Oil prices climbed Monday, as improving sentiment helped boost prices and data showed investors have dramatically upped their bets on the oil price rising.

Discussing the state of the Republican party and how the 2016 election could pan out with Grover Norquist, President & Founder of Americans for Tax Reform.

China's carbon dioxide emissions may have already peaked in 2014, according to a report published Monday.

Shares in offshore driller Seadrill’s soared more than 50 percent on Monday on the back of what one analyst called the “mother of all short squeezes.”

Statoil's new $200 million venture capital fund has announced that it has invested $3 million in U.S. company United Wind.

IADC Comments on President Obama’s 2017 Budget, Urges Collaboration with Oil and Gas Industry to Boost American Economy

Houston, Texas (9 February 2016) -Today, the White House released President Obama’s 2017 budget proposal. In response, IADC President Jason McFarland issued the following statement:

“The U.S. oil and natural gas industry supports 9.8 million jobs and contributes billions of dollars each year to the U.S. Treasury. Despite these significant contributions, the President’s budget continues to use the oil and natural gas industry as an ATM to pay for proposals to fix traffic congestion, poor infrastructure and other items that our nation needs to address. This needs to be done without penalizing an industry that spurs our economic development and provides much needed energy for the U.S.”

“IADC members are eager to work with this Administration to reduce the overzealous regulations that impede our ability to work. We can, and do, provide good paying middle class jobs, which is an acknowledged priority for this Administration. However, we are only able to accomplish this if we are allowed to operate in an economically feasible and predictable regulatory environment.”

 

About IADC

Since 1940, the International Association of Drilling Contractors (IADC) has exclusively represented the worldwide oil and gas drilling industry. IADC’s mission is to catalyze improved performance for the drilling industry by enhancing operational integrity and championing better regulation to facilitate safer, cleaner and more efficient drilling operations worldwide. For more information, visit the IADC website at www.iadc.org.

 

 

 

The post IADC Comments on President Obama’s 2017 Budget, Urges Collaboration with Oil and Gas Industry to Boost American Economy appeared first on IADC - International Association of Drilling Contractors.

 

 

 

DRILLBITS – January 2016

This Month’s Articles

#checklist-1 li:before{color:#ab1e2e !important; content:'\f04b' } Joint Industry Project formed to establish BOP Reliability Database Taf Powell to Retire from IADC IADC issues Federal Regulatory Summary for Offshore Operations US Federal Courts deny Department of Interior request to expedite Hydraulic Fracturing Rule Case United States Coast Guard issues bulletins regarding cybersecurity IADC Supply Chain Committee develops suite of supplier metrics IADC Houston Chapter awards scholarships Drilling Engineers announce 2016 Tech Forum schedule West Virginia engaged in updates to oil and gas regulation and legislation Accreditation Updates Safety Alerts Rigs receive ISP certificates IADC welcomes new members

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Joint Industry Project formed to establish BOP Reliability Database

A new Joint Industry Project (JIP) to establish an industry-wide BOP Reliability Database recently formalized the initial phase of work. The ultimate aim is to produce a single source of quality information on the performance of BOP systems.

The JIP was initiated jointly by the International Association of Drilling Contractors (IADC) and the International Association of Oil and Gas Producers (IOGP). Participating companies include oil & gas producers, drilling contractors, and equipment manufacturers.

“The new JIP combines two groups who had previously worked in parallel to collect BOP performance data. The Subsea BOP Users Executive Group, or “Group of 7”, and the IOGP Wells Expert Committee BOP Task Force, realized a single JIP with a common language could more effectively track BOP data used for increasing safety and reliability of BOPs,” said Bob Blank, Vice President of Operations Excellence, Noble Drilling, one of the contractors who developed the original system. “The vision of the JIP is to develop an effective data collection methodology for Blowout Preventer Equipment, together with a well-structured database that is underpinned by an effective governance process, based on input from both groups.”

“The JIP has been designed as a unique collaborative program with the objective of gathering high quality, industry-wide, statistically significant data to improve the industry’s approach to BOP maintenance and integrity management and to feed field experience back to designers,” says Patrick Toutain, IOGP Safety Director.

Participants include the ‘Group of 7’, Ensco International Incorporated, Noble Drilling Services, Inc., Diamond Offshore Drilling Inc., Transocean Offshore Deepwater Drilling, Inc., Seadrill America, Inc., Pacific Drilling Services, Inc., and Maersk Drilling USA, Inc. Also included are the three primary manufacturers and suppliers of BOP systems, Cameron, GE Oil & Gas, and NOV; and operators, including Anadarko, BP, Chevron, CNOOC/Nexen, Kosmos, Petrobras, Shell, Statoil, ExxonMobil and Total.

Each participating company in the JIP has a seat on the Board of Directors, which met yesterday in Houston. One of the Board’s first items of business was electing an Oversight Committee to handle day-to-day operations of the JIP. The Oversight Committee elected today include contractors Diamond Offshore, Ensco PLC, Noble Drilling, and Pacific Drilling; producers include BP, Chevron, and Statoil; and all three manufacturers and suppliers. IADC will act as project coordinator.

The JIP is building on a database originally developed by the Group of 7. The database will support BOP system reliability, integrity and availability assessments; monitor BOP component reliability performance trends over time; support improvements in BOP testing and maintenance decisions and support long term improvements in BOP system design.

Mark Siegmund, BP Advisor for Wells Reliability and Chair of the IOGP Wells Expert Committee BOP Task Force, said “We have a committed group of companies and individuals who have a sincere interest in further enhancing the reliability of BOP equipment, and we believe that this effort will have a positive future impact.”

Taf Powell to Retire from IADC

After more than 2.5 years of exemplary service, Taf Powell, IADC Executive Vice President, Policy, Government and Regulatory Affairs will retire from IADC at the end of March.

Mr. Powell has a long and distinguished career in petroleum and topsides engineering for upstream E&P. His early career includes experience as a drilling engineer and drilling project manager. He joined the Health and Safety Executive in 1992, serving a variety of roles over 21 years, during which time he introduced safety case regimes and new key UK programs focused on regulatory priorities. In 2005, he was appointed to the Buncefield Independent Board of Investigation as Chief Inspector for the Board of Investigation. In 2011, he joined the European Commission as an expert advisor for offshore drilling and production. In that role, he was responsible for delivering EU-wide legislation for offshore safety, environmental protection and financial liability.

“During his time with IADC, Taf was instrumental in advancing the association’s goal of advocating for sensible and transparent legislation worldwide. His extensive background, and relationships he developed in the government and regulatory realm, were of incredible benefit to IADC members,” said Jason McFarland, IADC President. “We are thankful for Taf’s service to IADC, as his considerable knowledge and skills were an asset to our staff, and we wish him well in his retirement.”

“I’ve had a great time in IADC, and learned a great deal, I consider myself fortunate to have worked with many highly capable colleagues who are also excellent people, and whom I shall miss. And it has been, perhaps, the greatest privilege of all to serve this great industry at its front line, and to have the chance to make some advance towards the recognition this industry deserves for its contribution to the wealth and welfare of the world. I shall always strive for that recognition,” said Mr. Powell.

IADC issues Federal Regulatory Summary for Offshore Operations

IADC recently issued an updated edition of the Federal Regulatory Actions Impacting Offshore Drilling Contractors report. Released semi-annually, the report details federal regulatory actions that could impact offshore drilling.

The report reflects regulatory actions announced in the Federal Register or other available sources through December 2015.

Federal Regulatory Actions Impacting Offshore Drilling Contractors can be accessed at IADC’s website.

US Federal Courts deny Department of Interior request to expedite Hydraulic Fracturing Rule case

In March of 2015, the US Bureau of Land Management issued a hydraulic fracturing rule, which aims to regulate oil and gas production activity on public and tribal lands. IADC, along with other industry groups, has questioned the necessity of the rule, arguing that it will only increase costs and regulatory redundancy, ultimately impacting America’s long-term energy security.

The rule includes requirements that replicate controls already in place. The existing requirements themselves enshrine the good oilfield standards that industry has routinely practiced for many years and continuously improves on. The BLM estimates that the rule will impose additional annual costs of $32 million, with other entities estimating a much higher expense.

In early January, a federal court in Wyoming rejected attempts by government lawyers to speed up litigation on the BLM ruling. Currently, the case focuses on whether the Department of the Interior, which oversees the BLM, had the authority to make the ruling and whether the rulemaking was improper.

As the case makes its way through the court system, current regulations apply as industry awaits a resolution.

United States Coast Guard issues bulletins regarding cybersecurity

The United States Coast Guard recently issued two bulletins, both regarding cybersecurity, which are of interest to the drilling industry.

Maritime Cyber Bulletin 003-16 raises awareness of recent malicious cyber activity in the maritime domain and provides further information about the events. It provides an overview of current Joomla vulnerabilities being targeted by malicious cyber actors and provides prevention and mitigation information.

Maritime Cyber Bulletin 004-16 highlights vulnerabilities in certain models of shipboard voyage data recorders. It provides an overview of the vulnerabilities and provides mitigation and remediation information.

Both of the bulletins can be accessed via the US Coast Guard’s website.

IADC Supply Chain Committee develops suite of supplier metrics

In an effort to develop a mutually beneficial relationship with suppliers, the IADC Supply Chain Committee has created a suite of standard supplier metrics and a scorecard template to align expectations and promote performance improvement throughout the entire procurement to pay process in the drilling industry.

The supplier metrics were evaluated both on the impact to the supply chain process as well as the measurability by both suppliers and drilling contractors. They include:

1) On-time delivery

2) Price variance

3) Lead time management

4) Percentage of overage, shortage, & damaged deliveries

5) Invoice accuracy

6) Qualitative survey

Using the IADC Supply Chain Committee scorecard, drilling contractors are able to input data collected from the metrics, helping to promote consistency on the measurement of key performance indicators by both drilling contractors and suppliers.

Any and all data collected from these metrics is strictly confidential and will not be shared with anyone other than each drilling contractor and its suppliers. The metrics and the scorecard template were developed by the IADC Supply Chain Committee to assist drilling contractors and suppliers in performance improvement discussions.

The metrics document and scorecard can be accessed via the IADC website.

IADC Houston Chapter awards scholarships

The IADC Houston Chapter awarded 25 students from four Texas universities with scholarships for the 2015/2016 school year.

Each student was selected by their university to participate in the IADC interview process, and awarded the scholarship based on their overall GPA in engineering or related studies, leadership skills, internship experience and overall interest in the oil and gas industry. Students selected attend Texas Tech University, Texas A&M University, The University of Texas and the University of Houston.

Money for the scholarships is raised from the Houston Chapter’s annual golf tournament and other local events throughout the year. For the 2015/2016 school year, the chapter raised $84,000 for the fund.

“Our ability to provide scholarships is a direct reflection of the participation and support of all of our local members,” said Chris Menefee, Vice President, Business Development, Independence Contract Drilling, Inc. and Houston Chapter Scholarship Chair. “Without the continued support of our members in these events, the scholarship program would not be possible. I would like to thank all of the local Houston Chapter members and ask that they continue to support us during this challenging time in our industry.”

For more information about the IADC Houston Chapter, please visit the IADC website.

Drilling Engineers announce 2016 Tech Forum schedule

The IADC Drilling Engineers Committee has announced its schedule of Technology Forums for 2016. The topics, schedule and confirmed locations are:

— Q1: “Data Acquisition and Cybersecurity”, 9 March. Host/location TBD;

— Q2: “Well Life Cycle Design”, 8 June. Host: Weatherford, 11909 Spencer Road, Houston, TX 77041;

— Q3: “Barriers in Well Control”, 7 September. Host: ABS, 15011 Katy Freeway, Ste 100, Houston, TX 77094;

— Q4: ”Innovations in Drilling Safety”, 9 November. Host/location TBD.

DEC encourages submission of abstracts for the forums. Send your ideas to This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it..

Presentations have been posted from the Q4 2015 Technology Forum, graciously sponsored by GE Oil & Gas. These are available at http://www.iadc.org/wp-content/uploads/2014/04/11-November-2015-DEC-Technology-Forum-Meeting-Minutes.pdf

 

West Virginia engaged in industry safety recommendations and updating horizontal well rule

West Virginia Oil and Natural Gas Industry Safety Commission issues report

West Virginia governor Earl Ray Tomblin initiated the Oil and Natural Gas Safety Commission in July 2015 to determine how to best protect workers at natural gas operations and ensure they have proper training and skills to do their jobs safely and effectively.

IADC was invited to present before the Commission in September 2015, and cited the association’s history of developing industry training and accreditation programs.

This month, the Commission published a report detailing key findings and recommendations. Those involved concluded that while existing regulations and best practices are helping to improve overall safety, more can and should be done, including added safety practices and training. The Commissioners agreed that education, training and prevention are the best approaches to ensuring a safe workplace.

Based on the findings of the report, the Commission made 18 recommendations to the Governor. For a full listing of the Commission’s recommendations and conclusions, please visit: http://www.governor.wv.gov/media/Documents/Final%20Report_Natural%20Gas%20Safety%20Commission.pdf

West Virginia Legislature contemplates changes to Horizontal Well Development Rule

The West Virginia legislature is currently in session and is considering updates to the horizontal well rule. The amendments propose creating new regulatory requirements related to drilling activities in karst regions; drinking water well flow and quality testing; and horizontal well plugging procedures. Additional revisions establish or modify existing rules in the following areas: prevention of well communication through unintended fracture propagation; well pad and centralized waste pit construction standards; groundwater aquifer analysis for water supply well; annual and other reporting requirements and waste storage and drilling procedures.

IADC continues to monitor the ongoing discussions in West Virginia. For more information, please contact Liz Craddock at This email address is being protected from spambots. You need JavaScript enabled to view it..

 

Accreditation Updates

RigPASS

#checklist-2 li:before{color:#4d4c4f !important; content:'\f04b' } Laroui Environmental & Safety Solutions, Algeria (Conditional); Falck Safety Service (E-Learning), USA (Conditional); M&A Safety Services, LLC, USA

 

WellSharp

#checklist-2 li:before{color:#4d4c4f !important; content:'\f04b' } Intertek Testing Services de Mexico S.A. de C.V., Mexico; Intertek Consulting & Training Colombia Ltda, Colombia; Nabors Drilling International Limited, Latin America, Mexico

 

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):
#checklist-3 li:before{color:#4d4c4f !important; content:'\f04b' } COSL Drilling Pan Pacific Ltd: COSL Strike (6); COSL Craft (8); Ocean Rig: POSEIDON (2); Pacific Drilling: Pacific Meltem (1); Pacific Mistral (1); PV Drilling: PV Drilling II (6); Weatherford Drilling Internationl (BVI) LTD: 40 (2); 102 (3); 144 (14); 147 (3); 150 (2); 155 (16); 157 (2); 160 (4); 161 (2); 172 (5); 798 (1); 807 (2); 811 (4); 832 (4); 844 (5); 870 (3); 889 (2); 890 (1); 891 (1); 892 (1); 893 (1); Egypt Support Team (4); Hoist 875 (1); Hoist 92 (2); KSA SUPPORT TEAM (3); Kuwait Transport Team (14). For certificates received since last recordable incident (in years):
#checklist-5 li:before{color:#4d4c4f !important; content:'\f04b' } Ocean Rig: POSEIDON (1); Pacific Drilling: Pacific Meltem (1); Pacific Mistral (1); Weatherford Drilling International (BVI) LTD: 40 (2); 147 (3); 155 (3); 157 (1); 158 (2); 161 (2); 171 (5); 172 (1); 174 (3); 797 (3); 798 (1); 811 (2); 843 (2); 844 (1); 871 (2); 890 (1); 891 (1); 892 (1); 893 (1); Chad Support Team (3); Egypt Support Team (6); Hoist 875 (3); KSA SUPPORT TEAM (3); Kuwait Transport Team (2).

New IADC Members

IADC welcomes 19 new members:
#checklist-6 li:before{color:#4d4c4f !important; content:'\f04b' } “AASEIC CONSULTORIA Y CAPACITACION, POZA RICA, VERACRUZ, MEXICO; AAMAL COMPANY, SANLIURFA, TURKEY; ANGLO EASTERN INDUSTRIES – TECHNICAL SERVICES DIVISION, DUBAI, UNITED ARAB EMIRATES; ATLAS COPCO TOOLS & ASSEMBLY, LLC, PASADENA, TEXAS, USA; BERGER GEOSCIENCES, LLC, HOUSTON, TEXAS, USA; GEOWELLS INTERNATIONAL LIMITED, NAIROBI, KENYA; FORADEX PETROL TUNISIA – BRANCH, TUNIS, TUNISIA; HX GLOBAL, INC, THE WOODLANDS, TEXAS, USA; INDUCTION CENTER, KIFAN, KUWAIT; INTERNATIONAL RESEARCH & DEVELOPMENT CENTRE, BASAKSAHIR, ISTANBUL, TURKEY; JEMMTEK RESOURCES NIGERIA LIMITED, PORT HARCOURT, RIVERS STATE, NIGERIA; KLUBER LUBRICATION NA, LONDONDERRY, NEW HAMPSHIRE, USA; OARS 360, HOUSTON, TEXAS, USA; OUCH SERVICES, LLC, LAFAYETTE, LOUISIANA, USA; RIG IRM, HOUSTON, TEXAS, USA; RFC DRILLING COMPANY, ODESSA, TEXAS, USA; SELMAN & ASSOCIATES, MIDLAND, TEXAS, USA; STALION PRIMI, PORT HARCOURT, RIVERS STATE, NIGERIA; YOAKUM TECHNICAL CONSULTING LLC, HOUSTON, TEXAS, USA.

 

DRILLBITS Volume 26, Number 1

Tom Burke, Chairman • Jason McFarland, President (Interim) • 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..

The post DRILLBITS – January 2016 appeared first on IADC - International Association of Drilling Contractors.

Joint Industry Project formed to establish BOP Reliability Database

Houston, Texas (28 January 2016) – A new Joint Industry Project (JIP) to establish an industry-wide BOP Reliability Database recently formalized the initial phase of work. The ultimate aim is to produce a single source of quality information on the performance of BOP systems.

The JIP was initiated jointly by the International Association of Drilling Contractors (IADC) and the International Association of Oil and Gas Producers (IOGP). Participating companies include oil & gas producers, drilling contractors, and equipment manufacturers.

“The new JIP combines two groups who had previously worked in parallel to collect BOP performance data. The Subsea BOP Users Executive Group, or “Group of 7”, and the IOGP Wells Expert Committee BOP Task Force, realized a single JIP with a common language could more effectively track BOP data used for increasing safety and reliability of BOPs,” said Bob Blank, Vice President of Operations Excellence, Noble Drilling, one of the contractors who developed the original system. “The vision of the JIP is to develop an effective data collection methodology for Blowout Preventer Equipment, together with a well-structured database that is underpinned by an effective governance process, based on input from both groups.”

“The JIP has been designed as a unique collaborative program with the objective of gathering high quality, industry-wide, statistically significant data to improve the industry’s approach to BOP maintenance and integrity management and to feed field experience back to designers,” says Patrick Toutain, IOGP Safety Director.

Participants include the ‘Group of 7’, Ensco International Incorporated, Noble Drilling Services, Inc., Diamond Offshore Drilling, Inc., Transocean Offshore Deepwater Drilling, Inc., Seadrill America, Inc., Pacific Drilling Services, Inc., and Maersk Drilling USA, Inc. Also included are the three primary manufacturers and suppliers of BOP systems, Cameron, GE Oil & Gas, and National Oilwell Varco; and operators, including Anadarko, BP, Chevron, CNOOC/Nexen, Kosmos, Petrobras, Shell, Statoil, ExxonMobil and Total.

Each participating company in the JIP has a seat on the Board of Directors, which met yesterday in Houston. One of the Board’s first items of business was electing an Oversight Committee to handle day-to-day operations of the JIP. The Oversight Committee elected include contractors Diamond Offshore, Ensco PLC, Noble Drilling, and Pacific Drilling; producers include BP, Chevron, and Statoil; and all three manufacturers and suppliers. IADC will act as project coordinator.

The JIP is building on a database originally developed by the Group of 7. The database will support BOP system reliability, integrity and availability assessments; monitor BOP component reliability performance trends over time; support improvements in BOP testing and maintenance decisions and support long term improvements in BOP system design.

Mark Siegmund, BP Advisor for Wells Reliability and Chair of the IOGP Wells Expert Committee BOP Task Force, said, “We have a committed group of companies and individuals who have a sincere interest in further enhancing the reliability of BOP equipment, and we believe that this effort will have a positive future impact.”

 

About IADC

Since 1940, the International Association of Drilling Contractors (IADC) has exclusively represented the worldwide oil and gas drilling industry. IADC’s mission is to catalyze improved performance for the drilling industry by enhancing operational integrity and championing better regulation to facilitate safer, cleaner and more efficient drilling operations worldwide. For more information, visit the IADC website at www.iadc.org.

ABOUT IOGP

The International Association of Oil & Gas Producers (now IOGP and formerly known as OGP) is the voice of the global upstream industry. Its members produce more than half of the world’s oil and over a third of its gas.  They operate in all producing regions:  the Americas, Africa, Europe, the Middle East, the Caspian, the Arctic, Asia and Australia. See more at: www.iogp.org.

 

 

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