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OILFIELD TECHNOLOGY MAGAZINE DECEMBER 2013 www.energyglobal.com Duraband®NC Hardbanding VOLUME 06 ISSUE 12-DECEMBER 2013

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Page 1: Duraband®NC Hardbanding · 2016. 3. 9. · Andy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its

OILFIELD TECHN

OLOGY MAGAZIN

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DECEMBER 2013

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ww

.energyglobal.com

Duraband®NCHardbanding

VOLUME 06 ISSUE 12-DECEMBER 2013

Page 2: Duraband®NC Hardbanding · 2016. 3. 9. · Andy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its

DARE TO CARE!

c100 m0 y30 k20c0 m75 y100 k0c55 m55 y0 k0c0 m100 y87 k0c20 m100 y50 k0c85 m45 y0 k0c0 m0 y0 k100

v2

Keep yourbusiness bloomingKeep yourbusiness blooming

Just like pipelines, the boughs of a tree transport vital elements to where they’re needed. So why not protect both in the same way?

After

At a fruit orchard in Belgium, Stopaq enabled dying limbs to heal, and life to be restored. Trees depend upon branches, like up- and downstream energy systems depend upon distribution pipelines. Both transport vital elements to where they are most needed. When your business depends on ensuring that vital elements reach their destinations, damage prevention and maintenance are critical elements of business. Like the damaged fruit tree, Stopaq will safeguard pipelines and other critical infrastructure against any form of external corrosion that keeps your vital energy fl owing. Stopaq enables business to bloom.

Before

A test site of fruit trees in Belgium. STOPAQ enabled damaged boughs to heal, leading to healthy growth.

WE130591_TREE_OF_LIFE_OILFIELD_A4_DEF.indd 1 15-11-13 12:45

Page 3: Duraband®NC Hardbanding · 2016. 3. 9. · Andy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its

ISSN 1757-2134

contents

Copyright © Palladian Publications Ltd 2013. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. Images courtesy of www.bigstockphoto.com.

Oilfield Technology is audited by the Audit Bureau of Circulations (ABC). An audit certificate is

available on request from our sales department.

40

| 03 | EDITORIAL COMMENT

| 05 | WORLD NEWS

| 10 | TECHNOLOGY TO THE RESCUEOilfield Technology correspondent Gordon Cope, looks at recent and upcoming developments across a broad spectrum of technologies that are driving the industry forward.

| 15 | MIDDLE EASTERN EORGeorges Chehade, Booz & Company, Lebanon, David Branson and Anil Pandey, Booz & Company, UAE, argue that it is time for an integrated approach when it comes to implementing EOR projects in the Middle East.

| 20 | ENTERING A NEW DIMENSIONJaime A. Stein, Geotrace Technologies Inc., USA, shows us how multi‑dimensional algorithms are changing land processing.

| 25 | BRINGING ABOUT THE END OF EMISSIONSAndy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its neighbour, the Western Canadian Sedimentary Basin, as they both look to reduce emissions.

| 30 | PASSIVE PROTECTIONTaylor Milne and Andrew Weir‑Jones, Weir‑Jones Group, Canada, examine the increasing importance of passive microseismic monitoring (PMM) as the practice of hydraulic fracturing begins to spread across the globe.

| 35 | STRAIGHT TALK ON RISER BUCKLINGThomas L. Power and Brian S. Royer, Stress Engineering Services Inc., USA, provide an overview of the basic mechanics of direct vertical access (DVA) well risers.

| 40 | RISING TO THE TOPRod Edwards, BMT Scientific Marine Services Inc., USA, explores the technical evolution of ultra deepwater riser integrity monitoring.

| 47 | KING PINRoss McCracken, Platts Energy Economist, UK, shows how Saudi Arabia has played a key role in stabilising oil prices in the aftermath of the Arab Spring, one that it alone has the capacity to play. But the Kingdom faces a multitude of challenges if it is to retain its preeminent position within both the world oil market and OPEC.

| 51 | MONITORING PRODUCTIONErlend Blanchard, Mirmorax, Norway, examines some recent developments in oil‑in‑water monitoring.

| 55 | PREDICTING THE FUTUREMark Norris, Scientific Drilling International, USA, shows how a environmental‑based tool maintenance programme can more effectively and proactively meet the challenge of true predictive maintenance.

| 58 | FINE TUNING FOR HARSH CONDITIONSDanny Broughton, Enteq Drilling, UK, explains how the oil and gas industry’s growing need to operate in ever‑harsher conditions has pushed engineers to design increasingly durable MWD/LWD systems.

| 61 | PUTTING THE ‘HEALTH’ BACK INTO HSEKyle G. Johnson, Onsite OHS, USA, explains the need for HSE professionals to provide a comprehensive employee health programme.

| 64 | TARGETING TRAININGDave Cormack, Auriga Training, UK, tracks the gradual development of well control training over the history of the oil and gas industry, and plots the route towards well control training for the individual.

| 69 | CONTROLLING COILED TUBINGDavid Egbert, Well Control School, USA, asks whether well control training applies to the coiled tubing service line.

Duraband® NC hardbanding, from Hardbanding Solutions by Postle, protects the casing and the tool joint, and results in more efficient drilling with less energy requirements. It is available from most drill pipe manufacturers and rental companies and is supported by nearly 200 certified applicators around the world. Because drill pipe manufacturers, rental companies, drilling contractors and oil and gas operators all benefit from a reliable hardbanding application, the company has established a worldwide network of Hardbanding Solutions Technical Centers to support the industry and all applicators.

On this month’s cover >>

December 2013 Volume 06 Issue 12

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POWER OF INNOVATION / MILESTONES 2013

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ICOTA INTERVENTION TECHNOLOGY AWARD – WELL CUTTER®

TRIALS OF 218 CT WELL TRACTOR®

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3OILFIELD TECHNOLOGY

December 2013

comment

Oilfield Technology subscription rates: Annual subscription £80 UK including postage/£95/e130 overseas (postage airmail)/US$ 130 USA/Canada (postage airmail). Two year discounted rate £128 UK including postage/£152/e208 overseas (postage airmail)/US$ 208 USA/Canada (postage airmail). Subscription claims: Claims for non receipt of issues must be made within three months of publication of the issue or they will not be honoured without charge. Applicable only to USA & Canada: Oilfield Technology Magazine (ISSN No: 1757-2134, USPS: 025-171) is published monthly by Palladian Publications Ltd GBR and distributed in the USA by SPP, 17B S Middlesex Ave, Monroe NJ 08831. Periodicals postage paid at New Brunswick, NJ. Postmaster: Send address changes to Palladian Publications, 17B S Middlesex Ave, Monroe NJ 08831.

Contact information >>

Palladian Publications Ltd, 15 South Street, Farnham, Surrey GU9 7QU, UK Tel: +44 (0) 1252 718 999 Fax: +44 (0) 1252 718 992

Website: www.energyglobal.com

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Reprint/Marketing Assistant: Catherine Gower

[email protected]

Publisher: Nigel Hardy

Cecilia Rehn

Deputy Editor

Size is everything. When you’re talking about reducing footprint, cutting costs and shrinking logistical manoeuvrability, compactness can be key. Of course, in

the oil and gas industry, sometimes you need to go big. Enter the power drill behemoths of the sea.

In October, the first of Danish shipping giant Maersk’s four commissioned ultra-deepwater drillships was christened. Mrs Nathalie Newman, wife of Mr Harry E. Newman Jr., ExxonMobil Global Drilling Manager, named the drillship Maersk Viking. Constructed by Samsung Heavy Industries, South Korea, the ship will be contracted out to ExxonMobil in the Gulf of Mexico for the next three years, whilst the three other drillships under construction (all four represent a total investment of US$ 2.6 billion), will be delivered from the SHI yard in late 2013 and 2014.

Able to operate in up to 3600 m of water, Viking will be able to drill down through another 12 000 m of earth, almost six times further downward than the world’s deepest known cave, the Krubera Cave in Abkhazia, a breakaway region of Georgia (2197 m). The ship also boasts a 60 m derrick and six 5500 kW azimuth thrusters thruster engines, which are designed to keep the ship steady and drilling even in waves of up to 9 m. No wonder a Maersk engineer referred to the ship as a ‘giant Black & Decker.’

Drillships have come far from their humble origins in the 1940s, when a surplus US Navy patrol craft was converted and equipped with cantilevered drilling equipment to try and overcome deepwater challenges offshore California. Today, the South Korean and Singaporean shipyards have a stronghold on the US$ 44 billion/yr drillship market, along with producing some of the largest container vessels and rigs. Other large drillship orders from 2013 include: Atwood Oceanics, Inc.’s turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd (DSME) for a fourth ultra-deepwater drillship – the Atwood Archer, to be delivered by 31 December 2015; and the Rowan Reliance, one of Rowan Companies plc’s four ultra-deepwater drillships being

constructed by Hyundai Heavy Industries Co. Ltd with an expected delivery date at the end of October 2014.

South Korea has managed to hold onto its leading position, despite a perceived threat from China, which can offer lower prices. However, considering the demands placed on ships to be technologically advanced and fuel-efficient, shipbuilding is nowadays a “design and quality” business rather than a labour-driven one.1 South Korean companies, once a lower-cost alternative to European yards, have wisely invested in in-house designers and engineers, helping to position themselves as leaders in this industry.

Of course, not all contracts are awarded to Asian companies. Notably, earlier this autumn, after a six-month design competition, Statoil awarded a contract to Norwegian engineering firm Inocean for the design of the Cat I Drillship, which has been described as the ‘drillship of tomorrow.’ Intended to support Statoil’s Arctic programme, the drillship design includes suitable winterisation and a specific hull design. The contract includes the concept design and option for the FEED (front end engineering design), which is planned to go on until the end of 2014.

“Being developed for arctic operations, we are probably speaking of the most advanced and sophisticated unit evolved within drilling operations,” said Jon Erik Borgen, CEO of Inocean.

Looking beyond the oceans, maximising production in oil and gas operations requires a multitude of technology and products. Oilfield Technology correspondent Gordon Cope discusses solutions of all sizes, from sophisticated software to automated drilling rigs, beginning on p. 10.

This issue concludes Oilfield Technology’s sixth year. We’ve got exciting topics planned for 2014 and look forward to another successful year sharing regional insights and technical innovations. Please get in touch if you’d like to propose an article idea or comment on the content.

See you in 2014! O T

Reference1. SokjeLee,Analyst,J.P.Morgan,Seoulquotedin‘Thedeeper

thebetter’,The Economist,http://www.economist.com/news/business/21590496-korean-and-singaporean-yards-have-adapted-well-chinas-challenge-deeper-better(Accessed2December2013).

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05OILFIELD TECHNOLOGYDecember 2013

world news

inbrief

The Iranian oil ministry has begun efforts to restore ties with foreign oil companies, as progress made at the ongoing nuclear talks could spell the end, or at least the relaxation of, Western sanctions.

As part of an interim deal, Iran would halt its nuclear activities in return for foreign aid.

The US-led sanctions have forced Iran to make deep cuts to production: by cutting some 900 000 bpd from the country’s output, Iran has been left producing just 1.1 million bpd for the first nine months of 2013.

Many nations that once relied upon Iranian oil have either reduced their purchases or sought supplies elsewhere in order to avoid US financial penalties. The same is true for the IOCs that once worked with the Iranian oil industry.

In a recent interview with

foreign media, Oil Minister Bigan Namdar Zanganeh said that he had already met (sometimes indirectly) with US and European companies to discuss the possibility of them returning to Iran in the event of sanctions being lifted. He added that, amongst other companies, he was looking to draw Total, Royal Dutch Shell, Eni and Statoil back to Iran.

It has also been revealed that Iran is reviewing its current system of contracts in an attempt to provide more attractive terms than its neighbours, including Iraq, and attract the US$ 50 billion of foreign investment that the industry needs.

However, the negotiations over Iran’s nuclear programme are far from concluded, and without a settlement and the lifting of sanctions, no contracts will be signed.

USAAccording to the EIA, US crude production rose by 45 000 bpd to 8.019 million bpd at the end of November, breaking the 8 million bpd barrier for the first time since January 1989.

At present, US oil production is growing faster than ever and, at the current pace, will make the nation the world’s largest producer by 2015, some five years earlier than had previously been estimated. Energy independence, fuelled by growth in the oil and gas industry, has long been a major US policy objective with the last eight presidents promising to achieve this goal.

North SeAConcerns have been raised over the future of the North Sea oil industry. The maturing oil province is currently beset by uncertainty coming from the debate over Scottish Independence, skill shortages and inflation.

According to the 19th Oil and Gas Survey sponsored by law firm Bond Dickinson, companies are becoming concerned over the lack of information regarding the potential tax policies of an independent Scotland.

A reflection of this uncertainty can be seen in the recent delay and cancellation of some £10 billion worth of oil and gas projects.

UkrAiNeThe Ukrainian government has signed an offshore oil and gas production sharing agreement with Eni and EDF that could bring up to US$ 4 billion of investment into the country.

The deal covers 1400 km2 of water offshore Western Crimea including the Subbotina oil license. Eni will be the operator, with a 50% stake, EDF will hold 5% whilst Ukrainian state-firms Ukrainy and Choronomornaftogaz will hold 35% and 10% respectively.

// Iran // Looks to capitalise on positive nuclear talks and restore ties with foreign investors

Aker Solutions has agreed to sell its well intervention services business to a Swedish private equity fund, EQT, for NOK 4 billion.

The agreement includes an earn-out provision where Aker Solutions will receive 25% of any internal rate of return exceeding 12% a year on EQT’s equity investment. Aker Solutions will book a gain before any earn-out of between NOK 1.8 billion and NOK 1.9 billion from the transaction, which is predominantly structured as a share sale.

“The sale is part of a strategy to increase our focus on the deepwater and subsea oil-services markets, where Aker Solutions is well-positioned,” said Øyvind Eriksen, Executive Chairman of Aker Solutions.

Harkand has entered into a charter agreement with Siem Offshore for the Offshore Subsea Construction Vessel (OSCV) Siem Spearfish. The agreement covers a firm period of five years with three yearly options and will begin in May 2014.

The vessel will support the development of the Harkand group in the provision of inspection, repair and maintenance (IRM) services in the deepwater Gulf of Mexico.

The DP2 vessel, built by Vard in Norway, has a 250 t crane and will be fitted with two Triton XLX ROVs, as well as a complete survey spread. The Spearfish addition to the Harkand fleet marks an important step forward in the company’s commitment to deepwater activities.

// Aker Solutions // Well intervention sale

// Harkand // Signs charter agreement

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06 OILFIELD TECHNOLOGY December 2013

diarydates

webnews highlights

Get the free mobile app athttp:/ /gettag.mobi

Scan for the ENERGY GLOBAL iPhone/iPad App

To read more about these articles and for more event listings go to:

world news

Ì Somali piracy drops

Ì EU shale production could add 1 million jobs

Ì 2015 climate agreement: on track

Ì Oil Council awards 2013

19 - 22 JanuaryIPTC 2014Doha, QatarE: [email protected]/2014/doha

05 - 07 FebruarySubsea Expo 2014Aberdeen, UKE: [email protected] www.subseaexpo.com

10 - 12 FebruaryArctic Technology ConferenceHouston, TexasE: [email protected]

17 - 19 FebruaryIP WeekLondon, UKE: [email protected]/events/ip-week // Poland // Draft shale gas law to

be ready by end of 2013

According to Poland’s Environment Minister, Maciej Grabowski, a draft of a law to regulate the shale gas industry in Poland will be ready for approval before the end of the year.

Grabowski was quited as saying, “I believe that one can achieve environmental goals by tying them to economic goals in a way more friendly for investors ... We would like the law facilitating investment in shale to be passed as soon as possible to reduce the potential risk for investors.”

The Environment Minister was also quoated as saying that in order to find out whether shale produciton was economically viable, the country would need to drill three to four times more exploration wells; “200 to 250 wells will allow us to find out if commerical extraction is realistic.”

Poland has some of the largest shale reserves in Europe and securing a significant domestic energy supply would be a significant boon to the government, which is looking to reduce its dependence on Russian imports.

However, potential plans by the EU to regulate hydraulic fracturing could further hinder the country’s efforts. In recent months, several companies including ExxonMobil have abandoned their projects in Poland.

The US government is considering whether or not to allow Shell to resume exploratory drilling operations offshore Alaska.

The company recently filed a new exploration plan, but this has faced criticism from several environmental groups claiming that the proposal does nothing to provide solutions to the problems faced by the company last year.

Shell released a statement saying, “We will continue to take a methodical approach to this exploration phase and will only proceed if the programme meets the conditions necessary to proceed safely and responsibly.”

The exploration plan is currently being examined by the Interior Department prior to a formal review.

Russian oil giant Rosneft has announced plans to spend approximately US$ 3 billion on development at three East Siberian fields through its Vankorneft subsidiary.

The Suzun, Tagul and Lodochnoye fields (or Vankor cluster), acquired by Rosneft as part of its purchase of TNK-BP, could yield up to US$ 2 billion in additional revenue as a result of the investment.

A statement released by Rosneft said, “A single control system for our Vankorneft resources will allow consolidation efforts to survey and extract [oil], build infrastructure and guide personnel.”

The output will contribute to Rosneft’s Asian exports. The company currently sends some 750 000 bpd to Asia.

// Shell // Review of exploration rights

// Rosneft // US$ 3 bn development spend

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world news

08 OILFIELD TECHNOLOGY December 2013

// NPS Energy // Arabian Gulf-based consortium consider US$ 700 million deal for NPS Energy

// Baker Hughes // To work with DuPont

// Petrobras // 12th bidding round results

// Pacific Rubiales // Petrominerales acquistion

// Repsol // Agrees with preliminary YPF deal

Oilfield services company Baker Hughes and DuPont Chemical Solutions have announced a strategic arrangement with the objective of developing more sustainable water treatment technology for the oil and gas industry.

Baker Hughes will use the chemical compounds and generators from DuPont, as well as its expertise in the application of chlorine dioxide (CLO2), in conjunction with Baker Hughes’ H2prO™ water management service to augment its pressure pumping operations.

CLO2 is used to treat water in the pressure pumping process. While this compound is in its infancy in the oil and gas industry, it has been used for more than 60 years in municipal drinking water, food processing and industrial cooling applications.

Process water in oil and gas operations is treated to prevent the growth of bacteria and other organisms to maximise the efficiency of wells.

Petrobras has acquired, alone or in partnership, 49 blocks, out of the 50 to which the company presented offers, in the 12th Bidding Round held by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP). Among the blocks acquired, 22 were in partnership, and 16 of them will be operated by Petrobras and six by partners.

The value of signature bonus to be paid by Petrobras is R$ 120 million, in addition to R$ 23 million to be paid by partners. The sum of these amounts, which reaches approximately R$ 143 million, corresponds to 87% of the total bonus to be collected in the round.

The blocks offered in the 12th Bidding Round are located in new exploratory frontiers and in mature basins. The strategy adopted by Petrobras is to increase its reserves and production of natural gas in the vicinity of existing production facilities.

Canada-based Pacific Rubiales has acquired all of the issued and outstanding shares of Petrominerales, thus completing its acquisition of the company.

The acquisition of Petrominerales also includes Colombia’s Rio Ariari exploration block, which covers an area of 760 000 acres in the southern Llanos Basin. This large block is part of the same heavy oil belt that includes the Rubiales, Quifa and CPE-6 blocks and is located approximately 80 and 200 km southwest of the CPE-6 and Rubiales/Quifa fields respectively.

To date, Petrominerales has drilled 30 wells on this block, resulting in multiple discoveries showing oil of 9 - 10˚ API gravity. The Rio Ariari block is strategic to Pacific Rubiales’ core expertise in heavy oil development in Colombia. The company expects to include the newly acquired Petrominerales blocks in its year-end reserve and resource reports.

Repsol’s board has unanimously agreed to begin formal talks with the Argentinian government over compensation for assets that were seized last year.

A statement released by the company said, “With the aim of developing a preliminary agreement, Repsol has decided to start talks soon between its teams and the Argentine government to find a fair, efficient and quick solution to the controversy.”

Buenos Aires’ nationalisation of YPF last year damaged ties between Spain and Argentina. Although the compensation is an important goal for Spain, it has taken on increased importance in Argentina as the country seeks to reassure wary foreign investors that their assets in the country are safe.

A consortium of Arabian Gulf-based investors, headed by Fajr Capital, is considering a US$ 500 - 700 million deal for Dubai-based NPS Energy.

The potential bid comes after the collapse of an earlier agreement between NPS Energy and Aker Solutions. Aker had agreed to pay US$ 460 million, including US$ 110 million in debt, in May last year but a final agreement was never reached.

According to sources, aside from Fajr Capital, other investors in the consortium include APICORP, a development bank founded by OPEC and the Saudi Arabian investment holding company, Zamil Group.

One source stated that, “A regional consortium makes a lot of sense for NPS as the asset is pretty large for

a single local buyer and [it] looks like internationals are not too keen.”

NPS Energy, (part of the oilfield services company, National Petroleum Services) describes itself as “the largest regionally-owned services provider in the Middle East”, employs 800 - 900 people and offers various oilfield services such as well logging and test, pressure pumping, wireline services, cementing and coil tubing.

Demand for oilfield services in the Middle East has risen in recent years, as has global demand for hydrocarbons. NPS Energy, which counts Saudi Aramco and Qatar Petroleum as two of its clients is reported to have made pre-tax earnings of US$ 50 million last year.

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Continuously improve your reservoir understanding and results through our Shale Science Alliance.

Page 12: Duraband®NC Hardbanding · 2016. 3. 9. · Andy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its

Oil and gas companies all around the world face tremendous pressures to produce hydrocarbons efficiently and

economically. Labour, material and service costs are rising, while the commodity price for gas in North America remains depressingly stagnant. While many factors are out of an operator’s control, a host of new drilling and completion technologies allow firms to manage drilling costs, reduce time from spud to completion and increase production per acre.

PlanningWith the ascendency of unconventional shale gas and oil plays (generally known as resource plays), much of the traditional exploration risk has been reduced. But in order to be profitable, each detail of an unconventional play – well density, drilling process, stimulation technique and a host of other parameters – must be carefully planned prior to execution.

Several service companies offer integrated operations (IO) software that allows companies to co‑ordinate geophysical, geological and engineering disciplines, including Halliburton’s CYPHERSM, Baker Hughes’ JewelSuite and Schlumberger’s Petrel. IO software allows an inter‑discipline team to access a master database in which every pertinent nugget of information is available, and added value is universally accessible. A team can use integrated seismic, geological and petrophysical data to initially determine the optimal well spacing patterns, length of well laterals, stimulation patterns and surface processing facilities.

Cost‑effectiveness is a major consideration while planning a resource play well. The drilling engineer has to decide, for instance, at what depth to kick‑off a lateral; if 10 000 ft and 3.5˚ dog‑leg is chosen, then less footage is drilled overall, but there is a higher possibility of getting stuck. If the engineer chooses to kick‑off at 8000 ft and have a 3˚ dog‑leg, there is less risk of sticking and torque and drag, but the well footage is longer. Hundreds of design scenarios can be compared to optimise the best combination in terms of time, risk and cost.

10

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Oilfield Technology correspondent Gordon Cope, looks at recent and upcoming developments across a broad spectrum of technologies

that are driving the industry forward.

11

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12OILFIELD TECHNOLOGYDecember 2013

Return on investment (ROI) is also critical. A 4000 ft lateral might increase production seven times over a vertical well, and a 5000 ft lateral might increase production 7.5 times. The engineer can run a score of scenarios to determine if the 7% increase in production is worth enough to recover added costs.

Cost‑effectiveness must be balanced with drilling performance. Much of the planning stage focuses on controlling torque, drag and sticking and slipping. Torque is the amount of circumferential force on the bottomhole assembly (BHA). Drag is the amount of axial force as the drill string pushes down into the rock. Excess torque and drag can cause loss of directional control, a tendency for the hole to spiral and an increase in sticking and slipping. Sticking occurs when the bit is over‑engaged in the rock and it stops drilling; energy builds up in the string and eventually overcomes the stick, and the bit slips, causing vibration and damage to the BHA. Analytical software can look at the behaviour of the bit during various rates of penetration. Direction software is used to look at the various trajectory forces on the bit as it cuts a curve through a formation.

RigsNew rig technologies are playing an important role in reducing drilling time. Many operators are taking innovations that were developed for offshore wells and adapting them to onshore use. The conventional rig with fixed derrick and manual rig floor is rapidly being replaced by automated drilling rigs (ADRs). The derrick has been superseded by a self‑erecting hydraulic telescoping mast. The mast itself has a hydraulic top drive built in, and is equipped with a torque wrench and automatic pipe handler. Conventional manual tongs have been upgraded to hydraulic power tongs.

The ADR operator uses digital controls to set up the various functions and operating parameters for each well (such as upper and lower hoist limits and speed), using the rig’s programmable logic controllers (PLCs). The rig functions are controlled by various joy‑sticks, including the drawworks joystick that raises, lowers and stops the travelling blocks, and the top‑drive joystick that operates the pipe handler rotation. Drilling information can be displayed in real time, and compared to historical performance in order to consistently optimise weight on bit (WOB) and rate of penetration (ROP).

ADRs reduce non‑productive time (NPT) dramatically. While conventional rigs may require 20 loads to move from site to site, comparable ADRs can have as little as four, with the self‑erecting mast and other components mounted onto trucks, trailers and skids. Some rigs that are designed to drill multiple wells on the same pad use a hydraulic system in the substructure to ‘walk’ the rig at speeds of 15 ‑ 30 ft/hr between wells. These innovations can add 45 ‑ 75 drilling days per year compared to a conventional rig of similar capabilities.

Switching fuels from diesel to natural gas on drill and service rigs has the potential to reduce costs significantly. EQT Corporation has two bi‑fuel drilling rigs operating in West Virginia. The newest rig uses onsite natural gas that has been conditioned for direct injection into the generators. The two rigs alone will create savings of US$ 400 000 per year. The company has plans to add several more bi‑fuel rigs this year. Apache Corp, a major gas producer,

is working with Halliburton and Schlumberger to implement bi‑fuel fracturing systems. The team has conducted several successful tests in Oklahoma, and estimates that energy costs for each fracture were reduced from US$ 123 000 to US$ 74 000.

MudDrilling mud is designed with several important functions in mind; keeping the hole clear of cuttings, cooling the drill bit face and lubricating the drill string/wall interface. But as wells penetrate into ever‑deeper formations, temperature and pressure conditions start to break most conventional mud mixes down. M‑I Swaco recently launched the RHADIANT drilling fluid system that can remain stable through drilling and logging right up to the 500 ˚F threshold. According to the company, it is specially formulated to maintain a stable rheological (the flow of matter in a liquid state) profile. The result is an ultra‑thin and slick filter cake deposit that does not interfere with logging, casing and cementing operations.

Baker Hughes has devised a water‑based drilling fluid system that improves well bore stability and helps operators increase drilling efficiency in extended lateral sections in unconventional shale plays. Tests show that the LATIDRILL system improves wellbore stability by controlling clay hydration, which can lead to sloughing shale and borehole enlargement. Baker Hughes says the system reduces pore pressure transmission, minimising or even eliminating mud losses. Drilling efficiency is improved through the addition of proprietary lubricants that coat metal surfaces, drill cuttings and formation walls to reduce torque and drag, particularly in high‑pressure/high‑temperature applications. The lubricants also allow for the delivery of greater amounts of hydraulic horsepower to the drill bit and result in faster rates of penetration.

Drilling fluids materials are also getting much more sophisticated. Drillers are experimenting by replacing barite with 5 μm‑sized particles of manganese oxide. The manganese oxide weights up the mud, but does not plug up the reservoir, allowing for greater permeability at the reservoir/wellbore interface. Industry participants note that by designing a sophisticated drilling fluid process, the operator can increase production by 20 ‑ 30%.

MotorsSeveral advances have been made to directional drilling. Steerable mud motors, which use a mud‑driven turbine in the BHA, are now being replaced by rotary steerable systems (RSS). There are two distinct RSS types. A push‑the‑bit tool has a series of pads that rotate with the string and push on the side of the borehole and exert a force in order to deflect the bit in the direction the operator wants to drill. The point‑the‑bit tool has an electric motor that is offset on the drive shaft. The electric motor rotates in the opposite direction of the drill string, holding the shaft geostationary and keeping the tool face pointed in the desired direction.

The direction of the steerable tool is measured while drilling (MWD), using a directional module that measures inclination and azimuth using triaxial magnetometers and gravity sensors. The system contains a transmitter/receiver to send data uphole through the mud system and receive commands

Page 15: Duraband®NC Hardbanding · 2016. 3. 9. · Andy Smith, ABUTEC Industries, USA, compares and contrasts the regulations and uses of flaring devices inside the Williston Basin and its

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