NEWS
Offshore  

Standard Equipment to Help Cut Offshore Drilling Costs

The global offshore oil industry could cut exploration costs by more than 30% if it would just agree to use standardized equipment, according to the International Marine Contractors Association (IMCA).

When starting a new offshore drilling project, oil companies often contract out the work to engineering companies and oilfield services, and the sub-contractors often fabricate tailor-made parts and equipment. In-house fabrication is also common, necessarily leading to differences in equipment from project to project, Oil Price reported.

Manufacturing unique equipment to service individual projects raises costs, however, and also extends development time. The London-based IMCA says that if the industry would agree on standardized equipment, they could cut the cost of exploration by one third. Analysts have been arguing for standardization throughout the industry for years, but when oil prices traded in triple-digit territory, there was little impetus to work together. The collapse of oil prices over the past two and a half years has helped focus minds.

Onshore, the revolution is already underway. The tens of thousands—and indeed, hundreds of thousands—of shale gas wells drilled each year have sparked a much more rapid move towards standardization. Drilling at that blistering rate makes streamlining and standardization unavoidable. Unlike offshore, drilling shale wells has become more like a manufacturing process, with building well pads, drilling laterals and fracking happening at such a frequency that it starts to resemble an assembly line. Standardization only makes sense.

The size of an offshore drilling project is a few orders of magnitude larger than the typical shale well. The number of separate projects is many times fewer. As a result, the pressure to standardize is much less. “Oil companies could take out 30% of the cost using standardized specifications and ruthlessly pragmatic engineering,” Allen Leatt, CEO of IMCA said.

News No: 771
Date: 2016/12/27 -
News Source: Financial Tribune

Offshore  Drilling  exploration  IMCA  oil 

Comments:

Leave a Comment:

   
   
   
 

Iran’s Exports to Persian Gulf Nations Rise by 38% in 8 months

The value of Iran’s non-oil goods exported to the littoral states of the Persian Gulf in the past 8 months register a 38% increase, compared with the corresponding period in the last year, surpassing a total of $6.5 billion.
 

China Will Resume Oil Import From US

Unipec, the trading arm of Chinese state oil major Sinopec and China’s largest buyer of US crude oil until recently, is set to resume purchases from the United States “very soon,” and volumes are likely to be significant, a senior Unipec executive told S&P Global Platts on Saturday.
 

OPEC Unplanned Supply Losses Could Double Cutback

OPEC may be about to succeed by accident, again. Unplanned supply losses from members Iran and Venezuela could effectively double the intended cutback of 800,000 bpd OPEC pledged last week, according to the International Energy Agency, Bloomberg reported.
 

Oman to Cut Crude Output by 2%

Oman will cut oil output by 2% from January for an initial period of six months, according to a letter sent to customers of Omani oil by the country’s oil and gas ministry.
 

Japan Will Resume Iran Crude Purchases in Jan.

Japanese refiners will start buying Iranian crude oil in January, but will only continue buying until March to make sure they don’t get on the bad side of Washington in case the 180-day sanction waivers are not extended, S&P Global Platts reports, citing the head of the country’s Petroleum Association.
 

Iran Steel Industry Booming despite Sanctions

Head of the Iranian Steel Producers Association (ISPA) Bahram Sobhani announced that Iran is capable of producing 25 million tons of steel in the current fiscal year (ends March 21, 2019) despite the US sanctions re-imposed against Tehran.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners