| day 1 nifty at fifty new day, new...

Nifty at Fiftyn OTC’s chairman sees adaptability and experience as industry’s greatest enablers of future successes.

It was May 19, 1969, when the doors to Houston’s Al-bert Thomas Convention Center opened for the first

Offshore Technology Conference (OTC). Founded by 12 engineering and scientific organizations, the event was in response to the growing need for a forum where ocean industry professionals could discuss the develop-ment and application of new technologies in support of the burgeoning global offshore energy industry.

The significance of that event, much like the industry it represents, grew exponentially.

As the gates to OTC 2018 open at Houston’s NRG Park, conference organizers do so with the intent to honor the show’s past with an eye towards its future.

“This year marks the 50th edi-tion of OTC and we want attend-ees to walk away with a sense of the industry’s and of OTC’s legacy, of where we came from, of what we’re doing in the present and where we’re going in the future,” said OTC Chairman Wafik Beydoun.

In its 50 years, OTC has grown from one conference to four with

the addition of the Arctic Technology Conference, OTC Asia and OTC Brasil. With an attendance ex-ceeding more than 50,000 for more than a decade, the world’s largest offshore event attracted its largest crowd in 2014 with 108,300 visitors from more than 130 countries calling Houston home for the first week of May.

To help put the industry’s legacy in perspective it is best to think not in terms of years, but in Empire State buildings.

“Fifty years ago offshore E&P dealt with water depths that were neighboring 300 feet. That is about a quarter of the Empire State Building,” Beydoun said. “Today, offshore E&P operations deal with water depths close to 10,000 feet. That’s about seven Empire State buildings stacked on top of each other.”

It is, he added, a clear demonstration of how tech-nology innovations have made it possible for the in-dustry to seek and produce new resources deeper and farther away from the coast.

“In boldly going where no one has gone before, we really went far,” he said. “We have learned that these

BY JENNIFER PRESLEY

Perhaps it is coincidence that the first ever Off-shore Technology Conference kicked off in

1969, the same year that NASA’s Apollo 11 astro-nauts Neil Armstrong and Buzz Aldrin made his-tory as the first humans to land on the moon. But then again, maybe it’s not as getting to 11 didn’t happen overnight. It required hours, days, weeks, months and years of dedicated R&D for the two to take that historic stroll along the lunar surface.

The distance from Earth to the moon is about 384,400 km (238,855 miles) or as NASA puts it, “it means 30 Earth-sized planets could fit between Earth and the moon.” Calculating, config-uring and constructing the means of travelling that great of distance required significant brainpower. Lost in the minutia of history are the countless con-versations between scientists, engineers, technicians, clerks and more that made space travel possible through the sharing and disseminating of knowledge.

It was in the spirit of sharing and disseminating knowledge that the first OTC opened its doors to the more than 4,000 attendees on May 19, 1969. That spirit has advanced offshore E&P as it moves further from shore and into ever deeper waters. That spirit has buoyed up offshore E&P in those times when the global markets violently pitch to and fro due to the law of supply and demand kick-ing up a hurricane.

In good times and in bad, the annual OTC has remained steadfast in its mission to provide energy professionals a venue to meet for the exchange of ideas and opinions necessary to advance scientific and technical knowledge for offshore resources and environmental matters. Offshore E&P oper-ators, service companies and vendors embraced the lessons shared and the technology strategies demonstrated in previous OTCs to not just survive but emerge transformed from the rubble of 2014’s great storm of a market crash.

Industry has entered 2018 with a big jump in the number of project sanctions in 2017 but also a big drop in average project size and capex, ac-cording to a recent Wood Mackenzie analysis. Cost reduction efforts have been successful as project footprints have been reduced through fewer wells,

Updates, Digitalization Highlight Technical Program n Sessions to focus on cost-saving tools and techniques.

Along with the dazzling dis-plays of the industry’s lat-

est cutting-edge innovations in the exhibit halls and the special event networking, the depth and breadth of the Offshore Technol-ogy Conference (OTC) lies in its technical program.

The program’s focus has changed with the industry times, and the

2018 version is no different. The development of indus-try-wide digitalization and cost-saving tools and tech-niques have emerged as a focus this year as the offshore

industry moves into a new era, said Dave Barton, OTC program committee chairperson.

“We always talk about themes we want to include in the program, and this year we talked about cost aware-ness,” Barton said. “The industry is improving, but get-ting a handle on the cost of projects is still a big deal, and so we hope to show how some of the emerging technolo-gies are going to be able to help reduce costs and improve overall value.”

To that end, a session scheduled for 9:30 a.m. Mon-day titled “How to Make Offshore Oil and Gas Projects Feasible in a USD 45-50 per Barrel Environment” will

New Day, New Wayn Knowledge sharing is 'one giant leap' for offshore oil and gas in 2018.

See FIFTYcontinued on page 26

See TECH continued on page 26

Wafik Beydoun

BY BRIAN WALZEL

Dave Barton

BY JENNIFER PRESLEY

| THE OFFICIAL 2018 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER | DAY 1

Monday, April 30 | Houston, Texas | go.otcnet.org/showdaily

See NEW DAY continued on page 26

E&P Editors

Group Managing Editor, Print MediaJo Ann Davy

Executive EditorJennifer Presley

Chief Technical Director,Upstream

Richard Mason

Associate Editor, ProductionBrian Walzel

Associate Managing EditorAriana Hurtado

Assistant EditorAlexa West

Group Managing Editor, Digital News Group

Len Vermillion

Senior Editor, Digital News GroupVelda Addison

Contributing EditorsLeslie CookImran Khan

Randall LuthiJennifer Pallanich

Michelle ThompsonPeter Zornio

Corporate Art Director Alexa Sanders

Oil and Gas Investor, Art DirectorRobert D. Avila

Senior Graphic DesignerFelicia Hammons

Video ProductionGenaro Cibrian Jessica Morales

Production Manager Sharon Cochran

Senior Vice President, MediaRussell Laas

HART ENERGY LLLP

Vice President, Editorial DirectorPeggy Williams

Chief Financial OfficerChrist Arndt

Chief Executive OfficerRichard A. Eichler

The OTC 2018 Daily is produced for OTC 2018. The publication is edited by the staff of Hart Energy. Opinions ex-pressed herein do not necessarily reflect the opinions of Hart Energy or

its affiliates.

Hart Energy1616 S. Voss, Suite 1000

Houston, Texas 77057713-260-6400

main fax: 713-840-8585

Copyright © May 2018 Hart Energy Publishing LLLP

All events in conjunction with OTC 2018 will be held at NRG Park in Houston, Texas, unless noted otherwise.

Monday, April 30 7 a.m. to 5 p.m. ........................................Registration7:30 a.m. to 9 a.m. ...................................Topical Breakfasts9 a.m. to 5 p.m. ........................................University R&D Showcase9 a.m. to 5:30 p.m. ...................................Exhibition9:30 a.m. to 12 p.m. .................................Technical Sessions9:30 a.m. to 11:30 a.m. .............................OTC 50th Opening Ceremony in NRG Stadium11:30 a.m. ...............................................Official Ribbon Pulling Ceremony 12:15 p.m. to 1:45 p.m. ............................Topical Luncheons12:15 p.m. to 1:45 p.m. ............................OTC 50th Legacy Luncheon2 p.m. to 5 p.m. ........................................Rice Alliance Startup Roundup2 p.m. to 4:30 p.m. ...................................Technical Sessions2:30 p.m. to 5 p.m. ...................................Chairman’s Panel on Energy Transformation4 p.m. to 5 p.m. ........................................Spotlight on New Technology Presentation4 p.m. to 6 p.m. ........................................Networking Event5:30 p.m. to 8 p.m. ...................................OTC 50th Celebration —Party on the Parkway

Tuesday, May 1 7:30 a.m. to 5 p.m. ...................................Registration7:30 a.m. to 9 a.m. ...................................Topical/Industry Breakfasts9 a.m. to 3:30 p.m. ................................... Poster Sessions9 a.m. to 5 p.m. ........................................University R&D Showcase9 a.m. to 5:30 p.m. ...................................Exhibition9:30 a.m. to 12 p.m. .................................Technical Sessions12 p.m. to 2 p.m. ......................................Distinguished Achievement Awards Luncheon12:15 p.m. to 1:45 p.m. ............................Topical Luncheons2 p.m. to 4:30 p.m. ...................................Technical Sessions4 p.m. to 6 p.m. ........................................Networking Event7:05 p.m. .................................................OTC Night at the Ballpark (at Minute Maid Park)

Wednesday, May 2 7:30 a.m. to 5 p.m. ...................................Registration7:30 a.m. to 9 a.m. ...................................Topical/Industry/Ethics Breakfasts8 a.m. to 11 a.m. ......................................OTC Energy Challenge High School Event9 a.m. to 3:30 p.m. ................................... Poster Sessions9 a.m. to 5 p.m. ........................................University R&D Showcase9 a.m. to 5:30 p.m. ...................................Exhibition9:30 a.m. to 12 p.m. .................................Technical Sessions12 p.m to 6 p.m.. ......................................The Next Wave Program12:15 p.m. to 1:45 p.m. ............................Topical Luncheons12:15 p.m. to 6 p.m. .................................WISE Networking Event2 p.m. to 4:30 p.m. ...................................Technical Sessions

Thursday, May 3 7:30 a.m. to 2 p.m. ...................................Registration7:30 a.m. to 9 a.m. ...................................Topical/Industry Breakfasts7:30 a.m. to 3 p.m. ...................................Energy Education Institute: Teacher Workshop8:30 a.m. to 1:30 p.m. ..............................Energy Education Institute: Student 2STEM Event 9 a.m. to 2 p.m. ........................................Exhibition9 a.m. to 2 p.m. ........................................University R&D Showcase9:30 a.m. to 12 p.m. .................................Technical Sessions12:15 p.m. to 1:45 p.m. ............................Topical Luncheons2 p.m. to 4:30 p.m. ...................................Technical Sessions

3OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

SCHEDULEOF EVENTS

Brian Skeels is an innovator, industry pioneer and this

year’s recipient of OTC’s Distin-guished Achievement Award for Individuals.

The award recognizes his ex-traordinary accomplishments in pioneering new subsea comple-tions in record depths. It also ac-knowledges his work developing

new tieback connections that have set and redefined industry standards.

It’s an award Skeels accepts with humility.

“Being honored like this is quite a treat,” he said. “I have to pinch myself when I see the list of the 47 recipients that have preceded me and all the great work they’ve done throughout the course of their careers. To be mentioned in that same group is a very heavy honor.”

Skeels’ impressive resume includes more than 35 years of experience in subsea completion and pipeline design and installation. He spent five years working on Exxon’s famous submerged production system and underwater manifold center, before joining FMC Technologies in late 1984.

Skeels is a contributing author to nearly 40 industry- related technical papers and articles, and he is an innova-tor who holds 14 U.S. patents for the oil and gas industry.

Skeels, TechnipFMC’s Technology Fellow, serves as a technical subsea adviser for HP/HT wells. In addi-

tion, he’s a strategic planning specialist for frontier technologies and new business op-portunities. This includes deepwater riser-less light well intervention, ROV and remote robotics technology, and hydrate remedia-tion programs.

His long and impressive track record of being an innovative industry leader was not overlooked by OTC’s 2018 Awards Com-mittee. “Brian is being recognized for both his recent and career-long contributions to the industry,” said Committee Chairman Chuck Richards. “He has had extraordi-nary accomplishments in pioneering new subsea completions in record water depths and for the development of new tieback connections that have set and redefined in-dustry standards.”

Indeed, Skeels pioneered designs in sub-sea completions that held world record water depths from 1986 through 2010, and he established the first 10K-psi and 15K-psi subsea completions in the Gulf of Mexico.

Throughout his decades-long career, Skeels has witnessed the subsea engineering industry undergo a significant transforma-tion through robotics, artificial intelligence and other groundbreaking technologies.

But when he was a young lad entering the field, things weren’t so sophisticated.

“We were sent offshore and you had your wits and your calculator to work yourself out of a problem,” he said. “You were kind of out there on your own. These days, ev-erything has to be well-documented and well-choreographed before anything hap-pens and rightfully so, because a lot has changed since the beginning.”

Today Skeels strives to share his knowl-edge by teaching at the University of Hous-ton’s Cullen College of Engineering. Skeels also serves as an instructor for both company and invited external company learning pro-grams. He advises industry rookies to read Colin Powell’s “My American Journey” and “The Unwritten Laws of Engineering” by W. J. King and James G. Skakoon.

“Those two books would be a great start,” Skeels said. “They go from the academic world to the real world, and what’s going to be expected of them. It’s mostly common sense do's and don’ts that we all too often forget.”

Like many other engineers, Skeels loves a good challenge and seeing projects through to completion. “For me, there’s no bet-ter challenge than having the ability to be faced with a problem that nobody else has done before,” he said. “I like to tinker and play with the design until it’s ready to rock and roll. Getting out in the field and seeing it work is the greatest satisfaction. There’s nothing better—any engineer worth his salt will tell you that.” n

OTC Recognizes Skeels’ Extraordinary Subsea Workn He pioneered record-breaking subsea completions and holds 14 U.S. industry patents.

BY MICHELLE THOMPSON

Brian Skeels

Distinguished Achievement Awards Luncheon The Distinguished Achievement Awards Luncheon on Tues-day, May 1, will celebrate the accomplishments of the 2018 OTC Distinguished Achievement Award recipients who are featured in the following pages. The luncheon also facili-tates fundraising for a worthy cause—this year The Young Women's College Preparatory Academy—and provides an international networking opportunity for attendees.

4 PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

An engineer with nearly 40 years of widely recognized industry experience is the recipient of this year’s

OTC Heritage Award. Cesar Del Vecchio–an expert in the integrity management of mooring systems–is being recognized for developing safe and economic deepwater mooring systems.

“It was a big honor to receive this award,” said Del Vecchio, who is originally from Brazil. “And it is even more important that people working outside the U.S. get considered and receive such a distinction. I also consider it as recognition of the company that I worked

in, Petrobras–it’s more than a personal recognition.”

The Heritage Award is granted by the OTC Awards Committee to recognize long-term, contin-uous distinguished service by an industry professional. The rec-ognition is given in the follow-ing areas of offshore technology: exploration, development and production, management and

leadership, safety and environmental stewardship, and research and development.

This year’s recipient earned the award with good reason, said OTC 2018 Awards Committee Chairman Chuck Richards.

“Cesar Del Vecchio made substantial contributions to the safe and economic development of deepwater floating systems by establishing, proving and gaining worldwide acceptance for the use of polyester mooring systems,” Richards said. “His initial research in replacing all steel cat-enary systems with synthetic taut moorings is considered a breakthrough for floating production system technology by extending the range of moored floaters into deep and ultradeep water, while reducing seabed footprint.”

Del Vecchio’s full-life-cycle approach to design systems impressed Richards.

“Some of these systems have now been in service for more than 20 years,” he said. “He continues to use his widely recognized experience with the integrity management of mooring systems for a variety of clients.”

Polyester mooring systems replaced all steel systems in most production units in-stalled in water depths greater than 600 m (1,968 ft) and basically all systems installed in more than 1,000 m (3,280 ft) of water.

“As we moved into deeper water, we realized the weight of the mooring sys-tem would be too big and it would be too much for the floaters with little efficiency,” Del Vecchio explained. “Also, the amount of mooring system that would be lying on the seabed would be a big problem for the wellheads, flowlines and everything else we would want to put on the seabed.”

The polyester mooring systems were the culmination of about 10 years of hard work by Del Vecchio and his colleagues. When he started working on the project in 1986, there were just a few others assigned to the project. But by the time the first full poly-ester mooring system was installed in 1997, the team had swelled to approximately 40 people and was spread across several groups within the company.

“It was basically 10 years of investment,” Del Vecchio said. “I think one of the big-gest rewards for someone working in R&D is when you work for a long time on some-thing and it gets used… It took an effort but we got everybody on board and man-agement support was key to make such a big change.”

Today, Del Vecchio works as a senior con-sultant at Stress Engineering Services. He consults on mooring systems, fiber ropes, mooring materials, fatigue and structural integrity assessment. He previously worked as a senior consultant for Petrobras.

Ingenuity has been the driving force be-hind many of his accomplishments.

“It’s being able to develop things, under-stand how things work, make changes and keep things working,” he said. “All those things motivate a professional engineer. Keeping things operating safely and profit-ably is a big challenge, and is very rewarding.”

He is a graduate of the Instituto Militar de Engenharia, where he received a Bachelor of Science degree in mechanical engineering. He holds a Ph.D. in engineering from the University of Reading.

As the next batch of graduates prepares to enter the engineering field, Del Vec-chio offers some advice on how they can find success.

“Keep a good balance between what you’ve studied and what you can learn from experi-ence and experienced people,” he said. “Fol-low the things you’re happy to work with.” n

Del Vecchio Recognized for Mooring System Breakthroughs n Award-winner made vital contributions to the safe and economic development of deepwater floating systems.



Cesar Del Vecchio

8

Bringing the world’s deepest oil and gas project on-line required innovation and new technologies.

Shell’s Stones Field, which is in 9,500 ft water depth in the Gulf of Mexico, produces to the Turritella FPSO.

“The water depth that we’re working in is an ex-traordinary achievement. This is an industry that first moved offshore probably only really 40 years ago, so in just a few decades we’ve gone from literally putting our toes into the water to producing from 10,000 feet of water depth,” said Ian Silk, Shell’s vice president for deepwater projects at the time Stones went online and

current vice president of COG projects. “It’s totally amazing.”

Shell and SBM Offshore are receiving this year’s OTC Distinguished Achievement Award for Companies, Organizations and Institutions for the project, which uses an industry-first pairing of a steel lazy wave riser system with the largest disconnectable buoy turret mooring system, and an artificial lift system designed for 15,000 psi.

“The decision to select the Shell Stones project was based primarily on its innovative use of a steel lazy wave riser system with a large disconnectable buoy turret mooring system,” said OTC 2018 Awards Committee

Chairman Chuck Richards. “This allows the FPSO to sail to safety in the event of extreme weather. Additionally, the ex-emplary safety record of successfully in-stalling and operating in 9,500 foot water depth is in itself a laudable achievement.”

The steel lazy wave riser, pioneered by Shell, carries oil and gas from the well to the FPSO. Steel lazy wave risers have an arched bend in the pipes between the seafloor and the surface to decouple the motion of the FPSO, which improves riser performance while boosting production levels at extreme depths.

A key feature of the Turritella FPSO is the disconnectable buoy turret mooring system.

“Most of the time FPSOs transit to site, take off their rudder, take off their pro-peller, they don’t need it anymore. Not us. What we need to do is we need to be able to disconnect and travel around to get away from hurricanes,” said Blake Moore, Shell’s former Stones FPSO manager.

The turret and buoy design allows the vessel to turn with the wind during nor-mal weather conditions, but if a heavy storm or hurricane approaches, the vessel can disconnect from the buoy and sail to safer waters.

“There was a lot of innovation in the tur-ret configuration. It was a major engineer-ing exercise to fully develop the design,” says Andrew Newport, SBM Offshore’s technology director for mooring systems, risers and renewables.

Shell discovered the Stones Field in 2005, sanctioned the project in 2013 and reached first oil in 2016. In January 2018, Shell took over full operatorship of the Stones FPSO from SBM Offshore.

On announcing the project’s sanction, Shell said Stones contained more than an estimated 2 Bboe of oil in place. The Lower Paleogene reservoir is about 26,500 ft below sea level, and17,000 ft below the mud line.

Annual peak production is 50,000 boe/d from more than 250 MMboe of recover-able resources. A multiphase system to pump oil and gas from the seabed to the FPSO is expected to increase recoverable volumes and production rates.

Shell said the project demonstrates its commitment to realizing significant cost savings through innovation. The Stones well design requires fewer materials and lowers installation costs. Shell estimates the change will reduce well costs by up to $1 billion once all the producers are completed. n

Shell, SBM Snag OTC Distinguished Achievement Award for Stonesn World’s deepest field began producing three years after FID.

BY JENNIFER PALLANICH

The Turritella FPSO is producing Shell’s Stones Field in 9,500 ft water depth. First oil was 2016. (Image courtesy of SBM Offshore)

PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

10

Tom Sifferman is a licensed professional engineer with more than 45 years of experience working in the petro-

leum industry. Throughout his career, Sifferman has made significant contributions to the field for which he is being celebrated by OTC this year with a special citation.

OTC’s special citation award recognizes individuals or organizations in the offshore technology field. Siffer-man is being honored for his work in the advancement of production enhancement, complex rheology mitigation and chemical flow assurance of difficult-to-handle reser-voir fluids.

But if you ask him, his accomplishments were a team effort.

“It was really an award I got not because of me but because I worked with other people,” Siffer-man said. “I worked on different projects with different people in different areas all the time.”

Though Sifferman is humble about his accomplishments, others aren’t so modest when it comes to praising his work.

Chuck Richards, chair of OTC’s 2018 awards commit-tee, said Sifferman has blazed an impressive trail for the next wave of engineers to follow.

“Dr. Sifferman’s lifetime of service to the offshore in-dustry and his profession is outstanding,” Richards said.

“His personal attributes of carefully listening to others opinions, his excellent leadership style and his willing-ness to share information through venues such as OTC should be a model for the next generation of engineers.”

Sifferman has accomplished a lot since receiving his Ph.D. in engineering from Purdue University in 1970. He has held numerous responsibilities in drilling, com-pletions and production. He is a Society of Petroleum Engineers Distinguished Member and a fellow with the American Society of Mechanical Engineers. He holds 17 issued U.S. patents and has served as chair and organizer of flow assurance sessions for OTC since 2006.

In addition, Sifferman has authored 30 professional publications, including 11 on drilling, four on forma-tion damage and three on the rheology of waxy crude

oils. Other topics have included drag re-duction, multiphase flow, flares and hy-drate inhibition. He also has written about heavy crudes, fracture fluid rheology, flow measurements, noise prediction as well as rock properties.

“In my career I’ve enjoyed doing new and different things because I learn new things,” Sifferman said. “It’s said that persistence is more important than brilliance. You need to stick with something to do it. Even if it seems impossible, you should still try. I’m not the most brilliant person in the world, but I have a lot of perseverance.”

Sifferman developed an interest in engi-neering as a child. He used to love tinker-ing with electronics in the family basement, and he once even removed the wheels from his sister’s roller skates and used them to make a race car.

Though he started off as an electrical en-gineer, Sifferman soon switched over to me-chanical engineering. Today he’s a consultant and fluids specialist with ETTP Consulting, focusing primarily on production. He also has helped the Department of Energy’s Na-tional Energy Technology Laboratory with information on drilling fluid testing proce-dures, equipment and safety issues.

Sifferman began his career in 1970 with an 11-year run as a senior research scien-tist with Conoco. He went on to work for several other energy companies, including Exxon Mobil Corp.

The 76-year-old said he has no plans to retire. “Why should I do that?” he said. “I enjoy what I do. It’s my hobby. I tell people to enjoy what they’re doing. Don’t look for the bucks. Look for the fun.”

Before earning his Ph.D., Sifferman graduated from Marquette University with a bachelor’s degree in mechanical engineer-ing. He holds a master’s degree in mechan-ical engineering from Purdue University and has a certificate in entrepreneurial management from San Diego University.

Sifferman, who lives in Dallas, is an Eagle Scout with the Boy Scouts of America. n

OTC Honors Sifferman’s Long-time Service n He’s being recognized for outstanding work in the offshore field.


Tom Sifferman


Celebrate #OTC50 with us!

Offshore Technology Conference (OTC)

Offshore Technology Conference

@OTCHouston

@OTCevents

OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW 11

1212

Increased reliance on remote monitoring and ad-vances in digital technology have launched a new

era for well construction, bridging the gap between planning and execution through better use of data and collaboration. The OptiWell well construction perfor-mance service gives operators access to all available surface, downhole and logging information, with mul-tidisciplinary experts providing 24/7 monitoring and analysis of operations, processes and well conditions in real time.

The service identifies inefficiencies and proposes new workflows and procedures that challenge the technical limits of rates of penetration (ROP) and other parame-ters to increase performance and reduce risk. The Opti-Well service is currently deployed for multiple onshore and offshore wells globally. Service centers in Houston and Norway remotely monitor and analyze global oper-ations for multiple disciplines, including drilling, mud logging and geomechanics, providing the ability to apply only those workflows needed for a specific well.

The performance management component of the service benchmarks all well construction operations

and compares them to industry key per-formance indicators (KPIs), generating data that can be used to improve the well construction process. By targeting specific KPIs, operators can implement the service for a specific project or general efficiency improvement, focusing on specific areas of operation that are not meeting objectives. Workflows also can be adapted for a sin-gle-well exploration campaign or a mul-tirig, multiwell field development project.

The service integrates other well mon-itoring and analysis services to im-prove hole cleaning, reduce wellbore risk and ensure drillstring integrity. For example, the RigHour multiwell drill-ing operational efficiency analysis com-putes and compares drilling-specific KPIs to improve drilling efficiency and re-duce costs. The analysis reduces invisible lost time (ILT) time, or the time between actual and technically achievable duration, in making connections, circulating, trip-ping, cementing, setting casing and run-ning the blowout preventer.

The hazard management component fur-ther reduces nonproductive time and HSE issues by monitoring and analyzing the downhole environment to detect potential risks to drilling operations, such as severe gains or losses that could cause a kick, stuck pipe or high vibration zones that could compromise borehole and bottomhole as-sembly (BHA) integrity.

Boosting performance offshore NorwayNorwegian operator Det Norske success-fully used the OptiWell service to improve operational efficiency and drilling perfor-mance during a casing and completion run in the offshore multiwell Ivar Aasen development field. The project involved performing single-well monitoring focus-ing on new well construction KPIs. The initial wells were drilled in three sections by a jackup from predrilled top holes.

After establishing benchmarks for each KPI, OptiWell provided 24/7 monitoring for about one month, while the Schlumberger well operations analyst notified the operator whenever rig performance deviated from plan. The service was deployed in conjunc-tion with the InterACT global connectiv-ity, collaboration and information service, which displays real-time KPIs. This enabled

Well Construction Performance Service Harnesses Digital Advances n From 24/7 monitoring for downhole hazards to identifying inefficiencies, new service mitigates HSE risks and both ILT and NPT.

CONTRIBUTED BY SCHLUMBERGER

Real-time continuous well monitoring ser-vices enabled Det Norske to improve ROP and reduce issues related to undesirable tripping performance. (Photo courtesy of Schlumberger)

See ADVANCES continued on page 26


13

Saudi Aramco sees its commitment to technology and innovation as the engine of growth for the com-

pany and the global energy industry. With a worldwide network of research centers, technologies developed by Saudi Aramco’s scientists and engineers are currently deployed or in field trials in Saudi Arabia. Seventy per-cent of the company’s U.S.-based research focuses on upstream resources.

“Business challenges are at the forefront of our scien-tists’ creative minds,” says Ashraf AlTahni, director of research at Aramco Services Co. (ASC), Saudi Aramco’s U.S. subsidiary. “Their solutions are spurring future Ar-amco innovation and technology.”

ASC’s three U.S. research centers–located in Houston, Boston and De-troit–focus on different aspects of the energy industry. The Aramco Research Center–Houston is concerned with re-search into upstream activities while the Boston center concentrates on nanotech-nology and the use of new materials. The Detroit center emphasizes engine and fuel technology.

Focus on discovery, recovery and sustainabilityAramco is developing technology to un-lock greater discovery, recovery and use of energy resources. The Houston center’s new discoveries range across a variety of disciplines:

Novel emulsifiers for high-tempera-ture oil-based mud applications: In the area of drilling, Aramco research has been instrumental in the creation and development of novel emulsifiers and fluid systems able to function in extreme conditions.

Novel seawater-based, high-temperature fracturing fluids: The research team also successfully formulated a novel high- temperature fracturing fluid system using untreated seawater. The technology will help avoid the use of huge amounts of fresh water or treated seawater for frac-turing jobs.

Coated Saudi sand for gas wells frac-turing: Another research milestone was achieved by using Saudi sand as a prop-pant and optimizing the coating process of the sand using resin.

Successful Sensor Ball Well Test: A new tool, called a sensor ball, was de-veloped by researchers and successfully

tested at a well in Texas. The sensor ball can acquire a range of downhole data including fluid density, viscos-ity and fluorescence.

Saudi Aramco and ASC representatives will be pre-senting a variety of research papers during the confer-ence. Topics will include material advances, cost effective chemical solutions for sustainable production and nano-technology innovations for offshore drilling. Check the OTC Technical Program for specific times and dates.

Looking to the future Besides investing in new technologies, Saudi Aramco and ASC are focused on the future with collaborative efforts at leading educational and governmental insti-tutions worldwide. Collaborative partners include the

Massachusetts Institute of Technology (MIT); Har-vard University; Texas A&M University; the University of Wyoming; the University of California at Berkeley; Argonne National Laboratory; the King Abdullah Uni-versity of Science and Technology and King Fahd Uni-versity of Petroleum and Minerals, both in Saudi Arabia; the University of Calgary in Canada; and Heriot-Watt University in the U.K.

Saudi Aramco is looking for experienced professionals who are interested in contributing to its world-class op-erations. Recruiters for positions at both Saudi Aramco and ASC will be on site throughout OTC to accept re-sumes. Potential job seekers are encouraged to visit ar-amco.jobs to check out available positions.

Visit Saudi Aramco at booth 2627 to learn more. n

Discoveries in Research and Developmentn Aramco advances meet industry challenges.

CONTRIBUTED BY SAUDI ARAMCO

Engineer Erjola Buzi of the Aramco Research Center—Houston tests the fourth genera-tion of the untethered sensor ball in the lab. (Photo courtesy of Saudi Aramco)

OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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The industry often focuses on how to drill or complete a well in less time, but there is more to it than just that. It

is important to step back and look at the overall concept of time. We need to look at how efficient we are in using the time that we have, because one can argue that the amount of time that is wasted on nonproductiveness is equally or even more costly to companies than how fast or slow they can drill or complete a well.

National Oilwell Varco (NOV) has been looking at the overall concept of time and has recognized several key things. It’s about time that someone connects surface to downhole. It’s about time that we allow our customers to treat the drilling and production process as a whole system

instead of individual parts. It’s about time that we start push-ing for new ways of thinking within our industry.

NOV is pushing for this cultural change and working with others to join it. NOVOS is one example of how the com-pany is working with third-party companies to change the way things are normally done. NOVOS is the industry’s only reflexive drilling system, automating repetitive drilling activ-ities, benefiting contractors by allowing drillers to focus on consistent process execution and safety, and benefiting oper-ators by optimizing drilling programs. Third-party compa-nies are given a software development kit that enables them to develop their own applications that can be placed onto the system and tailored for their drilling program.

There are also ways to improve efficiency and perfor-mance in drilling applications that help overall time. The

Agitator HE is a new high-energy system that provides more efficient energy usage to enable greater friction reduction in long laterals. The use of high-energy axial oscillations to keep the drillstring moving yields high ROP over longer distances, enhances toolface control and reduces stick/slip in all drilling modes.

NOV also is launching its SelectShift down-hole adjustable motor, which offers downhole adjustment of the motor bend setting while drilling. This motor saves time by eliminating trips to adjust bend settings, offering better hole quality and increasing ROP through-out lateral sections. The company’s Tektonic drillbit has helped customers by providing superior hydraulic designs and cutter tech-nology that boosts efficient uptime.

When it comes to drillpipe, NOV’s Delta connection saves time by providing its cus-tomers with 50% fewer turns to make up and a 66% reduction in the number of re-cuts made. The company also has AutoTally, which produces a 100% accurate drillstring tally, alerts for out-of-specification equip-ment and quarantines assets preventing missed depths, stuckpipe or twist-offs. When it comes to maximizing tubular performance and reducing downtime, proper inspection and maintenance is critical. TracID’s Lifecycle Management program and TruData’s com-prehensive reporting management system re-duce total cost of ownership and mitigate risk by identifying operational problems, trends and improper care and handling. Identifying these issues is critical to reducing downtime and improving drilling efficiency and perfor-mance.

When focusing on uptime, NOV has seen how its APL buoys at Heidrun operated for 20 years with 99.8% uptime, which included almost 1,300 connections and 1,300 discon-nections. The mitigation of downtime also is key within the industry. Fiber Glass Sys-tems Bondstrand piping, composite pressure vessels and fiberglass-reinforced polymer structures help eliminate downtime due to degradation because they are completely corrosion-free. NOV has helped minimize costly ROV-related downtime with the use of flexible pipes that have real-time temperature measurements to help pinpoint areas in need of attention to within 1 m (3.28 ft). The com-pany also has heated flexible pipes that elim-inate wax and hydrate blockage, which helps customers decrease downtime by allowing for smooth flow regardless of how long produc-tion may have been shut down.

These are just a few ways that NOV is fo-cusing on how it can help its customers by looking at overall time savings and not just how fast or slowly they can drill or complete a well.

Visit NOV at booth 2839. n

It’s About Time n Company focuses on saving operators time with new technologies.

CONTRIBUTED BY NATIONAL OILWELL VARCO

It’s time for companies to start pushing for new ways of thinking within the industry. (Photo courtesy of National Oilwell Varco)


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Staffing has been a perennial challenge in the oil and gas industry. Expertise is always at a premium, but even

more so in “4-D” operating environments where the work is dangerous, dirty, distant and dull, like a gas field in northern Siberia or a production platform off the Alaskan coast. In today’s new reality of lower-for-longer oil prices, and with the industry’s most experienced workers retiring by the thousands every year, the pressure is on companies large and small to do even more with less.

To tackle this problem, top-quartile per-formers are turning to advances in wireless sensing, secure cloud computing and Indus-trial IoT (IIoT) technology to bring the data to the experts, rather than the other way around. These solutions have the potential to let oil and gas businesses stretch their human resources further than ever before, making multisite operations possible while enhancing safety, efficiency and reliability at the enterprise level.

Over the past two decades as wireless technology has become more reliable and less expensive, operators have gained better insight into the health of assets in the field. Being able to measure and analyze equip-ment performance and predict failures in real time has changed the way companies conduct maintenance on site, but it has also generated a wealth of data that can be man-aged remotely.

Improved data distributionIIoT solutions allow this data to be dis-tributed to centralized operations centers where a company’s in-house engineers can implement strategies for improving effi-ciency and safety across multiple facilities. Powerful cloud networking and cloud-based analytical tools now allow virtual teams of experts on opposite sides of the globe to collaborate and make recommen-dations in real time.

With these breakthroughs, a new oper-ating model has emerged. Some operators have begun outsourcing expertise to third-party providers who monitor and analyze data from the field as part of a “connected service.” This model allows producers to reduce their capital and management costs while tapping specific domain expertise in

critical areas like pumps, compressors, heat exchangers, gas turbines and control valves.

Whether this connected service model will become the industry standard in the future depends on a couple of factors, not the least of which is security. First, remote

sensors must be safeguarded in the field, which is no small matter. Securely exporting operational technology data from “first mile” networks on the ground into the

BY PETER ZORNIO, EMERSON AUTOMATION SOLUTIONS

Optimizing Production Using IIoT Innovationsn Wireless technologies and cloud computing enhance the oil and gas industry’s human resources.

By connecting data to the experts, oil and gas operations today can unlock the value of the Industrial IoT to securely and efficiently man-age multiple facilities using cloud networking and software analytics solutions. (Photo cour-tesy of Emerson Automation Solutions)

See OPTIMIZING continued on page 26


Each year OTC recognizes companies for their in-novative work in developing new products and

technologies in exploration and production through its Spotlight on New Technology Awards. The awards program is designed exclusively for OTC exhibitors.

“As OTC celebrates its 50th edition, we reflect on the innovations that have been achieved throughout the past five decades,” said Spotlight Award Commit-tee Chair Paul Jones in an OTC press release. “We can never forget that companies like the 2018 Spotlight Award winners are driving the technological advance-ments necessary to propel our industry for the next 50 years.”

Nominations were open to all exhibitors, and each nomination was evaluated by specialists drawn from the OTC board of directors as well as the program com-mittee. The criteria used to select the winning technol-ogies include the following:

• New and innovative: The technology must be less than two years old, original, groundbreaking and capable of having a major impact;

• Proven: The technology must be proven either through full-scale application or successful proto-type testing;

• Broad interest: The technology must have broad appeal for the industry; and

• Significant impact: The technology must provide significant benefits beyond existing technologies.

In addition, OTC recognized two companies with its Small Business Award: CoreAll and Luoyang Wire Rope Inspection Technology Co. Ltd.

The awards are scheduled to be presented at 4 p.m. on Monday, April 30, in the NRG Center, Level 1, Lobby B Rotunda.

Aegion Coating Services has been recognized for the ACS HT-200, an ultrahigh-temperature subsea wet insulation system for pipelines, risers, field joints and subsea equipment with operating temperatures up to 204 C (400 F). This end-to-end deepwater solution comprises an anticorrosion coating covered with an in-sulation layer and topped with a tough polypropylene exterior. For more information on ACS HT-200, visit Aegion Corp. at booth 1263.

Ampelmann has received an award for its N-type technology. As the only motion-compensated gang-way system of its kind in operation, the N-type “Ice-mann” enables the safe transfer of people year-round in harsh winter conditions up to -28 C (18 F). The fully enclosed and insulated system is operational in sea states up to 3.5 m (11.5 ft) significant wave height and

certified under the winterization design code DNV-GL-OS-A201. Ampelmann created the Icemann in response to growing demand for effective and safe per-sonnel transfer equipment in frontier regions such as sub-Arctic, Norway and Canada. The system can rotate to 360 degrees and is controlled from the vessel with flexibility in platform landing locations and directions. For more information on N-type technology, visit Am-pelmann at booth 1425.

Baker Hughes, a GE company (BHGE) has been recognized for its TerrAdapt adaptive drillbit. Unlike conventional bits that are limited to a single depth-of-cut (DOC) control setting, the BHGE TerrAdapt drillbit autonomously adjusts DOC to mitigate stick/slip and expand the smooth drilling window with no surface interaction. Revolutionary adaptive DOC-con-trol elements automatically adjust the bit’s aggressive-ness based on the formation it is drilling. TerrAdapt also absorbs shocks and helps prevent damage to the bit and bottomhole assembly. For more information about TerrAdapt, visit BHGE at booth 2827.

BHGE also received an award for its DEEPFRAC deepwater multistage fracturing service, which lever-

ages tools and techniques perfected in unconventional plays to improve the efficiency and economics of off-shore completions. Using specially adapted DEEP-FRAC ball-activated sleeves and patented BeadScreen flowback control technology, the service simplifies operations, accelerates completion times and enables rapid stimulation of 20-plus stages in a single trip. For more information about DEEPFRAC, visit BHGE at booth 2827.

Delmar Systems Inc. has been recognized for its RARPLUS technology, which gives drilling rigs the capability to completely release from their moorings within minutes to evade ice floes, cyclonic storms, well emergencies or to simply increase rig move efficiency. With a backup mechanical release function, the RAR-PLUS system provides reliable flexibility to dynamic positioned/moored rigs operating in shallow water. For more information about RARPLUS, visit Delmar Systems at booth 1101.

Dril-Quip Inc. has received an award for its HFRe, a hands-free marine drilling riser system. The HFRe drilling riser is an automated system designed for HP/HT applications with efficient operations incorporating SmartSpider technology. This technology reduces risk and operational costs by providing critical feedback and eliminating rig floor personnel during installation. HFRe utilizes a boltless, fatigue-resistant 4 million-lbf coupling, which has been tested beyond API 16F/TR7 requirements. For more information about HFRe, visit Dril-Quip at booth 4577.

Editor’s note: For details on the rest of the winners, see part 2 of this article in the Tuesday, May 1, edition of the OTC 2018 show dailies. n

16

COMPILED BY HART ENERGY STAFF

The Aegion ACS facility provides advanced coating sys-tems. (Photo courtesy of Aegion Coating Services)

The N-type is the safe and cost-efficient solution for walk to work and crew change operations in extremely cold re-gions, hence its nickname “the Icemann.” (Photo courtesy of Ampelmann)

TerrAdapt is designed to provide extended tool life, sig-nificantly reduced nonproductive time and optimized per-formance. (Image courtesy of BHGE)

DEEPFRAC provides maximized reservoir contact with an average opex savings of $30 million to $40 million per well. (Image courtesy of BHGE)

RARPLUS transmits both direct and indirect line tension measurements from internal sensors for real-time display onboard the rig in a user-friendly graphical user interface. (Image courtesy of Delmar Systems)

The HFRe is a hands-free marine drilling riser system. (Image courtesy of Dril-Quip)

OTC Awards Companies for Innovative Technologies n The annual Spotlight on New Technology Awards have recognized several companies and technologies.


17

Industry News McDermott’s Journey to Zero Lost Time Incidents McDermott International Inc. recently crossed a major milestone of 80 million man-hours without a lost time incident (LTI)–a difficult feat for any large offshore en-gineering, procurement, construction and installation company to achieve.

The Middle East Area was the compa-ny’s busiest region, and McDermott has amassed a record of zero LTI incidents there since 2013, during which it fabricated and installed 75 jackets and 74 topsides. In addition, 150 miles of pipeline and 102 miles of cables and umbilicals were laid over the same time frame.

In 2015, McDermott implemented the award winning “Taking the Lead with QHSES” program, which embeds excel-lence in all aspects of QHSES performance, and its company-wide adoption has been attributed to its industry leading safety performance and zero LTIs. The program empowers employees to proactively drive continual improvement and promotes a safety-first culture across all disciplines.

In addition, the McDermott Operational Values launched nine core values in 2016 across the business that underpin its safety culture. The values are woven into opera-tions, policies, procedures, training, risk management processes and communica-tions. This approach brings key operational risks into a visual and cognizant state where they become routine in employee thinking and positively impact behaviors and attitudes.

To underscore this approach, McDer-mott dedicates more than 400,000 hours of training each year as part of a robust competency framework that develops the skills within its workforce of 11,800 and ensures continual improvement. A number of developmental programs are in place to recognize and empower in-dividuals.

To further advance its approach to QHSES performance and adoption of Tak-ing the Lead, McDermott launched its TTL Connect mobile application and will pro-vide demonstrations at OTC booth 2615. McDermott will also host a special cele-bration on its LTI safety achievement at its booth on Tuesday, May 1, at 4:30 p.m. All OTC attendees are invited.

OTC and United Against Human Trafficking Continue PartnershipCommitted to raising awareness of human trafficking, the Offshore Technology Con-ference (OTC) and United Against Human Trafficking (UAHT) are continuing their four-year partnership. As such, UAHT has conducted training for OTC’s exhibitors and educated conference staff on the signs of human trafficking.

OTC provides human trafficking infor-mation in its communications before and during the conference along with an onsite education booth for UAHT. It is located in

NRG Center, Level 1, Hall D, throughout the conference, April 30 through May 3.

UAHT’s mission is to end human trafficking through awareness, education and outreach. Based in Houston, UAHT increases awareness by training law enforce-ment, first responders, health care workers, social ser-vice providers and business owners on how to identify and combat human trafficking in the greater Houston community.

UAHT is one of the many charities supported by OTC. In fact, the 50-year-old conference maintains a strong commitment to serving the greater Houston

community through the Distinguished Achievement Awards Luncheon, which has donated more than $1.4 million to local charities over the past six years. OTC also donated to Hurricane Harvey relief efforts last year.

ION Introduces New 3-D Multiclient Reimaging Program Offshore AustraliaION Geophysical Corp. has introduced a new 3-D


See INDUSTRY NEWS continued on page 27

18

Deepwater drilling presents a number of challenges as wells are becoming more complex and require large

amounts of downhole data so operators can make timely decisions to achieve greater production at lower costs per barrel of oil equivalent. For example, drilling dynamics data are necessary to optimize the rate of penetration (ROP) and reduce well time whereas pressure and well-bore stability data help deliver the well safely and mini-mize operational risks such as lost circulation, poor hole clearing and stuck bottomhole assemblies (BHA).

With the increasing need for large volumes of real-time data, Halliburton introduced the JetPulse high-speed te-lemetry service to consistently deliver high-data rate

transmission of drilling and formation evaluation mea-surements. The service, a recent Hart Energy MEA Award winner, helps operators make faster decisions at any point in the well plan to optimize well placement and improve well control while increasing drilling efficiency.

Consistent data deliveryThe JetPulse service transmits downhole data consis-tently over wide depth ranges and complex well trajec-tories with physical data rates up to 18 bps. It provides the highest lost circulation material (LCM) tolerance of any high-speed telemetry system, helping the operator pump the required LCM concentration to cure mud losses without changing or plugging the BHA. The sys-tem is also designed to reduce flat time on the drilling

curve, maximize ROP and optimize res-ervoir contact by combining new teleme-try technology with direction drilling and measurement/logging-while-drilling ser-vices. This allows operators to make earlier and effective decisions to drill long sections in a single run.

“In environments requiring large data sets such as deep water and mature fields, operators rely on the accuracy and speed of downhole data to make informed decisions about their wells,” said Lamar Duhon, vice president of Sperry Drilling. “JetPulse is the next evolution of high-speed telemetry sys-tems that enhances reservoir understanding to reduce well time and help maximize cus-tomers’ asset value.”

The service also works with the JetPack 3D data management service to compress and configure multiple data sets in one package, providing effective data rates of more than 140 bps so operators can get the right data while drilling for enhanced decision-making.

The service is being used in multiple loca-tions around the world. It has delivered con-sistent, high-speed data to measured depths of over 9,144 m (30,000 ft) and demon-strated the ability to operate downhole for more than 600 hours on a single run.

Case studies In the Middle East, an operator needed the flexibility to pump high concentrations of lost circulation material (LCM) to cure potential fluid losses while drilling explo-ration wells in an area with highly fractured formations. The LCM tolerance of the Jet-Pulse service enabled the operator to suc-cessfully pump LCM pills of the required concentration without having to operate a downhole bypass circulation sub or risking plugging/damaging the downhole tools—a capability not possible with other mud pulse telemetry systems. Compared to the previous offset well in the same block, the operator maximized asset value by saving 20 days rig time and over $3.6 million.

In the Gulf of Mexico, an operator needed comprehensive downhole data from a chal-lenging high-angle well without compromis-ing the ROP or slowing down the drilling process. The JetPulse service consistently delivered data and images in real time at a resolution of 3 data points/ft while drilling at 30.48 ft/hr (100 ft/hr). The hole section was drilled in a single run with data rates greater than three times what was previously achieved in a similar well. The JetPulse ser-vice helped the operator enhance reservoir understanding and make effective decisions, improving drilling performance without compromising ROP, thus maximizing the value of the deepwater asset. n

High-Speed Telemetry to Save Valuable Rig Timen Service provides consistent, high-data rate transmission of drilling and formation evaluation measurements.

CONTRIBUTED BY HALLIBURTON

Drilling dynamics and formation evaluation data from sensors in the BHA allow operators to make early and effective decisions along the well plan to drill long sections in a single run—maximizing ROP, placing the wellbore accurately and reducing well time. (Image courtesy of Halliburton)


U.S. consumers are reaping the benefits of an en-ergy revolution spearheaded by the U.S. oil and

natural gas industry. The U.S. is leading the world in discovery and production of oil and natural gas both onshore and offshore. The result has been reliable, consistent and low-priced gasoline at the pump and abundant natural gas for heating and manufacturing.

This, however, has not always been the case. Just a few years ago, the U.S. was importing over 50% of its oil and issuing permit after permit to build liquefied natural gas (LNG) import facilities. We were actively working to overcome the hurdles of bringing LNG from Yemen into Massachusetts ports. Our foreign policy decisions were made from a position of energy dependence, and relationships with countries that did not always share American values were forged to assure we could import enough energy to meet our needs. Our economic and energy security was held hostage by a cartel of nations bent on keeping Ameri-can consumers hooked on foreign energy.

Meanwhile, oil market demands cre-ated great fluctuations in the price of gasoline. News of Middle East instability increased gas prices to over $4 per gallon at the pump. These swings hurt American tourism, hotel and restaurant industries. Driving, flying and even eating out be-came so expensive that family vacations became staycations. In fact, the cost of energy, regardless of source or use, rose across the board.

Then, almost overnight, America’s en-ergy position changed thanks to indus-try lead advances in modern technology. Technological advancements in horizontal drilling, deepwater exploration, and hy-draulic fracturing, like those showcased at OTC 2018, drove costs down and produc-tion up, positioning America as a leading global oil and natural gas producer. Due to lower energy prices, more capital became available for investment in many indus-tries, including manufacturing.

Unfortunately, instead of maximizing this generational opportunity, the previ-ous administration fixated heavily upon renewable sources of energy, neglecting an “all of the above” energy policy that actually reflected reality of the technol-ogy breakthroughs that were available. With the Trump administration, we have the opportunity to create a truly “all of the above and below” long-term energy policy that can reflect the technological promise of all forms of energy.

The Department of the Interior’s 2019-2024 National Oil and Gas Leasing Draft Proposed Program (DPP) could not come at a better time. The U.S. Energy Infor-mation Agency (EIA) predicts that fossil fuels will still supply nearly 80% of U.S. energy demand in 2050. Likewise, EIA predicts that the global middle class will grow in size by 2 billion people and in-crease global energy demand by 28% by 2040. Even with the growth of renewable technology, fossil fuels will still meet 77% of that demand. Increased offshore access will enable the U.S. to provide consumers with safe, affordable and reliable energy, even as energy demand increases to re-cord highs.

To keep pace with world energy de-mands, nontraditional forms of offshore

energy need to be a part of this emerging generation of energy. This creates an opening for tra-ditional oil and gas service com-panies to become part of the construction and supply chain as renewable energy production, such as offshore wind, becomes a reality.

With a looming surge in energy demand, we cannot wait until

there is a crisis to begin tapping our energy resources. If it takes $4 per gallon gas at the pump to begin the process of opening up new offshore areas for explo-ration and development, it will be too late to provide timely relief to American families. Energy is like any

other resource our modern lives depend upon; we must produce today to avoid panic tomorrow.

Ninety-four percent of the U.S. Outer Continental Shelf (OCS) is currently closed to oil and natural gas development. Having so much of our OCS closed is incredibly shortsighted and puts the U.S. at a strategic disadvantage, especially as other countries, like Russia, China, Norway, Canada and Mexico are developing energy projects off their shores to meet rising global energy demand. The DPP wisely proposes reversing course and opening up 90% of the U.S. OCS. Through the DPP, we can act now. Every single company and industry worker at OTC understands what the offshore energy industry can achieve. Now we just need policy-makers to give us a chance to do our jobs n

BY RANDALL LUTHI, NATIONAL OCEAN INDUSTRIES ASSOCIATION (NOIA)

Looking for an Energy Generation n The DOI’s 2019-2024 National Oil and Gas Leasing Draft Proposed Program could not come at a better time


Randall Luthi

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The selection of higher-specification pipeline ma-terials can significantly improve pipeline per-

formance, but at costs that may critically impact the economic feasibility of field development, especially when the industry focus remains on lowering capex and opex.

To address this challenge, Subsea 7 is accelerating its strategic development of cost-efficient pipeline mate-rial solutions for the expenditure-constrained oil price environment. Several of these technology advances are the subject of technical papers at OTC 2018 and are referenced in the current issue of Subsea 7’s technology magazine deep 7.

By collaborating with major pipeline manufactur-ers and acquiring commercial interests in two spe-cialist material developers, Subsea 7 has accelerated the development of a number of high-performance but cost-effective pipeline technologies, including the following:

• The use of higher-strength steels (i.e., exceeding X65) for pipeline installation in deeper waters;

• Qualifying a new lined pipe product, Glubi, for improved Reel-Lay corrosion performance;

• Developing polymer-lined pipe and connectors as an economic alternative to corrosion-resis-tant alloy (CRA) clad pipe; and

• Adopting lightweight thermoplastic composite pipe materials for subsea service.

High performance steels Using higher strength steel to decrease pipe thickness can contribute to lower material and fabrication costs and signifi-cantly reduced installation costs. A recent cost/benefit study for deepwater steel lazy wave risers identified a 20% reduction in pipeline weight and an 11% reduction in buoyancy material cost by replacing X65 riser material with higher-strength X80. Further potential cost savings could be re-alized by improved efficiencies in both the floater design and better utilization of the Reel-Lay vessel.

Subsea 7 has recently performed qualifi-cation programs for reelable X80 riser pipe in collaboration with steel tubular manu-facturer Vallourec. These confirmed that welding of X80 can be carried out using similar reliable and cost-effective methods as for X65. Subsea 7 can now offer oper-ators pipeline material and fabrication solutions to support the design of offshore risers and flowlines in X80 pipe, including for sour service.

The use of CRA mechanically lined pipe provides a highly cost-efficient alternative to the use of metallurgically clad pipe for many applications requiring improved corrosion performance. Working closely with manu-facturer Butting, Subsea 7 has pioneered the Reel-Lay installation of mechanically lined BuBi pipe which is now well established for production risers and flowlines.

A new lined pipe product, GluBi, is now being qualified which eliminates the use of internal pressurization as required for reel-ing conventional BuBi pipe. GluBi includes an adhesive layer between the substrate pipe and the liner, resulting in an enhanced grip condition that can be maintained during reeling to prevent liner wrinkling. GluBi technology will enable further cost savings to be realized for reeled pipe.

Polymer lining and compositesSwagelining, acquired by Subsea 7 in 2016, is a developer of polymer-lined pipe, with its proprietary process now well established for water injection lines installed by Reel-Lay. Swagelining has recently developed and qualified LinerBridge, an all-polymer connector, to replace the more costly Weld-Link CRA connector.

With LinerBridge, the polymer liner welds are made with an electrofusion pro-cess adapted from the utilities industries, and the external conventional carbon steel welds can be completed without risk of

Developing Cost-efficient Pipeline Materials n Improved steel and corrosion performance are among the features of new technologies.

CONTRIBUTED BY SUBSEA 7

Subsea 7’s Pipeline Production Team offers its clients the most up-to-date welding solutions to meet the full range of

pipeline fabrication requirements. (Image courtesy of Subsea 7)

20

See SUBSEA continued on page 26


21

As the oil and gas industry continues to change and adapt to market conditions, and with the associated

downturns in deepwater offshore exploration and drilling campaigns, there are fewer drilling vessels available in the market. Meanwhile, the vessels that are still working tend to be newer and more technologically advanced. As such, many of the working rigs are outfitted with thrusters and dynamic positioning (DP) systems to keep them on location in deepwater drilling locations.

While DP systems provide good station-keeping capa-bility in deeper depths, it is often beneficial to augment a DP rig with mooring lines in shallow-water locations. Since many of these shallow-water locations experience harsh conditions (e.g., hurricanes, storms, extreme wind and wave conditions and icebergs) it is important to be able to quickly disconnect from the mooring system to avoid these envi-ronmental hazards or emulate the operational advantages of DP station keeping.

Advantages of acoustical releasesIn the Gulf of Mexico, if regulators do not say rigs must withstand a 10-year return storm, they require the operators to prove they will not cause a safety or environmental prob-lem if such a storm hits. One of the simplest ways to meet this requirement is by discon-necting and leaving the area, if a large storm approaches. This is where acoustical release mechanisms come in.

The technology is 40 years old and the de-vices are bulky and in need of improvement. InterMoor, an Acteon company, developed the Inter-M Release, a new generation of acoustic mooring connectors. The connectors use the Rocksteady mooring connector of sister company SRP and its ROV-actuated re-lease system, combined with a simple gas-ac-tuated cylinder valve, and a state-of-the-art military-grade control system.

The design uses Rocksteady’s mechani-cally efficient preloaded finger and toggle locking system, which is more reliable than springs or retained hydraulics to maintain the locked position. The result is a device that is one-quarter of the weight and only needs one-third of the deck space required by older generation acoustic release connectors. It also means that it can release under tension loads as high as 900 mt. A tension of 900 mt is the equivalent to the breaking load of an 87-mm-diameter (3.5 in.) diameter R5 chain.

Development efforts also focused on the importance of overcoming battery life and signal interference issues, which were common shortcomings of existing acous-

tic disconnection devices on the market. As a result, the designers of the Inter-M Release went with an intelligent control system, which uses Teledyne Marine’s proprietary high-fidelity acoustic modems. These are the same mo-dems used in precision military and survey hardware for underwater applications.

The system uses a relay mode and frequency hopping techniques between the connectors, which dramatically im-prove transmission, reception and therefore reliability. The battery life has also been improved from 18 months in pre-vious devices to five years.

Finally, the advanced control system gives a unique iden-tifier to each piece of hardware. This not only eliminates the possibility of an inadvertent release, but also allows for the Inter-M Release to be actuated individually, in clusters, or

even sequenced in any order. Being two to four times lighter and smaller than other

existing quick disconnect mooring devices, the Inter-M Release connector is therefore easier and safer to install, saving time and money. It also significantly reduces main-tenance costs: it can be overhauled by a single technician without overhead lifting devices in as little as four hours. Older devices often required two technicians for two days and a crane.

This new technology, combining proven connector technology and a top-of-the-line control and communi-cation system, provides a significantly safer way to discon-nect the rig quickly in case of emergencies, and can also be used to optimize drilling efficiency by allowing faster rig moves from one location to the next. n

New Generation of Acoustic Release Connectors n Latest technology provides a new level of reliability and availability to mooring systems.

CONTRIBUTED BY INTERMOOR


Through acoustic network relay, the In-ter-M Release offers improved perfor-mance and reliability in a compact and easy-to-deploy package. (Image courtesy of InterMoor)

The prospect of decades of high-volume production from deepwater wells makes them an attractive in-

vestment. But in harsh environments like the Gulf of Mexico, operators are experiencing growing operational risks, frequent high-cost interventions, and long periods of deferred production that are impacting field econom-ics by the billions of dollars every year. The root causes: asphaltene buildup inside tubing and on tools, and down-hole equipment failures due to elevated pressures and temperatures.

Despite the common and widespread nature of these issues, the approach to address them has remained largely reactive, relying on intervention versus holistic preven-tion. This is evidenced in operations such as bullheading

chemical treatments, milling “removable” packers, replac-ing failed downhole data devices, mechanically shifting stuck sliding sleeves and, in some cases, total recomple-tion at a cost of up to $100 million or more per incident.

The latter operation is often due to the malfunction-ing of a critical well control tool—the subsurface safety valve (SSV). Traditional in-well chemical injection offers little to no protection against asphaltene buildup inside conventional safety valves, making them especially sus-ceptible to failure.

To address these challenges, Baker Hughes, a GE com-pany (BHGE) is using a new, more holistic a proach to deepwater production—one that leverages a combination of chemistry, fit-for-purpose completion tools, digital in-sight and remote control—to minimize interventions and maintain optimal production.

Avoiding asphaltene buildupKeeping tubing and downhole tools free of asphaltene buildup requires injection of the right chemicals into the right areas. This is why BHGE re-engineered its API 14A V1-validated DeepShield deepwater SSV to include chemical injection capabilities. The patented design enables delivery of treat-ments directly into the valve’s spring cavity and lower pistons, eliminating asphaltene buildup risks inside the valve. Paired with BHGE’s FATHOM XT SUBSEA525 asphal-tene inhibitor, the DeepShield valve offers improved asphaltene resistance in harsh deepwater wells.

Additionally, injection of FATHOM XT treatments directly into BHGE InForce HCM-S hydraulic sliding sleeves, versus conventional wellbore delivery, also provides more effective protection against asphaltene buildup. FATHOM XT SUBSEA525 treat-ments suppress the formation of trouble-some deposits with up to a 30% lower dosage rate compared to competitor inhibitors, making them both effective and efficient. SureTREAT chemical injection valves de-liver FATHOM treatments at other critical points along the completion to assure flow.

Operating reliably in HP/HTconditionsHigh temperatures and pressures can quickly foul equipment that is not built for these conditions.

With gas-tight sealing capabilities and industry-leading pressure and tempera-ture ratings (232 C or 450 F at 20,000 psi [1379 bar]) the BASTILLE packer reliably performs in ultra-HP/HT applications where some retrievable packers become permanently set due to loading, resulting in unplanned interventions. The BASTILLE packer’s slips and element are designed to reliably disengage from the casing when re-leased, enabling simple, fast retrieval. Sim-ilarly, the InForce HCM-S sliding sleeves provide reliable operation, even after pr longed exposure to elevated pressures and temperatures.

For fail-safe performance in remote sub-sea wells, the DeepShield valve features two independent operating systems. The valve also offers extra protection against debris via an energized scraper ring that safeguards the dynamic seals from debris ingress.

Sustaining Production in Deep Water n Holistic solution proactively addresses the critical challenges.

CONTRIBUTED BY BAKER HUGHES, A GE COMPANY

The DeepShield valve enables delivery of chemical treatments directly into the valve’s spring cavity and lower pistons, eliminating asphaltene buildup risks inside the valve. (Image courtesy of Baker Hughes, a GE company)


See DEEP WATER continued on page 27

Three and a half years after the precipitous decline in crude prices, oil and gas operators continue to de-

velop and implement the means to effectively navigate the new normal. Cost constraints, however, are not the only driver behind innovation. The long-term sustain-ability of the industry also is predicated on minimizing the environmental impact of projects, particularly in the offshore environment.

In light of this, the concept of using offshore wind farms to provide clean power to oil and gas facilities continues to gain traction. But there are still many hurdles to over-come, not the least of which involve finding ways to offset the intermittence and inherent unpredictability of elec-tricity generation from wind. One solution that will play a key role in addressing this challenge in the coming years is energy storage.

Integrating energy storage with offshore platformsAn offshore platform consists of a multi-tude of systems whose total power con-sumption can range from 10 to several hundred megawatts of electricity. For many of these systems, interruption due to unavailability of power can lead to se-rious safety issues and production losses. As a result, the intermittent generation and off-peak power production of offshore wind farms presents a significant hurdle in bringing clean energy to the oil and gas industry.

Energy storage solutions (ESS) pro-vide a means to establish a stable, reliable electrical network by buffering intermit-tency and providing clean, dispatchable power. In recent years, numerous stud-ies and pilot tests have been conducted to determine the feasibility of using ESS to capitalize on clean power. However, there have been very few proofs of con-cept that translate to the offshore oil and gas environment.

Applying ESS in a marine environmentIn 2015 Siemens set out to change the sta-tus quo by partnering with Fjellstrand, (a Norwegian shipyard), Norled AS (a ferry operator) and Corvus Energy to develop the world’s first electrically powered ferry, Ampere. Ampere carries passengers and cars across a 6-km (3.72-mile) crossing between two communities in the Fjord re-gion of Norway. At 80 m long (262 ft), it is driven by two electric motors powered by lithium-ion batteries. Each motor has an output of 450 kW. The batteries have a combined capacity of 1,000 kWh, which is enough to make multiple trips. After that, the batteries need to be recharged.

The challenge of the project, which is a similar challenge offshore oil and gas fa-cilities face, was that the power grid in the region was relatively unstable. Designed to provide electricity only to small villages, the rapid consumption of energy from the medium-voltage system to recharge ferry batteries had the potential to cause black-outs for local residents.

To address this, Siemens installed one lithium-ion battery at each pier to serve as a buffer. The 260-kWh unit supplies electricity to the ferry while it waits. Af-terward, the battery recoups all this en-ergy from the grid until the ship returns to drop off passengers and recharge. The charging stations are housed in a small building about the size of a newsstand.

Emissions-free operationWith electricity in the Fjord area generated exclusively by hydroelectric plants, Ampere is entirely emission-free and has cut fuel costs for Norled by 60%. The project rep-resents a milestone achievement on the road to reducing emissions in Norway. By 2021 it’s estimated that 60 bat-tery-powered ferries will be in operation along the coun-try’s coastline. As many parallels can be drawn from the design and construction of these vessels to other marine facilities, Ampere serves as an example of how ESS can be successfully applied in an oil and gas environment.

Overall, the economic benefits that can be realized by pairing offshore wind and energy storage with oil and gas platforms depend on many factors, including load condi-tions and onsite power generation capabilities. However, as environmental sustainability becomes the increased fo-

cused of countries worldwide, the potential benefits it can provide make it a concept worth exploring. n

23

Bringing Clean Power to Offshore Platforms n Energy storage solutions provide a means to establish a stable, reliable electrical network.

CONTRIBUTED BY SIEMENS

In recent years, numerous studies and pilot tests have been conducted to determine the feasibility of using ESS to capitalize on clean power. (Image courtesy of Siemens)



The Gulf of Mexico boasts one of the highest-specifi-cation rig fleets in the world. Over the past decade,

operators have brought more than 50 new generation drillships and semis into the region in response to grow-ing regulations and a greater focus on safety and efficiency. Challenges in the big prize plays of the Gulf of Mexico (GoM), such as subsalt Miocene, Jurassic and Lower Tertiary, have dictated the need for a more advanced type of rig.

But with the newer generation rigs came higher day rates. New generation rigs contracted before 2015 reached record-high rates, averaging above $500,000 per day. Operators were spending nearly $1 million per day to drill wells.

Despite high oil prices, these high day rates were not sustainable as operators struggled to make projects economic even at $100/bbl oil. Since 2015, day rates in the floating rig market have plummeted to below $200,000 per day due to excessive oversupply in a down market. Aggressive long-term contracts signed before the downturn left the GoM in a unique position of sus-taining high average rates, which still linger today.

Currently, more than 70% of the rigs in the GoM are working under these legacy high day rates. However, there is hope for operators. Over the next three years, 12 rigs working at legacy high rates will reach the end of their contracts. Wood Mackenzie expects many of these rigs to be re-contracted at substantially lower rates. Exxon Mobil Corp. and BHP recently re-con-tracted the Maersk Viking and Deep-water Invictus, respectively, at 75% below their previous rates.

Increase in activityAs new rigs are signed at much lower rig rates and high-price rigs roll off contracts, the economics of offshore will improve and activity will pick up. We forecast 34 development wells will be drilled this year, almost 10% more than 2017. Shell and Anadarko are leading the way, accounting for half of the total.

Exploration activities are also look-ing stronger despite the lackluster

March lease sale. Wood Mackenzie expects 21 exploration and appraisal wells will be spud this year. A wide range of operators will be busy prospecting and proving up discoveries, including Anadarko, Chevron and Shell. Murphy Oil is expected to return to GoM exploration as it looks to appraise the Samurai discovery.

Impact on breakevensRig costs are usually the most expensive portion of a well’s price tag. As new rigs are hired at a significant discount, well costs will continue to decrease. Couple the softer rig rates with a tremendous amount of drilling efficiency gains over the last three years, and offshore wells start to compete with shale on half-cycle economics. In shale wells, drilling costs are a fraction of completion costs, and a tight market for the latter has limited the amount shale breakevens can fall.

Although deepwater has to battle a 30% success rate, at the current leading-edge rig day rate a deepwater well can break even around $18/bbl to $20/bbl (Brent, NPV10). Drilling efficiency gains are making financial returns more pronounced. A 20% improvement in drilling penetration rates lowers the breakeven to the mid-teens. The upfront cost of a 7,620-m-deep (25,000 ft-deep) offshore well in the GoM is down to $55 million to $60 million, unthinkable only a few years ago. Shallower wells are at half the cost.

Operators have done extremely well at bringing costs down in GoM. They are redesigning projects, adopting standardization and leaning on existing infrastructure to improve the cost structure. Lower rig rates are fur-ther adding to the attractiveness of the region. As more companies benefit from the soft rig market, GoM activ-ity will pick up pace.

Visit Wood Mackenzie at booth 4079. n

Gulf of Mexico Comeback? n Rig rates key in restoring investment; decline in legacy costs could lead to development growth.

BY IMRAN KHAN AND LESLIE COOK, WOOD MACKENZIE

Number of new high spec rigs hired into U.S. Gulf of Mexico from 2010-2017

Number of rigs rolling off contract at day rates >=$400,000/day

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014 2015 2016 2017

Source: Wood Mackenzie

0

1

2

3

4

5

6

7

Source: Wood Mackenzie

2018

Anadarko

2019

Anadarko

Chevron

Shell

BP

2020

Anadarko

Chevron

Hess

BP

Safe and secure at OTCFor security purposes, attendees are re-quired to wear their OTC name badge and badge holder at all times. According to OTC, use of a badge by a person not named on the badge is grounds for confiscation. If you lose your conference badge, please return to Registration for a replacement.

An adult must accompany attendees 15 to 18 years of age. No one under 15 years of age will be admitted to OTC. An adult must accompany attendees 15 to 18 years of age.

Also expect additional security mea-sures as you approach each entrance location of NRG Park. Security personnel will be positioned at the entrances and may ask you to open your backpack or boxes for a visual inspection. If you ob-serve any suspicious activity or have any security concerns, please contact OTC Headquarters onsite so we may investi-gate the matter. OTC wants all patrons to have a safe and secure experience. We appreciate your cooperation and support in making this possible.

new resources, for them to be economical, need to be large or very productive as compared to an on-shore well. Key technologies developed in the past 50 years, like geophysical imaging, ROVs, horizon-tal and multilateral drilling, subsea systems and station-keeping technologies, have enabled us to explore for and produce from these fields.”

As to where the industry will be 50 years from today, Beydoun believes it is its ability to adapt to rapidly changing environments that will enable it to continue to meet the ever-growing global demand for energy. There also will be more cross-industry innovations, with artificial intelligence, 3-D print-ing and more all serving a much more central role in future operations.

“The trend seems now to use technology innovations to execute projects with a much shorter turnaround

time, to run safer and more efficient operations with fewer people on site,” he said. “The ROV is just a start. I believe we’ll have robots on platforms.”

Industry’s embrace of new technologies is evident at the conference and not just in the exhibition halls. A wealth of experience of planning in the good years and in the leaner years comes in handy when pre-paring for OTC.

“With 50 years of experience, we’ve learned from past events how to manage and plan for the cyclical nature of the industry,” he said. “We plan 18 months in advance for the conference and coordinate with a multitude of contractors to help us prepare.”

Over the years, the conference organizers have op-timized their processes to work more efficiently and to also improve the quality of the event by using new technologies as often as possible, he noted.

“For example, we’ve cut down the wait time for onsite registration and badge print out to about five minutes,” he said.

In celebration of its 50th edition, conference orga-nizers have planned multiple special events in addi-tion to its traditional offering of technical sessions, breakfasts, luncheons and awards presentations.

“I strongly encourage everyone to attend the opening ceremony, the legacy luncheon, the panel on energy transformation in the afternoon, and the evening celebration, the ‘Party on the Parkway,’” he said. “And that is just on the first day.”

The key to the successful run of 50 years of OTC is found residing in the hands of the members of the many organizations and societies whose efforts have helped make the conference possible.

“All of us that work on the conference feel a sense of pride and the collective camaraderie necessary to pull this event together. It takes every person from the 13 sponsoring organizations and more to pull to-gether an event as impactful and immense as OTC,” he said. “It is a privilege to work with this team and to serve as its chairman.” n

FIFTY (continued from page 1)

feature initiatives taken by players in the offshore value chain to adjust to the new market norm in the industry.

At 2 p.m. on Monday, “Continuous Improvement: More for Less and Field Development Strategies to Face the Current Market Condition,” will feature speakers from Petrobras; OneSubsea, a Schlumberger company; and SBM Offshore who will discuss commercially and economically sound development strategies.

As the industry moves into the age of digitalization, OTC’s technical program has similarly evolved its focus, Barton said.

“We started including sessions on digitalization about three years back,” he said. “There has been a groundswell around that area of the industry and there is more interest in it. All of the previous sessions we’ve had on digitalization have all been very well attended and generated a lot of interest.”

This year’s program will feature no fewer than seven sessions dedicated to Big Data, digitalization and auto-mation innovations. Among those scheduled sessions are “The Digital Optimization of Offshore Exploration and Production: The Next 50 Years,” on Tuesday at 2 p.m.; “Big Data, The Next Chapter,” on Wednesday at 9:30 a.m.; and “Drilling Automation and Machine Learning,” also set for Wednesday at 9:30 a.m.

In addition to cost-focused sessions and topics on digitalization, Barton said a larger emphasis on off-shore projects has returned to OTC this year, most of which will be featured during Tuesday’s programs.

“We haven’t had very many projects over the last few years, and they’re back,” he said.

At 9:30 a.m. on Tuesday, a review of the 40-year history of the Campos Basin is scheduled, while at the same time Shell’s Malikai project will be featured in a session. Other offshore projects scheduled for dis-cussion during the week are Exxon Mobil’s Hebron project—Eastern Canada’s latest offshore oil proj-ect—which is set for Tuesday at 2 p.m., and Chevron’s Jack-St. Malo project.

“That’s going to make for an interesting discussion on how that’s been implemented over the years,” Bar-ton said.

Thursday’s sessions will showcase OTC’s ongoing focus on industry safety and federal policy. A ticketed breakfast session at 7:30 a.m. is scheduled to feature Stephen Barrett, senior vice president, business devel-opment, Oceaneering, and Fawaz Bitar, head of up-stream global operations, BP. Barrett and Fawaz will present “Center for Offshore Safety: Could This Be the Next Step Change in Safety?”

The Center for Offshore Safety will present twice more on Thursday, at 9:30 a.m. and again at 12:15 p.m., during a ticketed lunch session. Alan Cohen, director, office of oil and gas research, U.S. Depart-ment of Energy (DOE), is scheduled to discuss the DOE’s approach to offshore oil and gas technology challenges during a 12:15 p.m. ticketed luncheon.

“There are some interesting sessions on govern-ment policy,” Barton said. “I think we’ve put together one of our strongest Thursday programs ever.” n

TECH (continued from page 1)

NEW DAY (continued from page 1)

smaller facilities and the increased use of subsea tiebacks and existing infrastructure.

As a result, the projects are smaller, with an av-erage capex to develop major projects (commercial reserves over 50 MMboe) sanctioned in 2017 fall-ing to $2.7 billion from an average capex of $5.5 billion for those projects sanctioned over the last decade, according to the analysis.

Project optimization, faster drilling delivering reduced drilling costs, lower rig rates, subsea and supply chain costs are helping deepwater achieve the greatest fall in unit costs through the downturn, the analysis stated.

Offshore E&P survived the storm through ad-aptation, collaboration, innovation and standard-ization and now enters a period of rebuilding and growth. It won’t happen overnight, but through the continued sharing and disseminating of knowledge in the true spirit of OTC collaboration, the journey will certainly be memorable. n

26

OPTIMIZING (continued from page 15)

ADVANCES (continued from page 12)

cloud is essential. Data must also be stored properly and user access managed well, whether by internal or third-party personnel.

Taking full advantage of the opportunity here en-tails something more, however: developing a business case based on the right automation strategy to suit a given company’s needs and objectives. This is an area in which most companies are struggling. For many small players, this might mean evolving from a reactive maintenance model to one based on proactive routines, which requires having a willingness to implement real organizational change. This is a challenge regardless, but the benefits are proving to be worth the investment.

One Emerson customer who operates an offshore drilling facility in Alaska has seen success using a third-party service to manage maintenance, analyze process data and monitor control valves remotely. In a place where making repairs outdoors is never routine, delegating engineering duties to experts on the mainland has made good business sense. With a more proactive maintenance strategy, the facility achieved zero valve-related shutdowns over a 24-month period. The savings from just one hour of un-planned shutdown time more than covered the cost of the third-party service.

To achieve results like these, Emerson’s recommen-dations are to build a collaborative team to implement programs, target the right applications, pick effective third-party partners, manage change well and focus on business opportunities—not just the technology. This approach will enable producers to stay competitive, whatever the market brings.

For a deeper dive on this topic, join Emerson at the OTC 2018 session “Digitalization: A Vision For-ward,” on Monday, April 30, at 10:36 a.m. in Room 604 (Session #28943). n

damaging the underlying liner material. The Lin-erBridge connector now makes polymer-lined pipe water injection lines installed by S-Lay and J-Lay an attractive economic alternative to clad pipe.

The next technical challenge to be addressed for polymer liners is their use for hydrocarbon service, managing the risk of gas permeation through to the steel pipe substrate.

Thermoplastic composite pipe (TCP) materials are now challenging the use of steel for subsea service, and Subsea 7 recently acquired an interest in lead-ing manufacturer Airborne Oil and Gas to accelerate TCP technology development.

TCP materials offer fully bonded pipelines with a smooth bore giving superior corrosion resistance, flow assurance and thermal performance capabilities to comparable steel pipelines. In addition, its combi-nation of low weight and high strength makes TCP an attractive enabling solution for deepwater SURF architecture. n

the operator to take immediate action instead of wait-ing to access the KPIs in the next day’s report.

By comparing each section of the current well to sec-tions in previous wells, the analyst determined where performance could be improved in the next well, which represented an important first step toward identifying efficiencies and potential cost savings through reduced ILT.

Throughout the drilling phase, the operations analyst outlined well monitoring workflows and processes to allow the operator to push ROP to the maximum level as safely as possible. The service also used the VIRTUAL HYDRAULICS drilling fluid simulation software to facilitate continual access to tripping schedules and hydraulic simulations. A specially designed program monitored and detected warning signs during tripping.

In one well, the service set field records for net and gross ROP in the 8½-in. and 12¼-in. sections, achieved a 48% decrease in slip-to-slip tripping time compared with the project average and improved cas-ing slip-to-slip performance. Additionally, the service improved drilling consistency and tripping perfor-mance to enable multiple casing and completion runs. Det Norske has also seen continuous improvement in the makeup and laydown times of BHAs.

Visit Schlumberger booth 2415 at OTC. n

SUBSEA (continued from page 20)


Visit EPmag.com for stories tagged “OTC Extra”!

multiclient broadband reimaging program offshore Australia. The North Vulcan 3-D multiclient reimag-ing program covers the northern part of the Vulcan sub-basin offshore Northwest Australia in an area known for complex imaging challenges. The 17,000-sq-km (6,564-mile) program integrates and reimages data from 15 vintage surveys using modern depth imaging. It builds on knowledge gained from ION’s regional 2-D WestraliaSPAN survey and incorporates additional geophysical insight and geological interpretation to create a superior new image and enhanced subsurface understanding.

This proven hydrocarbon province has suffered from a lack of investment, in part because of the poor qual-ity of existing data. Reprocessing has delivered signif-icant imaging uplift in geologies with similar imaging challenges. ION’s broadband processing and general move-out tomography can overcome subsurface imag-ing challenges stemming from a complicated velocity structure because of both shallow carbonates and salt.

This cost-effective reimaging will help de-risk future exploration in this complex area at a fraction of the cost of acquiring new data, and there are a number of existing fields and discoveries as well as available acreage in upcoming license rounds within the boundary of the North Vulcan 3-D multiclient reimaging program.

CGG Adds New Santos VIII Multiclient Survey Offshore BrazilCGG has commenced acquisition of a large broadband 3-D multiclient survey in the presalt area of the deepwater San-tos Basin. Santos VIII is the most recent survey in CGG’s ongoing presalt program that delivers ultramodern seismic data, enabling exploration companies to bet-ter evaluate presalt opportunities in ad-vance of Brazil’s presalt licensing rounds. Santos VIII covers an area of more than 8,000 sq km (3,089 sq miles) ad-jacent to the Peroba, Pau Brasil and Boumerangue fields.

The resulting BroadSeis data will be imaged with CGG’s advanced full-wave-form inversion technology in its Rio de

Janeiro Subsurface Imaging Center and merged with the Constellation reprocessing project to provide a regional broadband image of this prolific basin. Fast-track products will be available in fourth quarter 2018, and final products will be available in second quarter 2019. Constellation is a 44,000-sq-km (16,988-sq-mile) project that upgrades CGG’s existing Cluster and Cluster Extension surveys with its latest subsurface imaging technology, including 3-D deghosting with bandwidth extension and tilted transverse isotropy full-waveform inversion velocity model building, to provide detailed broadband presalt images.

BP Ventures to Invest $500,000 in Clean Energy ConsortiumBP Ventures, BP’s venture arm, will invest $500,000 and form a strategic relationship with several members of Incubatenergy, a U.S.-based consortium of clean en-ergy incubators and accelerators that supports startups and entrepreneurs across the global energy sector. Ac-cording to a BP, the strategic relationship will provide BP Ventures the opportunity to collaborate with Incu-

batenergy’s senior industry leadership and cleantech startup companies. It also will support BP Ventures’ mission of growing, developing and investing in new energy solutions for a lower-carbon future, specifically with a focus on power and storage, advanced mobility and digitization of the energy sector. n

Actionable digital insightsThe ability to collect and interpret down-hole data is the key to understanding production flow, maintaining completion health and confirming downhole tool performance. BHGE intelligent systems and ProductionLink monitoring services deliver that understanding, and the ac-tionable insights, operators need to opti-mize flow and minimize interventions in high-cost deepwater environments.

BHGE’s SureSENS QPT ELITE gauges, SureFLO flowmeters and SureVIEW fiber-optic monitoring systems collect highly accurate pressure, temperature and flow rate measurements. The data are transmitted to the ProductionLink service platform in real-time, where they are visualized and analyzed using well-specific algorithms. With the BHGE SureCONNECT downhole intelligent wet-mate system, which enables in-strumentation and control of the lower completion in two-trip completion appli-cations, information flows uninterrupted and control is continuous, allowing oper-ators to implement precise adjustments from anywhere in the world.

Visit Baker Hughes, a GE company, at booth 2827 during OTC. n


DEEP WATER (continued from page 22)

INDUSTRY NEWS (continued from page 17)

Can I take photographs or video of OTC?

No. All OTC sessions are protected by U.S. copy-right laws. Photography and video/audio recording of any kind are strictly pro-hibited in the sessions and throughout the exhibition area. Members of the press are required to report to the OTC Press Room to obtain permission for photography and videography.

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