• 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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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...

    READ MORE AT ROUGHNECK CITY 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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    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

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    ‘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...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    The Eagle Ford Shale Is Back, Kind Of

    It isn’t the boom days when oil trucks created big-city traffic jams on gravel roads and a night at a mediocre hotel cost $300. But the Eagle Ford Shale is back from the bust - sort of - at a level that’s admittedly more middle-aged, less teenager.

    This Dec. 15 2013 photo shows the Immaculate Conception Catholic Church steeple beyond an oil pump in Panna Maria Texas. The Eagle Ford Shale oil field pumps around 1.2 million barrels dailyThe 400-mile South Texas oil field, which sweeps from Laredo to College Station, has produced around 2.5 billion to 2.6 billion barrels since the first wells were drilled in late 2008, said Allen Gilmer, founder of the research firm Drillinginfo, who spoke Thursday at Hart Energy’s DUG Eagle Ford Conference, held last week at the Convention Center.

    It isn’t the hottest oil field anymore. All the attention has shifted to the Permian Basin in West Texas and eastern New Mexico, and to the South Central Oklahoma Oil Province, known as the SCOOP, and the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties, or STACK.

    But there’s still an awful lot of oil in South Texas.

    Drillinginfo estimates the field holds around 20 billion barrels of recoverable crude oil, said Gilmer.

    “It could be higher, but frankly 20 billion isn’t a bad number,” Gilmer said. It’s about what Texas A&M has...

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    3 Hurt In Oilfield Explosion In White County Illinois

    One man was seriously hurt in an oil rig explosion in southern Illinois.

    One man was seriously hurt in an oil rig explosion in southern Illinois.It happened Tuesday east of Crossville, just off Million Dollar Road. 

    Sheriff Doug Maier says three men from Precision Oil Field Service were working on a well owned by Citation Oil.

    He says a part broke loose and something sparked.

    We're told it caused a huge explosion with large flames.

    Two of the men were not hurt. 

    A report from the Sheriff's Office says 33-year-old Steven Smith was flown to the hospital with severe burns to his arms, chest, and legs. 

    He's now in the burn unit at University of Louisville Hospital. 

    The fire took about an hour to put out. 

    Source: 14 News

    READ MORE AT ROUGHNECK CITY NEWS ⇨

    Four Gulf Of Mexico Oil Platforms Shut After Enchilada Fire

    Royal Dutch Shell said on Tuesday that production at four oil platforms in the Gulf of Mexico has been shut in the wake of a Nov. 8 fire at its Enchilada platform.

    File Photo“Production is shut in at the Shell-operated Enchilada and Salsa platforms, as well as the associated Hess-operated Conger field,” in which Shell has a 37.5 percent share, it said in a statement.

    “In addition, Shell safely shut in all production operations at its Auger platform due to downstream constraints caused by this incident.”

    Production from Auger flows back to Enchilada for transport to shore.

    There was still no timeline for the resumption of normal operations, Shell said.

    “Shell is in the process of developing a plan to repair damage caused by an operational incident on its Enchilada platform and safely re-deploying personnel.”

    Source: Reuters

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    Big-Name Lawyer Apparently Sues Wrong Oilfield Companies

    Litigation over fatal rig explosion has plenty of complications, including a lawyer seeking court action against worker's widow after she fired him.

    Litigation over fatal rig explosion has plenty of complications including a lawyer seeking court action against workers widow after she fired himTony Buzbee, a personal injury lawyer who earned millions fighting oil companies, maritime operators and insurance companies, got to the courthouse fast with his latest case representing the family of a Katy man recently killed in a rig explosion near New Orleans.

     So fast, that he sued the wrong companies.

    But this is just one complication in a case that has become even more complicated over the past few days. Buzbee was fired by the widow of Tim Morrison, then sued a Morrison family friend for interfering in the case and went to court to force Morrison's family to pay his fee.

    Morrison, 44, was killed Oct. 15 when an oil and gas storage rig on Lake Pontchartrain exploded. Buzbee in the lawsuit blamed two Houston companies, alleging that the subcontractors hired to clean pipes on the rig used cleaning materials that ignited and caused it to explode.

    But one company named in the suit doesn't seem to exist. And the other, a Houston industrial cleaning company, has no connection to the rig or the rig's owner, Clovelly Oil Co. of New...

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    Jurong Shipyard Fined Over $294,000 For Rig Tilt Accident

    Singapore's Ministry of Manpower has imposed a fine of $400,000 ($294,247) on Sembcorp Marine’s Jurong Shipyard for failing in its duty to take reasonable measures necessary to ensure the safety and health of employees in a rig construction accident that occurred at the yard almost five years ago.

    Sembcorp Jurong Shipyard rig tilt incidentIn December 2012, Noble Regina Allen, an oil rig under construction at Jurong, tilted suddenly during testing of the jack-up system. About 1,000 workers onboard the rig had to evacuate through only one escape gangway, resulting in injuries to 89 workers.

    An investigation conducted by the ministry has found that the jacking control system of the rig was not designed to be fail-safe. In addition, the shipyard had failed to take adequate safety measures for the testing of the jack-up system of the oil rig by not undertaking an adequate risk assessment, not implementing control measures in safe work procedure and not providing adequate means of egress and escape.

    "As the principal contractor, Jurong Shipyard had the duty to plan, manage and monitor the construction of projects to ensure work was performed in a safe manner. This included emergency arrangements and procedures. The heavy fine reflected the very serious safety breaches by Jurong Shipyard that had put at risk the lives of 1,000 workers on...

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    Ensign Puts New Rigs Into Field

    Ensign Energy Services Inc., which currently operates three rigs in southeast Saskatchewan and seven in western Saskatchewan, is looking to expand its fleet again after dramatic shrinkage during the downturn.

    Just under two years ago Ensign was cutting up old drilling rigs at Oxbow. Now they have resumed building new rigs having completed rigs started in 2014. File photo.Nearly two years ago, Ensign cut up 13 drilling rigs in southeast Saskatchewan for scrap at its Oxbow yard. The rigs went under the hydraulic shears starting in January 2016.

    The company currently has 70 rigs in Canada, down from 83 in 2016. It has a further 84 rigs in the United States, down from 90 a year ago. It’s international rigs total 46, down from 50 in 2016.

    On the service rig side, in Canada, it dropped from 71 to 65 service rigs over the same period. U.S. operations added a rig, to 45.

    Operating days across the company's fleet were higher in the third quarter of 2017 when compared to the third quarter of 2016 due primarily to increased demand for oilfield services caused by a modest price recovery of crude oil and natural gas commodity prices, the company said in a release.

    With a smaller drilling fleet, their operating days increased 63 per cent in Canada, from 1,073 to 1,744 operating days for the first three quarters of 2017 compared to...

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    Norwegian Oil Production Halted On Safety Violation

    Oil production from the Goliat floating platform in the Barents Sea is closed down because of regulatory violations, a safety authority in Norway said.

    Italian energy company Eni ordered to halt oil production from its Goliat floating platform to address electrical concerns. Photo courtesy of Eni.Authorities with the Petroleum Safety Authority in Norway carried out an audit of Eni operations at the Goliat floating production storage and offloading unit in the Norwegian waters of the Barents Sea. The audit was a follow-up of a survey of requirements related to the electricity facilities, particularly the person in charge.

    "The audit report identified further breaches of the regulations," the regulator said in a statement

    Production is idled until Eni satisfies concerns related to ignition-control services and other measures the PSA said could reduce the threat of ignition. There have been no reports of injury.

    Norway is important for the European energy sector as one of its main oil and gas exporters. The country itself is party to the broader effort to address climate change. Goliat draws its electricity from a power cable tied to the mainland, which Eni said would reduce emissions of carbon dioxide, a potent greenhouse gas, by as much as 50 percent.

    Eni started producing oil at the Goliat field located about 50 miles...

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    Houston Could Add 70,000 Jobs Next Year, Forecast Says

    The Houston economy, shaking off the oil bust and rebounding from Hurricane Harvey, could create as many 70,000 jobs next year and return to a normal pace of employment growth after the worst energy downturn in decades.

    As price of crude edges higher so do citys fortunesThe city's fortunes will depend on whether drilling rigs can keep working in Texas oil fields well into 2018, providing sales and orders for production companies, manufacturers and energy service firms that employ tensof thousands across the region. With crude prices rising - they settled above $57 a barrel Monday for the first time in more than two years - the chances of a sustained drilling rebound are getting better.

    "We've turned the corner," said Bill Gilmer, director of the Institute for Regional Forecasting at the University of Houston, in his semiannual forecast on Monday. "Looks like we have growth in front of us. We really need help from oil markets to get that growth heated up."

    The region has waited three years to hear such a prediction. The collapse in crude prices that began in mid-2014 cost the Houston area some 77,000 oil jobs, weighing on a local economy that barely grew as energy companies slashed spending and workforces.

    Still, the Houston economy proved more resilient than during the ruinous oil bust of the mid-1980s, even though prices fell...

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    Trump Urges Native American Leaders to Start Drilling for Resources—Despite Federal Hurdles

    President Donald Trump reportedly encouraged Native American tribal leaders to extract resources from the land they control—regardless of federal regulations—during a meeting in late June.

    Trump meets with state and tribal leaders at the White House. PhotoEvan Vucci  APAxios reported late Sunday that Trump told tribal leaders: “…What are they going to do? Once you get it out of the ground, are they going to make you put it back in there? I mean, once it’s out of the ground it can’t go back in there. You’ve just got to do it. I’m telling you, Chief, you’ve just got to do it.”

    Newsweek has not independently confirmed these comments, though Trump’s public remarks during a roundtable meeting on energy on June 28 mirrored the sentiments of his public remarks:

    “Many of your lands have rich, natural resources that stand to benefit your people immensely,” he said. “These untapped resources of wealth can help you build new schools, fix roads, improve your communities and create jobs—jobs like you’ve never seen before.

    “We’re becoming more and more energy-dominant. I don’t want to be energy-free, we want to be energy-dominant in terms of the world.”

    In response to a slide presentation that tribal leaders had prepared to explain the regulatory barriers to extracting resources, Axios reported that Trump said, “But now it’s me. The...

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    Mexico Announces Biggest Onshore Oil Find in 15 Years

    Mexican President Enrique Pena Nieto said on Friday state oil company Pemex has made a "major" oil and gas discovery with an estimated 1.5 billion barrels of crude equivalent, its largest onshore find in 15 years. The new field, dubbed Ixachi-1, is located in the eastern state of Veracruz near Pemex infrastructure, meaning it can be tapped "relatively soon, and at low costs", Pena Nieto was quoted as saying by AFP.

    The fields proven probable and possible reserves are 350 million barrels.The estimated volume makes it "the largest onshore find the company has made in the past 15 years", he said to applause from invitees at an event in the central state of Hidalgo.

    The field's proven, probable and possible reserves—an estimation of the amount of oil and gas that can be brought to market near-term—are 350 million barrels, the president said.

    Pemex said the size of the find may prove to be larger and even double. Industry experts urged caution, however.

    "It's very early to talk about reserves ... More work needs to be done to see how big it is," said Gonzalo Monroy of Mexico City energy consultancy GMEC. But he said any new find is good news for Pemex, Mexico's largest company, which has struggled with declining production in recent years.

    "Pemex has discovered there is still considerable exploration potential" in Mexico, he...

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