Oil 101 - Introduction to Drilling
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Oil 101 - A Free Introduction to Oil and Gas Introduction to Drilling Today we’re going to talk about the Drilling function of Upstream. If you missed our previous podcasts on Upstream Fundamentals and Exploration, be sure to go check them out. We’ll put the relevant links in the program notes. In this drilling overview we touch on the wildcat well and current drilling capabilities, offer more insight into the role of oilfield services, and give some historical perspective on this segment of upstream oil and gas. Drilling Details As we discussed in the Exploration podcast, the first step in adding value is to locating the oil and gas reservoirs that are often far below the surface, and in deeper offshore prospects. Even with the latest seismic technology and computer modeling, many characteristics of a prospect remain unknown until an exploratory or “wildcat” well is drilled. Repeating from that podcast, “you can’t find oil if you don’t drill wells.”
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Oil 101 - Introduction to Drilling
- 2. EKTINTERACTIVE.COM DRILLING This Intro to Drilling overview includes: Wildcat Well and Current Drilling Capabilities Oilfield Services History of Drilling
- 3. EKTINTERACTIVE.COM Locating Reservoirs The first step in adding value is locating the oil and gas reservoirs that are often far below the surface, and in deeper offshore prospects.
- 4. EKTINTERACTIVE.COM Even with the latest seismic technology and computer modeling, many characteristics of a prospect remain unknown until an exploratory or “wildcat” well is drilled. “You can’t find oil if you don’t drill wells.” Exploratory Wells
- 5. EKTINTERACTIVE.COM Offshore producing wells exist in 10,000 ft of water and are drilled over 20,000 ft deep into the earth’s surface. Offshore Exploration
- 6. EKTINTERACTIVE.COM Today, technologies are available for the industry to drill wells over 25,000 ft, with bottom hole temperatures exceeding 400⁰ and pressures approaching 20,000 PSI.
- 7. EKTINTERACTIVE.COM In both onshore and offshore operations, horizontal and deviated wells to maximize reservoir recovery are now the norm. J Shaped S Shaped Horizontal Drilling Horizontal Wells Deviated Wells
- 8. EKTINTERACTIVE.COM Drilling rig staff, technology, equipment and processes focus on getting this complex task done as efficiently, safely, and with the smallest environmental footprint possible. Environment, Efficiency, Safety
- 9. EKTINTERACTIVE.COM There are constantly new technical challenges in extracting hydrocarbons from deeper and more hostile and complex environments. Technical Challenges
- 10. EKTINTERACTIVE.COM The wildcat and subsequent development drilling operations can cost tens, if not hundreds of millions of dollars, and represent years of exploratory analysis. Available drilling technologies can limit the E&P operator’s ability to find and produce ever more scarce resources.
- 12. EKTINTERACTIVE.COM Oilfield Services (OFS) There is a common lack of understanding of the importance of the Oilfield Services industry (OFS). This $165 billion segment (in 2014) is both large and complex with literally hundreds of global participants.
- 13. EKTINTERACTIVE.COM What Oilfield Services Does Oilfield services companies design, produce and deliver both equipment and technical services needed to drill and complete wells.
- 14. EKTINTERACTIVE.COM Oilfield Services at the Wellsite In addition to the drilling rig contractor on the well-site, there can be 30-40 different contractors doing technical services like cementing, perforating, logging, and testing. Cementing Perforating Logging Testing
- 15. EKTINTERACTIVE.COM More on Oilfield Services In a separate module, we will present more depth on the OFS equipment, technologies and processes.
- 16. EKTINTERACTIVE.COM Join now for access to free eBooks, members only forums, and a growing body of digital learning content. Free eBooks include: History of Oil Upstream Fundamentals Midstream Fundamentals Downstream Fundamentals Business Processes/Risk Management Industry Trends Learn More!
- 18. EKTINTERACTIVE.COM Cable Tool Rigs In 1869, the first US discovery well in Pennsylvania was drilled to a depth of only 69 ft using what was known as a cable tool rig. These rigs operated by lifting and dropping a heavy string of tools into the borehole, with very slow progress.
- 19. EKTINTERACTIVE.COM Kelly Rotary System The Kelly Rotary System was first used at Spindletop, Texas, in 1901, and struck the famous Lucas gusher that went on to produce 100,000 barrels per day. It became the most common way to drive the drill string and cutting bit until the 1980s.
- 20. EKTINTERACTIVE.COM Top-Drive System In 1981, engineers at Transocean partnered with National Oilwell Varco (NOV) for an R&D program called the Top- Drive System. Today, top drive technologies are essential to successful deepwater and long horizontal well drilling.
- 21. EKTINTERACTIVE.COM Some Oilfield Service companies have a long heritage. History of OFS Companies
- 22. EKTINTERACTIVE.COM Baker Hughes Hughes Tool Company (now Baker Hughes) was established in 1909, when Howard Hughes, Sr. patented a roller cutter bit that dramatically improved the rotary drilling process.
- 23. EKTINTERACTIVE.COM Halliburton In 1919 – Erle P. Halliburton established the “New Method Oil Well Cementing” Company in Oklahoma.
- 24. EKTINTERACTIVE.COM Schlumberger Also in 1919 – Conrad and Marcel Schlumberger and their father invented a downhole well evaluation technique which became the basis for the Schlumberger Corporation.
- 26. EKTINTERACTIVE.COM There's More? This Intro to Drilling material was taken from our Oil 101: Introduction to Oil and Gas course.
- 27. EKTINTERACTIVE.COM EKT Interactive staff have provided oil and gas training since 1986. Visit us at www.ektinteractive.com to learn more. Who are we?
Editor's Notes
- Hi, welcome to Oil 101, the podcast. My name is Doug Stetzer, and I’m content and community manager for EKT Interactive. This content is taken from our Upstream e-learning modules which were developed by industry experts with decades of experience. More content on this topic is available in the free member’s content library at www.ektinteractive.com. Today we’re going to talk about the Drilling function of Upstream. If you missed our previous podcasts on Upstream Fundamentals and Exploration, be sure to go check them out. We’ll put the relevant links in the program notes.
- In this drilling overview we touch on the wildcat well and current drilling capabilities, offer more insight into the role of oilfield services, and give some historical perspective on this segment of upstream oil and gas.
- As we discussed in the Exploration podcast, the first step in adding value is locating the oil and gas reservoirs that are often far below the surface, and in deeper offshore prospects.
- Even with the latest seismic technology and computer modeling, many characteristics of a prospect remain unknown until an exploratory or “wildcat” well is drilled. Repeating from that podcast, “you can’t find oil if you don’t drill wells.”
- Offshore producing wells exist in 10,000 feet of water and are drilled over 20,000 feet deep into the earth’s surface
- Today, technologies are available for the industry to drill wells over 25,000 feet, with bottom hole temperatures exceeding 400 degrees and pressures approaching 20,000 PSI.
- In both onshore and offshore operations, horizontal and deviated wells to maximize reservoir recovery are now the norm.
- Drilling rig staff, technology, equipment and processes focus on getting this complex task done as efficiently, safely, and with the smallest environmental footprint possible.
- There are constantly new technical challenges in extracting hydrocarbons from deeper and more hostile and complex environments.
- The wildcat and subsequent development drilling operations can cost tens, if not hundreds of millions of dollars, and represent years of exploratory analysis. Available drilling technologies can limit the E&P operator’s ability to find and produce ever more scarce resources. So there is a lot riding on these results.
- Now let’s talk a little bit about Oilfield Services. We introduced the oil field services segment in our Intro to Upstream but let’s discuss it some more.
- There is a common lack of understanding of the importance of the Oilfield Services industry, often called OFS. This $165 billion segment (in 2014) is both large and complex with literally hundreds of global participants.
- Oilfield services companies design, produce and deliver both equipment and technical services needed to drill and complete wells.
- In addition to the drilling rig contractor on the well-site, there can be 30-40 different contractors doing technical services like cementing, perforating, logging, and testing.
- In a separate module, we will present more depth on the OFS equipment, technologies and processes to help you understand their contributions and the way that they have become essential to overcoming industry challenges.
- This podcast episode is brought to you by EKT Interactive’s Oil 101 - a free Introduction to oil and gas. Within this free, members-only content area you’ll find eBooks on oil and gas industry fundamentals, relevant articles on key oil and gas topics, and a growing body of digital learning content. Claim your free membership and join the Oil 101 learning community at www.ektinteractive.com today.
- If you’ve listened to our other introductory podcasts, you know that we like to drop in some historical perspective. So here’s some background on drilling and how we got where we are today.
- In 1869, the first US discovery well in Pennsylvania was drilled to a depth of only 69 feet using what was known as a cable tool rig. Cable tool rigs originated in China and were the preferred drilling system until about 1900. These rigs operated by lifting and dropping a heavy string of tools into the borehole, with very slow progress – in some cases barely making 10 feet a day.
- The Kelly rotary system was first used at Spindletop, Texas, in 1901, and struck the famous Lucas gusher that went on to produce 100,000 barrels per day. It became the most common way to drive the drill string and cutting bit until the 1980s.
- In 1981, an engineer at Transocean had the vision of drilling down from the top of the drillstring to add complete stands of drill pipe. They partnered with National Oilwell Varco (NOV) for an R&D program for what will become the Top-Drive System. This marked the end of the use of the Kelly Rotary drilling process. Today, top drive technologies are essential to successful deepwater and long horizontal well drilling.
- Some Oilfield Service companies have a long heritage.
- Hughes Tool Company (now Baker Hughes) was established in 1909, when Howard Hughes, Sr. patented a roller cutter bit that dramatically improved the rotary drilling process.
- In 1919 – Erle P. Halliburton established the “New Method Oil Well Cementing” Company in Oklahoma.
- Also in 1919 – Conrad and Marcel Schlumberger and their father invented a downhole well evaluation technique which became the basis for the Schlumberger Corporation.
- If you want to learn more about these industry milestones, check out the interactive timeline on our History of Oil page, or the History of Oil podcast. Links to those resources are in the program notes.
- Thanks for listening. We hope you’ve learned a few things about the history and drilling function of upstream and the Oilfield Service companies that are essential to making it happen!
- Be sure to share this as you see fit, and rate us on iTunes if you have a chance. If you want more information about our Oil 101 - ‘Microbes to Markets’ content, go to www.ektinteractive.com and register to access our free members content library. Thanks a lot and we’ll see you next time.