When you marry a firm whose products are driven by the unwavering commitment to sustainability with the needs of an organization that is dedicated to reducing its carbon footprints, the outcome can be nothing short of a technological advancement that benefits the planet. This is what transpired when Helmet & Payne, Inc.’s (H & P) client Williams, a natural gas company, wanted a solution for its drilling dilemma - how to address increasing surface disruption and the inefficiencies caused by the nature of the sands in the Piceance Basin where Williams operated. H&P, performing contract drilling for Williams, came up with the answer in the form of a product they call the FlexRig that continues to deliver huge economic and environmental benefits.
Innovation
Helmerich & Payne, Inc. (H & P) is a company primarily engaged in contract drilling of oil and gas wells for exploration and production companies. Performing these services for Williams, it was faced with the issue of the unconventional nature of the tight sands in the basin of operation. Wells in a conventional gas drilling operation are typically drilled on an initial ratio of one well to each 640 acre section. If needed to drain the reservoir, a second, third, or possibly fourth well might be added to produce from all recoverable reserves. Even with four wells per section, each well has its own surface location with 1 to 2 acres of graded land and pits to handle produced fluids. This density of drilling is relatively reasonable from a surface disturbance standpoint.
However, with an unconventional tight sands situation like Williams’ in the Piceance Basin, wells can be drilled economically down to 10 acre spacing. Theoretically this could mean as many as 64 wells per section. Given the graded area per well and that level of drilling density, the surface disruption can quickly become unattractive for an area. It also means frequent mobilization and demobilization as the rig is moved from site to site increasing the possibility of accidents and increased fuel consumption. Even after the wells are drilled the daily site visitations can mean a lot of traffic in a small area detracting from and competing with other potential land surface uses. Adding to the issue was the mountainous nature of the basin which naturally reduces the number of suitable drilling locations. Williams was looking for a solution to reduce surface disturbance and ecological burden while simultaneously increasing human safety and financial return.
H&P’s answer to this dilemma was its latest innovation in its FlexRig series called the 4-S. One of the most noteworthy features of this was the ability to drill up to 22 wells, while simultaneously conducting production operations. The wells are drilled on a 2X11 layout and the rig is hydraulically driven on rails to each new location within the matrix. The idea to create the high well (22 count) capability from a single location was new to onshore drilling and would not be feasible if the well spacing is not dense.
The importance of this new rig is not limited to Williams’ Piceance Basin development. Much of the country’s new gas supplies are increasingly coming in the from of large blanket tight sands (unconventional) plays which ten years ago were either not economical or only marginally so. Many of these potential fields are located in Rocky Mountains where minimizing surface disturbances is of high importance to multiple stakeholders.
Impact
The FlexRig 4-S innovation delivers value on personal, environmental as well as financial fronts. At the personal front the use of this innovative technology resulted in safety improvements. FlexRig series has delivered significantly better Total Recordable Incidence Rates (TRIR) than conventional rigs similarly employed. FlexRig 1S introduced in 1998 delivered 23% fewer TRIR than conventional rigs as reported by IADC US land rigs calculations. The FlexRig 2S introduced in 2001 showed 54% fewer TRIRs while FlexRig 3S yielded approximately 80% fewer TRIR. As for FlexRig 4S the ability to drill up to 22 wells from a single location will undoubtedly further improve these safety scores. The innovation also resulted in enhanced operator comfort because of the use of an integrated control system that allows for hoisting and lowering of the drill string with a single joy stick. The variable frequency AC drive in combination with an electronic driller and block control system greatly reduces the physical exertion and stress placed on the operators resulting in better working conditions for the operator. This, in an industry that has high turnover rates and dearth of manpower, is a valuable advantage.
Financially, the benefit is gained by a step-change improvement in cycle time per well. Alhough the initial rig costs more to build and so the daily lease rate is higher, the elimination of up to twenty mobilization/demobilization cycles means that each day rate paid is for drilling a well as opposed to a rig in transit. Because a rig traditionally takes 5 to 7 days to move to a new site, the non-working paid days can add up quickly. Since FleRig allows for simultaneous drilling and production there is an improvement in the cash flow on each well as gas flows start earlier. The net present value of this acceleration of production is significant.
From an environmental standpoint, the new rig delivers significantly reduced burden on a given area due to step change in improved logistics. A single location for up to 22 wells significantly reduces the total graded well pads, miles of roads, miles driven, number of employees, trucks in the field, number of pits, etc. Even once all the wells are drilled, the burden continues to be much less than it otherwise would be since these wells will be visited and serviced for the next thirty years. It is a big improvement for the local communities as well as the surrounding areas’ flora and fauna.
Inspiration
The design of the FlexRig might have received an impetus from the needs of the client, but the thrust toward carbon footprint reduction is evident in the environmental benefits derived from its use. Increasing the efficiency of production by reducing the unproductive time when combined with the motivation for minimal surface disruption is a testimony of the prosperity generated by sensitivity to people and the planet.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
