Archive for oil drilling

Statoil Takes Helm at Eagle Ford Asset

Posted in Gas Industry, Oil Drilling, R&J Technical Services with tags , , , , , , on July 1, 2013 by amandarandjtech
by  Statoil ASA
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Press Release

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Monday, July 01, 2013

Statoil announced Monday that the company as of July 1 has assumed operatorship for all activities in the eastern part of its Eagle Ford asset in Texas. The Statoil-operated activities fall mainly within Live Oak, Karnes, DeWitt and Bee counties.

“This is an important milestone for Statoil’s development as an operator in the U.S.,” said senior vice president for U.S. Onshore, Torstein Hole.

“We now have operational activities in all our onshore assets, Bakken, Marcellus and Eagle Ford. Our organization in Houston is eager to further develop our Eagle Ford holding as operator and we look forward to engaging with communities and landowners in the eastern part of our joint venture acreage,” he underlined.

Statoil entered into the Eagle Ford shale in 2010, through a 50/50 joint venture with Talisman Energy USA Inc. Talisman initially acted as operator for the jointly owned acreage, under an agreement where Statoil was to attain operatorship for half the acreage at a later stage.

Last year, the companies agreed that Statoil, through a phased transition, would take responsibility for operations in the eastern half of the asset.

This acreage falls mainly within Live Oak, Karnes, DeWitt and Bee counties. Talisman will continue with operational responsibility for the western acreage, which is principally in McMullen, La Salle and Dimmit counties. The joint ownership for the total acreage is not impacted by the splitting of operational responsibilities.

Statoil has already taken over operations on three drilling rigs in the Eagle Ford. From July 1 the company has also assumed responsibility for producing wells, processing facilities, pipelines and infrastructure, and a field office in Runge, Karnes County.

Statoil Takes Helm at Eagle Ford Asset

“Both companies have been committed to executing the transition in a safe and responsible manner, whilst ensuring maximum value creation in the joint venture. We are also committed to continue the relationship and further develop strong ties with our host communities,” said Torstein Hole.

Statoil holds approximately 73,000 net acres in the Eagle Ford. Production stands at 20,200 barrels of oil equivalents per day (boepd) (Statoil share) from around 300 producing wells.

Statoil has been active in U.S. shale plays since 2008. Besides its activity in the Eagle Ford, Statoil holds significant positions in the Marcellus and the Bakken plays. Production from these positions is a strong contributor to Statoil’s North American growth strategy, where the ambition is to produce more than 500,000 boepd in 2020. Statoil’s global ambition is to produce 2.5 million boepd in 2020.

In North America, Statoil is established with U.S. offices in Houston and Austin, Texas; Stamford, Connecticut; Anchorage, Alaska; Williston, North Dakota and Washington DC and Canadian offices in Calgary, Alberta and St. Johns, Newfoundland and Labrador.

The company also owns and operates the South Riding Point crude oil terminal in the Bahamas and has a representative office in Mexico City, Mexico.

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New Website up and running

Posted in Electricians, Oil Drilling with tags , , , , on August 20, 2012 by amandarandjtech

R and J Technical Services is proud to announce the launch of our new website.  We’ve re-vamped our page to highlight our operations and employment opportunties. Take a minute to see the click on our new additions and find out more information on our company.  www.PowerProsUSA.com

National Oilwell to Acquire Robbins & Myers for $2.5B

Posted in Electricians, Gas Industry with tags , , , , on August 10, 2012 by amandarandjtech
by  Karen Boman

Rigzone Staff

Thursday, August 09, 2012

Original article found here

Houston-based oilfield service company National Oilwell Varco Inc. (NOV) will acquire Robbins & Myers in an all-cash transaction valued at approximately $2.5 billion, NOV said Thursday.

The combination of NOV and Robbins & Myers’ manufacturing infrastructure and portfolios of technology will allow NOV to further advance its presence in the oil and gas markets it services, NOV Chairman, President and CEO Pete Miller said in a statement on Thursday.

“Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry,” Miller said. “I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.”

The transaction will allow Willis, Texas-based Robbins & Myers “to join forces with an industry leader that will enable its business segments to fully capitalize on their respective strategies, enhance leadership positions in niche applications, and execute growth plans at a faster pace,” said Pete Wallace, president and chief executive officer of Robbins & Myers, in a statement Thursday.

The agreement calls for Robbins & Myers’ shareholders to receive $60/share in cash in return for each of the approximately 42.4 million shares outstanding. The acquisition is expected to close in the fourth quarter of calendar year 2012.

The deal is the latest in a series of acquisitions made by NOV this year as the company seeks to expand its product offering and customer base.

In April of this year, NOV announced an agreement to acquire Schlumberger Limited’s Wilson distribution business segment. NOV completed that acquisition in May.

NOV also unveiled plans to acquire CE Franklin, a Canadian supplier of products and services to the energy industry, for CAD$240 million. Schlumberger was the largest shareholder of CE Franklin.

In February, Subsea 7 and NKT Holding agreed to sell their NKT Flexibles joint venture to NOV for $672 million.

GHS Research sees NOV’s acquisition of Robbins & Myers as positive for both parties, with Robbins & Myers shareholders getting a respectable takeout price in an all-cash deal, GHS analyst Brian Uhlmer said in a research note Thursday.

The agreement for $60/share is a 28 percent premium to Robbins & Myers closing price on Aug. 8 and an approximately 12 percent premium to its 52-week high.

NOV will get the Robbins & Myers business for less than nine times earnings before interest, taxes, depreciation and amortization, but likely even less as it shaves $50 million to $75 million out of the cost structure.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Hiring Warehouse Clerk!

Posted in Oil Drilling with tags , , , on May 22, 2012 by amandarandjtech
We’re hiring! Have you heard the buzz of what’s going on in Williston? Have you wanted to get involved but haven’t known how? Well fantastic news!! R & J is hiring for a Warehouse Clerk position. MUST have previous experience. Housing option available, top pay and benefits, and a chance to see what the hype is all about. Qualified individuals can apply directly through our website at www.powerprosusa.com.

Can the U.S. Be Energy Independent?

Posted in Gas Industry, Oil Drilling with tags , , , on May 11, 2012 by amandarandjtech
by  Karen Boman
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Rigzone Staff

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Monday, May 07, 2012

 

As the United States finds itself with abundant natural gas supply and growing domestic oil production, the phrase ‘energy independence’ has become the new buzzword of politicians and oil and gas industry officials.

According to a recent Raymond James report, the United States could achieve energy independence by the end of the decade, Dow Jones reported in early April.

But can the United States truly become energy independent?

In the short to medium term outlook for oil, the United States effectively has no chance of becoming energy independent, said Dr. Michael Noel, senior vice president of Edgeworth Economics.

“Right now, we import so much oil because it’s cheaper to do so,” Noel said. “To forego a cheaper source of oil and replace it with a necessarily more expensive source generally does not make economic sense.”

The argument for energy independence implies that the Unites States should always pay a premium on energy to avoid Middle East oil instead of just a premium when price shocks coming from the Middle East cause price spikes in the United States.

“It’s an expensive insurance policy and that’s why we still use Middle East oil,” Dr. Noel commented, adding that, as long as the United States uses oil to a certain degree, the United States will always be subject to global oil shocks.

Currently, 20 percent of oil imported by the United States comes from the Middle East and 40 percent from OPEC member countries. Canadian oil comprises 20 percent of U.S. imports and is expected to keep growing. Ten percent of U.S. oil imports come from Mexico; the amount of oil imported continues to fall.

Even if the United States imported all of its oil from friendly countries such as Canada, a supply cut in the Middle East would mean customers in this region would need to source oil from somewhere else, bidding up the price of oil and drawing supply from Canada and other friendly countries. As a result, U.S. customers would be impacted with higher prices.

“The domestic price of oil will reflect the world price of oil, so thinking that more domestic drilling will bring domestic oil prices down is a bit naïve,” said John Z. Wetmore, producer for “Perils for Pedestrians” Television, a television series that examines the issues affecting people who walk.

Additionally, the faster the United States pumps its domestic reserves out of the ground, the sooner it will exhaust them and be even more dependent on foreign supplies, Wetmore commented in a statement.

Assertions by some politicians that U.S. energy independence means the U.S. will not have to send its troops over to the Middle East are not accurate, given the United States support of Israel.

“There is still going to be some involvement, given that a number of Muslim countries don’t like its existence,” Noel said.

“Energy independence doesn’t mean we’ll abandon our friends and allies around the world,” said Mike Amman, a Florida-based business finance and technology consultant. “Isolationism isn’t the answer, we’re joined at the hip (or at the wellhead) to the rest of the world, like it or not.”

The outlook is not good for cheap gasoline, given worldwide demand for oil. Wetmore noted that China is now a larger automobile market than the United States and India.

Other countries are trying hard to catch up with United States’ driving habits, Wetmore commented.

“Four dollars will look cheap when the world economy recovers,” said Wetmore. “It would all be more tolerable if we designed our cities and towns with more transportation choices, so we didn’t have to burn gasoline every time we made any trip for any purpose.”

Chris Nelder, an energy expert who has written numerous articles in the topic of Peak Oil, said that existing data doesn’t support the idea of the United States being energy independent.

Nelder questions whether production forecasts for unconventional oil plays such as the Bakken are feasible, and notes that Mexico’s production has been in long term decline.

While tight oil wells have huge initial production rates, they decline sharply in six months times. Tight oil production will also not work with lower oil prices.

“To be energy independent, we would have to produce about 9 million barrels of oil per day (bopd) from wells that give you 100 bopd,” Nelder noted, adding that oil prices need to stay above at least $85 per barrel to sustain production.

However, higher oil prices have also bolstered gasoline prices, and as U.S. consumers struggle with $4/gallon prices, they start to drive less, which kills demand. Oil production needs to remain on a narrow ledge to keep production flowing, and the incredible price swings to above $100 and below $85 impact supply.

“In that narrow band, do we really think it’s possible that for another decade we can drill thousands and thousands of wells?” said Nelder.

To keep output flat, the U.S. would have to draw down its oil resources more quickly, Nelder commented.. By 2030 and 2040, over two-thirds of the world’s oil fields will be in terminal decline. At that time, the United States will face difficulties in importing oil from anywhere.

“From that point, we’re going to need our domestic resources,” said Nelder. “We could actually be shooting ourselves by trying to achieve energy independence.”

Promise of Natural Gas?

The United States already is energy independent in natural gas, said ConocoPhillips Chairman and CEO James Mulva at a recent conference.

Energy industry leaders such as T. Boone Pickens and Robert Hefner are calling for greater use of natural gas in the United States in transportation.

Nelder thinks that T. Boone Picken’s plan to convert fleet vehicles to run on compressed natural gas makes a lot of sense, but worries that the deluge of natural gas that as resulted from the shale gas rush means that no companies can make money on natural gas.

The land rush mentality that ensued since late 2010 resulted in companies buying up a number of properties and drilling. A lot of gas is being flared, and plans have been proposed to convert liquefied natural gas import terminals constructed in the United States into export terminals.

Nelder said he thinks that the United States shouldn’t get crazy about exporting LNG until the United States really knows what it has in terms of supply, noting that the 100 years of natural gas supply in the United States hasn’t been proven and is highly speculative.

The United States already uses gas that is the equivalent of 11 million barrels of oil per day and faces the serious risk of finding itself faced with very expensive gas if gas use increases and LNG is exported.

A number of shale gas producers such as Chesapeake Energy have taken on a lot debt to acquire shale gas properties, thinking they can flip the leases. But these companies face the real possibility of going bankrupt when buyers start to question whether the can profitably produce gas, Nelder noted.

 

Original article found here

Mr. President, Now That We Need It, Give Us Our Oil Back

Posted in Gas Industry, Oil Drilling with tags , , , , , on April 13, 2012 by amandarandjtech

Raymond J. Learsy

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Columnist

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Friday, April 13, 2012

  • Iran is cheering
  • Speculators are profiting
  • Oil producers celebrating
  • Our nascent economy tottering
  • Household budgets being ripped apart
  • Home owners in Maine freezing

You are sitting on some 700 million barrels of oil in our Strategic Petroleum Reserve (SPR) bought and paid by both the 99% and even the 1%.

Here we are living an economic and political emergency while the tool we have to deal with this issue remains untapped.

A reasonable release from the SPR would immediately drop the price of oil significantly and in turn keep gasoline prices from rising further in the months ahead and very possibly keep the economic recovery on track. In June 2011, when the Department of Energy announced it would be releasing 30 million barrels of oil, the price of oil dropped almost immediately by $4.00/barrel (“White House to release 30M barrels of oil” Politico 06.23.11) sending the speculators running for the hills.

Back then when the release was announced Speaker of the House John Boehner bridled:

Everyone wants to help the American people and lower prices at the pump — especially now, in tough economic times. And it is good that the Obama Administration is conceding that increased supply will lower those costs. But by tapping the Strategic Petroleum Reserve, the President is using a national security instrument to address his domestic political problems. The SPR was created to mitigate sudden supply disruptions. This action threatens our ability to respond to a genuine national security crisis and means we must ultimately find the resources to replenish the reserve — at significant cost to taxpayers.

This time around Mr. Boehner and everyone else should understand high, ever higher, oil prices are Iran’s most effective weapon. It will help the mullahs realize the cash flow they need to maintain their authoritarian rule while playing nuclear roulette. Embargoing swaths of their oil exports will have little or no impact if their saber rattling, together with the help of the oil speculators, pushes oil prices to ever higher highs.

Mr. President, pull the plug on the SPR now, and let the oil flow.

Raymond J. Learsy is the author of Oil and Finance: The Epic Corruption Continues and Over a Barrel: Breaking Oil’s Grip on Our Future. He has worked as a commodities trader, private investor and is currently a member of the Woodrow Wilson International Center for Scholars. Learn more at www.raymondlearsy.com.

Original article found here

What equipment makes up a rig?

Posted in Gas Industry, Oil Drilling with tags , , , , , , on March 30, 2012 by amandarandjtech

Rig Equipment

Drilling rigs typically include at least some of the following items: See Drilling rig (petroleum) for a more detailed description.

  • Blowout preventers: (BOPs)

The equipment associated with a rig is to some extent dependent on the type of rig but (#23 & #24) are devices installed at the wellhead to prevent fluids and gases from unintentionally escaping from the borehole. #23 is the annular (often referred to as the “Hydril”, which is one manufacturer) and #24 is the pipe rams and blind rams. In the place of #24 Variable bore rams or VBR’s can be used, they offer the same pressure and sealing capacity found in standard pipe rams, while offering the versatility of sealing on various sizes of drill pipe, production tubing and casing without changing standard pipe rams. Normally VBR’s are used when utilizing a tapered drill string (when different size drill pipe is used in the complete drill string).

  • Centrifuge: an industrial version of the device that separates fine silt and sand from the drilling fluid.
  • Solids control: solids control equipments for preparing drilling mud for the drilling rig.
  • Chain tongs: wrench with a section of chain, that wraps around whatever is being tightened or loosened. Similar to a pipe wrench.
  • Degasser: a device that separates air and/or gas from the drilling fluid.
  • Desander / desilter: contains a set of hydrocyclones that separate sand and silt from the drilling fluid.
  • Drawworks: (#7) is the mechanical section that contains the spool, whose main function is to reel in/out the drill line to raise/lower the traveling block (#11).
  • Drill bit: (#26) device attached to the end of the drill string that breaks apart the rock being drilled. It contains jets through which the drilling fluid exits.
  • Drill pipe: (#16) joints of hollow tubing used to connect the surface equipment to the bottom hole assembly (BHA) and acts as a conduit for the drilling fluid. In the diagram, these are “stands” of drill pipe which are 2 or 3 joints of drill pipe connected together and “stood” in the derrick vertically, usually to save time while tripping pipe.
  • Elevators: a gripping device that is used to latch to the drill pipe or casing to facilitate the lowering or lifting (of pipe or casing) into or out of the borehole.
  • Mud motor: a hydraulically powered device positioned just above the drill bit used to spin the bit independently from the rest of the drill string.
  • Mud pump: (#4) reciprocal type of pump used to circulate drilling fluid through the system.
  • Mud tanks: (#1) often called mud pits, provides a reserve store of drilling fluid until it is required down the wellbore.
  • Rotary table: (#20) rotates the drill string along with the attached tools and bit.
  • Shale shaker: (#2) separates drill cuttings from the drilling fluid before it is pumped back down the borehole.
  • File:Oil Rig NT8.jpg