The document describes the author's experience in the 1980s of managing the stacking of oil rigs during an industry downturn when oil prices collapsed. It discusses the strategies used to reduce stacking costs, such as remote monitoring, corrosion prevention, dehumidification, and staff reductions. The author has since founded Integrated Rig Stacking Solutions LLC to provide expertise in rig stacking through collaboration with industry specialists in areas like corrosion protection, ventilation, monitoring, and mooring.

1. 0
10
20
30
40
50
60
70
80
90
100
Jackup
Floater
$/bbl
WTI
Infla@on
adjusted
309
Jackup
deliveries
2006-­‐2018
220
Floater
deliveries
2008-­‐2020
108
companies
since
2008
!!!
Build
Cycles
vs
Oil
Price
Not
since
the
early
80’s
has
the
industry
seen
a
collapse
in
oil
price
coincident
with
a
massive
oversupply
of
rigs.
It
was
almost
two
decades
before
ac@vity
recovered
and
dayrates
rebounded
to
a
sensible
ROI.
In
1984
I
was
the
commissioning
manager
of
a
newbuild
semi
in
Aberdeen,
Scotland
for
Global
Marine
…
one
of
seven
rigs
operated
from
that
office.
By
the
summer
of
1986
Global
Marine
had
filed
for
Chapter
11
bankruptcy
and
all
the
North
Sea
rigs
were
stacked
(mine
was
returned
to
creditors).
The
Area
Manager
and
the
other
six
rig
managers
were
either
released
or
reassigned,
and
I
stepped
up
to
the
role
of
Area
Manager
with
immediate
responsibility
of
ge_ng
the
stack
costs
down
or
losing
all
the
rigs
to
creditors.
I
nego@ated
a
strategy
with
the
local
authori@es
to
moor
the
three
semisubmersibles
unmanned
in
the
Firth
of
Forth
and
nest
the
jackups
in
proximity
with
a
fast
response
team
in
proximity.
Offshore
headcount
was
cut
from
700
to
10
(5-­‐on/5-­‐off),
the
staff
headcount
was
cut
from
55
to
5,
and
the
insurance
terms
were
renego@ated.
Aggregate
stack
costs
were
reduced
to
less
than
$5k/day
per
rig.
Aggressive
as
this
was,
it
was
done
responsibly,
with
due
aben@on
to
asset
preserva@on,
and
with
appropriate
considera@on
for
the
challenges
of
an
eventual
startup.
• Remote
monitoring
was
installed
on
the
semis,
and
abended
by
the
fast
response
team
on
the
jackups
…
excursion
alarms,
anchor
tensions,
inclinometers,
bilge
level
sensors,
intrusion
alarms,
and
nav
aids.
• A
comprehensive
applica@on
of
vola@le
corrosion
inhibitors
…
powders,
emibers,
lubricants
and
waxes.
• Dehumidifica@on
of
the
accommoda@on
and
all
the
machinery
&
working
spaces.
Humidity
levels
were
maintained
at
40-­‐45%
…
sufficient
to
prevent
corrosion,
but
not
compromise
elastomers.
• Portable
enclosed,
skid-­‐mounted
generators
of
~
100
HP
were
installed
topside
to
power
par@cularly
the
dehumidifica@on
load.
Fire
sensors
registered
remotely
and
CO2
smothering
ac@vated
automa@cally.
• Cer@fica@on
was
suspended
as
was
permibed.
• Startup
requisi@ons
were
prepared.
• A
priori@zed
recall
list
was
prepared
before
releasing
the
crews,
and
best
effort
was
made
to
keep
contact.
Recognizing
that
the
circumstances
of
1986
had
repeated,
in
August
2015
I
introduced
a
collabora@ve
venture
of
the
industry
experts
in
the
above
disciplines
…
Integrated
Rig
Stacking
Solu@ons
LLC,
for
which
I
act
essen@ally
as
a
business
development
manager.
Our
members
can
either
augment
contractor
ini@a@ves,
or
collec@vely
we
can
undertake
a
comprehensive
turnkey
offering.
Chip
Keener
–
President
+1
832-­‐526-­‐4310
mobile
chip@keener-­‐consulGng.com
www.keener-­‐consulGng.com
Integrated Rig Stacking Solutions LLC

2. Integrated Rig Stacking Solutions LLC
A
collaboraGon
of
experGse
in
the
preservaGon,
maintenance,
mooring
and
monitoring
of
offshore
rigs
Chip
Keener
–
President
+1
832-­‐526-­‐4310
mobile
chip@keener-­‐consulGng.com
www.keener-­‐consulGng.com
Experts
in
the
applicaGon
of
VCI
products,
with
a
wealth
of
experience
in
laying
up
rigs
www.universalcorrosion.com
150
years
of
combined
experience
in
engineering
marine
venGlaGon
systems,
delivering
desiccant
dehumidificaGon
soluGons
in
offshore
applicaGons
www.eldridgeusa.com
(VolaGle
Corrosion
Inhibitors)
www.cortecvci.com
The
world
leader
in
VCI
products
in
facilitaGon
of
strategies
to
responsibly
unman
drilling
rigs
www.rigstat.com
Industry
experGse
in
remote
monitoring
&
control
integrated
rig
operaGons
achieve
project
objecGves,
and
support
field
operaGons
www.ideea-­‐llc.com
Experienced
company
with
the
technical
depth
and
experGse
to
support,
and
effecGve
soluGons
to
moor
dynamically-­‐posiGoned
rigs,
parGcularly
in
scenarios
where
they
may
be
unmanned
www.intermoor.com
The
global
mooring
industry
leader,
providing
customized