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Increasing Your Rig Move Efficiency

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Page 1: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Increasing Your Rig Move Efficiency

Page 2: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

International Association of Drilling Contractors

North American Rig Count for week ending 3 May 2013

10370 Richmond Ave, Suite 760 Houston, TX 77042 USA Phone: +1 713 292 1945 Fax: +1 713 292 1946

http://www.iadc.org/rigcount.htm Source: Baker Hughes Incorporated

Country This Week Last Week Last Month Last Year

United States 1764 1754 1738 1965

Canada 121 122 206 131

Presenter
Presentation Notes
Key components to a successful operation
Page 3: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Back to the Basics

--- Leadership

------ Process

Presenter
Presentation Notes
Key components to a successful operation
Page 4: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

USMC Leadership Traits Applied

--- 11 Principals

------ 14 Traits

Presenter
Presentation Notes
Key components to a successful operation
Page 5: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Rig Move Success

Plan

Communi-cation

Execution Debrief

Lessons Learned

Presenter
Presentation Notes
Operations strategy used in some form to communicate the process to achieve results
Page 6: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Challenges to Success

--- Who’s in charge?

--- Turnover and Competency

--- Costs

Presenter
Presentation Notes
Key components to a successful operation
Page 7: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

--- Superintendent and Co. Man

--- Tool Pusher and Drilling Crew

--- Truck Pusher and Crew

Resources Available

Presenter
Presentation Notes
Key components to a successful operation
Page 8: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

8.5 9

8.5

Rig 1 Rig 2 Rig 3

Average

1st Move

2nd Move

Marcellus Shale Area

Presenter
Presentation Notes
A NEW LEVEL OF PERFORMANCE Cabot Oil and Gas’ operational requirement for 4 day average mobilizations using 3 different drilling contractors and initial results
Page 9: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Potential 2013 Savings

--- Small operator in Marcellus

--- 4 Rig fleet

--- 30 day well cycle (22 days drill, 8 days to move)

--- Reduce average move time by 3 days

--- Saves up to $4.38 Mil

--- Drill 5.41 more wells with just 4 rigs

Presenter
Presentation Notes
Cabot Oil and Gas
Page 10: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

5.04

3.66 4.06

4.84

6.3

Rig 1 Rig 2 Rig 3 Rig 4 Rig 5

Average

1st Move

2nd Move

Mid-Continent Area

Presenter
Presentation Notes
A NEW LEVEL OF PERFORMANCE Client’s operational requirement for 4 day average mobilizations using 3 different drilling contractors and initial results
Page 11: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

Potential 2013 Savings

--- Operator in Mid-Con

--- 30+ Rig fleet

--- 21 day well cycle (17 days drill, 4 days to move)

--- Reduce average move time by 1 days

--- Saves up to $10.24 Mil

--- Drill 17 more wells with 30 rigs

Presenter
Presentation Notes
Key components to a successful operation
Page 12: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

1,764 US Rigs

17,640 Mobilizations

$529,200,000

Potential gross savings/year

Presenter
Presentation Notes
IADC rig count X 10 mobilizations per year X $35,000.00 per day spread rate = Total for 1 day of Gross savings Estimate averaged for all rigs and operators costs. Assumes only one day savings and no additional vale to the operator for reserves appreciation from producing and proving reserves sooner than planned.
Page 13: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

How to Sustain Results

--- Leadership Development

------ Process

Performance, Safety,

Predictability, Profitability

Presenter
Presentation Notes
Key components to a successful operation
Page 14: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread

“It’s not the will to win that matters – everyone has that.

It’s the will to prepare to win that

matters.” Bear Bryant

Presenter
Presentation Notes
Key components to a successful operation
Page 15: Increasing Your Rig Move Efficiency - IADC · 2020-02-02 · IADC rig count\爀ऀ堀 洀漀戀椀氀椀稀愀琀椀漀渀猀 瀀攀爀 礀攀愀爀屲 X $35,000.00 per day spread
Presenter
Presentation Notes
Key components to a successful operation