THE VALUE OF AUTOMATING THE RIG FLOOR

By Robert Thibodeaux, P.E., Director, Casing Products & Services and Jeremy Angelle, Vice President, Products & Services, Frank’s International

The introduction of new technology is informative and exciting, and it must prove value. While value can be measured in many ways, ultimately it is measured in currency.

With recent pressures on commodity pricing and the strong desire to ensure worker health and safety, the oil and gas industry is increasingly receptive to new digital and robotic technologies that can reduce personnel on the rig floor and automate repetitive processes.

Historically, oil and gas has lagged other industries in adopting new technologies. While other industries have advanced their capabilities to automate repetitive tasks, and increased efficiency, safety and reliability, certain aspects of the oil and gas industry such as tubular handling have been reluctant to follow suit. New technologies in the oil and gas industry have been adopted based on absolute need or regulatory requirement, instead of being part of an optimization or improvement strategy.

Often, the reluctance to adopt new technologies has to do with not understanding the value that the technology delivers to the end customer. Operators are typically focused on the job at hand and have little time to learn the benefits of a new technology. This puts the burden of proof on the service company to demonstrate its economic benefits.

The primary task in automating the drill floor is to improve pipe handling by optimizing safety, efficiency, reliability and well integrity. Technology currently exists in industries outside of oil and gas that can be modified and applied to mechanize and automate the drill floor, accomplishing the same tasks that humans perform.

While safety is an expectation, will automating a repetitive task, given the investment required, result in an increase in efficiency, reliability, and well integrity that shows positive financial gains? The short answer is yes. In order to prove this, a model must be developed that properly quantifies value added for any given technology. This model should include these four primary tenets:

SAFETY: No harm to people. As an industry, significant improvements have been made to keep people safe, and technologies that further reduce harm to people naturally add value. Proof of value lies in the reduction of TRIR and LTRIR, both of which have direct and indirect costs. Reducing incident rates shows the underlying value of a technology responsible for that reduction. Also, removal of personnel from certain operations on the rig floor reduces exposure to hazards, further contributing to a reduced incident rate, while also reducing the direct cost of those operations.

WELL INTEGRITY: Application of technology to prevent the unplanned release of hydrocarbons throughout the life of the well. The evaluation of handling and installation processes and the reduction in human error through decision-making improves confidence in well integrity and brings value into the well construction process. Introducing technologies that increase well integrity and connection integrity contributes to the reduction in costs associated with remediation efforts enacted when a well has been compromised.

EFFICIENCY: Arguably the most recognized tenet of automation is the ability to safely speed up the handling and installation process. However, this benefit has often been difficult to quantify as the industry has typically focused performing a task, or solving a specific problem, rather than improving or optimizing a process. A renewed focus on efficiency has emerged with lower commodity pricing and the goal to remain profitable in the existing cost environment.

RELIABILITY: The ability to produce consistent results adds value. A process that is optimized and automated. Process improvement for pipe handling operations across the drilling sector of the oil and gas industry is a key element to drive down the cost of wells, ensuring sustainability within the industry. The adoption of intelligent equipment such as Frank’s one button push, automated iTONG, combined with the iCAM system, a recently introduced advanced automated tubular connection analysis technology, can aid with these process improvements.

iTONG and iCAM speak directly to each of the core tenets of value creation. Automating the connection process using iTong removes personnel from the rig, decreasing risk exposure thus increasing safety.

Additionally, automated processes can improve efficiencies by allowing simultaneous operations that are not possible with equipment controlled by humans, with a potential 50% time reduction (depending on current levels of automation). Automating the graph evaluation process with the iCAM technology transfers the decision-making requirement from the technician to the computer. This can not only speed up the process of installation but decrease or eliminate mistakes in the evaluation process, improving efficiency and well integrity.

Finally, the variation in cycle time typically seen with human-controlled equipment is eliminated through the implementation of these automated sequences, vastly improving repeatability of the process. The iTONG and iCAM technologies are just two examples of the value that automated solutions can provide to the tubular handling process. The accelerated adoption of these technologies and other intelligent systems can contribute significantly to lowering costs to maintain profitability at lower commodity prices. ....................................................................................................

Jeremy Angelle currently serves as Vice President, Products and Services for Frank’s International. For over 19 years, Mr. Angelle has held various positions of increasing responsibility with Frank’s International. Mr. Angelle received his Bachelor of Science degree in Mechanical Engineering, Master of Science degree in Mechanical Engineering, and a Master’s in Business Administration degree, all from the University of Louisiana at Lafayette, and is a registered professional engineer with the state of Louisiana.

Robert Thibodeaux earned a bachelor’s degree in Mechanical Engineering and a master’s degree in Business Administration from the University of Louisiana at Lafayette. Mr. Thibodeaux joined Frank’s International in 2000 and has held positions of increasing responsibility in engineering design, operations support and most recently as Vice President of Technology Development.