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CANADIAN ASSOCIATION OF DRILLING ENGINEERS 800, 540 - 5 Avenue SW, Calgary, Alberta T2P 0M2 2006/2007 EXECUTIVE President Doug Hollies 645-2761 Past President Gord Wagner 232-6066 Vice President Ryan Schoenhals 267-0349 Secretary Robin Finley 451-0740 Treasurer Michael Coss 781-4668 Membership Chairman Jason Tiefenbach 543-8012 Education Chairman Mike Buker 213-3615
Social Chairman Dan Schlosser 531-5284 CADENews Editor Glenn Mencer 233-3506 Technical Chairman Henry Schultz 232-5095 IT Chairman Cris Catrinescu 668-4559 Executive Member Khalil Shahbazi 210-2696 Drilling Conf. Liaison Linda D’Angelo 543-8023 CAODC Liaison Terry Rosentreter 515-8400
APRIL LUNCHEON Date: Wednesday, April 18, 2007 Place: The Westin, Calgary Time: 11:30 a.m. Reception 12:00 noon Luncheon 12:30 p.m. Presentation Speaker: Gord Wagner Topic: When Should Premium Connections Be Run On
Casing And Tubing?
Premium connections should be run when additional connection performance is required from that of a standard API connection. In well casing and tubing design, the anticipated tubular loads such as collapse, burst, tension, compression, and torque are determined. The proper tubular size, weight, grade and connection is then selected to meet the anticipated loads and meet a minimum required design factor. Standard API connections will meet most design requirements but when they do not, a premium connection should be selected and run. This presentation will provide a brief overview of API and premium connections and several connection performance requirements where premium connections should be run.
Gord Wagner is currently the Technical Manager
at Summit Tubulars Corporation. He started with Summit in July 2000 after working 18 years with four different oil companies. Gord provides technical support to Summit’s customers and staff in tubular design, including connection and material selection. Summit Tubulars has supplied Oil Country Tubular Goods (OCTG) products to the Canadian oil and gas industry since 1985. Summit stocks a large quantity of tubulars ranging from 33.4 mm OD through to 339.7 mm OD in a variety of weights, grades with both API and premium connections.
Gord is a Professional Engineer and maintains
memberships in APEGGA, CADE, CHOA, and SPE. He also chairs the DACC subcommittee responsible for the new EUB Directive 010 — Minimum Casing Design Requirements, formally known as EUB Guide 10. Gord graduated in 1982 from the University of Manitoba with a B.Sc. in Mechanical Engineering. APRIL LUNCHEON ............................................................................................ 1
LUNCHEON TICKETS........................................................................................ 2
SEARCHING FOR H2S DATA: .......................................................................... 2
CADE BURSARY INFORMATION: .................................................................... 3
CADE●CAODC DRILLING CONFERENCE ....................................................... 3
SPE REGIONAL TECHNOLOGY WORKSHOP ................................................. 4
CADENEWS SPONSORSHIP ............................................................................ 5
SPEAKER CONTACT INFORMATION............................................................... 6
UPCOMING EVENTS ......................................................................................... 7
MEMBERS ON THE MOVE................................................................................ 7
WELCOME NEW MEMBERS ............................................................................. 7
RIG COUNT ........................................................................................................ 7
IN THE DAYS OF THE INDEPENDENTS........................................................... 8
This issue of CADENews has been sponsored by:
LUNCHEON TICKETS Tickets for the Wednesday, April 18, 2007 CADE Technical Luncheon are available on a pre–purchase basis at www.cade.ca, by Visa credit card (if ordering through the website, and an e-mail confirmation is not received within two business days, telephone Bobbi Murray at 403-264-4311), or from the following ticket sellers until 12:00 noon on Friday, April 13, 2007. Accepted methods of payment include Visa, cheque and cash.
Rosemary Regan BJ Services Company Canada 801 - 6 Avenue SW 531-5151
Barbara Hewko Conocophillips Canada Ltd. 401 - 9 Avenue SW 260-3794
Mildred Lenyk ExxonMobil Canada Room 35097, 237 – 4 Avenue SW 237-3765
Sue Binsted Petro-Canada 150 - 6 Avenue SW 296-6793
Michelle Brossard Schlumberger Canada Limited 525 - 3 Avenue SW 509-4598
Tracey Ullrich Shell Canada Limited 400 - 4 Avenue SW 692-5492
Tammy Bessette Smith International Canada, Ltd. 1600, 335 - 8 Avenue SW 206-0336
Judith MacLachlan Talisman Energy Inc. 3400, 888 - 3 Street SW 237-1110
Carley Engel EnCana Oil and Gas Partnership Box 2850, 421 – 7 Avenue SW 645-4043
SEARCHING FOR H2S DATA: DO YOU SEARCH FOR THE 10 CLOSEST TESTS, OR CONSIDER ALL WITH 3X3 TOWNSHIPS? Andrew Newsome, XI Technologies Inc.
Alberta’s oil and gas industry maintains a reputation for its high standards for H2S safety and awareness. The Alberta Energy and Utilities Board (EUB) has expectations for the level of attention given to the assessment of H2S release rate potential. Historical information from offsetting wells is necessary to make these assessments.
There appears to be two schools of thought on the question of what data should be used to determine an H2S release rate: search and evaluate the ten closest tests; or, search and evaluate a 3x3 township area.
In most cases, searching for the ten closest sample points will provide a representative sampling of data for a given horizon. In some cases it may be necessary to search further distances to establish a firm geological assessment. This is what the EUB would define as a three township, by three range area.
Two documents: EUB Directive 56 — Energy Development Application and Schedules, and the Canadian Association of Petroleum Producers’ (CAPP) H2S Release Rate Assessment Guidelines govern the way an H2S release rate assessment is to be determined. Both documents allow room for interpretation. Driven by a desire for EUB compliance,
questions are being raised by the industry regarding the right way to do it.
10 Closest Sample Points
XI Technologies’ H2S Search—Gold gives clients all of the necessary data and tools to begin an H2S release rate assessment for a prospective well. The H2S Search—Gold is designed around the guidelines in the previously mentioned documents.
The key benefit of this product is the way data is retrieved. The data included gives users a starting point for assessing the H2S release rate. EUB regulations require that five wells with gas analyses are examined for each formation that may be encountered. XI’s report searches further and provides ten wells from at least five unique wells. The same search will apply for flow rates. The format of this report has stayed consistent for the last seven years.
For the majority of wells drilled, this approach has been an adequate sampling of data. The exception to this is when the EUB feels that the geologic trends for the area have not been fully addressed. 3x3 Township Search
In Section 7.9.15.2 — Geological Mapping of Directive 56, the EUB recommends that the applicant
begin its geological assessment using a three-township by three-range map plot to examine the well penetration data appropriate for each zone that it has identified or will identify on Schedule 4: Well Purpose as its primary and secondary zones that may contain H2S gas.
Apart from the primary and secondary zones, other formations may require the applicant to address a larger area as well.
The three by three area is mentioned in the Geological Mapping portion of the H2S Release Rate Assessments section, but the EUB has recently determined that the Tabulated Data portion should adopt the same area boundaries. Therefore, in some instances, it is necessary to consider the highest gas analysis and highest flow rate among all wells within a 3x3 township area.
2007 CADE /CAODC Drilling Conference
Focus on the Future : Unconventional ThinkingThe Playhouse at Vertigo
Theater Centre
May 16th , 2007
Calgary, Alberta
Canada
Visit the website at www.drillingconference.ca
Use Your Judgment
It is necessary to involve geological expertise in this process. There is never a black-and-while rule to state which method is correct. For each formation, a judgment call is necessary to establish which approach is correct.
When determining the potential H2S release rate, the 3x3 township area is a more thorough approach; however it may be overly conservative. If every formation were to be considered in this regard, the H2S release rates of nearly every well drilled in W5 and W6 would be considered more sour than what is accurate. In many cases sour samples which are not geologically analogous will be picked up in the search and will dramatically affect H2S release rates.
In other situations, the ten closest samples do not provide a sufficient geological representation.
A few examples of situations where a 3x3 search may be appropriate: • The formation in question is the primary or
secondary zone. • All ten samples are found within 2 km. • Only one pool has been addressed when others are
known nearby. • Though data has been found, few are considered
valid or analogous. • No identifiable trend can be established among the
ten samples. Resources Available
While XI has opted for the methodology to search for the ten closest samples to avoid unnecessarily amplified H2S release rates, recognizing that there are many cases that require more intensive measures. Soon a new feature will be included.
Retrieve 3x3
This is an extension to an existing feature, Retrieve More Records, which allows users to retrieve up to fifty more records for a given formation. With this, users can now download the EUB’s specific request of 3x3 townships worth of data.
For more information regarding this issue or the feature mentioned above, please contact XI Technologies’ Support at (403)296-0077 or [email protected].
CADE BURSARY INFORMATION: Spring 2007
The Canadian Association of Drilling Engineers (CADE) sponsors a student bursary program. This program is intended to support dependants of CADE members, or CADE members themselves, who are furthering their education in a petroleum industry related field of study. This bursary is open to students that are residents or landed immigrants of Canada studying in either Canada or abroad. You must be an active CADE member to be eligible. Visit the CADE website for membership information, http://www.cade.ca/m.php?p=membership
If you or someone you know meets these requirements and would like to apply for this bursary, go to the scholarship section on the CADE website http://www.cade.ca/scholarships.htm and download the .pdf file called CADE Bursary Application. Complete the application and fax it (with cover page) to the CADE office (403)263-3796. Call (403)264-4311 to confirm receipt of fax. The deadline for applications is July 2, 2007.
The selection process will be at the discretion of the
CADE Executive Committee and recipients will be notified no later then December 3, 2007.
If there are any questions regarding these bursaries,
contact Mike Buker at (403)213-3615. Thank you.
CADENEWS SPONSORSHIP Have you considered sponsoring an upcoming edition of the CADENews? The newsletter is an excellent forum that reaches industry in both print and electronic formats. For further information on sponsoring an upcoming issue, telephone Glenn Mencer (403)233-3506.
CADENEWS— PAST AND PRESENT SPONSORS
PAST TECHNICAL LUNCHEON SPEAKER CONTACT INFORMATION
Date Topic Speaker(s) / Company Telephone Email
Mar 21/07 Drilling Offshore: Meeting the Northern Challenge
Henry Schultz Devon Canada Corporation
403-232-7100 [email protected]
Feb 28/07 Wellcore™: A Full Well LifecycleData Managent Solution
Jeff Austin Decision Dynamics Technology Ltd.
403)451-0740 www.ddytech.com
Jan 17/07 Comedian Cris Nannarone Funny Business Inc.
403-258-2040 www.cristino.ca
Dec 13/06 Oxidation as a Rheology Modifier
Khalil Shahbazi University of Calgary
403-210-2696 [email protected]
Nov 22/06 Near Bit Reamer Zach Linkewich ConocoPhillips Canada
403-710-5541 [email protected]
Oct 11/06 Hardbanding And Its Important Role In The Drilling Industry
John G. Mobley Arnco Technology Ltd.
832-214-5200 [email protected]
Sep 14/06 DEA 161: A Joint Industry Project to Develop Global Best Practices & Methodologies for Predicting Wellbore Stability
James Webster Chief Operating Officer for Knowledge Systems
Jun 14/06 CAODC/CAPPJoint Presentation
John Brown - CAODC John Squarek - CAPP
403-264-4311 403-267-1100
[email protected] [email protected]
May 17/06 Structural Design for Thermal Wells
Trent Kaiser Noetic Engineering Inc.
403-770-7011 [email protected]
Apr 12/06 Optimizing Bit Performance using an Innovative Down-Hole Data Acquisition Module
Mike Read PTAC Seasonal Load Levelling Business Case Project
403-874-8096 [email protected]
Mar 15/06 Improving Drilling Performance with Raptor™
John Clegg ReedHycalog
403-234-9999 [email protected]
UPCOMING EVENTS CADE Technical Luncheon 2007 CADE●CAODC Drilling Conference CADE Technical Luncheon Wednesday, April 18, 2007 Wednesday, May 16, 2007 Wednesday, June 13, 2007 The Westin, Calgary The Playhouse at Vertigo Theatre Centre, Calgary The Westin, Calgary
MEMBERS ON THE MOVE Name Company Telephone Email Glenn R. Brown Grant Prideco – Beijing, China 011-86-10-64403590 [email protected] Tyler Crooks National Oilwell Varco 403-294-5746 [email protected] Dale Heidt Alliance Oilfield & Industrial Supply Ltd. 403-478-4402 [email protected] Kip Pratt Unconventional Gas Resources Canada 403-269-1690 [email protected] Lee Robertshaw Sirius Energy Inc. 403-216-0023 [email protected] Glenn Watt Kodiac Petroleum 403-513-2261 [email protected]
WELCOME NEW MEMBERS Name Company Telephone Email David Bexte Schlumberger Well Services 250-785-4467 [email protected] Darren Bidyk Halliburton - Security DBS Drill Bits 403-231-9464 [email protected] Craig Bothwell Halliburton Energy Services 403-231-9300 [email protected] Dan Cave Murphy Oil Company Ltd. 403-294-8000 [email protected] Joel Cavenagh M-I SWACO 403-290-5300 [email protected] Fred Hensel Akita Drilling Ltd. 403-292-7979 [email protected] Clifford Hogstead EnCana Corporation 403-645-2000 [email protected] Robert J. Hunt Horizon North Logistics Inc. 403-517-4654 [email protected] Les Johnson EnCana Corporation 403-645-2000 [email protected] Robert Kay Cork Exploration Inc. 403-818-7033 [email protected] Garry Kolodychuk EnCana Corporation 403-645-2000 [email protected] Trevor Kossowan BG International Limited 403-538-7400 [email protected] Shawnda Lahey EnCana Corporation 403-645-2000 [email protected] Dave Overland Halliburton - Security DBS Drill Bits 403-231-9300 [email protected] Chris Perkons EnCana Corporation 403-645-2000 [email protected] Frank Pimiskern Akita Drilling Ltd. 403-292-7979 [email protected] Asher Qureshi Landmark Graphics Canada 403-263-0070 [email protected] Jerry Raduy Enseco Energy Services Corp. 403-806-0088 [email protected] Jarred Schindel Reedhycalog 403-234-9999 [email protected] Rick Sorensen Newalta Corporation 403-266-6556 [email protected] Jennifer St. George M-I Swaco 403-290-5300 [email protected] Kevin Tucker Akita Drilling Ltd. 403-292-7979 [email protected] Brian Varcoe Ryan Energy Technologies Inc. 403-269-5981 [email protected] Nigel Werenka EnCana Corporation 403-510-9222 [email protected] Frank R. Zischka Zipec Holdings Ltd. 403-650-4685 [email protected]
RIG COUNT April 10, 2007 April 11, 2006 Active Down Total Utilization Active Down Total Utilization AB 83 635 718 12% 205 446 651 31% BC 29 51 80 36% 45 37 82 55% SK 14 61 75 19% 19 32 81 23% NWT 2 1 3 67% 0 2 2 0% MB 0 5 5 0% 0 6 6 0% TOTAL 128 753 881 15% 269 523 792 34%
IN THE DAYS OF THE INDEPENDENTS Sandy Gow Concordia University College, Edmonton
The number of rigs fielded by the small investors, the independents, outnumbered the drilling and oil companies until the Great Depression of 1929 - 1937. Their owners had some successes but many more failures. Most firms collapsed because they ran out of money before they found oil, and because their advice on where and how to drill was not always the best. Sometimes their equipment was in rough shape, like a few of their crews, and broke down regularly.
The Twenties were the heady days for
independent exploration in Alberta. Their first focus was on the fields opening up during this decade. But beyond the Turner Valley, Wainwright, Lethbridge, Medicine Hat, and Viking fields, groups of investors were also pooling their resources to file on leases and to buy or hire rigs. They punched holes from the Canadian-American border northward to Peace River and into northeastern British Columbia; from the Rocky Mountains to the Alberta-Saskatchewan border. What they lacked in knowledge they made up for in sheer enthusiasm. Several members of the British nobility rubbed shoulders with Alberta entrepreneurs, but their lofty status brought no one any gushers. In Turner Valley in particular the independents might drill on and on in that tortuous formation for several years before finally declaring the whole operation a loss. Periods of drilling were interrupted by periods of inactivity while the investors went off to look for more money. The crew usually abandoned their bunkhouse shacks and wandered off to find work elsewhere, anywhere. If it were harvest time they looked for a threshing crew.
Usually the rig was closed up and left empty,
and when the owners returned they might just find that it had been stripped: casing, cable, pipe, drilling tools, belts, boilers, steam engines, lumber, bunkhouse furniture, hand tools, nails… the whole lot. Those owners who still had a few dollars to spare in the company bank account would hire a watchman, supply him with some food, and leave him to watch things. When his salary ceased to come out to the rig he, too, would wander off, leaving the rig to be picked over by the crews of those still operating.
One watchman at a rig in Turner Valley proved more imaginative; when his pay dried up he began selling the owner’s equipment off, a piece or two at a time. When almost everything of value was gone, he lit out. But he did not count on the owner’s good luck at the bank: several days after his departure the old boy came back with a crew and a full load of enthusiasm for his beloved well, only to discover that it was inoperable. He found not much more than a derrick, a few empty sheds, and a bunkhouse with no bunks. The case was turned over to the Mounties, who located the former watchman at a bootlegger’s in Lethbridge. Here he was whiling away his time selling small odds and ends from the rig out of the back seat of his Model A. The owner of a remarkable memory, the watchman piously confessed and then listed who got what, when, and where, and the Mounties proceeded to recover it. The rig was back drilling within a week but the hole later turned out to be a duster and there was not a second set of investors forthcoming. The watchman went to jail.
The Great Depression brought an end to most of
the frantic activity of the independents, leaving only sporadic drilling by a few of the more cautious ones with a little money. The last hurrah of the Twenties was probably the attempt by 600 small stockholders to float the Oxville Oil, Gas and Development Company out of Lloydminster for exploration on both sides of the provincial boundary. A mountain of dreams was tied up in that company but they were all dashed in the Crash of 1929.
Future independents were fewer in number and
different men. They were better informed; more knowledgeable about geology, equipment, and drilling; and much more skilled at finding and holding on to money. A handful of them would survive the Depression and go on to prosper during World War II and after Leduc #1 was brought in.
Canadian Association of Drilling Engineers 800, 540 – 5 Avenue SW Calgary, AB T2P 0M2
