2009 CADE * CAODC Drilling Conference Guide

TUESDAY, MAY 26, 2009

Flanagan TheaTre aT The grand TheaTre, Calgary, alBerTa

CANADIAN ASSOCIATION OF DRILLING ENGINEERS • CANADIAN ASSOCIATION OF OILWELL DRILLING contractors

confErEncE guide2009 cADE■cAoDcDrilling

l e a d i n g T h e C h a l l e n g e , d e l i v e r i n g r e s u l T s

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I

contents2009 cade■caodc drilling conference

neither Cade, CaOdC, or Cade■CaOdC drilling Conference take any responsibility for the statements, references, or facts printed within this document that may have been written in error and are released from any liability in this regard.

15 Drilling activity Guide a synopsis of vital drilling statistics for western canada

17 Drilling in safety combination of company commitment, regulatory

leadership, and changing technology sharpens focus on drilling safety

21 rig Guide our quick and dirty vitals for pad and do-everything rigs

28 Leveraging Brainpower caoDc/nsErc chair in drilling engineering focused

on improving drilling decision making through better technology and an educated workforce

30 Snatching Out a Wild Well

f e a t u r e s

25 reducing Drilling risk Baker Hughes INTEQ’s StarTrak LWD tool now

downsized to provide high-definition images in western canadian wells

26 Better Drilling through Better chemistry Baroid’s canadian team adapts InnoVErt oil-based

drilling fluid for canadian conditions

27 cleaning Up Q’Max solutions Polytar drilling fluid answers

saGD drilling challenges

c a s e s t u d i e s

5 Welcome Message

6 CADE Welcome

7 CAODC Welcome

9 technical committee

10 conference schedule

12 Keynote speaker

14 conference sponsors

c o n f e r e n c e i n f o r m a t i o n

Bill WhitelawPresident & [email protected]

Agnes [email protected]

Dale [email protected]

Marisa Kurlovich, Elizabeth McLean Editorial assistance [email protected]

Michael GaffneyPrint, Prepress & Production [email protected]

Audrey SprinklePublications [email protected]

Rianne Stewart Publications supervisor [email protected]

David Finch, Darrell Stonehousecontributors

Matt DavisLead, creative [email protected]

Birdeen Jacobsonsenior Graphic Designer [email protected]

Creative Services rawan Kemaldean, alanna staver [email protected]

Rob PentneyDirector of sales [email protected]

Maurya Sokolonsales Manager—Magazines [email protected]

Nick Drinkwateraccount Manager [email protected]

Jane Howatsales administrator [email protected]

Alanna Staverad traffic coordinator—Magazines [email protected]

Alaina Dodge-Foulgersenior Marketing coordinator [email protected]

Ryan MischiekMarketing/trade show coordinator [email protected]

Cristian UretaMarketing Designer [email protected]

Calgary-Downtown:300, 999-8 st sW, Calgary, alberta T2r 1n7 Tel: 403.209.3500 Fax: 403.245.8666Toll-free: 1.800.387.2446

Calgary-North:300, 5735-7 street n.e., Calgary, alberta T2e 8v3Tel: 403.265.3700 Fax: 403.265.3706Toll-free: 1.888.563.2946

Edmonton:6111-91 street n.W., edmonton, alberta T6e 6v6Tel: 780.944.9333 Fax: 780.944.9500Toll-free: 1.800.563.2946

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mailto:[email protected]


















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i t is with great pleasure that i welcome you to the grand Theatre and the 2009 Cade■CaOdC drilling Conference. your participation has made and will continue to make this one of the best operationally focused drilling and completions events in the world. i say that without hesitation

because of the number of “collaborative” presentation efforts made by operators and their carefully selected services. The Canadian oilfield has always had a unique ability to adapt technology in the face of our low-pressure, sour gas–prone sedimentary environment. Today, you will hear about the technical hurdles that your peers have overcome in leading the Challenge, delivering results. The results will speak for themselves.The future of this conference looks extremely bright. The combined membership of Cade and CaOdC continues to generate excellent technical sharing opportunities that ultimately provide the transfer of knowledge valued at this conference.The level of sponsorship and participation by the corporations represented within the two organizations remains strong despite the global economic downturn. We, the Conference executive Committee, sincerely thank you all for that. The possibility of growing the conference in size and scope is exciting. The possibility of international participation is attractive. and, as the global economy rebounds, the expansion of our format to two days is likely to occur next year.i would love it if you all could be a part of that!have a great conference, and then share the learning and experience of the conference with one friend before the end of the workday tomorrow. The value of the call will show up at next year’s event.

sincerely,Doug Hollies2009 CADE■CAODC Conference Coordinator

CADE ■CAODCEXECUTIVE COMMITTEE

seated (left to right): george Mchardy, david Whitestanding (left to right): alice skoda, Mark scholz, John James, doug hollies, Kim Barton, gord WagnerMissing: Keith Krausert, ryan schoenhals, Jason Tiefenbach

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2 0 0 9 c a D E ■ c a o D c D r i l l i n g c o n f e r e n c e

W elcome to the annual celebration of innovations in the Canadian oil and gas well construction industry.i know that everyone attending today’s event

will take away something that they can use to improve their businesses, just as the presenters improved their company’s effectiveness. in order to present the lessons learned at today’s conference, the authors took the time to understand what they have accomplished and document the findings, and they are now sharing the results with the rest of us. in doing this, they have overcome psychological barriers that exist in all organizations that often favour the status quo. They have also sacrificed their time and energy so that others can obtain the benefits of their labour and innovative ideas. This cycle of learning, sharing, and innovation continues to lead to better performance in our industry and is especially important in the current uncertain economic times. Cade is a volunteer-driven organization that supports events like the Cade/CaOdC Conference. The people in both organizations and the presenters today believe that the Cade values of networking, celebration, education, innovation, and

sustainability are important contributors to success and have worked very hard to prepare a strong program. Our conference theme, leading the Challenge, delivering results, is indicative of how people in the well construction business continually find ways to produce energy for our world.

Cade’s mission statement is to build capacity in well construction excellence by leveraging our collective knowledge. i challenge you to do three things today:1. Take something that you learn today back to your office

and use it.2. Plan to participate in our meeting next year by committing

to preparing a presentation.3. get involved in our organization through volunteering to

work on a committee or encouraging your colleagues to join.

sincerely,David WhitePresident, Canadian Association of Drilling Engineers

CADE WELCOME

COnfErEnCE COMMITTEEs

ExEcUtIVE coMMIt tEEGeorge McHardy

Conference Co-Chairman (CaOdC), nabors drilling, a division of nabors Canada

David WhiteConference Co-Chairman (Cade), nexen Canada inc.

Doug HolliesConference Coordinator, Codeco energy group

Kim Bartonregistration Chair, Weatherford Canada Partnership

John JamesTechnical Co-Chairman

Ryan SchoenhalsWebsite Chairman, Tenarisalgoma Tubes

Mark ScholzTechnical Co-Chairman, CaOdC

Alice SkodaFinance Chair, summit Tubulars Corporation

Jason Tiefenbachluncheon Chairman, evraz inc. na.

Gord Wagnersponsorship/advertising Chairman, summit Tubulars Corporation

tEcHnIc aL coMMIt tEEJohn JamesCo-ChairmanMark Scholz

Co-Chairman, CaOdC Kim Barton

Weatherford Canada PartnershipLino DiQuinzio

enCana Oil & gas PartnershipShawn Hittle

Talisman energy inc.Ron Isinger

Precision drilling CorporationRon McCosh

volant Product inc.Tai Nguyen

Canadian natural resources limitedKaren RoettPetro-CanadaGreg Szutiak

shell Canada energyFrancis Yu

Paramount resources


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T he Canadian association of Oilwell drilling Contractors (CaOdC) is excited to once again partner with the Canadian association of drilling engineers (Cade) to put

on this year’s conference. On behalf of the CaOdC i would like to welcome you to the 2009 Cade■CaOdC drilling Conference. The conference theme, leading the Challenge, delivering results, resonates for us given the state of the industry today. as we move forward in these tough economic times it is reassuring to know that our industry always strives to improve the business with advancing technologies and techniques.There are many pivotal individuals that made this event happen and i want to thank everyone for their efforts. as you participate in this year’s conference, remember that each of us has a role to play as we improve our industry together. Thank you for your attendance at this year’s conference.

Don HerringPresident of the CAODC

CAODC WELCOME


7

At Nexen, it’s not just what we do that makes us worldwide leaders – it’s how we do it.

Nexen is a Canadian-based oil and gas company with international operations. We’re committed to working collaboratively, building our assets and finding new ways of developing our oil and gas resources – conventional and unconventional – through innovative adaptation of technology. This leads to a sustainable outcome, creating value for all of our stakeholders.

Nexen, a company you can believe in.

www.nexeninc.com

http://www.nexeninc.com

TEChnICAL COMMITTEEseated (left to right): Kim Barton, John James, Mark scholz, ron McCoshstanding (left to right): lino diQuinzio, Francis yu, shawn hittle, ron isingerMissing: Tai nguyen, Karen roett, greg szutiak


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2009 CADE ■CAODCCOnfErEnCE sChEDULE

T u e s d a y , M a y 2 6 , 2 0 0 9

7:30 a.m. Registration Open and Continental Breakfast sponsored by Smith International

8:15 a.m. Theatre Doors Open

8:30 a.m. Opening Remarks d. hollies, Codeco Energy Group

d. White, Nexen Inc.

8:40 a.m. Conference Overview J. James

8:45 a.m. Working Through Adversity K. sanford, Weatherford Canada

ALTERNATE PRESENTATIONS

Recovery and Recycle - An Evolutionary Step in Underbalanced Drillings. Kushwaha, Weatherford Canada Partnership

Alternative Well Placement and Well Bore Recoverya. Tokarz, Scientific International

sEss Ion I WELL PL ANNINGsessiOn Chair: s. hittle, Talisman Energy Inc. r. isinger, Precision Drilling Corporation

9:00 a.m. Benchmarking, Drilling Performance& Well Planning

J. arvidson, Devon Canada; M. sloane, XI Technologies Inc.

9:30 a.m. Evaluation of Drilling Rig Performance Characteristics

Q. Foulston and h. griffin, Precision Drilling

10:00 a.m. Coffee and Networking Break sponsored by Beaver Drilling Ltd.

sEss Ion I I D IrEc tIonaL oPEr atIonssessiOn Chair: J. James

10:15 a.m. Critical Success Factors for RSS Applications - A Study of Case Histories

h. Zafar, Schlumberger

10:45 a.m. Case Study: Cost Savings Accumulated by Running Unmanned MWD and Limited Directional Drilling Personnel On Site

J. Bush, d. logan, and d. switzer, Extreme Engineering

11:15 a.m. Effective Cementing of Horizontal Wells in North East British Columbia

M. exner, Halliburton; T. Whittall, Petro-Canada Oil and Gas; M. Willis, Schlumberger

11:45 a.m. - 1:30 p.m. No-Host Reception Luncheon sponsored by Ensign Energy Services Inc. Tickets must be purchased in advance.

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sEss Ion I I I InnoVatIVE soLUtIonssessiOn Chairs: l. diQuinzio,

EnCana Oil & Gas Partnership r. McCosh, Volant Products Inc.

1:30 p.m. Welcome Back M. scholz, CAODC

1:35 p.m. Moving in the Right Direction: Decreasing Drilling Costs Using Pason’s Remote Directional System

a. eddy, Pason System Corp.

2:00 p.m. Fat Pipe Drilling l. Klaver, Akita Drilling Ltd.; M. Zhou, Husky Oil Operations Ltd.

2:30 p.m. Frac Hook Multilateral System r. langeslag, Baker Oil Tools Canada

3:00 p.m. Networking Break sponsored by Precision Drilling Corporation

sEss Ion IV coMPLEtIonssessiOn Chairs: K. Barton,

Weatherford Canada Partnership T. nguyen,

Canadian Natural Resources Limited

3:15 p.m. Re-Entry / Slim Hole, Multi-Stage Fracture Treatments in the Montney Formation Deliver Significant Value Over Drilling New Wells

d. Bobrosky, Packers Plus

3:45 p.m. Application of Expandable Technology Enables Evolution of Fracturing Strategy

J. Chipiuk, Enventure Global Technology,L.L.C.; M. edgelow and W. MacPhail, Devon Canada

4:15 p.m. Closing Remarks Conference Co-Chairman g. Mchardy, Nabors Drilling

4:30 p.m. - 6:30 p.m. Cocktail Reception and Networking sponsored by Nabors Canada


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ALLAN R. NELSONENGINEERING (1997) INC.

200, 17510 - 102 AVE EDMONTON, AB T5S 1K2

MECHANICAL ENGINEERS SERVING THE DRILLING AND SERVICE RIG INDUSTRY SINCE 1966

◆ Complete design and analysis of drilling and service rig derricks, substructures, pipe handling arms, pipe handling systems and moving systems to API codes.

◆ Automatic and semi-automatic handling systems.◆ Design calculations of specialized machinery. ◆ Design reviews to meet API 4F 3rd edition.◆ Equipment certification.◆ We are consulting engineers and are not affiliated with a fabricator.◆ Drilling derricks and substructures to API 4F 3rd edition.◆ Design of CSA B626 (TC44) portable diesel fuel tanks.

ENGINEERING INVESTIGATIONS

◆ Forensic Engineering ◆ Risk Analysis & Audits ◆ Reconstruction Design Reviews ◆ Extensive Expert Witness Trial Experience ◆ Fire Damage & Cause Analysis

◆ Metallurgical Examination & Certification of Cranes, Housing & Drilling Equipment

PH: (780) 483-3436 FAX: (780) 489-9557 www.arneng.ab.ca

KEItH sanforD is the sales and Technical support Manager for Weatherford drilling services in Canada. Keith is responsible for sales and technical support activities for Weatherford’s directional, survey, rotary steerable,

lWd/MWd, and controlled-pressure drilling service lines.Keith’s background is ideally aligned for his current position. he has been associated with drilling rigs and directional drilling for over 17 years, having started in the industry as a roughneck and

Keith travelled to the Kingdom of nepal to attempt the eighth highest peak on earth. as the expedition leader of this international team, Keith learned the dual skills of leadership and team player and what it takes to climb the highest mountains in the himalaya. These attributes coupled with a strong work ethic and an unwavering commitment to quality has positioned him as a leader in drilling services with Weatherford.

advancing through the ranks to the position of directional driller. For the last seven years, Keith has worked in various sales and managerial roles progressing to his present position. Prior to joining the oil business, Keith spent nine years working in the entrepreneurial environment of his family’s auto parts business.notwithstanding Keith’s affinity for the directional drilling business, he also has interests beyond oil and gas. as a back-country enthusiast and mountain climber, Keith has been to the summits of over 50 mountains in alberta and British Columbia. in 2005 on his first attempt at high altitude climbing, Keith, along with three companions, succeeded in reaching the top of the highest peak in the americas, Cerro aconcagua (22,841 feet) in argentina. subsequently in 2007,

keynotespeaker

kEiTh SAnforDsales and TeChniCal suPPOrT Manager,WeaTherFOrd drilling serviCes


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3rd Floor, 3333 - 8th Street S.E. Calgary, AB Canada T2G 3A4 Ph: 403-237-7808 [email protected] [email protected]

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UnConventional.www.drdirectional.com

COLORADOPh. 202.877.9736

CALGARYPh. 403.920.0208


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conference sponsors

Thanks to all our sponsors who made this conference possible through their generous support and contributions.

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drilling rig activit ya s y n O P s i s O F v i T a l d r i l l i n g s T a T i s T i C s F O r W e s T e r n C a n a d a

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RIG UTILIZATIONTotal number drilling in western Canada

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100

80

60

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RIG UTILIZATIONPer cent active in western Canada

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PER

CEN

T

sOu

rC

e: g.W

ag

ner

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D rilling oil and gas wells can be a dangerous occupation. it only takes a second, or a brief lapse in judgment, for things to go wrong. and when they do, the results can

be tragic.Consider this example: a young motorman working on a rig in northeastern British Columbia was killed recently when his fall protection lanyard snagged and became entwined around the kelly on the rig floor. The worker had just completed work on the derrick wearing his fall body harness and after coming down he detached the lanyard from the anchor line and, without removing his harness or lanyard, walked across the rig floor. The lanyard wrapped around the kelly and he was pulled into the rotary bushings.

While these kinds of accidents still happen on drilling rigs, they are becoming more rare. and the reason for this is a growing focus with industry and governments in improving safety protocol and driving it down to the drilling rig level.eric reitsma, the executive director of compliance for alberta Workplace health and safety, calls the drilling business a high-hazard industry. Because of this inherent danger, the industry has been a major area of focus for regulators in recent years.“it’s been a major focus because it has major hazards,” he explains, adding that, “in the last few years there has been a lot of activity plus a lot of new, young workers coming in. Things have slowed down now but we have to keep up the focus because we don’t want the upstream oil and gas industry ➔

drillingin SAfETYCombination of company commitment, regulatory leadership, and changing technology sharpens focus on drilling safetyB y D a r r e l l s t o n e h o u s e

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to get to be known as the area where young folks go to get maimed and killed.”Provincial governments have responded by increasing inspections on drilling operations when warranted to ensure safety regulations are being followed. reitsma says there have been two major pushes on the drilling industry in recent years. The first was an effort to deal with fire and explosions in 2002.“Worksafe alberta did a targeted program and really keyed in on it,” he explains. “We did lots of inspections and met often with industry and we worked together and got a handle on that issue.”in May of last year, the safety regulator again increased focus on the drilling industry after seven workers were killed on the job, four directly related to drilling activities, in the first four months of the year. The fatalities were related to workers being struck by equipment or the collapse of derricks, cranes, and hoists.“That’s not a good record,” says reitsma.also of concern were higher lost time claims (lTC) and disabling injury rates. in 2007, the drilling industry had an lTC of 1.46 and a disabling injury rate of 6.55. The service rig industry had an lTC of 1.36 and a disabling injury rate of 7.67.“Those are the two highest upstream disabling injury rates,” says reitsma.

reitsma says while industry has done a good job in dealing with many of the minor injuries that make up most disabling injuries through various kinds of back-to-work programs, they remain a concern to regulators.“if you have so many of these disabling injuries you’re probably going to have more fatalities and significant injuries,” he explains.Overall, reitsma says the industry is doing a good job improving work conditions on the hundreds of rigs it employs annually.“They’ve been really good at looking at health and safety and making the commitment to reduce injuries,” he says. “They’ve stepped up and honestly looked at the issues, and they’ve tried to deal with the issues. They’ve been a good industry to work with.”WorksafeBC has also stepped up focus on the drilling industry in recent years. The province’s petroleum industry has an injury rate that is about one-half the provincial rate (1.6 versus 3.1).

“This is a fa s t paced, r isky

industr y. When oi l and gas

employees do get hur t ,

they average near ly twice

a s much t ime of f the job as

workers in other industr ies.”

— don dahr , compliance manager, WorksafeBc


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Nabors Canada

1-800-386-1830

Innovation – introduction of something newTechnology – study of mechanical arts and

applied sciences applications in industry

Experience – practice in doing somethingExcellence – outstanding merit or quality

The words above as defined by the Oxford Dictionary; add to that the peo-ple and resources of Nabors worldwide and you have a description of what Nabors Canada presents to our customers. Our fleet of drilling rigs, service rigs and personnel can supply all your needs from raw leases to completed wells including directional drilling, complete data acqui-sition and management to abandonment and certification of abandoned leases.

The local Canadian talent of Nabors Canada has done it all from the site spe-cific engineering and construction required for specialized projects to the everyday routine, timely and efficiently.

But the regulator says the severity and the duration of injuries to oil and gas workers need to be addressed. like in alberta, the drilling sector leads the way in injuries in British Columbia.“This is a fast paced, risky industry,” WorksafeBC’s compliance manager don dahr said last May in announcing a new safety guide for the industry. “When oil and gas employees do get hurt, they average nearly twice as much time off the job as workers in other industries.”dahr said producers and contractors need to get on the same page to limit injuries.“in large part, improving the situation depends on everyone understanding who’s responsible for what when it comes to workplace safety,” according to dahr. “With so many people operating and making decisions at different levels on petroleum work sites, it’s critical that all the players do their part.”a publication, titled Oil & gas Compliance, was created for WorksafeBC officers inspecting petroleum work sites. in May the government made it available to the industry.The two-booklet package describes safety responsibilities of owners, prime contractors, employers, supervisors, and workers. it also outlines WorksafeBC’s petroleum industry inspection protocol and compliance strategy. dahr says the publication doesn’t alter any existing regulatory or statutory requirements.Much of the work done on safety issues in the drilling industry is done through enform, which operates as the petroleum industry safety association for alberta, British Columbia, and saskatchewan. enform provides over 120 safety and other courses annually to over 150,000 workers. it also helps companies get their Certificate of recognition, or COr.COr is a voluntary program where companies develop health and safety programs based on best practices that exceed regulatory requirements. Many producing companies require the certificate to work at their drill sites. all drilling and service rig contractors are required, as a condition of the CaOdC membership, to hold and maintain a valid Certificate of recognition.enform is also steward of the set of industry recommended best practices. an irP is a set of best practices and guidelines on various safety issues relevant to the industry, developed by industry. They are intended to provide management and operators in the Canadian oil and gas industry with advice, says enform. There are currently 22 irPs ready or in development.reitsma says the efforts of enform and individual companies are visible in the field.“When our staff do inspections or hazard assessment, our officers look at what they’re trying to do with health and safety,” he notes. “We see that it works really well when people are doing pre-hazard assessments at the site, when they are doing written pre-hazard assessments, and they’re using it in the field. When they have a pre-safety meeting before working, and look at instituting controls, that’s where the programs really work.”Technology is also playing an increasing role in improving rig safety. new automated drilling rigs limit the amount of time workers spend on the drilling floor, and automated pipe-handling systems also reduce opportunities for mistakes.“any time you can get people away from hazards like pinch-points, it helps,” says reitsma. “if industry can do that it will really reduce the probability of injuries.”


19

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What applications does this rig work in?This rig works in applications that require a mobile, high performance, high value drilling rig managed by qualified rig crews. The integral walking system; the controllability of the aC motors that drive the mud pumps, drawworks, and the topdrive; the mechanized catwalk and iron roughneck; and the oil-based mud-ready tanks make this one of the most technologically advanced land-drilling rigs in north america.

What does this rig do best?drill directional wells on a multi-well pad. Weight on bit is managed through fine control of the inverter-duty aC drawworks motor by the digital control system. as well, the topdrive incorporates a control algorithm that keeps the normally non-rotating pipe steady while sliding in alternating radial motion to reduce frictional resistance, which allows for longer directional wells.

What depths does it work in?historically 2000 m to 4500 m true measured depth (TMd).

What’s the deepest well depth it has drilled?Precision drilling r521 drilled to 4680 m TMd in February of 2008 near dawson Creek, BC.

What is the most interesting well this rig has drilled or worked on and why?a number of the long reach horizontal wells drilled in the horn river Basin in northeastern BC have been interesting wells. With elevated mud densities averaging 1700 kg/m3 and flow line temperatures averaging 60—70 degrees C, the aC super Triple was perfectly equipped for the work.

Why would a drilling engineer hire this rig?in addition to providing high performance and high value, the aC superTriple provides our people with the tools necessary to perform safely. The driller is positioned inside a climate-controlled enclosure while a power catwalk, an iron roughneck, and power slips limit the exposure that our people have to high-risk activities such as handling tubular running tongs and pulling slips.

1. Number of loads (winter) 35

2. Depth Rating 4500 m vertical depth with 4 ½” drill pipe

3. Mast Size 136 ft cantilever triple shl 500,000 lbs (222500 dan) w/ 10 lines racking Capacity: 5200m 4” drillstring, 4500m 4 ½” drillstring

4. Substructure One-piece w/pony (integral moving system) 18ft floor height: 14 ft sub height plus 4 ft pony setback Capacity: 400,000 lbs (178,000 dan)

5. Blow Out Prevention Equipment six (6) station, eleven (11) x 15 usg, 3000 psi accumulator Typical stack: 11” 5M erCB Class v BOP

6. Mud tanks active volume: 133 m3 (2 tanks)

7. Pumps 2 x 1000 hp aC inverter duty motor-driven triplex pumps Max speed: 120 spm Max working pressure: 5000 psi

8. Generators & AC Drives aC Motor Control: aBB aCs800 inverter modules

with nOv amphion Control 2 x Cat 3512C engine w/ 1225 kW 1750 kva 600v generator 1 x Cat C16 engine w/ 600 kW 750 kva 600v generator 1 x isuzu 6Bg1 engine w/ 75 kW 208v generator

OUR QUICK AND DIRTYVITALS FOR PAD AND DO-EVERYTHING RIGS

RIG GUIDE

21

PrECIsIOn DrILLIng PAD-CAPAbLE AC sUPEr TrIPLE

What is unique about this rig design?The hybrid design has a few unique characteristics: it can switch from coil drilling to pipe drilling with a top drive and vice-versa in less than 10 minutes; it can drill exclusively with drillpipe; it has a very small footprint and levels very easily for zero disturbance wells; it is designed for quick moves; and it has an automated pipe handling system—no derrickman—for increased efficiency and safety.

Where would this rig usually be found working?The hybrid rig was initially designed for the shallow gas fields of alberta, where speed and efficiency is paramount in controlling costs. since then the hybrid rig has drilled from northeastern BC to the most eastern edge of the Bakkan field in saskatchewan, from the Barnett shale fields of Texas, to Oklahoma and new Mexico.

What is the effective depth range of this rig?it ranges from 300 metres to 3,000 metres. There are two different depth ranges of the hybrid rig we operate, at 1,500 metres and at 2,200 metres. We are efficient in drilling with coil to 2,200 metres and have drilled horizontal wells with drillpipe to depths exceeding 3,000 metres.

What was the most challenging project worked on and why?The wells that were drilled in the Barnett shale. The CT2200 was the smallest rig in the area. The rig was drilling 10,000-foot wells and competing with larger doubles that were already established in the area. We had wells drilled for eOg resources in under 10 days that were previously taking 18 to 20 days.

Why would a drilling engineer hire this rig?The hybrid gives the operator the option of coil or drill pipe or both. as mentioned, switching from coil to top drive can be done in minutes. The closed loop system of the coil offers better management of fluid, which reduces costs; not having to make connections saves time; and the fact that there are no floorhands or derrickmen while coil drilling makes for a safer operation. you have fewer loads than rigs in these depth ranges and they move quickly, which saves on trucking costs. The CT2200 is a very versatile rig capable of a variety of work in a broad depth range.

What applications does this rig work in?it is used in vertical, directional, and horizontal drilling, as well as in re-entry wells, so basically all applications, whatever their depth capacities.

What does this rig do best?The hybrid rig can move faster and outperform its competition in both depth capacities. however, they are most efficient at drilling wells where penetration rates and quick move times are the parameters used for measurement.

What is the deepest well ever drilled with this rig?2,000 m with coil in northeastern BC 3,000 m horizontal wells in the Barnett shale

1. Number of loads in winter 9 (coil only)

2. Number of loads in summer 8 (coil only)

3. Depth rating with drill pipe 2,500 m

4. Depth rating with 88.9 mm coil 2,200 m

5. Top Drive Fds

6. Injector Fds 120K

7. Mast height 21 m

8. Static hookload 200,000 lbs (89,000 dan)

9. Coil capacity 2200 m x 88.9 mm or 3300 m x 73 mm

10. Mud pump(s) Triplex F1000

11. Mud tanks 53m3

12. Miscellaneous iron roughneck (9” opening, 60,000 ft/lbs torque) automated hydraulic catwalk

22

TrAILbLAzEr DrILLIng hybrID rIg 25

23

What application does this rig work best in?it is best suited for multi-well pad drilling. The more wells on pad, the more cost effective the rig becomes. nabors currently has this style of rig working in the horn river drilling shale and also in Fort McMurray drilling heavy oil. The rig walks around the pad on a tight footprint with no umbilical quickly, safely and efficiently, reducing overall costs to operator.

What does this rig do best?Without a doubt, batch drilling is the way to go with this rig style. Batch drilling approach has been designed so the operator can cut costs and minimize waste (environmental impact). This is achieved through drilling all surface holes on pad with an approximate move time of 30 minutes within 15 meters of well spacing. drilling mud, pipe, and bottomhole assemblies all remain on the rig creating increased efficiencies, as there is no waiting on completion time. This process is then repeated for all intermediate holes on pad.

Why would a drilling engineer hire this rig?nabors has designed the “fit for purpose rig” specifically for pad drilling and has created a safe and efficient work environment reducing overall costs, drilling time, and incidents on rig. drilling engineers are looking for the latest technology, compact yet powerful equipment, increased pumps/horsepower, top drives, overall faster features, and enhanced safety elements. all are features of rig 102. Please call nabors drilling sales and Marketing for further information 403–263–6777.

What range can Nabors 102AC drill?0–4000 m (true vertical depth)

1. Rig power 3 each- 3512B Caterpillar 1100 kW per set

2. Depth rating 4,000 m with 5” drill pipe

3. Mast size hodgson Boot strap Triple

4. Height 43.3 m

5. Maximum allowable load 222,400 dan

6. Substructure/Moving System hodgson one piece sits on a Columbia Moving

system—walks one metre every two minutes

7. Mud pumps 2 each–PZ10 (1,350 hp per pump) Powered by Weg electric motor

8. Shale shakers 4 each–Brandt King Cobras 1,800 cycles/min

9. Mud tanks Covered mud tanks move with the rig 2 each–Tanks 196.8 m3 total volume 5 mixing pumps MCM 250 series

10. BOP Customize as per customer’s request Custom 6 station accumulator (680 l)

11. Number of loads 55

nAbOrs 102AC “fIT fOr PUrPOsE” PAD rIg

What applications does this rig work in?This rig can drill efficiently in both single-well and pad configurations (the suitcases—that connect the central system with the rig module—and the transfer tank are simply removed for single well locations). The rig flourishes in applications that require pad capabilities and have wells with a shallow true vertical depth (typically less than 300 m) where spudding on an incline is required (e.g. steam assisted gravity drainage applications). The rig is also a high performer with the mast at vertical.

What does this rig do best?With the integral pipe arm and hydraulic pipe handling off the racks, this rig minimizes worker interaction with the tubulars during drilling and tripping operations. its versatility in the packaging of its loads also makes the rig extremely mobile; minimizing move times (e.g. The rig is designed to break down if required by local allowable road weight regulation, but can also be moved in-field with little disassembly.).

What depths does it work in?historically 300 m to 3,000 m.

What’s the deepest well depth it has drilled?r150 drilled a well to 4,050 m true measured depth (13,000 ft) near Fox Creek, alta., in december of 2008.

What is the most interesting well this rig has drilled or worked on and why?The drilling of a hole under the Fort nelson river in northern British Columbia for a natural gas pipeline. encana chose to run the pipeline under the river to lessen the environmental impact on the surrounding habitat.

Why would a drilling engineer hire this rig?The super single drilling rig is one of the most versatile rigs in the industry today. it has the ability and capacity to handle the heavy duty requirements of medium-depth horizontal wells without sacrificing the ability to move quickly for shallow gas drilling. The rig can easily be configured to drill in pad or single-well configuration. low-cost moves, safe and efficient operations, and outstanding reliability make the super single more than just a rig that can drill slant wells.

1. Number of loads (winter) 30 (pad), 15 (single)

2. Depth rating 3,400 m vertical depth (4 ½” drillstring)

3. Mast size Clear height: 75 ft (22.9 m) hydraulically raised/lowered stiff (r3) single slant capable (up to 45° off vertical) shl with 8 lines of 300,000 lb (133,500 dan)

4. Topdrive Moves in mast Torque (in low): 30,000 ft.lbs (4500 psi Δp) Max speed (in high): 105 rpm

5. Substructure Trailerized and integral with catwalk/pipearm Max floor height: 12’ 6” (on 6” matting) associated BOP clear height (vertical): 10’ associated BOP clear height (45°): 15’ 6”

6. BOP 5 station, 11 x 15 usg, 3,000 psi accumulator Typical BOP: erCB Class iv BOP

7. Mud tanks active volume (pad): transfer tank and 2 tanks 55 m3 each active volume (single): 1 tank 55 m3

8. Pumps 2 x 1000 hp mechanically driven triplex pumps Max speed: 130 spm Max working pressure: 5,000 psi

9. Generators 3 x Cat C18 engine w/ 440 kW 480v generator 1 x isuzu 4hK1 engine w/100 kW 208v generator umbilical for pad operations 10 suitcases x 38’ long

24

PrECIsIOn DrILLIngPAD-CAPAbLE sUPEr sIngLE

c a s e s t u d y 1

B Y D a r r E L L s t o n E H o U s E

h aving a complete set of while drilling data, including high-definition downhole imaging, reduces the risk of having borehole related failures when drilling complex

wells in complex geological settings.Baker hughes inTeQ’s starTrak logging while drilling (lWd) tool has proven its worth in lessening these risks by providing high-definition, real-time borehole images during drilling operations across north america, says gaetan gobeil, responsible for lWd business development for Baker hughes inTeQ in Calgary.“it’s the only tool in the industry that can clearly distinguish drilling induced and/or natural fractures during the actual drilling process,” gobeil explains.The starTrak lWd tool provides clear sedimentary and structural image logs. real-time monitoring of these images then enables drillers to better visualize issues revolving around wellbore integrity and wellbore placement.gobeil says the lWd tool, combined with other inTeQ technologies, has become a staple in the Barnett shale of Texas, helping drillers refine their geomechanical model while drilling the vertical and pinpoint the sweet spots in shale while drilling the horizontal. until recently, however, the one weakness of the tool is that it could only be used in wellbores greater than 8-½.”Baker hughes inTeQ just rectified this problem, “shrinking” the tool to function in smaller boreholes common for production in Canada. gobeil says a prototype of the new smaller tool has been successfully tested and commercial versions are available for the Western Canadian sedimentary Basin. he expects it to become a favoured instrument for horizontal wells where understanding the nature of your fracture system or gaining a better insight into

the complex geology is important such as in the foothills or in the burgeoning shale plays in northeastern British Columbia.The starTrak tool, combined with inTeQ’s answers While drilling Tool Kit, allows drillers to instantly see how rock is reacting to the drilling process. Wellbore integrity management is a focus, driven by directly identifying drilling-induced tensile fractures, breakouts, shear lane failures, and other drilling hazards like ledges. drillers can also build a series of time-lapsed images to track borehole degradation over time including the reaction of the wellbore to ongoing contact with stabilizers and other bottomhole assembly parts.

The lWd tool also provides the detailed information required for wellbore placement on the fly, ensuring the well intersects the pay zone in optimum position. visual information on the location and orientation of faults and fractures in the reservoir, without the need for running pipe-conveyed logging, is part of the value proposition.“This is important where fracturing is the main mechanism for production, like in foothills wells,” says gobeil. “it can be used to identify fractures and then subsequently characterize the fractures.”The lWd tool provides crucial information early in a field life cycle for future well planning.

rEDUcing Drilling riSkBaker hughes inTeQ’s starTrak lWd tool now downsized to provide high-definition images in western Canadian wells

“it ’s the only too l in the indus t r y that can

c lear ly d is t inguish dr i l l ing induced and/or natura l

f rac tures dur ing the ac tua l dr i l l ing process .”

— gaetan goBeil, Baker hughes inteQ


25

c a s e s t u d y 2


o il-based muds (OBM) are the technology of choice for ensuring wellbore stability in complex, challenging drilling environments.

When first introduced, crude oil and tar-like resins were used in OBMs. By adding organophillic clays and filtrate control agents, and by varying oil to water ratios, drilling fluid manufacturers gradually improved OBM performance. But the newer oil-based muds still have downsides, including difficulty withstanding water flows, tolerance to high solids buildup, costs associated with losses to fractures and porous rock, and a tendency to produce damaging emulsion blockage in reservoir formations.halliburton drilling fluid division Baroid’s new generation oil-based mud innOverT answers these concerns, says Baroid Canadian manager Brad ross. ross says innOverT is based on aCCOlade chemistry, originally developed for wells drilled in the gulf of Mexico.“it’s an oil-based system with no organophillic clays or solids additives needed,” he explains. “it was based on environmentally friendly offshore system which would not have been economic for western Canada.” Baroid’s Canadian division began working to adapt aCCOlade to the domestic drilling environment in 2006. after finding replacement additives to lower manufacturing costs without compromising the unique chemistry, they began testing the system in foothills wells in late 2007. since then, the product has found a home in the Montney tight gas play in northeast B.C. as of March 2009, innOverT has been used in 73 wells in western Canada, with almost 220,000 metres drilled.ross says innOverT has been delivering and exceeding the expected results to Canadian drillers. “The reason i’m proud of it is we adapted it here, and employed it here, with the support of Canadian operators.”“The biggest up front saving has been because of the product’s low maintenance,” he explains. “it’s removed a lot of product additions and this means less pallets and sack materials and drums at the wellsite, translating to less trucking. This may seem small on one well, but over an entire project during the drilling season it has an impact.”

ross adds the ease of maintaining and controlling innOverT makes life easier for rig hands.“The workers aren’t exposed to as much mixing, allowing them time to focus on other tasks,” he explains.The innOverT system operates on oil to water ratios as low as 70 to 30 compared with conventional OBM ratios of 90 to 10 or 95 to 5. last year’s skyrocketed oil prices presented an economic opportunity. ross says while some drillers expressed concerns the lower ratio would slow drilling operations, rates of penetration using innOverT were comparable to conventional OBMs.The lower environmental footprint and ease of use has driven Montney explorers to use innOverT, says ross. But it is also providing other downhole benefits. innOverT is designed to have very low formation invasion rates, meaning less damage to the formation. The new generation OBM also leaves less buildup behind in the wellbore, enabling better logging and imaging of wells.“it’s almost invisible,” says ross, “and that allows for better contact when imaging and logging.”

While the innOverT product is more expensive upfront, ross says it has 25 to 30 per cent less fluid loss than traditional OBMs. This, combined with better operating results, allows it to bring value when compared to traditional treatments.“On the mud bill and on overall operating costs innOverT has been cheaper, and that’s what’s allowed us to advance in the market,” he explains. “it’s an easier system, you have less product, you can get a high-quality wellbore, and retrieve good logs and data from it.”

BETTEr Drilling ThroUgh BETTEr chEMiSTrYBaroid’s Canadian team adapts innOverT oil-based drilling fluid for Canadian conditions

PPT exaMPle FilTer CaKe

Compare with a “good” 2/32 inch (1.6 mm) Filter Cake

“it ’s an o i l -ba sed sys tem with no

organophi l l i c c lays or so l ids addit ives needed.”

— Br ad ross, manager, Baroid canadian


26

c a s e s t u d y 3


D rilling sagd (steam assisted gravity drainage) wells into alberta’s oilsands can be a sticky situation.The tar-like bitumen targeted for production attaches

itself to drill pipe, directional drilling tools, mud shakers, and anything else it contacts, slowing and complicating drilling operations.Traditional drilling fluids have struggled to encapsulate bitumen to combat this accretion, along with often creating other challenges like mud-foaming that hinders mud pump operations.Q’Max solutions has come up with a new generation drilling fluid system called PolyTar to combat the unique challenges presented by drilling into the oilsands, while maintaining performance in more traditional drilling parameters such as borehole stability and rates of penetration. as an added bonus, PolyTar is easily recyclable and easily disposed of after use.PolyTar is a naturally occurring patented direct emulsion freshwater polymeric drilling fluid system, explains Q’Max’s Monty hans. “We started developing it in 2003 to answer issues faced in drilling by sagd wells.”in 2004, remedy energy services first used PolyTar in the field on sagd wells at Japan Canada Oil sands’ (JaCOs’) hangingstone operations. since then, remedy has drilled 24 wells at JaCOs using PolyTar.“We used it initially on an experimental basis. it was one of the new generations of drilling fluid systems coming out,” says remedy president Bob dyck. “The old systems were inadequate in their ability to encapsulate tar. PolyTar has proven much more efficient.”dyck adds that foaming hasn’t been an issue since the company began using the product.suncor energy has also been an early adapter, using PolyTar on over 100 sagd wells at its Firebag operations. suncor’s russell nibogie says the company was first attracted to PolyTar for its ability to deal with bitumen.“it suited our needs,” he explains. “One thing we noticed right away was it was very clean around the shakers and

above the mud tanks. With the previous system, everything was just coated.”Q’Max’s Monty hans says so far PolyTar has been used on 314 horizontal sagd wells, with horizontal legs as long as 1,100 metres. hans says aside from eliminating tar accretion and foaming problems, the drilling fluid system has also provided additional benefits to drillers. Most sagd well pads are drilled using the batch-drilling method where surface holes, intermediate sections, and horizontal legs of all producer wells are drilled in groups, followed up by the drilling of the injection wells in a similar fashion. Because solids are easily separated from the PolyTar, it can be re-used well after well in the batch drilling process.“Because it is a weak direct emulsion system, it is easily separated into its component phases for environmental disposal,” hans adds.The PolyTar system also has low-maintenance requirements at the drilling site. Workers can premix 20 cubic metres in around an hour, says hans. it has also been used successfully without mud coolers. he adds that the drilling fluid has good lubricity properties, which increases drilling performance.“its lubricity and ability to limit accretion means higher rates of penetration because there is less torque and drag,” he explains. “Because there is no accretion, a higher volume of solids can be processed at the shakers. We’ve also been getting fairly fast liner runs with minimal pull-down due to the lubricity and borehole stability.”hans says the next phase in the development of PolyTar will be adapting it for use in future infill drilling at sagd operations where high temperatures in steam chambers will be an issue. Q’Max has developed a version of PolyTar that is temperature stable at 100 to 110 degrees Celsius. it is a bridging system that alleviates lost circulation and formation damage.“The next step will be to achieve these objectives at even higher temperatures and pressures,” says hans.

clEAning UpQ’Max solutions PolyTar drilling fluid answers sagd drilling challenges


27

T oday’s drilling rigs feature built-in electronic nervous systems of sensors connecting with computers providing almost endless streams of data to rig crews and engineers

often far away at head office.drill bit positions are tracked in real time during operations. rates of penetration, weight on the bit, pump output rates, pipe joint numbers, and a variety of other drilling parameters are religiously monitored and recorded. Well histories are accumulated, and the data is ordered in and formatted in easily accessed reports.But leveraging this data continues to be a challenge, says dr. geir hareland, the CaOdC/nserC chair in drilling engineering at the university of Calgary’s schulich school of engineering. dr. hareland says what’s missing in the equation is a digital brain to interpret this data, compare it with existing knowledge, and come up with a plan to optimize drilling before and during operations.“hundreds of different companies have access to real time data, but there is no engineering done into it,” dr. hareland explains. “The systems only display the data that comes off the server.”The CaOdC/nserC chair is working to change this situation. With funding of $1.7 million provided by the Canadian association of Oilwell drilling Contractors (CaOdC), natural sciences and engineering research Council of Canada (nserC),

alberta energy research institute (aeri), and the university, hareland is in the fourth year of a five-year program aimed at developing an integrated real time drilling advisory system that engineers can use to compare data in developing and executing the most effective drilling plan possible.The development of the advisory system began with creating fundamental theoretical models for the various factors that impact drilling time and efficiency, says hareland. Models were constructed for parameters like rock mechanics, downhole pressures, hydraulics, torque and drag, hole cleaning, and wellbore stability. an under-balanced drilling simulator was also developed.“Our goal is to put all this in one big system that can run in real time that we can overlay with the actual data from wells and look at critically,” he explains.hareland points to the drill bit model as an example of the type of modules being developed. The goal of the drill bit module is to simulate the geology the bit will drill through. users can feed log data into the simulator and then try different bit designs to see which is most effective.“They can simulate different conditions to determine how they can get the most life out of bits, the lowest cost per foot,” he explains. “They can identify the right bit for the application.”

lEvErAgingbrainpowerCaOdC/nserC chair in drilling engineering focused on improving drilling decision making through better technology and an educated workforceB y D a r r e l l s t o n e h o u s e

28


David Finch is a Calgary historian and author of more than 20 books about the history of the Canadian West. He also writes a regular history column for the Calgary Herald.

Oilpatch readers will be interested in his story-filled accounts of the history of many aspects of the Canadian petroleum industry. He has written about geophysics, geology, the land business, Turner Valley, and is currently writing the story of Schlumberger in Canada.

Contact David Finch if your company, association, or agency wants to know more about its story and how its past can help it plan for the future.David Finch—Historian. 403–277–7448 or [email protected]

MAKE SENSE OF OILPATCH HISTORY

hareland is one of the pioneers in developing drilling simulation systems. during the 1980s, while working for amoco in Oklahoma, he helped develop one of the world’s first drilling simulators. in the 1990s, while working in norway, he developed the drilling Optimization simulator, or drOPs. The drOPs system resulted in a 10 to 25 per cent cost reduction in drilling north sea wells over an eight-year period. Calgary-based Pason systems has since purchased the commercial rights for the western hemisphere. The company has reported 20 to 30 per cent savings in the time it takes to drill wells using drOPs in the Western Canadian sedimentary Basin.hareland expects the new generation advisory system being developed at the university of Calgary could reduce drilling costs by 15 to 40 per cent. an alpha version of the system is ready for testing with Calgary-based nexen. “Our plan is to work with nexen to get access to wells using the Pason system to generate the data to run through our models,” he says.hareland says there are a number of private companies also working to develop similar software packages. The big difference is his effort has the time to make sure it covers all the bases in building its simulator. “The advantage to doing this at the university is we have the time to do it, so there is no need to do any shortcutting,” he explains. “We can take the time to make sure we get the theoretical work and the foundations right.”The CaOdC/nserC chair is also focused on developing the human brainpower to move the Canadian drilling industry forward. each year he teaches around 80 undergraduate engineering students, with the students getting a basic

understanding of the fundamentals of the drilling industry. hareland says interest in the drilling industry is strong.“i don’t have pure petroleum engineering students, but chemical and mechanical engineering students, but there is an enormous interest in the drilling industry,” he explains. “The students are so hungry and so many say this is what they want to do with their life.”Two years ago, hareland says 12 students expressed an interest in working in the drilling industry, with one getting a job. last year, 15 graduates said they were looking for a job in the industry.“We’re looking for a commitment from the drilling industry to these students,” he says. “i would like for industry to pick these guys up. We need an apparatus to hire students. if we’re going to put together a drilling program, industry has to hire the students.”hareland says to further develop the drilling engineering program, a greater industry commitment is also needed.“We need to get more involvement from industry, and one way would be to get volunteers to teach program courses,” he explains. “students understand the fundamentals but if they don’t get this kind of technical knowledge in drilling, industry will have to have people come in and train them when they hire them.”right now he says most of the drilling knowledge in western Canada is located in the old drilling superintendents out in the field. But these guys are aging, and won’t be around forever.“in 10 or 15 years, who is going to be out there?” he asks. “We need to start planning for these things now.”

Dr. gEir hArElAnD


29


n ot everyone believes in hell.But hell’s half acre was a real place.in the fall of 1924, drillers spudded a well just north of

the hamlet of Turner valley that would put Canada on the map.each day, the cable tool driller kept his hand on the hemp rope as it moved up and down in the well, feeling the bit gouge into the earth far below the surface.an initial discovery of gas in mid-October, 1924 proved that the dingman no. 1 and no. 2 wells were not just lucky. The Turner valley oilfield was going to be a success.a week later, all bets were off.“at noon, everyone went to the cookhouse, down by the plant, for dinner,” recalled Bert Flather, who was stacking casing at royalite no. 4 that day. “While we were eating, we heard an explosion.”“We all ran outside to look and the gas pressure had blown the tools and everything through the top of the derrick. We watched as a big silver cloud of gas moved across the field. When it reached the dalhousie boilers, it ignited. There was a big flash and no. 4 was on fire. it was just lucky that we were all at dinner, so no one was hurt.”don Coultis saw it too, that fateful sunday. From the bedroom of his home on a nearby hill, the nine-year-old boy watched as the runaway well made history.“i seen the ball of fire go from the stack on the boiler and go through the air and set the gas on fire,” don recalled. Minutes later, the wooden rig was in ashes.

don’s father, sam Coultis, was manager of the simple royalite gas plant beside the dingman no. 1 discovery well. it fell to him to figure out what to do with the runaway well, and the sour gas it had discovered.The wild well screamed for days. Then it caught fire and lit up the night sky. steam from seven huge boilers could not put it out. nothing seemed to be able to tame the giant.“snatching out” a fire hundreds of metres high was not a simple task. so they fought fire with fire.“nitro Charlie” stalnaker came up from Casper, Wyoming, where he worked for the international Torpedo Company. When he arrived at the Canadian border, customs officials and border guards just stood aside and waved the explosives man through, tall red flags flapping at each corner of his specially equipped truck.at the royalite no. 4 well, Charlie loaded dynamite into a canister and attached a long cable. everyone stood back. Charlie pulled the dangerous explosive towards the flare carefully, coordinating the timing of the burning fuse to ignite the dynamite right beside the towering inferno. as soon as the explosion robbed the spewing gas of its oxygen and snuffed out the fire, steam engineers opened the valves on their boilers and blanketed the area with wet steam to prevent a spark re-igniting the well.sam Coultis then diverted the gas from the blowout into a nearby creek, where it burned like….and that’s how hell’s half acre got its name.

A WilD WEllsnatching outb y D a v i d f i n c h — H i s t o r i a n

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30

For more information, contact (403) 292-7979

Akita Drilling Ltd.

900, 311-6 Avenue SWCalgary, Alberta T2P 3H2

T: 403 292 7979F: 403 292 7933

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Documents

2009 CADE * CAODC Drilling Conference Guide