Investing in oilfield technologies

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Investing in oilfield technologies

• Why rig count doesnt matter anymore
• Richard Spears
• Spears Associates, Inc.
• Tulsa
• Q2 2005

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Why does rig count not matter anymore?

• What is the most expensive component of drilling
  completing a well?
• What are engineers around the world challenged
  daily to reduce?
• What technologies are solving those challenges?

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Drilling rig count still a barometer?
Drilling rig activity tells us less and less
about how busy we are. In 2004, rig efficiency
actually increased. While rigs drilling will
always be important, technology is the growth
market.
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Not all companies are heading up
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10 technologies to invest in this decade
Drilling
Completion
Production

• Rotary steerable
• Fixed cutter bits
• Shock vibration
• Seismic at the bit
• Drilling with casing
• Coiled tubing drilling

• Stimulation
• Proppants
• Well tractors

• ESP

Some are old, some are new, but all 10 will grow
strongly as downhole technologies replace rig
time.
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Directional drilling services
Source Spears Associates, Inc. Oilfield
Market Report 2004
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Rotary steerable technology
SLB BHI HAL
Source Spears Associates, Inc. research 2005
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Fixed cutter bits (PDC)
BHI SII GRP HAL
Source Spears Associates, Inc. Oilfield
Market Report 2004
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Bit trends since Q1 2001
Source Spears Associates, Inc. Oilfield
Market Report 2004
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Downhole shock vibration mitigation

• With sophisticated systems downhole, reducing
  shock vibration becomes critical.
• Result is better bit control on the bottom and
  longer times between system failures.
• APS Technologies leads this initiative.

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Seismic at the bit

• Seismic at the bit originally targeted at the
  earth scientist is being pulled through by the
  drilling engineer.
• As we drill faster, things happen faster
  downhole. Engineers need better pore pressure
  prediction.
• Though early in the development cycle by ILI,
  results look promising.

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Drilling with casing
With 30 fuel savings and 30-60 less downtime,
TESCO can drill for 40 less than conventional.
In addition to these complete wells, Weatherford
has drilled 300 DwC projects, including
conductors, surface pipe and other individual
strings.
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Coiled tubing drilling
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Fracturing acidizing
Source Spears Associates, Inc. Oilfield
Market Report 2004
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Pressure pumping services
HAL SLB BJS Trican Calfrac
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Manufactured proppants
CRR
Source Spears Associates, Inc. Oilfield
Market Report 2004
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Well tractors

• Tractors convey tools downhole back
• Useful in high operating cost environments
• Reduces rig time
• Technology from a variety of sources

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The growing role of artificial lift
Source Spears Associates, Inc. Oilfield
Market Report 2004
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ESP market
BHI SLB Wood
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Summary Engineers are working to

• Reduce flat time on drilling rigs,
• Improve the efficiency of the operation
• Reduce cost to find, develop, produce.
• Investing to quickly achieve these objectives
  will pay great dividends this decade.

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10 technologies to invest in this decade
Drilling
Completion
Production

• Rotary steerable
• Fixed cutter bits
• Shock vibration
• Seismic at the bit
• Drilling with casing
• Coiled tubing drilling

• Stimulation
• Proppants
• Well tractors

• ESP

Some are old, some are new, but all 10 will grow
strongly as downhole technologies replace rig
time.
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SPE DISTINGUISHED LECTURER SERIES is funded
principally through a grant of the SPE
FOUNDATION The Society gratefully
acknowledges those companies that support the
program by allowing their professionals to
participate as Lecturers. And special thanks to
The American Institute of Mining,
Metallurgical, and Petroleum Engineers (AIME) for
their contribution to the program.