Big Shale Technology

Shale oil engineer Oscar Portillo spends his days drilling as many as five wells at once— without ever setting foot on a rig.

Part of a team working to cut the cost of drilling a new shale well by a third, Portillo works from a Royal Dutch Shell Plc office in suburban Houston, his eyes darting among 13 monitors flashing data on speed, temperature and other metrics as he helps control rigs more than 805 km (500 miles) away in the Permian Basin, the largest U.S. oil field.

For the last decade, smaller oil companies have led the way in shale technology, slashing costs by as much as half with breakthroughs such as horizontal drilling and hydraulic fracking that turned the United States into the world’s fastest-growing energy exporter.

Now, oil majors that were slow to seize on shale are seeking further efficiencies by adapting technologies for highly automated offshore operations to shale and pursuing advances in digitalization that have reshaped industries from auto manufacturing to retail.

If they are successful, the U.S. oil industry’s ability to bring more wells to production at lower cost could amp up future output and company profits. The firms could also frustrate the ongoing effort by OPEC to drain a global oil glut.

“We’re bringing science into the art of drilling wells,” Portillo said.

The technological push comes amid worries that U.S. shale gains are slowing as investors press for higher financial returns. Many investors want producers to restrain spending and focus on generating higher returns, not volume, prompting some to pull back on drilling.

Production at a majority of publicly traded shale producers rose just 1.3%over the first three quarters this year, according to Morgan Stanley. But many U.S. shale producers vowed during third-quarter earnings disclosures to deliver higher returns through technology, with many forecasting aggressive output hikes into 2018.

Chevron Corp. is using drones equipped with thermal imaging to detect leaks in oil tanks and pipelines across its shale fields, avoiding traditional ground inspections and lengthy shutdowns.

Ryan Lance, CEO of ConocoPhillips—the largest U.S. independent oil and gas producer—sees ample opportunity to boost both profits and output. ConocoPhillips also oversees remote drilling operations in a similar way to Shell.

“The people that don’t have shale in their portfolios don’t understand it, frankly,” Lance said in an interview. “They think it’s going to go away quickly because of the high decline rates, or that the resource is not nearly that substantial. They’re wrong on both counts.”

Shell, in an initiative called “iShale,” has marshaled technology from a dozen oilfield suppliers, including devices from subsea specialist TechnipFMC Plc that separate fracking sand from oil and well-control software from Emerson Electric Co., to bring more automation and data analysis to shale operations.

One idea borrowed from deepwater projects is using sensors to automatically adjust well flows and control separators that divvy natural gas, oil and water. Today, these subsea systems are expensive because they are built to operate at the extreme pressures and temperatures found miles under the ocean's surface.

Shell’s initiative aims to create cheaper versions for onshore production by incorporating low-cost sensors similar to those in Apple Inc.’s Watch, eliminating the need for workers to visit thousands of shale drilling rigs to read gauges and manually adjust valves. Shell envisions shale wells that predict when parts are near mechanical failure and schedule repairs automatically.

By next year, the producer wants to begin remote fracking of wells, putting workers in one place to oversee several projects. It also would add solar panels and more powerful batteries to well sites to reduce electricity and diesel costs.

Oil firms currently spend about $5.9 million to drill a new shale well, according to consultancy Rystad Energy. Shell expects to chop that cost to less than $4 million apiece by the end of the decade.

“There is still very little automation,” said Amir Gerges, head of Shell's Permian operations. “We haven’t scratched the surface.”

Technology, Geology

Much of the new technology is focused on where rather than how to drill.

“There is no amount of technology that can improve bad geology,” said Mark Papa, CEO of shale producer Centennial Resource Development Inc.

Anadarko Petroleum, Statoil and others are using DNA sequencing to pinpoint high potential areas, collecting DNA from microbes in oil to search for the same DNA in rock samples. ConocoPhillip’s MRI techniques also borrow from medical advances.

ConocoPhillips next year will start using magnetic resonance imaging (MRI) to analyze Permian rock samples and find the best drilling locations, a technique the company first developed for its Alaskan offshore operations.

EOG Resources Inc. last year began using a detailed analysis of the oil quality of its fields. The analysis, designed by Houston start-up Premier Oilfield Laboratories, helps to speed decisions on fracking locations and avoid less productive sites.

Premier has reduced the time needed to analyze seismic data to find oil reserves from days or weeks to seconds. Such efficiencies serve two purposes, said Nathan Ganser, Premier’s director of geochemical services.

“It’s not only removing costs thatare superfluous,” he said. “It’s boosting production.”

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What worker doing during Drilling Operation?

During drilling, the personnel and equipment must be protected against unexpected pressure surges in the wellbore. In oil and gas drilling, these surges can come from hydrocarbon fluids trapped under impermeable rock which holds them at pressures higher than the static head of the fluid column in the wellbore, and in geothermal operations the surges come from hot formations which heat the pore or wellbore fluids above the saturation temperature at the static wellbore pressure. In either case, the first line of control is the weight of the fluid column in the wellbore. 

With a gas column, this weight is negligible, but with mud the liquid density will range from slightly greater than water (-8.5 pounds per gallon) to almost three times that. In addition to the clays and additives which raise the viscosity of the mud to improve hole cleaning, weighting materials such as barite are often added to increase the mud's density and enable it to control higher downhole pressures.

The pressure surge cannot immediately be controlled with fluid weight, the wellbore can be mechanically sealed at the surface with BOPS, or blow-out preventers. There are three principal types of BOP: blind rams, which are sliding plates that come together across the wellbore when the drill string is not in the hole; pipe rams, which are like blind rams except that the sliding plates are cut out in the center so the rams can seal around the drill pipe; and an annular preventer, which is an inflatable bladder that seals around drill collars, stabilizers, or other off-size or irregularly shaped tools.

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Geothermal Drilling with Kelly Rig

To make the hole or drilling well with kelly rig, energy must be transmitted from the surface to the rock face at the end of the wellbore. Power supply for drilling has evolved from the early days of steam-driven,mechanically coupled rigs to the current standard of diesel-electric drive. In this configuration, two to four diesel engines (up to 2,000 horsepower each) drive electric generators, which supply power to individual electric motors driving the rotary table, drawworks, mua pumps, and other equipment. The rotary table is a mechanism, usually inset into the rig floor, which turns the drill string to break rock and advance the hole. (A "drill string" comprises the drill pipe plus the bottom-hole-assembly, or BHA. The BHA includes drill collars, stabilizers, bit, and any other specialized tools below the drill pipe).

Hole diameters in oil and gas drilling usually range fiom 4 to 26 inches, while geothermal holes generally have a minimum production size of 8-112 inches. To drill these holes, torque is applied to the kelly, which is at the top of the drill string. The kelly is a section of pipe with a square or hexagonal outside cross-section which engages a matching bushing in the rotary table. This bushing lets the rotary table continuously turn the kelly and drill string while they slide downward as the hole advances.

The upper end of the kelly is attached to a 'hvivel", which is a rotating pressure fitting that allows the drilling fluid to flow fiom the mud pumps, up the standpipe, through the kelly hose, into the swivel, and finally down the drill pipe as it rotates. The swivel is carried by the hook on the traveling block and it suspends most of the weight of the drill string while drilling.

Moving the drill string or the casing into and out of the hole is called tripping. Trips are usually required because the bit or some other piece of downhole equipment must be replaced, or because of some activity such as logging, testing, or running casing, and of course trips take longer as the hole grows deeper. Raising or lowering the drill string for a trip is done by the drawworks, which is basically a large winch. (The swivel and kelly are almost always handled as a unit, and are set aside in the "rat hole" while tripping.) The drawworks reels in or pays out a wire rope (drilling line) which passes over the crown block at the top of the rig's mast and then down to the traveling block which carries the hook, which in turn suspends the drill string or casing. Depending on what mechanical advantage is required, the drilling line is reeved several times between the crown and traveling blocks, as in a block and tackle.

Read More → Geothermal Drilling with Kelly Rig

Preperation Drilling Operation

In the baseline system, all of the equipment necessary for the drilling operation is organized around the derrick, or mast. This is a steel tower , ranging from 50' to 180' in height, which supports the drill pipe with the bit and all the other downhole equipment, and which provides a platform for much of the other equipment necessary to drill the hole. 

Every rig, except for the smallest ones, has a floor just above ground level where most activity required to operate the rig takes place. The driller, who has minute-by-minute control of the rig's operation, has a console here and most pipe handling (adding a new piece of pipe, making and breaking drill string connections, changing bits, etc.) takes place on the floor. In smaller rigs, the mast and the floor are a unit and are simply raised into position in preparation for drilling. 

Bigger rigs, which may require 50 to 60 large truck loads for transportation, are usually assembled at the drill site, a job which may take s e v d days, even in accessible locations on land. offshore, or in locations with difficult access, this assembly is much more complex and time-consuming. Eventually the mast will be erected, the power generation system on-line, the fluidhandling equipment plumbed together, and the myriad other smaller components in place; only then is the rig ready to begin drilling a hole 

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New drilling technologies could give us so much oil

New oil drilling technologies could increase the world’s petroleum supplies six-fold in the coming years to 10.2 trillion barrels, says a report released today by market research firm Lux Research.

The most common and controversial technique is hydraulic fracturing, or fracking, in which chemical-laced water is injected to break up subterranean rock formations to extract oil and natural gas. But the Lux report details a host of exotic so-called Enhanced Oil Recovery (EOR) technologies—from solar-powered steam injection to microorganisms—that could be used to extend the life of old oil fields and gain access to so-called unconventional petroleum reserves like oil sands.

“In light of current oil prices, the peak oil hysteria and projection of $300 [a barrel] prices of a few years ago seem overblown – if not outright silly,” the report states. “But in a sense, they were accurate forecasts of what would have happened if EOR technologies had not come online and made unconventional oil reserves – which vastly exceed conventional ones – accessible.”

But don’t ditch your electric car just yet. The development of such technologies is predicated on high oil prices – at least $100 a barrel – to offset the costs and induce a conservative industry to invest in and deploy new methods. And many of the technologies are still young.

Moreover, as we’ve seen with fracking, political opposition to technologies that could pollute the environment and use lots of water could derail their use. And as climate change accelerates, opposition to carbon-intensive extraction of fossil fuels and their expanded use is sure to grow.

Still, here are some of the technologies startups and multinationals alike are pursuing:

Thermal intervention injects steam into wells to extract heavy oils or oil sands. The problem is, it takes a lot of energy to generate that steam, so some oil companies are turning to solar energy instead of natural gas or other fossil fuels. Chevron, for instance, has deployed solar fields built by BrightSource Energy and GlassPoint Solar at old oil fields in California to help recover heavy petroleum.

Chemical EOR injects polymers and alkaline compounds into oil fields to help loosen oil from rock formations and push it into production wells. The China National Petroleum Corporation is the leader in this method, which it is betting will be 20% more efficient than just flooding wells with water to bring oil to the surface. But in the US, expect opposition to introducing large volumes of chemical underground anywhere near water supplies. Some other drawbacks: Chemical EOR doesn’t work well in oil reservoirs where temperatures are high and there’s a lot of salt and sulfur.

Microbial EOR uses environmentally benign microorganisms to break down heavier oils and produce methane, which can be pumped into wells to push out lighter oil. The technology dates from the 1950s but only recently has it been put to limited use. An experiment with microbial EOR in Malaysia, for instance, increased oil production by 47% over five months. But oil and gas engineers are not biologists, the report notes, and may be reluctant to embrace the technology.

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New Oil Drilling Technology Will Soon Spark An Explosion Of Oil

Energy stocks have been tearing higher since the election on bets that the Trump administration will relax environmental restrictions and open more federal lands to oil and gas drilling. Crude oil’s staying north of $50 hasn’t hurt, either.

It is up there in part because OPEC threw in the towel and agreed to production limits. Unfortunately for OPEC, those limits don’t apply to US and Canadian shale producers. And the history of OPEC is that they all cheat like crazy, anyway.

There will be no end to oil production

I think it is entirely possible that we will see oil prices climb somewhat further by mid-year, possibly approaching $60, and then pull back as capped US production comes back online. Look at the chart below to see the wide variation among forecasts of major energy analysts working for the big banks.

I also think that this year, we’ll start to see a new pattern: Production could keep rising even as prices fall. Conventional wisdom says that producers stop pumping at some point when it becomes unprofitable, but I think that is about to change.

New technology will lead to greater production and higher profits

If you are an oil producer—or really, any commodity producer—two things can improve your profit margin: higher selling prices for the resource you produce or lower production costs. Some combination of both works as well.

Now, selling prices are mostly outside the producer’s control, though adept hedging can help. Cost reduction is, therefore, the place to concentrate your attention. Back in 2015, I wrote about new drilling techniques and other technology that promised to bring oil and gas production costs significantly lower.

Now, in the last few weeks, people in the business have told me these technologies are moving rapidly toward deployment. They foresee considerably lower drilling and production costs by the end of this year.

I had a confidential briefing recently about some new energy production processes that are coming online in the oil patch. Let me just say that production from an oil well drilled with these new techniques is getting ready to increase substantially.

In some cases, the amount of oil produced per dollar spent on drilling is going to more than double. There are significant chunks of the petroleum-producing parts of the United States where $40 oil will not be a barrier to drilling and new production.

Eventually—in a few years—these techniques will begin to show up in wells around the world, and there will be an explosion of oil. Even as many oilfields dry up, there will be new fields developed from previously unprofitable sources.

This will have massive economic and geopolitical implications

This technology trend means that the current oil price range may well break lower—perhaps this year, but certainly within this decade—without energy companies losing profits.

Not every company will reap the rewards equally, of course; but the industry as a whole is excited. Energy exploration and production is quickly becoming a technology-driven industry with the US as world leader.

If Trump permits construction of more pipelines and natural gas export terminals, we could see North American exports rise considerably in the next few years.

Obviously, over time, a falling energy price will not be good for OPEC or for Russia. Those lower prices will create geopolitical challenges as well as economic ones. I don’t know how it will all shake out. We will likely see some big, energy-driven changes in the world order in the coming decades.

But that is beyond the scope of my crystal ball.

Source: www,forbes.com

Read More → New Oil Drilling Technology Will Soon Spark An Explosion Of Oil

Well’s Production prediction with Microseismic Technology

With efficiency being crucial when every dollar counts, operators in unconventional plays could add microseismic technology to fracture modeling methods to gain insight into permeability advances and better forecast production.

That’s according to Sudhendu Kashikar, vice president of completions evaluation for MicroSeismic Inc.

Understanding drainage volume and improved permeability of stimulated rock are essential to forecasting production, he said. Typically, several models are used to accomplish this, but the approach has its drawbacks.

A single frack model per stage ignores geological variations along the wellbore. Plus, a discrete fracture network (DFN) model is needed to determine how fracturing actually improves the permeability of stimulated rock, Kashikar said.

Microseismic techniques can simplify the workflow and help with production forecasting, Kashikar said during a webcast June 16.

“Technology and procedures were developed to discriminate the microseismic events and fractures described by these events, capturing propped versus unpropped fractures,” Kashikar said while describing Productive-stimulated rock volume (Productive-SRV) technology. “A rock volume capturing the proppant-filled refractures showed much better correlation to the cumulative production than the total stimulated rock volume.”

Productive-SRV technology estimates how much stimulated fracture remains open through proppant placement by using estimated target zone productivity, a DFN, propped fracture estimate and the Fat Fracture drainage estimate, according to MicroSeismic’s website.

Focus is usually on the location of the proppant, but focus should also be on the amount of improved permeability achieved within the SRV or the Productive-SRV, he said.

Understanding and measuring such improvements will lead to the next step in reservoir stimulation and production forecasting, he said.

Using microseismic data has proven beneficial in establishing a deterministic DFN, which shows fractures detected through seismic.

“For every microseismic event we describe a fracture plane. The size is guided by the magnitude, and the orientation comes from the focal mechanism,” he said. “This is much easier to do with surface microseismic.”

The model is calibrated to actual fluid volumes pumped for a well. A mass balance approach is used to fill the fractures with proppant starting from the wellbore moving outward until the proppant is consumed for that stage, Kashikar explained. Once the fracture network and the propped network have been established, a geocellular grid can be superimposed to obtain the SRV and productive SRV to capture the proppant-filled rock volume, he said.

“One advantage of this workflow is the ability to capture fracture intensity—the number of fractures, the orientation of these fractures—to quantify the permeability enhancement achieved,” Kashikar added.

Key steps for the production forecasting workflow are describing three reservoir volumes—the productive SRV (the propped fractures), total SRV (includes propped and unpropped fractures) and the permeability scalar for individual cells within each region to determine how permeability improved for neighboring cells.

This workflow, he said, captures not only the size and shape of the drainage volume but also permeability within the drainage volume.

The process is a big step forward, he said, in understanding and determining the effectiveness of hydraulic fracturing.

“Rather than relying on a single representative fracture model, we can fully and accurately capture the variable fracture geometry and fracture intensity for the entire length of the wellbore, providing a much better production forecast,” Kashikar said. “We can now use the productive stimulated rock volume and the stimulated rock volume with permeability scalars to directly and explicitly describe the reservoir volume in the reservoir simulator.”

Source: www.epmag.com

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Drilling with Coiled Tubing for Multilateral Wells

The petroleum industry is constantly driving to reduce capex and increase economic recoverability while minimizing environmental impact and surface footprint. By combining the three advanced drilling techniques of multilateral drilling, underbalanced drilling (UBD) and directional coiled tubing drilling (CTD), an operator can capture significant value out of known reserves.

The highest well productivity is achieved through maximizing reservoir contact per well/surface slot and minimizing reservoir damage. Multilateral drilling reduces capex through drilling multiple reservoir sections per surface slot while also increasing reservoir contact per surface slot. UBD minimizes reservoir damage, which maximizes the productivity of each lateral. CTD is inherently set up for underbalanced operations (UBCTD), and CTD bottomhole assemblies (BHAs) can achieve high build rates of up to 50 degrees per 30 m (100 ft) to allow multiple targets to be accessed from the mother wellbore.

Selecting a BHA

A directional CTD BHA consists of a coil connector, cablehead, electric or mechanical disconnect, downhole orienter, sensor package, motor or turbine with a bent housing, and a drillbit. Drilling directionally on coiled tubing (CT) is similar to conventional slide-and-rotate drilling on a rotary. As CT cannot be rotated from surface, all the rotation needs to be carried out downhole through the orienter. The rotating orienter allows the toolface to be set from surface or for the motor to be rotated to drill a straight hole.

Service companies also can provide additional BHA modules such as a gyro module for orienting a whipstock and for drilling in the presence of magnetic interference immediately after exiting the casing.

CT drilling faces two fundamental challenges: transferring weight to the bit and length limitations of the lateral sections. If the well trajectory plans for high doglegs, then it can be difficult to transfer weight to the bit. This is accentuated by the inability to rotate the whole drillstring as in conventional drilling. It is essential to have a weight-on-bit (WOB) sensor in the BHA so the driller can see that the weight is actually being transferred to the bit and react accordingly. The length of laterals that can be drilled with CT also are affected by the tortuosity, but this is particularly true in horizontal sections. The more tortuous the wellbore, the shorter the lateral length will be. CTD BHAs that have a continuous rotating orienter prevent this tortuosity from occurring and therefore maximize the available WOB and lateral length (Figure 1).

FIGURE 1. A straight wellbore increases the potential length of a lateral section compared to a wavy wellbore. (Source: AnTech)

Designing a multilateral well

All well designs require a multidisciplinary team to be successful. When designing a multilateral well, an integrated team of subsurface specialists and directional drilling specialists is even more essential to successfully drill the well. The well design and completion strategy is heavily affected by the reservoir characteristics, horizontal and vertical permeability, the geological structure, and geosteering requirements. The first step is to clarify if significant productivity gains can be made from utilizing multilaterals over other techniques. Once established, it is an iterative process between the directional drilling contractor and the operator’s engineering and subsurface teams to find the best way to design the well.

There are a near-infinite number of wellbore paths for multilateral wells. The two most common are stacked laterals and forked laterals (Figure 2). Stacked laterals can access different layers of a laminated reservoir. Forked laterals are all at a similar depth and are most commonly used to increase reservoir contact in a specific formation. Clarifying the objective for the multilaterals early on helps reduce the number of iterations required of the trajectory.

FIGURE 2. Stacked laterals offer access to different layers of a laminated reservoir, while forked laterals are at a similar depth and help increase reservoir contact in a specific formation. (Source: AnTech)

Once the trajectories are drafted, the wells must be modeled to ensure drillability and to specify surface equipment. For the CTD section the main areas for analysis are the available WOB, CT lock-up limit, borehole cleaning and surface pressures. The CT can be specified from these models. Production and geomechanics models also must be run to ensure the separation equipment is suitably specified and the amount of the underbalance applied to the wellbore does not cause wellbore stability issues.

Sidetracking techniques

To create the additional well path from the mother wellbore, a sidetrack must be initiated. There are two main categories of sidetracking a well: cased-hole sidetracks and openhole sidetracks. The cheapest and fastest way to carry out a cased-hole sidetrack is to use a whipstock and a window milled in the casing rather than section milling.

Multiple whipstocks can be set in the mother wellbore and retrieved if required. For openhole sidetracks the drilling BHA is used to create a trough in an inclined section of the wellbore. Once the trough is initiated, the WOB can be increased to carry on the borehole section. An openhole sidetrack also can be initiated off a cement plug with special procedures.

Since CTD BHAs operate on wireline, this allows significant amounts of real-time data to be received from the BHA. This helps to speed up the sidetracking process because rather than relying completely on time drilling, the directional driller can see the WOB and torque-on-bit responses to each operation and optimize on the fly. This is the case with both openhole and cased-hole sidetracks. A special module is required to monitor the casing milling operations since the vibration levels are so high.

Geosteering

A multilateral will not provide a good return on investment if the laterals are not drilled into the target zones. The options for geosteering on UBCTD are relatively limited compared to a conventional LWD service. Gamma ray and resistivity are available on certain CTD BHAs. A biostratigraphy service also can be used to identify changing formations. The UBD package can provide a significant amount of data that can be used for geosteering and reservoir characterization while drilling. The large amount of additional information that can be gathered from the real-time downhole sensors and the UBD package, if used correctly as part of an integrated data acquisition and reservoir evaluation strategy, can remove the need for expensive LWD tools or wireline logs.

Drilling practices

Drilling on CT has been avoided in the past due to concerns over stuck pipe and borehole cleaning issues. When drilling reentry wells using CTD, the borehole size is usually closer to the BHA size than in conventional drilling. In addition, since the pipe is not rotated, a greater focus needs to be placed on good borehole cleaning practices. Every CTD project must be modeled and analyzed to ensure the well can be drilled successfully. When drilling the borehole sections, the real-time drilling parameters must be monitored to identify any indications of borehole problems. Drilling practices also are adapted to ensure the borehole is clean and free of ledges. For example, a short trip must be made at every 46 m (150 ft) to ream the borehole, and at every 91 m to 137 m (300 ft to 450 ft) a long trip back to the casing window must be made. Because the driller is able to see these changes in downhole conditions at surface, there is an opportunity to prevent these issues and optimize the uptime of the operation.

Read More → Drilling with Coiled Tubing for Multilateral Wells

The Connection in Oil Gas Drilling with new Technology

As the drilling landscape changes, an upturn in land factory drilling projects drives the need for efficient, high-performance products and technologies. NOV addressed the needs of this shifting market by developing the Delta line of rotary-shouldered drillpipe connections. These connections are stronger and more fatigue-resistant than other rotary-shoulder connections, and this allows a simplified threading procedure, which excludes the need for cold rolling, reducing the cost of maintenance and therefore lowering the total cost of ownership.

Performance-wise, the connection delivers on average 4% more torque than the XT connection. Using streamlined 130,000-psi tool joints, the Delta connection improves hydraulic performance by allowing the use of a larger-than-normal pipe body size. For example, 5½-in. drillpipe can be used to drill in the size of hole in which 5-in. drillpipe was previously used. This is made possible because the outside diameter of the tool joint is identical to the industry standard for 5-in. drillpipe (65⁄8 in.).

In addition to significant reduction in pressure losses, the connection also allows better borehole cleaning since fluid circulates at a higher velocity outside of the drillpipe. The stiffer pipe allows the drilling of a better quality hole.

The modified geometry of the Delta connection engages more threads at stab-in. This minimizes stabbing damage while also evenly distributing stress.

The deeper stab-in also reduces the number of turns necessary to make up the connection, increasing efficiency and reducing wear on the threads.

Compared to similar products, the Delta connection requires 50% fewer turns from stab to makeup. The connection saves time in that it can be spun in as little as four seconds, while XT connections typically require eight seconds.

This decreased connection time translates to increased cost-effectiveness and ease of use on the rig floor. Ease of use is further improved by a reduction in the minimum required tong-gripping distance from the box face. When other connections require a 2-in. tong-free area to prevent egging of the box connection, the Delta connection only requires ½ in. of tong-free area, giving drillers more flexibility in the positioning of the iron roughneck.

Reduced cost of ownership

One of the main objectives while developing this connection was to reduce the cost of ownership. NOV determined the best way to achieve that goal is to keep the connection in service and reduce the frequency of repair. Multiple design choices contribute to maintaining the Delta connection—and the joint of drillpipe that carries it—in the field while drilling. First, wider field inspection tolerances reduce the need for frequent repairs without compromising the connection’s performance. Second, a tolerance for pitting in the root of the less critical threads was established. Besides these inspection criteria changes, the geometry of the new connection reduces the material loss by 30% for face-and-chase repair operations.

This allows more recuts using the same tool joint tong space. The reduction of the tong-free area on the tool joint results in increased room for recuts given the same tool joint length. The total refacing amount has been increased by 50%, allowing additional refacing to take place before a recut is needed.

Best practices were developed by the company for its licensees in the shop environment for these recuts. These practices will result in less than a 1-in. loss on pin or box for a full face-and-chase repair. The connection also has the lowest royalty on repair services across all of NOV’s double-shoulder connections. The Tuboscope Business Unit within NOV Wellbore Technologies further supports the connection with reduced repair rates to pipe owners and the option to include the TracID radio frequency identification-based tagging and inventory management system as part of the base configuration for the pipe connection. In support of the Delta connection NOV developed rig-ready upgrades such as the TDS-11SAH top drive, ST-80X iron roughneck and a 7,500-psi pump.

Before its introduction to market the Delta connection underwent extensive testing at NOV’s research and technology development center, with early results demonstrating that the new connection made up twice as fast as its predecessor. During testing, damage was minimal and was primarily related to handling. Generally, only refacing was required to repair the damage.

Case studies

The first string of drillpipe with the Delta connection was used to drill a well in the Permian Basin and was the subject of intense scrutiny. This initial drilling job was very successful, and the 5½-in. drillpipe with the Delta 544 connection delivered as expected. The drilling project finished ahead of schedule, and the hole quality of this longest lateral for the operator in this field was excellent, with smooth running of the casing string. A post-use visual inspection of the connections was conducted and confi rmed that the Delta string was in excellent condition after drilling the well. The rental string was retained by the operator and will be used again to drill another pad.

Two other strings with Delta 544 connections were deployed in April 2017, one in the Gulf of Mexico (GoM) and another on a land rig in West Texas. Once again, the customers found the product easy to use, and the field service personnel who were dispatched to these rig sites could see that drillers quickly became comfortable with the new connection.

In June the different sizes of the Delta connections were used on land and offshore. The Delta 425 on 4½-in. drillpipe was used in the GoM, South Texas and the Bakken Shale. Field service staff went to the rig site and saw the same pattern repeated: ease of use, low damage rates and satisfied end users. Drilling crews were at ease with the product and rapidly embraced its use. In addition, a string has been deployed to the Middle East for testing.

In all cases, the condition of the connection was visually evaluated after use, and so far none have required rethreading. This is extremely encouraging to the early users, and NOV looks forward to gathering more data once these strings have received a full visual and dimensional inspection of the Delta connections.

Read More → The Connection in Oil Gas Drilling with new Technology

Optimize Wells with Rotary Steerable Systems

In any well delivery operation there are three drivers—drilling efficiency, accurate well placement and high-quality wellbores.

The main objective in directional drilling is to accurately position the well within the target to optimize returns. Nevertheless, wellbore quality is just as important a factor that must be considered—a precisely placed well does not necessarily mean the wellbore itself is ideal for later completions. While placing high-integrity wells in the best locations, drillers must also strive for higher performance during operations, which entails getting to total depth faster with less flat time.

High-quality wells delivered ahead of plan can help operators see a positive impact not only on cost per foot, but also cost per barrel produced. Early production, efficient post-drilling operations and optimum field development plans are all affected by superior well construction.

Extended-reach drilling (ERD) services provide a solution to restricted reservoir production, enabling operators to more efficiently develop their assets by maximizing the exposure of the targeted intervals and eliminating the need for additional platforms.

For example, in the Middle East an operator was planning to drill an ERD well in a challenging high-temperature (HT) geological environment. As an additional challenge, the subsurface target was located beneath an urban area. In-depth prejob planning and risk assessments were conducted to design an integrated drilling system that included the PowerDrive VorteX rotary steerable system (RSS) to deliver high ROP, the PowerDrive Orbit RSS to drill an abrasive HT interval, logging while drilling (LWD) tools, drilling fluids, custom drill bits and hole-cleaning and surface logging services. The well was delivered within the planned time, with no HSE incidents, and fully within the planned subsurface targets. The well also set the record as the first and the deepest pre-Khuff HT well drilled by the operator.

Powered By Experience

Rotary steerable systems have evolved throughout the years to continuously improve upon key deliverables: accurate wellbore positioning, optimum borehole quality and maximum drilling efficiency. A wide offering of systems makes achieving all three possible—in multiple applications.

All of the Schlumberger PowerDrive RSSs share distinctive characteristics to achieve drilling objectives. Rotation and torque are fully transmitted throughout the body of the tool to eliminate dragging components and enable maximum drilling performance to the target depth. These features also allow optimum efficiency when pulling out of hole and deliver maximum well integrity for post-drilling operations.

The systems also measure inclination and azimuth close to the bit. This close proximity and measurement accuracy is critical in maintaining an accurate 3-D well trajectory while pushing for drilling performance to enable precise kickoff delivery. Another inherent feature is the downhole closed automation loops, which provide directional consistency during well construction. In a recent drilling operation in the North Sea, the PowerDrive Orbit RSS reached a target total depth of 950-m (3,116-ft) section in one run and helped avoid close-proximity wells. An average of 25 m/h while drilling the first 475 m (1,558 ft) of the section was also achieved despite stick/slip severity of 90% to100%.

More Power In More Places

While all RSSs seek to eliminate sliding and provide basic inclination measures, there are more factors to consider when choosing a system. With the variety of fully rotating designs, the technology should be selected to maximize performance for each application. This is why versatility is a key advantage. Different steering mechanisms match customer needs in the planning phase. They also meet any unexpected challenge during the execution of the drill plan.

The PowerDrive family comprises RSS for a host of applications, including operations that require extensive runs, high ROP drilling, vertical drilling and high dogleg severity. The latest member of the family, the PowerDrive Xcel RSS, was specifically designed to handle the challenges inherent during extended reach drilling, sidetracking and geostopping. The gyrosteering capability of the system enabled an operator offshore Brazil to sidetrack just 1 m (3 ft) below the casing shoe, achieve the full deviation from the pilot well after 16 m (52 ft), and build inclination from 82 degrees to 85 degrees with a dogleg severity of 5⅓ degrees/30 m (even greater than the planned 3½ degrees/ 30 m) despite magnetic interference caused by the 9⅝-in. casing.

Power For Ultimate Performance

With a quarter of a billion feet drilled around the globe, which is roughly twice the circumference of the Earth, the PowerDrive RSS is the most used RSS family in the world. Using these systems, operators have continually broken footage, measured depth and ROP records in North America, Latin America, the North Sea, Middle East, Asia Pacific and the Far East. The RSS family also holds the record for the top 12 longest wells in the world.

The PowerDrive family encompasses a range of directional drilling solutions, derived from expertise and proven success, applicable to any environment. It widens the operating envelope, placing power in the operator’s hands, increasing ROP and lowering costs, however challenging the conditions.

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The PowerDrive Xcel RSS was designed for use in high-profile directional drilling operations. It provides inertial directional control in deviated sections— a feature that can be toggled on and off by a downlink. (Source: Schlumberger)

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Expandable Liners Technology in Oil Gas Drilling

The first hanger designs specifically developed to run liners were true to their descriptive name. The weight of the liner set mechanical slips in a vertical well, and cement was used to seal the liner top. These were mechanical devices that lacked reliability, particularly in deviated wellbores.

As wells were drilled to greater depths, more reliability was needed and eventually obtained through the use of hydraulically set hangers. Once directional drilling and horizontal completions became more prevalent, many equipment suppliers adapted existing technology to the changes in well construction, with more focus on the running tools. 

More robust running tools ensure liners can be deployed in deviated wellbores that require torque, washing and reaming. However, the basic concept of using slips with a cone remains at the heart of all conventional systems, and options are added to this basic offering to aid in functionality and reliability such as dual cones, liner top packers and high-strength running tools.

Trends in liner hangers

The latest developments in running liners include metal-formed liner hangers. Expandable systems have dominated development in liner hanger technology for the past 10 years. These systems are popular because of increased setting and deployment reliability. The advances in technology are apparent through the popularity of the expandable systems and the enhanced applications in different well profiles around the world. Still, expandable systems using hydraulic pressure to set the liner top come with their own risks (e.g., high hydraulic pressure on the rig floor). Other limitations include continued complexity, potential leaks in connections and incompatibility with some rig operations.

To combat these challenges, Seminole Services developed the Powerscrew Liner System, a tool utilizing a metal-forming process that does not require high hydraulic pressures and eliminates the risks associated with reaming to setting depth. The Powerscrew is a torsionally set metal-formed liner hanger that works by converting torque from the top drive into linear force to set and seal a liner top.

The assembly is deployed on drillpipe and conveys the liner to total depth (TD) with a unique running tool. In many cases, running a liner to TD requires compression, rotation and circulation. This is especially true for longer laterals, so special design emphasis has been placed on the running tool, which can take higher compressional loads associated with reaming.

The Powerscrew Liner System is tested at the Catoosa Testing Facility in Hallett, Okla. (Source: Seminole Services)

The Powerscrew’s running tool is designed for both torque and compression while setting the liner top. As a result, these loads transfer more easily through the running tool during liner deployment.

The system includes a patented helical stretch method of metal-forming using a multi-lead rifling (MLR) mandrel. The MLR mandrel provides micro-upsets, increasing the post-formed collapse, and it counter-rotates to eliminate residual torque. In addition, helical stretch forming has less friction and therefore requires less force to forge a metallic tubular downhole. The tool incorporates a high-strength clutch that disengages the running tool from the liner upon reaching setting depth and initiates the metal-forming process with the application of torque. The wellsite operator monitors the torque gauge and weight indicator to ensure proper operation.

Liner hanger market trends

A deep dive into the liner hanger market gives credence to the idea that liner size and weights matter tremendously. With the trend in U.S. drilling focused on shale plays along with the downturn in offshore activity, there has been a shift in demand from larger tools to smaller ones. Increases in demand for liner hanger tools such as the 4½-in.-by-7-in. and the 5-in.-by-7-in. stem from the increased use of liners in horizontal sections common in U.S. shale production. The continuing increase in drilling longer lateral sections also will provide more meaningful savings to those operators choosing to run liners.

Operators drilling more complex wells have facilitated alternatives in well construction that allowed metal-formed liner systems an entry path while also providing multiple options to conventional system offerings. Liner hangers no longer, these well construction tools were built to withstand tortuous well paths and high loads, adding complexity. The tradition of hydraulic setting methodology transferred to the newer expandable systems can still suffer from difficulties souring hydraulic horsepower from the rig. Given that longer laterals will continue to be the trend in producing from shale, less complex tools that can withstand the rigors of deployment in horizontal wells will offer a viable solution to operators. Since rotary drilling rigs are readily available to deliver torsional power through drillpipe, the Powerscrew offers an alternative in metal-forming methodology.

Read More → Expandable Liners Technology in Oil Gas Drilling

Rig Automation Maximizes Value For Contractors And Operators

Drilling a well is a complex mix of overwhelming data and tasks in need of constant attention. To address the challenge of repetitive complexities of machine and process control, the NOVOS process automation platform was launched by NOV after an extensive development period.

The system provides a common platform for the control, monitoring, scheduling and optimization of drilling operations. This enables drillers to focus on what is important while they consistently execute repetitive drilling activities to achieve the well program by integrating the best of human and equipment capabilities.

The NOVOS process automation platform manages rig equipment to execute drilling programs, allowing the driller to focus on safety and process execution. (Source: NOV)

Compatibility

The structuring of data and defining activities through process automation enables engineers to develop lessons learned and apply best practices across regions and rig fleets, regardless of rig specifications or location. The system is scalable, not custom-built, so it does not require extensive R&D for it to work with each new deployment.

NOVOS is simply dropped on top of the existing NOV control system, creating a quick and rapid deployment. The scalable installation enables the system to be easily placed on rig fleets, which increases overall consistency, enhances the performance of the entire fleet and gives the end user the ability to plan ahead.

The system is equipped with applications that immediately allow the rig to drill faster, safer and more effectively. It also has the capability to incorporate customized applications for specific drilling requirements.

A software development kit allows developers to create and deploy their own optimization applications that use sensor data to control rig machines. Third parties are provided with safe access to a wide variety of functions within the system and encouraged to develop applications that address their unique challenges. Those applications can then be layered, prioritized and partitioned to provide simple flexibility of control and monitoring in ways that were previously unachievable.

There are five major operators and service companies working to develop applications compatible with the platform, with development pending with nine more companies.

The platform today

Years of development were spent to ensure NOVOS was built with a foundation of stability, flexibility and ease of scalability to be valuable in bringing practical automation to the drilling process.

In the years since its launch the platform has successfully been installed and commissioned on 19 land rigs. There are five additional installs scheduled but pending rig availability. The system is installed on rigs in Oklahoma, Pennsylvania, Texas and Canada. Precision Drilling currently has the system installed on 18 land rigs. In second-quarter 2017 a system was purchased by Beaver Drilling for installation on its Rig 15.

The NOVOS team is actively training drillers on rig location depending on rig and resource availability. During the training process drillers are easily picking up the system and becoming even more proficient over time.

Value in the numbers

NOVOS was recently deployed during a rig move for Precision Drilling. The early results showed the company’s drillers achieved consistent bottom-to-bottom time savings—a 10% improvement bottom-to-slips, 18% faster add-stand and a 67% improvement slips-to-bottom—yielding overall time savings of 41% per connection.

To evaluate connection time improvements, NOV compared the five best consecutive bottom-to-bottom cycles for conventional drilling against five consecutive cycles of NOVOS-enabled drilling. There was a reduction in average bottom-to-bottom time from 7.91 minutes to 4.67 minutes using NOVOS, demonstrating a significant improvement in Precision’s performance. The increased consistency created by automating repetitive tasks resulted in an increased awareness of safety and successful delivery of the overall drilling operation.

Assuming six wells per pad and 20 total days of drilling time per well, connection time savings translated to nine hours saved per well and 2.25 days saved per pad on average, enabling the drilling contractor to better plan service delivery, allocate resources and move quickly to the next pad. The total savings added up over time yielded higher profits and rates of return on the customer’s initial investment.

Precision Drilling saw a savings in overall connection-to-connection time and delivered a consistent drilling process with its use of NOVOS. (Source: NOV)

Next steps

As NOVOS begins to make its way on to several rigs, the surface is just being scratched on how the automation can be used. There are many repetitive functions that are still performed manually that can be brought into the control system. Right now, consistent and repetitive tasks are automated on the drill floor, but there are other areas on the rig where repetitive tasks could be automated.

Features added since the release of NOVOS include, but are not limited to, reaming, rocking, torque and drag, and a downlinking interface. The ease of updates and enhancements further shows the flexibility of the NOVOS platform. As for next steps, an improved user interface based on driller feedback also is being developed. The additional features and new user interface are scheduled to be released in third-quarter 2017, and work toward finalizing offshore capabilities for gel breaking and envelope protection are underway.

Read More → Rig Automation Maximizes Value For Contractors And Operators

Digitalization Directional Drilling

Super-specification pad-optimal Swiss Army-style walking rigs may generate headlines when it comes to evolution in land drilling, but directional drilling is fast becoming a more accurate indicator of how the sector is evolving as tight formation development enters full field development.

Companies like Baker Hughes, a GE company, have offered sophisticated geo-steering suites combining bits, motors, downhole evaluation and software control to improve ROP for some time. But quietly, and without fanfare, the largest domestic land drilling contractors and their Canadian peers are integrating digital directional drilling capabilities into rig offerings.

The trend accelerated over the last six months when land contractors began purchasing digital directional drilling providers. Acquisitions include Helmerich & Payne IDC’s $100 million purchase of Motive Drilling Technologies Inc. in May, Patterson-UTI Energy Inc.’s $215 million cash and stock purchase of MS Energy Services and Trinidad Drilling Ltd.’s $40 million cash and stock acquisition in August of RigMinder Inc. and its electronic data recorder and bit guidance systems, which integrate the rig and directional drilling tools.

Other drillers, including Nabors Industries Ltd. and Ensign Energy Services Inc., offer directional drilling services and supporting downhole packages that include proprietary mud motors and MWD tools integrated with software to improve directional drilling performance. Nabors, for example, is commercializing a multiple package software suite that includes its recently developed ROCKit directional steering control system.

Meanwhile, Canada’s Precision Drilling aims to “de-man” the directional drilling process via a proprietary directional guidance system that coordinates workflow between the rig’s driller on location and a remote directional driller who oversees several directional drilling projects simultaneously. Precision is using algorithms to convert 14 process and 20 decision points in directional drilling into seven processes and 10 decisions, reducing support crew, time and cost. The system will be fully deployed across Precision’s fleet in 2018.

What’s going on? At the simplest level, it is an opportunity for drilling contractors to capture more revenue per rig in a flat pricing environment. Beyond that, larger drillers are bringing in-house a service that is integral to today’s best practices where precise lateral landing in extended wellbores is as important for boosting hydrocarbon recovery as greater proppant loading.

Digitally enhanced directional drilling integrates software suites, sensors and downhole tools to reduce wellbore tortuosity and generate higher ROP. Digital directional drillers  point to field-tested savings in time and direct costs that are measured in tens of thousands of dollars per well.

Digitalization of directional drilling is disruptive technology. The question is whether it will supplant both personnel and the community of independent service providers.

One other factor promoting the spread of digital directional drilling is that the software is often independent of the rig, allowing smaller contractors to integrate the service into their own rig offerings via third-party access.

Like all wellsite technology, digital directional drilling may require an evolutionary step in perception at the well site that also incorporates specialized human input and flexibility as the best solution for sophisticated problem-solving in a dynamic environment.

Source:Shutterstock.com

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Solids Control Innovations To North American Shale Fields

While the last year has seen a ramping up of onshore drilling in shale fields across North America, it’s clear that “caution” still remains the watchword when it comes to drilling and production budgets.

Anadarko, ConocoPhillips and Hess already have announced reductions in 2017 E&P budgets, and in the words of Anadarko CEO R.A. Walker, “We sincerely believe the volatility of the current operating market requires financial discipline.”

Such volatility and the focus from shale operators and drilling contractors on financial discipline, reduced costs and increased efficiencies is shining the spotlight on a key sector of the drilling market—solids control.

Drilling fluids play a crucial role in drilling activity in shale fields, cooling and lubricating drillbits, carrying drill cuttings to the surface, controlling pressure at the bottom of the well and ensuring that the formation retains the properties defined for that well.

The effectiveness of such fluids is highly dependent on solids control and the ability to separate the mud from rock particles and low-gravity solids so that clean mud is recycled and circulated back into the drilling system. If there are too many solids in the mud, ROP is reduced, and torque, drag and abrasion are increased as well as potential lost circulation and production.

The more capable the drilling rigs and the better the solids control technologies, the greater the drilling efficiencies and levels of potential production.

Current technology limitations

Shale shakers separate drill cuttings by passing the muds through a shale screen with separation achieved by vibrations and high G-forces. But there are limitations to these devices.

First, there is the capex and opex required for the shale shakers—not a one-off cost but a drag on finances throughout operations due to the need for the shale screens to be continually replaced.

There also is more onsite equipment, personnel, and greater costs and HSE risk.

Also, there are the inefficiencies of the shale shaker-based process itself.

The drilled solids are often broken down into fine particles that are difficult to remove, leading to an increase in solids in the drilling fluid, a decline in drilling fluid efficiency and a negative impact on penetration rates and equivalent circulating density.

Another downside of vibrating-type shale shakers is higher volumes of mud being lost and more drilling waste generated. One industry guru working for a major operator once said that 15% of all the mud used per well is lost in some form or another via the shakers.

Viable alternative

It’s with these issues in mind that Cubility’s filter beltbased MudCube technology is proving an effective alternative to shale shakers in shale fields.

The MudCube is an enclosed vacuum-based system that eliminates the traditional process of shaking fl uid and solids. Instead, drilling fl uids are vacuumed through a rotating filter belt that uses high airfl ow to separate the cuttings from the fl uid.

The cleaned drilling fl uids are then returned to the active mud system, and the drilled solids are carried forward on the filter belt for disposal. As opposed to shakers, the MudCube processes 100% of the mud, immediately increasing performance.

The system also eliminates the need for multiple shaker panels, with the solids removal efficiency also ensuring that as much as 80% more mud is recovered than competing technologies, which is a huge benefit when multiplied by several onshore rigs.

The improved separation capabilities of the MudCube also lead to better quality drilling fluid, more drilling fluid recycled back to the mud tanks to be reused for drilling, less waste and improved drilling efficiencies with stable drilling fl uid properties and a decrease in nonproductive time.

There are also the financial benefits of avoiding screen replacements on a regular basis—filter belts need replacing but not at such fast rates.

In addition, the MudCube is a much more compact alternative to shale shakers. A typical three-deck shaker weighs about 3 metric tons compared to 1 ton for the MudCube.

Deployments across North America

The MudCube’s easy installation on drilling pads is ensuring that it can impact the bottom line almost immediately.

In 2016 Cubility partnered with EQT Corp., and the MudCubes were successfully deployed to an onshore fl uid rig that was drilling Marcellus wells in western Pennsylvania. Cuttings were easily lifted out of the wellbore, leading to immediately improved solids control and waste disposal.

The MudCube also has been successfully deployed for Murphy Oil in Canada, and the company is evaluating the service for possible use in the Eagle Ford Shale as well.

New Tech Solids Inc. and the MudCube delivered dry cuttings with Murphy Oil in Canada. (Source: Cubility)

Mending the broken value chain

Cubility also is looking to contractor partnerships and offering the MudCube as a rentable system to enable contractors to embrace the latest solids control innovations and address the broken value chain where operators drive down day rates, leaving contractors with little scope for new equipment.

To this end Cubility is partnering with Houston-based Stage 3 Separation in providing a modular, easy and inexpensive installation and operation of MudCube, a system specifically designed for onshore shale operations and that can be up and running in a matter of days as an integrated part of the rig design.

It’s through exclusive distribution partnerships such as this and also with Canadian-based New Tech Solids Inc. (a recent deployment is taking place with Shell via New Tech Solids) that the next few years is likely to see more and more MudCubes deployed across North American shale fields through these service providers.

In today’s tight but ultrafast land drilling market, any solids control solution must provide immediate “wins” in terms of reduced costs and increased efficiencies. Vacuum and filter belt-based enclosed solid control systems are achieving this. 

Read More → Solids Control Innovations To North American Shale Fields