guidance substantially similar to the proposed guidance that the Bureau of Ocean Energy Management made available for public comment on September 22, 2015, regarding financial assurances for oil and gas operations on the Outer Continental Shelf. – The changes proposed and expected by BOEM are not necessary to ensure financial assurances and will make it impossible for a number of entities to explore and produce U.S. oil and natural gas. http://amendments-rules.house.gov/amendments/BOUSTA_072_xml71116155207527.pdf #37 – Prohibits funds to be used to finalize, implement, or enforce new regulations on offshore Arctic energy exploration and development. – The final DOI Arctic rules will continue to stifle offshore oil and natural gas production and certain requirements may not improve safety and in fact may inhibit innovation and technological advancements. http://amendments-rules.house.gov/amendments/YoungAK003761618070878.pdf #44 – Prohibits funding from being used to implement, administer, or enforce the Obama administration’s National Ocean Policy. – The National Ocean Policy was created by an Executive Order to circumvent Congress which has voted again and again opposing the idea of an Ocean Policy which operates outside of governing federal statutes passed into law by the Congress. http://amendments-rules.house.gov/amendments/Amdmt176161759455945.pdf #93 – Ensures no funds are provided to finalize or implement the Fish and Wildlife Service rule entitled “Management of Non-Federal Oil and Gas Rights.” – The Proposed Rule, if promulgated in final, would mark a sea change in the management of non-federal oil and gas activities on NWRS lands. However, the authority claimed by the Service to promulgate the proposed regulations is not as broad as the Service assumes so this USFWS proposal needs to be withdrawn.  http://amendments-rules.house.gov/amendments/CRAMND_030_xml78161647274727.pdf

 

Amendments that would have proved harmful to industry, and were defeated, include:

#134 – Provides that none of the funds from this act shall be used to carry out seismic airgun testing or seismic airgun surveys in the OCS Planning Areas located within the EEZ bordering the State of Florida. – Data acquisition through seismic is vital for developing those leases. Seismic surveys have been conducted safely in the U.S. and around the world for decades. http://amendments-rules.house.gov/amendments/MURPFL_051711161645164516.pdf #138 – Would have required that no funds made available by this Act be used to authorize, permit, or conduct geological or geophysical activities in support of oil, gas, or methane hydrate exploration and development in the Atlantic. – Seismic surveys have been conducted safely in the U.S. and around the world for decades. http://amendments-rules.house.gov/amendments/BEYER_080_xml77161018431843.pdf #113 – This amendment would have allowed the BLM to finalize its costly and duplicative venting and flaring methane regulations which it lacks the authority to propose and could discourage production of U.S. oil and natural gas, disrupt U.S. progress reducing emissions, and increase the cost of energy for American consumers.  http://amendments-rules.house.gov/amendments/LUJANM_068_xml77160951405140.pdf #22 – Strikes Section 127 – The OCSLA requires that BOEM demonstrate significant impacts to onshore air quality as a result of offshore activities. It has not done that to date. BOEM is currently undergoing two studies commissioned to inform this rulemaking which won’t be completed until 2017. BOEM should wait on the science and demonstrate the significant impact before proceeding with this premature rulemaking. Section 127 was added by a bipartisan majority during full Committee markup. http://amendments-rules.house.gov/amendments/HUFFCA_175_xml76161631593159.pdf #143 – The final BSEE well control rule will be implemented on July 28, 2016it is still very uncertain how BSEE will implement the drilling margin section of the rule. Given that BSEE has failed to address and answer a number of necessary questions for clarification including how BSEE will implement the drilling margin section of the rule, BSEE is not ready to implement this rule which still has potentially ambiguous and significant impacts on drilling operations.  http://amendments-rules.house.gov/amendments/H5538_001_xml77161130363036.pdf #94 – Would have prohibited funds to be used to process any application for a permit to drill or a permit to modify that would authorize use of hydraulic fracturing or acid well stimulation treatment in the Pacific Outer Continental Shelf. – The amendment is unnecessary as BOEM and BSEE released an environmental assessment on 27 May, 2016, confirming that offshore hydraulic fracturing and acid well stimulation have no significant impact on the environment. These stimulation techniques have been used safely offshore for decades.  http://amendments-rules.house.gov/amendments/CAPPS_04977160932223222.pdf

 

Phase II of BOP JIP Open to New Participants

Phase II of the IOGP/IADC BOP Reliability JIP is planned to kick off in August, opening the project to participation by additional operators and drilling contractors.

Phase I of the JIP began in January 2016, incorporating a BOP failure database originally started by seven offshore drilling contractors in early 2015. Phase I participants include the original seven contractors, 10 operators and three equipment manufacturers.

The project has already produced measureable benefits to participants through the reduction of BOP non-productive time. The database includes OEM reporting requirements per API Standard 53, and discussions are also ongoing with BSEE over how the JIP can assist operators and contractors to comply with the equipment failure provisions of the Well Control Rule.

In addition to operators and offshore contractors with subsea BOPs, Phase II will offer participation to offshore contractors with surface BOPs only and to onshore contractors.

Phase II will provide further opportunities to improve the quality of the database and provide members with access to key learnings through JIP collaboration. New participants will obtain industry-wide BOP defect and failure knowledge which should lead to improved BOP safety and integrity in their own operations.

The original “Group of 7” contractors participating in Phase I are Diamond Offshore, Ensco, Maersk Drilling, Noble, Pacific Drilling, Seadrill, and Transocean. Operator participants are Anadarko, BP, Chevron, CNOOC/Nexen, Kosmos, ExxonMobil, Petrobras, Shell, Statoil, and Total. The equipment manufacturers are Cameron, GE Oil & Gas, and NOV.

For more information, contact Steve Kropla at ext. 211 or This email address is being protected from spambots. You need JavaScript enabled to view it..

IOGP Publishes the Technical Notes to Supplement the Guidelines for the Conduct of Offshore Drilling Hazard Site Surveys

In 2013, IOGP published the Guidelines for the conduct of offshore drilling hazard site surveys, which described practices for conducting geophysical and hydrographic site surveys of proposed offshore drilling locations.

The new Technical Notes publication provides extensive supporting technical information to the Guidelines. It includes background theory on the various phases in delivery of a site survey project, on the vessels and equipment used to acquire site survey data, and on the data processing and interpretation techniques.

The Guidelines and Technical Notes can be downloaded for free from the IOGP Library.

BSEE, BOEM Issue Final Rule on Exploratory Drilling on the OCS Seaward of Alaska

The US Department of Interior, through the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) recently made available in the 15 July Federal Register a notice to establish requirements for exploratory drilling and related operations on the Outer Continental Shelf seaward of the State of Alaska.

This final rule is applicable only to MODUs conducting exploration drilling and focuses solely on the OCS within the Beaufort Sea and Chukchi Sea Planning Areas.

The rule becomes effective 60 days after publication.

Key provisions of the rule include requirements that each operator must:

Develop an integrated operations plan (IOP) that addresses all phases of its proposed Arctic OCS exploration program, and submit the IOP to BOEM at least 90 days in advance of filing its Exploration Plan (EP); Use only equipment or materials that are rated or de-rated for service conditions that can be reasonably expected during operations; Conduct a SEMS audit once per year for every year in which Arctic drilling is conducted. Employ real-time monitoring (RTM) with the capability to transmit data, as it is gathered, to a designated on shore location where it must be stored and monitored by qualified personnel who have the capability for continuous contact with rig personnel; Describe in their APD how they will utilize the relevant provisions of the best practices of API RP 2N Third Edition; Perform a pressure test of the BOP system on a 14-day cycle; Even if the MODU is designed and classed for Arctic conditions, perform an assessment for the specific environmental conditions during the planned window of operations (Equipment on the MODU used to support the drilling operations should also be evaluated for suitability for Arctic conditions, but should be evaluated using the appropriate standards for equipment operating in the Arctic environment, not a structural design standard for the Arctic region.); Capture of all cuttings from operations that utilize petroleum-based mud and, at the discretion of the Regional Supervisor capture of cuttings from operations that utilize water-based mud. Have access to, and the ability to promptly deploy, Source Control and Containment Equipment (SCCE) while drilling below, or working below, the surface casing; Have access to a separate relief rig located in a geographic position to be able to timely drill a relief well to kill and permanently plug an out-of-control well under the conditions expected at the site in the event of a loss of well control; Have the capability to predict, track, report, and respond to ice conditions and adverse weather events; Effectively manages and oversees contractors; and, Develop and implement an Oil Spill Response Plan (OSRP) that is designed and executed in a manner that accounts for the unique Arctic OCS operating environment, and have the necessary equipment, training, and personnel for oil spill response on the Arctic OCS.

More information can be found in the 15 July Federal Register.

U.S. Senators Ask Department of Interior to Withdraw BOEM Air Quality Control, Reporting and Compliance Rule

In a letter to Department of Interior (DOI) Secretary Sally Jewel, 17 U.S. Senators joined together to express concerns with the Bureau of Ocean Energy Management’s (BOEM) proposed rule titled, “Air Quality Control, Reporting, and Compliance”. The Senators asked that the DOI withdraw the proposal since BOEM has thus far failed to demonstrate that offshore activities are impacting onshore air quality.

In written remarks that closely echo industry’s concerns, the letter notes that BOEM has thus far failed to demonstrate that emissions from offshore oil and gas activities have significant effects on onshore air quality.

The Senators specifically noted, “BOEM is currently performing two air modeling studies that were commissioned at a cost of $4 million to taxpayers to inform BOEM as to whether or not any rulemaking was necessary. The results of these studies are not expected until 2017. BOEM must complete these studies to determine which state air quality impacts, if any, should be attributed to OCS authorized activities. If BOEM wishes to obtain a credible accounting of what should be regulated and what the compliance costs will be, the results of these studies would serve as a basis for assessments. Unless and until such studies are completed, peer reviewed and assessed, it is impossible for BOEM to put forth a credible cost benefit analysis.”

Senators who signed on to the letter include: Bill Cassidy (LA); John Cornyn (TX); John Thune (SD); Lisa Murkowski (AK); James M. Inhofe (OK); Thad Cochran (MS); David Vitter (LA); Dan Coats (IN); Jeff Flake (AZ); Roger F. Wicker (MS); M. Michael Rounds (SD); Dan Sullivan (AK); Thom Tillis (NC); Ted Cruz (TX); John Hoeven (ND); Steve Daines (MT) and Jeff Sessions (AL).

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.

The book is published under the auspices of the IADC Technical Publications Committee, and is available for purchase as an eBook or hard copy through the IADC Bookstore.

U.S. Coast Guard Issues Final Rule on Fire Protection, Detection and Extinguishing Equipment

The U.S. Coast Guard recently issued a Final Rule which addresses the carriage, design and approval standards for fire protection, detection, extinguishing equipment, and materials on inspected and uninspected vessels, outer continental shelf facilities, deepwater ports and mobile offshore drilling units.

The final rule is effective on 22 August 2016 and provides for a compliance period for the grandfathering of certain equipment.

The Final Rule can be accessed via the 22 July Federal Register.

IOGP Issues Report 556, Process Safety – Leading Key Performance Indicators

The International Association of Oil and Gas Producers recently issued IOGP Report 556, Process safety, leading key performance indicators as a supplement to IOGP Report 456. The overall aim is to enable companies to establish effective leading indicators that proactively assess the health of barriers that manage the risk of process safety events (PSEs), particularly those that would result in a major incident. Appendix A of the report provides the results of an IOGP survey of member practice regarding use of key indicators.

The report can be accessed via IOGP’s website.

IADC Joins IMCA, ECSA in Letter to European Commission Joint Research Centre Regarding Extension of the Scope of EU Product Safety Legislation

On 27 July, IADC, along with the International Marine Contractors’ Association (IMCA) and the European Community Shipowners’ Associations (ECSA) issued a letter to the European Commission concerning a study the European Commission Joint Research Centre issued in April 2016. That study assessed the impacts of possible amendments to the ATEX, Machinery and Pressure Equipment Directives with respect to equipment installed and used on Mobile Offshore Drilling Units (MODUs) for the offshore oil and gas industry.

In the letter, the Association’s noted that the burden would almost solely be offset on the end users of the equipment, drilling contractors and that it remains undocumented that an extension would have a benefit in respect of major accidents. The letter goes on to note that, “the existing rules and standards for MODU equipment already ensure a very high MODU safety standard. Any extension of EU product safety legislation is unlikely to produce an even higher safety standard or reduce the probability or frequency of major accidents on MODUs.”

Implications noted in the letter include market access and mobility, cost and resources and supply shortages that would be associated with any amendments.

To read the letter in it’s entirety and view the accompanying Annex, which analyzes and highlights certain limitations in the research that in some cases led to unwarranted and unjustified conclusions in the Joint Research Centre report, please visit the IADC Website.

IADC Federal Regulatory Summary for Offshore Operations Now Available

On 1 July, IADC will issue an updated edition of the Federal Regulatory Actions Impacting Offshore Drilling Contractors. Released semi-annually, the report details federal regulatory actions that could impact offshore drilling activities.

The report reflects regulatory activities announced in the Federal Register or other available sources through June 2016.

The full report can be accessed beginning 1 July via the IADC Offshore Division webpage.

 

Accreditation Updates

RigPASS

GLOBAL SAFETY MEXICO, MEXICO (CONDITIONAL); MAVERICK TUBE, LLC, ARGENTINA (CONDITIONAL); TECHMA FZCE, UNITED ARAB EMIRATES (FULL); VYAS WELL CONTROL SCHOOL AND CONSULTANCY SERVICES LLP, INDIA (CONDITIONAL)

DIT

JOEMARINE INSTITUTE OF NAUTICAL STUDIES & RESEARCH COMPANY, NIGERIA

WellSharp

IES International Educational Services for Training & Consultation, Egypt;
Shandong Shengli Vocational College, China

 

Safety Alerts

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

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Energy Drilling Company: Rig 7 (3);  Frigstad Offshore: Frigstad Shekou (1); Japan Drilling Co. Ltd.: Hakuryu-5 (6); Hakuryu-10 (5); Sagadril-2 (4); PV Drilling: PV Drilling I (9). For certificates received since last recordable incident (in years):
Japan Drilling Co. Ltd.: Hakuryu-5 (1); Hakuryu-10 (4); Hakuryu-11 (1); Naga-1 (2); Sagadril-2 (4).
New IADC Members IADC welcomes 9 new members:
ALATAS AMERICAS INC, MANVEL, TEXAS, USA; CHENGDU HUILINGFENG DIAMOND BIT CO., LTD., CHENGDU, SICHUAN, CHINA; DISCOVERY CENTRE FOR PETROLEUM & ENERGY STUDIES, KOCHI, KERALA, INDIA; ENVIROLOGIC SOLUTIONS, TUSCOLA, TEXAS, USA; HASSAN INDUSTRIAL SERVICES, DAMMAM, SAUDI ARABIA; INUKTUN INCOMMAND ROBOTICS, LLC, HOUSTON, TEXAS, USA; KEMBL PETROLEUM TECHNOLOGY, CO., LTD., BEIJING, CHINA; KUWAIT INSTITUTE FOR CAREER DEVELOPMENT, HAWALLI, KUWAIT; MATRIX COMPOSITES & ENGINEERING, HENDERSON, WA, AUSTRALIA DRILLBITS Volume 26, Number 7
Tom Burke, 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 This email address is being protected from spambots. You need JavaScript enabled to view it..

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 This email address is being protected from spambots. You need JavaScript enabled to view it..

 

This Month’s Articles

Sign Up For the DRILLBITS Email Newsletter!

Get DRILLBITS By Email

IADC Members Facilitate Well Control Orientation Seminar for Railroad Commission of Texas

On 25 May, IADC members led an interactive well control orientation seminar for more than 30 field operations staff from the Texas Railroad Commission (RRC).

After working collaboratively on clarifications to the RRC’s Rule 13, IADC’s subject matter experts, including Robert Urbanowski, Precision Drilling, Aaron Mueller, Independence Contract Drilling, and Katy Holst, Patterson-UTI, were asked by the RRC to organize an introductory seminar on the basics of well control for their staff.

The primary purpose of Rule 13 is to protect fresh water and maintain well control. Rule 13 included language that could significantly impact onshore contractors, where the rule would have meant the difference between a contractor moving ahead or idling a drilling rig due to the costs of modifying equipment. After working with industry subject matter experts, the RRC issued clarifications to the rule to address these concerns in March.

The seminar was led by Randy Smith and Harris LaFleur with Smith Mason & Co., and focused on well control concepts, technical concepts, equipment, pressure control and geology, among other topics.

Willy Brandt Receives IADC Exemplary Service Award

Willy Brandt, who recently retired from Transocean as VP of Customer Accounts and Advisor to the COO, was presented the IADC Exemplary Service Award during the 2016 IADC World Drilling Conference on 15 June.

Mr. Brandt has more than four decades of industry experience, and has held positions in both headquarters and field assignments in locations such as West Africa, the Middle East, Europe, Asia, and the U.S. At IADC, he has served as Chairman of the IADC North Sea Chapter and a member of the IADC World Drilling Program Committee for nine years. He was also a member of the High-Pressure, High-Temperature Workgroup North Sea in 1989 and a member of the IADC Rig Safety Group in 1980.

During his acceptance of the award, Mr. Brandt said, “I would like to thank the IADC to have been given the opportunity to work with great people –great collaboration. When I look back, I can only look at it with great pleasure.”

IADC Welcomes Committee Passage of U.S. House Interior Appropriations Bill

On 15 June, in response to the committee’s passage of the U.S. House Interior Appropriations Bill, IADC President Jason McFarland issued the following press statement:

“The committee approval of this appropriations bill is an important step forward in ensuring that oil and gas regulations are fair and sensible. Of particular interest to drilling contractors is the inclusion of language surrounding the Bureau of Ocean Energy Management’s (BOEM) Air Quality Control, Reporting and Compliance rule. Representatives John Culberson (R-TX) and Steven Palazzo (R-MS) led the effort by offering an amendment that ensures BOEM is unable to enforce a final rule until they have completed their own air quality modeling studies and those have been reviewed and made available for public comment.”

“IADC thanks Representatives Culberson and Palazzo for their leadership on the amendment and for members of the committee who voted in support of the measure. The amendment takes a common-sense approach, and IADC appreciates their willingness to challenge BOEM in pursuit of an air quality rule based on sound science. In addition, IADC would also like to thank the committee for the inclusion of language regarding BSEE’s well control rule.”

BOEM Must Complete Air Quality Studies Before Instituting Final Rule, According to Letter from IADC, Industry Trades

On 20 June, IADC, along with other industry trade associations issued a letter to the US Bureau of Ocean Energy Management regarding the Air Quality Control, Reporting and Compliance Proposed Rule. In response to those comments, IADC President Jason McFarland issued the following statement:

“IADC and its members are committed to drilling for this country’s vast energy resources in a manner that respects and protects the environment and we support regulation that is sensible and transparent. However, in it’s current state, BOEM’s air quality proposed rule would offer no beneficial impact on air quality while imposing significant financial and data collection burdens to industry.

“The proposed rule was devised before ongoing air quality studies, conducted under the auspices of BOEM, could be completed. An understanding of whether activities on the outer continental shelf even have a negative impact on onshore air quality is imperative. Scientific data may well prove that a revised rule is unnecessary. Industry is owed a thorough analysis before being asked to make costly operational changes.

The U.S. House Appropriations Committee agrees, and last week included an amendment in its Interior Appropriations bill addressing this very point, by requiring BOEM to complete their own air quality modeling studies before enforcing a final rule. It is also worthwhile to consider that the existing BOEM air quality regulatory program has worked successfully for more than 30 years.”

“IADC, along with industry partners, has asked BOEM to reconsider their tight timeline for instituting a final rule in order to adequately address concerns that it will impose unintended costs and contains provisions outside of BOEM’s authority. We look forward to an opportunity to work collaboratively to develop a final rule that protects the environment without hindering the oil and gas industry from providing the energy that fuels the U.S. economy.”

The letter can be accessed via the IADC Website.

Lone Star College First Recipient of IADC Gateway Accreditation

Lone Star College, headquartered in Houston, Texas, recently became the first college accredited to deliver training through the IADC Gateway™ Accreditation Program.

In 2012, IADC’s Workforce Development Committee initiated the Workforce Attraction and Development Initiative (WADI) to bring together industry partners and more than 50 institutions of higher learning to develop course curriculums.

The result of four years of work is Gateway. As envisioned, Gateway will eventually comprise a suite of specialized training programs. The Introduction to Oil and Gas is the first available course, and aims to help companies connect with colleges, training providers and other organizations to attract, screen, hire, train and promote onshore and offshore oil and gas workers worldwide.

Linda Head, Associate Vice Chancellor, Lone Star College, was instrumental in the development of the program. “I personally spent a lot of time with IADC’s member companies on this program. The commitment by members of IADC to spend hours of time developing and designing the 360 technical behavioral competencies for this program was amazing. They showed up every week, either in person or on the phone, and spent time in between editing and modifying the nine different areas that were part of this project. The team I was involved with was very committed and involved and I’m proud of what we accomplished.”

The Introduction to Oil and Gas course offers a standard baseline curriculum comprising RigPass, WellSharp Awareness Level well control, a general introduction to the industry, behaviorial training (human factors), a module on rig life, technical math, rigging basics, electrical and fluid safety, industrial practices, and considerable hands-on training. The program is designed to better prepare new employees for working on a rig, thereby helping companies improve safety culture in the field while reducing turnover rates.

Lone Star has trained more than 300 people since becoming accredited and offers an 8 week program delivered at their University Park campus in Houston. Their trainers have been recruited from industry and all training is lab-based. Lone Star has partnered locally with Baker Hughes to provide training resources, and have purchased 18 acres in Tomball, Texas, outside of Houston, to develop a facility that will house a rig specifically for training purposes.

For more information about the Gateway program, please visit the IADC website.

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.

The book is published under the auspices of the IADC Technical Publications Committee, and is available for purchase as an eBook or hard copy through the IADC Bookstore.

Wyoming District Court Sets Aside U.S. Bureau of Land Management Hydraulic Fracturing Rule

On 21 June, a federal judge struck down the U.S. Bureau of Land Management’s (BLM) hydraulic fracturing rule, stating that the U.S. Department of Interior (DOI) does not have congressional authority to regulate hydraulic fracturing.

The rule was issued by the DOI in March 2015, and it imposed regulations that applied to hydraulic fracturing activities on federal and Indian lands. It was initially slated to take effect on 24 June 2015, before being postponed by the Court.

More information can be found on the US Courts website.

IADC Joins Allied Trade Associations to Comment on Proposed OCS Leasing Program

In June, IADC joined with allied trade associations to submit joint comments on the U.S. Bureau of Ocean Energy Management’s (BOEM) 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Program. The comments called for sustained sales in the Central and Western Gulf of Mexico and in the Alaskan Arctic, and urged BOEM to stay the course and not lose sight of what energy security means to the U.S.

To date, close to 2,500 comments have been submitted to the docket. All submitted comments can be accessed via the U.S. government regulations website.

UK HSE Publishes Annual Offshore Statistics and Regulatory Activity Report

The UK HSE recently published its Annual Offshore Statistics and Regulatory Report for 2015, which provides details of offshore injuries, dangerous occurrences and ill health reported to the HSE. The Offshore Hydrocarbon Population Data and Offshore Hydrocarbon Releases for 1999-2015 were also published.

Statistics for 2015 include:

There were no fatal injuries in 2015; there have been three fatalities in the last 5 years and seven in the last 10 years There were 33 specified injuries, with a rate of 103 per 100,000 full-time equivalent (FTE) workers There were 80 over-7-day injuries, a rate of 249 per 100,000 FTE workers There were 15 occupational diseases, a slight decrease on the previous year There were 299 dangerous occurrences; a fall of over a quarter compared to last year There were 94 hydrocarbon releases, the same number reported in 2014; the hydrocarbon release rate has fluctuated over the last 10 years There were 135 inspections undertaken at 104 offshore installations, operated by 47 operators 97 safety cases were assessed, an increase of over a third on the previous year 92 investigations were completed 63 workplace health and safety concerns were followed up 752 non-compliance issues were raised with operators 35 enforcement notices were issued (34 improvement notices and one There were two prosecution cases instituted and heard, both resulting in convictions

The full report can be accessed via the UK HSE website.

IADC Federal Regulatory Summary for Offshore Operations Now Available

On 1 July, IADC will issue an updated edition of the Federal Regulatory Actions Impacting Offshore Drilling Contractors. Released semi-annually, the report details federal regulatory actions that could impact offshore drilling activities.

The report reflects regulatory activities announced in the Federal Register or other available sources through June 2016.

The full report can be accessed beginning 1 July via the IADC Offshore Division webpage.

IOGP Publishes Revision to IOGP Report 365-6, Land Transportation Safety Recommended Practice – Guidance Note 6

IOGP recently announced the publication of the revision of IOGP Report 365-6, Land Transportation Safety Recommended Practice – Guidance Note 6 issued by the Land Transportation Safety Subcommittee under the auspices of the Safety Committee.

The revised questionnaire/checklist supports version 2 of Report 365, Land Transportation Safety Recommended Practice. It is intended for use by land transport/road safety management specialists who evaluate suitability and/or assess the performance of land transport operations. It provides an easy reference to the principal areas of land transport safety management. The assessment covers appraisal of operations and support including training, vehicles, manuals and documentation. It provides the user with sufficient information to assess the general standard of land transport operations, and companies with land transport activities with a basis to recognize any gaps between their current land transport safety management system and Report 365 as a foundation for becoming fully aligned.

The report is available to download from the members area library and is also made available to the public via the IOGP website.

Railroad Commission of Texas to Host Regulatory Seminars in Houston

The Railroad Commission of Texas (RRC) will host two one-day sessions of the Oil & Gas Regulatory Seminar on Tuesday, 12 July and Wednesday, 13 July in Houston.

The seminars will focus on educating and training oil and gas industry representatives on a variety of topics including:

Drilling permits Completions Inactive well requirements (Statewide Rule 15) Oil, gas or geothermal resource operations in hydrogen sulfide areas (Statewide Rule 36) Production reporting Pipeline accident and incident reporting Pipeline permitting Surface casing exceptions (Statewide Rule 13) Website queries for information

For additional information and to register, please visit the RRC website.

 

Accreditation Updates

RigPASS

CENTRO DE ESTUDIOS UNIVERSITARIOS DEL NORTE DE VERACRUZ A.C., MEXICO (CONDITIONAL);
CIA JAVIER CANTU BARRAGAN, MEXICO (CONDITIONAL); EMPOWER INSTITUTE, INDIA (CONDITIONAL); KHEIRON SAFETY, USA

DIT

PETRO-BASE LTD, NIGERIA;
24 HOUR SAFETY CO W.L.L., MANAMA, BAHRAIN; SMART TRAINEE TRAINING CENTRE, SAFWA, SAUDI ARABIA; STANDARD ARABIA INSPECTION CO LTD, AL-JUBAIL, SAUDI ARABIA

 

Safety Alerts

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):

Atlantica: Beta (1);
Caspian Drilling Company: Dada Gorgud (7); Istiglal 13); COSL Drilling Pan Pacific Ltd.: COSL Power (3); Pacific Drilling: Pacific Bora (1); Pacific Sharav (2); Parker Drilling: Rig 265 (1) For certificates received since last recordable incident (in years):
Greatship (India) Limited: Greatdrill Chaaru (1); Greatdrill Chaaya (1); Greatdrill Chitra (1); Pacific Drilling: Pacific Bora (1); Parker Drilling: Villavicencio Base (1)
New IADC Members IADC welcomes 16 new members:
ALLEN AUSTIN GLOBAL EXECUTIVE SEARCH, HOUSTON, TEXAS, USA;
BLACKWOOD INSIGHT, CYPRESS, TEXAS, USA; CAPITAL PETROLEUM CONSULTANTS, INC, HOUSTON, TX, USA; CURRANATTA MARINE SERVICES LTD, PORT HARCOURT, RIVERS, NIGERIA; DEXTEROUS OIL & GAS NIG LTD, WARRI, DELTA, NIGERIA; DRONEPRO LLC, MAGNOLIA, TEXAS, USA; ENVIRO-TEST TECHNOLOGIES LIMITED, MARABELLA, TRINIDAD AND TOBAGO; GASDRILL INTERNATIONAL, BEIJING, CHINA; GREENBERG, GRANT & RICHARDS, INC, HOUSTON, TEXAS, USA; HIDRAMAR S.L., LAS PALMAS DE GRANCANARIA, SPAIN; MARITIME AND OCS CONSULTING, FULSHEAR, TEXAS, USA; MARTIN ENGINEERING, NEPONSET, IL, USA; R N DUCS INTERNATIONAL, PORT HARCOURT, NIGERIA; STOWEN INC, KATY, TEXAS, USA; WELLGEAR GROUP B.V., WESTERBORK, DRENTHE, THE NETHERLANDS; Z & A CONSULTING SERVICES, INC, MIDLAND, TEXAS, USA. DRILLBITS Volume 26, Number 6
Tom Burke, 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 This email address is being protected from spambots. You need JavaScript enabled to view it..

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 This email address is being protected from spambots. You need JavaScript enabled to view it..