Tech Improves Everything, Including Drilling Rigs.

According to the 贝克休斯 Rig Count, in 2015 approximately 1,900 US #onshore active #rigs drilled a total of 16,000 #oilandgas wells. Fast forward to 2022, and less than 800 rigs drilled nearly 20,000 wells. So what’s changed? A probable conclusion is that #drillingrig operators, like everyone else in the industry, have had to do more with less in an effort to control costs.?

Recent pricing pressures have produced diamonds in the form of new #technologies and #drillingautomation, so it’s no surprise that over the last several years the industry has been motivated to improve productivity through innovations that allow for quicker #drill speeds and faster #rig moves between #wellpads. Many companies are also embracing technological innovations, such as #datavisualization, in a first step toward automating #rig operations.?

#Datavisualization is a smart advancement that should certainly be welcomed by the industry, but in a vacuum, this technology alone can do little to move the needle. Although it provides #drillingcontractors valuable information (in the form of charts, tables, diagrams, and pictures) along with some #dataanalytics, there has been minimal expansion of #datavisualization into the bottom-hole assembly (#BHA) space. As a result, a chasm exists between the #data viewed by #drillingcontractors and that viewed by #BHA component manufacturers.?

An #AI-based software solution that can integrate these two #data sets into a single, seamless, real-time information feed offers far greater advantages to operators.

Capturing Allusive BHA Data

#Drilling wells today is becoming ever more challenging – greater depths, longer lengths and high-pressure applications are now the norm rather than the exception. #BHA, otherwise known as the last 90 feet (to reach total depth), consists of the bit, rotary steerable, motor, MLWD, drill collars, heavy-weight drill pipe, and crossovers for various thread forms. #BHA must provide force for the bit to break the rock (weight on bit), survive harsh, unforgiving downhole conditions, and provide the driller with directional control of the well.?[1]

Understandably, the #BHA is the most critical and expensive aspect of any well and its operation presents the most risk. Without real-time #data on how the #BHA components are functioning, crew chiefs are left to read and interpret physical signs during the #drilling process. It is a guessing game at best.?

What if the crew had live, real-time #data with actionable insights on how the #BHA components are functioning to help guide them so they ultimately reached total depth faster, with less risk involved? #Autonomous software monitoring of #BHA could significantly reduce #drilling costs, overhead, and safety concerns, by allowing the #rig to essentially “run itself” while being monitored remotely.?

Achieving a Competitive Advantage in the Midst of Change

Running with smaller onsite crews will become more critical moving forward. Over the past several years, the #drilling sector has lost more than 100,000 jobs as a result of #oil price volatility. Even with the recent uptick in production caused by the Ukraine-Russia conflict, many #rig workers continue to flee the #oilfield for the #renewable sector. Crew workers cite the arduous conditions, safety risks, remoteness of #drilling sites and insufficient compensation as reasons they are choosing to leave for new pastures.?

Arie de Geus, the past head of Royal Dutch Shell’s Strategic Planning Group, once said, “The ability to learn faster than your competitors may be the only sustainable competitive advantage.” In order to achieve a competitive advantage in the midst of the industry’s latest evolution, #drilling companies will need to adapt and equip their #rigs with #autonomous technology that offer actionable insights in real time while also integrating the #BHA components with smart software.

Why the drilling contractor and not the directional company?

Why should #drillingcontractors, rather than directional #drilling companies, be the champions for #rig modernization and vertical integration of technologies?

For starters, the directional #drilling space is full of brilliant minds in #petroleumengineering, #mechanicalengineering, and #manufacturing. But these experts are dispersed across a breadth of companies. Furthermore, most bottom-hole assemblies are comprised of components manufactured by different companies, or Original Equipment Manufacturers (OEM).

The landscape of #drillingcontractors, while equally flush with brilliance, is far less complicated. #Drilling rig companies should be motivated to tackle the challenge of vertical integration for a variety of reasons:

-???????Championing vertical integration offers #drilling companies a compelling opportunity to differentiate themselves.

-???????#Rig workers are exiting the sector; #rig modernization will allow contractors to operate safely with fewer onsite workers.

-???????Remote management provides better decision making amongst a smaller group of experts. As the employee pool of expertise shrinks, gaining more leverage from a small group of experts is ideal.

Conclusion

Vertical integration involves developing #automation capabilities that incorporate a #BHA feedback loop providing real time #rig adjustment recommendations to a centralized control center.

In fairness, #drillingrig companies have been focused on this challenge. However, a #drillingautomation #tech ecosystem, where experts within and outside the industry can collaborate and create meaningful change, is the industry’s best possible solution to generate a quality software.?

[1]?https://glossary.slb.com/en/terms/b/bha