Presentation is loading. Please wait.

Presentation is loading. Please wait.

Well Servicing Rig Data Capture & WITSML WITSML SIG May 2005 Lars Crotwell

Similar presentations


Presentation on theme: "Well Servicing Rig Data Capture & WITSML WITSML SIG May 2005 Lars Crotwell"— Presentation transcript:

1 Well Servicing Rig Data Capture & WITSML WITSML SIG May 2005 Lars Crotwell

2 Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of These forward-looking statements are based on current expectations, estimates and projections about the Company, the Company’s industry, management’s beliefs and certain assumptions made by management. Whenever possible, the Company has identified these “forward-looking statements” by words such as “expects”, “believes”, “anticipates” and similar phrases. Listeners are cautioned that any such forward-looking statements are not guarantees of future performance or the results of the ongoing review and restatements and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: the risk that the systems will not be able to deliver savings or operate properly; and risks concerning the Company’s ability to install or deliver units. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.

3 Today’s Topics Key Energy and Well Servicing Work Keyview TM overview and architecture Examples of Improvement WITSML – Planning for the Future

4 Dominant provider of U.S. production services:  #1 in well servicing / workover - largest in world (1000+ rigs)  #1 in fluid hauling services (2382 fluid hauling vehicles)  #4 in fishing & rental tools (20 locations, 65 fishing specialists)  U.S. land pressure pumping (fracturing, cementing)  Coiled tubing  Technology for customer value & operating efficiency  Significant capacity for growth Key Energy Snapshot

5 Well Work Today Drilling Technology  SCR  Top drives, equipment automation & control  Rig monitoring  Integrated control & information system  WITSML Well Servicing & Workover Technology  Disk brake  Joy stick Well Servicing & Workover Expenditures (NAM)  2004 = $2.057 billion * Significant Opportunity to Reduce Well Servicing & Workover Expenditures * Note: Data from Spears & Associates Inc.

6 If You Can Measure It You Can Improve It Need to Monitor Certain Rig Equipment  Quality of workflow  Efficiency of equipment utilization  Safety in workflow Need to Capture Work Activities  Efficiency of workflow  Additional opportunity for collaboration, benchmarking Need for Near Real-time Data Visibility via Internet  Opportunity to minimize wellsite supervision  Allows more efficient use of subject matter experts  Opportunity to understand & solve problems during job

7 Keyview: Well Servicing Rig Data Capture Project Goals  View select equipment components to monitor quality & efficiency of workflow  Capture workflow activities without encumbering rig operator  Make data available to Key & customer via internet  Present data in format that allows for rapid decision-making  Reduce Key & customer operating costs  Decrease customer production downtime Status  ~165 rigs instrumented  33 domestic customers online  14,500+ “measured” jobs completed, 250,000+ hours of data  Multiple efforts with customers to optimize work processes

8 Largest Intellectual Property Portfolio in Production Services Industry Patent #6,079,490 – Remotely Accessible Mobile Repair Unit For Wells Patent #6,578,634 – Method Of Monitoring Pumping Operations Of A Service Vehicle At A Well Site Patent #6,377,189 – Oil Well Servicing System Patent #6,276,449 – Engine Speed Control For Hoist And Tongs Patent #6,374,706 – Sucker Rod Tool Patent #6,241,020 – Method Of Recording Cross-load On Mobile Repair Unit For A Well Patent #6,209,639 – Method Of Ensuring That Well Tubing Was Properly Stretched Patent #6,213,207 – Method Of Distinguishing Between Installing Different Sucker Rods Patent #6,253,849 – Method Of Distinguishing Raising And Lowering Of Tubing And Sucker Rods Patent #6,212,763 – Torque-turn System For 3-element Sucker Rod Joint Patent #6,164,493 – Oil Recovery Method Patent #6,168,054 – Oil Recovery System And Apparatus Patent #5,711,382 – Automated Oil Rig Servicing System Patent #5,988,299 – Automated Oil Rig Servicing System Patent #5,027,903 – Coiled Tubing Velocity String Hangoff Method And Apparatus Patent #5,297,631 – Method And Apparatus For Downhole Oil Well Production Stimulation Patent #5,439,066 – Method And System For Downhole Redirection Of A Borehole Patent #5,839,514 – Method And Apparatus For Injection Of Tubing Into Wells Patent #6,758,638 – Method Of Monitoring Operations Of Multiple Service Vehicles At A Well Site Patent #6,758,095 – Tong Monitoring With Learn Mode S/N 09/ – Method Of Managing a Well File Record At The Wellsite 21 Patents 40+ Patent Applications majority targeted at optimization of production processes 21 Patents 40+ Patent Applications majority targeted at optimization of production processes

9 Keyview Logical Architecture RDC / KeyView 

10 Utility of Rig Data Capture System For Key Energy  Rig Operator: Provides visibility & feedback for rod & tubing makeup Quantifies implementation of work plan Reduces risk of crown out & floor out & other safety events  Rig Supervisor: Allows for monitoring from any PC Provides tool for in-depth process improvement For Customer  Assurance  Ability to improve wellwork processes company-wide

11 Improvement Examples Quality Improvement: Sucker Rod Makeup  Problem: Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string  Solution: Rig with data capture system moved on well to lay down bad rod string Rig make up / breakout monitoring system found every 3 rd joint over- torqued; previous rig over torqued rods  Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rig data capture system utilized

12 Improvement Examples Quality Improvement: Sucker Rod Makeup  Problem: Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string  Solution: Rig with makeup control moved on well to lay down bad rod string Rig data capture system found every 3 rd joint over-torqued w/ breakout monitoring; previous rig over torqued rods  Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rod makeup control utilized

13 Improvement Examples Quality Improvement: Sucker Rod Makeup  Problem: Rod string failure rate increased from 0.3 failures / year to 2 failures / year After 3 pin failures production engineer decided to lay down rod string  Solution: Rig with makeup control moved on well to lay down bad rod string Rig data capture system found every 3 rd joint over-torqued w/ breakout monitoring; previous rig over torqued rods  Savings: Company spent $46k on 3 well pulls & rod string replacement $46k avoidable if rod makeup control utilized

14 Improvement Examples Efficiency Improvement: Non-Productive Time  Problem: 40 rig operation where customer had increasing job times but no accurate data from which to base decisions  Solution: Rig data capture identified wait time problem & cause by rig Operator & service providers analyzed data & implemented corrective actions Over following 10 months wait time reduced from 12% of rig time to 6%  Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location; $0.15 million

15 Improvement Examples Efficiency Improvement: Non-Productive Time  Problem: 40 rig operation for customer had extensive wait time but no accurate data from which to base decisions  Solution: Rig data capture identified reasons for wait time by rig Operator & service providers analyzed data & implemented corrective actions Over following 10 months wait time reduced from 12% of rig time to 6%  Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location; $0.15 million

16 Improvement Examples Efficiency Improvement: Non-Productive Time  Problem: 40 rig operation for customer had extensive wait time but no accurate data from which to base decisions  Solution: Rig data capture identified reasons for wait time by rig Operator & service providers analyzed data & implemented corrective actions Over following 10 months wait time reduced from 12% of rig time to 6%  Savings: $14.20 per rig hour $1.10 million in reduced annual rig expense Additional operating expense savings from additional services on location; $0.15 million

17 Improvement Examples Efficiency Improvement: Process Improvement  Problem: 28 rigs operating in large field had rig move inefficiencies  Solution: Rig data capture defined exact rig move times Operator & service providers analyzed data & establish improved rig move processes  Savings: $9.60 per rig hour Rig move times reduced by 63% Annual job time expense reduced by $590k

18 Connection CirculatingMaking Hole On Fish, Milling But Not Making Hole

19 Trip Into Hole Jarring Effect Uniform Makeup

20 Where does WITSML Fit in? We’re new to the game – but there’s a lot of opportunity for the well servicing industry We’ll go beyond just the “drillsite to office” use Embrace the standard  Work with the SIG to gradually grow the standard to incorporate workover & well servicing needs Customer Integration  Current prototype project with a large customer to “WITSML-ize” Keyview information in the form of a tour sheet, to the extent possible Standard format for Archiving & Retrieval

21 Leverage off of the similarities WellLog/Log Object OpsReport Object Well Object Message Object None are well-servicing specific, but there is a considerable amount of similarity

22 Along the path to “WITSML-ization” The current WITSML is drilling-specific – Is this standard an appropriate one to use for intervention work (R&M, workover, etc)? “Standard” activities list – the current WITSML catalog supports 20 IADC activities. Are more, with greater detail, needed? WITSML must be more than just “Transfer” – will it be appropriate to use WITSML as a set of standardized systems interfaces?

23 The Future System that is:  A source of collaboration & performance measurement for operators, well servicing companies & all third parties (WITSML)  A pipeline for electronic data from any service provider on location to the customer (WITSML)  A source of process data from which to perform continuous process improvement (WITSML?)  Is a foundation for other digital technologies utilized during well work operations (WITSML)

24 Lars Crotwell


Download ppt "Well Servicing Rig Data Capture & WITSML WITSML SIG May 2005 Lars Crotwell"

Similar presentations


Ads by Google