• Oilfield News

    Will The ‘Digital Oilfield’ Still Need Roughnecks?

    Some say oilfield workers of the future will need new tech skills, but that at the same time, their jobs will be easier. However it plays out, the industry’s digital transformation could mean big changes for its workforce.

    An oil drilling rig pictured in rural DeWitt County TXAt a recent panel discussion in Houston, oil and gas executives were asked whether the “digital oilfield” of the future will have a place for “roughnecks,” the grease-and-sweat jobs of the industry.

    “We will need less, but a lot of that work is not going away,” said Jim Claunch, VP of Operational Excellence at global oil company Statoil.

    Claunch said new technologies can give workers more guidance in their day-to-day tasks. Take the “augmented reality” glasses some companies are already experimenting with.

    “Before somebody is going to work on a pumpjack, for example, they can put on the glasses and they can see, ‘okay, here’s the things about safety I need to worry about,’” he explained. “And then, ‘show me step by step how I fix this.’”

    That could save time, which of course is money.

    “There will be increased safety, there will be increased profits, but overall, we’re still going to need people,” said Scott Desmarais with consulting firm McKinsey.

    Desmarais said as it stands, oilfields still need routine maintenance, though that will...

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    Colorado Oilfield Worker Dies Days After Pipeline Fire

    One of the three oil field workers injured in a pipeline fire last Thursday near Galeton died Tuesday at a Greeley hospital.

    The site of the oil pipeline fire near Galeton in Weld County Colo. last week..jpgThe worker was identified by the county as 61-year-old George Cottingham of Greeley. His manner and cause of death have yet to be determined pending an autopsy, Weld County Communications Director Jennifer Finch said.

    Cottingham was one of three workers injured in the fire, which reportedly started while they were doing maintenance on the pipeline. Emergency responders and investigators described the fire as an industrial accident, and said the fire was a “flashover” – a quick burst of flames and heat.

    Finch said Wednesday the origin of the fire was still being investigated by several agencies.

    The well site is owned by PDC Energy while the gas line is operated by DCP Midstream, according to fire officials.

    A PDC Energy spokesperson released the following statement last week after the incident:

    “We have been made aware that a fire occurred this afternoon while a midstream operator was performing pipeline maintenance work on their equipment. We are working closely with local first responders to assess the situation. The first responders on-site determined that we could safely...

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    Saudis Push For Nine-Month Extension Of OPEC-Led Oil Cut

    Top crude exporter Saudi Arabia is lobbying oil ministers to agree next week on a nine-month extension to OPEC-led supply cuts, sources familiar with the matter said, as Riyadh seeks to ensure a price-sapping glut is eradicated.

    Pump jacks are seen at the Ashalchinskoye oil field owned by Russias oil producer Tatneft near Almetyevsk in the Republic of Tatarstan Russia July 27 2017The Organization of the Petroleum Exporting Countries, non-member Russia and nine other producers are cutting oil output by about 1.8 million barrels per day until March 2018, and will discuss extending the deal at a Nov. 30 meeting in Vienna.

    Oil LCOc1 prices have risen to almost $65 a barrel, the highest since 2015, supported by lower inventories. However, OPEC is wary prices could fall again since excess supply persists, while a flare-up in Middle Eastern political tensions has also played a part in the rally.

    “The Saudis are lobbying to have a decision in November for nine months,” said a senior oil industry source with knowledge of the matter who declined to be identified.

    Indications of support for a nine-month extension have come from the very top in Saudi Arabia, OPEC’s de facto leader, and Russia, the largest non-OPEC producer involved in the agreement.

    Saudi Crown Prince Mohammad bin Salman signalled he was supportive of extending the...

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    Funeral Set Saturday For Seagraves Texas Man Killed In Oilfield Accident

    50 year old Roy Rangel (right )The funeral for 50-year-old Roy Rangel of Seagraves will be hosted at 1 p.m. in the Seagraves High School Auditorium. 

    Rangel was killed in an oilfield incident on Friday north of Andrews after a valve fell on him near a well site. 

    A Rosary will be hosted on Tuesday at 7 p.m. in St. Paul Catholic Church in Seagraves.

    Source: KCBD

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    ‘They Can’t Make a Nickel’: Rig Suppliers Still Struggling Despite Oil Price Rebound

    Canadian drillers are still offering their customers deeply discounted prices even though oil prices have improved and more rigs are active in the field.

    The Canadian Association of Oilwell Drilling Contractors released its forecast for 2018 Tuesday which showed the industry group expects its members will drill 6138 oil and gas wells next yearThe Canadian Association of Oilwell Drilling Contractors released its forecast for 2018 Tuesday, which showed the industry group expects its members will drill 6,138 oil and gas wells next year – a roughly 2 per cent increase from the year before – but still expects drilling companies to struggle with low service prices.

    CAODC president Mark Scholz said drilling companies are running rigs for the clients that cost $30 million to build, but earning a day rate that they once would have expected on a $9-million drilling rig.

    “They can’t make a nickel,” he said, adding that drilling companies have barely been able to earn enough money to cover their costs and pay for maintenance.

    “We underestimate how much cost savings the producer has generated on the back of the drilling contractor and the well-servicing contractor in that they have generated a market that is unsustainable,” Scholz said, adding that some companies have been able to raise their prices, but that has been inconsistent and on a...

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