OIL 101

INTRODUCTION TO
DRILLING

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 DRILLING
This Intro to Drilling overview includes:

Wildcat Well and Current Drilling Capabilities

Oilfield Services

History of Drilling

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 Locating Reservoirs

The first step in adding value is locating the oil and gas
reservoirs that are often far below the surface, and in
deeper offshore prospects.

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 Exploratory Wells

Even with the latest seismic technology and computer modeling,

many characteristics of a prospect remain unknown until an
exploratory or “wildcat” well is drilled.

“You can’t find oil if you don’t drill wells.”

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 Offshore Exploration

Offshore producing wells exist in 10,000 ft of water

and are drilled over 20,000 ft deep into the earth’s
surface.

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Today, technologies are available for the industry to drill
wells over 25,000 ft, with bottom hole temperatures
exceeding 400⁰ and pressures approaching 20,000 PSI.

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 Horizontal Wells Deviated Wells

S Shaped
J Shaped
Horizontal
Drilling

In both onshore and offshore operations, horizontal

and deviated wells to maximize reservoir recovery are
now the norm.

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 Environment, Efficiency, Safety

Drilling rig staff, technology, equipment and processes

focus on getting this complex task done as efficiently,
safely, and with the smallest environmental footprint
possible.

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 Technical Challenges

There are constantly new technical challenges in extracting

hydrocarbons from deeper and more hostile and complex
environments.

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The wildcat and subsequent development drilling operations can
cost tens, if not hundreds of millions of dollars, and represent
years of exploratory analysis.

Available drilling technologies can limit the E&P operator’s ability

to find and produce ever more scarce resources.

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Oilfield Services

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 Oilfield Services (OFS)

There is a common lack of understanding of the

importance of the Oilfield Services industry (OFS).

This $165 billion segment (in 2014) is both large and

complex with literally hundreds of global participants.

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 What Oilfield Services Does

Oilfield services companies design, produce and

deliver both equipment and technical services needed
to drill and complete wells.

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 Oilfield Services at the Wellsite

Cementing Perforating Logging Testing

In addition to the drilling rig contractor on the

well-site, there can be 30-40 different
contractors doing technical services like
cementing, perforating, logging, and testing.

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 More on Oilfield Services

In a separate module, we will present more depth on the

OFS equipment, technologies and processes.

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Historical Perspective

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 Cable Tool Rigs

In 1869, the first US discovery well in Pennsylvania was

drilled to a depth of only 69 ft using what was known as a
cable tool rig.

These rigs operated by lifting and dropping a heavy string of

tools into the borehole, with very slow progress.

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 Kelly Rotary System

The Kelly Rotary System was first used at Spindletop,

Texas, in 1901, and struck the famous Lucas gusher that
went on to produce 100,000 barrels per day.

It became the most common way to drive the drill string

and cutting bit until the 1980s.

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 Top-Drive System

In 1981, engineers at Transocean partnered with National

Oilwell Varco (NOV) for an R&D program called the Top-
Drive System.

Today, top drive technologies are essential to successful

deepwater and long horizontal well drilling.

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 History of OFS Companies

Some Oilfield Service companies have a long heritage.

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 Baker Hughes

Hughes Tool Company (now Baker Hughes) was

established in 1909, when Howard Hughes, Sr. patented
a roller cutter bit that dramatically improved the rotary
drilling process.

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 Halliburton

In 1919 – Erle P. Halliburton established the “New Method

Oil Well Cementing” Company in Oklahoma.

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 Schlumberger

Also in 1919 – Conrad and Marcel Schlumberger and

their father invented a downhole well evaluation
technique which became the basis for the Schlumberger
Corporation.

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History of Oil

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 There's More?

This Intro to Drilling material was taken from our

Oil 101: Introduction to Oil and Gas
course.

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 Who are we?
EKT Interactive staff have provided oil and gas training
since 1986.

Visit us at www.ektinteractive.com to learn more.

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