7/27/2011. How Things Can Go Wrong In The Drilling Of Oil / Gas Wells

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1 How Things Can Go Wrong In The Drilling Of Oil / Gas Wells Provide a general background of the various risks inherent in the drilling of oil / gas wells. The participants will have a better knowledge and understanding of the risks and the possible mitigation of same during normal operations

2 Year Land Offshore Total , , , , , , , , , , E 64, ,395 4 Increase in the Number of Rigs Increase in the Number of Wells What does this mean? Additional Rigs - Proper Equipment? New Rig Personnel Inexperience? Increase in Number of Wells - Urgency / Speed? Development Wells in Gas Shale Plays Complacency? 5 The Simple Wells Have Been Drilled, Now, On to The More Complex Wells The complexities include Well Bore Design Horizontal Sections Extended Reach High Pressure / High Temp Conditions Complex Completions Pressure Control Multi Stage Fracs Managed Pressure Drilling 6 2

3 7 Top Five States for Drilling Activity Texas 857 Rigs Oklahoma 175 Rigs Louisiana 170 Rigs N Dakota 155 Rigs Pennsylvania 116 Rigs Top Five Onshore Drilling Contractors Helmerich & Payne (H&P) Nabors Patterson Precision Nomac (Chesapeake) 8 The most catastrophic event during a drilling or workover operation is a blow out, or an uncontrolled flow of oil / gas from the wellbore. 9 3

4 Documented facts show that over 80% of major catastrophes involve a chain of 7-11 separate contributing factors (or warning signs) before a catastrophe occurs. Blowouts Are NO Different! Listen and watch the well it is speaking to you at all times. 10 During the 1990 s and early 2000 s, the Rule of Thumb for the number of onshore well control events was - 1 Blowout per 1,000 Wells Drilled During the years of , the emphasis was more on development drilling, exploratory drilling onshore was minimal. Even with the high rig counts and high turnover of crews, we have seen the occurrence of blowouts diminish to Less than 1 Blowout per 1,000 Wells Drilled Based on the 66,104 wells to be drilled in 2011, we can expect, statistically, approximately 55 Blowouts in Blowouts! What is a Blowout? The uncontrolled flow of fluid or gas from a well bore. What is the Cause of a Blowout? An unrecognized or uncontrolled kick. 12 4

5 13 Kicks Not Being Properly Identified and Managed Failure of Rig / Surface BOP Equipment Poor Drilling Practices 14 A Kick occurs when the formation pore pressure is greater than the pressure exerted by the column of fluid in the well. The most common causes of kicks are: Insufficient Fluid Density Failure to Keep the Hole Properly Filled Swabbing & Surging Lost Circulation 15 5

6 Some blowouts have occurred as a result of rig/surface BOP equipment failure. Equipment improperly rated. Equipment not properly maintained and tested. And, possibly, lack of the proper equipment even being rigged up. 16 Equipment Failure Compounds Proper Handling of Kick 17 Poor drilling practices are another leading cause of well control incidents. These may include: Improper Tripping of Pipe Insufficient Waiting on Cement Lack of Drills Poor drilling practices can be attributed to Inexperience Complacency Sloppiness Being Rushed 18 6

7 Poor Drilling Practices Lead to Blowout i.e. Speed 19 Failure to Stop and Check/Verify Well Flow Then, Once Flow is Recognized Attempting to Out-Pump the Flow Failure to Shut the Well In In A Timely Manner Improper Management of Shut In Well Reluctance to Call Office / Seek Assistance once well is Shut In Not Being Prepared to Respond in Timely Manner 20 Change in Crews lack of communication, hurried change out Tripping Operations Underbalanced Drilling Operations Cementing Operations Drilling into formations which are abnormally charged Stuck Pipe Fishing Operations Lost Circulation Frac Operations WellTesting 21 7

8 Sour (H2S) service. Poor well design. Adjacent population. Known area for shallow gas. No drilling experience in area. Environmentally sensitive areas. No experience with drilling contractor. No Emergency Response Plan in place. 22 Inexperienced drilling crew. High turnover rates. Little experience working as a team. Worn out drilling rig/equipment. Majority of equipment is 20+ years old. Scavenger hunt to put rigs together. Poor performance/safety records. High demand for any rig. Drugs and alcohol. Language barriers at rig site. 23 There are serious consequences of well control events. These can include loss of: Human life. Rig equipment. Natural resources. Environment due to pollution. 24 8

9 Those risks usually associated with Control of Well have not generally changed. However, the Consequences of a well control event occurring have increased significantly. It is most important to analyze the Consequences correctly when conducting the analysis

10 28 Develop an Emergency Response Plan for all Well Control Emergencies. Develop working relationship with a Well Control Company. Beginning with Pre-planning, Identify and Assess All Risks. Develop plan to mitigate these risks. 29 Risk Management Tools to address Leading Risks / Factors of Well Control Incidents. Includes Well Modeling / Planning Risk Assessment and Analysis Rig Survey of Well Control Equipment Well Control Training Emergency Response Planning 30 10

11 Identify the risks. Perform Risk Assessment and Analysis. Based on Probability and Severity of Outcome Establish threshold for acceptable risks. Identify those risks that are unacceptable. Determine if the unacceptable risks can be mitigated to the point they become acceptable Risk event Group 4 ENVIRONMENT: Ice / Weather / Marine Problems Well control or relief well operation runs into whaling season or ice period Rig instability problem during or due to well control event Marine or aviation mishap during well control event Rank Mitigation Contingency H Rerank M Limit drilling schedule time e.g. defer testing to next season. Monitor ice movement for the duration of operations. Obtain agreement with locals and authorities to extend operating window for WC event Arctic specific rig & equipment WC audits (WWCI) Marine Systems Control audit (WWCI) Set up Ballast Model for vessel and run event scenarios (WWCI). Special traffic plan during critical hole section and WC operations to avoid marine or aviation mishap Use Ballast Model to determine stability recovery actions and execute quickly (WWCI) Pre-position ice breakers and rig tow vessel to allow rig to stay on location. Stabilize well, shut in, suspend or TA well for kill or relief well next season (WWCI) 33 11

12 34 IADC WellCAP Certification Rig Site Crew Training Advanced and Accelerated Well Control Training Well Control Exercises Include: Drilling Workover Well Servicing

13 Outlines the proper response to ALL well control incidents / emergencies Establishes Incident Command Structure (ICS) specifically for well control incidents / emergencies with detailed assignment of duties and responsibilities Identifies support services required in response to a well control incident Schedules proper training of response personnel through drills, and plan reviews Prepares the Operator for a Well Control Incident 37 INCIDENT COMMANDER Drilling Manager DEPUTY INCIDENT COMMANDER Drilling Engineer Duty Logistics Rep Duty Medical Rep Duty Safety/HSE Rep Duty Drilling Rep Duty Production Ops Rep Duty Personnel Rep Duty Public Relations Rep Duty Recorder Duty Regulatory Rep ON SCENE COMMANDER SITE SAFETY OFFICER ENVIRONMENTAL OFFICER WELL CONTROL OPS TEAM LEADER Well Control Team Leader SUPPORT CONTRACTORS 38 Cost Blowout Occurs ERP Developed Time Actual Costs Incurred without an ERP Actual Costs Incurred Utilizing an ERP Costs Incurred Lost Production Well Control Costs Environmental Costs Rig / Facility Physical Damages Excessive Costs Without an ERP Overreaction Inefficiencies Time Delays Waste 39 13

14 Develop a Working Relationship with the Well Control Contractor. Have an MSA in place. Develop ERP Jointly Keep Updated with Personnel Changes. Include Personnel with Well Control Experience on the Source Control Team. Conduct Joint Training / Drills. Communicate Regularly. Do Not Hesitate to Call for Any Well Control Incident. 40 This is NOT where you want to meet your ENERGY SYMPOSIUM 2011 first time. well control company for the

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19 Air Pollution H2S? Gas Plume Smoke Broaching of Surface Ground Pollution Area Population Contamination of Water Supply Contamination of Ditches / Public Drain Systems Area Evacuation Transportation Housing & Catering Water Sourcing Adjacent Land Availability Storage Equipment Staging Area AlternateAccess Route Media Coverage 55 Blowout! 56 Set Up Equipment Staging Area Establish Water Source Clear Rig / Debris From Wellhead Prepare the Location Establish Vertical Flow From Well Prepare / Replace Wellhead Cap Well Well Recovery Operation 57 19

20 Primary Duties Secure the incident site and determine status of all personnel Make initial assessment of the emergency situation Notify WCERT and Rig Contractor Management Mobilize locally available resources as required Identify other resources and expertise that may be required. Establish on-site operations, site safety, communications and medical facilities. Implementation of intervention and pollution control measures Provide regular updates to WCERT Provide well and engineering data to WCERT Initiate Project files, document control, and record keeping Provide / assist with on-site well control engineering 58 Primary Duties Staff the Emergency Response Room Establish communications with incident Site Assess the state of the incident and the actions required. Mobilize Well Control Specialists Wild Well Control Identify and initiate any follow-up actions required Keep WCERT Incident Commander and Management updated Facilitate approval of expenditures as required Identify other outside expertise that may be required Authorize the mobilization of resources Provide assistance with offsite engineering resources Well kill, Relief Well Planning, etc. 59 Access & Assessment of Location After or During Blowout Establish Hot Zone & Safe Area Establish Access & Egress Routes Commence Firefighting & Asset Protection Await Well Control Specialists & Develop Site Safety Plan For Entering Location Y Re-enter Location Possible N Evaluate Hazards & Ability To Protect Personnel Ignition /Explosion Secondary Explosions Structural Collapse Monitor Situation & Plan Relief Well Adequate Oxygen Supply Y Rig On Fire N Poison Gas Hazards Heat & Smoke Escalation Potential Escalation Potential Structural Collapse Broached Blowout Develop Operational, Safety & Rescue Plan Y Risk Justified N Monitor Situation & Plan Relief Well Re-enter Location 60 20

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27 Relief Well required to kill blowing well. Over 300 nearby residents evacuated for approximately 30 days. Closest 30 residents evacuated for approximately 45 days waiting on results of testing water wells. Over 4,000 civil lawsuits filed by nearby residents and businesses. 79 Blowouts are prevented by well trained and knowledgeable crews that are Prepared Properly rated, working and tested well control and kick detection equipment Practice effective drills for kick response Alert Key warning signs for kicks Report any warning signs observed Aware of Ongoing Operations at ALL Times Communicate amongst all crew members 80 Start thinking about well control and its risks during the planning of the well. Work closely with Drilling Contractor to minimize risks while drilling. This includes well control training. Establish relationship with Well Control Contractor. Develop a comprehensive Well Control Emergency Response Plan (WCERP) & train Communicate with the First Responders and Community

28 Emergency situation When a Well Control Incident begins and conventional well control methods do not work, ask for assistance. DO NOT HESITATE to activate the Well Control Emergency Response Plan. Work with the local First Responders. Be Proactive. Communicate with the Community. Work Smartly, Work Safely 82 Protect the Public Protect the Environment A QUICK RESPONSE IS IMPORTANT

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