OCTOBER 2018 / DEFINING CONVENTIONAL, SHALE AND OFFSHORE TECHNOLOGY FOR OIL AND GAS / WorldOil.

com

ADVANCES IN DRILLING
Advancements lead the way
to autonomous drilling

DRILL BIT INNOVATIONS

Manufacturers bring new
technologies to fruition

RESERVOIR MANAGEMENT
Data-driven solutions
improve productivity

SHALETECH: NIOBRARA
Fates hinge on election,
cracking the code
Power is our craft.
We engineer technologies to drive your BHA, supplying the power and
performance you need in any application.

To learn more, visit nov.com/downhole

© 2018 National Oilwell Varco | All Rights Reserved


43
SPECIAL FOCUS:
ADVANCES IN DRILLING
29 The path to autonomous
directional drilling
J. Marck / L. Vitta
35 Direct drillstring measurements
in drawworks improve
autodriller performance
I. Soukup / M. Boudreaux
J. Anderson / R. Ramirez
J. Shim
43 Advancing drilling operations
through collaborative work
and innovation
T. Horn
DRILL BIT INNOVATIONS
49 PDC bit technology
evolves to 4D cutters
R. Rahmani
51 Manufacturers bring new
bit technologies to fruition
C. Fleming
RESERVOIR MANAGEMENT
57 Data-driven solutions
improve oil field productivity
G. Breerwood / C. Nåden
CONTENTS
OCTOBER 2018 / VOL. 239 NO. 10
88
62
SHALETECH: NIOBRARA/UINTA COLUMNS
62 Fates hinge on election, 9 First oil
cracking the code A job done well
J. Redden 15 Energy issues
There is sand, and then
there is sand
DIGITAL TRANSFORMATION
17 What’s new in exploration
69 Analytics can optimize oil Where are the oil reserves?
and gas equipment
19 Drilling advances
performance, predict failures Windows to the hole
A. Weatherhead
21 What’s new in production
73 Chemical management Let’s party
goes digital 23 Executive viewpoint
P. Gould 21st century commercialization:
Where are we now?
REGIONAL REPORT: MENA 25 Innovative thinkers
John Costagna: Fostering the
78 The heart of global oil industry’s human intelligence
exports thrives amid
94 The last barrel
geopolitical tensions Everything old is new again
M. Cowart
NEWS AND RESOURCES
ABOUT THE COVER
11 World of oil and gas
On March 29, 2018, day three of rig-up
for Latshaw Drilling’s Rig 9 takes place at 27 Industry at a glance
FourPoint Energy’s Hefley 4A wellsite in 86 People in the industry
Texas Railroad District 10. The site is in the
88 Companies in the news
Texas Panhandle, on Texas state highway 152,
7 mi east of the town of Wheeler, in Wheeler 90 New products and services
County. Rig 9 features an SCR-powered,
91 Advertisers’ index
1,700-hp system. The Hefley 4A was spudded
on April 9, and the rig was walked over to 92 Advertising sales offices
the next well on May 21. TD on this horizontal 93 Meetings and events
well, which was targeting natural gas, was
17,449 ft. Photo: Latshaw Drilling Company.
World Oil® / OCTOBER 2018 3

Industrial Rubber
Circulating Equipment
Industrial Rubber, Inc.’s Swages are light and easy to
handle, yet robust enough to withstand high pressure cir-
culating. The 1502 union sub is easy to replace should the
need arise. Swages are available in any size or style of casing
thread – just let us know what you need!
Features of the IRI Swage Include:
•Dished Top Design Reduces Weight by up to 33%
•1502 Union Easy to Maintain or Replace
•ACME Threaded Connections – No Pipe Threads
•One-piece Design allows for High-Pressure Use
•Available for any size casing, with any style threads
Industrial Rubber, Inc.’s Circulating Heads comple-
ment the Industrial Rubber line of Cementing Heads. IRI
Circulating Heads and Cementing Heads utilize a common
Quick Connect sub that allows quick change out from
Circulating Head to Cementing Head. This makes for a
convenient circulating tool when used either in conjunction
with an IRI Cementing Head or as a standalone unit.
Features of the IRI Circulating
Head Include:
•Quick Coupling Union allows
fast, easy connection
to Casing String
•Plugs can be dropped through the
Circulating Head assembly
by simple removal of the
Circulating Head Cap.
•Available for any size casing, with
any style threads
Oklahoma City, OK
Toll-Free: 1-800-457-4851 • Fax: (405) 703-7049
www.iri-oiltool.com
4 OCTOBER 2018 / WorldOil.com
Mailing Address: PO Box 2608
Houston, TX 77252-2608, USA
Phone: +1 (713) 529-4301
Fax: +1 (713) 520-4433
WorldOil.com
PUBLISHER Andy McDowell
EDITORIAL
Editor-in-Chief Kurt Abraham
Technical Editor Craig Fleming
Associate Editor Emily Querubin
News Editor Michele Cowart
Contributing Editors
Dr. A. F. Alhajji, Middle East Dr. Jeffrey M. Moore, Asia-Pacific
Dr. Roger Bezdek, Washington Mauro Nogarin, Latin America
Ron Bitto, Offshore Dr. Øystein Noreng, North Sea
David Blackmon, Reg. Affairs Mark Patton, Water Management
Robert Curran, Canada
Bill Head, Exploration
Dr. William J. Pike, Energy Issues
Jim Redden, Drilling
Don Francis, Production Dr. Jacques Sapir, FSU
Raj Kanwar, South Asia Mike Slaton, At Large
Saeid Mokhatab, LNG Russell Wright, At Large
MAGAZINE PRODUCTION / +1 (713) 525-4633
Vice President—Production Sheryl Stone
Manager—Advertising Production Cheryl Willis
Assistant Manager—Advertising Production Krista Norman
Manager—Editorial Production Angela Dietrich
Assistant Manager—Editorial Production Lindsey Craun
Artist/Illustrator David Weeks
Graphic Designer Andreina Keller
ADVERTISING SALES
See Advertising sales offices
CIRCULATION / +1 (713) 520-4498 / Circulation@GulfPub.com
Director—Circulation Suzanne McGehee
EDITORIAL ADVISORY BOARD
Chairman—Doug Valleau, President, Strategia Innovation and Technology Advisers, LLC
Ben Bloys, Manager, Los Alamos Technology Alliance, Chevron
Eric Carre, Executive Vice President–Global Business Lines and Chief HSE Officer, Hal-
liburton Company
Dan Domeracki, Vice President, Government and Industry Relations, Schlumberger,
and Chairman, Petroleum Equipment and Services Association
Deepak M. Gala, SME, Well Control Engineering and Relief Well Planning, Shell
John Gellert, CEO, SEACOR Marine Holdings, and Chairman, National Ocean
Industries Association
Alexander G. Kemp, Professor of Petroleum Economics, and Director, Aberdeen Centre
for Research in Energy Economics and Finance, University of Aberdeen
Hege Kverneland, Corporate Vice President and Chief Technology Officer, National
Oilwell Varco
Trent Latshaw, President, Latshaw Drilling Co. LLC, and member,
IADC Executive Committee
Keith Lynch, Wells Operations Advisor—Unconventional Assets, ConocoPhillips
Dr. D. Nathan Meehan, Vice President, BHGE, and Managing Director,
Gaffney-Cline & Associates
Douglas C. Nester, Consultant
David A. Pursell, Senior Vice President, Planning and Energy Fundamentals,
Apache Corporation
Art J. Schroeder, Jr., CEO, Energy Valley, Inc.
Svein Tollefsen, Manager, Reservoir Technology, Equinor ASA
Robert E. (Bob) Warren, President, Baclenna, Inc.
World Oil is indexed by Business Periodicals Index, Engineering Index Inc., and
Environmental Periodicals Bibliography. Microfilm copies are available through University
Microfilms International, Ann Arbor, Mich. The full text of World Oil is also available in
electronic versions of the Business Periodicals Index.
World Oil (ISSN 0043-8790), est. in 1916 as The Oil Weekly, is published monthly by Gulf
Energy Information, 2 Greenway Plaza, Suite 1020, Houston, TX 77046. Periodicals postage
paid at Houston, Texas, and at additional mailing offices. World Oil and The Oil Weekly are
registered trademarks of Gulf Energy Information.
Subscriptions: World Oil is available on a complimentary Request Subscription basis to persons
actively engaged in the exploration/drilling/producing phase of the oil and gas industry who
are in a position to recommend, specify or approve the purchase or use of equipment or ser-
vices used in their operations. (When requesting subscription, state title, company name and
nature of business as initial qualifications.) Persons who do not recommend, specify or approve
the purchase or use of equipment or services (or persons in a related field of service or indus-
try) can order subscriptions at the following rates: one year $399, two years $679, three years
$897. AIRMAIL DELIVERY: Outside North America additional, $175/year. Single copies: $35
each, prepaid. PAYMENT MUST ACCOMPANY ORDER (make checks payable to World Oil).
Postmaster: Send address changes to World Oil, PO Box 2608, Houston, TX 77252-2608.
Subscription services/address changes: World Oil, Circulation Dept., PO Box 2608,
Houston, TX 77252-2608. Phone: +1 (713) 520-4468. E-mail: circulation@gulfenergyinfo.com.
Article reprints: World Oil, Cheryl Willis, Gulf Energy Information, Advertising Production
Manager. 2 Greenway Plaza, Suite 1020, Houston, Texas 77046. Phone: 713-525-4633.
Fax: 713-525-4615. Email: cheryl.willis@gulfenergyinfo.com.
Copyright © 2018 by Gulf Energy Information LLC. All rights reserved.
President/CEO John Royall
CFO Alan Millis
Vice President Andy McDowell
Vice President, Finance and Operations Pamela Harvey
Vice President, Production Sheryl Stone
Publication Agreement Number 40034765 Printed in USA
Other Gulf Energy Information titles include: Petroleum Economist©, Gas Processing™,
Hydrocarbon Processing®, Pipeline & Gas Journal and Underground Construction.
Connecting What’s Needed with What’s Next™

Visit us at ADIPEC
Booth 12250

ACHIEVE BETTER
INSIGHTS IN ASSET
INTEGRITY

Copyright © 2018 Oceaneering International, Inc. All rights reserved.

Oceaneering does things differently, creatively, and smarter by helping you make informed
decisions to mitigate risk, increase production availability, and maximize return of efforts.

As your trusted partner, our unmatched experience and field-proven portfolio of advanced and
conventional NDT inspection technologies, integrity engineering services, and inspection
management capabilities enable us to meet your asset integrity requirements.

Connect with what’s next at oceaneering.com

 TechTalk
Oilfield pump replacement proves
more cost-effective than repair
Some pumping-service companies choose to extend the
lives of their aging pump fleets by repairing them as they fail,
to “keep them alive” in the belief this is a better business deci-
sion than replacement.
In the case of high-pressure oilfield pumps, any short-term
savings realized by such a decision are more than offset by
long-term cost increases and lost business opportunities.
Objective evaluation of the most important factors impact-
ing the decision to repair or replace pumps makes the correct
choice clear. In most cases, it makes better business sense to
replace, rather than repair.
AGE OF YOUR EXISTING PUMP FLEET
This factor is unavoidable: the performance and reliability of
all pumps, regardless of source, diminish over time. Structural
cracks, leaks, and metal fatigue are among the failure modes
virtually certain to occur at some point.
REAL COSTS OF REPAIR
Repair has a significant cost in downtime. And downtime
is lost revenue that can never be regained. If you consider
pump reliability and performance as a decline curve, repairs
might flatten the curve slightly. But repairs won’t eliminate an
extremely important factor: risk of catastrophic failure.
RISK
Avoiding the assumption of unnecessary risk is perhaps the
biggest reason to operate an up-to-date pump fleet. Business
risk from downtime is serious and costly, of course, but even
more serious—and with potentially far greater costs—are HSE
risks in the case of catastrophic pump failure.
Fig. 1. Thunder 3,000-bhp quintuplex pump. Also available
is a triplex 2,550-bhp model. Both pumps have proprietary
performance features, such as an 11-in. stroke and optional Smart
Pump monitoring technology.
6OCTOBER 2018/WorldOil.com
LIMITATIONS OF REFURBISHING
Refurbishing newer pumps once or twice can be a sound
alternative to replacement. But inevitably, reconditioning of
an aging fleet becomes a poor business decision. Even a suc-
cessfully refurbished pump will have substantial limitations; it
will be incapable of performing at the level of pumps with
the newest technology, and it will unavoidably require more
frequent maintenance.
EXCESSIVE DOWNTIME
As pumps travel along their “decline curve,” consumable
parts, such as valves and seats, plungers, and packing, begin to
wear more quickly and thus require more frequent replacement
or maintenance. This means more downtime. While routine
maintenance is expected and budgeted, aging pumps begin to
require excessive maintenance, and unexpected repairs force
unscheduled downtime.
HIGHER PERFORMANCE, GREATER FLEXIBILITY
New pumps perform more efficiently. For example, Gard-
ner Denver’s newest pump designs have an 11-in. stroke. This
design improvement delivers greater flows at lower RPM. Run-
ning at lower RPM means reduced wear on consumable parts,
which reduces maintenance costs and downtime. Newer
pumps are also designed for today’s severe duty applica-
tions. This gives the service company more fleet flexibility and
deployment options.
ADVANTAGES OF STANDARDIZATION
Assembling a fleet of pumps from a variety of sources may
have some short-term advantages. But these are usually more
than offset by the introduction of unnecessary cost and opera-
tional complexity. Fleet standardization allows companies to
order and stock frequently used consumable parts, and sys-
tematize their maintenance procedures. The result is lower cost
and higher efficiency.
CASE STUDY: THUNDER PUMP
A major pumping service’s field experience with the Gardner
Denver quintuplex Thunder Pump illustrates the advantages
that only the latest pump technology can deliver.
In just over four months, the company’s Thunder Pump has
worked for eight clients, on 10 wells, with a total of 4,534 cycles
per hour, without downtime. According to the company, “By
using [this] powerhouse pump, clients receive unparalleled
performance at extraordinary operating efficiencies, resulting
in significant economic savings for large-scale operations in the
Duvernay and Montney.”
OVERVIEW
• Project Scope: Pumping pressures above 55 MPa
and multi-well pads
• Location: Duvernay and Montney
• Rate: 8-20 cubes/min
• Total Pumping Hours: 368 hours to date (500 hours
SPONSORED CONTENT
 PUMP REPLACEMENT VS.TAGLINE
REPAIR

on the power end before implementing in the field) Fig. 2. Gardner Denver quintuplex and triplex fluid ends feature
• Total Cycles: 1.67 million cycles (2 million cycles on the Falcon Technology, which reduces maintenance time for
consumable changes.
power end before implementing in the field)

RESULTS

Increased reliability
• Thunder Pump has been running
for 368 hours, representing 1.67 million
cycles without any downtime.
• 11-in. stroke length: Requires less RPM to get the
same volume as the standard 8-in. stroke.
• Stainless steel construction for superior
corrosion resistance.

Reduced planned maintenance and NPT

Traditional pumps must be taken out of service for mainte-
nance every 3,000 hours on a standard 2,500-hp configuration.
Thunder Pump’s planned maintenance is synced to the stan-
dard maintenance interval of all major components on a frac
trailer, resulting in less downtime.

Decreased environmental impact Fig. 3. Pump University is a mobile classroom that travels to
• A standard 12-pump job requires eight Thunder Pumps, customer facilities. Gardner Denver experts train customer
resulting in a smaller environmental footprint. personnel to properly maintain pumping equipment.
• Carbon footprint is reduced by two-thirds, because
fewer pumps are needed.
• Carbon emissions are decreased by using dynamic
gas blending.

Increased safety
• Fewer pumps are needed to do the same job, meaning
fewer professionals to staff the equipment onsite.
• With 30 percent less maintenance, fewer professionals
are required to maintain the equipment.
• There is a decreased risk of motor vehicle incidents,
because there is less equipment moving to and from site.

ADVANTAGES OF PUMP TECHNOLOGY

ONLY FROM GARDNER DENVER

Unsurpassed warranty. A good way to quickly evaluate a com-
pany’s pump technology is to look at its warranty. Because
Gardner Denver offers the best pump technology, it also offers
the best warranty. This is another big advantage of an updated
pump fleet over an aging fleet. The warranty helps operators to
budget and predict repair and maintenance costs.
Advanced design features. Thunder Coating proprietary
bearing-coating technology is a dry-film lubricant that reduces
scuffing, friction, and adhesive wear. Plungers feature a coat-
ing that is harder and denser than the base steel. Counter-
balanced crank optimizes firing-order; and an optimized fluid
end design provides more than double the life of competing,
10-in. stroke pumps.
Serviceability advantages, such as the Falcon Spring
Retainer Technology; replaceable stuffing boxes (which allow
convenient plunger size conversion); and through-stud, fluid
end design, are Gardner Denver innovations that improve per-
formance and streamline maintenance.
The widest range of options. Pump fleets can be customized
to the operator’s exact requirements, with options such as:
• DNV, ABS, PED, or other third-party certifications.
• Patented self-tightening valve cover retainer
lock system.
• Dual-discharge flanges with 8 bolt connections
for added safety.
• Customizable suction manifolds.
Redline packing. Gardner Denver’s Redline packing is a
recent innovation available for Gardner Denver and competi-
tor frac and well servicing pumps. Its proprietary material and
manufacturing process delivers the longest lifespan of any
available packing.
Experience 360. When it comes to oilfield pumps, Gardner Den-
ver’s history, technology, resources, and experience are unsur-
passed. Experience 360 is the central access point for customer
benefits, such as Pump University, field service, core exchange
program, parts on demand, repair services, and much more.
It’s easy to see why oilfield pump replacement is more cost-
effective than repair. An aging, old-technology pump fleet in
need of frequent repair has no advantages over a standard-
ized fleet of new pumps. The opposite is true—updating your
fleet gives you extremely powerful business and technology
advantages that simply aren’t available any other way.

SPONSORED CONTENT World Oil® / OCTOBER 2018 7


A job done well
Here at World Oil, one of our greatest
assets is our Editorial Advisory Board,
composed of some of the best and bright-
est individuals in our industry. Repre-
senting what is probably a combined 500
years of experience and knowledge, our
advisors come from all upstream sectors,
including operators to academia. It is in-
valuable to be able to pick up the phone
or send an email and get their unfiltered,
off-the-record viewpoints and advice.
Helping yours truly liaison with this
group and occasionally “corral” them has
been our indefatigable Advisory Board
chairman, Dr. William J. “Bill” Pike, who
has served with distinction in this role for
8+ years. It has been an honor and plea-
sure to work with him and benefit from
his own extensive knowledge and coun-
sel. And I can always count on Bill for
some well-timed comedic relief.
So, it is with some sadness, but also
great appreciation, that we announce that
Bill is retiring as Editorial Advisory Board
chairman, effective with this October is-
sue. He will continue to write his column
through the December issue, and then
that page will retire, as well. But lest you
think that he will disappear from World
Oil entirely, rest easy, as he will continue
to serve as a contributing editor. In that
role, Bill will work with us to develop ar-
ticles on the various E&P R&D projects
being run by DOE’s National Energy
Technology Laboratory, with which he
serves as a contractor. So, look for those
new articles to begin in 2019.
Meanwhile, we are pleased to an-
nounce that current Advisory Board
member Doug Valleau is being promoted
to chairman. Doug has a wealth of knowl-
edge and experience, having served in
various management and geoscience po-
sitions with Gulf Oil, Monsanto, BHP,
Maxus, Burlington Resources, Cono-
coPhillips and Hess Corporation, before
taking early retirement with the latter firm
as chief geologist at the end of 2016. He
now has a thriving consultancy and serves
as a co-chairman of URTeC.
FIRST OIL
KURT ABRAHAM, EDITOR
Additionally, we are happy to an-
nounce that Halliburton Executive V.P.
and Chief HSE Officer Eric Carre is join-
ing our Advisory Board, effective this
month. In 1991, he began what is now a
27-year career at Halliburton, and in his
current position, is in the forefront of
evaluating and implementing a variety of
new technologies. Also joining our Advi-
sory Board is Ms. Hege Kverneland, Vice
President and Chief Technology Officer
at NOV. She has over 20 years of engineer-
ing and product management experience.
She assumed her current role in 2009, is
involved with several associations, and is
in high demand as a speaker.
Looking deeper into Russian num-
bers. On page 21, our Production col-
umnist, Don Francis, mentions that the
EIA believes that the U.S. earlier this year
topped Russia and Saudi Arabia as the
world’s largest crude producer. But there’s
a Russian side to this story, too.
On Oct. 2, the Russian Energy Minis-
try claimed that the country’s oil output
was at a post-Soviet Union high of 11.36
MMbpd. This is very interesting, as our
records at World Oil indicate that the all-
time Soviet production high, including
Russia and the other 14 former republics,
was 12.483 MMbopd in 1987, thanks to
former USSR President Mikhail Gor-
bachev browbeating production associa-
tion chiefs into overproducing. So, if we
add the current Russian output level to
the 2.80 MMbopd produced by the other
former Soviet republics, then total pro-
duction from the old USSR sits at 14.16
MMbopd, 13.4% higher than 1987’s level.
Get out and vote. To our U.S. readers,
this editor implores you to go to the polls
next month and vote for those officials
and candidates that you truly believe will
support the domestic oil and gas industry.
While much has been accomplished by
the Trump administration, itself, some
additional items will require congressio-
nal action. Furthermore, a pro-industry
majority will be needed at the Capitol to
protect what has been done already.
IN THIS ISSUE
29 The path to autonomous
directional drilling. As ex-
plained by two Halliburton authors, pre-
dictive analytics, the IoT and A.I. are
digital, automated technologies rapidly
transforming the E&P industry. Accord-
ingly, advancements in electronics and
sensor technology, sophisticated algo-
rithms, and high-speed telemetry are
leading the way toward automated drill-
ing. Thus, in the field, drilling operations
are being executed according to a speci-
fied well plan and predetermined drilling
parameters—at a rate and accuracy that
cannot be matched by human operators.
51 Manufacturers bring new bit
technologies to fruition. In
his annual review of drill bit technology,
Technical Editor Craig Fleming says that
despite suffering major revenue losses
during the downturn, the oilfield services
sector has been exemplary in funding R&D
and launching new drill bit technologies,
designed to improve ROP and useful bit
life. With continuous advances in PCD cut-
ter technologies, PDC bits have become
dominant in most applications. However,
in extremely hard formations, operators
still rely on roller cone technologies.
62 ShaleTech: Fates of Niobr-
ara and Uinta shales hinge
on election, cracking the code. Con-
tributing Editor Jim Redden reports that
in contentious Colorado, the DJ Niobrara's
future is jeopardized by a potentially deci-
mating ballot initiative in November, which
would quintuple setbacks and put nearly
all prospective, privately-held acreage off-
limits to new wells. The Uinta faces take-
away limitations of its own that involve
zones with a high paraffin content, which
requires heated transport to avoid turning
into a waxy blob.
ŝŝKURT.ABRAHAM@WORLDOIL.COM
World Oil® / OCTOBER 2018 9
 Basintek is now Abaco
Same people, products and proven performance. New name.

As Basintek, we have spent years developing the best methodologies to deliver the ideal power
section solution for all your drilling and thru tubing needs. Now, to align with our parent company,
Abaco Energy Technologies, we have adopted the new name Abaco Drilling Technologies.
We are the same company with the same talented people and manufacturing capabilities, offering
you an elite portfolio of leading edge elastomer and power section technologies that increase
efficiency, improve safety and maximize downhole performance.

Learn more at AbacoDrilling.com

LEADING POWER SECTION TECHNOLOGY

© 2018 Abaco Drilling Technologies. All rights reserved.


DISCOVERIES & DEVELOPMENTS ///////////////////////////////////////////////////////////
LNG Canada moves forward with Canada’s
first LNG export facility
the option to expand to four units. “We believe LNG Canada is the right project, in the right place, at the
right time,” said Shell CEO Ben Van Beurden. “Supplying natural gas over the coming decades will be critical
as the world transitions to a lower carbon energy system. Global LNG demand is expected to double by
2035 compared with today, with much of this growth coming from Asia, where gas displaces coal.” Image:
LNG Canada.
CNOOC’s Penglai
project begins
production in the
Bohai Sea, offshore
China
CNOOC (operator, 51%), alongside
partner ConocoPhillips (49%),
has reported first oil from Penglai
19-3 field 1/3/8/9, in the south
central Bohai Sea, nearly 50 mi
southeast of Penglai City, China.
The Bohai Sea is the innermost
bay of the Yellow Sea, on the
northeastern coast of China.
According to ConocoPhillips,
Penglai field remains the largest
of its kind in China, as well as one
the most productive oil assets
ever developed in the country.
The field—with an average water
depth between about 88 ft
and 108 ft—is utilizing existing
facilities, including two wellhead
platforms and a central process-
ing platform. There reportedly are
two wells producing at this time.
At peak production, the project is
expected to reach approximately
58,700 bopd in 2020. In a release,
CNOOC CEO Yuan Guangyu
said, “Successful production
commencement of Penglai 19-3
oil field 1/3/8/9 comprehensive
adjustment project will strongly
support Bohai [and] to stabilize
its production at 30 million tons
for another 10 years.”
WORLD OF OIL AND GAS
EMILY QUERUBIN, ASSOCIATE EDITOR
BP to proceed
with Vorlich
LNG Canada—with JV partners development,
Shell (40%), Petronas (25%), in the central
PetroChina (15%), Mitsubishi North Sea
Corp. (15%) and KOGAS (5%)—
have taken FID on Canada’s
first large-scale export facility
in Kitimat, British Columbia.
According to LNG Canada, the
export plant has been designed
to achieve the lowest carbon
intensity of any major plant
operating in the world today.
Fluor Corp.’s JV with JGC Corp.
has been contracted to provide
the engineering, procurement,
fabrication and construction on
the project, which initially will
consist of two liquefaction units BP has received approval from
for a total of about 14 million tons the UK Oil and Gas Authority
per year of LNG. It was reported, (OGA) for the Vorlich develop-
however, that LNG Canada has ment, targeting 30 MMboe in the
central North Sea. According to the
company, the project is part of a
program of North Sea subsea tie-
back developments that seek to
access important new production
from fields that are near existing
Wintershall gets the go-ahead infrastructure. Vorlich is a two-well
development that is situated nearly
for Nova development, offshore Norway 150 mi east of Aberdeen. It will
Wintershall Norge AS (opera- be tied back to the FPF-1 floating
tor, 35%)—alongside partners production facility (operated by
Capricorn Norge AS (20%), Spirit Ithaca Energy), in the center of the
Greater Stella Area production hub.
Energy (20%), Edison Norge AS
(15%) and DEA Norge AS (10%)— Scott Robertson, the OGA’s Central
has been granted approval for North Sea area manager, said that
Vorlich “will make an important
the Nova development, nearly 75
contribution to [the] Maximizing
mi northwest of Bergen, Norway.
Economic Recovery UK priority.”
The plan for development and
It is being developed alongside
operation (PDO) includes two
Alligin field, another satellite
subsea templates on the ocean field, situated West of Shetland,
floor that will be tied back to that will be tied back to the Glen
Neptune Energy’s Gjøa platform Lyon FPSO vessel (pictured). It is
(pictured). “As well as selecting the most economically robust solution estimated to contain recoverable
for developing the Nova field, utilizing existing infrastructure is the resources of 20 MMbbl. Both fields
most environmentally friendly solution,” Wintershall Norge Managing are anticipated to come onstream
Director Hugo Dijkgraaf said in a release. Gjøa reportedly will provide in 2020. Vorlich partners include
lift gas to the field and water injection for pressure support, as well. BP (operator, 66%) and Ithaca
According to Wintershall, the field’s total recoverable reserves are Energy (34%), while BP (operator,
estimated at approximately 80 MMboe, of which the majority is oil. 50%) and Shell (50%) are partners
Photo: Neptune Energy. in Alligin field. Photo: BP.
Total reports significant gas find offshore UK
Total (operator, 60%) has announced a significant gas discovery on the Glendronach prospect, situated
offshore UK, West of Shetland. The company says it encountered nearly 138 ft of net pay in a high-quality
Lower Cretaceous reservoir, after drilling to a final depth of approximately 14,147 ft. Preliminary tests from
the discovery, which is on Block 206/04a, confirm good reservoir quality, permeability and well production
deliverability, with estimated recoverable resources of approximately 1 Tcf. “Glendronach is a significant
discovery for Total, which gives us access to additional gas resources in one of our core areas and validates
our exploration strategy. Located on an emerging play of the prolific West of Shetland area, the discovery
can be commercialized quickly and at low cost by leveraging the existing Laggan-Tormore infrastructure,”
said Arnaud Breuillac, president of E&P at Total. Total’s partners include Ineos E&P UK Limited (20%) and
SSE E&P UK Limited (20%).
World Oil® / OCTOBER 2018 11
IS WHO WE ARE
Ariel’s knowledgeable
aftermarket workforce is
what makes us the number
one authority in natural
gas compression.
 WORLD OF OIL AND GAS
EMILY QUERUBIN, ASSOCIATE EDITOR

SpeedWise®
DISCOVERIES & DEVELOPMENTS (CONT.) //////////////////// Portfolio Analysis
Block 7 Consortium gets approval for Zama appraisal plan, Fast and comprehensive
offshore Mexico portfolio analysis
Talos Energy received approval from the National Hydrocarbons Commission (CNH), the
Mexican oil and gas regulator, for appraisal of the Zama discovery. The discovery—which is situ- • Valuation of asset
ated approximately 37 mi offshore Dos Bocas, in Block 7—was the first offshore exploration well portfolios for M&A
drilled by the private sector in Mexico’s history. It is estimated to contain more than 1 Bbbl, and
it was reported that resources could extend into neighboring blocks. According to the company, • Asset evaluations
the appraisal plan includes three new reservoir penetrations and is expected to conclude by for A&D
mid-2019. Utilizing the Ensco 8503 semisubmersible rig, the first appraisal well, Zama-2, is
expected to spud in fourth-quarter 2018. Talos is operator of the Block 7 Consortium, with a
• Prioritize future
35% participating interest. Partners include Sierra Oil and Gas (40%) and Premier Oil (25%). investments

First gas reported from Bainet,

in northeastern Romania
Raffles Energy (operator) and Prospex Oil and Gas (50%) have achieved first gas at Bainet gas
field, in the Exploration Area of northeastern Romania’s EIV-1 Suceava concession. The 378-mi2
concession—which contains an undeveloped discovery (Grancesti SE-1), as well as several other
prospects—is home to two producing gas fields that are operated by Raffles Energy (Climauti
and Dornesti South). Bainet-1 was drilled to a TD of over 1,968 ft in November 2017, encounter-
ing more than 26 ft of net gas pay. The field has been connected to the Bilca gas processing
plant, via a 1.3-mi flowline tie-back, to existing production infrastructure. The operator report-
edly is targeting an initial flowrate of 0.7 MMscfd. According to Prospex Oil and Gas, the field’s
production rate will be adjusted according to well performance and market demand.

BUSINESS //////////////////////////////////////////////////
Neptune Energy completes acquisition of VNG Norge
Neptune Energy closed its acquisition of VNG Norge in late September, becoming one of the top
five independent producers on the Norwegian Continental Shelf (NCS). The transaction, which
was announced in June, significantly strengthens the company’s equity position in the greater
Njord area. It now holds a 22.5% interest in Njord, as well as a 30% interest in the Fenja develop-
ment project. As operator of Fenja, Neptune says it will bring the subsea development onstream
in 2021 as a tie-back to the Njord production hub. Through the acquisition of VNG Norge,
Neptune adds three producing fields, two development projects and 42 licenses to its existing
portfolio. In 2017, VNG Norge reported net production of 4,000 boed, with a significant ramp-up
planned by 2022 as new production comes onstream. Likewise, net reserves and resources were
estimated to be more than 50 MMboe. Learn more about SpeedWise®
Portfolio Analysis in our new
Encana to divest San Juan assets for $480 million World Oil On Demand Webinar:
Encana Oil & Gas, a wholly- go.qrigroup.com/asset-valuation
owned subsidiary of Encana
Corporation, has agreed to
sell its San Juan assets, in
northern New Mexico, to DJR
Energy, LLC, for $480 million.
The company will divest about
182,000 net acres, which
deliver an average produc-
tion of approximately 5,400
boed, including 3,900 bpd of
liquids. DJR Energy, a private
upstream company based in
Denver, Colo., will have a total
of over 350,000 net acres in
the San Juan basin, following
the acquisition. Likewise, it info@qrigroup.com
reportedly will produce over
(+1)713.485.8800
6,000 boed and hold an inventory of over 1,100 drilling locations across the area. The transac-
tion is expected to close during the fourth quarter, with an effective date of April 1, 2018. Photo:
Encana Corp.

World Oil®/OCTOBER 201813


DR. WILLIAM J. PIKE, EDITORIAL ADVISORY BOARD CHAIRMAN
There is sand, and then there is sand
I pen this at the end of a fairly busy week
that included three days in attendance at
the Society of Petroleum Engineer’s Annu-
al Technical Conference and Exhibition in
Dallas. As usual, the conference and exhi-
bition were very well done, and the chance
to catch up with old friends, and make new
ones, was exhilarating. But this year’s event
also took me down memory lane.
West Texas sand. The event featured
a substantial focus on fracturing, which
included several frac sand providers. I
stopped at one provider’s booth, which
included a display of small bottles of
sand. It was my thought that the bottles
of sand were probably to hand out to the
passing audience, much like the pens,
koozies and tally books that lie in piles on
the front tables of most booths. I asked if
the sand was from the sand hills of West
Texas. I was told it was. I asked if I might
take a bottle. There was some hesitancy.
The booth person said they really weren’t
for distribution and, anyway, why would
I want one. I told him that I spent hours
rolling down those very sandhills as a
child growing up in West Texas. In fact,
I said, I probably rolled down the actual
sand in the bottles in the display. I got a
sympathetic look and a bottle of sand. I’m
not sure what I will do with it, but it does
bring back good memories.
It was only a couple of days later that
I was reminded of a worsening plight for
sand miners. As discussed in this col-
umn several times before, the Permian
basin of West Texas is booming, to put
it mildly. It now accounts for about 30%
of the 11 MMbopd produced in the U.S.
Unfortunately, that boom has produced a
plethora of production potential through
expanded drilling programs, far more, in
fact, than the existing export systems can
handle. The result is a huge increase in
drilled-but-uncompleted (DUC) wells.
The U.S. Department of Energy (DOE)
estimates that the number of DUC wells
in the Permian basin increased more than
40% from January through August of this
year. The large increase in DUC wells col-
ENERGY ISSUES
lided with a marked increase in demand for
sand, beginning in 2016, accompanied by
an equally large increase in sand mining in
the Permian basin. The resultant oversup-
ply has led to dramatic decreases in sand
prices. The current downturn in demand
has led to the shutting-in of five sand min-
ing plants in the U.S. Midwest, where the
sand quality is better, and the price higher.
The answer to this problem, of course,
is the expansion of the oil and gas export
system that carries Permian basin produc-
tion to refining and marketing. Solutions
are in progress, but their completion is
not in the near future.
Progress in methane detection. The
National Energy Technology Laboratory
(NETL), a division of DOE, is working to
locate and quantify methane leaks in the
U.S. natural gas infrastructure. Transmis-
sion and distribution lines are typically
well recorded and regulated. However,
fewer inspections are required for small-
diameter gathering lines, which are less
likely to be mapped or recorded. These
gathering lines are of interest to NETL re-
searchers, as leaks from gathering lines are
not as well characterized.
The first challenge is locating gath-
ering pipelines—both active and inac-
tive—by finding the endpoints of the
lines, which usually are wells and process-
ing stations. The latter are well-marked on
maps, but individual wells are sometimes
not well-marked. A previous NETL study
that focused on finding oil and gas wells
explored the efficacy of aerial surveys by
helicopter versus ground surveys by util-
ity terrain vehicles (UTVs), either using
powerful magnets or methane detection
equipment. Aerial magnetic surveys were
determined to be the most accurate, eco-
nomical and time-effective method to lo-
cate steel-cased wells in large areas.
NETL Technology Portfolio Lead
Natalie Pekney, Ph.D., said that finding
wells is often easier than locating gather-
ing pipelines, because wells are oriented
vertically and generate an obvious mag-
netic “bull’s-eye.” Meanwhile, gather-
ing systems run horizontally, produce a
weaker magnetic signal, and may be made
of plastic or other materials that are unde-
tectable using magnets.
Well finding is important, because
many early wells drilled in the U.S. were
not sealed properly when they were aban-
doned, creating pathways for liquids and
gases to rise to the surface or flow under-
ground. Poorly sealed wells can contami-
nate sources of drinking water, release
harmful gases and threaten subsurface
energy-related activities—including hy-
draulic fracturing, EOR and carbon stor-
age. Leaking pipelines may also pose some
of these threats, so as NETL has refined
effective well-finding techniques, research
has transitioned to locating gathering
lines and characterizing any leakage from
those lines.
To extend the impact of site studies
and surveys like NETL’s helicopter work,
another NETL team uses geospatial data
analytics and modeling to provide useful
information about the U.S. natural gas
pipeline network. For instance, data anal-
yses have highlighted patterns, in regions
prone to incidents, that can lead to se-
vere injury or explosions from excavation
damage—in regions experiencing rapid
development—and corrosion in offshore
environments, such as the Gulf of Mexico.
Researchers are now working to de-
termine the possible factors that impact
methane leak rates for gathering pipelines,
including age, region of the country, and
pipeline materials. Several environmental
variables are also measured or recorded,
as they can impact the integrity of the
pipeline and influence the dispersion of
methane into the atmosphere from a leak.
Researchers also are working to improve
methane detection methods, as sensor alti-
tude, sample rates and more can affect leak
detection. Additional information from
NETL can be found at https://www.netl.
doe.gov/newsroom/news-releases/.
ŝŝPIKE.WILLIAM@ATT.NET / Bill Pike has 50 years of experience
in the upstream oil and gas industry, and serves as chairman of the
World Oil Editorial Advisory Board.
World Oil® / OCTOBER 2018 15
 WHAT’S NEW IN EXPLORATION
WILLIAM (BILL) HEAD, CONTRIBUTING EDITOR

Where are the oil reserves?

Not here: Given the current climate earth’s surface, or how much it will be pos- istry. You were lucky if you had some paleo.
in the Republic of South Africa, where sible to produce in the future”: https:// But, I offer a word of caution from a well-
their constitution and laws do not seem to www.bp.com/en/global/corporate/ener- known old salt, Norm Neidell, who said,
mean anything to the politics in power, oil gy-economics/statistical-review-of-world- “the model is not the image, and often not
investors will be reluctant to conduct ex- energy/oil/oil-reserves.html. the preconceived geology.”
ploration, when return on capital, royalty I like the philosophic graphic (Fig. 1) It’s here. In your mind first. Norm
rights and long-term relationships remain from EIA on this page, because it fits with reminds us that the laws of physics gov-
in doubt. Namibia, which is much more my prejudices and is endorsed by Wall ern events and processes, and our un-
stable, unfortunately had a recent offshore Street. They know best. I would make the derstanding is always incomplete. So, we
disappointment. While today it does not outer egg much larger. build simulation models of those events or
look promising, more seismic and a few Found your x, y? Modeling the area first processes to improve our understanding.
more wells are needed. is the practice. We used to call that pre- Models can predict behavior successfully
Where else? Try the opinion com- liminary interpretation, sometimes from but cannot be all-inclusive of every pos-
piled for the U.S. by the CIA. Can we a couple of well logs, a 2D seis line or one sible outcome.
trust this source? Actually, yes. There old grav/mag map. Maybe add in some “If we mistakenly believe that a model
is significant input from oil companies cursory basin analysis and a little geochem- truly represents reality in all aspects, and
around the globe. If you are use it to guide information cap-
looking to explore somewhere, Fig. 1. Stylized representation of oil and natural gas resource ture and various processes and
stay above their Zero Line. I categorizations (not to scale). Source: EIA. procedures, we can often unnec-
think they may be wrong about essarily limit progress toward
Original oil and
offshore #127 (Ireland) and natural gas in-place some of our desired goals. Some
#141 (Greenland): https:// such objectives may even be
www.cia.gov/library/publica- deemed unattainable,” observed
tions/the-world-factbook/ Remaining Technically Economically Cumulative Norm. He points out that a large
oil and natural Proved
recoverable recoverable resources production
rankorder/2241rank.html. gas in-place resources resources to date gap exists between physics and a
Then there is the opinion seismic image, and a larger gap
of OPEC. Are they sending the from that image to an accurate
world a message? I think they interpretation. Oh, the rocks
left out Texas/North Dakota in will cry out!
percentages of world reserves: Less certain Certainty of resource estimate More certain In Fig. 2, from the Geo-
http://www.opec.org/opec_ physical Society of Houston’s
web/en/data_graphs/330.html. Fig. 2. A model cannot represent reality in all respects and can GSH Journal, June 2018 is-
However, BP, which owns actually limit progress. Source: Neidell and Charuk, 2018. sue, we see an example from
and operates around the world Reineke field, Borden County,
more than most other compa- Texas. There is never enough
nies, has a semi-objective view. information about an area to
South America, they say, is hot drill. The president of Gulf
for exploration, which really Oil once told me that if Gulf
means Colombia and Brazil. But had the entire geologic story,
there is still a slight problem. it would be because someone
All hydrocarbons are owned by else acquired it. As it turned
the government. Given problems out, lose your risk tolerance to
with super-hyper-inflation and spend for that knowledge, and
dictators who use the military someone else buys that infor-
to enforce their “laws,” you are mation—they get the reserves
not likely to hold on to those and you.
reserves for long. BP says this in
its linked footnote about risk: ŝŝWJHTEXAS@AOL.COM / William (Bill) Head is
“Nobody knows, or can know, a technologist with over 40 years of experience in
how much oil exists under the domestic and international exploration.

World Oil® / OCTOBER 2018 17

YOU CAN FLOW A WELL.
OR YOU CAN FLOW IT SOONER.

We’re continuously reducing customers’ time to first oil.

Our SPECTRE™ disintegrating frac plugs eliminate
post-frac milling and leave behind a clean, debris-free
well. No cast iron slips. No ceramic buttons. And the latest
generation performs reliably in temperatures as low as 100°F.

Drilling faster. Flowing sooner. And producing longer.

Learn about getting better performance in your
basin at bhge.com/better.

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved. 78570

Windows to the hole
Complex and uber-risky exploration
and deepwater wells clearly illuminate the
frailties of surface measurements and con-
ventional models, further amplifying the
compelling need for high-speed, real-time
downhole data, said the pseudo-competi-
tive developers of new and re-born teleme-
try technologies, in separate presentations
to the IADC Drilling Engineering Com-
mittee (DEC) quarterly forum on Sept. 19.
In non-circulating operations espe-
cially, an infinitesimal correlation exists
between interpretations based on rig site
measurements and what is actually hap-
pening downhole, said Andy Hawthorn,
director of solutions for XACT Down-
hole Telemetry. He was describing the
company's recently introduced acoustic
telemetry system, engineered to enable
deepwater operators to manage pressure
in real time from drilling through comple-
tion. XACT is majority-owned by Shell
Technology Ventures and BP Ventures.
“In the current environment, the avail-
ability of real-time downhole data on
deepwater exploration wells is about 15%
of total rig time, and that is on-bottom
and drilling ahead. Tripping, casing, ce-
menting, completions, frac packing and
the other 85% (of operations) are done
blind or inferring from surface measure-
ments and models,” he said.
Tony Pink, NOV senior V.P. of strate-
gic sales, automation and optimization,
echoed Hawthorn, saying “we have seen
a lot of challenges and a lot of differences
between models and real time.” He made
the comments while discussing NOV's
10-year-old wired drill pipe technology, re-
cently re-designed to address the cost and
reliability issues that prevented wholesale
adoption of the original iteration.
No mud required. Unlike conven-
tional mud-pulsed telemetry, where func-
tionality requires a full fluid column and
flow, Hawthorn said the XACT acoustic
system operates independent of fluid,
flow or formation by sending data signals
directly through the walls of any drill pipe
or workstring to a surface receiver.
DRILLING ADVANCES
JIM REDDEN, CONTRIBUTING EDITOR
Closely resembling drill collars, the
measurement and telemetry nodes screw
directly onto the workstring and are spaced
conservatively throughout a vertical or
horizontal wellbore, where they instan-
taneously send signals from tool to tool.
With no moving parts, the bottom of the
tool comprises the electronics and acous-
tic engine, while the middle section houses
the sensors, which as of now, detect inter-
nal and external temperatures, pressures,
weight, torque and bending. The full-bore
tools enable the deployment of wireline,
cement and 4.5 million lb of proppant.
The acoustic telemetry system has
been employed in the deepwater Gulf of
Mexico and the North Sea in applications
“where people had no access whatsoever
to real-time data,” Hawthorn said. For in-
stance, he said deepwater frac packing had
been fraught with high rates of reactionary
non-productive time (NPT), when surface
measurements exhibited pressure spikes,
which real-time downhole data revealed
were simply the result of proppant inertia.
In a deepwater injection well for an
acid wash and perforation, Hawthorn said
rather than maintaining a full fluid column
and potentially damaging the formation
through excessive overbalance, the acous-
tic telemetry system enabled the operator,
with regulatory blessing, to minimize the
hydrostatic head by dropping the fluid
level 4,000 ft in an 8,000-ft riser. “This
is managed pressure completions with-
out managed pressure rig equipment,” he
said. “It's old school, but since you know
the pressures in the well, you know the
mud weight in, and the volumetrics of
your riser, you can tell exactly where the
top of your fluid is. It's very, very simple,
but only if you have real-time data.”
“Lights on.” Meanwhile, Pink said
acceptance of the first version of NOV's
wired drill pipe telemetry system was
hampered by costs that were 2.2 times
those of conventional pipe, as well as reli-
ability issues and the industry downturn
of recent years. “The cost of ownership is
now down to 1.2 times the costs of nor-
mal pipe, though with the value it deliv-
ers, the model works at 2.2 times the cost
of the normal pipe,” he said.
He said the telemetry system, which
comprises wires delivering data at a rate
of 57,000 bytes/sec and placed snuggly
against the pipe wall, was re-designed to
improve reliability. “Our uptime (live
data) is 95% on U.S. land and 98% to 99%
offshore. The resolution we get is also sig-
nificantly improved. For geosteering, we
now turn the lights on downhole, so you
can see high-resolution image logs in real
time while drilling,” he said.
While the quarterly DEC forum was
devoted to “Contemporary Challenges
in Exploration Drilling,” Pink said in the
speed-absorbed unconventional sector,
the telemetry package over six wells se-
quentially helped reduce drilling time
from spud to TD 40% by “taking the data
and driving the rig's control system to ac-
tually deliver speed.”
For a North Sea operator relying on
logging-while-drilling (LWD) signals, the
along-the-string measurements relayed
by wired drill pipe revealed an “overly
conservative” model. “With the along-
string measurements, the operator could
see, in fact, that the pressures at planned
TD gave them significantly extra ECD
(equivalent circulating densities) to play
with.” So, when they got to TD, they were
able to drill an extra 200 m more, and 300
m and 500 m more on the next two wells,”
he said.
In a recent exploration campaign in the
Barents Sea, Pink said the operator would
not have considered seismic-while-drill-
ing, if mud-pulsed telemetry was the only
option. “The time involved would have
made it impossible. Wired drill pipe en-
abled them to use seismic-while-drilling
to identify shallow gas in the Barents Sea.
Because of high-speed telemetry, we could
get that data in real time,” he said.
ŝŝJIMREDDEN@SBCGLOBAL.NET / Jim Redden, a Houston-based
consultant and a journalism graduate of Marshall University, has
more than 40 years of experience as a writer, editor and corporate
communicator, primarily on the upstream oil and gas industry.
World Oil® / OCTOBER 2018 19
Experience You Can
Count ON
Utilizing the most qualified people in the business with state of the art
equipment, Yellowjacket provides best-in-class Fishing, Wireline, and
Completion Services. With locations in all major shale plays, you can
count on us to deliver cost-effective solutions for any situation.

F I S H I N G & R E N TA L W I R E L I N E C O M P L E T I O N S E R V I C E S

CALL US AT (888) 351-7779 OR VISIT WWW.YJOSLLC.COM


Let’s party
In April 2014, consultants McKinsey
& Company took a dim view of produc-
tion efficiency in the North Sea, referring
to it as a “crisis.” They said, “North Sea
offshore oil and gas asset production ef-
ficiency has fallen to record lows, costing
industry and government billions in lost
revenue, and jeopardizing the long-term
sustainability of the basin.” Support-
ing that thesis were data released by the
UK’s Department of Energy & Climate
Change, which “…confirm that produc-
tion efficiency on the UKCS (UK Conti-
nental Shelf) fell from 81% in 2004 to just
60% in 2012.”
Production efficiency challenges.
“So why,” McKinsey asks (and answers),
“has delivering sustained and high pro-
duction efficiency become much more
challenging over time? Our analysis of
20 years worth of regulatory data on 400
North Sea fields, as well as interviews
or discussions with over 50 North Sea
field managers, points to some crucial
hints. First, consistent with the analysis
conducted by the PETF (Production Ef-
ficiency Task Force), it dispels the com-
monly held belief that age is a barrier to
good performance. Second, it identifies
the two factors that most strongly cor-
relate with performance: export system
dependency, and the quality of operator
practices and approaches.”
The United Kingdom Oil & Gas Au-
thority (UKOGA) must have been listen-
ing. In a report issued in July 2018, look-
ing at 2017 UKCS activity, the agency
announced that production efficiency
(PE) has risen for a fifth consecutive year.
In 2017, it reached 74%, driving increased
production on UKCS. The 1% improve-
ment in efficiency from 2016 contrib-
uted an additional 12 MMboe in 2017;
or 32,000 extra boed. Meanwhile, losses
to production in 2017 were down to 200
MMboe, from 210 MMboe in 2016.
We should note here that for the pur-
poses of this report, the UKOGA defines
PE “…as the total volume of hydrocar-
bons produced in 2017, as a percentage
WHAT’S NEW IN PRODUCTION
DON FRANCIS, CONTRIBUTING EDITOR
of economic maximum production po-
tential (Economic Production Efficien-
cy) and is based on guidelines drafted
by the Society of Petroleum Engineers
(Production Efficiency Reporting–Best
Practice Guidelines).”
How did they do it? UKOGA says new
techniques, increased use of existing data
(no surprise there), and creating a culture
of efficiency are some of the methods
used to improve efficiency.
New techniques. In the new tech-
niques department, they report that one
area…being actively pioneered in the
UKCS is in light well intervention, us-
ing vessels on subsea wells. In 2016, the
world’s first subsea intervention using
coiled tubing was carried out, and another
world first was achieved a year later with
the use of coiled hose on a subsea well.
Techniques such as this provide opera-
tors with low-cost alternatives for reduc-
ing well losses. Another technology that is
being used by some operators to enhance
PE is non-invasive tank inspection. The
Oil and Gas Technology Centre (OGTC)
identified that 80% of tanks could be in-
spected using this method, with possible
savings of £242 million ($315.3 million)
a year across the UKCS.
Comprehensive data analysis. As
UKOGA notes, the average production
platform constantly captures around
30,000 separate data points; however,
only 1% of these are being analyzed.
Techniques that use the existing stream
of data being generated from platforms
are already playing a part in improving
efficiency. One such technique is using
data science to run predictive analytics
on production systems. The advantage of
using this alongside traditional methods
is that future equipment performance
degradation and failure can be mitigated
early. Analytics can spot relationships
across a wide data set, creating an early
warning system that allows action before
losses occur, improving efficiency and
reducing cost. New techniques, such as
predictive analytics, are already improv-
ing PE for some operators. Increased up-
take could help drive UKCS efficiency
higher in the future.
Efficiency culture. Top-performing
operators often use culture to improve PE,
ensuring that an efficiency culture perme-
ates through their business. The impact of
corporate culture on operations has been
shown in the past, as safety-focused cul-
tures spread thorough operators, helping
improve safety performance. Driving an
efficiency culture has also been shown
to have a similar effect. Some practical
examples of this seen on the UKCS in-
clude: informing employees of the total
value of production losses each day; and
senior management team talks, emphasiz-
ing the importance of TAR efficiency on
the businesses success before each shift
change-out during a TAR.
Kudos to the UK, but how’s the U.S.
doing?
Dig out your “We’re #1” signs. Ac-
cording to the U.S. Energy Information
Agency, the United States likely surpassed
Russia and Saudi Arabia to become the
world’s largest crude oil producer earlier
[in 2018], based on preliminary estimates
in EIA’s Short-Term Energy Outlook
(STEO). In February, U.S. crude oil pro-
duction exceeded that of Saudi Arabia for
the first time in more than two decades.
In June and August, the United States sur-
passed Russia in crude oil production for
the first time since February 1999.
This is an astounding accomplish-
ment, and it’s even more so, considering
one of the most prolific U.S. producing
areas—the Permian basin—was essen-
tially written off toward the end of what
one could call, looking back on it, the Pre-
Shale Epoch.
Meanwhile, the industry goes about
its business. But, it would be understand-
able and well-earned, if the Tuesday of
next OTC were a bit more, let’s say, like
Mardi Gras.
ŝŝDON@TECHNICOMM.COM / For more than 30 years, Don Francis
has observed the global oil and gas industry as a writer, editor and
consultant to companies marketing upstream technologies.
World Oil® / OCTOBER 2018 21
 EXECUTIVE VIEWPOINT
ROB HULL, SENOR REGIONAL MANAGER –
PROJECT MANAGEMENT EESSA, HALLIBURTON

21st century commercialization:

Where are we now?
I view the commercialization process
from a very technical perspective, but I’ve
had many discussions with non-technical
people on the process that we follow, and
thus have formed a few ideas on how we
can improve it. While I am not an expert in
procurement, I have been engaged in this
for 35+ years, and it seems that we need a
more streamlined approach, and not just
be satisfied with the status quo.
In many cases, we’ve already seen good
changes adopted. From digitalization to
reducing the numbers of people on rigs,
we’ve made progress. But how many times
have we seen a true, industry-wide focus
on reducing waste—day in and day out?
The time and effort we expend fulfilling
requests for proposals and tenders is huge,
and implementing continuous improve-
ment methodologies could surely reduce
waste in the process. The chart on this page
shows how a typical services award is ten-
dered, including the lengthy, arduous pro-
cess that commercialization efforts take.
A typical process. One example of a
recent tender with a major entity is a two-
stage approach that was used. In the first
stage, more than 10 tenders were organized
for discrete services over a four-month pe-
riod. This was followed by a technical and
commercial evaluation over another four
months, to pare down to a shortlist of suc-
cessful bidders for the next stage.
Successful bidders were invited to sub-
mit a single commercial offer for all ser-
vices combined. Evaluation took about
quest. The number of people involved in
creating and verifying materials, and meet-
ing to discuss proposals, is a huge commit-
ment, as are the time and effort taken by
management to approve proposals.
A different way. Would it not make
sense to integrate and streamline the pro-
cess? As the chart shows, bundling could
lower the number of documents from 35
to 21 for one integrated project. Our indus-
try tends to want to drive a continuous im-
provement culture. When we look at this,
are we really focused on even the very basic
tasks of picking vendors to do work?
I am sometimes told that “we are al-
ready doing that.” But are we really? We
now tend to issue discrete tenders and
require alternative proposals, which only
adds more time and effort to the process.
And, I have been told by operators that
some proposals they receive are trashed
without even the courtesy of a review.
That doesn’t make sense for anyone,
and in this age of digitalization and col-
laboration, why can’t we as an industry take
the time to fix this? I challenge customers
and service companies to find a better way
to collaborate for continuing improvement
of tendering, especially at a time when our
industry is coming out of a downturn, and
fewer dollars and people are available.
Smarter, integrated tenders are a better
Sourcing models for projects. Chart: Halliburton.
Eng. Drilling rig
way. One method to ensure improvements
in the process would be to make drilling rig
operators, service providers, and custom-
ers all come together in one room to jointly
deliver on projects. While this may not al-
ways be required, a joint approach among
all parties would put everyone on a bet-
ter footing while lowering costs, aligning
safety, and achieving results faster. Could
we take on projects in a “one coverall” ap-
proach? Think of the value gain that the
industry might have, if we had three com-
panies in the planning phase, in design, and
searching out ways to optimize projects.
This may require thinking disruptively.
It also challenges established processes.
Of course, we would have to safeguard
against possible corruption, but if we all
worked together, we could take an enor-
mous amount of waste out of the process
and develop hydrocarbons more effec-
tively. This may require looking at ways
other industries handle their processes,
but it’s a challenge we need to address
head-on. Why not start today?
ŝŝROB HULL has over 35 years working directly for and with E&P
operators, technology providers, and consulting groups, developing
expertise in many operational areas. He serves as a subject matter
expert for Halliburton on mature fields, and is a leading technical
expert on unconventionals in the UK and Europe. Most recently, Mr.
Hull assumed a role focused on drilling and completion operations
efficiency and cross-product service line integration.
Well equipment Drilling/data acquisition Cement/fluids Completion/workover/intervention Logistics

eight to 10 weeks. That resulted in more

Well design and engineering

than a year for the tender process. How

Cementing and pumping

Liner Hangers/packers
Stand-alone screens

Waste management
Wellheads/X-trees

many people-hours were spent on this—

Wellbore cleanout
Casing accessories

Lower completion
Upper completion
Wireline logging
Tubular running

Workover units
Conductor pipe

DD/MWD/LWD

Rwi pumping
Drilling fluids

Coiled tubing
Mud Logging
Drilling units

Solid control

Pulling units

Artificial Lift
Rwi logging
Well testing

not only from the customer standpoint but

Stimulation
Perforation

Monitoring
BHA Tools

Logistics
Drill bits

Slickline
Fishing

Coring

from vendors engaged in the work?

OCTG

GWD

The drawback was “tender fatigue” on Integrated project 1

all sides, resulting from excessive wasted Integrated services 1

time and resources. Realistically, tender Semi-integrated svcs 1 2 3 4 5 6

CUSTOMER

Bundle (maximum) 1 2 3 4 7* 5 6 7* 8
time could have been streamlined to three
Bundle (medium) 1 2 3 4 5 6 7 8 9 10 11 12 13 14
months, had the customer used a single- Bundle (minimum) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
stage process to combine all services. Discrete 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
It is staggering to think that operators Operations supervision Groupings indicted in boxes
might issue three dozen documents to an HSE supervision
Contract supervision
array of companies to fulfill a single job re-
World Oil® / OCTOBER 2018 23
 Middle of nowhere.
Minimal power.
No one onsite.

But you’re not worried.

This is why
level matters.
They call it unconventional for a reason. Out here, your site is
operating on minimal power with no staff in brutal conditions.
But you need reliable, accurate level measurement through it
all. That’s why Magnetrol® matters. Our technologies deliver
the critical information you demand through the communi-
cation protocols you use, like Modbus. They also take less
time to install and require little power to cycle up and down
quickly. That’s critical. Because out here, level matters.

See how to optimize your applications

©2018 Magnetrol International, Inc. at magnetrol.com

John
Castagna •  • •
Fostering the industry’s
human intelligence
John Castagna is an American geo-
physicist, who is best known for his dis-
covery of the “mudrock line,” its use in
amplitude-versus-offset analysis, and
advances in spectral decomposition and
high-resolution inversion.
Castagna had a very early start to his
career as a geoscientist. Growing up in
Brooklyn, New York, his mother, a chem-
ist, and father, an electronic, mechanical
and acoustical engineer, allowed him to
help with experiments in their own labo-
ratories. “He infected me,” Castagna says
of his father. “Even as a toddler, I remem-
ber helping with experiments and seeing
all the wonderful things he was doing
with sound waves.”
Although he was a “city boy,” Castagna
had a profound love for nature. His affec-
tion for science and nature prompted him,
at just 15 years old, to further his education
in geology at Brooklyn College. He earned
a BS degree in geology, with a minor in
chemistry, before going on to earn his MS
degree in geochemistry. At 19 years old,
Castagna lectured for the college on physi-
cal geology, and later pursued his doctorate
at the University of Texas at Austin.
During that time, Castagna launched
his career in research with ARCO Oil
and Gas Co., studying high-frequency
waveforms in boreholes and interpreting
seismic velocities, among other topics. He
INNOVATIVE THINKERS
EMILY QUERUBIN, ASSOCIATE EDITOR
held various technical and management
positions at the company, including five
years drilling as an explorationist, which
he says, “completed my education.” Much
of the research he conducted over the
years—particularly in AVO analysis and,
more recently, spectral and phase decom-
position—is now commonly used in the
industry, with several major oil compa-
nies having licenses for his methods.
After 16 years at ARCO, Castagna was
drawn back to his former role as an educa-
tor, taking a position as a chaired professor
in geology and geophysics at the Universi-
ty of Oklahoma. He also served as director
of the university’s Institute for Exploration
and Development Geosciences. Mean-
while, Castagna founded Fusion Geophys-
ical, LLC, a services company providing
geophysical, geological and reservoir engi-
neering technology and services.
Similarly, after joining the University
of Houston (UH) as the sheriff chair in
applied seismology, Castagna founded
Lumina Geophysical, LLC, in 2010. As
a software and services provider, Lumina
utilizes its team of G&G professionals to
meet the needs of its clients, which in-
clude small independent companies, oil
and gas majors and NOCs, alike. The
company’s offerings range from seismic
analysis and quantitative interpretation
services, to reservoir characterization and
modeling using “deep learning.”
In March, Lumina released its latest of-
fering: Leonardo. Leonardo is a geophysi-
cal modeling tool that allows the user to
create and test earth models quickly and
easily. It allows the user to sketch, model
and share reservoir models, without hav-
ing to deal with a complicated workspace.
According to Lumina, Leonardo “be-
comes an extension of your imagination.”
Castagna continues his work primarily
as a geophysics professor, in addition to
serving on Lumina’s board of directors. “At
Lumina, I’m really just a cheerleader,” Cast-
agna said. “Many of my former students are
there now, and they’re doing great things.”
When asked what he hopes to accom-
plish next, Dr. Castagna says he is eager to
see where AI and deep learning will take
the oil and gas industry. Although, not
without its caveats. “I have great concern,”
he said. “There is great promise for deep
learning, but I worry that there are those
who think it can entirely replace human
intelligence. We are nowhere near that.
This is a boom-and-bust industry, so we
need to preserve our investment in hu-
man capital during the hard times, even
though it doesn’t appear directly as any-
thing but a cost on a balance sheet. We
don’t want to look back with regret at the
talent we let slip away being penny-wise
and pound-foolish.”
World Oil® / OCTOBER 2018 25
 INDUSTRY AT A GLANCE
CRAIG.FLEMING@WORLDOIL.COM

Russian oil production hit a post-Soviet high in September, WORLD OIL & NGL PRODUCTION Million barrels per day
when the country rolled back OPEC limits and pushed output AUG 2018 JULY 2018 AVG. 2017 AVG. 2016
up to 11.36 MMbpd. The surge is a response to supply losses OPEC–CRUDE OIL
from Iran/Venezuela and plateauing U.S. drilling activity. The Saudi Arabia 10.42 10.35 9.96 10.42
Iran 3.63 3.78 3.81 3.55
fear over supply shortages helped drive crude benchmarks
Iraq 4.65 4.56 4.47 4.42
to four-year highs, with WTI and Brent averaging $70.80/
United Arab Emirates 2.98 2.98 2.93 3.05
bbl and $79.20/bbl. Saudi Arabia also upped its daily yield to Kuwait 2.83 2.80 2.71 2.88
10.41 MMbopd after President Trump increased pressure on Neutral Zone 0.00 0.00 0.00 0.00
OPEC to lower commodity prices. Despite a 211 DUC well gain Qatar 0.62 0.62 0.61 0.65
in the Permian, operators added five rigs in Texas District 8, Angola 1.47 1.47 1.64 1.71
averaging 322 units. The overall U.S. rig count averaged 1,053, Nigeria 1.61 1.52 1.53 1.47
three more than in August International activity increased Libya 0.95 0.67 0.83 0.39
Algeria 1.06 1.06 1.05 1.11
2.2%, to average 1,228 rigs in August.
Congo 0.32 0.31 0.26
Gabon 0.20 0.18 0.20 0.23
U.S. OIL PRODUCTION1 Thousand barrels per day
Equatorial Guinea 0.12 0.12 0.13 0.14
DAILY AVERAGE FOR MONTH
Ecuador 0.53 0.53 0.53 0.55
AUG AUG JULY
STATE 20182 20173 % DIFF. 20182 Venezuela 1.24 1.26 1.97 2.24
Alabama 22 18 22.2 22 NGLs & condensate1 7.01 7.01 6.91 6.81
Alaska 418 451 –7.3 379 TOTAL OPEC 39.64 39.22 39.52 39.59
Arkansas 22 14 57.1 22 OECD2
California 505 498 1.4 507 U.S. 15.22 15.28 13.27 12.53
Colorado 475 377 26.0 481 Mexico 2.09 2.09 2.23 2.47
Florida 5 5 0.0 5 Canada 5.03 5.03 4.82 4.47
Illinois 21 23 –8.7 21
United Kingdom 1.01 1.04 1.01 1.03
Kansas 105 99 6.1 110
Norway 1.81 1.91 1.97 1.99
Kentucky 7 11 –36.4 7
Louisiana4 1,557 1,515 2.8 1,545 Europe-others 0.51 0.52 0.51 0.49
Michigan 17 15 13.3 18 Australia 0.31 0.31 0.31 0.34
Mississippi 64 48 33.3 66 Pacific-others 0.07 0.07 0.07 0.08
Montana 65 57 14.0 74 TOTAL OECD 26.05 26.27 24.20 23.42
Nebraska 6 6 0.0 6 NON–OECD
New Mexico 660 458 44.1 662 Russia 11.59 11.60 11.36 11.34
North Dakota 1,235 1,079 14.5 1,228
FSU-others 2.92 3.08 2.98 2.90
Ohio 67 53 26.4 65
China 3.77 3.80 3.87 3.98
Oklahoma 555 467 18.8 542
Texas4 4,610 3,688 25.0 4,543 Malaysia 0.72 0.72 0.72 0.71
Utah 115 97 18.6 117 India 0.83 0.83 0.86 0.85
West Virginia 28 27 3.7 29 Indonesia 0.80 0.80 0.84 0.88
Wyoming 238 208 14.4 235 Asia-others 0.98 0.98 1.05 1.15
Others5 32 31 3.2 33 Europe 0.12 0.12 0.13 0.14
TOTAL U.S. 10,829 9,244 17.1 10,717 Brazil 2.78 2.69 2.74 2.61
LOWER 48 10,411 8,793 18.4 10,338
Argentina 0.57 0.58 0.57 0.61
1 Includes lease condensate. 2 Preliminary estimate, API. Colombia 0.87 0.87 0.86 0.88
3 DOE estimate. 4 Includes federal OCS production.
5 Includes Arizona, Indiana, Missouri, Nevada, New York, Pennsylvania, South Dakota, Tennessee and Virginia. Latin America-others 0.35 0.34 0.37 0.38
U.S. GAS PRICES ($/MCF) & PRODUCTION (BCFD) Oman 0.98 0.98 0.98 1.01
Syria 0.02 0.02 0.02 0.03
100 7 Yemen 0.04 0.04 0.03 0.02
Egypt 0.64 0.64 0.64 0.67
6
80 Africa/Middle East-others 1.04 1.04 0.98 1.04
5 TOTAL NON–OECD 29.03 29.14 28.99 29.28
60 4 PROCESSING GAINS3 2.32 2.32 2.29 2.32
TOTAL SUPPLY 97.04 96.94 95.01 96.61
40 3
Source: International Energy Agency. Note: Totals and subtotals may not add, due to rounding.
Monthly price (Henry Hub) 2 1 Includes condensates reported by OPEC countries, oil from non-conventional sources, e.g. Venezuelan Orimulsion
20 12-month price avg.
Production 1 (but not Orinoco extra-heavy oil) and non-oil inputs to Saudi Arabian MTBE.
2 Comprises crude oil, condensates, NGLs and oil from non-conventional sources.
0 0 3 Net of volumetric gains and losses in refining (excludes net gain/loss in China and non-OECD Europe) and marine
M J J A S O N D J F M A M J J A S O N D J F M A M J J A S transportation losses.
2016 2017 2018
Production equals U.S. marketed production, wet gas. Source: EIA.
WORKOVER RIG COUNT
AUG 2018 YR. AGO
SELECTED WORLD OIL PRICES ($/BBL) REGION ACTIVE AVAIL. IDLE STACKED TOTAL % UTIL. ACTIVE
Texas Gulf Coast 180 44 67 72 363 50% 139
80 ArkLaTex 55 18 41 73 187 29% 60
70 Eastern U.S. 36 52 19 13 120 30% 48
South Louisiana 16 1 12 3 32 50% 21
60
Mid-Continent 137 32 86 99 354 39% 125
50 West Texas / Permian 494 13 185 162 854 58% 404
W. Texas Inter. Rocky Mountains 265 64 127 57 513 52% 217
40 Brent Blend West Coast / Alaska 155 37 144 83 419 37% 178
Dubai Fateh
30 Source: DOE TOTAL U.S.   1,338 261 681 562 2,842 43% 1,192

20 Active - crewed and worked every day during the month. Source: AESC
S O N D J F M A M J J A S O N D J F M A M J J A S Available - has crew ready to work.
Idle - capable of being put to work in 48 hr and does not require spending in excess of $50,000.
2016 2017 2018 Stacked - cannot work without investment in excess of $50,000.

World Oil® / OCTOBER 2018 27

 INDUSTRY AT A GLANCE
CRAIG.FLEMING@WORLDOIL.COM

INTERNATIONAL ROTARY RIG COUNT Monthly average INTERNATIONAL ROTARY U.S. ROTARY
AUG 2018 JULY 2018 AUG 2017 DRILLING RIGS DRILLING RIGS
REGION & COUNTRY LAND OFFSHORE LAND OFFSHORE LAND OFFSHORE
CANADA* 219 1 201 3 215 2 1,400 1,400
EUROPE 53 32 48 32 53 38
Germany 4 0 2 0 4 0
1,250 1,100
Italy 2 1 1 1 2 0
Netherlands 1 0 1 1 0 3
Norway 0 15 0 13 0 15 1,100 800
Poland 6 0 6 0 10 0
Romania 9 1 6 1 5 0 950 500
Turkey 19 0 19 0 18 0
United Kingdom 0 7 1 9 0 12
800 A S O N D J F M A M J J A S O N D J F M A M J J A 200 J A S O N D J F A M J J A S O N D J F M A M J J A S
Others 8 18 12 6 14 8 2016 2017 2018 2016 2017 2018
MIDDLE EAST** 351 51 354 46 340 51
Abu Dhabi 38 17 38 15 34 18 Source: Baker Hughes, a GE company.

Egypt 24 5 26 6 18 6
Iraq 57 0 59 0 53 0
Kuwait 50 0 50 0 52 0
Oman 53 0 53 0 53 0
U.S. ROTARY RIG COUNT Monthly average

Pakistan 24 0 23 0 25 0 % DIFF.
Saudi Arabia 100 21 100 17 98 17 SEPT AUG SEPT SEPT ‘18
Syria 0 0 0 0 0 0 STATE & AREA 2018 2018 2017 SEPT ‘17
Others 1 1 1 1 3 2 ALABAMA-TOTAL 1 1 2 –50.0
AFRICA** 87 17 79 18 72 12 Land 1 1 2 –50.0
Algeria 49 0 45 0 55 0 Inland water 0 0 0 0
Offshore 0 0 0 0
Angola 0 4 0 4 0 2
ALASKA-TOTAL 6 6 5 20.0
Kenya 8 0 9 0 8 0
Land 4 4 5 –20.0
Libya 7 1 4 1 0 1
Nigeria 8 6 10 6 5 3 Offshore 2 2 0 0
Others 15 6 11 8 4 6 ARKANSAS 0 0 0 0
LATIN AMERICA 168 24 161 29 160 31 CALIFORNIA-TOTAL 15 15 16 –6.3
Argentina 74 0 71 0 67 0 Land 15 15 16 –6.3
Brazil 3 7 4 11 4 11 Offshore 0 0 0 0
Colombia 31 0 29 0 23 1 COLORADO 32 30 35 –8.6
Ecuador 10 0 8 0 5 0 FLORIDA 1 1 0 —
Mexico 16 13 14 14 6 12 KANSAS 0 0 0 0
Venezuela 25 2 26 2 44 4 KENTUCKY 0 0 2 –100.0
Others 9 2 9 2 23 3 LOUISIANA-TOTAL 61 56 65 –6.2
ASIA-PACIFIC 137 88 138 91 126 69 North - Land 32 34 42 –23.8
Australia 18 2 18 3 12 2 South - Inl. water 5 2 4 25.0
China, offshore 0 32 0 35 0 18 South - Land 7 6 3 133.3
India 85 34 85 34 81 28 Offshore 17 15 17 0.0
Indonesia 30 3 31 4 27 3 MICHIGAN 0 0 0 0
Malaysia 0 8 0 6 0 4 MISSISSIPPI 5 4 3 66.7
New Zealand 1 0 1 0 0 0 MONTANA 0 0 0 0
Thailand 2 4 0 5 3 7 NEBRASKA 0 0 0 0
Vietnam 0 3 0 3 0 3 NEVADA 1 1 0 —
Others 1 2 1 1 3 4 NEW MEXICO 99 104 67 47.8
TOTAL 1,015 213 981 220 966 203 NEW YORK 0 0 0 0
**No data available for Iran and Sudan/South Sudan. Source: Baker Hughes, a GE company. NORTH DAKOTA 53 54 51 3.9
OHIO 19 22 29 –34.5
OKLAHOMA 138 139 128 7.8
INTERNATIONAL OFFSHORE RIGS PENNSYLVANIA 43 40 33 30.3
U.S. GULF OF MEXICO NORTHWEST EUROPE WORLDWIDE SOUTH DAKOTA 1 0 0 —
AUG 2018 AUG 2017 AUG 2018 AUG 2017 AUG 2018 AUG 2017 TENNESSEE 0 0 0 0
Total rigs in fleet 76 94 91 102 766 812 TEXAS-TOTAL 528 525 453 16.6
Marketed Supply 45 53 75 80 649 665 Offshore 1 2 1 0.0
Inland water 0 0 0 0
Marketed Contracted 35 35 65 61 490 470
District 1 44 42 38 15.8
Rig utilization, % 77.8 66.0 86.7 76.3 75.5 70.7
District 2 29 30 28 3.6
District 3 13 14 16 –18.8
Source: IHS Petrodata Weekly Rig Count.*
District 4 14 15 15 –6.7
District 5 2 2 4 –50.0
U.S. DRILLED BUT UNCOMPLETED WELLS District 6 22 22 17 29.4
District 7B 2 2 4 –50.0
AUG JULY AUG Y-O-Y District 7C 47 47 39 20.5
REGION 2018 2018 2017 DIFF. District 8 322 317 254 26.8
Anadarko 1,026 992 933 10.0% District 8A 19 19 23 –17.4
Appalachia 699 718 745 –6.2% District 9 3 3 4 –25.0
Bakken 751 755 775 –3.1% District 10 11 11 10 10.0
Eagle Ford 1,545 1,517 1,401 10.3% UTAH 5 6 9 –44.4
W. VIRGINIA 13 13 15 –13.3
Haynesville 191 183 186 2.7%
WYOMING 30 29 25 20.0
Niobrara 427 447 711 –39.9%
OTHERS 2 2 1 100.0
Permian 3,630 3,419 2,297 58.0% U.S. OFFSHORE TOTAL 20 19 18 11.1
BASIN TOTALS 8,269 8,031 7,048 17.3% U.S. GRAND TOTAL 1,053 1,050 940 12.0
Source: EIA. Note: Totals may not add, due to rounding. Source: Baker Hughes, a GE company. Note: State monthly averages may not add up to U.S. total, due to rounding.

28OCTOBER 2018/WorldOil.com

The path to autonomous
directional drilling
Advancements in electronics
and sensor technology,
sophisticated algorithms,
and high-speed telemetry
are leading the way to
automated drilling.
ŝŝJULIEN MARCK and LISETTE VITTA,
Halliburton
Predictive analytics, the Internet of
Things, artificial intelligence—these are
not just buzz words anymore—they are
digital, automated technologies rapidly
transforming the oil and gas industry.
What has changed today across ex-
ploration and production is the number
of different elements that can connect to
each other, the way data are shared and
transferred and, most importantly, the
speed at which these data are translated
The iCruise intelligent RSS is an important
step toward directional drilling automation.
SPECIAL FOCUS: ADVANCES IN DRILLING
into actionable insights for operators.
This digital transformation is changing
the way that we do business, offering new
and more powerful ways to connect to
the reservoir, operations and equipment
(on the surface and downhole), and have
closer collaboration with each other.
Halliburton is accelerating this digital
transformation by implementing systems
and architecture that enable smarter deci-
sion-making across the well construction
life cycle. At our core, we have imple-
mented an enterprise architecture that
integrates systems, applications, big data
analytics, advanced modeling, and work-
flows from multiple applications. In the
field, we execute drilling operations ac-
cording to a specified well plan and pre-
determined drilling parameters.
Advances in sensor technology,
downhole processors for complex, large-
scale computations, and high-speed te-
lemetry systems allow for systematic
real-time data processing and analysis, at
both the surface and downhole—at a rate
and accuracy that cannot be matched by
human operators. Machine learning and
data analytics, coupled with sophisticated
algorithms, can help field and real-time
operation center (ROC) experts analyze
drilling conditions in real time, optimize
the drilling plan accordingly, and make
smarter decisions at the rig site.
By automating the drilling process,
we can help operators maximize asset
value through reduced non-productive
time (NPT), fewer rig site personnel, and
lowered costs per barrel of oil equivalent
(boe) while delivering predictable, de-
pendable and consistent results.
SMART DESIGN MEETS
DRILLING AUTOMATION
Optimization of the well plan requires
smart, advanced surface and downhole
systems that capture data in real time, and
send continuous commands to adjust for
current drilling conditions. At the center
of directional drilling automation lies the
new iCruise intelligent rotary steerable
system (RSS), designed to help operators
place wells accurately, reduce well time,
improve reliability, and achieve predict-
able results.
World Oil® / OCTOBER 2018 29
ADVANCES IN DRILLING
This intelligent push-the-bit sys-
tem features advanced electronics for
tool prognosis and diagnosis, multiple
downhole sensors, high-speed proces-
sors for complex computations, and
distinct survey packages to assess drill-
ing conditions in real time. Multiple
high-bandwidth sensors continuously
measure downhole vibrations and an-
nulus pressure, as well as borehole incli-
nation and azimuth, which help predict
unforeseen trends and enable more ac-
curate well placement. Additionally, the
modularity of the system helps operators
Fig. 1. This engineered drilling solution features the iCruise intelligent RSS matched with
the GeoTech (GTi) bit for accurate well placement, gained through improved steerability
and drilling performance.
Fig. 2. A 3D visualization and actual view of current wellbore, drilling advisor projection, and adjacent wells for collision avoidance.
30 OCTOBER 2018 / WorldOil.com
to meet all drilling challenges, from long
laterals to high-curvature sections—up
to 18°/100 ft—in unconventional, deep-
water or mature fields.
The intelligent RSS system is matched
with the GeoTech (GTi) drill-bit series,
Fig. 1. It is engineered with design soft-
ware around the drilling parameters,
formation properties, drill bit cutting
structure, and gauge configuration, to
optimize the side-cutting efficiency
(SCE) of the bit, leading to improved
steerability and drilling performance in
all formation types. The bit also can re-
cord high-frequency vibration and mo-
tion data, to provide further information
of downhole performance.
ACHIEVING CONSISTENT,
PREDICTABLE RESULTS
The intelligent RSS system is integrat-
ed with the automated drilling advisor
software, which helps directional drill-
ers make informed and efficient drilling
decisions around directional control and
vibration management. Based on phys-
ics models of the BHA and drill bit, ma-
chine learning of real-time data is used to
augment these models, to define current
drilling conditions and predict future well
uncertainties, Fig. 2.
The automated drilling advisor also
can compute the optimal series of steer-
ing commands (duty cycle and tool face)
to steer successfully along the planned
wellbore trajectory, land the curve, and
reach target depth. Its ability to identify
formation tendency, estimate current and
future tool outputs, and adapt to changes
in the coming trajectory, allows it to miti-
gate borehole tortuosity while building
a sufficient safety margin. This ensures
smooth landing of the curve and reaching
the planned target accurately and consis-
tently, Fig. 3.
Sophisticated algorithms are also
incorporated within the system, which
perform analyses downhole. These algo-
rithms already make decisions without
 Dedicated 24/7
Tier IV emission service and predictive Advanced control Robust modular
standards maintenance and data management platform

Smart pressure pumping technology

provides better performance
The industry has a new standard in pressure pumping performance. AFGlobal
is the leading manufacturer of pressure pumping technologies providing
fully integrated and customized solutions. Our advanced AMI cloud-based
control and data management allows for better real-time decisions. And
the precision-engineered DuraStim™ Gen II frac pump, rated for 6000 hp,
provides continuous duty and operational efficiency. That’s industry-leading
innovation—all designed to reduce downtime, lower operating costs and
optimize operational efficiency.

afglobalcorp.com/NRG

Agile thinking. Engineering change.

ADVANCES IN DRILLING
Fig. 3. The drilling advisor screen, showing real-time survey data and steering recommendations.
Fig. 4. An intelligent RSS helps a Mid-Con
operator place the well accurately and stay
100% in zone, reducing well time.
human interference. Control algorithms
maintain constant inclination and azi-
muth of the borehole, while others pro-
cess sensor data to identify the type,
frequency and intensity of downhole vi-
brations, and communicate the informa-
32 OCTOBER 2018 / WorldOil.com
tion to the drilling advisor for automated
mitigation actions.
The automated drilling advisor also
provides consistent interpretations and
analyses, post-run, that can be projected
systematically to future operations. It au-
tomatically transfers knowledge to derive
consistent and dependable insight across
wells and basins, therefore helping opera-
tors obtain predictable results for future
asset development.
AN INTEGRATED APPROACH
TO DRILLING AUTOMATION
The intelligent RSS system and the
automated drilling advisor are only two
pieces of the push toward a fully inte-
grated, drilling automation platform. In
geosteering applications, the EarthStar
ultra-deep resistivity service and its geo-
steering software establish a two-way
communication with the automated
steering advisor. Geosteering targets
are sent directly to the automated drill-
ing advisor, to automatically steer the
RSS toward the desired objective while
providing experts with real-time infor-
mation for more-informed decisions on
borehole trajectory.
Fluid management and monitoring
are also an integrated part of the well
construction workflow. At the surface,
we no longer have mud engineers manu-
ally measuring fluid parameters once or
twice per day. Today, the BaraLogix real-
time and automation unit measures and
sends fluid data 100 times per day. The
data captured are density and rheology,
which are sent to the real-time fluid ap-
plication being monitored at the real-
time centers. There, engineers can now
see and predict a wellbore stability issue
ahead of time, helping operators save rig
time and costs.
Well construction beyond that of just
wellbore placement is also important.
When incorporating managed-pressure-
drilling (MPD) systems, the wellbore
pressure is managed at the speed of
sound by controlling the wellhead pres-
sure through wellbore hydraulics mod-
els. These models are calibrated with
pressure-while-drilling (PWD) data,
in real time, and the MPD system’s ad-
vanced algorithms. The MPD system is
designed to listen to the RSS commands
and adjust the bottomhole pressure ac-
cordingly, when downlink commands
are sent to, and data are received from,
the tool. It also utilizes real-time density
and rheology data, and compares these
calculated results to the PWD measure-
ments for a real-time early wellbore
event system.
Because the intelligent RSS direc-
tional capabilities depend on the flow-
OUR GREATEST NATURAL RESOURCE:
EXCEPTIONAL EMPLOYEES

WELL WELL WELL WELL WELL

CONSTRUC TION COMPLETIONS SERVICES INTERVENTION ABANDONMENT

Delivering Extraordinary Service for the Life of Your Wells

At C&J, our people provide the energy that drives our success. With a can-do
attitude and a commitment to working honestly and thoughtfully, we’re trusted
by operators across the U.S. to deliver the highest levels of quality, safety and
efficiency.

Whether you hire us for well construction, well completions or any of our other
well services, a team of remarkable people is always part of the package. We’re
ready to put our experience and expertise to work for you.

Our Core Values – Doing the Right Thing, Empowering Our Employees,
Demonstrating Resilience, Delivering Every Time

CJENERGY.COM
ADVANCES IN DRILLING
rate and density of the drilling fluid,
the integrated nature automating the
well construction workflow is essential.
With more analytics and sophisticated
algorithms added downhole, and at the
surface, the burden of decision-making
is shifted progressively from field per-
sonnel to automation services that work
together to drive the full drilling process.
Our company combines digital solu-
tions to automate the well construction
process, helping operators maximize as-
set value through improved recovery,
reduced well time and risks, and lower
costs per boe.
CASE STUDY 1: MAXIMIZING
LATERAL WELL CONTACT
An operator in the U.S. had to maintain
the wellbore within a 30-ft-thick reser-
voir. The combination of sensor measure-
ments from the iCruise intelligent RSS,
particularly the at-bit inclination, and
the deep-resistivity tool provided reliable
data to geosteering experts for efficient
directional guidance, to maintain the
borehole in the lower half of the reservoir.
At the same time, the automated drilling
advisor provided directional drillers with
clear recommendations regarding how to
steer toward targets while accounting for
Fig. 5. The entire curve was drilled with real-time commands from the automated drilling advisor.
34 OCTOBER 2018 / WorldOil.com
local formation push. The vendor helped
the operator place the well accurately by
remaining 100% in zone and reduced well
time by delivering consistent and predict-
able results, thereby maximizing the value
of the asset run, Fig. 4.
CASE STUDY 2: ACCURATE WELL
PLACEMENT IN A LONG LATERAL
Halliburton drilled a lateral section
at 9,644 ft with the intelligent RSS, and
stayed with a 15-ft window within plan,
landing the well within 1 ft of the true
vertical distance (TVD) of the target.
This was achieved while keeping the
borehole curvature below 2°/100 ft dur-
ing the entire run, helping the operator
to place the well accurately and achieve
maximum reservoir contact.
CASE STUDY 3: LANDING
A HIGH DOGLEG CURVE
A full curve—with a curvature of
12°/100 ft—was drilled using the iCruise
intelligent RSS by following the recom-
mendations of the automated drilling
advisor. After kickoff, the advisor was
able to maintain a sufficient safety mar-
gin and then landed the well accurately,
as planned. A physics-based model is
used to simulate tool performance. The
projected well trajectory is adapted in
real time, relative to the current output
of the BHA, while optimizing steering
decisions in real time to reduce borehole
tortuosity, Fig. 5.
JULIEN MARCK has been an
R&D engineer at Halliburton
Sperry Drilling for two years.
He focuses on bottomhole
assembly modeling, drilling
optimization and drilling
automation. He has worked
extensively on the iCruise intelligent RSS and
Drilling Advisor projects. Mr. Marck holds a BS
degree in applied sciences and an MS degree
in civil engineering from the University of
Liege, Belgium, as well as an MS degree in
geo-engineering, and a Ph.D. in civil
engineering from the University of Minnesota.
LISETTE VITTA is the global
strategic marketing manager
for Halliburton Sperry Drilling.
She has more than 10 years of
marketing experience in the
oil and gas industry. Ms. Vitta
leads the commercialization
of drilling products and services to increase
market share, revenue and profitability.
Previously, she led cross-segment solutions
for the unconventionals, mature fields and
deepwater markets. Ms. Vitta earned an
MBA degree and a Master of Arts degree in
diplomacy from Seton Hall University. She
also holds a BA degree from Baylor University.
She is a member of Instituto Argentino del
Petróleo y Gas (IAPG) and the World Affairs
Council (WAC) of Houston.

Direct drillstring measurements
in drawworks improve autodriller performance
Advancements in wireless
communications have
enhanced real-time drillstring
measurements, resulting
in improved autodriller
control. Field tests document
that the system can increase
BHA stability, improving
ROP in deeper hole
depths and verifying the
technology’s benefit in
extended-reach wells.
ŝŝIAN SOUKUP, MICHAEL BOUDREAUX,
JASON ANDERSON, RICARDO RAMIREZ
and JONATHAN SHIM, NOV
Over the past several years, direct
measurements using an integrated drill-
On a jackup rig offshore Thailand, NOV’s
drillstring measurement system improved
ROP and autodriller control while reducing
drilling dysfunction.
SPECIAL FOCUS: ADVANCES IN DRILLING
string measurement system have been
collected while drilling. The new infor-
mation has been compared with data
taken by traditional surface sensors and
downhole tools. However, without inte-
gration into the control system, the value
of direct drillstring measurements was
limited to advisory functions, such as:
1) providing early warning signs of sys-
tem failure and well control situations;
and 2) enhancing recommendations for
drilling optimization and best well con-
struction practices.
Direct comparisons were made with
traditional sensor measurements at low
sampling rates, to assess hoisting per-
formance, WOB sensitivity, and torque
performance. High-frequency sampling
illustrated sensor capabilities to measure
axial/torsional drillstring dynamics and
pressure pulse characteristics. Internal
testing also confirmed that the direct
drillstring sensor provided opportuni-
ties to make accurate real-time dynamic
response predictions when feeding data
through analytical routines. These predic-
tions included axial/lateral vibrations and
estimations of downhole torque/speed
responses at high frequencies.
While these past findings provided
compelling observations that demon-
strated the system’s ability to optimize
performance and improve drilling effi-
ciency, quantifiable proof had yet to be
collected. The direct drillstring sensor’s
data were implemented recently into the
drawworks control system of a jackup rig
operating in the Gulf of Thailand, Fig.
1. The controls integration provided an
opportunity to extract measurable drill-
ing performance gains when using the
sensor data in the WOB control loop.
Eight parameters were used to quan-
tify performance in three categories: 1)
drilling dysfunction; 2) drilling metrics
and; 3) controllability. The test results
confirmed that the direct measurement
system improved performance in each of
these areas.
TEST PROTOCOL
During a one-year period, the drill-
string sensor system was tested in three
separate phases. The analysis included rig
World Oil® / OCTOBER 2018 35
ADVANCES IN DRILLING
integration testing and sensor functional- separated into three categories: 1) drill-
ity assessment, and culminated with an ing dysfunction; 2) drilling metrics and;
examination that provided direct in-the- 3) controllability.
loop feedback to the autodriller draw-
works control system. The new data were Drilling metrics. Limited data point
initially aggregated and logged in a drill- sampling from the deadline anchor pre-
ing controls system at 10-Hz sample rates sented issues that prevented conclusive
before downloading for review. Informa- results. The primary problem was that
tion describing well geometry, formation the limited sampled deadline anchor
lithology, and BHA were extracted from data points can lead to inaccurate well-
morning reports and mud logs. by-well comparisons. For example, data
analysis results on a per-well basis indi-
PHASE 3 RESULTS cate that the deadline anchor has better
Although three batches of test proce- ROP performance, yet greater WOB
dures were performed, Phase 3 delivered control error.
the most conclusive results and are the On closer inspection, the ROP’s
subject of this article. The findings were dependence on depth is primarily the
reason this is a false comparison. Pen-
etration speed is a function of depth,
Fig. 1. A direct drillstring measurement and shallower depths yield higher ROP
sensor was integrated into a standard top
drive internal blowout preventer. averages. The highest ROP average per
well was recorded by the deadline an-
chor (Well-1), in a condition in which
only the first 22 stands were drilled with
WOB control and the deadline active.
The lowest ROP average per well was
also recorded on Well-1, using the direct
drillstring sensor. However, this was an
average of the last four to five stands at
the deepest parts of the well.
The ROP decrease, as a function of
depth, is substantial. In fact, the stands
drilled/hr speed is less than half in the
well’s deeper sections, compared to shal-
lower borehole. These substantial ROP
performance variations, across the drilled
depths, coupled with the limited use of
the deadline anchor sensor for WOB con-
trol, required a more thorough statistical
approach to analyze the acquired drilling
data. To solve the issue, statistical metrics
Fig. 2. ROP averages per stand, for all wells, show that the autodriller, using the direct
sensor, has higher ROP trend (red) across the entire depth section. ROP increased up to
50 ft/hr at deeper depths.
36 OCTOBER 2018 / WorldOil.com
were calculated per stand and tabulated
as a function of depth. There were no
corrections for well-to-well variations,
because information from the mud logs
illustrated similar geological formations
and drilling conditions.
Establishing data control base-
lines. The data point scatter from this
approach appeared random, making it
difficult to identify performance pat-
terns. It was clear, however, that the sub-
stantially greater number of direct data
points taken appear to have a tighter,
more consistent grouping, as compared
to the larger scatter or deviation of the
deadline points in both ROP and abso-
lute WOB error. Unfortunately, the data
spread across depth (i.e., limited data at
deeper depths) is not as consistent for
the deadline points and could lead to
error in the analysis. Applying the least
squares method reveals the trends asso-
ciated with the statistical data in a con-
trolled manner and quantifies the ROP
spread by plotting the standard deviation
(STD). ROP variation over 8,000 ft, cal-
culated for each stand, indicates that the
STD is more than two times lower when
using a direct sensor with the autodriller,
rather than deadline control.
The STD is calculated from the sam-
pled data at 10-Hz for each stand. A critical
observation from this calculation is that,
except for the initial stands, the ROP varia-
tion is larger when using the deadline an-
chor. Also, its STD increases as a function
of depth, diverging from the STD calculat-
ed from data measured with the drillstring
sensor for WOB control. Furthermore, the
margin for ROP variation is higher for the
direct sensor data, because it is captured
over several additional wells. At deeper
depths, the difference in STD trends be-
tween the ROP data of the drillstring sen-
sor vs. the deadline anchor is quite signifi-
cant, with a magnitude of more than 50 ft/
hr. Perhaps the most significant illustration
of the performance improvement using the
drillstring sensor is the direct comparison
of ROP averages per stand, Fig. 2.
ROP data trends for direct sensor
WOB control are consistently higher
than those of the deadline sensor (red
and blue traces, respectively). This is a
meaningful observation, as it compiles
data across six wells, each consistently
exhibiting faster drilling speeds, with
the drillstring sensor updating the WOB
control loop as opposed to the deadline
 That was This is
Then Now

Conventional Subsea Field Subsea 2.0 Field

Introducing Subsea 2.0TM

What was then: Decades of venturing subsea into deeper waters with little urgency
to maximize system efficiency. What’s now: A new era of streamlined subsea
products that are simpler, leaner, smarter. Subsea 2.0 standardizes components
and slashes weight, size and delivery time. When combined with iEPCITM, our
integrated field architecture and project execution approach, Subsea 2.0
improves your project economics and unlocks first oil and gas faster.

TechnipFMC.com/WelcomeChange

Simpler. Leaner. Smarter.

ADVANCES IN DRILLING
anchor. The drilling rate increases at
shallow depths are 10-20 ft/hr, but they
increase to more than 50 ft/hr at deeper
hole depths. The substantial ROP im-
provement at deeper depths indicates
that there could be value added when
using the drillstring sensor to push the
limits of extended-reach wells.
The reason behind the ROP increases
when using the drillstring sensor is the im-
provement in the system’s closed-loop re-
sponse. Therefore, from the previous ROP
observations, the WOB error should di-
verge as depth increases. Moreover, the er-
ror with the deadline sensor control should
be greater at all points than the error re-
sulting with drillstring sensor use. This is
substantiated in Figure 3, where the data
trends display a diverging pattern, with
the deadline sensor (blue) trend diverging
from the drillstring sensor line (red).
Fig. 3. The WOB control error results for all wells correlate with ROP, illustrating lower
error when using the autodriller with the drillstring sensor (red) diverging at deeper
depths.
Fig. 4. Axial acceleration calculated for each stand across all six wells indicates
the autodriller with sensor control have lower RMS and STD values and less drilling
dysfunction.
38 OCTOBER 2018 / WorldOil.com
Comparing the blue and red traces
shows the WOB error is higher with the
deadline sensor active. These data points
were calculated by averaging the absolute
magnitude of each error value. This meth-
od was used, because the error signal fluc-
tuates around zero, create near-zero aver-
age values. The root-mean-square (RMS)
method also was used with similar results.
The error metrics show that the control
system with deadline anchor feedback has
more than twice the error at deeper depths
than does the control system with direct
sensor feedback.
Dysfunction identification. Drilling
dysfunction causes inefficiencies and can
lead to premature tool wear and/or ex-
pensive downhole tool failure. In theory,
more stabilized, increased bit-weight con-
trol should result in reduced drillstring vi-
brations. Results in the previous sections
have demonstrated improved drilling
performance when assessing key metrics
while using closed-loop WOB control
with the direct drillstring sensor. It is as-
sumed that reductions in axial and tor-
sional vibrations also will occur with the
use of the drillstring sensor closed-loop
WOB control.
However, downhole tool data were
not available to measure drilling dysfunc-
tion. Fortunately, the direct drillstring
measurements have demonstrated the
sensor’s ability to measure axial/torsional
drillstring dynamics. The 10-Hz sample
rate will limit the calculated response
spectrum to less than 5-Hz. Previous ex-
periments have shown much of the vibra-
tional energy concentrated around the
drillstring’s natural frequency to be less
than 5 Hz at these depths.
Additional calculations were per-
formed to quantify dysfunction using
two methods: 1) statistically comparing
the calculated drillstring axial and tan-
gential accelerations, and; 2) evaluating
the power spectrum of torque and axial
acceleration. These metrics indicate
relative severity of change rates in the
forces imparted on the drillstring along
its drilling axis (axial) and around the
drilling axis (torque/tangential). Met-
ric decreases indicate a reduced degree
of dysfunction that potentially could
prevent damage and/or reduce wear on
downhole tools.
Evaluating the axial acceleration of
the drillstring for control with both sen-
sors suggests that drilling dysfunction
increases when using the deadline anchor
for feedback. The data traces confirm this
observation, Fig. 4. A fit of the data points
from the RMS and STD of the derived ax-
ial accelerations (normalized) illustrate a
higher response when using the deadline
anchor for feedback. Additionally, the
best fit traces for STD and RMS, using
deadline control increase in value more
rapidly as the hole depth increases.
Torsional vibration was analyzed by
comparing torque statistical data points
and calculated rotational acceleration data.
Figure 5 displays torque data averages (red
and blue traces), showing a similar pattern
as a function of depth, expected since the
formation geology and well plans are simi-
lar among wells.
The STD calculated for each stand is
also similar when comparing the deadline
control (purple) with drillstring control
 Long journeys.
Hostile conditions.
Technological
challenges.

Volant rigid HydroFORM® centralizers will help you take your extended reach wells to new lengths and
depths, safely and reliably. Floating or fixed, they’ve proven extra tough in the most difficult conditions
wells can offer. We’ll provide you with a centralizer combination with optimized placement to meet the
needs of your application. The results are improved runnability, shorter run times and long term well
integrity. When it comes to cost savings over the life of a well, Volant delivers.

volantproducts.ca
ADVANCES IN DRILLING
(green). A larger variation was expected,
and thus a higher STD, when using the
deadline sensor in the control loop, but
this was not evident, and therefore, con-
clusions could not be drawn.
Results from the calculated tangential
acceleration, derived from the rate gyro-
scope, show that the direct sensor feed-
back is slightly worse than the deadline
anchor, when comparing their data trend
lines. Both STD and RMS values show
a relative increase when using the drill-
string sensor (blue vs. orange and green
vs. purple). These results are somewhat
counter-intuitive and may be due to reso-
lution limitations of the rate gyroscope, as
the difference is quite small.
A better approach for torsional and
axial vibration evaluation is to compare
Fig. 5. Average drillstring torque and STD values for each stand on all wells do not show a
measurable difference in torsional response of autodriller control with the sensor.
Fig. 6. Power spectrums illustrate torsional (left) and axial (right) responses, calculated for WOB autodrilling data from a well.
40 OCTOBER 2018 / WorldOil.com
the power spectrums of torque and ax-
ial accelerations during the times when
WOB control is active with each sensor.
Data from a specific well was used, be-
cause it contained data using both sen-
sor sources for control. As expected, the
response is similar for both sensors when
evaluating torque and axial acceleration.
However, the power spectrum magni-
tudes are slightly larger when the dead-
line sensor is active, indicating higher
vibration magnitudes and thus greater
dysfunction, Fig. 6. The overlays illus-
trate a marginal performance increase
when the direct drillstring sensor is en-
gaged, as shown by the lower-magnitude
peaks (orange). The main figures show
all stands combined as two colors: blue
trace (deadline active); and orange trace
(drillstring sensor active). Inset win-
dows illustrate each individual stand of
data calculated as different color traces.
Time-domain observation. The best
data set to demonstrate time-domain
performance comparisons was the well
that alternated regular drilling intervals
with deadline anchor control, followed
by drillstring sensor control. Similar to
the Phase 2 results, the system response
is most clearly seen when the control
loop sensor was switched while drilling
in the middle of a stand. The system re-
sponse characteristics are timelier with
the direct sensor (orange) and has a
tighter following error band around the
set points, Fig. 7.
SUMMARY
A direct drillstring measurement sen-
sor was integrated recently into a jackup
rig’s drawworks control system for WOB
autodriller control.
Phase 3 results with the direct drill-
string sensor in control are summarized
as follows:
• Drilling metrics:
° ROP increases took place
across the entire depth range,
with growing 10-50 ft/hr
magnitudes.
° ROP improvements were
greatest at the deepest
hole depths.
• Controllability metrics:
° WOB error was smaller,
with a two-fold reduction
at deeper hole depths.
° Time domain, closed-loop
 ADVANCES IN DRILLING

system characteristics higher increases at deeper depths—veri- sor, indicating lower vibration magni-
were improved. fying the direct sensor’s usage in extend- tudes—both axial and torque—and thus
• Dysfunction metrics: ed-reach drilling applications. reduced overall drilling dysfunction.
° Axial acceleration magnitudes Along with improved drilling perfor- Future enhancements include tuning
decreased statistically for the mance, results showed that the direct and filtering for autodriller optimization
entire well set. sensor’s increased bit-weight control and integration of other direct drillstring
° Axial acceleration magnitudes also reduced drilling dysfunction for measurement data primarily, torque, rota-
were reduced marginally from all Phase 3 test wells, especially with tion speed, and pressure.
calculated power spectrum respect to axial drilling vibration reduc-
ACKNOWLEDGMENT
response, when examining tions. Power spectrum comparisons of This article was adapted from SPE paper 187043, which was pre-
the frequency response torque and axial accelerations for the sented at the SPE Annual Technical Conference and Exhibition, San
Antonio, Texas, Oct. 9–11, 2017.
of axial data for the sensor- sensor switching well, when each sensor
switching well. controlled WOB, showed lower power WEB EXCLUSIVE: Visit WorldOil.com to view the author
° Torsional/tangential magnitudes magnitudes for the direct drillstring sen- bios for this article.
did not improve from the statisti-
cal data for the well set.
Fig. 7. A time-domain comparison shows the system response with the direct sensor
engaged (orange), showing improved rise, time, overshoot and settling time.
CONCLUSIONS
The data collected from the offshore
jackup rig provide substantial evidence
that a direct drillstring sensor improved
autodriller control, and improved drill-
ing performance when used to provide
measurement data to autodriller control
loops. Improved system stability and sen-
sitivity enabled the transfer of more con-
sistent weight control to the drillstring,
increasing ROP by 10 to 50 ft/hr—the

Bringing accuracy and speed to the wellhead.

The new AMETEK DYCOR® WellPro™ mass spectrometer has been designed
specifically for surface logging in the field. Unlike gas chromatographs,
the WellPro mass spectrometer unit can provide results beyond C1-C5
so you can know more about your drilling situation, instantly. DYCOR
accuracy is legendary—if the result says 45% C1, you know you’re dealing
with 45% C1. The rugged WellPro housing is designed for tough field use
and is transportable, so it can be truck-mounted and used at multiple sites.
Learn more at www.ametekpi.com
© 2018 by AMETEK Inc. All rights reserved.

World Oil® / OCTOBER 2018 41

 Enhancing
Hydrocarbon
Recovery
nanoActiv solutions are high-efficiency
®

intervention additives and methods—

maximizing hydrocarbon production rates.
nanoActiv solutions go further, work faster,
®

and are effective longer, enabling higher

volume hydrocarbon recovery.

nanoActiv® particles are

12–15nm (nanometers) in size.
This page is approximately
100,000nm thick.
nanoActiv.com

Start getting better returns today

with nanoActiv HRT, nanoActiv EFT, ® ®

and reCharge HnP™.

nanoActiv is made in the USA by Nissan Chemical in Houston, TX · Patent Pending
®

© 2018 All Rights Reserved · 1725


Advancing drilling operations through
collaborative work and innovation
Advances in drilling
technology are helping to
unlock challenging reservoirs
and achieve the industry-wide
goal of maximizing economic
recovery. This article discusses
the importance of innovation
and collaboration for the
industry moving forward, and
how new technologies are
maximizing efficiencies and
reducing costs.
ŝŝTRISTAM HORN, DeltaTek Global
Consistently underpinning technol-
ogy advances in the upstream oil and gas
industry is an emphasis on maximizing ef-
ficiencies and reducing costs. Innovative
SeaCure and ArticuLock are examples
of drilling innovation achieved through
collaboration.
SPECIAL FOCUS: ADVANCES IN DRILLING
technology provides the industry with
new opportunities, helping to unlock re-
serves and achieve greater efficiencies.
While it appears that the worst is
over, the three-year oil price recession
presented unprecedented challenges for
the industry and created a seriously chal-
lenging environment. Cost-cutting was
the norm, as companies addressed the
new reality, in order to survive and sus-
tain operations.
The key to establishing a more sustain-
able future has been the investment in
new technology. Technology, people and
collaboration are, and will remain, a firm
focus for the industry, with the three fac-
tors intertwined and helping companies
to advance and survive. Technological
advances have played a significant role in
transforming the sector; even more so in
recent years, as they help identify and de-
velop resources, achieve objectives faster
and more efficiently, and have optimized
production and operations.
Advances in drilling already have
helped reduce the surface impact of op-
erations. Yet, with drilling and well con-
struction accounting for the majority
of cost and risk in upstream operations,
operators are looking for innovative
technologies that can reduce costs and
add value to operations without compro-
mising safety. This has become a greater
priority recently, as the industry looks to
maximize recovery, and as work occurs in
ever-more challenging environments and
locations on more complex wells. Accord-
ing to OPEC, recoverable resources have
more than doubled since the 1980s, due
to advances in technology. For example,
where we used to be able to drill only me-
ters below the surface, new technologies
are now enabling us to drill kilometres be-
low the surface.
Innovation and collaboration are re-
quired to address the challenges facing
the drilling sector, with collaboration be-
coming almost as important as the new
technology. Both are a key focus for the
industry, and the establishment of inno-
vation centers, such as The Oil and Gas
Technology Centre (OGTC), demon-
strates the investment and commitment
in this area. The OGTC promotes a col-
World Oil® / OCTOBER 2018 43
ADVANCES IN DRILLING
laborative approach and assists with the
development, trial and commercializa-
tion of innovative technologies.
The OGTC received £180 million in
funding, to be invested in the North Sea
with the aim of maximizing economic
recovery on the UK Continental Shelf
(UKCS). This bolsters the supply chain
and ultimately promotes and encour-
ages an innovative mind-set in the region.
There are five key areas that have been
identified as significant by the OGTC—
asset integrity, marginal developments,
decommissioning, digital transformation
and, of course, wells.
Referring to the UK drilling market,
the OGTC claims that by reducing well
delivery costs as much as 50%, up to 5
Bboe could potentially be unlocked.
Additionally, with 30% to 50% of the
UKCS’s capital expenditure allocated to
well construction and management, new
and innovative technologies are needed
to sustain reduced costs and maximize
economic recovery. The OGTC has
been supporting the development of
Fig. 1. SeaCure is the company’s flagship
technology.
Fig. 2. Picking up ArticuLock on the Stena IceMax drillship.
44 OCTOBER 2018 / WorldOil.com
well technology, particularly for small,
innovative companies that are set to have
a huge impact on a traditionally conser-
vative industry.
RECOGNIZING THE NEED
FOR CHANGE
With purse strings being tightened but
the need to operate safely and efficiently
a non-negotiable priority, solutions that
can assist in optimizing drilling opera-
tions by simultaneously increasing pro-
ductive time and reducing costs are being
sought. Recognizing the growing need
for reductions in cost and risk, DeltaTek
Global was launched in 2015, in response
to the growing requirement for efficiently
implemented, intelligent, cost-saving and
risk-reducing products.
Our mission is to save rig time, us-
ing cleverly-engineered technology. The
company specializes in well construction
and has developed innovative technolo-
gies that are applicable to all subsea well
projects, regardless of depth. The two
primary technologies, ArticuLock and
SeaCure (Fig. 1), have been designed
to save rig time by either extending the
weather window for any subsea deploy-
ment or optimizing cement jobs.
The company, which has received fund-
ing from OGTC and Scottish Enterprise,
has been working closely with OGTC. The
center has supported DeltaTek’s entrance
into the drilling market by connecting the
company with key industry contacts and
facilitating a number of field trials in the
North Sea with major players.
How events have unfolded for our
company is a perfect example of collabo-
ration in practice, and the benefits that it
can bring to all stakeholders. It has been a
genuinely collaborative process between
our team, our investors and operators.
Innovative technologies are key to reduc-
ing cost and risk, particularly as we start
to work in more challenging locations.
The biggest hurdle initially is being able
to demonstrate results to prospective cli-
ents. Quantitative results are crucial, and
if you are unable to show significant cost-
savings and benefits over current meth-
ods, the willingness to even consider a
new technology can be limited.
This is why collaboration is so im-
portant across the industry, as it encour-
ages companies to think outside the box
and find new ways to address industry
challenges.
ARTICULOCK–CONTENDING
WITH THE ELEMENTS
The remote and harsh environmental
conditions offshore present significant
challenges, and they contribute to in-
creases in non-productive time and cost.
At the mercy of the elements, offshore
drilling operations can be prolonged by
high winds and increased wave move-
ment that intensify rig movement, which
can destabilize equipment. This is an age-
old problem for the industry, and it has
meant having to down tools and wait for
calmer weather. This creates a short win-
dow in which work can be completed in
the North Sea, and it leads to high levels
of unproductive time and rising costs.
DeltaTek’s ArticuLock system address-
es this issue by extending the window for
deploying subsea equipment by counter-
ing increases in rig movement. Behaving
much like a camera gimbal, the proprie-
tary system is essentially a ball-and-socket
joint that removes bending stress from
the subsea equipment. By removing the
bending stresses caused by increases in
rig movement, it stabilizes equipment
and enables work to continue in weather
conditions that would have previously
suspended operations.
Earlier this year, ArticuLock under-
went rigorous field trials on the Stena Ice-
MAX drillship (Fig. 2), offshore Las Pal-
mas, which were supported by the OGTC
and a result of the collaborative working
group between DeltaTek, OGTC and
Stena Drilling.
ArticuLock is fitted to the drill pipe
landing string, and it can be locked and
unlocked manually or by an ROV, as, and
 www.omc2019.it

Expanding the
Mediterranean
Energy Sector: 27-29

ITALY
Fuelling Regional March 2019
Growth RAVENNA

OFFSHORE MEDITERRANEAN
CONFERENCE & EXHIBITION

overall area visitors exhibition

30.150
sqm
20.603 halls
7
countries exhibitors sponsors
33 634 31
supporters delegates papers
20 1.221 116
CONNECT WITH THE MEDITERRANEAN
ENERGY KEY LEADERS
BOOK NOW!

EXHIBITION ORGANISER Ph. +39 06 30883030 CONFERENCE ORGANISER

exhibition@omc.it / +39 0544 219418 conference@omc.it
ADVANCES IN DRILLING
Fig. 3. The SeaCure tool in derrick
at test site.
Fig. 4. The SeaCure tool being torqued up.
46 OCTOBER 2018 / WorldOil.com
when, required by the weather and stage
of operations. The trial demonstrated
how bending stress and fatigue could
be removed from a rigid system using
ArticuLock. Stress tests, where adverse
weather conditions were simulated, also
were conducted to further demonstrate
how the system would perform in such
conditions.
Unproductive time, as a result of weath-
er delays, costs the UKCS a staggering
£400 million ($527.2 million) each year,
approximately. A situation that was pre-
viously accepted as the nature of the job,
more than 20% of a rig budget can end up
being allocated to waiting on weather. The
trials demonstrated how ArticuLock could
extend the weather window for subsea tool
deployment, and how it could contribute
to improved certainty and safety around
subsea tooling operations.
SEACURE–ENHANCING
CEMENTING OPERATIONS
Cementing is a critical step in well con-
struction, as it creates the seals required
for the well to function efficiently, and
to permanently prevent water migration
into the wellbore annulus. Traditionally,
cementing requires the use of shoe tracks
and plugs, with pressure tests carried out
on set cement to ensure the integrity of
the cement job.
However, new technologies can great-
ly enhance the efficiency and integrity of
cement jobs, which can deliver significant
cost- and time-savings to operators, as
well as reducing the risk of cement dis-
placement and micro annulus formation,
once the cement has set.
SeaCure, our flagship technology, is
an innovative subsea cementing system,
which delivers stabbed-in, inner-string
cementing for subsea wells. Inner-string
cementing involves a drill pipe being
used inside the casing to cement a well;
it is generally considered to be a more ef-
ficient technique, as it allows better con-
trol of cement displacement and fluid
interfaces. The proprietary SeaCure sys-
tem takes this process to the next level,
and provides a range of major cost and
time benefits to drilling and field devel-
opment operations.
The technology’s potential to opti-
mize drilling operations and save rig time
has been recognized by major operators.
Working with the OGTC, field trials
were completed at an onshore test well,
Fig. 3. The trials were attended by Chev-
ron, Siccar Point and AGR, and demon-
strated how the technology can increase
the functionality and efficiency of ce-
menting operations.
SeaCure can be deployed for opera-
tions involving surface conductors and
casing strings. It also can potentially be
used with drilling liners. Furthermore,
the tool could be applied to dry tree
cementing of any casing or liner string,
where time is of the essence for the ce-
ment to set.
The first SeaCure job took place in
September, where it was used to cement
a 30-in. conductor casing for Chevron’s
North Sea subsea appraisal well, West
Wick, which was being drilled from the
Ocean Guardian semisubmersible. With
no shoe track present, SeaCure eliminated
the need to perform a dedicated clean-out
run, prior to drilling ahead with a 12¼-in.
bottomhole assembly (BHA) straight out
of the 30-in. float shoe.
This technology is a completely me-
chanical system with no electronics or
hydraulics, making it a robust and reliable
technique for optimizing cement jobs
and saving rig time. It eliminates the need
for shoe tracks and round trips to clean
them out, which can take several days to
complete, especially in deep water. Fur-
thermore, it improves cement placement,
reduces displacement, facilitates offline
casing pressure testing, and improves drill
out performance by minimizing the risk
of damage.
THE MECHANICS
SeaCure’s unique design uses a combi-
nation of standard industry components,
such as a double non-return valve with
wiper dart receiver and drill pipe latch-in
receiver, which are used extensively in the
oil field.
Latch-in float equipment is run on
the bottom of the casing or liner, to be
cemented with the first section of in-
ner string containing the corresponding
latch-in drill pipe adapter at the base, and
a bespoke rupture disc port.
After the first section of inner string
has been inserted, the inner string sec-
tion of the SeaCure tool is connected,
followed by the rest of the inner string,
thereby making the system an integral
part of the inner string, when deployed,
Fig. 4. As the inner string and running
tool are lowered and secured downhole,
this action forces the tool to slide partially
closed and into the free rotate position,

which allows for safe engagement of the
running tool.
This section of the tool is the most im-
portant part, as it makes the whole tech-
nique possible. Using a standard slip joint,
it compensates length discrepancy be-
tween the casing and inner string. As well
as providing a generous 10 ft of stroke, a
clutch mechanism ensures safe engage-
ment and disengagement of the rest of the
casing system. This technique removes
the need for large running tool seals, as
rotary connections form the seals for cur-
rently performed cement jobs.
Once at cementing depth, cement is
pumped into the casing through the inner
string. The wiper dart is launched, fol-
lowed by a small amount of slurry. When
the wiper dart locks with the receiver at
the base, the resulting pressure bursts
the rupture discs, and the contents of the
inner string can escape through the run-
ning tool, allowing for post-cementing
circulation to start. Pressure tests can be
conducted during this process, while the
cement is still green, which eliminates
the risk of micro-annulus development.
These tests are critical to ensuring the
Challenging conventional
thinking in today’s cost
driven market
integrity of the cement job, and that the
SeaCure technique enhances cement seal
integrity and reliability.
With the casing tests completed as part
of the cementing process, the inner string
and SeaCure tool can be recovered, allow-
ing the next section to be drilled with no
cement plugs or shoe track to damage the
BHA or drill bit.
THE FUTURE OF DRILLING
Our technology is saving rig time by
reducing costs, risk and unproductive
time. Advances in drilling technology are
paving the way for unlocking challenging
reservoirs and achieving the industry-
wide goal of maximizing economic recov-
ery. The focus on technology, collabora-
tion and people needs to be maintained,
as all three are required to keep the in-
dustry moving forward. Collaboration is
playing a huge part in the successful adop-
tion of new technologies. For companies
like ours, it has provided an opportunity
to work alongside industry leaders and
operators, which have played an active
role in the development and acceptance
of new technology.
ADVANCES IN DRILLING
New technology is providing intelli-
gent solutions to address challenges and
talented, skilled personnel, who under-
stand the complexities of the industry,
are essential to developing and designing
the solutions that are needed to help the
industry progress.
Enhancing operational efficiency will,
forever, be a priority for the industry. In-
vestment in drilling technologies is es-
sential to continue delivering results and
maximizing recovery into the future.
TRISTAM HORN is CEO and
Founder of DeltaTek Global.
On graduating from the
University of Newcastle-upon-
Tyne with a Master of
Engineering, Offshore
Engineering degree with
honours, he progressed steadily through
various industry roles to become a drilling
supervisor for BP. Identifying problems in the
well construction process, Mr. Horn saw a gap
in the market for a simple system to bring
optimized land cementing techniques to the
subsea market, and SeaCure was born.
Convinced of the idea, he founded DeltaTek in
2015. SeaCure is an industry first that has been
funded by OGTC and Scottish Enterprise. At
just 30, Mr. Horn is successfully building a
business and an array of products, all of which
save significant rig time and costs.
www.doris-engineering.com
 The Anti Stick-Slip Technology (AST) provides
autonomous regulation of the force on the bit.
The result is a continuous cut with less energy
lost to friction, heat and vibration.

NEED FOR SPEED

3D & LAYOUT: RENDER.NO

The AST adapts the drill-bit loading to the reactive torque in
Yearly Tomax operations:
a closed-loop cycle with a response time of 50 milliseconds.
Its control algorithm is effective from zero WOB. The simple, 600
yet effective response creates a significant speed potential. 500
At the same time, the loss of energy to heat and vibration
is reduced. The result is longer bit life and less impact loading 400
of the drill-string components. This effect on the bit-rock 300
interface has been proven by mathematical models.
The models demonstrates an improvement in drilling efficiency 200
in the range 40 percent. This explains the continuous growth 100
in operations.
0
2012 2013 2014 2015 2016 2017
Contact us:
Houston: +1 713 557-7542 Faster speed and improved reliability have driven rapid
Odessa: +1 432 250 1313 growth for the new downhole regulator solution.
Aberdeen: +44 1224 561313
Stavanger: +47 51 95 11 70
Cape Town: +27 60 4161620
Dubai: +971 (0) 56 812 1025

www.tomax.no
 DRILL BIT INNOVATIONS

PDC bit technology

evolves to 4D cutters
In the past decade, PDC bits have overtaken
the market in applications where roller-cone
bits were traditionally the bit of choice. Major
Fig. 1. The ION cutter product family, a series of application-
specific cutter geometries designed to address the needs of more
challenging wells.

factors in this paradigm shift have been

advancements in PDC cutter manufacturing
and leaching technologies.

ŝŝDR. REZA RAHMANI, National Oilwell Varco

PDC-shaped cutters continue to expand their footprint, and

they are now used in all the applications drilled with PDC bits.
Although the concept of a shaped PDC cutter is not new to the
drilling industry, such cutters have become very popular in re-
cent years, thanks to advancements in cutter-rock interaction
modeling and cutter manufacturing technology.
National Oilwell Varco (NOV) developed a line of 2D and
Fig. 2. Pressurized laboratory testing ROP comparison between
3D cutters in its ReedHycalog business unit. These two ap- 4D cutters and baseline planar cutter in different rocks at 10 klbs
plication-based geometries are combined with the company’s WOB.
PDC cutter technology—enhanced with the latest leaching
200
techniques—to drive consistent performance improvements. 180 Baseline
The 2D cutters are designed for shale applications, with a large 160 4D cutter
chamfer added to the non-cutting side of the cutter. The cham- 140
fer reduces the contact surface between the cutter and cuttings, 120
ROP, ft/hr

and acts as a flow channel, directing the flow toward that inter- 100
face, to help with breakage of cuttings ribbons. The 3D cutters, 80
on the other hand, are designed with a chisel-shaped tip that 60
increases stress concentration on the rock to enhance fracture 40
initiation and propagation. 20
0
Torrey Buff Carthage marble Catoosa shale Halite (salt)
ENTRY OF 4D CUTTERS sandstone
Using the lessons learned from modeling, and laboratory
and field testing of those two cutters, NOV recently designed
the ION 4D family of shaped cutters, Fig. 1. The unique ge- teraction modeling, finite element analysis, computation fluid
ometry of these cutters consists of a chisel-shaped tip com- dynamics, pressurized drilling tests on different rocks (includ-
bined with a non-planar face geometry, which gradually trans- ing limestone, sandstone, shale and salt), as well as field runs
forms from a pointy tip to a large chamfer on the non-cutting in several applications.
side. A closer look at the cutter reveals similarities to previous Full-scale pressurized drilling tests were designed spe-
shaped cutters, including an enhanced 3D cutter at the tip, cifically to evaluate the cutters’ performance in rock under
combined with a modified 2D cutter on the non-cutting side. simulated in-situ conditions, using an 8½-in. PDC bit. Tests
The goal when designing the new line of 4D cutters was to on Torrey Buff sandstone, Carthage Marble, and halite (salt)
build upon the proven advantages of 2D and 3D cutters while were conducted at 1,500 psi, and the tests on Catoosa shale
at the same time making a cutter suitable for a wider range were performed at 1,800-psi borehole pressure. The results
of applications, such as medium/hard-brittle sandstone and indicated that for the same weight on bit, the 4D cutters im-
medium/hard-ductile limestone to soft-ductile salt and soft- proved ROP in salt 61% and reduced mechanical-specific en-
extremely ductile shale. The new cutters’ geometry was opti- ergy (MSE) 20%.
mized for maximum rock cutting efficiency while maintaining In addition, the ROP improvements in the other three rock
cutter durability via analytical and numerical cutter-rock in- types were between 29% and 40%. Resultant torque versus
World Oil® / OCTOBER 2018 49
DRILL BIT INNOVATIONS
ROP was another performance criterion, which was investi-
gated. ROPs of different-shaped cutters at certain torque set-
tings were compared to evaluate the cutters’ efficiency. This
was especially crucial to improving efficiency and aiming for
higher ROP, in applications where surface torque was a lim-
iter, Fig. 2.
Some examples of such applications include salt sections in
deepwater Gulf of Mexico wells and long laterals in unconven-
tional reservoirs, where frictional energy losses in the drillstring
consume the majority of available torque at surface. The use of
ION 4D cutters resulted in a 34% ROP gain in salt at the same
torque, equivalent to a 22% reduction in MSE. The cutters
also helped to achieve an ROP gain of 6% to 15% for the same
torque in the other three rock types.
FIELD TESTING
Field testing of ION 4D cutters is an ongoing endeavor. An
early vertical test was run in Pinedale, Wyoming, in an interbed-
ded application consisting of sandstone, limestone, shale and
salt, with traces of chert in the lower section and compressive
strength ranging between 10 ksi and 30 ksi.
An 8¾-in. six-bladed bit with 4D cutters on the primary
blades and the diamondback position drilled 1,974 ft in 12.27
hr, resulting in an overall average ROP of 160.9 ft/hr. This
Fig. 3. ROP and drilled interval comparison between a bit with 4D
cutters (red) and the same bit with planar cutters (orange) versus
offset runs (grey).
7,500
8,000
8,500
Measured depth, ft
9,000
9,500
10,000
10,500
11,000
0 50 100 150 200
ROP, ft/hr
Fig. 4. One of theTK56 bits with ION 4D cutters used in the
Powder River basin. The bit was pulled, with the cutters in
excellent condition.
50 OCTOBER 2018 / WorldOil.com
outcome was 45% faster than the average offset ROP of 111.3
ft/hr, and 15% faster than the fastest offset run, regardless of
bit design. Also, when compared with the same NOV bit de-
sign without shaped cutters, this bit was 19% faster. The rig
supervisor commented that the bit drilled significantly fast-
er through the salt zones, as well as in the limestone section
interbedded with sandstone and shale. This high ROP was
achieved while maintaining a dull grading of 1–1, Fig. 3.
In another run in the Williston basin, 4D cutters were tested
in the cone area of an 8¾-in. Tektonic six-bladed bit, which was
used to drill the top-hole vertical section—an interval of 6,525
ft—and reach TD at an average ROP of 191.9 ft/hr. The run
included drilling through layers of interbedded sandstone, silt-
stone, shale, halite, limestone, dolostone, anhydrite, and mud-
stone. ROP in this application was 7% faster than the offset, sav-
ing 2 hr of rig time. The 4D cutters came out of the hole with
no chipping and no wear on the diamond table. There was only
minimal wear on the tungsten carbide substrate. This was at-
tributed to rubbing against the formation, due to the bit’s high
instantaneous ROP.
Two additional test runs occurred in two different wells in
the Powder River basin, Wyoming. Both tests were done using
the same five-bladed Tektonic bit body with 4D cutters placed
across the bit profile, Fig. 4. In a lithology of mainly sandstone
and shale, one of the bits drilled 7,149 ft at 397.2 ft/hr to com-
plete the section in 18 hr. The ROP for this run was 25% above
the rig’s offset average. In the other well, the bit only needed to
drill 4,301 ft to complete the interval at an ROP of 623 ft/hr,
13% above the rig’s offset average.
CONCLUSIONS
Since the introduction of PDC bits in the 1980s, the indus-
try has shifted away gradually from roller-cone bits and almost
entirely to PDC bits. However, it was only in the past decade
that PDC bits truly overtook the market in applications, where
roller-cone bits were traditionally the bit of choice, due to the
hard and interbedded nature of the rocks. The major factors
contributing to this paradigm shift were advancements in PDC
cutter manufacturing and leaching technologies. Those im-
provements, combined with advancements in cutter-rock inter-
action modeling and testing, have resulted in development of
new, robust, shaped cutters.
The superior performance of the new shaped cutters in field
applications is backed by thousands of hours of research and de-
velopment. This surge in R&D is driving interest in shaped cut-
ter technology and inspiring continued new product develop-
ment to create geometries for varying well types and downhole
conditions.
DR. REZA RAHMANI is a team leader for Drill Bit New
Product Development at NOV, and has been with the
company since 2013. Previously, he was a research/
teaching assistant at Louisiana State University. Early
on, he worked for three years as a rig site supervisor
and drilling engineer for Iranian Offshore Oil Company.
His current focus is on drill bit new product
development, and cutter-rock interaction testing and modeling. Dr.
Rahmani holds a PhD in petroleum engineering from Louisiana State
University, an MS degree in petroleum engineering from Norwegian
University of Science and Technology, and a BS degree in mining
engineering. He is the author of more than 15 technical papers and
patents in drilling, and is a licensed Professional Engineer in the state
of Texas.

Manufacturers bring new
bit technologies to fruition
Despite suffering a major
loss of revenue during the
downturn, the OFS sector has
done an exemplary job
of funding R&D and launching
new drill bit technologies
designed to improve ROP and
useful bit life.
ŝŝCRAIG FLEMING, Technical Editor
With continuous advances in PCD
cutter technologies and further improve-
ments in bit body stability, PDC bits have
become the dominant force in worldwide
drilling theaters. However, in extremely
hard formations, operators still rely on
roller cones to drill the most difficult hole
sections to TD.
HIGH ROP PDC BIT
Rebounding oil prices have increased
activity, but demand for bit technologies
that reduce rig days remains unchanged.
To address the requirement, Baker
Hughes, a GE company, has introduced
new PDC bit technologies to improve
drilling efficiencies and lower well costs.
Antiwalk advances. Bit walk can add
days to the drilling program in uncon-
ventional oil and gas wells, as the driller
must spend considerable time sliding to
get back on target. On conventional mo-
tor assemblies, sliding can account for up
to 50% of drilling time, and yet only 10%
to 15% of the distance drilled.
Bit walk has been mitigated tradition-
ally by limiting operating parameters,
making changes to the BHA or extending
the bit’s gauge length to minimize lateral
vibrations. However, these solutions do
not address the challenge in wells with
unplanned deviations or long laterals.
BHGE developed its Dynamus An-
tiWalk bit technology to deliver better
directional control and stay in zone. The
DRILL BIT INNOVATIONS
design incorporates an engineered gauge
pad with a unique stripe that controls side
cutting response using lateral depth-of-
cut control, Fig. 1. This allows for better
tracking to hold azimuth and inclination,
resulting in increased ROP and reduced
dogleg severity.
The antiwalk bit can be fitted with a
wide selection of cutters, making it suitable
for a range of rock formations. The Dyna-
mus bit can be fitted with StabilisX cutters
to increase ROP and reduce the WOB re-
quired for interbedded formations. And
ShockWave cutters provide greater ROP
and durability, with improved cuttings re-
moval in all applications.
In the field, the new bit technology has
helped operators reduce rig time by drill-
ing with fewer course corrections that slow
time to target depth. In a recent application
in the Delaware basin’s Wolfcamp A shale,
the antiwalk bit maintained a narrower
azimuth compared to a standard drill bit,
which translated to a 48% reduction in slid-
ing time, a 33% improvement in ROP, and
a savings of 47 hr in drilling time.
Avoiding stick-slip. Drilling interbed-
ded formations can cause torsional vibra-
tions that lead to stick-slip and impact
loading. These conditions can damage the
bit/BHA and reduce drilling efficiency.
BHGE addressed this common challenge
with its TerrAdapt feature, the first in the
industry to proactively mitigate stick-slip
using dynamic DOC control technology.
TerrAdapt’s adjustable feature au-
tomatically regulates DOC, based on
changes in lithology, with no interaction
or control from the surface. When tor-
sional vibrations are first detected, the
bit’s DOC elements extend to maintain
stability. When vibrations subside, the el-
ements retract to enable maximum ROP.
Case study. An operator working in the
Austin Chalk of southeast Texas wanted to
use the bit to land and complete an 8½-in.
curve and lateral, using one BHA. Previous
attempts resulted in a less than 20% success
Fig. 1. A Dynamus bit with optimized
blade layout for increased stability and
higher ROP.
rate, due to inconsistent bit dulling from
run to run, which led to erratic bit damage
and performance. An 8½-in., six-bladed
adaptive bit was used to drill 4,949 ft in
78 hr, resulting in an overall ROP of 63.4
ft/hr. Compared with wells drilled previ-
ously, the new bit saved more than 100 hr
of drilling time for equivalent footage, con-
tributing to a 150-hr reduction in the time
required to complete the interval. In-bit vi-
bration measurements verified that the bit
drilled the interval with no stick-slip, and
very low vibration.
DATA CAPTURE AT THE BIT
Drill bit design is based on post-
run evaluation, and knowledge gained
through years of application experience.
The data typically used to understand the
conditions that the bit encountered while
drilling the interval, are taken from the
surface, or, at best, above the bit, where
vibrations and forces can be dampened.
To fully understand what is happening in
the bit, data need to be captured as close
to the rock-cutting structure interface
as possible.
To solve this problem, Halliburton in-
troduced the Cerebro electronic data cap-
ture system, which provides an unprece-
dented downhole view during the bit run
by capturing vibration and motion data
World Oil® / OCTOBER 2018 51
DRILL BIT INNOVATIONS
in three axes at 1,000 samples/sec con-
tinuously. The large information capture
helps identify areas where damage has oc-
curred and enables engineers to identify
non-optimal performance. Identifying
key limiters helps determine the differ-
ence between a bit run that is achieving
performance targets and sub-optimal per-
formance. The system also can determine
the type of dysfunction, and the source,
so that a proper design or parameter reso-
lution can be applied.
Although the ultimate goal is real-time
communication to the bit, recorded data
can be utilized to optimize future runs.
Fig. 2. Data document a dramatic reduction in vibrations as the DOCC element engaged.
Fig. 3. ION cutter geometries are designed to address challenges of demanding drilling
environments.
52 OCTOBER 2018 / WorldOil.com
Operating parameters can be changed
for similar drilling conditions, based on
general guidelines, as well as the type
and source of dysfunction. The operating
parameters guidelines will help optimize
overall field, or pad performance.
Mitigating stick-slip. It is well known
that depth-of-cut control (DOCC) fea-
tures will help mitigate stick-slip, and
increase toolface control. But there
are tradeoffs that make incorporating
DOCC elements in a PDC bit design a
complex process. Setting the DOCC ele-
ments too low can limit ROP. Converse-
ly, setting the DOCC inserts too high
can reduce the benefit of the feature.
Without access to continuous high-
speed data in the bit, proper setting of
DOCC height is based on intuition and
performance clues from surface data,
which may subjectively indicate a spe-
cific bit run has sub-optimal ROP, but
exceptional toolface control. However,
by using the high-speed data provided
by the Cerebro system, an acceptable
level of stick-slip can be identified, to de-
termine the optimum height setting and
performance expectations.
North American case study. On a re-
cent set of runs in North America, vibra-
tion and motion data were recorded to
better understand performance results
on several horizontal wells. The curve
interval was drilled utilizing standard di-
rectional PDC bits, as applied on previous
runs. However, the case study bits were
equipped with Cruzer DOCC elements
that roll on the bottom of the hole. The
smooth rolling action does not increase
friction and/or torque, thereby allowing
that energy to be utilized by the PDC cut-
ting structure. The elements were set at a
DOC of 0.15 in./rev, which, at the param-
eters used, allowed for engagement at a
higher ROP.
The data showed that as DOC in-
creased, vibration severity generally de-
creased, to the point at which the DOCC
elements started to engage, Fig. 2. The
data indicated that vibration peaked at
about 0.050 in./rev, meaning that above
this DOC, the run benefited from softer
formations, resulting in higher ROPs with-
out the damaging vibration. Secondly, the
data showed that the Cruzer elements were
extremely efficient at controlling DOC.
SCULPTED CUTTERS
Although shaped PDC cutters have
been on the market for several years, they
are now being used in more applications
because of advancements in cutter-rock
interaction modeling and manufactur-
ing technology. National Oilwell Varco
(NOV) has developed a line of 2D and
3D shaped cutters, in its ReedHycalog
business unit, Fig. 3.
The two application-based geometries
are combined with the company’s cut-
ter technology and enhanced with latest
leaching techniques, to drive performance
improvements. The 2D cutters are de-
signed for shale applications. The chamfer
 DRILL BIT INNOVATIONS

reduces the contact surface between the
cutters and acts as a flow channel, directing
the fluids toward the interface to help break
ribbons of drilled formation that can lead
to bit balling. The 3D cutters are manufac-
tured with a chisel-shaped tip that increas-
es stress concentration on the rock to en-
hance fracture initiation and propagation.
ION 4D. Using the results from field
trials, NOV launched an engineering
initiative to implement new shaped cut-
ters. The goal was to build on the proven
advantages of previous cutters, while
delivering a new element suitable for a
wider-range of applications. The program
produced ION 4D cutters, which have a
chisel-shaped tip, combined with a non-
planar face geometry, which gradually
transforms from a point on the tip to a
large chamfer on the non-cutting side.
Laboratory testing. A full-scale pressur-
ized drilling apparatus was used to test the
cutters in simulated in-situ conditions on
Torrey Buff sandstone, Carthage Marble,
and halite. The results indicated that for
the same WOB, the 4D cutters have the
potential to improve ROP in salt by 61%
and reduce MSE by 20%. In addition, ROP
improvements in the other three rock
types were between 29% and 40%.
Field testing. A vertical test was run in
Pinedale, Wyo., in an interbedded forma-
tion consisting of sand/limestone, shale/
salt, with compressive strength ranging
between 10 and 30 ksi. A six-bladed 8¾-
in. bit, with ION 4D cutters, drilled 1,974
ft at an average ROP of 160.9 ft/hr. This
performance was 45% faster than the av-
erage offset ROP of 111.3 ft/hr and 15%
higher ROP than the fastest offset run, re-
gardless of bit design.
Williston basin case study. In another
well, 4D cutters were tested in the cone
area of an 8¾-in. Tektonic six-bladed bit,
which was used to drill 6,525 ft of vertical
section through interbedded sand/silt-
stone, shale, halite and various carbonate.
The bit reached TD and averaged 191.9
ft/hr. The run was 7% faster than the off-
set, saving 2 hr of rig time.
Two additional test runs occurred in
the Powder River basin, Wyo. Both tests
were done using the same five-bladed
Tektonic bit with ION 4D cutters. In a li-
thology of mainly sand/shale, one of the
bits drilled 7,149 ft at 397.2 ft/hr to com-
plete the section in 18 hr. The ROP for
the run was 25% above the rig’s offset av-
erage. In another well, the bit only needed
to drill 4,301 ft to complete the interval
at an ROP of 623 ft/hr, which was 13%
above the rig’s offset average.
IMPROVED CRUSHING ACTION
The Xplorer Helix spiral TCI config-
uration is the latest innovation for Xplor-
er premium roller cone drill bits from
Smith Bits, a Schlumberger company.
The spiral layout of the TCI inserts im-
proves ROP 20% to 50%. The staggered
configuration means that the inserts pro-
vide better bottomhole coverage, which
increases rock-crushing efficiency. Con-
ventional cutting structures feature con-
centric rows of inserts that lead to ridges
of rock, causing the bit to track into the
grooves. The Xplorer Helix configura-
tion is designed to counteract track-
ing by staggering the inserts in a spiral
array, Fig. 4.

OUR BEST POTASSIUM

CHLORIDE FOR
EFFICIENT DRILLING
Trust k-Drill – the quality product for
your drilling fluid made in Germany.
For further information visit
www.kali-gmbh.com

K+S KALI GmbH

k-drill@k-plus-s.com
A K+S Group Company

World Oil® / OCTOBER 2018 53

DRILL BIT INNOVATIONS
Case study. Kuwait Oil needed to drill
a vertical 28-in. section from 500 ft to
5,000 ft MD through interbedded soft/
hard carbonates and shale layers. While
drilling the formations, with UCS values
ranging from 6,000 to 24,000 psi, the bit
suffered impact-induced TCI cutter dam-
age, which led to decreased ROP. Addi-
tionally, the section was very long, which
meant that seal and bearing life were an
important aspect for the design.
To solve the issues, the operator needed
to maintain a sharp cutting structure and
seal/bearing integrity, so that the section
could be drilled in one trip. An Xplorer bit
with Xplorer Helix configuration was se-
lected for the project, due to the bit’s arrays
of staggered carbide inserts that can en-
dure impact and can drill the section to TD
in one trip. The bit was run and achieved
an ROP 107% greater than the fastest ROP
in the field in similar applications. This re-
sulted in saving a total of four drilling days.
Collaborative approach. An opera-
tor in the Permian basin recognized the
need to further reduce drilling time and
well operating costs when drilling the
Fig. 4. A spiral TCI configuration increases
rock-crushing efficiency by improving
bottomhole coverage.
Fig. 5. XP PDC bit improves performance
in hard formations and highly interbedded
lithologies.
54 OCTOBER 2018 / WorldOil.com
curved portion of the wellbore. A rela-
tively simple approach could have been
deploying an off-the-shelf cutter to see
whether it would work. However, the
operator decided to pursue a collabora-
tive business model by engaging directly
with the service provider to find an opti-
mal solution.
Drill bit experts from the Schlumberger
Customer Performance Center worked
directly with the operator to understand
specific issues associated with drilling the
curve. The collaborative approach con-
sisted of two main components:
• A thorough review of operating
parameters and outcome-based
metrics for measuring drilling
performance in the curved interval.
• Analysis of a large drilling bit
run database, to develop a technical
solution that would not have
been considered otherwise.
Using the IDEAS platform to simulate
downhole bit behavior, experts identified
a PDC bit technology that had been de-
veloped for drilling curves in the Eagle
Ford and Marcellus plays. Given the
unique drilling challenges in the Permian
basin—specifically maintaining smooth
tool face control—it was determined that
a rapid cutting structure modification
would meet steerability targets and drill
the entire curve interval in less than 20 hr.
The fit-for-purpose solution combined
a pre-existing design with the DOC fea-
tures, additional backup cutters and modi-
fied gauge pad configuration. The opera-
tor field-tested the solution in Reeves and
Pecos counties, Texas, and the new cutting
structure increased ROP by 30%, with a
36% reduction in drilling time.
HARD ROCK PDC BITS
Modern drilling practices in hard rock
and transition zones require a PDC bit to
withstand higher drilling parameters, par-
ticularly increased WOB.
To meet the challenge, Ulterra Drill-
ing Technologies has developed the
XP product line, using sophisticated de-
sign techniques, high-quality materials,
and advanced manufacturing processes,
Fig. 5. The XP series is based on a bit body
engineered to ensure structural integrity
under extreme drilling conditions. This
level of design allows the bit to withstand
more demanding drilling parameters, in-
cluding greater WOB, without sacrificing
ROP. Along with high structural integrity,
the bits’ cutter positioning and force bal-
ancing are both optimized for reduced
tangential overload, to deliver maximum
stability under high-energy inputs. This
allows the best performance in challeng-
ing drilling environments.
As drilling information is acquired,
Ulterra’s unique rapid design and pro-
totyping process quickly optimizes each
design, enabling operators to improve
drilling performance from well to well.
New Mexico case study. Drilling for a
major operator in the northern Delaware
basin, a 97/8-in. XP616 bit achieved back-
to-back 24-hr footage records. In the first
well, the XP616 drilled 5,737 ft in one
day as part of a 6,800-ft vertical section,
resulting in an average 24-hr ROP of ap-
proximately 240 ft/hr. This was the most
footage drilled by a 97/8-in. bit in a 24-hr
period in the Permian basin.
Three weeks later, on the next well for
the same operator, the same XP616 beat
its own record, drilling 6,231 ft of hole sec-
tion in a 24-hr period, as part of a 6,560-ft
vertical section, while averaging 260 ft/hr.
This single bit effectively drilled 2¼ mi of
hole section in 48 hr, setting back-to-back
Permian basin footage records.
SHAPED CUTTER TECHNOLOGY
The ability to fine-tune a bit’s interac-
tion with a formation is producing unique
PDC bit cutter geometries that are im-
proving drilling performance. Experience
in the Permian basin, Oklahoma STACK
and Canadian laterals, using a variety of
shaped cutters, has resulted in significant
gains in ROP and total footage drilled.
FORCE shaped cutter technology,
developed by Varel Oil & Gas Drill
Bits, has produced four shaped cutter
geometries that match cutting action
to drilling conditions and objectives.
The OVAL, TRIFORCE, SCOOP and
FANG cutters feature raised ridges, con-
cave faces, and other non-standard ge-
ometries, Fig. 6. Each shape provides a
different cutting action to reduce torque,
pre-fracture the rock, create a progres-
sive backrake, and enable non-standard
positioning on the bit.
The cutters were developed by pro-
prietary capabilities in integrated design,
modeling, and realistic laboratory testing
that make it possible to quickly and effi-
ciently explore new options. Pioneering
research is yielding insights into cutters
and how they interact with various for-
mations. The relatively fast and reliable
 DRILL BIT INNOVATIONS

R&D cycle reduces the time, costs and
risks of a traditional learning curve that
is dependent on multiple field runs.
Moving quickly from concept to field
application means new options for in-
creasing ROP and footage drilled can
be explored easily. The success of the
process and resulting cutters validates an
increasing use of custom designs to im-
prove performance.
Field performance. In challenging ap-
plications, FORCE shaped cutters has re-
sulted in performance advantages versus
conventional planar geometries.
concave cutters produce a variable back-
rake and as the cutter shears deeper into
the rock, the face presents a progressively
higher effective backrake. The resulting
increase in efficiency achieves greater
ROP for an equivalent WOB.
The first regional run of a PDC bit
equipped with the concave cutters drilled
the lateral in the Bone Spring formation’s
shaley sand at 233.4 ft/hr, compared to an
offset average of 177.6 ft/hr. The proto-
type cutters also resulted in similar per-
formance in the fine-grained sandstone,
shale and conglomerate of Oklahoma’s
Owego formation.
proximately 3.2% further than the average
offset, and ROP was 70% higher than the
average of all offsets and similar to other
bits with raised profile cutters.
FANG cutters are scribe-type cutters
that are uniquely positioned on the cut-
ting structure. In a STACK well, placing
scribe cutters in patented interruptive,
secondary positions yielded performance
gains, drilling 32.3% above the average
footage with 53.8% higher ROP.
Fig. 6. Varel’s OVAL, TRIFORCE, FANG,
and SCOOP shaped cutters (clockwise
from top left).

OVAL cutters improved ROP when TRIFORCE cutters feature a ridged

drilling long, S-curve trajectories in Guate-
malan wells. In initial runs, bits equipped
with the cutters more than doubled ROP
in a medium-hard formation. As the oval
shape wears, it presents a smaller contact
point, which produces more force with the
same weight on bit. The cutters allowed a
tighter cutter placement and more efficient
cutting action with less reactive torque for
better directional control.
SCOOP cutters enhanced penetration
rates in West Texas’ Delaware basin. The
profile that concentrates force on a small
leading edge to fracture and plow through
the rock. For the same amount of travel,
the cutter removes a higher volume of
rock to produce higher ROP. The cut-
ters were used initially in the Delaware
basin to drill carbonates, shale and sand-
stone. The first-generation prototypes
had good performance and drilled 5,932
ft at 73.7 ft/hr. A second run in an Okla-
homa STACK well drilled through inter-
bedded sands, limestones and shales ap-

HELPING TO DEVELOP A SAFE AND

SKILLED OIL AND GAS WORKFORCE
• Driving global standards and qualifications
• Ensuring safety training is delivered to industry standards
• Assessing competence against industry approved criteria
• Developing competency frameworks alongside industry
and local government

250,000 people train to OPITO standards each year at one

of over 200 OPITO approved training providers in 45 countries

www.opito.com

World Oil®/OCTOBER 201855

 The strongest link in your supply chain is TimkenSteel.
Satisfying your production needs is as important as making the highest quality steel. That’s why we spend
time perfecting the custom alloy mix and chemistry that’s right for you. It’s why we offer value-added
services like thermal treating and precision machining and finishing to save you time and effort.
And it’s why we employ the best engineering, design and operational experts in the industry
to unite every phase of the process. Yes, it’s possible.

Call 866.284.6536 or visit timkensteel.com.


Data-driven solutions
improve oil field productivity
A suite of permanent
monitoring products takes
well monitoring one step
further by providing accurate,
reliable and cost-effective
multi-point temperature and
pressure sensing.
ŝŝGLEN BREERWOOD and CHRISTOFFER
NÅDEN, Halliburton
Eleven years ago, no one knew about
smartphones; today, we can hardly imag-
ine life without them—there are end-
less benefits, functions and usages. This,
combined with third parties installing
applications on smartphone platforms,
quickly disrupted existing technologies.
Many companies were left with yester-
day’s products. Rapid advancements,
along with development of electronic cir-
cuits, miniaturization and modifications
in how we apply and use the technology,
furthered this disruption.
Advances in consumer electronics also
benefit the oil and gas industry by allowing
service companies to develop new, ground-
breaking electronic-based devices. In gen-
eral, advances facilitate solutions that could
help meet industry challenges, such as in-
creasing reliability at elevated temperature;
improving serviceability; reducing the ef-
fects of vibration and shock; etc.
DOWNHOLE MONITORING
Since the first oil-producing well was
completed, industry pioneers have invest-
ed in technologies meant to gather reliable
information, in terms of the area of interest
or “pay zone.” With advancing electronic
technology reliability, the industry is now
using multiple tools containing electronic
devices. Permanent downhole monitor-
ing sensors for a completion have become
a standard requirement in most areas, be-
cause they monitor the well’s condition in
real time and help increase the oil recovery
RESERVOIR MANAGEMENT
rate by optimizing the oil output volume
Fig. 1. Halliburton is working to develop
while reducing water production. Some innovative technologies that create new
governments mandate the use of monitor- possibilities for operators.
ing technologies before sanctioning oil and
gas development. For these permanently
installed applications, reliability over time
is the primary enabler.
A MORE RELIABLE METHOD
Halliburton understands that innova-
tive technologies can create new possi-
bilities for operators and continuously im-
prove existing products, Fig. 1. Based on
the quartz crystal measurement technolo-
gy, ROC gauges demonstrate high reliabil-
ity, excellent accuracy, and minimal drift at
temperatures up to 160°C. The next step
in this evolution is the DataSphere Perma-
nent Monitoring suite—technologies and
solutions capable of acquiring data from
the entire wellbore.
Electronic components are becom-
ing smaller and more powerful, translat-
ing to electronic devices more compact
and robust with advanced capabilities.
To increase reliability at higher tempera-
tures for the DataSphere suite, the service
company developed multiple application- Traditionally, it has been a challenge
specific integrated circuits (ASIC) and to place more than eight pressure and
switched from ceramic to silicon capaci- temperature sensors along the comple-
tors. These improvements have reduced tion string, because of the added rig time
size and power consumption, and in- needed to make cable terminations and
creased reliability above 160°C. connect them to the sensor. By elimi-
nating cable terminations and mandrels
SYSTEM DESIGN (Fig. 2), it is possible to deploy more sen-
The company introduced the Data- sors without adding to rig time. The array
Sphere Array system as the first product to sensors measure pressure and tempera-
use this new ASIC electronic design. It is ture in the annulus space, closer to the
packaged in a 5/8-in. outer diameter hous- reservoir, making it possible to combine
ing, compared to 3/4-in. for the slimmest with traditional tubing-ported ROC sen-
ROC gauge. This allows these sensors sors, where needed.
to be placed in tight well constructions. Another benefit is the reduced poten-
As part of the manufacturing process, tial HSE risks of working with trapped
the sensors are connected and welded pressure on the rig floor. For conventional
to the tubing-encased conductor (TEC) gauge installations, the gauge should either
sheath at operator-selected depths along be connected using cable terminations to
the downhole cable. This deployment the TEC or to the mandrel on the rig floor,
method allows for an increased number to help prevent turning the pipe after con-
of downhole sensors, providing operators necting to the TEC. After the appropriate
with a better picture of the wellbore. connection is made, the service company
World Oil® / OCTOBER 2018 57
RESERVOIR MANAGEMENT
should pressure-test the connection, which
can take time if the temperature is declin-
ing at sunset or rising at sunrise. By elimi-
nating these connections, the array solu-
tion removes the need to pressure-test at
the rig floor; therefore, the potential HSE
risk with people near a pressure test is
eliminated for multiple connections while
running in hole.
No special tools are associated with
the array system to pick up and install on
the tubing string; the operation is similar
to installing regular control lines, includ-
ing cross-coupling clamps (CCC). Array
sensors provide an option to monitor all
zones during the completion, or at mul-
tiple points in each zone. Swellpacker
systems are recommended, when appro-
priate for well conditions, to isolate zones
and help prevent any necessary splices
along the completion. The system is well-
suited to monitor hydraulic fracturing and
works well with fiber-distributed tem-
perature sensing (DTS) measurements. It
can be deployed alongside gas lift valves
in the A-annulus, used to optimize gas lift
applications, and is ideal for deploying at
Fig. 2. The DataSphere Array system eliminates cable terminations and mandrels, making
it possible to deploy more sensors without adding rig time.
Fig. 3. Temperature profile, taken using live temperature sensors in the test well.
78
76
74
72
Temperature, °C
70
68
66
64
62
60
0 1,000 2,000 3,000
58 OCTOBER 2018 / WorldOil.com
the sand face to monitor production. Col-
laboration with the end-user helps ensure
that the system is used to its fullest po-
tential. Because of the small size and high
resilience, sensors can be configured and
delivered where needed, and in some of
the most challenging wellbore regions.
ARRAY DEPLOYMENT
The DataSphere Array system is a per-
manent monitoring system that enables
the operator to permanently deploy 50+
pressure and temperature sensors in the
well. Each array provides a configurable
number of discrete, real-time, annular,
downhole distributed, multi-point tem-
perature and/or pressure sensors. For
multi-stage fracturing, the array can be
deployed with the fiber-optic-based
DTS and distributed acoustic sensing
(DAS), to determine production effi-
ciency of each stage after stimulation.
Given the high resolution of the quartz
crystal technology, flow backpressure
and temperature data can be used in an
operator’s long-term production strategy
to increase recovery.
Sensor-52, top sensor
Sensor-54, middle sensor
Circulation stop
Sensor-59 bottom sensor
Circulation duration is 62 minutes
4,000 5,000 6,000
Monitoring pressure and temperature
along the sand face in a subsea well could
be worth up to $12 million, according to
operators. The sensor array design and
deployment method reduce operator cost
by lowering equipment investments, be-
cause a mandrel and terminations are not
needed. It also saves rig time when install-
ing the sensors. This comes in addition to
lower operational costs because of a re-
duced number of interventions and well
surveys, and the increased production
efficiency enabled by reliable, accurate
well data. For deepwater applications, the
array system can withstand some of the
most challenging and complex offshore
scenarios. It can enhance production or
injection efficiency when combined with
interval control valves.
The first array system was installed in
a test facility at Carrollton, Texas, as part
of the product qualification process. The
completed objectives are as follows:
• Successfully deployed a tempera-
ture sensor array
• Verified mechanical integrity
of the system, using live tempera-
ture sensors
• Replicated the size of both the
temperature sensor and the
pressure/temperature sensor
• Validated the installation procedure
and control line protection pack-
age by maintaining communication
with the array while running in
hole, and while pulling out of hole
• Detected differences in temperature
profile while circulating fluid,
as depicted in Fig. 3
• Demonstrated system compatibil-
ity with two different sheave
wheel designs
• Tested the surface acquisition equip-
ment with the array in real time.
The test well was successful, and ob-
jectives were accomplished; thus, the
system was ready for field trials. Multiple
systems have been deployed for various
operators, and feedback has been positive.
IMPROVED SENSORS
AND VISUALIZATION
To further enhance the DataSphere
suite, an ASIC electronic technology
design will be launched within the Op-
sis sensor, which will soon replace ROC
gauges and provide standard permanent
monitoring with increased reliability at
7,000 higher temperatures. The Opsis gauge
strives for longevity and reliability at
 Explore New Opportunities
with a World Oil Premium
Subscription.
Enjoy full access to archived technical articles, forecast data,
engineering data tables and more on WorldOil.com.

/ WorldOil.com
FOR OIL AND GAS
RE TECHNOLOGY
L, SHALE AND OFFSHO
G CONVENTIONA
MARCH 2018 / DEFININ
World Oil

D TUtheBIN G TECHNOLOGY
MARCH 2018

COILECTD, using drill bit

Geosteering
accuracy
as a sensor for better
& ADVANCES
SHALETECH: PRACTICES
stics aid
Subsurface DNA diagno
n
well spacing in the Permia
COILED TUBING

OFFSHORE E & C
support structure
World’s largest riser
EPCI solution
installed with unique
TECHNOLOGY

GULF PUBLISH
ING COMPANY

WorldOil.com is a powerful source of exploration, drilling and production

technical content and industry data, featuring:
• An archive of World Oil magazine articles dating back to 1998, searchable by keyword or topic
• Downloadable versions of the latest Drill Bit Classifier, Casing Table, Fluids Table
and Tubing Reference Table
• An archive of industry data and statistics for production, oil/gas prices and rig-related activity
• World Oil ’s exclusive forecast statistics for E&P activity
• Unlimited access to the World Oil iPhone/iPad app.

Subscribe Today!
Log on to WorldOil.com/Full-Access-Plan or call +1 (713) 520-4426.
RESERVOIR MANAGEMENT
Fig. 4. DataSphere LinX behind casing monitoring is a step change in reservoir
monitoring, enabled by wireless through-casing power and communication.
high temperatures. It will be the first
Halliburton permanent downhole gauge
to follow the AWES recommended prac-
tice for downhole electronics.
Another disruptive DataSphere suite
technology is the LinX system, which al-
lows sensors to be placed outside the cas-
ing, Fig. 4. Currently, powerful reservoir
models are used to estimate reservoir pres-
sure, based on algorithms and measured
datapoints within the wellbore. Using a
LinX inductive coupler to provide power
to, and communicate with, quartz sensors
in direct contact with the formation, allows
for accurate, real-time data on well condi-
tions. Primary areas of measurement are
the reservoir, cap rock, stacked untapped
reservoirs, overburden, or the B or C an-
nuli closer to the wellhead.
DataSphere sensors pair well with the
Completion Tools Voice of Oilfield visu-
alization solution that incorporates Edge
analytics to enable operators to perform
comprehensive frac monitoring, and opti-
mize production strategies in real time, to
deliver immediate results. These products
put data at the operator’s fingertips and
in their offices. Just like the smartphone
evolution, accessibility and data usage are
the important pieces—what good is more
data if it is difficult to work with, takes too
long to decipher, or the sensors are placed
in the wrong location?
60 OCTOBER 2018 / WorldOil.com
The industry needs a quick, user-
friendly interface with proper analysis to
make sense of the data. Speed and clarity
are fundamental when detecting frac hits
and resolving the resulting damage. By
installing array sensors in nearby wells to
understand frac interference, operators
can model fracture interaction across the
field for more accurate forecasting and
rate estimation. Additionally, long-term
drawdown pressure and temperature data
can be fed into the rate-transient analysis
algorithms to optimize flow regimes and
recommend various asset optimization
techniques. Combining comprehensive
frac monitoring, better rate estimation,
and optimized production rate, and using
drawdown monitoring with digital inno-
vations, can decrease costs and increase
ultimate recovery.
INCREASED EFFICIENCIES/
ECONOMIC BENEFITS
The DataSphere suite opens new
monitoring possibilities with added eco-
nomic benefit. Operators indicate that
pressure and temperature readings in
optimal locations will suffice for increas-
ing long-term production. For example,
before gauges were installed in cemented
applications, the industry viewed in-ce-
ment monitoring as possible, only when
performed with explosive charges fired
after the cement set. Halliburton proved
this is not necessary and that monitoring
within the cement is effective in retriev-
ing reservoir pressure data. Hence, the
array system has been deployed on cas-
ing in an observation well and cemented
in place to provide individual zonal pres-
sure readings while monitoring through
the cement.
This method for monitoring in cement
was developed for LinX sensors behind
casing monitoring applications, and the
methodology has been transferred success-
fully to the array system. For other cases,
operators can use a staircase approach to
product acceptance by installing the array
system behind casing in cement. Once ac-
cepted, the technology could be deployed
into production wells to enhance the long-
term efficiency of each well.
CONCLUSIONS
The service company continues to ad-
vance technologies that optimize produc-
tion and increase overall recovery. The
DataSphere suite of permanent monitor-
ing products takes well monitoring one
step further by providing accurate, reli-
able, and cost-effective multi-point tem-
perature and pressure sensing. Because
operators continue to push for more
information from their reservoirs, these
sensors may revolutionize extraction of
hydrocarbons from the reservoir.
GLEN BREERWOOD is the
product manager for
Permanent Monitoring, a
strategic segment of the
Halliburton Intelligent
Completions sub-product
service line. He began his career
with WellDynamics (now Halliburton Intelligent
Completions) in 2006, progressing from service
roles to business development to operations
management, and ultimately to principal
product champion before taking on his current
role. Mr. Breerwood holds a bachelor’s degree in
mathematics from Nicholls State University in
Thibodaux, La.
CHRISTOFFER NÅDEN is a
global advisor for Permanent
Monitoring, a strategic segment
of the Halliburton Intelligent
Completions sub-product
service line. He began his career
with WellDynamics in 2007,
progressing from control systems engineer to
principal technical services specialist before
taking his current role. Prior to joining
WellDynamics, Mr. Nåden worked with
Halliburton underbalanced drilling systems and
for NOV as a programmer. He holds a master’s
degree in cybernetics and industrial IT from the
University of South-Eastern Norway, along with
an undergraduate degree in automation. He is a
certified electrician.
WATER TECHNOLOGIES
 Shale Energy Technology Conference
NIOBRARA SHALE & UINTA BASIN
FATES HINGE ON ELECTION,
CRACKING THE CODE
ŝŝJIM REDDEN, Contributing Editor
Some 350 mi and a gaping civic and develop-
mental fissure separate the unconventional cores
of the Denver-Julesberg (DJ) and Uinta basins.
In contentious Colorado, the DJ Niobrara’s seat at
the head of the table is jeopardized by a potentially
decimating electoral showdown in November,
while northeast Utah’s multi-horizon Uinta basin
is yet to get a foot in the door.
“All of our acreage is in Wyoming. That’s really
kind of important at this point,” William Thomas,
CEO of Niobrara first-mover EOG Resources
Inc. told Barclays CEO Energy-Power Conference
on Sept. 5, in an obvious reference to next month’s
ballot initiative that would quintuple setbacks and
effectively put nearly all of Colorado’s prospective
privately-held acreage off-limits to new wells.
The triple-deck Niobrara, often stacked with the
underlying and similarly productive Codell shale, is
the source rock for the copious Wattenberg and Silo
fields of Colorado and Wyoming, respectively. Most
activity is concentrated in, and around, the gas- and
62 OCTOBER 2018 / WorldOil.com
condensate-rich Wattenberg of Weld County, Colo.,
which also is home to the long-festering conflict be-
tween operators, neighborhoods and anti-drilling
activists, along the populous Front Range corridor.
Between lobbying, DJ-Niobrara operators
managed to average 26 active rigs in September,
down one rig year-over-year, according to Baker
Hughes. Across the border, only five rigs were at
work throughout Utah, all but two operated by
EP Energy Corp. and Newfield Exploration
Co., which—along with Crescent Point Energy
Corp. and, more recently, Middle Fork Energy
Partners LLC—hold dominant positions within
the Uinta’s quasi-core Altamont-Bluebell field, the
basin’s largest. As with 66.5% of Utah’s aerial reach,
the Uinta is controlled largely by the U.S. Bureau of
Land Management (BLM).
Despite the charged environment and mid-
stream issues, the U.S. Energy Information Admin-
istration (EIA) estimates that October oil and gas
production in the Niobrara region will increase to
Rural acreage is a premium commodity,
as Colorado operators contend with an
incessant urban backlash. Image: HighPoint
Resources Corp.

World Oil® / OCTOBER 2018 63

SHALETECH / NIOBRARA/UINTA

Fig. 1. October oil and gas production is predicted to increase, month-over-month, by a modest 5,000 bpd and 54 MMcfd, respectively. Source: U.S.
Energy Information Administration (EIA).

1,000 6,000
Niobrara region oil production, Mbpd

Oil +6 Mbpd,
5,000

Niobrara region natural gas

800 month-over-month

production, MMcfd
4,000
600
3,000
400
2,000
200 Gas +50 MMcfd,
1,000 month-over-month
0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year Year

Fig. 2. Anadarko is running four rigs in its 350,000-net-acre leasehold in 620,000 bpd and 5,177 MMcfd, respectively, up year-over-year
the 48-year-old Wattenberg field. Image: Anadarko Petroleum Corp.
from 506,000 bpd and 4,719 MMcfd, Fig. 1. Meanwhile, op-
erators point to the August start-up of DCP Midstream’s Mew-
bourn 3 gas processing plant, and similar facilities in the works,
as helping mitigate severe midstream constraints.
Outside the EIA’s radar of major shale plays, the five principal
Uinta counties (Carbon, Duchesne, Emery, Grand and Uintah),
as of August, had produced a cumulative 12,735,663 bbl of oil
and 119,651,490 MMcf of gas this year, according to the Utah
Department of Natural Resources (DNR). A breakdown of
DNR data shows the quintet delivering an aggregate 28,762,264
bbl of oil and 302,339,076 MMcf of gas for all of 2017.

DUELING INITIATIVES
Spurred by incessant urban opposition, Colorado’s elector-
ate next month will decide whether to increase setbacks from
any “occupied structure or vulnerable area” from the current
500 ft to 2,500 ft. Passage of Initiative 97 would prohibit new
wells from being drilled on 85% of the state’s non-federal land,
Fig. 3. A comparison of the prospective zones and original oil-in-place the regulatory Colorado Oil and Gas Conservation Commis-
(OOIP) of the Permian Midland and Uinta basins. Source: Crescent Point sion (COGCC) concluded in a July 2 study.
Energy Corp.
“This is a ban. It’s to drive you out of the state,” Chip Rimer,
senior V.P. of Noble Energy Inc. told the Colorado Oil and Gas
Association (COGA) 2018 Energy Summit, as quoted by the
Wall Street Journal on Aug. 30.
The same election includes an offsetting initiative, which
would enable private property owners to seek compensation if
a law restricts oil and gas operations or otherwise reduces their
land’s “fair market value.” The so-called Initiative 108 is champi-
oned by both the industry and the Colorado Farm Bureau.
As a statutory amendment, even if approved by voters, Initia-
tive 97 could still be overturned or revised by the state legisla-
ture. Initiative 108, meanwhile, is a constitutional amendment
and would automatically become law with a favorable vote.
Rimer’s dire warning notwithstanding, Noble plans to in-
crease DJ expenditures in its play-high 335,000-net-acre posi-
tion, at the expense of curtailing completions in the takeaway-
challenged Delaware basin. In a twist of fate, gas processing
constraints had forced Noble earlier to reduce DJ activity from
once “historical levels.”
“Given the temporary deferral of completions in the Perm-
ian, we are planning to reallocate some 2018 and 2019 capital to
the DJ basin. This will provide additional DJ volumes in 2019,
partially offsetting more moderate Permian growth,” Gary Will-
ingham, executive V.P. of operations, told analysts on Aug. 3.
With two operated rigs, Noble drilled 23 wells with average
64 OCTOBER 2018 / WorldOil.com

lateral lengths of 10,000 ft in the second quarter, concentrated
within the Wells Ranch, East Pony and newly initiated Mustang
integrated development plan (IDP) area.
Anadarko Petroleum Corp. laid down two rigs and one
completion crew in the second quarter, across its 350,000-net-
acre Wattenberg leasehold, but insists next month’s vote had no
bearing on the decision to trim DJ activity levels. “If anything,
you might take just the opposite of that. If we were concerned
about it, we would push the capital forward and not wait,” says
President and CEO Robert Walker.
Anadarko is now operating four rigs (Fig. 2) and two com-
pletion crews, down from six active rigs and three completion
crews in the first quarter. The company drilled and turned-in-
line 63 wells in the second quarter, compared to 89 wells drilled
in the first three months of 2018.
After spudding 43 wells and turning 48 to production in the
second quarter, PDC Energy, Inc., intends to operate three rigs
and one completion crew for the remainder of 2018. With around
100,000 largely contiguous net acres prospective for both the Ni-
obrara and Codell, PDC is focusing primarily in Weld County’s
prolific Kersey area, where 30% of the estimated 150 to 165 new
drills this year will feature lateral reaches of 10,300 ft.
The electoral stakes would seem particularly high for
pure-play operators like Extraction Oil & Gas Inc., whose
325,000-net-acre leasehold includes some 170,000 acres in the
DJ core. The Denver-based independent, however, declined to
comment on the potential impact of the initiative, or its planned
activity for the rest of 2018.
T I M E SAV I N G S
We’ve shortened everything but expectations.
Dramatically minimize time, cost and SHE exposure with the
Weir Unitized Lock Ring Wellhead—compatible with 95 percent*
of casing configurations. Learn more at www.ULR.weir
*An additional 5 percent of casing configurations can be accommodated with the SMB-22-LR wellhead option.
Copyright © 2018 Weir Oil & Gas, Inc. All rights reserved.
WEIR and WEIR (logo) are trademarks and/or registered trademarks of Weir Engineering Services Limited.
NIOBRARA/UINTA / SHALETECH
In the second quarter, Extraction drilled 29 net (40 gross)
wells, targeting the three Niobrara benches and the Codell, with
lateral lengths averaging around 7,725 ft. The company also
completed 46 net (61 gross) wells during the quarter.
Fellow Wattenberg-centered player SRC Energy Inc. also has
not commented on the potential ramifications for its 90,000-net-
acre Wattenberg asset. For now, SRC plans to drill 117 gross (100
net) Niobrara and Codell wells in 2018, with 116 gross (103 net)
wells earmarked for completions. The company drilled 27 net
(31 gross) wells in the second quarter.
RURAL EDGE
Not surprisingly, properties outside the urban front line are
prized assets. HighPoint Resources Corp., of Denver, formed
through the recent combination of Bill Barrett Corp. and Fifth
Creek Energy, is especially keen to tout its status as “the only ex-
clusively rural DJ basin operator.” HighPoint controls 151,100
net acres, spread across the more sparsely populated plains of
Colorado’s Northeast Wattenberg and southeast Wyoming,
where its cumulative DJ assets include 86,700 net acres in Her-
eford field, near Laramie.
The company is running two rigs in the Hereford asset and
one in the Northeast Wattenberg, and expects to drill between
120 and 125 gross wells this year, most of which will be con-
structed with average lateral lengths of 9,500 ft. Extended-reach
drilling began in April on an aggregate 10-well Niobrara and
Codell drilling spacing unit (DSU) in the Hereford asset, with
initial flowback expected in the third quarter.
SAFETY RELIABILITY
Oil & Gas
www.ulr.weir
World Oil®/OCTOBER 201865
 SHALETECH / NIOBRARA/UINTA
EOG operates well outside of Colorado crosshairs and in the
friendlier confines of Wyoming’s Powder River basin. There,
the Houston operator controls 400,000 net acres, where this
year the Niobrara and underlying Mowry shale plays were des-
ignated the company’s latest premium drilling locations.
EOG plans to average two rigs and one completion spread
throughout 2019, and complete around 45 wells, compared to
39 in 2017.
Restructured Bonanza Creek Energy, Inc., likewise, de-
scribes its 67,000-net-acre position in the rural Wattenberg as
posing “little urban development risk.” As of September, Bo-
nanza Creek was running two rigs and two completion crews,
with 2018 guidance calling for the drilling of 59 net (77 gross)
Niobrara and Codell wells, with 37 net (49 gross) wells to be
put online.
POOR PLAYER’S PERMIAN?
With multiple, prospective zones (Fig. 3) and leases that can
be had for chump change by comparison, the Uinta would ap-
pear to be a cost-effective alternative to the increasingly pricy
Permian basin. However, owing to the growing pains intrinsic
to a nascent play, well costs can run “just a little bit north of $10
million,” says the EP Energy chief.
“We think there’s a lot of things that we can do long-term to
actually drop that cost structure down, but as it happens in any
program like this, when starting out, you usually are kind of in a
high-cost period, while you’re testing and trying things,” Presi-
dent and CEO Russell Parker told analysts on Aug. 10.
Your partner in stainless steel premium tubular solutions.
SHAPING OUR PRODUCTS TO DEFINE YOUR SOLUTIONS
At TUBACEX we take an inside perspective to define tailor-made solutions of high
technological value, offering the widest portfolio of seamless stainless steel
tubular products and a full range of services including design, manufacture and
after-sale operations.
This is possible thanks to our knowledge of the market, product and
technological processes, our commitment to R&D and our management model
based on continuous improvement.
Our fully-integrated manufacturing model offers total flexibility to cover the
most demanding requirements of the industry, assuring optimum quality and
product performance in the most challenging environments.
One Group of leading companies:
Holding around 157,000 net acres, EP is running two rigs and
has upsized the 2018 in-field pilot program to include four hori-
zontal wells with 10,000-ft lateral reaches. The company drilled
two wells in the second quarter, with average lateral lengths of
9,000 ft, while re-completing a company-record 29 wells.
Since 2012, Canada’s Crescent Point has amassed around
300,000 net acres in what it still described as an “emerging and
early-stage resource play.” In the second quarter, the Calgary-
based independent drilled 15 gross (7.9 net) wells and has set a
2018 production target of 25,000 boed.
Advancing in-basin activity now features the concurrent
completion of the stacked Castle Peak, Wasatch and Uteland
Butte formations, with laterals up to 10,560 ft long.
After wrapping up a 20-well horizontal drilling JV program
in its Central basin asset last year, Newfield will run a single rig
in 2018, to hold by production (HBP) the “vast majority” of a
more-than-225,000-net-acre leasehold.
Newfield plans to drill an additional 10 to 15 wells in the Cen-
tral basin this year, and says total drilling and completion costs are
now less than $7 million/well. Second-quarter net production of
around 21,000 boed was up nearly 30%, year-over-year.
On July 10, Denver’s Middle Fork Energy Partners took the
first step in entering the major stakeholder ranks, with a de-
finitive agreement to acquire the estimated 230,000 net acres
and associated production held by QEP Resources, Inc. The
$155-million deal includes properties in Duchesne and Uintah
counties, with quarterly production last reported at 54 MMcfd
of gas equivalent.
tubacex.com
Tubacex group, sharing your challenge_
 G D N X F L U I D E N D

T H E N E X T G E N E R A T I O N
O F F R A C F L U I D E N D S

G D N X
Today’s fracking applications require more from pressure pumping
equipment than ever before. That's why we created the GDNX – a fluid
end specifically designed to further increase the operational service

F L U I D life of fluid ends used in a hydraulic fracturing application.

E N D
GDNX offers:
• Our revolutionary Redline Consumables
• Superior fatigue life – patent pending design reduces operating stress
and maintenance intervals by 3.5x compared to competitors
• Compatibility – Direct fit to existing 2250/2500 pumps
• Proven Falcon Technology – service-friendly design reduces
maintenance time

Learn more about how this revolutionary fluid end can extend the
life of your operations.

G D N X . G A R D N E R D E N V E R P U M P S . C O M

Analytics can optimize oil and gas
equipment performance, predict failures
Given the opportunity that
analytics present, and the
pressures facing oil and gas
producers, the question isn’t,
“Can analytics help improve
our operations?” but rather,
“How long can we compete
without them?”
ŝŝANDY WEATHERHEAD, Rockwell
Automation
Today, the oil and gas industry, like
many others, is embracing a data-driven
mindset—what’s driving the shift?
The downturn in oil and gas prices put
pressure on producers to cut costs and
maximize use of their existing, aging as-
sets. But with operations more complex
than ever, optimizing equipment can be
an impossible task, when you are unable
to answer critical questions about health
and performance, such as: “Are we pre-
pared to react to ongoing market changes?
Why did a piece of equipment fail? How
long until it fails again?”
It’s difficult to improve equipment
availability and get ahead of failures, when
you don’t have real-time insights into per-
formance, or when the data you do collect
are confined to silos. Without a doubt, the
ability to collect raw data and turn them
into useful information for workers is es-
sential to staying competitive.
By 2020, Research and Markets pre-
dicts that $45 billion will be spent by our
industry on IT and IoT technology.
Hoping to capitalize on the promise of
the digital oilfield, oil and gas producers
are seeking to implement new IoT tech-
nologies and connect their equipment,
devices and systems, and integrate their
data, Fig. 1. Most critically though, pro-
ducers are looking for ways to transform
all these data into operational intelligence.
Implementing analytics doesn’t have
to be a mystery or an overwhelming task.
DIGITAL TRANSFORMATION
Fig. 1. Hoping to capitalize on the promise of the digital oil field, producers are seeking to
implement new IoT technologies and connect their equipment, devices and systems, and
integrate their data.
A connected oil field that operationalizes
data helps enable this transformation. In
a connected environment, stakeholders
have real-time insights to better under-
stand equipment performance, and use
those insights to predict future issues, al-
lowing them to be addressed before they
result in unexpected downtime.
WHERE TO START
Analytics involve monitoring large
amounts of data from multiple sources,
collecting and contextualizing those data
into information, and then presenting
that information to your workers in the
form of useful, actionable insights.
This requires seamless connectivity
across your oil field. The most basic job of
analytics is to provide context to data. This
could include well behavior and perfor-
mance trends from artificial lift systems, or
it can also include real-time performance
from surface processing skids, remote well-
head monitoring systems, or insights into
downhole and reservoir conditions. Fur-
thermore, analytics can help users investi-
gate anomalies and troubleshoot issues.
Oil and gas companies that want to
create a roadmap for deploying analytics
should first understand the three analyt-
ics categories, as well as their complexities
and benefits:
Descriptive and diagnostic analytics
are the starting point for producers. At the
most basic level, those data inform work-
ers about how things are performing and
the conditions in which they’re operating.
If a failure occurs, these analytics can help
technicians quickly diagnose the prob-
lem, and help make sure they send the
right person to the right place, with the
right tools, to resolve the problem.
Predictive analytics are the target goal
for many producers today. These analyt-
ics look for known conditions and rela-
tionships within the data that indicate a
device or piece of equipment is approach-
ing failure. Producers can use this to iden-
tify and prevent equipment failures be-
fore they happen, or prepare operations
World Oil® / OCTOBER 2018 69
DIGITAL TRANSFORMATION
and maintenance for an impending equip- paired with techniques like augmented re-
ment failure, providing a tremendous op- ality, operators or maintenance personnel
portunity to reduce costly downtime. can be guided through a set of digital in-
Note: Predictive analytics won’t al- structions to repair a failed piece of equip-
ways be absolute. Sometimes they are ment, or change operational parameters
configured around the probability of vari- to improve process performance.
ous failures. For example, a production At the highest analytics level, users can
team could set a threshold for a failure view their entire operations on a single
probability of 80%. If the software detects dashboard. This provides real-time, dy-
a failure probability at this threshold, it namic KPIs versus targets, and a prioritized
will trigger an alarm condition, and can list of required actions to meet business
notify users that a failure is impending goals. In addition, current performance can
and requires service. be compared to past performance. Opera-
Prescriptive analytics are the most tors can drill deep into each site, viewing
complex analytical techniques for equip- well-pad performance, and drilling even
ment maintenance and the ultimate goal further into a well or pump’s performance.
for most oil and gas producers. Prescrip- Rod-pump control analytics, for exam-
tive analytics build upon predictive ana- ple, can use downhole card information to
lytics to not only anticipate equipment provide insights into the downhole condi-
failure, but also recommend corrective tions, and identify whether equipment is
action, based on historical failure data and running optimally and if intervention is re-
trends. Workers can use the recommend- quired. Plunger-lift analytics are retrieved
ed actions to correct issues and optimize from the field and displayed as a timeline of
performance of assets in real-time. When well-performance indication, influencing
key operator decisions, such as if pressure
Fig. 2. One producer reduced operational should be increased. Gas-lift analytics can
costs by approximately $30,000/year, help operators to know whether they’re
per well. over-injecting gas and identify the proper
ratio of oil and gas injection.
ANALYTICS DEPLOYMENT
Consider the analytics approach when
determining the solution best suited for
your needs. In many cases, upgrades to
existing infrastructure will be needed, be-
fore the operator can fully utilize data in a
specific analytics strategy.
• Open architecture. Many produc-
ers use a mix of equipment, devices,
sensors and software from different
Fig. 3. When analytics are combined with business systems, producers can adjust
production quickly in response to market changes and business needs.
70 OCTOBER 2018 / WorldOil.com
vendors. But some solutions are not
vendor-agnostic, creating integra-
tion challenges that can impede a
producer’s ability to access the valu-
able data needed to meet their goals.
° An open-architecture analyt-
ics approach will support the
producer’s current technology
investments. True connected oil-
field solutions allow producers to
combine analytical technologies
with software, services and do-
main expertise from various oil-
field service companies. This en-
ables a digital solution that helps
optimize production through
real-time insights, to reduce op-
erational risks and costs.
• Scalable solutions process data as
close as possible to where the data
originate, eliminating time delays,
data reliability issues and the need
for high-bandwidth communica-
tion networks.
° For example, device-level ana-
lytics can provide health and di-
agnostic information for critical
devices, and even send alerts to
stakeholders’ mobile devices, if
a device needs attention. System-
level analytics can create smarter
equipment that asks for help be-
fore a failure occurs, or improve
collaboration between internal
and external stakeholders. And
business-level analytics can be
used to analyze production and
operational performance.
• Accurate. One aspect of data often
overlooked, but critical to achieve
the accuracy and usefulness of ana-
lytics, is data integrity. The infor-
mation solution should be able to
validate data coming from the field,
as well as minimize data gaps that
could impact the results of analytical
software and, hence, the decisions
made by operators.
• Intuitive. Producers should consid-
er how operators interact with the
results of the analytics and other sys-
tems, as they take actions to improve
the performance of operations. In-
tuitive, easy-to-use dashboards can
help workers not only identify and
understand critical production in-
formation, but also respond to it as
quickly as possible.
• Advanced. Newer and more power-
ful ways of operator interaction with
 DIGITAL TRANSFORMATION

the equipment and the process are
available today in the form of aug-
mented and virtual reality. For exam-
ple, maintenance personnel can use
augmented reality to get digital in-
structions that guide them in the pro-
cess of correcting an issue or repair-
ing a failure, subsequently improving
the accuracy and safety of their tasks.
Finally, the real-time data coming from
the process and equipment can be used
with digital twins to monitor performance
of the operation or to conduct “what if”
scenarios, enabling producers to optimize
the way in which they operate their facili-
ties and maximize or expand production.
ANALYTICS IN ACTION
In the vast oil reserves of Western
Canada, ARC Resources has multiple as-
sets deployed for the exploration, devel-
opment and production of conventional
oil and natural gas. At one of its large
multi-well sites, the company wanted to
optimize control operations and gain ac-
cess to valuable production information,
to support business decision-making and
equipment troubleshooting.
The company’s optimization team
deployed a Rockwell Automation Con-
nected Production solution, using analyt-
ics software to mitigate wax build-up and
reduce chemical injection in their wells.
The analytics solution helped ARC
Resources gain production visibility with
contextualized information for simpli-
fied equipment troubleshooting. The
system helps guide operators through
the entire well optimization lifecycle and
assists them to better respond to poten-
tial system and equipment issues. Since
implementing analytics, ARC Resources
has reduced operational costs by approxi-
mately $30,000/year, per well, and plans
to include it as a key part of its optimiza-
tion strategy, Fig. 2.
TAPPING INTO THE POTENTIAL
OF DIGITAL
Analytics, in a connected oilfield envi-
ronment, can help you track performance
trends, and quickly identify and react to
events affecting production and equip-
ment uptime. Additionally, it can help
producers be more proactive and prevent
downtime and lost production, Fig. 3.
When these analytics are combined with
business systems, producers can adjust
production quickly in response to market
changes and business needs.
It has never been easier to deploy ana-
lytics. The foundation that you need in
place is well-established, and new tech-
nologies can put the power of your data
directly into the hands of the workers who
need it, and contextualize it for them.
Given the opportunity that analytics
present and the pressures facing oil and
gas producers, the question isn’t, “Can
analytics help improve our operation,”
but rather, “How long can we compete
without them?”
ANDY WEATHERHEAD is
global engineering manager at
Rockwell Automation and has
over 28 years of control and
information solution delivery
experience in the oil and gas
industry. He has spent the last
five years focused on helping producers define,
implement and deliver the value of their digital
transformation strategy. As lead for the
Rockwell Automation Connected Production
solution, Mr. Weatherhead also oversees the
translation of the digital oilfield market
requirements into Rockwell Automation
Connected Production solutions.

US Gas Processing

ACTIONABLE INSIGHTS
Into US Natural Gas Facilities
The web-based GIS application includes detailed data on more than
500 US gas processing plants, 400 natural gas underground storage
locations, and 58 natural gas market hubs.

In-Depth Data
Such as key contact details, gas plant project/facility data
(including plant type/flow, BTU content, infrastructure,
storage capacity, plant status and ownership) for the
following layers:

• US gas processing plants • Natural gas underground

storage
• Natural gas pipelines
• Natural gas market hub
• Gas fields
• US Compressor Stations

Discover more at EnergyWebAtlas.com World Oil® / OCTOBER 2018 71

 Expand Your Horizons with World Oil
World Oil has been helping upstream professionals
achieve operational excellence for more than 100 years.
Published monthly, World Oil covers exploration, drilling, completions
and production, with in-depth technical reports and monthly regional case
studies encompassing the global nature of the upstream industry.

Join more than 45,000 industry professionals, and register for a

complimentary subscription today!

Claim your free subscription today!

Visit WorldOil.com/Free
World Oil

FEBRUARY 2018 / DEFINING CONVENTIONAL, SHALE AND OFFSHORE TECHNOLOGY FOR OIL AND GAS / WorldOil.com
FEBRUARY 2018

2018 FORECAST
Led by the U.S., the global drilling
recovery gains momentum

DIRECTIONAL DRILLING
2018 FORECAST

Turbodrills and matched bits achieve superior

results in hard, abrasive HT formations

SHALETECH: MARCELLUS/UTICA
Record laterals help feed new pipelines,
plants in northeastern U.S.

G & G TECHNOLOGY
Geo-engineered completion designs
improve recovery in unconventional wells
GULF PUBLISHING COMPANY

Chemical management goes digital
For producers to survive and
stay profitable, companies
are now more focused on
efficiencies and costs. These
pressures are prompting
operators to speed up
adoption of digitally enabled
solutions, to improve
productivity and safety.
ŝŝPAUL GOULD, Clariant
Since the industrial revolution, the oil
and gas industry has played a fundamen-
tal role in global economic development,
fueling power for heat, light, mobility and
industrial operations. Over the last few
decades, the industry has supplied key
raw materials for a vast range of consumer
products. Consistently at the forefront of
new technological developments, opera-
tors are able to venture to new frontiers—
inhospitable regions, deeper reserves,
more remote locations and unconven-
tional plays—traditionally thought to be
beyond reach. Today, this same industry
is on the cusp of overcoming boundaries
and practices to, once again, redefine its
future, Fig. 1.
THE NEW ECONOMIC
LANDSCAPE
After demand from emerging econo-
mies pushed oil prices to an unprecedent-
ed high in 2008, they went into a devas-
tating free-fall when the global economic
crisis curbed demand for energy, forcing
oil and gas companies to rethink their
operations, Fig. 2. This resulted in aggres-
sive and wide-ranging cost-cutting, capi-
tal efficiency and ultra-lean operations.
Though oil prices have shown recent
signs of recovery, analysts consider the
business mechanics of oil and gas produc-
tion deeply changed. Added to this, many
companies have experienced only moder-
DIGITAL TRANSFORMATION
Fig. 1. Consistently at the forefront of new technological developments, operators are
now able to venture to new frontiers—inhospitable regions, deeper reserves, more remote
locations and unconventional plays—traditionally thought to be beyond reach.
ate operational gains involved in the ex-
tension of existing wellbores, extraction
from harder-to-reach or declining reser-
voirs, environmental accountability and
even knowledge transfer issues through
the retirement of the current labor force.
This has created an incentive, a mandate
even, for producers to manage their assets
smarter and more efficiently.
To survive and stay profitable, produc-
ers—who have focused primarily on high
output to take advantage of strong prices
and demand—are now more focused
on efficiency and costs. The standard
approach to downturns is no longer ad-
equate. Ongoing pressures are prompting
companies to speed up the adoption of
digitally-enabled solutions, tackling chal-
lenges head-on while providing value to
their stakeholders. The transformational
shift is demanding dramatic changes in
business models, workflow, and technol-
ogy investment, which have given rise to
what is now known as the digital oilfield.
OILFIELD CHEMICALS
The period over which oil is produced
from a well can last several decades. Dur-
ing the drilling and throughout well life,
chemicals play a vital role in hydrocarbon
recovery. However, insufficient chemical
management and supervision also can lead
to malfunctions, leaks and spills that result
in environmental or contractual fines, as
well as conflicts with authorities and land-
owners, thus adding to the economic and
production challenges already noted.
The chemicals being referred to are
production chemicals. Unlike many other
oilfield chemicals, they are mostly spe-
cialty chemicals that serve very precise
purposes and are used in comparatively
small volumes. They find application as
important aids during the actual separa-
tion phase of crude, water and gas, and
eventually transportation to the refinery.
Among the most important produc-
tion chemicals are scale inhibitors, which
are injected into the well to prevent the
deposition of mineral scale on downhole
casing, tubing and other equipment. In-
hibitors that suppress the formation of gas
hydrates and waxy or asphalt-like deposits
are injected for similar reasons, keeping
the well and its fluids free from materials
that could hinder recovery. Corrosion in-
hibitors reduce the effects that flow stim-
ulating acids may have on downhole pipe-
work and above-ground components,
while oxygen scavengers serve to mitigate
corrosion in water injection equipment.
Other important production chemicals
include demulsifiers, clarifiers, foamers,
defoamers and biocides. For enhanced oil
World Oil® / OCTOBER 2018 73
DIGITAL TRANSFORMATION

recovery (EOR), well service additives, However, oilfield chemicals can have a on service rounds (or so-called “wind-
also referred to as flowback aids, can be very large impact on total operating costs shield time”), but also to many other
used to improve extraction from mature and profitability when their supply and routine activities, such as documenting
reserves and difficult formations. The mix application are not optimized. Failure to deliveries on paper or computer spread-
of chemicals applied is usually designed efficiently treat wells against corrosion or sheets, or processing orders and invoices
specifically for each oil field and well. They hydrate blockage, for example, can result at the office.
can be dosed in large batches for single in- in production downtime, causing losses If they want to remain viable, chemical
terventions, small regular batch additions in revenue and profit, as well as the sub- service companies have no choice but to
or continuous injection. As the volume of stantial costs for repair and workover. The pass on such costs to customers. Addition-
produced fluid and other operating condi- small decreases in flowrate, caused by ally, the potential risks for staff and the en-
tions changes, the selection and amount of scale, wax or other deposits, can translate vironment that are inherent to the logistics
chemicals used must be adjusted accord- into large losses of produced fluid over of supplying a large network of wells with
ingly, and well conditions are monitored time, which may ultimately determine the chemicals—as well as the manual labor
closely to assure optimal flow. viability of operations. involved in injecting or restocking them—
When compared to other economic can increase with each visit to a site.
factors, oilfield chemicals and related ser- COMPLEXITY OF OILFIELD On the production site, the complexity
vices make up a small part of so-called lift- CHEMICAL MANAGEMENT of chemical maintenance and order fulfil-
ing costs—or the total cost of operating The various associated activities in- ment results in the need for highly-com-
and maintaining a well after the reservoir volved in oilfield chemical management petent personnel, to constantly monitor
has been found and made ready for pro- also have the potential to add up, espe- and verify the performance of services.
duction. According to estimates, the cost cially on large fields if not executed in the Lack of visibility into these services and
of chemicals and chemical services aver- most efficient manner. This can apply to the data brings additional challenges for
ages between 20 and 40 cents per lifted the long hours that chemical drivers and the producer, when needing to make the
barrel, depending on the field. field technicians spend behind the wheel necessary decisions and measuring the
success of the chemical program.
Fig. 2. After demand from emerging economies pushed oil prices to an unprecedented Decision-makers in oilfield chemicals
high in 2008, they went into a devastating free-fall, when the global economic crisis management are looking to innovation
curbed demand for energy, forcing companies to rethink their operations. and technology to improve efficiencies
160 and cut costs. Using newly-available en-
Development of crude oil price 2000-2018, USD/bbl

140 abling technologies, such as low-cost sen-

sors, big data analytics and cloud comput-
120
ing, companies are increasingly adopting
100 innovations that range from digital fleet
65.18
80 USD/bbl management and predictive maintenance
60 to enhancements in field productivity.
40
A new study by the International Ener-
gy Agency (IEA) estimates that just with
20
the increase and widespread use of digital
0
May 22 May 1 May 3 May 1 Feb 19
technologies already in existence, oil and
2000 2005 2010 2015 2018 gas companies could lower their produc-
tion costs 10% to 20%. The agency bases
Fig. 3. In a joint Accenture and Microsoft survey among upstream companies in 2016, this projection on assessments shared by
more than 90% stated that digital technology was already adding value to their business. upstream operators and service provid-
Digitalization: Value creation and investment attitude ers. IEA sees potential for even bigger
91% of respondents are already seeing 72% of respondents believe cost reduction is 80% of respondents plan to invest cost reductions, if technologies that are
value from digital today, and more than
half of all respondents believe digital
an important (27%) or the most important
(45%) challenge digital can help address
the same amount (30%), more (36%),
or significantly more (14%) in digital
only now emerging, especially those en-
technologies have added high (36%) technologies over the next three to five years hancing connectivity and monitoring, are
to significantly high value (17%)
working and find general acceptance.
In a joint Accenture and Microsoft sur-
17% 17% vey among upstream companies during
45%
72% 36% 2016, more than 90% stated that digital
36% 80% technology was already adding value to
91%
their business, and more than 70% saw
27% 30%
cost reduction as an important, or even
38% the most important, challenge that it
28%
9% 20% could help address. About 80% of respon-
dents said that despite the low-price envi-
Significantly high value Some value Most important Average or below Significantly more Same amount
High value Low or none Important More Less or undecided ronment, they planned to invest the same
Data source: Accenture/Microsoft.
amount, or more, in digitalization in the
near future, Fig. 3.
74 OCTOBER 2018 / WorldOil.com
 DIGITAL TRANSFORMATION

However, oil producers are trying to
resolve a multitude of inter-connecting
issues across the value chain by invest-
ing in a digital alternative that provides
better efficiency, control and transpar-
ency. They are often faced with a per-
plexing myriad of separate hardware and
software solutions that are difficult to
integrate into existing systems. The tra-
ditional approach of selectively adopt-
ing a set of technologies and unsystem-
atically implementing digitalization is no
longer suitable.
DIGITIZATION:
THE NEW ENABLER
Oil and gas companies have been em-
ploying stand-alone technologies to im-
prove production operations for the past
couple of decades. Clariant was one of the
first companies to recognize the potential
to develop a digital chemical management
system, introducing its first iteration of
VERITRAX almost a decade ago. Since
then, the company has availed of the latest
smartphone and Internet of Things (IoT)
technologies available to fully digitize all
field processes, Fig. 4.
The system is a suite of hardware and
software solutions that substantially in-
creases efficiency and cost-effectiveness,
while improving well integrity through
predictive maintenance and mitigating
risk through lower hazard exposure. By
integrating all essential elements of pro-
duction surveillance, control and analysis
into a fully digitized, remotely operable
and intelligent system, it optimizes pro-
cesses on every level of oilfield manage-
ment. A streamlined and fundamentally
enhanced version of its field-proven 2009
predecessor, it has been informed by the
experience of hundreds of oilfield chemi-
cal managers, who identified over 600
discrete processes that represent the best
practices in Chemical Oilfield Manage-
ment. The system represents a multi-
million-dollar software investment and
has been demonstrated to increase total
oilfield performance by up to 15%.
It is used to schedule, monitor and re-
port all aspects of oilfield services. This
includes the scheduling and performing
of deliveries and the posting of analytical
tests, in addition to other multiple types of
reporting. To fulfil its many different tasks,
the system uses sensors and Industrial In-
ternet of Things (IIoT) telemetry equip-
ment installed at the oil well, in combina-
tion with highly sophisticated software for
data entry, processing and distribution.
This can be accessed via smartphones and
many other cloud-connected devices. The
security of the cloud-stored data is man-
aged by a leading third-party cloud service
provider, whose data centers are effectively
safeguarded against cyber risks.
Clariant drivers and field technicians
are equipped with smart phones and other
mobile devices that help manage job lists
and activities. When chemical deliveries
are made or services are performed, the
smartphone records date, time, GPS posi-
tion and user ID, as well as details about the
treatment and associated metadata, such as
a well’s API number. For each visited site,
the metering devices on the delivery trucks
measure the exact amount of chemicals
delivered. This information is saved and
added to the delivery record for verifica-
tion purposes, and is also provided to the
oilfield operator, along with invoices.
Chemical tanks—both those used to
supply delivery trucks and those for dos-

Register for FREE at WorldOil.com/Webcasts

LIVE WEBCAST: OCTOBER 30, 2018 | 10 A.M. CST / 3 P.M. GMT SPEAKER:

Nathan Tungseth
Global Product Group
Digitalizing Onshore Upstream Operations to Save Manager – Onshore
Oil & Gas, ABB
Time and Money
The boom in the consumer technology arena means increasingly affordable remote sensors SPEAKER:
and cloud computing are now putting digitalization within easy reach of the onshore Darren Schultz
upstream sector. From the wellhead through to central processing facilities, there are a Global SCADA Product
range of technologies powered by the Internet of things which can make operations more Manager – Oil and Gas,
productive and less expensive than ever. These include local automated controls, remote ABB
analytical tools, SCADA in the cloud and artificial lift.
SPEAKER:
Join this webinar to discover practical, low cost suggestions for how digital can help you
Braden Robinson
not only work more efficiently and more effectively but also more safely by limiting the Solution Architect –
time you need to spend in the field. Oil and Gas, ABB

Sponsored By: Presented By:

World Oil® / OCTOBER 2018 75

DIGITAL TRANSFORMATION
Fig. 4. Clariant has availed of the latest smartphone and IoT technologies available to fully
digitize all field processes.
ing at the well itself—are fitted with spe-
cial sensors, so that the system can moni-
tor the inventory. If tank levels are low, the
system automatically places orders for re-
plenishment and generates corresponding
invoices. All chemical deliveries, including
batch deliveries injected into pipelines or
dosing points, are scheduled automatically
by the system, which continually calculates
the most efficient job lists and itineraries.
Alerts can be configured individually and
can interact intelligently with the recipient.
Aside from chemical needs, the system
also forecasts service requirements, such as
pump repair and calibration. VERITRAX
can be linked to the producer’s SCADA
system or time-based process recording
program, allowing the coupling of chemi-
cal data with production data to provide
accurate, total performance correlations.
Through integration with SAP, the
system also can provide precise ware-
house forecasting. It automatically sends
invoices to the enterprise resource plan-
ning (ERP) system of the serviced oil and
gas producer. The VERITRAX Customer
Dashboard is updated every five minutes
from the Cloud, allowing customers to
access data in real time through this web
application, specifically developed for
chemical management.
The system also integrates the analyti-
cal testing performed on well fluids, to de-
termine the need for chemical adaptations
and anticipate potential well failures. Field
technicians attach a barcode to each sam-
76 OCTOBER 2018 / WorldOil.com
ple taken at a wellhead, pipeline or oil and
gas separator. They enter the sample into
the system by scanning the code, as well
as other data, like photos or comments.
Samples are then tracked to the laboratory.
Test results and analyzed reports are then
made available to both the technician and
customer via the dashboard.
BENEFITS IN THE FIELD
VERITRAX reduces the driving hours
and manual handling that chemical man-
agement has traditionally involved by
providing the time- and effort-saving con-
venience of digital supervision and con-
trol. Replacing weekly drives out to well
sites to measure chemical tank levels and
monitor proper functioning of pumps,
field technicians can now perform these
tasks remotely.
Similarly, if remotely controlled chemi-
cal pumps are used, visits for adjustment
purposes can be reduced significantly. The
system also prevents over-frequent chemi-
cal deliveries that drivers often undertake
to be on the “safe side.” Field personnel are
also relieved of laborious record-keeping.
All of this reduces risks of gaps in chem-
ical treatment programs, which can lead
to production shutdowns and increased
workover costs, as already stated. Staff safe-
ty is reduced by mitigating exposure to po-
tential hazards, such as chemical, mechani-
cal or driving accidents. At the same time,
the enhanced transparency and reliability
of chemical programs lowers the risk of
well failures, due to chemical stockouts or
equipment malfunctions, helping to maxi-
mize production uptime and profitability.
Easier monitoring also reduces the risk of
leaks and spills, and the potential environ-
mental, regulatory and contractual conse-
quences that can result, Fig. 4.
OFFSHORE SOLUTIONS
Targeted to be part of an oil and gas
company’s digital transformation journey,
Clariant is also introducing VERITRAX
for applications in both onshore and off-
shore operations. Logging incoming data
and processing them through a series of
KPI evaluations, the system provides a
comprehensive and real-time overview of
the risk profile for subsea and wells, chemi-
cal handling, and facilities and export, al-
lowing personnel to focus on problem res-
olution and optimizing operations, rather
than data collection.
CONCLUSION
Digital transformation is altering the
way that industries operate, on a scale
comparable to major industrial revolu-
tions of the past. While it has tremendous
potential to benefit the industry, to un-
lock its full value, companies need to work
with experienced and trusted partners
that have proven digital system solutions.
Out in the field, VERITRAX greatly
reduces the need for time-intensive, risk-
increasing well visits and laborious manual
data collection, while also minimizing the
economic and environmental hazards as-
sociated with leaks, blockages and equip-
ment malfunctions. In the lab, it provides
near real-time analytical data and produc-
tion histories that offer unprecedented
insight into the effectiveness of chemical
maintenance programs. In management
and accounting offices, the solution affords
a new level of control over all aspects of
chemical servicing, supply and billing that
puts provider-client relations on a more
transparent, mutually profitable basis.
PAUL GOULD is global head of
digital strategy at Clariant,
where he manages the
development and deployment
of IIoT and Big Data solutions,
for the oiI, refinery and mining
business lines. He specializes in
systems that use chemicals to optimize the
performance of continuous processes in oil
production, mining and water treatment. His
expertise includes: edge devices, SCADA and
networking, as well as leveraging predictive
analytics and expert systems to create unique
market offerings.
TRAIN
ELEVATE
NETWORK
The go-to resource
for the oilfield services
and equipment sector.

Get connected at PESA.org.

REGIONAL REPORT
MENA
The heart of global oil exports thrives amid geopolitical tensions
 MICHELE COWART, News Editor
The Middle East and North Africa (MENA) remain the
quintessential oil exporting region, replete with consider-
able assets and tensions. “Oil markets are very much linked to
geopolitical tensions, especially if they are in the Middle East,
said Fatih Birol, executive director of the International Energy
Agency (IEA), in an interview. “The oil industry is still thriving,
and this is shown through different exporting countries like Iraq
and Iran, bouncing back from their different sets of challenges,
stronger than ever.”
Kuwait and the UAE exemplify regional strength. Kuwait
has announced ambitious capacity targets for 2020, that could
see the country increase oil capacity from 3.2 MMbpd at the
start of this year to around 4 MMbpd by 2020. This includes
85,000 bpd of new heavy oil output. Meanwhile, the UAE, ear-
lier this year, signed a $1.5-billion concession deal with Austria’s
OMV to expand oil output 215,000 bopd.
In another sign of regional strength last July, ADES Interna-
tional Holding Ltd. signed a definitive agreement with Weath-
erford International for the $287.5-million acquisition of 31 on-
shore drilling rigs, in line with its strategy to strengthen onshore
capabilities. ADES will acquire Weatherford’s onshore drilling
Left – BP, holding a 60% interest, is the operator of Block 61, which contains Khazzan field, approximately 217 mi southwest of Muscat. The Oman Oil Company for Exploration
and Production holds a 40% interest. Photo: BP. Center – The ultra-deepwater development, semisubmersible Maersk Discoverer is drilling offshore Egypt. Photo: BP. Right –
The LR5 drilling rig at the Khazzan Project, Oman. Photo: BP.
78OCTOBER 2018/WorldOil.com
operations, including associated assets, contracts, management
systems, and approximately 2,300 employees and contract per-
sonnel spread across Algeria, Kuwait and Saudi Arabia. The ac-
quired assets include 12 rigs in Kuwait, 11 in Saudi Arabia, six in
Algeria and two in southern Iraq.
MIDDLE EAST
Saudi Arabia is the world’s second-largest oil producer
and largest oil exporter, as well as OPEC’s biggest member,
and home to the world’s largest oil company, state-run Saudi
Aramco. As Brent crude hit $80/bbl last May, OPEC decided
to boost production to meet rising demand and keep prices in
check. Saudi Aramco CEO Amin Nasser said oil demand is ris-
ing by 1.5 MMbpd to 1.7 MMbpd and will be “healthy” next
year. In addition, the U.S. is said to have asked Saudi Arabia and
others to relax output restraints put in place since early 2017.
As a result, Saudi Arabia boosted oil output to the highest level
since October of last year. Its daily production rose 162,000
bopd to 10.030 MMbopd in May, according to Bloomberg.
Saudi Aramco changed plans from pursuing a potential IPO
in the parent company, which began in 2016, to offering a stake
in chemical giant Saudi Basic Industries Corp., which may be
worth $70 billion. In addition, the Kingdom has granted a 40-
year concession to Saudi Aramco, with an option for a 20-year
extension, to exploit the kingdom’s hydrocarbon reserves. The
previous deal was for 60 years, and it ended in 1999. These steps
will add value to Aramco, as the crown prince insisted that the
company should be valued at $2 trillion or more, but current
analysis places the figure much lower.
Iraq holds the world’s fifth-largest crude reserves, accord-
ing to data compiled by World Oil, and is OPEC’s second-
biggest producer. In addition, Iraq has managed to increase
oil production slightly, averaging 4.463 MMbpd during 2017.
In response to recent progress, the country announced a re-
vised capacity target, with the aim of reaching 6.5 MMbopd
by 2022. In July 2018, the country’s rig count average reached
59, 10 units higher than the same period last year. This has
been the main contributor to the MENA region’s overall rig
count increase.
Within the first few months of 2018, Royal Dutch Shell
sold, for an undisclosed amount, a stake in West Qurna-1 oil
field to Japan’s Itochu Corp, the latest step in a gradual with-
drawal from the region. In addition, Shell EP Middle East
Holdings agreed to sell the entire share capital of Shell Iraq
B.V., which includes the 19.6% stake in West Qurna-1 oil field,
for $406 million, to a subsidiary of Itochu.
To offset a production loss in the north, where a dispute with
the semi-autonomous Kurdish region has crippled pipeline ex-
ports through Turkey, state-run Basra Oil, in the south, targeted
an increase in production to 3.5 MMbopd by the end of the year
from 3.15 MMbopd now, according to Director General Ihsan
Abdul Jabbar. The firm plans to pump 4.5 MMbopd by the end of
2022. Iraq sees output capacity at 5 MMbopd by the end of 2019.
In addition, Iraq plans to increase output at the southern
deposit of West Qurna-1 to 480,000 bopd by December from
450,000 bopd, according to Hassan Mohammed Hassan, head
of the field’s joint management committee, during an interview
in Basra. Output would jump to 800,000 bopd by the end of
2022, he said.
As an opportunity to increase investment, Iraq held its 5th
bid auction during second-quarter 2018, requesting bids for
three blocks along the border with Kuwait, seven areas at the
border with Iran, and one offshore block in the Persian Gulf.
Just over half of the energy deposits were offered to UAE-based
Crescent Petroleum Co., China’s Geo-Jade Petroleum Corp.,
and United Energy Group, with headquarters in Hong Kong.
To further boost exports, Iraq has plans to construct export
facilities on a man-made island in the Persian Gulf. This $4-bil-
lion project will inject seawater into its southern oil fields, to
dislodge more crude from the deposits, according to Basra
Oil’s Jabbar. The goal is to double output at Majnoon field to
450,000 bopd.
Gazprom Neft Middle East commissioned a second well,
Sarqala-2, at its Sarqala field within the Garmian Block,
Fig. 1. Cumulative production at the field stood at 7 MMbopd,
as of April 2018. Drilling of the Sarqala-3 well was planned for
third-quarter 2018, completing Phase 1 of field development.
In addition, Lukoil and Basra Oil signed a development plan
for West Qurna-2 field that provides for an oil production pla-
teau of 800,000 bopd. According to the plan, production of
480,000 bopd will be reached in 2020, and 800,000 bopd is
expected in 2025.
In July, Norwegian operator DNO announced a two-thirds
increase in production from Peshkabir field, which is in the
Tawke license, to 25,000 bopd, following completion of the
World Oil®/OCTOBER 201879
REGIONAL REPORT / MENA
Peshkabir-4 well testing program. The next well, Peshkabir-5,
has been drilled about 4 mi west of Peshkabir-3. Peshkabir-5
is producing around 8,000 bopd. “At around 35,000 bopd,
Peshkabir has now leapfrogged into second place after Tawke
among the Kurdistan fields operated by international oil com-
panies,” said DNO Executive Chairman Bijan Mossavar-Rah-
mani. Also, Peshkabir-6 and Peshkabir-7 were drilling ahead
at press time.
Iran has the world’s largest gas reserves, estimated at 1,194
Tcf, and the fourth-largest oil reserves at 155.6 MMbbl, accord-
ing to data compiled by World Oil. Per the 2017 average of 4.442
MMbpd, Iran is the fifth-biggest oil producer, following Russia,
Saudi Arabia, the U.S. and Iraq.
The country is the subject of a second round of U.S. sanc-
tions, due to be implemented on Nov. 4. The forthcoming U.S.
sanctions on Iran will impact $200 billion in potential energy
deals, according to Bloomberg. However, during the brief pe-
riod when the sanctions were lifted in 2016, output recovered
from 2.9 MMbopd in 2015 to 3.8 MMbopd, surpassing pre-
sanction levels of 3.6 MMbopd.
Fig. 1. The Garmian Block consists of an onshore development
project area of about 50 mi2, which contains the Sarqala
oil discovery. WesternZagros and its co-venturer, Gazprom
Neft Middle East B.V., received approval for the Garmian field
Development Plan in May 2016. Photo: WesternZagros.
Fig. 2. The LNG tanker BROOG in the port of Ras Laffan,
northeast Qatar. Photo: Total.
80 OCTOBER 2018 / WorldOil.com
Prior to these newest sanctions, analysis of Iranian crude
oil production showed that approximately $21 billion in capex
were set to be spent by the country on oil projects between
2018 and 2021, to ensure that output grows to around 4.9
MMbopd in 2021, according to GlobalData. Accordingly, the
country would have 66 fields producing liquid hydrocarbons
by 2021, of which 38 are conventional oil and nine are heavy
oil fields, while 19 are gas fields producing condensate.
Since the first sanctions were eased, Total has been the only
Western energy major invested in Iran, committing $1 billion
at giant South Pars gas field. Total has a 50.1% stake in the 20-
year South Pars project, with China National Petroleum Corp,
holding 30% and Iran’s Petropars with 19.9%. However, Total
will withdraw from the project, if it doesn’t get a waiver from
the U.S.
In May, the U.S. administration withdrew from the landmark
2015 Iran nuclear deal ( Joint Comprehensive Plan of Action),
set to curb Iran’s nuclear program and reinstate financial sanc-
tions on the Islamic Republic. The U.S. will institute the “high-
est level” of sanctions against Iran to get them to “zero” exports.
According to the U.S., companies with ties to the U.S. that are
doing business with Iran have 180 days to get out of oil deals
with the Middle Eastern producer or face retaliation. This move
will detract foreign investors, thus keeping the country’s output
flat or lower through 2025. Iranian President Hassan Rouhani
suggested his country would continue to abide by the agree-
ment, but that it was now between Iran and the other signato-
ries, China, France, Russia, UK and Germany and the EU.
In May 2018, the National Iranian Oil Co. (NIOC) signed
a heads-of-agreement for a 10-year, $1.16-billion agreement
with Pergas Resources International Ltd. to work on Karanj
oil field in Khuzestan province. Karanj produces 127,000
bopd, and Iran plans to use gas injection to boost output to
200,000 bopd, with an ultimate recovery of 655 MMbbl of oil
over 10 years.
UAE. The UAE announced plans to invest $109 billion
in their E&P sector until 2022. The emirates pumped 2.89
MMbopd in June, 20,000 bopd more than in May, according
to a Bloomberg survey. Crude and condensate exports rose to
a nine-month high in June, on demand from Japan and China.
In July, government-run producer ADNOC said that it had
“the ability to increase oil production by several hundred thou-
sand barrels of oil per day,” should this be required to help al-
leviate any potential supply shortage in the market. ADNOC
reportedly can pump as much as 3.3 MMbopd and is working
to increase output capacity to 3.5 MMbopd.
In addition, Al Yasat Company for Petroleum Operations,
a subsidiary of ADNOC, awarded an EPC contract for full de-
velopment of the Bu Haseer field offshore, to Abu Dhabi’s Na-
tional Petroleum Construction Company. ADNOC Upstream
Director Abdul Munim Al Kindy said, “The award of the EPC
contract, to further develop Bu Haseer, one of our most recent
upstream developments, illustrates our commitment to grow-
ing production capacity and is part of our 2030 smart growth
strategy, driving a more profitable upstream.”
Oman. Petrofac received a contract worth $265 million for
development of the Marmul Polymer Phase 3 (MPP3) Project
to boost oil output in southern Oman. This is the first award to
be secured under a 10-year framework agreement with Petro-
leum Development Oman (PDO), signed in 2017.
Gold Sponsors
 Liquefied Natural Gas

REAL-TIME LNG DATA

Any project. Any time. Any place.
Updated in real time, the Energy Web Atlas, a web-based platform,
enables users to access worldwide facility and project data.

Actionable Data
• Owner/Operator • LNG shipping/vessel
• Project status information

• Project storage and capacity • Global Shipping Ports

• Shareholder data • Global Natural Gas Pipelines

• Process method

Comprehensive
Functionality
• Import external data
• Custom annotation,
reporting and graphing
• Interactive data filtering
• Layer/attribute access
and modification
• Production quality maps,
PDF exports

• Data exports • Interactive charts/statistics

DISCOVER MORE AT ENERGYWEBATLAS.COM


In April, BP and Oman Oil Company began development
of Ghazeer, the second phase of giant Khazzan gas field. This
follows last year’s successful start-up of Khazzan’s first develop-
ment phase. The project is now producing 1 Bcfd and around
35,000 bcpd. The project should go onstream in 2021 and pro-
duce an additional 0.5 Bcfd and over 15,000 bcpd. The Khazzan
and Ghazeer developments are expected to produce a total of
10.5 Tcf of gas and around 350 MMbbl of condensate, accord-
ing to BP.
In May, Total signed an MOU with the government to devel-
op gas resources in the country. Total and Shell will develop sev-
eral gas discoveries in the Greater Barik area on onshore Block
6, with respective shares of 25% and 75%. Initial gas production
is expected around 500 MMcfd, with a potential to reach 1 Bcfd
at a later stage.
Qatar. In September, the world’s biggest LNG producer
announced plans to ramp up output, as competing supplies
from Australia and the U.S. are also set to come to the mar-
ket over the next decade. State-owned Qatar Petroleum will
build four new liquefaction trains by 2025, up from a previ-
ously announced three, CEO Saad Sherida Al Kaabi told re-
porters in Doha. That will boost production to 110 million
tons of LNG/year from 77 million currently. Qatar last year
announced plans to boost capacity to 100 million tons within
seven years, Fig. 2.
“The decision to increase output even more was driven by
rising demand for gas and the good results obtained through
recent additional appraisal and testing in North field,” said Al
ON-DEMAND WEBCAST
REGISTER FOR FREE AT WORLDOIL.COM/WEBCASTS
ShaleTech™ Hydraulic Fracturing Forum: Fall 2018
with Jeff Orita, Ryan Supak, Lia Sedillos, Dr. Andrey Bogdan and Moderator, Joe D. Woods
New Technologies in Hydraulic Fracturing
PRESENTERS:
Jeff Orita, Regional Sales Manager, Completion Tools, National Oilwell Varco
Ryan Supak, Sales Manager, Pressure Pumping, National Oilwell Varco
The Value Proposition of Regional Sand vs. Northern White Sand
PRESENTER: Lia Sedillos, Vice President Technical Sales, Covia
Will Machine Learning Drive the Next Shale Revolution?
PRESENTER: Andrey Bogdan, Ph.D., Technical Advisor for Advanced Analytics and Technology,
BJ Services
MENA / REGIONAL REPORT
Kaabi, referring to Qatar’s portion of the giant offshore res-
ervoir shared with Iran. Qatar’s total oil and gas production
will reach an equivalent of 6.2 MMbpd when the expansion
is complete, up from 4.8 million currently, he said. Qatar Pe-
troleum plans to make its FID on the expansion by the end
of 2019, and to reach its new 110-million-ton/year target in
2024, Al Kaabi said.
Kuwait announced plans to invest $112 billion over the next
five years to boost production, in hopes of increasing oil capaci-
ty from 3.2 MMbpd at the start of this year to around 4 MMbpd
by 2020. The country’s oil and gas sector accounts for about
40% of its GDP and about 92% of export revenues.
Energy ministers from Saudi Arabia, the UAE and Kuwait
planned to meet in Kuwait to discuss OPEC matters, about
a week after the Saudis and Russia announced a new policy
to increase oil production. The UAE and Kuwait are the two
countries, after Saudi Arabia and Russia, that will benefit the
most from an agreed increase in production, because they have
enough spare capacity.
NORTH AFRICA
Egypt. The country’s gas production has been in decline,
falling from a 2009 peak of 5.8 Bcfd to 3.9 Bcfd in 2016, based
on estimates compiled by World Oil. This is due to relatively
low investment. Meanwhile, domestic demand for energy has
grown, driven by economic growth, increased natural gas use
for power generation, and energy subsidies, said the U.S. EIA.
Oil production also was off 4.4%, at 614,500 bpd.
Moderator:
Joe D. Woods
President, International Pinpoint
Sponsored by:
REGIONAL REPORT / MENA
Fig. 3. The startup of a number of natural gas development
projects located offshore, in the eastern Mediterranean Sea, near
Egypt’s northern coast, has significantly altered the outlook for
the region’s natural gas markets. Photo: EIA.
The West Nile Delta, Nooros, Atoll and Zohr fields were
fast-tracked for development by the Egyptian government,
Fig. 3. They have begun production, providing a substantial in-
crease to Egypt’s natural gas supply. In addition, Eni announced
a gas discovery 19 mi northwest of the Melehia concession.
The discovery well was drilled on the Faramid South explora-
tion prospect in the East Obayed concession. The well has been
put on production, delivering 25 MMscfd. Eni produces 55,000
boed from the Egyptian Western Desert.
In August, SDX Energy announced that a successful pro-
duction test had been conducted at its SD-3X appraisal well at
South Disouq, Egypt (SDX 55% WI and operator). The well
flowed at a maximum rate of 16.1 MMscfd during an 8-hr clean-
up period. South Disouq is a 492-mi2 concession, located 40 mi
north of Cairo.
In September, production capacity at the Zohr project, de-
veloped by the consortium of Eni, Rosneft, BP and Mubadala,
together with Egyptian companies, was increased more than
25% to greater than 2 Bcfd. The increase was achieved through
the commissioning of the fifth gas train at the site, as well as
start-up of the second export pipeline and new wells. The field
is expected to reach production capacity of 2.7 Bcfd by the end
of 2019. During first-half 2018, 109.5 Bcf of gas were produced
at the field.
Algeria holds the world’s third-largest, technically recover-
able, unconventional gas reserves, with about 707 Tcf of shale
gas resources, according to EIA. This contrasts with conven-
tional reserves of 14.6 Bbbl of oil and 151.1 Tcf of gas. Oil and
condensate output averaged 1.305 MMbpd during 2017.
The head of the country’s state-owned oil and gas compa-
ny, Sonatrach, is telling IOCs that Algeria is looking to attract
more foreign investment to help tap its rich shale reserves.
Sonatrach first met with Exxon Mobil about a new partner-
ship in January, according to Abdelmoumen Ould Kaddour,
the company’s CEO. Since then, the companies have sat down
together several times. Ould Kaddour hopes to iron out a deal
by the end of the year.
“We need a lot more companies to come explore,” Ould
Kaddour said in an interview at the World Gas Conference
in Washington. “We’re talking to all the big companies.”
Sonatrach is responsible for 90% of oil and gas E&P in Alge-
ria, but Ould Kaddour wants to change that. He hopes that
Sonatrach will ultimately get help from partners for about half
of all its drilling activity.
84 OCTOBER 2018 / WorldOil.com
Sonatrach, Total, Repsol and Alnaft signed a new 25-year
concession contract to extend exploitation of Tin Fouyé Taban-
kort (TFT) gas and condensate field. This new contract gives
Total a 26.4% interest alongside Sonatrach (51%) and Repsol
(22.6%). The partners will carry out the drilling and develop-
ment required to develop additional reserves estimated at more
than 250 MMboe.
In addition, Sonatrach and Eni signed an agreement for
the Berkine basin. In combination with the existing assets of
Blocks 403 and 405b, the aim is to create a gas hub in the area.
This agreement strives to develop an ambitious program to re-
launch exploration and development in the area, by optimiz-
ing existing infrastructure and putting them in synergy with
the ones newly built—a 112-mi line that will quickly connect
existing assets, transforming them into the Berkine basin’s
main gas hub. Eni CEO Claudio Descalzi, commented, “This
is a further step forward in the strategic expansion of our up-
stream activities in Algeria, and in Eni’s renegotiation of long-
term gas supply contracts.”
In addition, Pertamina Algeria EP awarded Bonatti a
$98.7-million EPC contract for a gas capacity increase project
for Menzel Lejmet North (MLN) field, in the north of Block
405a, about 149 mi southeast of Hassi Messaoud. The field
consists of five structures—MLN, KMD, MLC, MLNW and
MLW—with 46 wells, including 29 producers and 17 gas
injectors.
Libya is investing more cautiously in E&P, having suf-
fered inconsistent output, due to regular production out-
ages caused by civil unrest and geopolitical tensions. While
different operations in the country were hit, net output has
improved after a restarting of the 330,000-bpd Sharara field,
with further increases expected following National Oil Corp.’s
(NOC) $450-million acquisition of Marathon’s 16.3% stake
in the 300,000-bpd Waha Oil consortium. As a result, Libya’s
production returned to 1 MMbopd this year for the first time
since 2013.
Libya holds Africa’s largest proven reserves of crude oil, at
48.4 Bbbl. The nation pumped about 970,000 bopd in August,
an increase of 310,000 bopd from July. Even so, the output
level is far below the 1.6 MMbopd produced prior to the 2011
uprising against the late Muammar al-Qaddafi, former ruler
of Libya.
In September, oil production climbed as high as 1.278
MMbopd, the most since 2013, said NOC Chairman Mustafa
Sanalla. If sustained for the whole month, that would be an in-
crease of about 600,000 bopd since June, keeping pace with the
drop in Iranian exports over the same period. Output could go
even higher, if the security situation improves, Sanalla said, but
numerous threats remain.
Tunisia. State firm ETAP said that two 3D surveys were
run in first-half 2018, covering 198 mi2. In addition, two 2D
seismic surveys were run on two permits, and 252 mi were ac-
quired. ETAP said that it drilled the Jebel Kebir-2 well (Kb-2)
on the Nord des Chotts permit during March and April this
year. In March, Xodus Group delivered a decommissioning
and abandonment study for wells, surface and subsea facilities
in Tunisia on behalf of Thyna Petroleum Services (TPS). In
August, DNO completed the sale of its Tunisia assets to Pan-
oro Energy. Tunisian oil output averaged 38,698 bpd during
2017, down 15.4% from 2016’s level.
 Register
Today!

October 30–31, 2018 | HPHTConference.com

Norris Conference Centers – Citycentre, Houston, Texas

Join Us In Shaping The Industry For Success

World Oil and the HPHT advisory board are pleased to announce
the keynote lineup for World Oil’s High-Pressure, High-Temperature
Drilling, Completions and Production Conference. 

Day One Keynote: Day Two Keynote:

Randall Luthi Eric Sirgo

President of the National General Manager of Deep Water Projects,
Ocean Industries (NOIA) Chevron GOM Operations

REGISTER SPONSORSHIPS FOR MORE

TODAY OR EXHIBITS INFORMATION

Register at Contact Hortensia “Tish” Barroso, Learn more at

Business Development Manager, at
HPHTConference.com HPHTConference.com
Hortensia.Barroso@GulfEnergyInfo.com
or +1 (713) 520-4404.

Hal J. Goldie
Hal J. Goldie has been
appointed to the board
of Enpro Subsea, based
in Houston. With a career
that spans almost 50 years
in the industry, Goldie was
previously president at
Cameron Subsea Systems.
In addition, the business
has appointed Francesco
Santoro as its strategic
consultant in South
America. Based primarily
in Rio de Janeiro, Santoro
has more than 40 years of
experience in the industry,
including leadership roles
at Petrobras, Technip and
Oceaneering.
Anadarko has named
Amanda M. McMillian as
executive V.P. and general
counsel. Having joined
the company in 2004,
McMillian previously
served as senior V.P.,
general counsel, corporate
secretary and chief compli-
ance officer. Prior to this,
she served as V.P., general
counsel and corporate
secretary of Western Gas
Holdings, LLC.
The American Petroleum
Institute (API) said that
Debra M. Phillips has
joined as V.P., global
industry services. Phillips
previously served as V.P.,
sustainability and market
outreach for American
Chemistry Council. In
addition, she served as
the global secretariat for
the International Council
of Chemical Association’s
Responsible Care
Leadership Group.
Danos has named Rafe
Blades as sales manager.
Based out of the com-
pany’s Gray, La., head-
quarters, Blades brings 10
years of sales experience
to the company. Prior
to this, he served as a
coach and educator.
86 OCTOBER 2018 / WorldOil.com
PEOPLE IN THE INDUSTRY
MICHELE.COWART@WORLDOIL.COM
Daniel McAteer Danny Sorrells
RDS, KCA Deutag The Railroad Commission
has appointed Daniel of Texas has appointed
McAteer as its head of Danny Sorrells as assistant
the Brownfield engineer- executive director and oil &
ing team responsible for gas division director. Most
supporting the North recently, Sorrells served
Sea and Sakhalin Island. as acting oil & gas division
Having previously worked director. Prior to this, he
for the company, McAteer served as Kilgore district
brings more than 20 director. He brings 37 years
years of experience in of industry experience to
the industry, defense the role.
and heavy engineering.
Previously, McAteer was
chief business develop- Rosehill Resources Inc. has
ment officer with Global appointed the chairman
Energy Group. of the company’s board
of directors, Gary C.
Hanna, to also serve as
Dustin Guinn has been interim president and CEO
named CEO of Zion Oil of the company and its
& Gas. Most recently, sole subsidiary, Rosehill
Guinn held the posi- Operating Company, LLC.
tions of executive vice With 30 years of industry
chairman, and COO and experience, Hanna served
president, since 2016, previously as CEO of KLR
with the company. Prior Energy, and CEO of EPL
to this, he served as CEO, Oil & Gas, Inc., that was
president and COO of acquired by Energy XXI
Viking Services. in June 2014. In addition,
Hanna has been the
chairman of the board of
Ross McHardy has joined directors of Energy XXI
EnerMech as European Gulf Coast, Inc., since
regional director, located April 2018.
in Aberdeen. Previously
with TAQA Bratani,
McHardy was responsible Rob Saltiel has been
for safety performance, named president and CEO
production and project of Key Energy Services.
delivery, and engineering Saltiel most recently
across central North Sea served as president and
assets. Prior to this, he CEO, Atwood Oceanics,
was part of EnQuest’s from 2009 until Atwood
Aberdeen leadership Oceanic’s sale to Ensco
team. McHardy brings plc in October 2017. Prior
more than 20 years of to this, he served in vari-
experience to the role. ous senior management
roles, including COO at
Transocean.
Charles (Chuck) Davison,
Jr. has been named
chairman of the board of Ashtead Technology has
Fairfield Geotechnologies. appointed Stephen Steele
Davison joined as corporate development
FairfieldNodal in June director. Steele brings
2015 as president and more than 20 years of
CEO. Prior to this, he was industry experience to
senior V.P. and company the business. Prior to this,
officer of Oceaneering he served as V.P., i-Tech
International, and served services, and V.P., sales,
in executive leadership marketing and strategy at
roles at General Electric. Subsea 7.
Jesper Ridder Olsen
Maersk Drilling has named
Jesper Ridder Olsen as
CFO. He brings more than
25 years of experience to
the company, including
leadership roles with KPMG
and Ernst & Young. In
addition, Ridder Olsen has
been involved in several
capital market transactions,
including IPOs, in addition
to serving as auditor and
advisor for A.P. Moller–
Maersk, ISS, Carlsberg and
Danske Bank.
Chris Zeal has joined
Chariot Oil & Gas Limited
as an independent
non-executive director.
Most recently, he held
the position of managing
director at Jefferies Hoare
Govett. Prior to this, he
held a similar role at
Citigroup. In addition, Zeal
is a director of Ventus VCT
plc., and brings over 30
years of experience to the
company.
Chesapeake Energy
has appointed Mark A.
Edmunds to its board
of directors. In addition
to this appointment,
Edmunds is a senior
partner and vice chairman
at Deloitte. Having joined
the firm in 1981, he has
served on its board of
directors, its global and
elected leader succession
committees, and led the
Americas oil and gas
practice.
Westley Stockton has
been named executive
V.P., CFO, treasurer and
secretary of Gulf Island
Fabrication, Inc. Stockton
most recently served
as senior V.P. and chief
accounting officer for
CB&I, and previously
held senior leadership
positions within financial
operations and mergers
and acquisitions.
Gro Gunleiksrud Haatvedt
Gro Gunleiksrud
Haatvedt has joined
Neptune as V.P. and group
head of exploration.
Previously with Aker BP
ASA, she served as senior
V.P., exploration, for the
last four years, and senior
V.P., Norwegian Shelf,
at Equinor.
Cox Oil has named
Vincent DeVito as
executive V.P. and general
counsel. Prior to this,
DeVito served as the
senior executive, energy
counselor to the secretary
of the interior, at the U.S.
Department of Interior. In
addition, he has also held
several senior leader-
ship roles at the U.S.
Department of Energy.
InterMoor Inc., an Acteon
company, has named
Martin Kobiela as
president. Most recently,
Kobiela served as regional
president for InterMoor
Asia Pacific. A chartered
engineer, he brings over
20 years of experience to
the role. Kobiela replaces
Tom Fulton, who has
assumed the role of chief
technology officer. Most
recently, Fulton served
as president and V.P.
engineering, for the com-
pany. He is a registered
professional engineer and
brings over 30 years of
experience to the position.
Paul Smith has been
appointed group managing
director at UTEC Survey,
part of Acteon. A member
of senior management
since 2016, Smith, most
recently, has been respon-
sible for the day-to-day
management of worldwide
operations. Prior to this,
he served as tender
manager at Subsea7.
He will be based in
Aberdeen, Scotland.
 ENDS OCTOBER 6 TH
Early Bird
Registration
December 5–6, 2018 | Norris Conference Centers - City Centre
Houston, Texas | ShaleTechConference.com

Resurgence of Shale
Join the discussion and hear the latest on water
management and E&P technology at ShaleTech 2018!
ShaleTech 2018 is bringing the industry together to explore the latest
developments in E&P technology and water management. With an advisory
board including representatives from Apache, ConocoPhillips and Marathon
Oil, the conference will feature two days of operator-oriented presentations
and networking opportunities.

Conference Topics by Day

DAY ONE: DAY TWO:

E&P Technology
Day One will feature real-world
case studies and discussions
on the key technological
developments driving the industry.
Water Management
Day Two will bring the key
players in water management
together for a day of collaboration
and knowledge sharing. Hosted
with the Permian Basin Water
Management Council.

Questions:
Contact Myron Malek, Event Manager - Upstream,
at Myron.Malek@GulfEnergyInfo.com or +1 (713) 520-4470.

Event sponsorship or exhibits:

Contact Hortensia “Tish” Barroso, Business Development Manager
at Hortensia.Barroso@GulfEnergyInfo.com or +1 (713) 520-4404.

Hosted By Platinum Sponsor Gold Sponsor Silver Sponsors

PERMIAN BASIN

WATER
MANAGEMENT
COUNCIL
 COMPANIES IN THE NEWS
MICHELE.COWART@WORLDOIL.COM

Tenaris unveiled its newest Azinam Limited, the Seacrest

service center in Grande Prairie, Capital Group-backed Namibian
Alberta, to better support explorer, has entered into an
customers in Western Canada. agreement with ExxonMobil
The Grande Prairie service Namibia Limited to acquire
center is the company’s first a 30% interest in petroleum
greenfield pipe yard in Canada exploration license (PEL) 44,
and is a $20-million, multi-phase offshore Namibia. Azinam will
investment. retain a 12.5% interest, with
Maurel & Prom, the license
operator, retaining its current
42.5% equity interest and
Namibian partners NAMCOR,
Livingstone Mining, and Frontier
Minerals also retaining their
carried interests of 8%, 4% and
3%, respectively. PEL 44 is in
the Walvis basin and covers an
area of 2,209 mi2, in water
depths ranging from less
than 985 ft to over 8,200 ft.
In addition, Azinam Limited
Norway’s largest and longest pipeline, laid by the vessel Saipem has acquired a 40% operating
Castorone, has reached Johan Sverdrup field. The 36-in. pipeline Maersk Supply Service com- interest in Block 3B/4B and a 51%
extends 176 mi from the Mongstad oil terminal outside Bergen pleted FSO tow and installation operating interest in Nearshore
to the giant field in the North Sea. This project involved around for Culzean field, and hook-up of Block 3B/4B in the Orange basin,
600 people, who helped weld over 23,000 pipes, which will the Ailsa FSO was completed offshore South Africa, with
support 660,000 bopd. The Saipem Castorone began pipelaying successfully. This marks the final Ricocure (Pty) Ltd retaining
operations at Mongstad in second-quarter 2018. With the oil step of the FSO transportation 60% and 49% in the blocks,
pipeline installed, Saipem Castorone is now getting ready for the and installation. The project has respectively. The acquisition
next stage—laying the 97-mi gas pipeline that will extend from been delivered to Total E&P UK. marks a new country entry for
Johan Sverdrup field to the Statpipe pipeline, from which gas Eight service vessels and crew Azinam. The license areas of
will eventually be shipped to Kårstø. The pipeline installation carried out the marine opera- the two blocks cover 7,154 mi2
operations are expected to be completed during the autumn. tions. Advanced capabilities of in aggregate with Block 3B/4B,
Photo: Bo B. Randulff, Roar Lindefjeld, Equinor ASA. two newbuild M-class anchor located between 75 and 155 mi
handling tug supply vessels were offshore South Africa.
utilized throughout the project.
With its large deck, chain lockers
Saudi Aramco has awarded offshore Brazil. The Campos basin and winches, the tensioning of 12
the first large-scope integrated extends approximately 100,000 50-ton anchors was performed
services contract for its Marjan km2. The three-year contract is val- from Maersk Master in just two
oilfield to Baker Hughes, a GE ued at more than $60 million and vessel mobilizations, achieving
company (BHGE). This is the includes options for a two-year the highest tensioned mooring
first of three major offshore extension. Aker will be renovating, system in the North Sea at 723
expansions in Saudi Arabia, and repairing and upgrading offshore tons. Installation of 12 140-mm
the company’s largest upstream production units for Petrobras’ mooring chains and sheathed
development project this year. Campos basin operational unit. wires from Maersk Minder also
Under the contract’s terms, BHGE was completed in two mobiliza-
will provide drilling services, tions. Photo: Maersk Supply.
coiled tubing services and drilling Faroe Petroleum has farmed
fluids engineering services at into the UK Continental Shelf’s
Marjan. The project is scheduled Agar Plantain exploration and Baker Hughes, a GE company BW Offshore achieved first oil
to begin in third-quarter 2018. appraisal well, close to the UK/ (BHGE), has received a three- from the BW Adolo FPSO during
Norwegian median line, and year extension to a subsea third-quarter 2018, 18 months
operated by Azinor Catalyst services frame agreement with after the initial investment was
Vedanta Ltd has discovered natural Limited. The exploration prospect Equinor for its operations on the made in the Dussafu license,
gas in the Krishna Godavari basin, will be drilled first, followed by a Norwegian Continental Shelf. offshore Gabon. The vessel
in the Bay of Bengal. In a regula- contingent sidetrack to appraise BHGE will provide support for arrived in Gabon during
tory filing, the company, which had Agar oil field. Operator volumes in several installations, including third-quarter 2018, and hook-up
merged recently with Cairn India, Agar and Plantain have been esti- Troll, Snorre B and Tordis/Vigdis. of mooring systems, installation
said it notified the oil industry and mated by Catalyst at a combined Services support will be provided of risers and umbilicals was
the upstream regulator, Directorate mid-case resource of 60 MMboe, locally by BHGE’s Stavanger completed in third-quarter 2018.
General of Hydrocarbons, about with an upside case of 98 MMboe. facility. The FPSO is installed on Tortue
the discovery in well A3-2, in Block Drilling on Agar Plantain is sched- field, one of five proven
KG-OSN-2009/3. Vedanta holds uled to commence in third-quarter discoveries in the Dussafu license.
a 100% participating interest in 2018 using the Transocean Leader BCCK Holding Company has The BW Adolo is a converted
the block. at a total estimated gross cost of opened a new office in The VLCC, with a production capacity
$15 million. Faroe joins Catalyst Woodlands, north of Houston. The of 40,000 bopd. The vessel has
(25% and operator) and Cairn office is located at 2201 Timberloch undergone an increased life
Petrobras has awarded Aker Energy plc (50%) in this sole-risk Place, Suite 175, extension scope, enabling an
Solutions a contract to provide well, the results of which will be The Woodlands, Texas 77380, extended production profile on
maintenance and modification announced on completion of giving the company access to the back of positive reserve
services for nine platforms at oil drilling operations. Faroe’s equity a large pool of engineering talent, developments. Photo:
and gas fields in the Campos basin, interest in this well is 25%. and the ability to create more jobs. BW Offshore.

88 OCTOBER 2018 / WorldOil.com
 Register
Today

WOMEN’S

October 29–30, 2018 | WGLConference.com

Houston, Texas | Royal Sonesta

Leslie Beyer Joins

Featured Speakers Lineup
Join us at the 16th Women’s Global Leadership Conference in Energy
(WGLC) and discover how you can further develop your career in the
oil and gas industry.

Panel discussions include:

• Technology: Improving efficiencies through innovation in the
upstream and downstream
• Change agents: What role do men play in promoting women to
leadership positions?
• Downstream owner/operators and their project partners:
Working together to get the job done - on time and on budget

KEYNOTE SPEAKER

Leslie Shockley Beyer

President, Petroleum Equipment & Services Association
(PESA)

For information on sponsorship opportunities, please contact:

Hortensia “Tish” Barroso, Business Development Manager,
at Hortensia.Barroso@GulfEnergyInfo.com

2018 WGLC SPONSORS

Platinum Sponsor Gold Sponsors Silver Sponsors

Bronze Bronze Sponsor Program Print Young Women’s Mix and Mingle
Sponsor & Conference Bag Sponsor Preparatory Academy Networking Events
Sponsor Student Sponsor Sponsor

Improved wireline trucks increase
safety and reliability
Nine Energy Service has rolled out enhanced SkyView wireline
trucks. The upgraded design includes 90° visibility in the back,
a re-engineered logging unit, and a separate power pack that
offers independent hydraulic and generator power that can be
used to run the operation if a vehicle failure occurs. Drive out
will begin third-quarter 2018.
www.nineenergyservice.com
Digital twin
enables value chain
transformation
in operations
Kongsberg Digital has launched a
new digital twin. The virtual model
of unmanned production facilities
for oil and gas, combined with
the Kognifai solution, creates a
collaborative arena, allowing users
onshore to explore planned or
existing assets offshore. Available
on any digital device, the twin
recreates all the characteristics of
real assets in an advanced, data-
enriched 3D visualization.
www.kongsberg.com
Premium elastomer
addresses demands
of difficult wells
NOV has introduced POB 97 to
the PowerPLUS oil-based line of
premium elastomers, addressing
the industry’s need for high-
performance elastomer for shale
drilling. The rubber compound
has an improved injection process,
and can be run in both WBM and
OBM, and in conventional and ERT
power sections. In addition, POB
97 offers 50% more torque and
power potential above standard
NBR elastomers.
www.nov.com
90 OCTOBER 2018 / WorldOil.com
NEW PRODUCTS AND SERVICES
MICHELE.COWART@WORLDOIL.COM
Optimized jacket design reduces
footprint, is 100% ROV, AUV accessible
Chet Morrison Contractors has
formed a strategic partnership
with iSIMS to launch the iJacket.
The enhanced method in jacket
and foundation design is an
advancement on the conventional
true X-braced jacket design, and
supports the same deck load,
conductor/riser count, and drilling
deck. The modular nature provides
cost-savings, reduced material and
labor requirements, by up to 30%.
www.chetmorrison.com
Chemical well treatment boosts oil
production from mature vertical wells
Cleansorb has developed a DEEPA formulation that increases the matrix
permeability of rock and simultaneously remediates nearby wellbore
damage. The treatment delivers organic acid deep into the rock matrix
via in-situ acid generation, and increases permeability uniformly around
the wellbore. Testing has been done on mature vertical wells in Canada,
resulting in a 250% increase in oil production.
www.cleansorb.com
Hydraulic fracturing automation maximizes Gyro surveying
efficiency, performance technology
Halliburton has unveiled an automation service for hydraulic fractur- performs faster,
ing, Prodigi AB. By automating the breakdown process of a fracturing
treatment, the service helps deliver better well performance by using
avoids recalibration
algorithmic controls. The service is supported by a Halliburton comple- Schlumberger has introduced
tion advisor, who will tune the system to optimize performance. In the GyroSphere, a microelec-
addition, the service helps to improve overall efficiency, maximize the tromechanical system (MEMS)
performance of perforation clusters and mitigate the risk of screen-out. gyro-while-drilling service. The
The Prodigi AB service provides consistent design execution, better dis- surveying tool is quicker, more
tribution of fluid across the perforated interval, and improved treatment rugged, and it increases drilling
pressures and rates. The service delivers improved precision to achieve efficiency and reliability while
a lower cost per boe. reducing drilling risks. Additionally,
the service can reduce gyro survey
www.halliburton.com uncertainty by up to 45%.
www.slb.com
Intervention rental service reduces
capex investment, offers flexibility Enhanced thread
design provides
gas-tight integrity
connections
Precision has introduced the
HOSS Premium Connection to the
horizontal drilling and shale gas
production market. The connec-
tion can withstand higher torques,
severe bends, and higher frac
JDR Cable Systems has launched IWOCS. The global intervention, pressures to allow for faster, safer
workover and control systems rental service increases production from and more profitable well comple-
subsea wells, and has intervention, completions and plug and abandon- tions. It is designed specifically to
ment applications. This is accomplished without capex investment by provide gas-tight integrity while
providing a temporary connection. The service is customizable, and its allowing for superior over-torque
flexible approach significantly decreases time, upfront cost and supply performance and enhanced
chain risk, compared to capital equipment. fatigue resistance.
www.jdrcables.com www.precision-llc.com
 ADVERTISERS IN THIS ISSUE

Abaco Drilling Technologies ..................................... 10 Events—ShaleTech ..................................................87 NOV.................................................................................... 2

www.abacodrilling.com Events—WGLC ..........................................................89 www.nov.com/downhole

AF Global ........................................................................31 WO Circulation ................................................... 59, 72 Oceaneering International .......................................... 5

www.afglobalcorp.com/nrg
Ametek Process Instruments ....................................41
www.ametekpi.com
Ariel Corporation ..........................................................12
www.arielcorp.com/whoweare
Baker Hughes, A GE Company .................................18
www.oceaneering.com
WO Webcast..........................................75, 83, 91, 92
OPITO ..............................................................................55
GWDC...............................................................................16
www.opito.com
www.gwdc.com.cn
PESA ................................................................................ 77
Gyrodata Inc. .................................................................22 www.pesa.org
www.gyrodata.com QRI ....................................................................................13
Halliburton .....................................................................96 go.qrigroup.com/asset-valuation

www.bhge.com/better
www.halliburton/icruise Technip FMC .................................................................. 37
IES SRL............................................................................45 www.technipfmc.com/welcomechange
Burgess Manufacturing, Ltd.......................................14
www.omc2019.it Timken Steel ..................................................................56
www.burgess-mfg.com www.timkensteel.com
Industrial Rubber ........................................................... 4
C&J Energy Services ...................................................33 Tomax AS .......................................................................48
www.iri-oiltool.com
www.cjenergy.com www.tomax.no
IPAA .................................................................................95 Tubacex...........................................................................66
Doris Engineering ........................................................47
www.ipaa.org www.tubacex.com
www.doris-engineering.com
K+S KALI GmbH ...........................................................53 Veolia Water Technologies.........................................61
Gardner Denver ............................................................67 www.kali-gmbh.com www.veoliawatertech.com
www.gdnx.gardnerdenverpumps.com
Magnetrol International .............................................24 Volant Products Inc. ....................................................39
Gardner Denver TechTalk ....................................... 6-7 www.magnetrol.com www.volantproducts.ca
www.gardnerdenver.com
MTU Friedrichshafen GmbH .....................................26 Weir Oil & Gas ...............................................................65
Gulf Energy Information www.ulr.weir
www.edp.mtu-online.com
Energy Web Atlas ..............................................71, 82 Yellowjacket Oil Services LLC ..................................20
Nippon Steel & Sumitomo Metal Corporation....... 8 www.yjosllc.com
Events—DES ...............................................................81 www.tubular.nssmc.com
Zhongman Petroleum And
www.deepwaterexecsummit.com Nissan Chemical America Corporation .................42 Natural Gas Group Corp., Ltd ...............................68
Events—HPHT ..........................................................85 www.nanoactiv.com www.zpec.com

This index and procedure for securing additional information are provided as a service to World Oil advertisers and a convenience to our readers. Gulf Energy Information is not responsible for omissions or errors.

Register for FREE at WorldOil.com/Webcasts

LIVE WEBCAST: NOVEMBER 7, 2018 | 9 A.M. CST / 4 P.M. CET

SPEAKER:
Smart Tubular Solutions: Deepwater Applications Stuart Cole
Senior Manager
Technical Sales
Through a combination of optimized and standardized well design, risk mitigation and
cost reduction, operators continue to push the boundaries of deep water exploration Vallourec USA
both in terms of geographical frontiers and technological advances to confront Corporation
increased temperature and pressure.
This presentation will provide some examples of OCTG well designs of pipe and
connections being used to support deepwater projects along with additional critical MODERATOR:
considerations to ensure the weakest point of the string is understood. Michele Cowart
By incorporating actual pipe data from existing wells, we can generate a digital well to News Editor
simulate critical aspects of the well to optimize the design. World Oil
The digital well is Vallourec’s latest development to support deepwater and critical
operations, to improve efficiency and generate the best results.

Sponsored By: Presented By:

 ADVERTISING SALES OFFICES
2 Greenway Plaza, Suite 1020 AUSTRALIA INDONESIA, MALAYSIA, SINGAPORE,
Houston, TX 77046 USA Andy McDowell THAILAND
WorldOil.com Phone/Fax: +1 (713) 520-4463 Peggy Thay
Andy.McDowell@WorldOil.com Publicitas Singapore Pte Ltd
Andy McDowell, Vice President and Publisher Phone: +65 6836 2272
Phone/Fax: +1 (713) 520-4463 MEXICO, CENTRAL AMERICA, SOUTH AMERICA Fax: +65 6297 7302
Marco Antonio Monteiro Singapore@GulfEnergyInfo.com
Andy.McDowell@WorldOil.com
Phone: 021 2240-5077,
Mobile: 55 21 99616-4347 ITALY, EASTERN EUROPE
NORTH AMERICA Brazil@GulfEnergyInfo.com Fabio Potesta
TX, AK, AZ, CA, CO, ID, LA, MT, NM, NV, OR, UT, WA, Mediapoint & Communications SRL
CHINA, HONG KONG Phone: +39 (010) 570-4948
WY AND WESTERN CANADA Iris Yuen Fax: +39 (010) 553-0088
Brett Stephen Phone: +86 13802701367 (China) Fabio.Potesta@GulfEnergyInfo.com
Phone: +1 (713) 525-4660 Mobile: +852 69185500 (Hong Kong)
Brett.Stephen@WorldOil.com China@GulfEnergyInfo.com KOREA
TX, AL, AR, FL, GA, IA, IL, IN, KS, KY, MI, MN, MO, Young-Seoh Chinn
FRANCE, GREECE, SPAIN, PORTUGAL, BELGIUM, Jes Media, Inc.
MS, NE, ND, OK, SD, TN, WI AUSTRIA, LUXEMBOURG, SWITZERLAND, Phone: +82 (2) 481 3411/3
Jim Watkins GERMANY, NETHERLANDS Fax +82 (2) 481 3414
Phone/Fax: +1 (713) 525-4632 Hamilton Pearman Korea@GulfEnergyInfo.com
Jim.Watkins@WorldOil.com 32 rue du 8 mai 1945
CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, 94510 La Queue en Brie, France RUSSIA, FSU
SC, VA, VT, WV AND EASTERN CANADA Tel. +33 608 310 575 Lilia Fedotova
Hamilton.Pearman@GulfEnergyInfo.com Anik International & Co., Ltd.
Merrie Lynch
Phone/Fax: +7 (495) 628-10-33
Phone: +1 (617) 357-8190, Fax: +1 (617) 357-8194 INDIA Lilia.Fedotova@GulfEnergyInfo.com
Merrie.Lynch@GulfEnergyInfo.com Manav Kanwar
Phone: +91-22-2837 7070/71/72 UNITED KINGDOM, SCANDINAVIA, IRELAND
Fax: +91-22-2822 2803 Patrick Djuma
OUTSIDE NORTH AMERICA India@GulfEnergyInfo.com Phone/Fax: +44 20 3409 2243
AFRICA, MIDDLE EAST Patrick.Djuma@GulfEnergyInfo.com
Tanya Mbaluli JAPAN
Twiga Media Partner Yoshinori Ikeda CLASSIFIED SALES
10 Kithuani Street, Nguluni Tala 90131 Kenya Pacific Business Inc. Laura Kane
Phone: +254 722 376 972 Phone: +81 (3) 3661-6138, Fax: +81 (3) 3661-6139 Phone/Fax: +1 (713) 412-2389
Email: Africa@GulfEnergyInfo.com Japan@GulfEnergyInfo.com L.Kane@GulfEnergyInfo.com

LIVE WEBCAST
Thursday, November 15, 2018 | 10 am CST
REGISTER FOR FREE AT WORLDOIL.COM/WEBCASTS

Oilfield Water Management Forum: 2018

with Jeff Wilhelm, Mark Patton, Nate Banda and Moderator, Joe D. Woods

Increasing Water Management Volumes and Effectiveness Moderator:

Using Flexible Pumping Technologies Joe D. Woods
PRESENTER: Jeff Wilhelm, Sr. Vice President of Water Management/Artificial Lift, GR Energy Services President, International Pinpoint

Sponsored by:
Produced Water Reuse
PRESENTER: Mark Patton, President and CEO, Hydrozonix

The Future is Now: Water Automation in the Oilfield

PRESENTER: : Nate Banda, Vice President of Technology, Select Energy Services

OCTOBER
Gulf Energy Information Events,
Women’s Global Leadership
Conference in Energy (WGLC),
Oct. 29–30, Royal Sonesta,
Houston, Texas
(See box for contact information)
World Oil/Gulf Energy
Information Events, HPHT
Drilling, Completions and
Production Conference,
Oct. 30–31, Norris Conference
Center – CityCentre,
Houston, Texas
(See box for contact information)
dmg events, Gas Asia Summit
Exhibition and Conference,
Oct. 31–Nov. 1, Marina Bay Sands,
Singapore
P: +65 6422-1475
marketing@gasasiasummit.com
www.gasasiasummit.com
NOVEMBER
AAPG, 2018 International
Conference & Exhibition,
Nov. 4–7, Cape Town
International Convention Centre,
Cape Town, South Africa
P: +1 (918) 560-9431
amahan@aapg.org/www.aapg.org
OTC, Arctic Technology
Conference, Nov. 5–7, Hilton
Americas, Houston, Texas
P: +1 (972) 952-9494
F: +1 (713) 779-4216
meetings@otcnet.org
www.otcnet.org/arctic
Argentine Oil and Gas Institute
(IAPG), 10th Hydrocarbon
Exploration and Development
Congress, Nov. 5–9,
Mendoza, Argentina
P: +54 (11) 5277-4274
F: +54 (11) 5277-4263
congresos@iapg.org.ar
www.iapg.org.ar
IADC, Annual General Meeting,
Nov. 7–9, The Ritz-Carlton,
New Orleans, La.
(See box for contact information)
dmg events, European Autumn
Gas Conference (EAGC),
Nov. 7–9, Andel’s by Vienna
House Berlin, Berlin, Germany
P: +44 (0) 203-615-2393
jamiegordon@dmgevents.com
www.theeagc.com
IPAA, Annual Meeting, Nov. 11–13,
The Ritz-Carlton, New Orleans, La.
P: +1 (202) 857-4722
F: +1 (202) 293-0681
kdaugherty@ipaa.org
www.ipaa.org
MEETINGS AND EVENTS
MICHELE.COWART@WORLDOIL.COM
dmg events, The Abu Dhabi
International Petroleum
Exhibition and Conference,
Nov. 12–15, Abu Dhabi
National Exhibition Centre,
Abu Dhabi, UAE
P: +971 (0) 2 444-4909
adipec.sales@dmgeventsme.com
AAPG/EAGE/MGS,
4th Myanmar Oil & Gas
Conference, Nov. 13–15, Sule
Shangri-La Yangon, Myanmar
P: +65 (9653) 6728
apereira@aapg.org
https://www.aapg.org
dmg events, Americas
Gas Summit, Nov. 14–16,
Central Hotel Panama,
Panama City, Panama
P: +44 (7706) 278-111
amoulds@gep-events.com
http://americas-gas.com
SPE, Middle East Artificial
Lift Conference and Exhibition,
Nov. 28–29, Manama, Bahrain
(See box for contact information)
DECEMBER
dmg events, Cuba Energy
Oil and Gas, Dec. 4–7,
The Melia Cohiba,
Havana, Cuba
P: +44 (7850) 025-295
pgilbert@gep-events.com
http://cuba-energy.com
World Oil/Gulf Energy
Information Events,
ShaleTech Conference,
Dec. 5–6, Norris Conference
Center, Houston, Texas
(See box for contact information)
SPE, International Heavy Oil
Conference and Exhibition,
Dec. 10-12, American University
of the Middle East,
Kuwait City, Kuwait
(See box for contact information)
dmg events, Future Energy
Asia Exhibition & Conference,
Dec. 12-14, Bangkok International
Trade & Exhibition Centre,
Bangkok, Thailand
P: +65 (6422) 1155
info@futureenergyasia.com
http://www.futureenergyasia.com
JANUARY
IADC, Drilling HSE&T Asia
Pacific 2019 Conference
& Exhibition, Jan. 22-23,
PETRONAS Technical Training
Institute INSTEP, Batu Rakit,
Terengganu, Malaysia
(See box for contact information)
dmg events, West African
International Petroleum
Exhibition and Conference
(WAIPEC), Jan. 23-24,
Eko Convention Center,
Lagos, Nigeria
P: +44 (7850) 025-295
pagilbert@gep-events.com
http://waipec.com
FEBRUARY
SPE, Hydraulic Fracturing
Technology Conference
& Exhibition, Feb. 5–7,
The Woodlands Waterway
Marriott Hotel & Convention
Center, The Woodlands, Texas
(See box for contact information)
dmg events, Egypt
Petroleum Show, Feb. 11-13,
Egypt International Exhibition
Center, Cairo, Egypt
P: +971 (4) 438-0355
info@dmgevents.com
https://www.egyps.com
IADC, Drilling Caspian 2019
Conference & Exhibition,
Feb. 20-21, Hilton Baku,
Baku, Azerbaijan
(See box for contact information)
MARCH
SPE/IADC, Drilling Conference
and Exhibition, March 5–7,
Churchillplein 10,
2517 JW Den Haag,
The Hague, The Netherlands
(See box for contact information)
SPE, Middle East Oil & Gas Show
and Conference, March 18–21,
Bahrain International Exhibition
and Convention Centre,
Manama, Bahrain
(See box for contact information)
IADC, International Deepwater
Drilling Conference & Exhibition,
March 19-20, Petrobras R&D,
Rio de Janeiro, Brazil
(See box for contact information)
SPE/ICoTA, Well Intervention
Conference and Exhibition,
March 26-27, The Woodlands
Waterway Marriott Hotel
& Convention Center,
The Woodlands, Texas
(See box for contact information)
IPTC, International Petroleum
Technology Conference,
March 26-28, Beijing
International Convention Center,
Beijing, China
P: +60 (3) 2182-3000
iptc@iptcnet.org
http://www.iptcnet.org
World Oil® / OCTOBER 2018 93
APRIL
dmg events, The Lebanon
International Oil & Gas
Summit, April 2-4, Hilton
Beirut Habtoor Grand,
Beirut, Lebanon
pagilbert@gep-events.com
P: +44 (7850) 025-295
http://liog-summit.com
SEAPEX, Exploration and
Conference 2019, April 3,
Fairmont Hotel Singapore
P: +65 (6533) 2988
judy.foong@seapex.org
http://seapexconf.org
IGU, 19th International
Conference & Exhibition
on Liquefied Natural Gas,
April 1-5, Shanghai
World Expo Exhibition
and Convention Center,
Shanghai, China
P: +44 (20) 7978-0775
info@lng2019.com
https://www.lng2019.com
IADC/SPE, Managed Pressure
Drilling & Underbalanced
Operations Conference
& Exhibition, April 9-10,
Mövenpick Hotel Amsterdam
City Centre, Amsterdam,
The Netherlands
(See box for contact information)
SPE, Oil and Gas India
Conference and Exhibition,
April 9-11, Renaissance Mumbai
Convention Centre Hotel,
Mumbai, India
(See box for contact information)
International Association of
Drilling Contractors (IADC)
P: +1 (713) 292-1945
F: +1 (713) 292-1946
info@iadc.org
www.iadc.org/events
Society of Petroleum
Engineers (SPE)
P: +1 (972) 952-9393
F: +1 (972) 952-9435
spedal@spe.org
www.spe.org/events/
calendar
World Oil/Gulf Energy
Information Events
P: +1 (713) 529-4301
F: +1 (713) 520-4433
energyevents@
gulfenergyinfo.com
www.worldoil.com/events

Everything old is new again
As I was visiting various display booths
at the SPE’s ATCE in Dallas, I was im-
pressed at how many relatively new service
providers have created innovative tech-
nologies designed to increase efficiencies
in U.S. shale fields. Companies were show-
casing perforating tools/techniques that
deliver angled openings and new methods
to divert frac fluids in horizontal wells to
lower costs and maximize ROI.
Eggs in one basket? But with all this
energy directed at creating value from for-
mations that have no intrinsic porosity or
permeability, will the industry be ready to
capitalize on conventional and/or alter-
native opportunities to fill the supply gap
once the unconventional fields reach a
breaking point? Despite the hyper-inten-
sity on developing mudrock “reservoirs,”
several operators have the foresight to
work on projects outside the play du-jour.
Oil-sands revival. Although recent
logistical difficulties have driven the price
of Canadian crude benchmarks lower,
Calgary-based Suncor Energy opened its
new Fort Hills oil sands mine in northern
Alberta in September, after spending $13
billion on the project. The massive under-
taking indicated some operators are visu-
alizing life after shale and moving forward
in an industry many believed would never
see new investments. The sprawling com-
plex in Canada’s freezing wilderness, cut
out of a forest clearing roughly the size of
Cleveland, Ohio, was thought to mark the
end of an era for big projects of its kind.
But with its lower carbon emissions, com-
bined with a reduced cost structure, Fort
Hills may offer a blueprint for new mines.
The future of oil sands projects was in
serious doubt, when oil prices dropped to
less than $30/bbl in early 2016 and trig-
gered a mass exodus of multinationals
from the region. The bust forced Cana-
dian producers to cut costs dramatically.
However, “we are starting to see a return
to big projects,” says Wood Mackenzie’s
Mark Oberstoetter, thanks to new tech-
nologies and froth-treatments that elimi-
nate the need for multibillion-dollar up-
94 OCTOBER 2018 / WorldOil.com
THE LAST BARREL
CRAIG FLEMING, TECHNICAL EDITOR
graders. This, combined with U.S. crude
prices hovering around $75/bbl, are help-
ing to make the industry profitable again.
While the upfront cost of a mine is
higher than developing oil sand wells,
their decades-long lifespans can make
them lucrative for companies willing to
wait, said Kevin Birn, IHS Markit. “The
trick is getting over the upfront cost.” If
companies are patient, the return on a
mining operation is good. And Fort Hills
is operating better than planned, produc-
ing 150,000 bopd. It should hit 194,000
bopd by the fourth quarter.
African deepwater safari. The Sau-
dis’ 2015 oil price manipulation strat-
egy worked to perfection and successfully
drove a stake in the heart of deepwater
activity. When crude slumped, spending
dropped, because the best African pros-
pects are in deep waters. But cost-cutting
initiatives, combined with revised subsea
methods and updated technologies, have
enabled deep water to compete with on-
shore tight oil plays.
Armed with stronger balance sheets and
higher crude prices, ExxonMobil, Shell and
BP plan to double drilling in African waters
this year. “The majors moving back into
these areas for exploration is the first sign
of recovery,” said Adam Pollard, a consul-
tant at Wood MacKenzie. “Africa is one of
the first regions to suffer when benchmarks
go down, but it’s a good place for explora-
tion when the price is supportive.”
According to Tracey Henderson, V.P. at
Dallas-based Kosmos Energy, “the more
troughs and crests you endure, the less
you tend to get fussed about it.” Kosmos
used the downturn to buy licenses, and
last year it acquired five offshore blocks
in Ivory Coast. At the same time, it also
sold stakes in Mauritania and Senegal to
BP, as the company builds its natural gas
business in anticipation of rising demand.
And there are other signs of a recov-
ery. Rigs working offshore Africa have in-
creased to the highest level in two years,
according to Baker Hughes data, and con-
sultants expect 30 offshore exploration
wells to be drilled this year, compared
with 17 in 2017. Acquisitions along the
west coast also have accelerated. Shell
secured its first exploration acreage off-
shore Mauritania in July, and ExxonMo-
bil bought stakes in Namibian fields in
August. For companies willing to take the
risk, the prize could be significant. The
U.S. Geological Survey estimates that
there are 41 Bbbl of oil and 319 Tcfg yet
to be discovered in sub-Saharan Africa.
With prices steady, unlocking new res-
ervoirs becomes paramount in the region.
“The sense of optimism has definitely
taken hold at this point,” Kosmos’s Hen-
derson concluded.
Alaska North Slope is poised to re-
emerge as a major source of U.S. energy
production, with crude output poten-
tially increasing as much as 40% during
the next eight years, according to IHS
Markit. Based on recent discoveries, IHS
estimates that the ANS basin holds 38
Bboe in remaining recoverable resourc-
es. The company says that the ANS is a
late-emerging super-basin, rather than a
mature basin based on recent discoveries
in the shallow Nanushuk and Torok for-
mations. The new finds indicate there is
significant growth potential beyond the
Endicott and Ivishak reservoirs in the
Prudhoe Bay and Endicott fields.
Furthermore, IHS Markit said there is
an estimated 9.5 Bboe yet to be discovered
in the Alaska National Wildlife Refuge
(ANWR) and central slope combined.
Aside from the new discoveries, the basin
warrants attention from prospective op-
erators, because the Alaska North Slope
now has fewer barriers to entry for opera-
tors, making it more competitive.
Wisdom for today. Australian musi-
cian Peter Allen—with his partner Carole
Bayer—created a song that was popular
in the 1970s. Among the lyrics is a time-
less truth: Don’t throw the past away; You
might need it some rainy day; When ev-
erything old is new again.
ŝŝCRAIG.FLEMING@WORLDOIL.COM
HYDRAULIC FRACTURING TAXES OFFSHORE

T H E N AT I O N A L VO I C E O F A M E R I C A’ S I N D E P E N D E N T O I L & N AT U R A L G AS I N D U ST RY

JOIN TODAY! MEMBERSHIP, BOB JARVIS BJARVIS@IPAA.ORG | 713.495.6534

www.ipaa.org SPONSORSHIPS, TINA HAMLIN THAMLIN@IPAA.ORG | 202.857.4768

Wildcatters Fund
the political action committee
of independents

ENDANGERED SPECIES METHANE ENHANCING LIFE

 Smart Design Meets
Drilling Automation
INTRODUCING iCRUISE™ INTELLIGENT
ROTARY STEERABLE SYSTEM
Advanced electronics, sophisticated algorithms, multiple
sensors and survey packages, high-speed processors, plus
400 RPMs and dogleg capabilities of 18 degrees/100 feet
help you improve reliability, reduce well time, and place your
wells accurately. When integrated with real-time, automated
advisory commands, you can plan ahead, make smarter
decisions, and achieve consistent and predictable results.

Contact your local representative or visit

halliburton.com/iCruise to learn more.
© 2018 Halliburton. All Rights Reserved.

halliburton.com/icruise