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UNIVERSALWASTE

WINTER MEETINGWRAP-UP

JULY/AUGUST 2017

LEROY LAWLAW OF THE LAND

Bakersfield, CACasper, WYFarmington, NMGillette, WYHobbs, NMLa Salle, COOdessa, TXOklahoma City, OKPampa, TXPerryton, TXRock Springs, WYVernal, UTWilliston, ND

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ISO 9001:2008, ISO - 2409API Speci�cations Q-1, 9th Ed. Q1-2311

API Monogram, 8C-0262

Quality Well Servicing, Workover, and Drilling Equipment

Model 93R Closed-HeadTubing/Casing Tong

Model 4500/5500/5600/57801/57802-100TK Tubing Tong

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Model RS Tubing Tong Model M40/M50/M75Rod Tong

Model “B” / “C” / “CHD” Spider 100-Ton Center LatchTubing Elevator

65-Ton / 100-TonSide Door Tubing Elevator

WELL SERVICING JULY/AUGUST 2017 3

Volume 58, Number 4July / August 2017

FEATURES

WELLSERVICINGMAGAZINE

FUTURE ROUGHNECKJOBS WILL REQUIREMORE BRAIN THANBRAWN

SCHOLARSHIP GOLF TOURNAMENT HELD

DENNISDOUGLAS

OFFICIAL PUBLICATION OF THE ASSOCIATION OF ENERGY SERVICE COMPANIES

Executive Director: Kenny Jordan [email protected]; (713) 781-0758

Editor: Kristin Hincke [email protected]; (405) 476-5348

Production & Design: Public Strategies; publicstrategies.com

Contributing Writers: Sharyn Alden, Mark Crawford, Andy Maslowski, Al Pickett

Guest Writers: Rick Ingram

AESC: www.aesc.net

Oilfield Theft: www.stopoilfieldtheft.com

Unless expressly stated otherwise, all editorial and advertising material published is the opinion of the respective authors and/or companies involved and should not be construed as official action by or approved by Publisher or the Association. No part of this publication may be reproduced in any form without the express written consent of the publisher.

If available, extra copies of current issue $4.00 and back issues $8.00. All prices for U.S.A. © 2016 all rights reserved.

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CHANGE OF ADDRESS: Please send copy of mailing label with new address to Well Servicing, 121 E. Magnolia, Suite 103, Friendswood, TX 77546

Official publication of the Association of Energy Service Companies. Editorial, business and advertising offices: 121 E. Magnolia, Suite 103, Friendswood, TX 77546; (713) 781-0758 or (800) 692-0771; Fax (713) 781-7542

Well Servicing (USPS 537-670)

(ISSN 0043-2393) is published bimonthly by Workover/Well Servicing Publications, Inc., 121 E. Magnolia, Suite 103, Friendswood, TX 77546.

A wholly owned subsidiary of the Association of Energy Service Companies. Periodicals postage paid at Houston, Texas and additional mailing offices.

POSTMASTER: Send address changes to Well Servicing, 121 E. Magnolia, Suite 103, Friendswood, TX 77546

14

16

34

20Bakersfield, CACasper, WYFarmington, NMGillette, WYHobbs, NMLa Salle, COOdessa, TXOklahoma City, OKPampa, TXPerryton, TXRock Springs, WYVernal, UTWilliston, ND

The most completeWell Servicing and Specialty Tool

Inventoryis now available

24 hours a day, 7 days a week!

HSC is the Exclusive Distributor for WESTCO International

Made in the USA

ISO 9001:2008, ISO - 2409API Speci�cations Q-1, 9th Ed. Q1-2311

API Monogram, 8C-0262

Quality Well Servicing, Workover, and Drilling Equipment

Model 93R Closed-HeadTubing/Casing Tong

Model 4500/5500/5600/57801/57802-100TK Tubing Tong

(MS Back-Up, Single- or Dual-AirBack-Up)

Model RS Tubing Tong Model M40/M50/M75Rod Tong

Model “B” / “C” / “CHD” Spider 100-Ton Center LatchTubing Elevator

65-Ton / 100-TonSide Door Tubing Elevator

WHAT THE NEW LOCKOUT/TAGOUT REVISION COULD MEAN FOR WORKPLACES

Cudd Energy Services (CES) develops coiled tubing solutions to meet the challenges of conventional and unconventional well completions.

Our technology features a wider selection of string designs with higher yield strength capacities and increased rigidity. This provides quicker trip times, increased productivity and improved operational safety.

Each operation is implemented by highly qualifi ed personnel, who possess extensive in-house training and industry certifi cation, to ensure each operation is completed safely and effi ciently.

For more information about our coiled tubing solutions, visit us at www.cudd.com.

COILED TUBING TECHNOLOGYF O R T O D A Y ’ S C O M P L E T I O N C H A L L E N G E S


Volume 58, Number 3July / August 2017

CONTENTS

WELLSERVICINGMAGAZINE

PRESIDENT’S OUTLOOK

EXECUTIVE DIRECTOR’S CORNER

WELL SERVICE RIG COUNT

SAFETY TALK

HOW HAS THE LAST DECADE CHANGED SERVICE COMPANIES?

MARKET REPORT

• BP Makes Major Technological Discovery of 200 Million Barrels of Hidden Subsea Oil

• The Next Big Energy Producer May be the Montney, Canada’s ‘Permian of the North’

• OPEC and Allies Agree to Extend Production Cuts into 2018 in Attempt to Rebalance Global Market

• Arctic Drillers Off Norway are Hunting for Huge Finds in the Underexplored Barents Sea

CONGRESSIONAL SPOTLIGHT

Rep. Mike Johnson (R-LA-4)

INDUSTRY ITEMS

ADVERTISER’S INDEX

6

24

28

68

101122

24

37

28

38

8 10

22

ABOUT THE COVER Abandoned pumping unit in Harris County, Texas. Photo by Joyce Ryel.

WELL SERVICING EDITORIAL, BUSINESS AND ADVERTISING OFFICES121 E. Magnolia, Suite 103, Friendswood, TX 77546 (713) 781-0758 or (800) 692-0771

Cudd Energy Services (CES) develops coiled tubing solutions to meet the challenges of conventional and unconventional well completions.

Our technology features a wider selection of string designs with higher yield strength capacities and increased rigidity. This provides quicker trip times, increased productivity and improved operational safety.

Each operation is implemented by highly qualifi ed personnel, who possess extensive in-house training and industry certifi cation, to ensure each operation is completed safely and effi ciently.

For more information about our coiled tubing solutions, visit us at www.cudd.com.

COILED TUBING TECHNOLOGYF O R T O D A Y ’ S C O M P L E T I O N C H A L L E N G E S

WELL SERVICING JULY/AUGUST 20176

Last year, I asked some past presidents of the AESC for any advice on my term as president. One thing they all said was to enjoy the year because it will be over before you know it. They were all correct. This past year has been one of the most memorable years of my life, including a second chance at life following my heart attack.

As president of the AESC, I was able to travel to most of the local chapters representing the association. I spoke at chapter meetings in Victoria TX, Longview TX, Oklahoma City, OK, and Great Bend, KS. I attended fund raisers in Dallas, Houston, Midland and Odessa TX, Oklahoma City, Laurel, MS, and Bakersfield, CA. At every event I attended, I was inspired by the hard work and dedication of our local chapter members. They are the true backbone of our organization and are not thanked enough for all they do.

Our Scholarship Committee met in May to select the 2017 AESC National Scholarship recipients. This year we were able to award a total of 68 scholarships. (32 new scholarships and 36 renewals). From the total of 68 scholarships awarded, there were 34 associate member companies represented, 33 sustaining members and one producer member.

This year, the AESC Frank Pool Memorial Golf Tournament raised nearly $9,000, and the auction at the AESC Annual Winter Meeting netted another $8,000 for the Scholarship Fund. One of the many things the AESC does is give back. Through local and national fundraisers such as golf tournaments, fishing tournaments, clay shoots and auctions, we have raised almost $4 million to date.

At the AESC Annual Winter Meeting in Oklahoma City this past February, the board of directors passed the motion to allow associate members to be national president. In the past, only sustaining members could hold the office of president. Our organization is made up of many outstanding associate members, and I look forward to an associate member being

president of the AESC in the future.

As my tenure as AESC president comes to an end, there are many people I would like to thank.

First, I would like to thank everyone at Vermejo Energy Services for “taking up the slack” this past year during my trips.

I want to express my thanks to AESC Executive Director Kenny Jordan and staffers Roni Ashley and Susan Dudley for their dedication and support to the energy service industry. Also, I wish to extend my thanks to Kristin Hincke, editor of Well Servicing magazine, for doing a fantastic job with our magazine.

I would also like to thank my wife Nancy. She attended most of the chapter meetings and fund raisers this past year with me, keeping me awake on those long road trips.

Lastly, I’d like to extend a big heartfelt thanks to the membership for allowing me to represent the AESC for the past year. Meeting and spending time with the employees of our member companies has reinforced my belief that the AESC is a great organization.

PRESIDENT’S OUTLOOK

JACKY WILLIAMSON2016-2017

AESC President

Vermejo Energy Services

Perryton, Texas

877.562.5187 (Toll-free U.S. & Canada) | +1.202.682.8041 (Local & International) | [email protected] | www.api.org© 2017 – American Petroleum Institute, all rights reserved. API, the API logo, the “It’s times like these,” and the “It All Starts” taglines are trademarks or registered trademarks

of API in the United States and/or other countries.

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No matter where you go around the world, the oil and gas industry relies on API Certification, API Training, API Events, API Standards, API Statistics, and API Safety to meet the highest levels of performance. Show the world what you’re made of. Start with API Global. www.API.org

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877.562.5187 (Toll-free U.S. & Canada) | +1.202.682.8041 (Local & International) | [email protected] | www.api.org© 2017 – American Petroleum Institute, all rights reserved. API, the API logo, the “It’s times like these,” and the “It All Starts” taglines are trademarks or registered trademarks

of API in the United States and/or other countries.

It’s times like these you need people like us.®

IT ALL STARTS WITH

API GLOBAL.ONSHORE. OFFSHORE. EVERY SHORE.

No matter where you go around the world, the oil and gas industry relies on API Certification, API Training, API Events, API Standards, API Statistics, and API Safety to meet the highest levels of performance. Show the world what you’re made of. Start with API Global. www.API.org

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ONE MILLION ORIENTATIONS AND GROWING

As our industry continues its slow recovery, we are seeing some hiring and new employees entering the workplace. It is incumbent on companies to make sure that those returning (no matter the skill level), can maintain and recognize a safe work environment, not only for themselves, but for the other workers on location. This means understanding not only the responsibilities within a worker’s own company, but having a basic knowledge of all operations so that workers can recognize the same in other service areas.

One of the “tools in the tool box” that many companies have utilized for a number of years is a program called SafeLand. It is a basic orientation for employees (new or even those that may be returning to the industry) taught by qualified instructors. It is hands-on training; no computer-based training is utilized at this time.

The origins of the program go back to the middle of 2000 when several E&P companies that were doing their own individual orientations were asked to come together as a group and create an orientation program for their contractors that would satisfy all of the participating companies’ requirements. Along with other industry associations, servicing contractors, and E&P companies, a group was formed that called itself SafeLand. The course modules were developed, along with the logistics of tracking and keeping records for those that had been through the orientation. Please note again that this was never intended to be “training,” but a basic orientation program.

Many companies said it would be impossible to bring this all together and create a successful program. Well, it is estimated that this summer, the program will have one million cards issued for the SafeLand program. That means that the program will have educated one million people on the hazards of the oil and gas industry. That is phenomenal if you think about what this means to our industry. How many injuries have been avoided? How many fatalities may have been prevented? There is no way to definitively quantify those questions, but I believe it is fair to say that SafeLand has had an impact on our industry in terms of worker safety.

Overcoming the naysayers and critics of the program when it was originally presented was, at many times, very frustrating, but when the ultimate goal is the safety of the workers involved, we all knew we had to carry through to make this idea a reality.

So our congratulations to all of those originally involved with the implementation (the names and companies are too many to mention here, but you know who you are), those groups that now accredit the program (PEC, IADC, etc.), all of the instructors who have worked to become trainers of SafeLand, and most importantly, the workers in the field who put their orientation to good use on a daily basis.

One million and going strong! For more information, go to www.safelandusa.org.

EXECUTIVE DIRECTORCORNER

KENNY JORDANAESC ExecutiveDirector

NOV mobile rigs are a family of names recognized for over half a century throughout the oilpatch. We embrace our past because we understand it builds a solid foundation for our future. Our newest mobile rigs combine the best technologies and learnings from our rich history with innovations in materials, manufacturing and efficiency to give you optimal performance you can rely on, and a global support network wherever you may be.

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© 2016 | National Oilwell Varco | All rights reserved

NOV_Land_Mobile Rig_STEP 2.indd 1 9/29/2016 10:12:58 AM


NOV mobile rigs are a family of names recognized for over half a century throughout the oilpatch. We embrace our past because we understand it builds a solid foundation for our future. Our newest mobile rigs combine the best technologies and learnings from our rich history with innovations in materials, manufacturing and efficiency to give you optimal performance you can rely on, and a global support network wherever you may be.

CABOT™ | CARDWELL™ | COOPER™ | FRANKS™ | IDECO™ KREMCO™ | SKYTOP BREWSTER™ | WILSON™

To find out more, please contact us at: nov.com/mobilerigs

A legacy rooted in experience.NOV mobile rig family

© 2016 | National Oilwell Varco | All rights reserved

NOV_Land_Mobile Rig_STEP 2.indd 1 9/29/2016 10:12:58 AM


Area

A P R I L 2 0 1 7 12 months agoYear on year change

in active rig countActive Rigs

Available Rigs

Idle Rigs

Stacked Rigs

Active % of total

Active Rigs

% Utilization

Texas Gulf Coast 160 49 74 59 47% 130 41% 30

Arklatex 65 11 54 82 31% 42 22% 23

Eastern U.S.A. 39 15 27 19 39% 50 43% (11)

South Louisiana 19 6 8 2 54% 11 37% 8

Mid-Continent 135 42 78 104 38% 90 23% 45

West Texas / Permian 391 38 210 271 43% 337 37% 54

Rocky Mountain 192 57 157 62 41% 197 36% (5)

West Coast / Alaska 175 3 176 91 39% 152 31% 23

TOTAL U.S. 1176 221 784 690 41% 1009 33% 167

Area

M A Y 2 0 1 7 12 months agoYear on year change

in active rig countActive Rigs

Available Rigs

Idle Rigs

Stacked Rigs

Active % of total

Active Rigs

% Utilization

Texas Gulf Coast 166 39 79 60 48% 121 37% 45

Arklatex 13 57 76 29% 37 19% 24 16

Eastern U.S.A. 45 20 29 23 38% 48 39% -3

South Louisiana 19 6 10 2 51% 12 40% 7

Mid-Continent 125 63 71 108 34% 99 25% 26

West Texas / Permian 415 37 222 271 44% 333 36% 82

Rocky Mountain 208 65 157 66 42% 184 35% 24

West Coast / Alaska 180 5 170 90 40% 155 32% 25

TOTAL U.S. 1219 248 795 696 41% 989 33% 230

WELL SERVICE RIG COUNTWelcome to the Association of Energy Service Companies (AESC) Service Rig Count. This service is being provided by the AESC and is published in each issue of Well Servicing magazine and now may be accessed directly on the AESC website (www.aesc.net). Simply go to Industry Resources on the top tab, a drop-down box will show you “RIG COUNT” and click there.

Canadian rig count was provided by Topco Oilsite Products, but effective for the June 2016 Rig Count, they are no longer providing that service so it has been removed from the count.

Active Rig The rig is active if, on average, it is crewed and worked every day during the month.

Available Rig The rig is available if a rig has a crew and is ready to work, but is not working.

Idle Rig The rig is idle if the rig is capable of being put to work in less than 48 hours and does not require spending in excess of $50,000 to activate it, and does not have a crew currently assigned.

Stacked Rig The rig is stacked if the rig does not have a crew assigned and could not be put to work without significant investment in repairs and additional equipment in excess of $50,000.


This article will primarily focus on the portions of the recordkeeping rule dealing with employee involvement, drug testing, employee disciplinary actions, anti-retaliation, and safety incentives. This is a follow-up article from a previous Well Servicing magazine article

by Doug Huddleston with The Occupational Safety and Health Administration (OSHA).

OSHA 29 CFR 1904, Recording and Reporting Occupational Injuries and Illnesses, has been in place for forty years, but was recently updated to allow OSHA the authority for the electronic collection and publication of case-specific injury, illness and fatality data based on employer reporting, and to enable OSHA to cite employers in cases of retaliation against workers for reporting injuries and illnesses. Electronic reporting has recently been postponed until an unspecified date.

The following are specific elements of the recordkeeping rule which may affect your business.

OSHA example scenarios for each of these elements can be found by following this link: https://www.osha.gov/recordkeeping/modernization_guidance.html

Employee Involvement: The final rule requires an employer to inform employees of their right to report work-related injuries and illnesses free from retaliation. An employer must also be able to provide proof that the employees received this information. A simple way for employers to meet this requirement is by posting the April, 2015 or later version of OSHA’s Job Safety and Health: It’s the Law poster and reviewing it with the workers.

The previous version of the recordkeeping rule required employers to establish a reasonable way for employees to report work-related injuries and illnesses promptly, but this rule goes on to say that a procedure is not reasonable if it would deter or discourage a reasonable employee from reporting a workplace injury or illness. Employers must establish their own procedures for reporting and should ensure their procedure accounts for work-related injuries and illnesses that build up over time, have latency periods between exposure and the appearance of symptoms, or do not initially appear serious enough to the employee to require reporting immediately. A procedure that requires immediate reporting without accounting for these circumstances

would not be considered reasonable by OSHA. It may be considered unreasonable if employer reporting guidelines are overly complicated, if an employee must travel a significant distance to report, or must report the same injury or illness multiple times to multiple levels of management.

Drug Testing: The rule does not prohibit drug testing of employees, and does not preclude DOT drug testing rules or any other federal or state law. It only prohibits employers from using drug testing, or the threat of drug testing, to retaliate against an employee for reporting an injury or illness. Random drug testing and pre-employment drug testing are not affected by this rule. Employers may also conduct post-incident drug testing if there is a reasonable possibility that employee drug use could have contributed to the reported injury or illness. As an example, if employee drug use could not have contributed to the injury or illness, such as the development of carpal tunnel syndrome, post-incident drug testing would likely only discourage reporting and could constitute retaliation. Refer to the scenarios link above.

EMPLOYEE DISCIPLINE:

The rule does not prohibit corporate disciplinary programs; however employers must not use disciplinary action, or the threat of disciplinary action

SAFETY TALK OSHA’S NEW RECORD-KEEPING AND REPORTING RULE By Rick L. Ingram, National STEPS Network

(661) 979-0665


to retaliate against an employee for reporting an injury or illness. The rule does prohibit disciplining employees simply because they report work-related injuries or illnesses, no matter the circumstances. The rule also prohibits disciplining an employee who reports a work-related injury or illness under the pretext that the employee violated a work rule if the real reason for the discipline was the reporting of an injury or illness.

OSHA would consider it a violation if an employer disciplines an employee for breaking a work rule when reporting a work-related injury or illness, but doesn’t discipline another employee for breaking the same work rule who didn’t report an injury or illness.

SAFETY INCENTIVES:

This rule does not prohibit incentive programs; however, employers must not use incentive programs in a way that penalizes workers for reporting work-related injuries or illnesses. If an employee reports an injury or illness and is subsequently denied a benefit as part of an incentive program, this may constitute retaliatory action. OSHA recommends that employers consider programs that reward worker participation in proactive safety program activities and evaluations such as worker completion of safety and health training, reporting and responding to hazards, reporting close calls/near misses, safety walkthroughs and identification of hazards, conformance to planned preventive maintenance schedules, and compliance with legitimate workplace safety rules.

A FEW FINAL THINGS TO CONSIDER:

Key Performance Indicators in our industry depend primarily on lagging metrics or indicators after an event has occurred to measure the progress of a safety and health program. Lagging indicators provide important historical data which help us learn from and prevent reoccurrences of incidents, but when used in incentive programs they can discourage reporting. Leading indicators encourage an organization to think proactively to prevent incidents and promote open reporting. More and more companies in our industry are moving from lagging indicators to leading indicators.

The National STEPS Network recently polled forty companies to benchmark commonly used metrics. To

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review the data, go to www.nationalstepsnetwork.com. Thanks to NIOSH’s Kyla Retzer, Lisa Lienberger and Ryan Hill for collecting the data and preparing reports.

Note: OSHA collected work-related injury and illness data from employers within specific industry and employment size specifications from 1996 through 2011. The “OSHA Data Initiative” or ODI is available at: https://www.osha.gov/pls/odi/establishment_search.html. The data provided is used by OSHA to calculate establishment specific injury and illness incidence rates.

Thanks to Kenny Jordan and AESC for your leadership, to Doug Huddleston for writing the original article, and to David Schmidt and Mike Marshall with OSHA for providing facts regarding the final rule.

www.pioneeres.com

DRILLINGWELL SERVICINGCOILED TUBINGWIRELINE

At PIONEER ENERGY SERVICES, it is not just okay to care about project’s success. It’s the essential ingredient of who we are. Behind every technologically advanced drilling and well servicing rig, wir eline unit and coil ubing unit is a PIONEER crew hired, trained and motivated to help you succeed.

PIONEER people are committed to your success


WHAT THE NEW LOCKOUT/TAGOUT REVISION COULD MEAN FOR WORKPLACES

Lockout/tagout has been an integral part of workplace safety since its creation in 1989. The process of controlling hazardous energy prevents approximately 50,000 injuries and 120 fatalities annually, according to the U.S. Occupational Safety and Health Administration.

Simply put, lockout/tagout works. But OSHA recently proposed a revision to its compliance standard that has employers worried.

OSHA WANTS TO REMOVE “UNEXPECTED” FROM RULE

According to OSHA’s Control of Hazardous Energy Standard (29 C.F.R. part 1910.147), the lockout/tagout standard oversees “the servicing and maintenance of machines and equipment in which the unexpected energization or startup of the machines or equipment, or release of stored energy, could harm employees.”

During the fall of 2016, OSHA proposed removing “unexpected” from its lockout/tagout description. It may seem like a small change, but it could have larger repercussions throughout the workplace.

WHY IS THERE CONTROVERSY?

According to Healthcare Packaging, Bruce Main, president of design safety engineering, told attendees at November’s Pack Expo that removing one word will essentially require all energy sources to be locked out, not just unexpected sources of hazardous energy.

“This means that new technology or controls designed to enable safe and quick access for necessary tasks will be prohibited,” said Main.

In Main’s point of view, the proposed change will especially impact machine suppliers whose equipment is used across many industries.

Bloomberg BNA noted how The Graphic Arts Coalition wrote to OSHA that removing “unexpected”

would put more workers’ lives in danger throughout industrial workspaces. Even the manufacturer Siemens AG called the proposed change out of line with global standards and proper manufacturing standards.

Adding to the negative reaction to OSHA’s proposal is the U.S. Chamber of Commerce. The lobbying group said OSHA understated the costs of complying with an updated rule (if it’s finalized).

WHY WAS THE CHANGE PROPOSED?

Given the controversy and strong pushback, it’s natural to wonder why OSHA would even consider making this change. OSHA believes removing “unexpected” would clear up confusion. The agency said safety procedures are ignored during a machine’s startup phase because releasing stored energy as a machine starts isn’t considered unexpected.

Yet a 1996 federal appeals court decision stated that machines that warned employees during the startup procedure don’t technically release energy unexpectedly.

It remains to be seen if OSHA will revise its proposal following a commenting period that ended Dec. 5. But it won’t hurt if employers understand the potential

impact this change may have on a workplace.

EMPLOYERS MAY HAVE AN EXTRA BURDEN

First, employers may have to revise their existing safety plans, in addition to their lockout/tagout procedure.

But the biggest – and arguably most controversial – change means employees would likely face extra regulatory burden. Essentially, employers would now need to expand their lockout/tagout procedures to cover equipment that previously didn’t need to be locked out.

By Total Safety


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And as the Chamber of Commerce stated, companies would face increased costs by adding more lockout/tagout equipment to their workplace.

Given these changes, some organizations believe a wholesale change is needed if OSHA wants to change how hazardous energy should be controlled.

LOCKOUT/TAGOUT’S FUTURE

Even though lockout/tagout is necessary at many work sites, employers still struggle to meet compliance. According to OSHA, failure to control hazardous energy accounts for nearly 10 percent of serious injuries in industrial workplaces.

Now might be the time to consider overhauling the lockout/tagout standard, which has remained static since its inception.

Leading the charge is the American National Standards Institute Committee. In an interview with EHS Today, Todd Grover, global senior manager for applied safety solutions at Master Lock, said OSHA’s current zero-risk blanket approach may not always be suitable in 2017. Having to completely shut down a machine may interfere with tasks around the workplace.

Another issue with lockout/tagout in its current form is companies have difficulty complying with the standard. According to Grover, only 1 in 10 employers has a credible lockout/tagout program in place, 60 percent try their best to meet compliance and 30 percent have no lockout/tagout procedure.

“Only 1 in 10 employers have a credible lockout/tagout program in place.”

Those numbers need to change. Bridging that gap and modernizing

lockout/tagout is the new ANSI/ASSE Z244.1 standard, based on best practices in manufacturing.

“Lockout, in its essence, is a procedural or administration step in the hierarchy of controls. Its effectiveness is dependent of employers and workers,” said Grover.

ANSI’s new standard emphasizes scalability. Since it’s a living program, employers can make changes to their lockout/tagout procedure if new machines are added or production lines are expanded.

Keep in mind however, that ANSI/ASSE Z244.1 is not law – it’s simply a best practice. It’s up to companies if they want to complement OSHA’s lockout/tagout rule with ANSI’s standard.

As machines get more advanced and manufacturers include safety warnings regarding hazardous energy, OSHA faces the possibility of overhauling its lockout/tagout procedure. One small change already ignited a storm of opposition, so rewriting the rule to work in 2017 and beyond may be a possibility.

But if companies want to employ best practices, they should consider implementing the ANSI/ASSE Z244.1 standard. Above all, employers need to ensure a lockout/tagout procedure is in place to protect workers from hazardous energy.

For more information on lockout/tagout and best practices to employ, visit www.Total Safety.com.


By Andy Maslowski, Contributing Writer

What is the origin of the word roughneck? A number of sources suggest the name originated from men who would carry pipe using the back of their necks for support. This would literally result in calloused or “rough” skin on the necks of the laborers.

While in the past this term was applied to a number of different industries, now the job description is firmly associated with the oilpatch. Roughnecks are commonly viewed as hard-working, heavy-lifting laborers covered in pipe dope or drilling mud, handling all kinds of oilfield tools and, yes, pipe, around a drilling rig.

Today, many of them have additional duties to complete and often serve as operators of digital instruments and automated, robotic equipment. Yes, they still do the lion’s share of manual labor around a wellsite; however, the profession sometimes requires more sophisticated training in computer technology, electronics, and rig maintenance.

FUTURE ROUGHNECK

JOBS WILL REQUIRE

MORE BRAIN THAN BRAWN.

NOV’s ST-100 Iron Roughneck has easily accessible controls that protect the roughneck’s hands.


HORIZONTAL WELLS

There are not as many roughnecks working in the U.S. now as there were just a few years ago, but according to Baker Hughes, roughnecks were plying their trade in at least 20 different states this spring. As usual, Texas was the most active drilling state with about half of the nation’s rigs. In early May, the Lone Star State had 443 out of the U.S. total of 877 working rigs. Oklahoma was second with 120, followed by Louisiana with 62 rigs, New Mexico with 56 and North Dakota with 43. In May 2016, the nation’s rig count was 415 rigs, so the total figure has doubled in one year. Things have been improving, slowly but surely.

Horizontal wells are still the rule and vertical wells are still the exception. Baker Hughes reported 734 out of the 877 total, about 84 percent, were in the horizontal category. A much smaller number, those in the directional well group making deviations much less than 90 degree turns, made up about eight percent of the workload, with 67 active rigs. The remainder, 76 rigs, were “making hole” the old-fashioned way, straight down and vertical.

These statistics reflect the type of equipment being used, too. In many cases, modern rigs were using state-of-the art drilling assemblies and measurement-while-drilling (MWD) surveying technology to drill the horizontal wells. These tools help determine the three-dimensional well path, the true vertical depth, bottom hole location, the orientation of the drill bit and other downhole conditions like temperature and pressure in real time while the bit is chewing away at hard rock formations thousands of feet below. Drillers at the surface monitor and control drilling operations using digital monitors, laptops or other types of consoles.

Horizontal drilling is what the oil and gas business is all about these days. No wonder a number of big name oilfield service companies like Baker Hughes, Halliburton and Sperry Drilling, Nabors Industries, Schlumberger and others are providing a vast assortment of MWD services and platforms typically used to kick off and maintain directional control on horizontal wells.

MOVING PIPE

Likewise, all kinds of automated tools are now available for transferring, lifting up and laying down pipe. For example, some drilling contractors employ automated

tools for handling tubular connections on the drill floor. Iron Roughneck, manufactured by National Oilwell Varco (NOV), is one such tool.

“NOV’s Iron Roughneck product line maximizes the safety and efficiency of pipe handling operations by providing integrated spinning and torque making capabilities into a single machine,” NOV explains in a company brochure. “The Iron Roughneck dramatically increases personal safety, a NOV priority. Greater speed and the ability to perform simultaneous functions translate to time savings on every pipe connection, improved efficiency and reduced costs.”

Through the use of advanced remote controls available on most models, the Iron Roughneck can be operated and controlled from a remote location on the drill floor or in the driller’s cabin, NOV said. Because there is a reduced need for tongs, spinners and catheads, the Iron Roughneck enhances crew safety as well as allowing for installation on most drill floors for both offshore and land drilling operations.

Some companies offer seminars or training sessions to learn how to use their automated, robotic equipment but much of it is done in-house, right on the rig floor. Online courses are available too, but nothing compares to getting your fingers and mind on a controlling keyboard.


Repetition is the name of the game in training and practice. Consider this: one drilling rig specializing in horizontal drilling might carry up to 20,000 or more feet of drill collars and drill pipe. Say each joint of pipe or collars is between 30 and 40 feet in length. That’s a lot of pipe connections to complete one hole!

Drilling downward, pipe has to be added one joint at a time. During a trip out for a new bit or for some other downhole concern, pipe is lifted out of the hole, unscrewed and stacked. That means roughnecks could easily assist on making a few thousand connections over the course of drilling operations at one well, whether it takes a week or a month or two (or longer). Eventually, there could be as many as 500 or 600 joints of pipe in the drill string, added or subtracted one joint at a time.

Drillers or roughnecks using automated tools to make a pipe connection with a console should be able to learn how to handle this technology relatively fast. Practice makes perfect.

BRANCHING OUT

Thousands of roughnecks have lost their jobs during the past two or three years. The ones that remain on the job are often willing to learn new disciplines, or even wear a number of different hard hats around the wellsite to keep working.

For instance, some contractors offering a variety of oilfield services might employ their workers as roughnecks on one drilling job and then as roustabouts on the next well servicing gig or a roughneck might also work as a truck driver, catskinner, welder, electrician or pumper along the way. In fact, in many cases “roughneck” is a generic name, one that often can be replaced with job titles like rig mechanic, motorhand, maintenance specialist or some other term.

Some workers are “battlefield” or oilfield promoted or demoted to stay employed. For instance, a toolpusher might be asked to work as a driller on an upcoming well. A driller might be asked to work as a derrickhand or floorhand to keep getting a paycheck or vice versa.

There are numerous anecdotes from the field of workers doing double shifts or an extra tour [pronounced “tower”] to help short-handed crews. If someone doesn’t show up to work, a supervisor has to take his or her place. This occurs in many professions, from a day shift at McDonalds to a nursing crew at night at a busy hospital. On a remote oilfield location, sometimes anybody on site might be asked to pitch in, from a drilling contractor executive to a company geologist, mudlogger, service provider, consultant, etc., even if it is just to assist with a connection or two.

Meanwhile, roughnecks competently trained to run automated robotic equipment onsite face the prospect of running a piece of equipment that might one day ultimately take their job or the job of their co-workers. After all, automation and robots have revolutionized many manufacturing industries. So if a rig goes completely to automated equipment, there could be fewer roughnecks or other hands on location.

A drilling crew consisting of four or five workers (it could be more on a larger rig) could eventually be reduced by one or two workers. It doesn’t matter if the contractor runs three 8-hour tours or two 12-hour tours. The daily complement could be reduced from two or three workers to more than ten. Attrition by automation! The number of oilfield workers in the U.S. would be further reduced and it would have nothing to do with lower rig counts.

Still, someone, a human being, will have to be at the controls. Knowing your way around a laptop or how to use different computer apps can only help. For when a digital instrument stops working, to fix it someone will have to know how to reboot it, use a multimeter, replace its motherboard or make some other kind of repair, and when something else breaks down on a wellsite location - and due to Murphy’s Law, something is always breaking down on a wellsite location! - someone has to know how to use a bulldozer, an acetylene torch, a 36-inch pipe wrench, how to grease moving parts of machinery or how to make some other kind of repair, to keep the rig operations flowing smoothly.

In the end it might just be a well-trained roughneck, who has both a strong back and a strong mind, who makes the final repair.

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HSE/TRUCKING/WIRELINE


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The son of a minister, Dennis Douglas grew up in several small towns in southern California before the family put down roots in what is now Valencia. After graduating from high school in 1971, Douglas took a summer job with a well-servicing company named CPS (later sold to Pool and then to Nabors). The owner of CPS tried to talk him out of the job with tales of long hours, physically demanding work, no time off, etc. However, that didn’t scare Douglas away; in fact, he took the job and loved the work. “All the hard-working men and women I met were loyal, dedicated and possessed good work ethics,” said Douglas.

Douglas moved from “worm” to hand quickly and was promoted to rig operator within 10 months—“not so much due to my skills, but because the district manager grew tired of the current operator’s safety issues,” Douglas said. “This made an impression on me, and I became a champion of what we now call incident-free operations, or IFOs.” He continued to advance through the ranks, becoming operations superintendent by age 27.

During this time Douglas witnessed the discovery and development of many oil fields in southern California. “We worked on the rigs, moving from field to field,” he said. Well servicing for most producing companies lasted only a day or two. Later, as the projects developed, rigs would work for a company for months, or sometimes even years.

Now, almost 40 years later, Douglas is “still working that summer job, and enjoying it just as much.”

A NEW DIRECTIONNot satisfied with the management approach of a new generation of leadership that came onboard in the mid-eighties, Douglas eventually left his operations superintendent job with CPS to become a fishing tool supervisor and manager for Homco in 1985. At this time, however, oil prices were depressed and thousands of workers were being laid off. Those who could tackle multiple job descriptions had a

better chance of staying employed. Douglas ran fishing jobs, delivered equipment when needed, and handled sales duties by day and office and administrative duties by night. His productivity was noted by management, who asked him to take on more districts, a responsibility he accepted with enthusiasm.

“I was blessed to have several mentors who took the time to teach me how to work with the employees in operations, satisfy customers, and manage the numbers,” he said.

Later, Douglas managed Key Energy’s California Division and then in 2009 took the job of senior vice president for Key Energy’s U.S. Fluids business. From 2012 to 2016, Douglas served as CEO of Magna Energy Services, a service company based in the Rockies. He is currently transitioning out of that position and seeking an opportunity to work with a company that is dedicated to building safe and profitable operations, to which he can contribute more than 40 years of hands-on experience.

FOCUS ON SAFETYWhen Douglas arrived at Magna, he found great employees with a keen sense of customer satisfaction, but who had little training in managing safety or financials. He implemented a daily tracking process for both revenue and costs and scheduled weekly calls to discuss both the accuracy of the reports and what actions were needed to improve the numbers. Douglas later implemented an enterprise resource planning (ERP) system to streamline company operations. NetSuite was the best solution for Magna and, after an eight-month implementation period, “we were making decisions using live, accurate financial information,” said Douglas.

He then set out to improve safety performance, shifting from a traditional safety department-led effort to an operations-led safety process. This included implementing a behavior-based observation procedure that included process improvement plan

M E M B E R P R O F I L E :

DENNIS DOUGLAS By Mark Crawford, Contributing Writer


(PIP) teams. Employees also built common operating guidelines (COGs) for their job functions.

“The real benefit came from the managers working daily with the field employees on job safety analysis [JSA],” said Douglas. “We created the best JSAs possible and worked daily with our employees on auditing that process.”

Douglas was frequently on the road, working with operations in different locations on their daily work planning and numbers management. “We continued to add resources, work on policies and procedures, and develop a sustainable structure for running the company,” said Douglas. When the company was sold last year, he noted, it had two districts that operated for more than a year incident-free, and two more that were closing in on that same performance, and all divisions were profitable. “I am proud of what our management team accomplished and hope that my next opportunity will have the same level of dedication and commitment to creating a culture of continuous improvement,” said Douglas.

MEETING TOMORROW’S CHALLENGESOne of the biggest challenges for the oil and gas industry is changing the safety culture. Standardized work practices and behavior-based observation programs are helping the industry move toward the IFO (incident-free operations) goal by getting employees involved and informed about the dangerous nature of their work, including building (and regularly reviewing) their own COGs. “Companies with effective daily work plans usually have the most efficient, safest operations,” Douglas said. “Companies that work efficiently and safely every day will win the business.”

This is a huge advantage in an industry that will be challenged by low oil prices in the coming years. “Current information tells us that we need to be profitable in the $50-$60 range,” said Douglas. “One top executive said it best: ‘We must get very good at doing things differently.’ This will improve the

industry and drive us toward a more standardized way of working, and away from personal preference. We have some large service companies with solid track records that deploy continuous improvement programs to great effect. The rest of the industry needs to do the same.”

Getting involved in AESC is a great start toward achieving these goals.

Douglas has been a member since the late 1980s and views AESC as a valuable asset for staying current on technology and safety advancements. As the California chapter chair, he helped work several industry concerns through the AESC body. “That was a lot more effective than trying to go it alone,” said Douglas. “The association helped bring rig guying to the front. We were also able to address well-control issues and had a strong voice on trucking regulations.”

Douglas indicated that one of the biggest mistakes a company can make is not getting involved in AESC. “There is strength in numbers,” said Douglas. “Companies can bring their concerns or ideas to the forefront, and we can work together to get new or improved policies established. AESC is a fantastic place to network, make lifelong friends, share concerns, and find solutions.”

INSIDE LOOK WITH

DENNIS DOUGLAS BEST PIECE OF ADVICE EVER RECEIVED“HALT”—don’t send an email when you are Hungry, Angry, Lonesome, or Tired.

RECENT BOOKEscape Clause by John Sandford

FAVORITE QUOTE“You can have a good golf game or a good business” (Fred Holmes)

FAVORITE MOVIEAbsence of Malice

HOBBIES/INTERESTSGolf, horses, and Harleys

FAVORITE GETAWAYScottsdale, Arizona

PEOPLE WOULD BE SURPRISED TO LEARN I had a brief career has a bull rider and raised and showed quarter horses, with one world- champion halter stallion.

“

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Ten years doesn’t seem like a long time, but the past decade has been witness to a revolutionary change in the oil and gas industry.

“The industry has gone horizontal,” AESC member Larry Albert emphasizes. “That is the biggest change.”

The shift to horizontal drilling has had a direct impact on the well servicing industry, too. Well Servicing magazine surveyed a number of leaders in the well service end of the business to document the changes they have seen since 2007, and all agree with Albert: The biggest impact on the way they do business is horizontal drilling.

“More than anything, it has been a shift from open hole logging, which was the foundation of our business, to cased hole work – perforations and setting plugs, mechanical things,” explains Albert, who is vice chairman of Allied-Horizontal Wireline Services in Houston. “About 70 percent of our business used to be open hole wireline logging. Now, only 15-20 percent of the wireline business is associated with open hole logging.”

Albert says Allied-Horizontal Wireline Service provides a wide range of well servicing operations from open hole services to cased hole services, perforating, pipe recovery and slickline services in the Appalachian Basin, South Texas including the Eagle Ford Shale play, the Mid-Continent and the Permian Basin.

“We focus on E&P companies that have larger acreage positions, high activity, and take a long term view of the business,” Albert states.

He acknowledges those in the well servicing industry have to deal with a lot more regulations than they did ten years ago.

IMPROVED EFFICIENCYJacky Williamson, president of Vermejo Energy Services in the Texas Panhandle town of Perryton, says the way companies complete their wells has changed the well servicing industry.

“They are more efficient, especially in terms of completions,” adds Williamson, who is also serving this year as president of the Association of Energy Service Companies. “Ten years ago, a lot of our jobs would last

two weeks. Now, it is just a few days. We are running tubing. They test each zone and then we snub in the pipe. Of course, with horizontal wells, the frac jobs are way bigger. A lot of the work is done before we get on location now; we run the production string.”

Another change, according to Williamson, is the use of coiled tubing to drill out plugs. He believes higher pressure from the deeper wells and longer laterals is the reason for the increased use of coiled tubing.

“If it wasn’t for horizontal drilling, however, I don’t know what we would be doing,” he ponders. “It has been revolutionary, and we are having to adapt.”

Efficiency has been another dramatic change in the industry. For example, Williamson points out that U.S. production is about the same as it was three years ago (before the 2014 downturn), but the industry is doing it with about 40 percent fewer people.

“In 2014, we had about 2,000 rigs operating,” he continues. “Now, there are less than 1,000 rigs nationwide, but we are drilling the same number of wells.”

Vermejo Energy Services’ work is primarily in the Texas and Oklahoma panhandles, as well as western Oklahoma, according to Williamson. He says he spends much of his time on the road these days with his duties as AESC president. What is his message when he speaks with to legislators, regulators and AESC members?

“Things are better,” he responds. “They still aren’t good, but folks are feeling better about the future. If prices will stabilize, you can plan for the future. In the oil industry, if people feel good, they will start new projects.”

One thing that hasn’t changed for the well servicing industry is maintenance.

“That is our bread and butter,” Williamson observes. “When things are bad, like they were in 2014-16, production work kept the lights on. Companies were willing to fix stuff just to keep production. Now, bigger jobs are making news.”

BIGGER RIGS“We are lucky since 50-60 percent of our work is well maintenance,” adds Joe Freeman, senior vice president

HOW HAS THE LAST DECADE CHANGED SERVICE COMPANIES?By Al Pickett, Contributing Writer


of Pioneer Energy Services, based in El Campo, TX. “Much of well production is mechanical, and things wear out. Customers want to make sure they have cash flow, so we have to repair things when they break down.”

Another change in the past decade is the use of bigger rigs to handle the longer laterals in the horizontal wells, according to Freeman.

“We have gone from standard 98-foot derricks to 104 feet and now 116-foot derricks,” he explains. “In the shale plays, you have to be able to work on wells under pressure. You have to be able to snub the tubing into the well under pressure. Workover rigs used to be 350-horsepower. Now, 550-hp is standard. We went to bigger rigs to handle the shale plays.”

Pioneer has crews and yards in North Dakota, Mississippi, Arkansas and all across Texas. Freeman marvels at the efficiency of drilling horizontal wells.

“In the Bakken in North Dakota or the Eagle Ford in south Texas, companies are drilling 10,000 feet down and 7,000-8,000 feet out,” he maintains. “It used to take 25-30 days to drill. By 2007, it was down to 20 days. Now, it takes seven days or less to drill a horizontal well. Companies are now doing 30-40 stages or more, perforating the stages and then fracturing the open perfs. They are bringing in tremendous production.”

Maybe the biggest challenge for the well service industry is finding workers.

“The ability to attract new people is tough,” Freeman laments. “We lost a lot of people during the downturn, and they are not coming back. Our industry has its ups and downs, but there is not a lot of cushion. It takes such a toll on human assets.”

PERMIAN BASINBrad Roberts, chief executive officer of Aries Well Service in Midland, TX, calls the well servicing industry “a whole different atmosphere” today compared to 10 years ago.

“The Permian Basin is booming as far as mergers and operating companies, but it is not booming on the service side,” he says. “We have too many rig companies and too much competition in the Permian Basin. Companies, desperate for cash flow, are undercutting each other. You can’t have an investment of $1 million for a rig, a crew of four people and the supervisory people and make a profit charging $205 an hour. That doesn’t add up.”

He believes the industry is much safer today. One change he has observed is there are other contractors, such as fracturing crews, on location at the same time as his well servicing rig.

“If you have a pulling unit on site, everything pivots off that rig, no matter how many different crews are on location,” Roberts contends. “The work itself and the purpose of the well servicing rig hasn’t really changed.”

Although it takes a different size rig and work floors that move up and down to work on the horizontal wells, Roberts says there is still a lot of vertical drilling in the Permian Basin.

“The biggest struggle we have is to attract and hold on to good, knowledgeable, seasoned employees,” he adds.BARNETT SHALE INFLUENCEEric Rosemann claims much of the change being witnessed in the well servicing industry today first began a little over a decade ago with the development of the Barnett Shale in North Texas, which is where the horizontal drilling revolution started.

Rosemann, president of Eric Rosemann and Associates, is an independent health, safety and environmental consultant based in Weatherford, TX. He says drilling in the Barnett Shale forced fracturing crews, wireline companies and other well services businesses to work hand-in-hand.

“It used to be the wireline crew would perforate a zone and then go away, and then the frac crew would come in,” he states. “In the Barnett Shale, how you did business shifted. You were now working in the middle of downtown Fort Worth. You were dealing with cities and homeowners with three kids instead of being out on a farm. Suddenly, a frac crew and a wireline crew had to work in concert in the same space. When you are doing this on a half city block, that changes the whole dynamic.”

Rosemann, who is past chair of the wireline committee for the AESC, says he helped write the first comprehensive operational pad protocols for a zipper frac on a seven-well pad in the Marcellus play in Pennsylvania for Fort Worth-based Range Resources. He proudly points out that a Texas crew, with experience in the Barnett Shale, performed that first major zipper frac in Pennsylvania.

“Finding crews is a challenge as jobs have changed,” he maintains. “Not everybody knows how to run a frac pump or a wireline truck. People educated in the electronic side used to be the high-paid guys. Now, it is more about pulling the trigger (perforating) or pump maintenance. There is not a huge need for traditional wireline anymore, but there is an increased need for slickline memory tools.”

Rosemann believes both operating companies and well servicing companies are paying more attention to safety these days. He says companies are spending more time in safety training for its employees.

“People are getting smarter,” Rosemann contends. “The next generation is demanding better working conditions. They team up better, too. Entire truck crews jump from one location to another.”

He also lauds the new technology that has impacted the industry in the past decade, from the precision to control angles and drill more quickly to computer-controlled high-tech detonators to make perforations and high-tech metallurgical plugs.

With bigger fracturing jobs in longer laterals and the advent of numerous new technological advancements, horizontal drilling has dramatically changed the oil and gas industry in the past decade, thus changing the role that the well servicing industry plays as well.


BP has been on quite a ride this past spring. The British oil major made an unexpected technological discovery of

an enormous oil reserve hidden in the Gulf of Mexico. The breakthrough, previously obscured by salt domes under the sea, is heralded as an excellent combination of science, innovation, and timing.

The trove has a potential value of about $2 billion in recoverable oil.

In April, BP announced that scientists had made the discovery by using a supercomputer to interpret mathematical algorithms and seismic data in new, innovative ways.

Besides subsea finds, the advanced technology could save drillers hundreds of millions of dollars in dry wells. Most importantly, the clearer imaging could identify previously hidden pockets of oil leading to discoveries worth billions of dollars.

The BP discovery is located in an undrilled section of the company’s Atlantis field in 7,000 feet of water 150 miles out from New Orleans. Anytime there’s an oil discovery of such enormous potential, it makes global headlines. But this time, IT WAS NOT JUST THE SIZE OF THE DISCOVERY THAT WAS NEWSWORTHY; IT WAS HOW THE OIL WAS FOUND.Scientists at BP’s Energy Corridor have been working for years to get clear images beneath those intrusive subsea salt domes. These formations distort seismic waves on subsea maps so it can be almost impossible to see a hidden cache of oil below.

The process of discovery worked liked this: proprietary algorithms were developed by BP’s Subsurface Technical Center and then were applied to seismic data at the company’s Center for High Performance Computing, where one of world’s largest supercomputers is used for commercial research.

Making the discovery boiled down to being able to sharpen and enhance images below geological formations, a feat that is far more complex than it may seem.

Add another layer of innovation and the discovery becomes closer to reality. Last year, Xukai Shen, a BP scientist not far out of grad school, got permission to borrow the company’s 15,000-square-foot supercomputer so he could test an algorithm he had

BP MAKES MAJOR TECHNOLOGICAL DISCOVERY OF 200 MILLION BARRELS OF HIDDEN SUBSEA OIL

developed. It took only two weeks for Shen and his team to visually unearth the layers of the Atlantis field. The algorithm they were testing produced sharp details that led to the discovery of the cache.

Making a similar discovery via traditional methods of analysis could take much longer, and possibly not ever coming to fruition. Scientists have noted that it takes at least a year for geophysicists to systematically analyze and process data beneath subsea salt domes.

On BP’s website, Ahmed Hashmi, the company’s head of upstream technology said, “The new technique has produced the best images of this reservoir that we have ever seen.”

In a press article, Bernard Looney, BP’s chief executive of global upstream said, “This technological breakthrough has essentially allowed our team to find a new oil field within our existing Atlantis field. Given the overwhelming success of this project, we are now deploying this technology across BP’s global operations.”

After the success of the Atlantis field find, BP said it plans to use the same technology in other oil fields including Azerbaijan, Angola, Tobago and Trinidad.

M A R K E T R E P O R T M A R K E T R E P O R T

By Sharyn Alden, contributing writer


M A R K E T R E P O R T

Parked natural gas drilling rigs are a thing of the past at the Montney, one of Canada’s biggest new plays and what many insiders consider to be a

world-class condensate play.

In the recent past, when energy prices were in a slump, if you drove around industrial areas in northern British Columbia and Alberta, you’d see a lot of iron—pipes, equipment, and trucks parked in yards.

Today’s resurgence of activity is possible because profitability is back. It’s cheaper to drill now that energy prices have stabilized and companies are eager to put their idle equipment to use. Across the Montney, roughnecks and rigs have returned and in fact, some companies find it challenging to keep up with the drilling demand.

According to Canada’s National Energy Board, the Montney is reported to contain about 449 trillion cubic feet of marketable natural gas. The formation also contains about 14.5 billion barrels of natural gas and 1.13 billion barrels of oil.

Drilling numbers rose higher than expected this year prompting the Petroleum Services Association of Canada to raise its projections for 2017. Well drilling is expected to be up by 60 percent this year compared to last year. Between January and April the number of drilled wells rose to 277. That’s an 80 percent increase over drilling during the same time last year, and the most wells drilled since 2014. Three years ago, though, oil prices were about double what they are today and natural gas was 50 percent higher.

Unlike most plays in Canada that have seen a reduction in drilling, the Montney has been resilient. It isn’t just holding up, it’s a hotbed of activity.

Vancouver-based Blackbird Energy, Inc. is credited with dubbing the Montney the “Permian of the North.” The play has a similar shale formation as the well-known Texas formation, but with one major difference. The

THE NEXT BIG ENERGY PRODUCER MAY BE THE MONTNEY, CANADA’S ‘PERMIAN OF THE NORTH’

Permian yields mostly crude, but the Montney is also rich in gas.

Today, many industry players are banking on the Montney to be the next big energy producer for Canada. That projection comes with the same high stakes as oil sands.

While gas prices are still weak, rich finds in the Montney and the prospect of new pipelines are helping to revive exploration.

Encana Corp is the largest Montney producer. Even though it plans to drill about the same number of wells as last year, the company has strong projections for the next couple of years. The company noted in a news interview that it expects to double its gas output to 1.2 billion cubic feet by 2019. In the same time frame, it expects to increase its liquids production to more than 70,000 barrels a day.




At the end of May, in a deal hammered out in Vienna, OPEC agreed to curb its oil production nine months beyond the originally agreed-to

time frame of mid-2017. The extended agreement will keep the 1.8 million barrel-a-day cuts in place through the end of the first quarter in 2018.

Before the deal was signed, Khalid al Falih, Saudi Arabia’s energy minister, said in a news article that existing production cuts would, given more time, prove “more than sufficient.”

Last November, when OPEC and allied partners agreed to slash oil production by 1.8 million barrels per day, it was the first such deal since 2008.

As the June 2017 agreement deadline approached, the cartel decided more time was needed to attempt to end a three-year supply glut that has impacted crude prices and the global energy industry.

Interestingly, while OPEC’s production cuts have been in effect, global inventories rose in the first quarter of 2017. In May, according to the International Energy Agency, there were signs of inventory decline, but not enough to significantly stem the glut.

That’s because the U.S. is seeing a resurgence in shale production. When oil prices dropped in 2015 and 2016, the U.S. shale industry took a hit. Now, shale is seeing a comeback. The number of rigs in operation in the U.S. has doubled over the past year.

In the short term, OPEC’s strategy for boosting oil prices was working and prices were hovering around $54 a barrel, but fast forward to April and prices started falling below the $50 per barrel mark.

In a May news article, Falih said oil producers would “do whatever it takes” to rebalance the global crude market.”

Even though OPEC’s May report blames the U.S. for undermining the cartel’s efforts to keep prices between $50 and $60 per barrel, there may be something else here to consider. Some analysts have pointed out that OPEC may lack the type of influence it had on the world stage 10 years ago.

U.S. Bancorp analysts estimate that U.S. producers can make money if prices stay above $40 per barrel. That’s a big change from the $65 tier needed to make profits in early 2014.

In a monthly report released mid-May, OPEC said a balanced global market would “require the collective efforts of all oil producers not only for the benefit of individual countries, but also for the general prosperity of the world economy.”

Over the past decade, the booming U.S. shale output has reshaped the global landscape. U.S. oil stockpiles are at historically high levels and lower demand for gasoline by American drivers has kept U.S. gas prices down by nearly a quarter of a million barrels per day compared to last year.

Despite the cartel’s desire for the U.S. to cut production, Falih said in a press interview, “I believe the worst is now behind us with multiple leading indicators showing that supply-demand balances are in deficit and THE MARKET IS MOVING TOWARDS REBALANCING.”

OPEC AND ALLIESAGREE TO EXTEND PRODUCTION CUTS INTO 2018 IN ATTEMPT TO REBALANCE GLOBAL MARKET



M A R K E T R E P O R T M A R K E T R E P O R T

Arctic exploration certainly isn’t dead off Norway’s coast. In fact, exploration here is booming thanks to attractive circumstances

that are drawing a number of companies.

In Norway’s Arctic waters, drillers are planning to drill a number of wells this year despite the fact that oil prices aren’t pushing upward. Unlike the U.S. Arctic, where oil companies like Royal Dutch Shell have a history of leaving the area, Norway is hedging its bets on the Barents Sea. These polar waters could be key to boosting the country’s oil industry.

It’s not surprising that Norway is looking for a big win. Since 2000, the country’s crude production has been down by half.

Since 2010, Statoil, Lundin, and OMV have already made discoveries totaling more than a billion barrels in the Barents Sea. Last year Eni SpA started producing oil from Goliat, the area’s first platform.

Drilling in the Barents Sea may be the key to reeling in giant jackpots. The risk for success is high, but discovering an enormous prize in these waters makes the risk worth taking.

Companies are counting on several things to help make a windfall happen. First, there’s the very real possibility that there are more than 17 billion barrels of oil and gas to be discovered in the Barents. That accounts for about 65 percent of Norway’s untapped resources. A record 15 wells (at this writing) are planned to be drilled this year.

Unlike the U.S. Arctic, drilling off the Norwegian coast is potentially less costly than the U.S. Arctic. Off Norway, the waters are quite shallow and the Gulf Stream commonly makes the Barents Sea an ice-free zone.

There’s a myth that drilling in the Norwegian Arctic is a costly proposition, and in press articles, Statoil has disputed this claim by saying they have found that Barents Sea wells are among the cheapest in their 2017 global exploration portfolio. Most cost around $25 million each to complete.

Here’s another reason the area is drawing drillers. For the first time in 20 years, Norway is hyping drilling by awarding licenses in previously unexplored sections close to the Russian maritime border.

Another appeal is Norway’s refund system. The system refunds exploration expenses, making it more attractive to take on high-risk prospects.

Norway is banking on Statoil ASA’s Songa Enabler to make a

difference in this part of the world. The Enabler is a winter-hearty, adaptable floating drilling rig the size of two football fields. It can withstand temperatures down to about 13 degrees below zero. The appropriately named ship is leading five well explorations this year.

The Enabler’s Korpfjell prospect is considered the largest well to be tested in Norwegian seas since the 1990s. In a May news article, Tim Dodson, head of exploration of Statoil, said, “It’s important for us, and for northern Norway –and the entire country, actually.”

ARCTIC DRILLERS OFF NORWAYARE HUNTING FOR HUGE FINDS IN THE UNDEREXPLORED BARENTS SEA

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Congressman Mike Johnson is a Republican member of Congress proudly serving Louisiana’s Fourth District. He represents the nearly 760,000 residents of 15 parishes in the northwest and western regions of the state. Johnson was elected to the U.S. House of Representatives on December 10, 2016, by the largest margin of victory in

his region in more than 50 years. He was appointed to the powerful House Judiciary Committee and two of its subcommittees – the Subcommittee on Immigration and Border Security and the House Subcommittee on Crime, Terrorism, Homeland Security and Investigations. He also serves on the House Natural Resources Committee overseeing American energy production, mineral issues, fisheries and several other key contributors to Louisiana’s thriving economy. As vice chairman of the Natural Resources Subcommittee on Oversight and Investigations, Johnson is one of only three freshmen members to chair a subcommittee in the House. He was also appointed to the Subcommittee on Water, Power and Oceans.

For nearly 20 years, Johnson litigated high profile constitutional law cases in district and appellate courts nationwide. He served in the Louisiana Legislature from February 2015 to January 2017. Representative Johnson earned his bachelor’s degree in business administration and his law degree from Louisiana State University.

A father of four, the Congressman and his wife Kelly reside in Bossier Parish.

Representative Johnson recently answered questions related to the oil and gas industry for Well Servicing magazine. The following answers were provided to Well Servicing magazine in May.

During your visit with President Trump in late April, the President signed an Executive Order

reopening significant portions of the country’s offshore acreage. What other strategies did you discuss with the President regarding domestic energy production? Our country is in the middle of a shale gas renaissance. The Haynesville Shale in my district is in the middle of resurgence, boasting more available continuous natural gas than anywhere else in the country. This gives us a real opportunity to cut harmful and duplicative regulations that ultimately hurt our energy sector. We have a real chance, if utilized correctly, to become energy independent as a country. The president and I discussed this opportunity as well as the need to expand pipeline production in order to properly utilize all of this natural gas that we are producing. I look forward to advancing the president’s America-First energy strategy and to positioning Louisiana as a critical component of that plan.

With the Republicans in the majority for the foreseeable future, what changes do you anticipate to regulations affecting energy production on federal lands? As a member of the majority party and Natural Resources Committee, I can tell you that we are examining the consequences of executive branch overreach of the Antiquities Act and how it has affected energy production on federal lands. Allowing for increased energy production on federal lands will help get us to energy independence and even “energy dominance” – as the president has defined as our ultimate goal.

The Endangered Species Act (ESA) has been a key tool in protecting indigenous species such as the bald eagle. In recent years, many in our industry believe the ESA has been used to hinder resource development on private and public land. How should we balance a legitimate interest in conservation with our country’s ongoing need for economic development? The ESA was created for a noble purpose – to save and protect our most vulnerable plants and

C O N G R E S S I O N A L S P O T L I G H T

REP. MIKE JOHNSON (R-LA-4)By Kristin Hincke, Editor


C O N G R E S S I O N A L S P O T L I G H T

animals. Unfortunately, this is no longer the reality. Of the more than 1,600 species that are listed as threatened or endangered, fewer than 50 have been removed from the list since the Act’s inception. The reality is that outside interest groups, often fundamentally opposed to development, use the courts as an offensive weapon, routinely suing the implementing agencies in order to further frustrate project development and drain taxpayer money away from conservation efforts. This is not how this legislation was intended to function. The ESA must be modernized and implemented with transparency. As Vice Chairman of the Natural Resources Subcommittee on Oversight and Investigations, I am working closely with my colleagues to accomplish these goals.

The AESC has over 700 member companies. A majority of our members are small businesses, and they are concerned about regulatory compliance burdens. Industry is encouraged by actions taken by the Trump Administration so far, and wonder what is Congress doing to relieve regulatory burdens on small business? Since coming to Congress, we have acted swiftly to remove job-crushing regulations that hinder businesses and economic growth. In May, I sent a letter with my colleague and Chairman of the Natural Resources Subcommittee on Oversight and Investigations, Rep. Raul Labrador, asking businesses to identify regulations that hinder their operations. We have received many responses and will look into each regulation to determine precisely where we can make changes to better assist hard-working Americans.

Do you see the REINS Act becoming law during this session? (The REINS Act would require Congressional approval on any executive branch rule or regulation with an annual economic impact of $100 million or more.)

I was proud to cast one of my first votes in Congress to pass the REINS Act. I am confident this bill will end up on the president’s desk for his signature.

Obviously low crude prices are on everyone’s minds in the oilfield. In your opinion, what more could the federal government be doing to help oil patch states recover from this downturn? The oil and gas and petrochemical industries are of great importance to our future stability and economic strength, not to mention the energy independence of our nation. We need to make certain that in both federal, state, and local governments, we are shaping laws, regulations and a tax structure that will help these states recover.


A E S C M E M B E R S A E S C M E M B E R S

MISSISSIPPI - LAUREL

ROCKY MOUNTAINCALIFORNIA

OKLAHOMA SOUTHEAST NEW MEXICO

Frank Talbert, Rig Supervisor(307) 670-5050


A E S C M E M B E R S A E S C M E M B E R S

ROCKY MOUNTAIN

SOUTHEAST NEW MEXICO

EAST TEXAS

NORTH TEXAS

TEXAS GULF COAST

TEXAS PANHANDLE TRI-STATE

WELL SERVICING MAY/JUNE 2017

A E S C M E M B E R S

32


PERMIAN BASIN


33


WELL SERVICING MAY/JUNE 2017

SOUTHEAST NEW MEXICO

MICHIGAN


SCHOLARSHIP GOLF TOURNAMENT HELD

The 11th annual AESC National Scholarship Golf Tournament was held on May 18 at the Wildcat Golf Club in Houston. The annual tournament was recently renamed for AESC founder Frank Pool and included fourteen teams vying for cash and prizes. Nearly $9,000 was raised for the national scholarship fund.

1ST PLACE TEAMDavid Culberson, Allen Culberson, Kerry Culberson, Kyle Pfeiffer, AESC President Jacky Williamson

3RD PLACE TEAMRyan Payne, Keith Carpenter, Shawn Jacob, Brit Sensat

2ND PLACE TEAMAESC President Jacky Williamson, Perry Laabs, Mike Willeford, Ed Blass, Jim Hamilton

OLD FRIENDS RECONNECT AT TOURNAMENTAESC Past President Nick Petronio and Frank Pool’s daughter Martha Elder


AESC NATIONAL SCHOLARSHIP RECIPIENTS

The AESC National Scholarship Committee is proud to announce the 2017 recipients. These scholarships are distributed to deserving students of the AESC membership who are pursuing a higher education. Members of the selection committee for 2017 were National President Jacky Williamson, Vermejo Energy Services; First Vice President Joe Freeman, Pioneer Energy Services; Treasurer Gay Wathen, NOV; Immediate Past President Joyce Ryel, Superior Energy Services; Associates Chair Scott Bourque, Bourque Sales and Service; Laurel, MS Chapter Chair Bob Stone, Oilfield Service & Supply Company, Inc.; East Texas Chapter Chair Bill Morgan, Oil Center Research, Inc.; and Executive Director Kenny Jordan. The committee awarded $58,000 in scholarships. Outstanding students are also recognized at the chapter level with more than $95,000 in scholarships awarded this year by the local AESC chapters.

STUDENT MEMBER COMPANY

Appalachian Basin Zachary Lagrue Bridon American Corp

California Sophia Garcia NOV Christopher Magana Key Energy Services Alyssa Conner Rodgers Oil Well ServicesRiley Demos Norris Kathryn Luher NOV

East Texas McKynzi Harper Key Energy ServicesHarley Mingus Key Energy ServicesTyler Russell Key Energy ServicesLacy Stanfill Key Energy ServicesBraden Hill Higginbotham InsuranceBriana Minter Pioneer Energy Services

Gulf Coast Joseph Franklin NOVCatherine Franklin NOVKavya Chandran NOVChristopher Jordan NOVRyan Garcia Texas Energy ServicesTristan Watson Select Energy Services

Kansas Darien Sanchez D S & W Well ServicingSamuel Dreiling Insurance Planning, Inc.Kaylie Reeh Murfin Drilling Company, Inc.

Michigan Madison Ingersoll Beckman Production ServicesGriffin Borst Beckman Production ServicesRyan Cybulla Beckman Production ServicesAlexis Hayden Beckman Production ServicesSteve Ingersoll Beckman Production ServicesNicholas Underwood Beckman Production Services

Mississippi (Laurel) Matthew Wilson Rapad Drilling and Well Service

Mississippi (Natchez) Craig Bradley Callon Petroleum

North Louisiana Michael Laurence Impressions Advertising

North Texas Thomas Walsh NOVHenslee Ogle Energy Service CompanyEmma Richardson Mercer Well Service

Oklahoma Elijah Freeman Bruckner Truck SalesDanielle Fisher Gefco, Inc.Natalie Mercer NOVWanda Clark Morgan Well ServiceJarrett Green United Engines ManufacturingSteven Vo NorrisKatelyn Weaks Basic Energy Services

Permian Basin Alexis Allen NOVMeagan King Key Energy ServicesJolea Pogue Royalty Well Service, Inc.Afsaneh Hamed-Zanjani Basic Energy Services

Panhandle Tri-State Madison Kellerman NOVDaniel Chavira Western Hot Oil ServiceBlake Bruckner Bruckner Truck SalesJonathan Uribe Vermejo Energy ServicesKalen Youtsey Renco Tool Company

Rocky Mountains Dustin Marx C & J Energy ServicesJamie Sheldon DistributionNOW

SE New Mexico Unique Stock Lucky Health & Safety

South Louisiana Justin Pitre NOVKristen Kass Allendorph Specialties Inc.Alexis Allendorph Allendorph Specialties Inc.Meghan Guilbeaux Oil Center Research

South Texas Dakota Roe Kelton’s Truck Parts, Inc.Cameron Wall Pioneer Energy ServicesJordon Garcia Meyer Service Co.Paarth Kapadia NOV Fiberglass SystemsDrew Robinson NOVMichael Wall Pioneer Energy ServicesLandon Whitenton Kennedy Wire Rope & Sling Co.

Williston Basin Raghen Lucy Key Energy Services

Outside Area Andrew Hodgin Gefco, Inc.Nicholas Kostick NOVTeresa Kostick NOVLacey Rucker Wireco World Group


Palmer Johnson Power Systems supplies and services parts for heavy-duty, off highway transmissions and axles. The company is the authorized distributor and service center for many of the leading products used in the oil and gas market. Including, but not limited to frac transmissions from Twin Disc, Cotta gear boxes and pump drives, Eaton Airflex. With over 40 years in business, Palmer Johnson has the expertise and reputation to get the job done right. Palmer Johnson operates six sales and service branches in North America and has more than 110 employees. For more information, visit www.pjpower.com.

Triple T Supply is a new industrial supply distributor located in Duncan, Oklahoma. The company’s primary product lines include abrasives, brushes, cutting tools, electrical equipment, fasteners, industrial supplies, hand and power tools, janitorial and sanitation products, safety supplies and more. Triple T Supply serves customers in a variety of industries, such as construction, manufacturing and machine shops. Go to www.tripletsupplies.com to view our wide selection of merchandise and www.tripletorders.com to place an order. For more information, contact Jeff Davenport, general manager or Mel Brown, office manager at 580/475-0060.

Industrial Tax Consulting (ITC) is a Nationwide leader in providing proactive property tax consulting, compliance, and appeal services, to the Oil Field Service Industry. Our offices are strategically located and supported by a diversified team of highly experienced CPA’s, CMI’s, Engineers, Appraisers, and Senior Property Tax Consultants. Together we bring forth Nationwide experience, with local expertise, to ensure our Oilfield Service clients successfully minimize their property tax exposure with the Appraisal Districts, while maximizing the property tax incentives and exemptions available to them, regardless of their operation’s location.

NEW MEMBERS


INDUSTRY ITEMS

BITCO knows oil and gas.When times get tough, BITCO has been there. Since 1917, BITCO has been offering high quality insurance protection and services to industries at the core of the American economy- with the stability you need and deserve.

If you’re looking for broad insurance protection for your business at competitive rates, look no further than BITCO. We understand your business, and we tailor insurance packages specifically for today’s energy companies.

Insurance contracts are underwritten and issued by one or more of the following: BITCO General Insurance Corporation and BITCO National Insurance Company, rated A+ (Superior) by A.M. Best, A2 Stable by Moody’s, and A+ Strong by Standard and Poor’s.

1-800-475-4477

www.BITCO.com

What YOU do is what WE protect.

BITCO INSURANCE COMPANIES

INSURANCE FOR THE REAL WORLD

DOVER LAUNCHES WINDROCK ENTERPRISEDover Energy Automation announced the launch of Windrock Enterprise, real-time remote access to an entire fleet of assets at the same time. Essentially, from any computer or mobile device in the world, enterprise stakeholders with proper credentials will have on-demand access to a modern dashboard where they can gain crucial insights about the immediate health of all of their assets. Having this level of visibility enables executives to make more informed decisions on key performance indicators (KPIs) that are based on common asset performances.

WILD WELL CONTROL BUYS ASSETSWild Well Control, Inc., a Superior Energy Services company and a global leader in well control and engineering services, has purchased subsea capping equipment from Shell EP Wells Equipment Services B.V. The addition of this inventory enhances Wild Well’s current global equipment and response capabilities for the WellCONTAINED™ subsea containment systems and provides added capabilities for its 7Series Subsea Well Intervention group. The newly purchased equipment will be staged strategically in Houston, Aberdeen, Singapore and elsewhere, as needed, for global deployment.


Accurate Safety Compliance . . . . . . . . . . . . .18American Petroleum Institute . . . . . . . . . . . . 7Aries Well Service . . . . . . . . . . . . . . . . . . 30B&H Rig and Tong . . . . . . . . . . . . . . . . . . .21BCM & Associates . . . . . . . . . . . . . . . . . . 32Beckman Production Services Inc . . . . . . . . . 33Bishop Lifting Products, Inc . . . . . . . . . . . . . 11BITCO Insurance Companies . . . . . . . . . . . . 37Buster’s Well Service Inc . . . . . . . . . . . . . . 32C&H Well Service Inc . . . . . . . . . . . . . . . . 30Cavins Oil Well Tools . . . . . . . . . . . . . . . . 40Cudd Energy Services . . . . . . . . . . . . . . . . . 4Doc’s Reverse Units & Rental Tools . . . . . . . . 32Energy Fabrication Inc . . . . . . . . . . . . . . . 27Energy Service Co . . . . . . . . . . . . . . . . . . .31Excalibur Well Services Corp . . . . . . . . . . . . 30Hawkins Lease Service Inc . . . . . . . . . . . . . .31Hickman Sales & Service Inc . . . . . . . . . . . . 29Hill’s Specialty . . . . . . . . . . . . . . . . . . . . 27Horizon Cable Service Inc. . . . . . . . . . . . . . 26Houston Specialty Products Co . . . . . . . . . . 29Howard Supply Company. . . . . . . . . . . . . . . 2Hunting Titan . . . . . . . . . . . . . . . . . . . . . 36Jet-Lube Inc . . . . . . . . . . . . . . . . . . . . . 36Kelton’s Truck Parts . . . . . . . . . . . . . . . . . 24Kennedy Wire Rope & Sling . . . . . . . . . . . . 24King Well Service . . . . . . . . . . . . . . . . . . .31Kruse Energy & Equipment LLC . . . . . . . . . . . 6L&W Diesel Service, Inc . . . . . . . . . . . . . . . . 17Learn to Drill . . . . . . . . . . . . . . . . . . . . . 37Lock-Tite Anchor Co. . . . . . . . . . . . . . . . . 36Lucky Health & Safety LLC . . . . . . . . . . . . . 33Lucky Rental Tool . . . . . . . . . . . . . . . . . . 33Lucky Services Inc . . . . . . . . . . . . . . . . . . 33Mitchell Industries . . . . . . . . . . . . . . . . . . .31Morgan Well Service. . . . . . . . . . . . . . . . . 30MTU . . . . . . . . . . . . . . . . . . . . . . . . . . 39NOV . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Oil States Industries . . . . . . . . . . . . . . . . . . 17Oil Well Service Co . . . . . . . . . . . . . . . . . 30Oilfield Service & Supply Co. Inc . . . . . . . . . . 30Petroleum Equipment Co . . . . . . . . . . . . . . 38Permian Services. . . . . . . . . . . . . . . . . . . 32Pioneer Energy Services . . . . . . . . . . . . . . .13PLUSCO . . . . . . . . . . . . . . . . . . . . . . . . 25Precision Well Service . . . . . . . . . . . . . . . . 30QMC Hydraulic Cranes . . . . . . . . . . . . . . . 38RAPAD Drilling & Well Service Inc . . . . . . . . . 30Reliable Well Service . . . . . . . . . . . . . . . . .31RigPro Inc . . . . . . . . . . . . . . . . . . . . . . . 36Seametrics . . . . . . . . . . . . . . . . . . . . . . . 12Standard Energy Services LLC . . . . . . . . . . . 32Synergy Industries . . . . . . . . . . . . . . . . . . 36TEC Well Service Inc. . . . . . . . . . . . . . . . . .31Texas Petroleum Products . . . . . . . . . . . . . 26Threlkeld & Company Insurance . . . . . . . . . . 29TJM Distribution Inc . . . . . . . . . . . . . . . . . . 11TRM LLC. . . . . . . . . . . . . . . . . . . . . . . . 33Vermejo Energy Services . . . . . . . . . . . . . . .31VIVA Energy Services . . . . . . . . . . . . . . . . 32Well Control School . . . . . . . . . . . . . . . . . .15WESTCO . . . . . . . . . . . . . . . . . . . . . . . . 2

GEODYNAMICS BEGINS FIELD TESTING

GEODynamics, Inc.’s Engineered Perforating Solutions Division has begun field testing of the latest addition to their extensive family of “Multi-Stage Plug and Perf” technology based products. SandIQ Optimized Perforating for Diversion is now undergoing field evaluations in the Permian and Bakken. The patented and patent pending* SandIQ system generates optimized perforating geometry that leads to improved proppant transport in frac stages. In addition, SandIQ uses constant and consistent perforating entry holes and penetration depths in wells regardless of gun position, well casing, and formation.

ALPS WIRE ROPE MAKES CHANGES

Alps Wire Rope has promoted Mike Brand to National Sales Manager. Mike has been with Alps for five years and in the wire rope industry for more than 30 years. Ross Benner has been appointed Regional Manager for the North Central area. Ross has been with Alps for more than 21 years. Bill Lee has been appointed Regional Manager for the South Central area. Bill has more than 30 years of experience in the industry.



Power. Passion. Partnership.

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Series 4000

The numbers back us up.Since 1996, more than 37,000 Series 4000 engines have proven their reliability with over 180 million operating hours. It’s just one of many benefits of choosing MTU, the premier engine supplier to many of the world’s most productive oil & gas operations. Day in and day out, MTU engines perform reliably under extreme conditions. You can count on MTU for high availability and maximum efficiency, with reduced fuel, maintenance and repair costs. See how it all adds up at mtu-online.com/oilgas.

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