ESG in 2021 Opportunities within a changing landscape
IN THIS ISSUE Market Outlook: PwC Legislative Outlook
Co-Chairs Rod Larson & Gay Wathen Emerging Technologies
Congressional Spotlight Safety Statistics & Awards WellServicingMagazine.com
Connecting What’s Needed with What’s Next™
CONTINUOUS INNOVATION Oceaneering’s next generation of work class vehicles increase your flexibility, reduce your risks, and lower your costs — all while decreasing your carbon footprint.
Connect with what’s next at oceaneering.com/next-gen Copyright © 2021 Oceaneering International, Inc. All rights reserved.
CONTENTS 4 ISSUE 1 • SUMMER 2021 An Energy Workforce & Technology Council Publication
Leslie Beyer, Energy Workforce & Technology Council
KEVIN BROOM Director of Communications & Research
TIM TARPLEY SVP Government Affairs & Counsel
Congressional Spotlight: Rep. Kevin Brady (R-TX)
ESG: Irritating Officemate or Trusted Business Partner? Andy Knapp, Energy Workforce & Technology Council
MARIA SUAREZ Director of Government Affairs DEIDRE KOHLRUS Director of Government Affairs
Building Sustainable Operations in the Energy Industry Marie Merle Caekebeke, Schlumberger
RONI ASHLEY Director of Operations SUSAN DUDLEY Administrative Assistant
Legislative Update: How is the Council Working for You? Tim Tarpley, Energy Workforce & Technology Council
ANDY KNAPP Senior Advisor ESG, Sustainability & Energy Transition PEGGY HELFERT Senior Director Programs & Events
Market Outlook Reid Morrison, PwC
STEPHANIE FUQUA Director of Marketing
Introducing the Council Council Co-Chairs Rod Larson, Oceaneering, and Gay Wathen, NOV Inc.
LESLIE BEYER CEO/Editor in Chief MOLLY DETERMAN COO/Editor
Study Shows Inclusion & Diversity Improvement in the Sector
Emerging Technologies and How They Can Impact the Industry Mark Reed, Mustang Cat
Automated Integration is Energy Transition Brendan Gilbert, Solaris Oilfield Infrastructure
MARINA OUANO Director of Finance
Powering a Sustainable Future Jock Pool, Oceaneering International
Enhanced Well Integrity Azfar Mahmood, Frank’s International
New Council Report Shows Industry’s Impressive Progress on Safety Kevin Broom, Energy Workforce & Technology Council
2500 Citywest Blvd., Suite 1110 Houston, TX 77042 713-932-0168 firstname.lastname@example.org wellservicingmagazine.com
Safety Award Winners
Well Servicing Magazine is published quarterly by Energy Workforce & Technology Council as a complimentary publication. Interested subscribers should email email@example.com to be placed on our mailing list. Postmaster: Send address changes to Energy Workforce & Technology Council, 2500 Citywest Blvd., Ste 1110, Houston, TX 77042. © 2021 Energy Workforce & Technology Council
Telling Your Company’s Story ESG IS A VALUABLE FRAMEWORK FOR YOUR COMPANY By Leslie Beyer, CEO, Energy Workforce & Technology Council
Members, We’re pleased to share the first issue of Well Servicing Magazine since the merger of PESA and AESC to form the Energy Workforce & Technology Council. This edition focuses on one of the most critical issues for energy services and technology companies: ESG. As you will see in the pages that follow, wherever your company is on setting ESG priorities, the Council and your fellow members are invaluable resources to support your efforts. ESG provides a framework to think about key industry issues, including energy transition, emerging technologies, sustainability, health and safety, environmental performance, and our changing workforce due to automation, digitalization, and machine learning. The array of ESG reporting criteria may seem intimidating, but at its most basic level, ESG is an opportunity for each company to tell its own story about stewardship of the environment, communities and people. As society and the industry recover from effects of the pandemic, demand for energy is rising and the market for oil and natural gas is improving. With the steady news of service companies deploying innovative technologies that increase efficiency while reducing emissions, we are at the threshold of a transformation of the energy industry. We’re excited to relaunch the magazine to usher in a new era for the Council by building on the legacy of excellence established through the years. Council Co-Chairs Rod Larson and Gay Wathen share their perspectives on what makes this new association an even stronger voice for your company, the sector and the industry. In this edition, and the ones to follow, readers will receive market intelligence, legislative and regulatory updates, and have the opportunity to learn from the perspectives of companies engaged in shared sector issues.
Leslie Beyer CEO Energy Workforce & Technology Council
BEHIND THE SCENES Council COO Molly Determan interviews Co-Chairs Rod Larson, President & CEO, Oceaneering International, and Gay Wathen, Vice President - Mobile Rigs, NOV Inc., in the Council’s office. (Photos by Raymond Sauceda)
Well Servicing Magazine/July 2021
Take control of funding and make per diem easier.
The CommercePayments™ Prepaid Expense Card empowers your office to streamline employee per diem and other travel expenses. As a reloadable, prepaid Visa® card, the Prepaid Expense Card eliminates the need to hand out cash and the hassle of reimbursements.
Gain full control of your money and make per diem more convenient for your employees in the field.
Our customer support team is here to help get your program off the ground, train your team, and provide ongoing support throughout the life of your program.
866.946.3017 commercebank.com/expensecard firstname.lastname@example.org © Commerce Bancshares, Inc. CommercePayments™ solutions are provided by Commerce Bank.
Load and unload funds as needed
Turn cash access on or off
Schedule loads and set daily spending limits
Issue or replace cards from your office
Control where the card can be used
Commerce Bank has provided exceptional customer services for our per diem processes. The Prepaid Expense Card program has streamlined a difficult and time-consuming task. - Leigh Ann Richmond Accounting/PerWellServicingMagazine.com Diem Clerk, Axis Energy Services 5
Introducing the Council MERGING PESA & AESC RESULTS IN A STRONGER SECTOR By Kevin Broom, Energy Workforce & Technology Council
he 2021 merger of the Petroleum Equipment & Services Association (PESA) and Association of Energy Services Companies (AESC) was a very welcome development across the sector, given both organization’s long history of leadership in energy services. As Board Co-Chairs Rod Larson, President & CEO, Oceaneering International, and Gay Wathen, Vice President of Mobile Rigs, NOV Inc., reflected, the decision was based on the desire to unify the energy technology services sector and present a stronger advocacy voice.
a shared reputation, whether it’s how we treat safety for our people, how we participate in our communities, how we treat the environment. It’s important for us to make sure we’re all successful in that regard.”
A MERGER OF EQUALS
The co-chairs see several advantages from the merger, including expanded geographical reach and complementary areas of expertise — PESA’s advocacy, workforce development and work on energy transition, ESG, and diversity and inclusion marry well with AESC’s focus on health, safety and strong relationships with regulatory agencies. “Safety doesn’t just happen,” Wathen said. “It’s the result of diligent effort from companies across the industry and our alliance with OSHA, where we invite them to our rigs so they can see operations and provide feedback before issues become a problem.” “PESA’s government affairs team had significant Washington influence and that carries over to the Council,” Larson said. “AESC brings great mobile representation of the core of ESG in local communities, and the “A unified sector has always been important,” Larchapters where local managers can son said. “As a representative of the jump in on things and get involved. industry, I think local, state and federal “We’re going to need The two organizations zippered up governments need to understand their together very well.” constituents are really engaged in a energy. We have As the world proceeds in its quest positive way — providing jobs, giving a growing middle for cleaner and lower carbon energy back and being critical parts of the solutions, it’s imperative for compalocal community.” class around the nies to take ESG seriously to position Telling that story helps position the world, and they’re their companies in the marketplace industry for long-term prosperity, even and document progress, they said. It’s in a time of transformation. going to want more also critical for attracting capital. “Our industry is so much about relaenergy and a better “A year ago, John Daniel (Dantionships,” Wathen said. “When we all iel Energy Partners) told us about a come together for the same purpose, standard of living. time when he was in London with an it makes us stronger. It gives us a We can’t tell them investment banker,” Wathen said. cohesive ability to fight for the things “He asked the banker to define the we believe in.” that they’re going to criteria to invest in a company, and a While many companies are fierce have to wait.” primary factor was, does the company competitors in the marketplace, Larson and Wathen agreed it’s necessary — Rod Larson have an ESG rating? If there was no ESG rating, then the company would for the sector to work cooperatively not be considered for an investment on issues of common concern to imopportunity.” prove and elevate the industry. “So many companies are doing “The general public doesn’t think of good things,” Larson said. “They need to tell the story to us as being one company or another,” Larson said. “It’s 6
Well Servicing Magazine/July 2021
talk about the changes around safety, around environmental care, around governance, about adding diversity to our boards. We’re doing all the right things. We’re just not used to telling the story in a way that helps people understand all this.”
A TRANSFORMATIONAL TIME
As the market recovers from the downturn, challenges remain. But Larson and Wathen see positive signs. “In the aftermarket service side, things are picking up because so much equipment was cannibalized,” Wathen said. “Now most of our customers have one hundred percent utilization for rigs they have crews for, so the big challenge is people right now. Limited capital for new equipment is putting a big emphasis on servicing.” “Demand for oil and gas and commodity prices are both going up,” Larson said. “It’s a single digit growth kind of thing, but if feels better than last year. A lot of our members have found a way to get into renewables and some of the other adjacencies. I think those things have potential, especially with this Administration, maybe there’s some double-digit growth in those areas.” Wathen acknowledged the difficulty companies may have investing in ESG projects or research and development but thinks it’s important because of the industry’s ubiquitous presence in economic activity across sectors. 8
Well Servicing Magazine/July 2021
“It’s hard because we’ve seen such a downturn,” Wathen said. “We don’t talk enough about the other products we bring besides filling the gas tank. It’s incredible the number of products made from what we produce — plastics, clothes, medication, and on and on. All of that goes away if it wasn’t for us and our industry. And you’re not going to be able to make those with sand or with solar panels. So, we have to do that education and tell people about the value we bring.” “We’re going to need energy,” Larson agreed. “We have a growing middle class around the world, and they’re going to want more energy and a better standard of living. We can’t just go to people who are getting close to having electricity for the first time in their lives and tell them they’re going to have to wait. If there’s a gap between current supply and what the world needs, production increases are going to happen. We don’t want it be in the hands of people who are less responsible.” With the energy industry in this period of transformation, Wathen and Larson see the Council offering significant value to members. “It’s not an easy change, and it’s on all of us because it’s the industry’s reputation on the line,” Larson said. “We bring together committees that are impractical to form inside a single company to give each other the tem-
Council co-chairs Rod Larson, President & CEO, Oceaneering International (left) and Gay Wathen, Vice President - Mobile Rigs, NOV Inc. (right) plate. We can talk about how we did something that’s meaningful, give the report we’re putting on our website, and share best practices to help everybody move faster.” “It’s about education,” Wathen said. “And we get that transparency that investors are looking for. When it comes to ESG and sustainability, even for smaller companies, this isn’t a time to sit on the sidelines but to be proactive.” For Larson, it’s also about making the industry a more attractive career destination for the kinds of talented young people needed for the ongoing evolution. “Another side of ESG is something we’ve been hearing from recruits who love what we’ve put on our website,” Larson said. “They didn’t know we were doing these things. When recruits are considering what they’re going to do, they’re looking for signs that this is a company where they want to be.” Wathen underscored that the Council will continue the AESC legacy of investing in future generations. “The scholarship program for the children of members is an important way of giving back,” Wathen said. “It started small and has grown steadily through the years both at the national and chapter levels. It’s something the legacy PESA companies will be able to join in supporting and help their kids too.” (See the scholarship recipients on page 19.)
Larson hopes to see the Council will continue to help the industry grow and prosper. “I want to see us bringing people together,” Larson said. “Leveraging the local chapters so that we’re getting twice as many people involved and the annual meeting is twice as big. I want people to see the value of both organizations coming together, and that they’re getting benefits deeper into their organizations and bringing young people in.” The co-chairs also see long-term importance in the Council’s training, leadership and workforce development programs. “We really saw the value the past couple years when big companies had to cut their budgets or small companies didn’t have a budget for a training program,” Larson said. “They began leveraging PESA’s training programs in DEI, ESG, and Executive Coaching at very low cost. It was a huge benefit they could provide to their teams during an incredibly difficult time for the industry.” Wathen reflected on the future and her hopes for the Council’s leadership and advocacy. “I would love in five years to say the Council helped to change public perception of the industry, both who we are and what we’re doing for the greater good.” l
Energy Sector Outlook ENERGY SERVICES HAVE OPTIONS IN A DECARBONIZED WORLD, BUT THEY HAVE TO CHOOSE THEIR PATH QUICKLY By Reid Morrison, PwC
s governments, consumers and businesses make emissions reduction a front-and-center priority, companies across almost all sectors will face fundamental changes.
to a recent PwC survey. While we certainly see great change on the horizon for the hydrocarbon industry, it’s well documented that the need for hydrocarbons nationally and globally will persist, though to varying degrees in different regions. According to the IEA’s projections of hydrocarbon demand and production, this will likely be the case, especially in regions where oil and gas demand is expected to increase over the next two decades — and even in those where diminished demand is expected. Just consider, for example, that India’s energy consumption alone is set to nearly double with oil demand lifting to 8.7 million barrels per day in 2040 from about 5 million in 2019, according to IEA forecasts.
Investors and society have increased the focus on ESG. This has accelerated the move to lower the global carbon footprint. Many players are responding by diversifying their core hydrocarbon business to lower-emissions businesses or are announcing plans to do so. This places pressure on the energy service sector to align its services to the changing needs of its traditional customers. In the least, this will mean finding more efficient ways to find and produce hydrocarbons. For many, it could mean a pivot to new sources and THREE PATHS TOWARD A NET ZERO WORLD forms of energy, such as entering the renewable and For many energy services companies, the realignment alternative energy space and other low-carbon plays, will mean developing new business models. Looking into including services and technologies for reduction of the future, we see three main paths: a pure-play oil and methane emissions, carbon-capture utilization and gas focus, gradually pivoting to low carbon, or making a storage (CCUS), biofuels, hydrogen fuels, geothermal complete transition to low carbon. Your choice will probenergy, off-shore wind power, energy storage — or even ably hinge on examining whether core capabilities could electric-vehicle (EV) charging. Some will be able to adapt and should be used in other low-carbon adjacencies — and may even thrive. beyond the oil and gas secFor most energy services tor. Articulating an investor companies, the momen“We expect more energy services proposition will also influence tous push toward net zero which path your energy serbusinesses will be looking for value emissions likely augers vices company should take. in new and unlikely places.” enormous transformation Let’s look at the choices. over the next decade. We’re Pure play oil and gas: already seeing the groundIt probably won’t be busiswell of that change. ness-as-usual, even for energy services companies that The IEA’s roadmap to net zero by 2050 attempts to plan to stick to traditional oil and gas services. They’ll reconcile the changes to the global energy system need- need to lower their own emissions footprint in order to ed to provide reliable, affordable energy and to meet help lower their customers’ Scope 1, 2 and 3 footprints emissions reduction ambitions. It calls for 90% of all — and perhaps even to retain a license to operate. power to come from renewables by 2050 and a ramp-up They’ll also need to invest more in efficiency-enabling to $5 trillion in decarbonization investments by 2030. It technologies to improve margins. While new opportualso underscores the extent of disruption the scenario nities in rig construction, drilling and field development could signal to energy businesses. may decline (especially in North America and Europe), This era of disruption, however, has been in the air for we expect that energy services companies will neversome time. Executives across industries grasp the imtheless experience increased demand for lower carbon portance posed by the growing net zero imperative, with footprint production services and equipment, such as 69% of CFOs agreeing that coordinating ESG data and more efficient pump and equipment technology. Services information across their company is a priority, according companies may see more demand for traditional prod10
Well Servicing Magazine/July 2021
ucts and services from IOCs, NOCs and independents in areas of the world forecasted to experience increased oil-and-gas demand and production through 2040. Gradual pivot to net zero: Some energy services businesses might be able to have their cake and eat it, too. They’ll be able to retain an oil and gas focus while making a gradual pivot into low-carbon industries such as renewable and alternative energy, carbon capture, geothermal and even offshore wind. Their clients are also likely to be “gradual pivoters.” These businesses will be positioned to add new services to low-carbon energy companies as opportunities emerge, and they’re likely to use revenue from their core oil and gas services to fund entry into new low-carbon businesses. Full low-carbon transformation: We expect other energy services companies to fully wind down their entire hydrocarbon businesses through divestitures and pivot to altogether new energy services, including helping oil and gas customers reduce GHG emissions. That kind of transition will involve substantial skills transfer, strategic acquisitions and partnerships (to gain scientific and engineering expertise) to enter these new energy spheres as both operators and equipment suppliers. In some cases, they’ll be able to leverage existing skills in manufacturing, engineering and subsurface/geomechanics to make the pivot (e.g., when pursuing geothermal or off-shore or near-shore wind). Entering other areas could require partnerships and acquisitions. These energy services companies, then, would face decisions to “build, buy or partner.” As they gain a footing in these markets, they could expand into other sectors, such as industrials, offering decarbonization services. These companies will likely heavily invest in technologies that introduce efficiencies in decarbonization projects. All energy services firms will need to decarbonize, no matter what the future brings. No matter which path an energy services firm takes, all companies in the industry will need to accelerate decarbonization of their own businesses (i.e., lowering Scope 1, 2 and 3 GHG emissions) to stay competitive. Doing so will mean disclosing emissions to customers (and probably to the public as well) and those disclosures will need to be verified by accredited, independent parties with the same rigor auditors employ with financial statements. Up to this point, GHG data has been “nice-to-have.” It will likely become an industry standard. Companies up and down the oil-and-gas supply chain likely will be expected to provide verified carbon disclosures to their customers; likewise, companies will be working with suppliers to ensure they are producing them as a new order of business. All this can be a time-consuming and exhaustive process, touching every item in a bill-of-materials. Indeed, the most rigorous and verifiable life-cycle assessment can take up to two years for an entire family of products and services. We expect those energy services companies that provide verified
environmental product declarations for their products and services will secure more business from customers who value that as a requirement in their buying decisions. Offering a low-carbon alternative will provide further differentiation that commands a price premium, which will then be the next source of opportunity. Emissions reporting will likely be carried out using the GHG protocol, and efforts are underway to create international emissions data standards and sources. If your energy business can be one of the first to provide verified GHG calculations for your products and services, it will attract customers who prioritize that in their supply chain due to their own net zero commitments.
RAPID CHANGE ON THE HORIZON
We expect most energy services businesses will be looking for value in often new and unlikely places over the next several years. This may well mean divestitures, technology-driven strategic acquisitions, in-house investments and a push to acquire the new talent they’ll need to distinguish themselves from their competitors. Taken together, the energy services sector seems at the beginning of new directions, which for some could signal entirely new forms of growth. l
...................................................................................................... Reid Morrison leads the Global Energy Advisory practice, and is a Principal in PwC’s Houston Office. He has 25+ years of experience in the resources industries across upstream, downstream, midstream, oilfield services, utilities, EPC, chemicals, mining, and bio-fuels both domestically and internationally.
Well Servicing Magazine/July 2021
How is the Council Working for You? ADVOCACY AT STATE AND FEDERAL LEVELS By Tim Tarpley, Energy Workforce & Technology Council
he energy technology and services sector accounts for more than 600,000 American jobs in 2021. As that number grows, so too does the significance of the critical policy issues facing this sector. The Council is a strong advocate for our members by addressing workforce changes, clean energy research and development, access to energy onshore and offshore, and a balanced approach to trade and tariffs. RESILIENT WORKFORCE
Job losses in the energy services and technology sector were steep during 2020 due to pandemic-related demand destruction. To gain further insight, the Council analyzed Bureau of Labor Statistics (BLS) to understand the short- and long-term impacts of workforce changes. Forced to slash positions, the sector’s job losses peaked at 102,000. Since then, the sector has restored approximately 19,000 positions, bringing total COVID-19 related employment cuts to almost 83,000 jobs and more than $9.9 billion in annualized lost wages as of July. The pandemic and energy transition have had longterm effects on the energy workforce, but our sector still has a big role to play in a lower carbon future. For this reason, the Council advocates for continued research and development towards an inclusive and resilient energy transition. Ensuring the energy sector is inclusive now and in the future is the basis of the Council’s groundbreaking diversity study, first conducted in 2018 and renewed in 2021. The study established a baseline for gender diversity in the sector and led to action for progress. These included a diversity toolkit, the I&D Business Champion Program and a goal of 20% women in the workforce by 2020. The updated study results are covered on page 24 and set a baseline for racial and ethnic minorities in the sector. The findings reinforce the need for continued focus on recruitment, retention and advancement opportunities across identities in the workforce. The Council will continue this first of its kind research, promote actions to advance the sector’s diversity and inclusion, and increase its ability to attract the talented workforce needed
to lead the energy transition. At the federal level, the Department of Energy’s Office of Economic Impact and Diversity houses the Energy Workforce Division, which supports opportunities and job creation for underrepresented communities in the energy industry. A resilient workforce is a key component of the Council’s long-standing focus on enabling what’s next in an energy future that will be driven by innovation. Since the dawn of the U.S. industry, energy services and technology workers have made modern life possible. The workforce has also endured and thrived through difficult transitions as governments and society have changed. The current energy transition would not be possible without the oil and gas industry, and the men and women who comprise its workforce. The Council continuously advocates at the state and federal level to address policies that impact the energy workforce, are detrimental to local communities, or could undermine local government revenues and U.S. energy security. In addition to its advocacy, the Council supports the energy workforce through continuous leadership and development trainings. These programs ensure that workers are well rounded from a business perspective and are prepared for the ever-changing energy landscape.
CLEAN ENERGY AND R&D
The Council is committed to ensuring the U.S. and the world can achieve a lower carbon future effectively and efficiently. This is done through support of research and development initiatives, industry investments and public-private partnerships. With the shared goal of providing reliable and efficient energy sources, and the sector’s commitment to research and development of new technologies, the energy workforce will continue to be at the forefront of the energy transition. The oil and gas industry is a proven leader of investing in new technologies to produce cleaner burning fuels, while maintaining the reliability to keep pace with growing demand. The road to a clean energy future will be built by oil and gas producers who have taken the reins of innovation and led the way to the largest reduction of carbon emissions of any sector. These companies have the ability and resources to scale new projects and take the big risks needed to make the energy transition a reality. Among these adWellServicingMagazine.com
GOVERNMENT AFFAIRS vances are new drilling equipment designs that achieve some of the highest levels of oil and gas production ever while using far fewer rigs. This lowers the cost and environmental impact of oil production. Electrification of rigs is another innovation with environmental and resiliency benefits. The electrified rig operates more reliably and with fewer carbon emissions while eliminating the need for hydraulic fluids onsite, which prevents potential spills. Automation and digitalization of rigs has improved operational efficiency, and reduced the risk of human error by implementing technologies such as artificial intelligence and machine learning. The use of technologies such as CCUS has made huge environmental impact without sacrificing the resilience and reliability needed to support large scale energy demands. Carbon capture allows energy companies to eliminate large scale emissions by storing CO2 or using it for other initiatives. As the energy sector continues investing in CCUS technologies, the benefits can be seen across industries, leading to expanded use in manufacturing, and setting up the entire energy supply chain for a lower carbon future. Natural gas is a cleaner and easier fuel to produce, and its development and increased use has led to the largest reduction in U.S. greenhouse gas emissions in the past decade. Liquified Natural Gas (LNG) is more easily moved and stored, and with an abundance of the resource found in the U.S., exports of the fuel have accelerated in recent years, providing a lower carbon, reliable energy source around the world. Cleaner energy sources like solar, wind, hydrogen and geothermal technologies are expanding. As these technologies advance, their range of use will continue to grow. Solar applications provide a supplement to large scale energy suppliers, while also serving as a cheaper option when available. Wind energy continues to grow and allow utilities to diversify sources of reliable power generation. Although these forms currently serve as supplements to traditional forms of power generation, technology and investments continue to rise, and these energy sources will continue to grow. As the race for new technologies continues, oil and gas producers and their service partners will be the key to a reliable and resilient energy transition.
zation and its members believe these resources belong to the American people. From 2021-2024 the revenue stream derived from these sales is expected to generate $8.8 billion in revenue for producing states. The Council supports the court ruling declaring the Biden Administration’s “pause” on new leases was not permitted by federal law, and the Council opposes any effort to prohibit well stimulation on federal lands. Such prohibitions would slash oil and gas production on these lands while dramatically decreasing the revenue and employment. In addition to revenue, the Council believes U.S. natural gas is one of America’s best weapons to lower carbon emissions domestically and around the world. According to the U.S. Energy Information Administration (EIA), 12% of U.S. natural gas is produced from federal lands and waters. America’s shift from coal to natural gas drove the reduction of more than 2.8 billion metric tons of CO2 emissions since 2005, the largest source of U.S. energy related carbon savings. Natural gas has been acknowledged by the EIA and the International Energy Agency as the number one reason the U.S. has reduced more greenhouse gas emissions than any other country over the past 10 years. Additionally, U.S. exports of LNG are a geopolitical tool to lower carbon emissions around the world. U.S. natural gas can replace dirtier sources of power. Allies such as India and Japan still rely on coal for electricity generation and U.S. natural gas produced on federal lands can help lower that percentage and reduce carbon emissions around the world. Slowing or pausing oil and gas development on federal lands will not cut carbon emissions in the U.S. or around the world but will increase the use of foreign sources of oil and gas and displace American workers.
“ As the race for new technologies continues, oil and gas producers and their service partners will be key to a reliable and resilient energy transition.”
ACCESS TO ENERGY RESOURCES
The Council supports periodic lease sales both offshore and onshore, as is required by the Outer Continental Shelf Act and the Mineral Leasing Act. The organi14
Well Servicing Magazine/July 2021
ACCESS TO FREE MARKETS
The Council supports a balanced approach to tariffs and trade that addresses illicit practices and considers economic implications for U.S. businesses. Such an approach is achievable with stakeholder input and deliberative policymaking. The Council works to curb unfair trade practices and equalize the $32 billion per month trade gap between China and the U.S. Forced technology transfers and commercial espionage are common in China, and some Council members have been hurt by these practices. Tariffs will not curb China’s unfair trade practices, and instead could unintentionally harm the energy manufacturing and service sectors, areas where the U.S. cur-
rently enjoys worldwide dominance. Individual sanctions against bad actors in China may be a preferable longterm strategy. A worldwide free market where all entities play by the rules will benefit Member Companies in their efforts to provide the world’s economy with the energy it needs to grow and prosper. The Council believes the U.S. government should support our companies in exporting natural gas, as well as in developing the technology needed to support the energy transition. U.S. exports of cleaner burning natural gas to allies and developing nations can provide reliable energy and lower emissions. By displacing coal (which is still the primary source of power generation in many parts of the world), U.S. natural gas can help nations make their energy transition while lowering worldwide carbon emissions. The Council also believes the federal government should support the energy technology and services sector so it can provide breakthrough technologies that
would allow the world to successfully transition to a lower carbon future. Our sector has the expertise and ability to scale these technologies worldwide. The industry is primed to continue leading the world for years to come, and the federal government should do all that it can to support this endeavor. The Council will continue to advocate for these important resources to used for the benefit of the American people. l ...................................................................................................... Tim Tarpley is SVP Government Affairs and Counsel for the Energy Workforce & Technology Council. Tim oversees the Policy, Government Affairs, International Outposts, International Trade Policy, Environmental Policy, Legal and Well Services Committees.
Bakken - Permian - Eagle Ford Haynesville - Appalachia - California Powder River - San Juan
Telephone: (713) 651-4300 Website: www.keyenergy.com
Rep. Kevin Brady
THE RETIRING TEXAS REPUBLICAN REFLECTS ON HIS LEGACY
ep. Kevin Brady represents the 8th district of Texas and serves as the top Republican on the Ways & Means Committee. As you leave Congress, what pieces of legislation are you most proud of? As Chairman of the Ways and Means Committee, I worked across the aisle to pass major legislation that helped America. One of my first victories as Chairman was negotiating an end to the 40-year ban on selling U.S. crude oil overseas, which remains one of my proudest accomplishments for my district, for Texas and for the country. America’s ability to produce and export natural resources has provided countless jobs, kept energy prices low for families and businesses, and enhanced our national security. Additionally, we recently celebrated the first anniversary of the United States-Mexico-Canada Agreement (USMCA). This trade agreement is a victory for America’s workers, farmers, manufacturers and small businesses, and has leveled the playing field. Ratifying this agreement with our biggest trade partners gave farmers, ranchers, and small businesses a leg up and was achieved in a bipartisan way. USMCA had the support of every member of the Texas delegation, a remarkable example of putting politics aside to do what’s best for the people of Texas. Perhaps my biggest legislative accomplishment was leading the passage of the Tax Cuts and Jobs Act, the first comprehensive overhaul of America’s tax system in more than 30 years. Rewriting the tax code made the U.S. more competitive, stopped offshoring jobs, decreased unemployment to a 50-year low, increased investment in our economy and resulted in the fastest wage growth in a decade. Will a tax package pass during the 117th Congress? Democrats have a lot of hesitation about President Biden’s tax proposal, because of its effects on over a million small businesses, when even the left-of-center Tax Policy Center has found that the individual tax increases hit the middle class. These would be the highest tax increases in the history of the U.S., so they are right to be concerned. Middle class and small business tax increases that kill jobs are deeply unpopular among a bipartisan majority of Americans — especially ones that would require a slim partisan majority to pass. Washington seems polarized on major issues. Are there areas where Congress can come together?
Well Servicing Magazine/July 2021
I work with some of the most dedicated people in the nation, on both sides of the aisle, who are hardworking, talented and serious about representing their constituents. After 25 years in the capital, I have yet to see a problem we can’t solve when we put our best ideas and intentions together. I’m proud to have worked with President Trump and lawmakers to reform America’s retirement system, ban surprise medical bills, eliminate the ObamaCare individual mandate and make the Research & Development tax credit permanent. Through bipartisan negotiations, I have seen America recapture the title as the world’s most competitive economy, bringing manufacturing jobs and investment back home. When I retire at the end of this term, I’m leaving Congress the way I entered it – with the absolute belief that we are a remarkable nation, the greatest in history. What’s driving the “More Energy More Jobs Act” you and Rep. Henry Cuellar introduced? My district relies on energy, manufacturing and trade. When it comes to protecting U.S. national security, our economy and the livelihoods of thousands of American families, there is always a way to find common ground. I’m grateful for Rep. Cuellar’s support on the “More Energy More Jobs Act,” because he understands the value
the energy industry has in saving American jobs and boosting the economy in a responsible manner. Our bill empowers governors to nominate land for offshore oil and gas development and requires at least two area-wide lease sales annually in the Western and Central Gulf of Mexico. Drilling in the Gulf supports 345,000 jobs and provides critical funding for conservation efforts and hurricane preparedness. Our country’s offshore oil and natural gas industry is essential for job creation, the economy and national security. This bill unlocks our offshore energy resources while maintaining current environmental and safety laws by directing the Department of the Interior (DOI) to conduct the economic and environmental studies. These are important first steps for inclusion in the lease plan. As we continue to recover from this pandemic, our nation needs good-paying jobs and affordable energy prices. Few nations develop energy with the strict environmental standards as America, and energy independence is something we should celebrate. Tell us a bit about the effort to get the crude oil export ban lifted in 2015. As Chair of Ways and Means, I led negotiations to lift
the crude oil export ban. This and other game-changing legislation set the stage for the U.S. to become a net exporter of crude oil and petroleum products in 2019 for the first time in more than 70 years – a major energy milestone. The U.S. continues to be a net oil exporter, demonstrating the success of our bill to allow oil exports. American innovation and strong conservative leadership enabled us to compete on a global scale. American energy dominance has kept prices low for everyday Texans, providing countless economic benefits to the Houston region and strengthening our nation’s security on the world stage. This boom is thanks to American energy innovation, like the revolutionary commercialization of hydraulic fracking. I will continue to promote policies supporting American energy dominance throughout the remainder of my time in Congress. Unfortunately, some Democrats introduced legislation to ban oil and gas exports. Exporting safe and clean American resources – tax and tariff-free – has grown our economy and protected jobs at home while lowering global emissions. In the midst of record inflation, which devastates small businesses, families, local investors and jobs, disrupting our clean resources unnecessarily would do more harm than good. l
WE ARE HERE FOR YOU Since 1917, BITCO has provided customized insurance programs and services to support the backbone of the American economy. For over 70 years, we’ve helped our customers navigate the ups and downs of the energy sector. Looking for a partner who values long-term relationships, understands your business and affords you the benefits of being insured by a carrier that provides the financial strength and stability of being in a part of one of America’s 50 largest shareholder-owned insurance businesses? Look no further. We are committed to you and are here for the long run. Visit BITCO.com to learn more and find a specialist agent near you. 1-800-475-4477
Full service branch offices: Atlanta Charlotte Dallas Denver Des Moines
Indianapolis Little Rock New Orleans Oklahoma City
Pittsburgh Portland St. Louis San Antonio
Claims service offices:
All programs may not be available in all states. Insurance contracts are underwritten and issued by one or more of the following: BITCO General Insurance Corporation and BITCO National Insurance Company (domiciled in Illinois), rated A+ (Superior) by A.M. Best, A2 Stable by Moody’s, and A+ Strong by Standard and Poor’s.
FOR YOUR WELL SERVICING AND TRUCKING NEEDS 6210 LOVINGTON HWY. • HOBBS, NM
7103 HWY. 1788 • MIDLAND, TX
EDWARD LAUER CHAD TAYLOR President of Operations DANIEL GONZALES
Well Servicing Magazine/July 2021
COUNCIL SCHOLARSHIP PROGRAM
Scholarship Recipients THE COUNCIL HAS AWARDED MORE THAN $4 MILLION IN SCHOLARSHIPS TO MEMBER DEPENDENTS The Energy Workforce & Technology Council National Scholarship program has awarded $51,000 in scholarship funding for the 2021-22 school year to 51 students attending more than 30 different colleges and universities around the country. Since its inception, the program has awarded more than $4 million to help dependents attend institutions of higher learning, earn undergraduate and advanced degrees, and launch successful professional careers. The scholarship program was begun in the 1970s by the AESC to assist children of member company personnel in completing higher education. The program offers students four years of assistance for college, graduate school or accredited vocational training. Regional chapters, as well as the national organization, hold fundraising events to provide the scholarships.
2021 SCHOLARSHIP RECIPIENTS AXIS ENERGY SERVICES • Samuel J. Mota BASIC ENERGY SERVICES • Jared Calderon • Morgan Johnson • Isabelle Moreau BRUCKNER TRUCK SALES • Jameson Dowell • Berkley Bruckner CAVINS OIL WELL TOOLS • Eric Harper CERTEX USA INC./STOEHR • Hannah Kammer DYNAENERGETICS US • Annabelle Gasaway ENERGY DRILLING COMPANY • Ethan Clark FROST BANK • Katelynn Wichell HUNTING TITAN • Tammy Hernandez • Emily Yates HURRICANE SERVICES • Colbi Riley KENNEDY WIRE ROPE & SLING • Madysen Zdansky KEY ENERGY SERVICES • Miranda Allbee • Andrew Rodriguez
• Lauran Allbee • Bianca Rodriguez • Shilo Yellow Boy • Ashley Eyruad KING WELL SERVICE, INC. • Gysselle Velador KVS TRANSPORTATION (BASIC) • Valeria Reyes MONCLA ENERGY SERVICES/WORKOVER & DRILLING • Lydia O’Kelly-Farrell • Laila Broussard • Jaxon Moncla NOV INC. • Ryan Walsh • Kristina Rizo • Ashley Person • Rachel Toler • Malina Rusu • Ridha Sameer • Elizabeth Moore • Bailey Bonner • Zachary Endres • Valerie Endres • Tucker Primeaux • Andrew Eiband • Kimberly Brown • Jerry Li • Samuel Krallman OWEN OIL TOOLS/CORELAB • Erika Green PIONEER ENERGY SERVICES • Alli Borgman • Breanna Perez PREMIER TRUCK GROUP • Briana Moore PROPELL • Elizabeth “Annie” Valicek RED WING SHOES • Madison Neuvar SELECT ENERGY SERVICES • Blake Williams SILVERSTREAM ENERGY SOLUTIONS • Ty Reed • Dawson Reed VIVA ENERGY • Zaira Corrales WellServicingMagazine.com
THE ESG ISSUE
ESG: Irritating Officemate or Trusted Business Partner? By Andy Knapp, Energy Workforce & Technology Council
SG is not right around the corner, and we are not preparing for its arrival.
ESG is here to stay, and many questions remain. Do I — and my company — really understand our roles in ESG? Are we integrating ESG into our operations or is it fodder for the next annual or sustainability report? What do we really consider material data for our company? What are the metrics and goals we are using? Are we committed to ESG as part of our leadership message and is the rest of the organization embracing it? The frustration with ESG is real, well founded, and you are not alone. ESG can sound like the colleague who sets a meeting agenda with 25 items to be covered in 30 minutes. Or the one who sends texts during a meeting and only looks up at the end to say they disagree with the decisions made and that another meeting is needed. Or worse yet, the person who always has “one more thing” as everyone at the table thought you had accomplished what you set out to do. You know these people. Council membership now exceeds 600 organizations, each with its own ESG knowledge level and plan. Some have recently begun their ESG “journey” while others 20
Well Servicing Magazine/July 2021
have integrated ESG into their operations and are executing on ESG stretch goals. There is no silver bullet for ESG success, and the Council has broken down its ESG activities into five strategic categories, where member companies can find and access the resources they need. First, the Council is an ESG policy resource and advocate on behalf of its members and an education resource for our sector. Every day, we all receive an avalanche of ESG information from government, non-governmental organizations (NGOs), investor entities, ratings organizations, thought leaders and everyone in between. The Council takes these mountains of information and crafts them into actionable recommendations on whether the Council should engage on behalf of members. At the most basic level, we are committed to educating because we cannot assume policy makers, the media and other third parties have any idea how things work or do not work in the business world. A great example is the recent U.S. Security and Exchange Commission request for information on climate disclosure, where we submitted a comment letter that educates policymakers on potential impacts of expanded climate disclosure to our members. We recognize and value that we work in a
heavily regulated industry, but we also need predictability, material applicability, credit for the work that is being done and lead time for implementation. Internally, we are building an ESG Center of Excellence that includes a library of key topics that can serve as a convenient resource for our members. Sometimes, all we need is an example of what others have done or have access to a reference document that addresses a need. Second is the Council’s shining jewel, its training and education programs. The Council offers a best-in-class ESG Certification Program that elevates individual ESG knowledge with a broad curriculum and cadre of experts that allow for participants to pursue specific answers to the questions facing their individual companies. Beyond set programs, the Council is constantly working with members to identify topics and speakers, commission research and coordinate issue-specific forums to ensure our members have a venue to learn and share. Next, the Council is committed to sharing best practices, so each company does not need to reinvent the wheel. We know it can feel like you’re out there on your own, but you are not! Whether through a curriculum-based engagement like the ESG Certification Program, a specific information sharing event, or oneon-one assistance from Council staff, the Council is a key resource and partner in your ESG efforts. If we don’t
know the answer, we probably know someone who does, and we are happy to make that introduction. Fourth is capital. ESG and capital are completely intertwined. Having an ESG story that addresses the expectations of investors will keep the capital flowing. As reporting and materiality criteria continue to evolve, it is critical to keep your audience in mind. A company can have what it perceives as a strong ESG program with all the right buzzwords and tactics but can fail if the effort isn’t clearly responsive to the criteria required by investors, lenders, raters and others. Finally, the Council wants to highlight and amplify your successes. Your progress leads to ESG improvement across the sector. The Council wants to work your good news into our talking points and advocacy efforts. We’ve identified strategic areas to prioritize efforts and allocate staff resources, but the Council is constantly adapting and evolving as part of the broader ESG ecosystem. Regardless of where you are on the journey, the Council wants to help you work with the toe-tapping, gum-chewing, outspoken colleague named ESG. l ..................................................................................
Andy Knapp is the Senior Advisor - ESG, Energy Transition and Technology for the Energy Workforce & Technology Council.
Workover Rigs * Reverse Units BOP’s * Rental Tools * Drill Out Packages Plug & Abandonment
Bob Murray President
Darrin Phillips VP Operations
THE ESG ISSUE
Building Sustainable Operations in the Energy Industry By Marie Merle Caekebeke, Schlumberger
ach company contributing to the exploration and production value chain plays a role in achieving sustainable operations. This means adopting a triple bottom line approach to evaluate the social, environmental, and financial impact of key decisions in the aim of creating greater business value while, at the same time, positively contributing to communities and the planet. With addressing climate change at the forefront of many discussions across our stakeholders, let us take a deep dive into what supporting Sustainable Development Goal 13 Climate Action looks like — from setting ambitious, measurable goals; to holding yourself accountable by embedding sustainability objectives and ambitions throughout a company’s operations; to empowering local teams to what is locally relevant; all while increasing transparency in reporting ESG performance.
ADDRESSING CLIMATE CHANGE: In Our Operations
Contributing to SDG 13 means learning to better manage our respective environmental footprint, including emissions, throughout the life cycle of planning decisions, such as properly managing purchased goods and services, logistics, facilities, operations and, ultimately, technology and services sold to customers. Taking this comprehensive approach supports a transformational change aimed at reducing our industry’s footprint. This requires being resilient and adaptable, mitigating emissions and climate-related risks, identifying and capturing climate opportunities, and embedding a focus on emissions within your corporate strategy. Measurable, realistic goals pointing to long-term results while incorporating interim targets along the way holds companies accountable so they can truly make progress in this space. Publicly stating these goals and sharing defined metrics and the progress made demonstrates a company’s strong commitment to act. Schlumberger takes a whole value chain approach to reviewing our direct and indirect emissions, setting both long-term and interim targets as part of our approach. To start, we set a near-term target of reducing 30% of our Scope 1 and 2 emissions by 2025 (2019 baseline). To build a medium-term target with tangible deliverables, in 2019 Schlumberger became the first company 22
Well Servicing Magazine/July 2021
in upstream E&P services to commit to setting a science-based target in emissions reduction. As part of this commitment, we broadened the breadth of our greenhouse gas inventory, with particular focus on Scope 3. This included technology use-phase emissions, in line with criteria defined by the Science Based Targets initiative and the Greenhouse Gas Protocol. Including Scope 3 emissions in our assessment enables Schlumberger to better quantify the impact of our technology during the use-phase and highlight any impact reducing opportunities to help our customers reduce their footprint in addition to ours. In support of these efforts, our Scope 1 and 2 emissions reduction target was incorporated into the 2020 annual cash incentive opportunity for our CEO and other members of senior management. To assess possible financial risks associated with climate change, key frameworks like the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) are a great place to start. These frameworks can help companies identify and mitigate climate-related risks while capitalizing on climate-related opportunities to benefit both the planet and communities around the world. This might include assessing a company’s operations for both acute and chronic physical climate risks, as well as those associated with the energy transition; and identifying opportunities such as applying technologies with a reduced environmental impact or expanding beyond oil and gas.
ADDRESSING CLIMATE CHANGE: In Customer Operations
Service companies tend to have a much smaller fuel and power consumption footprint than operators with large midstream and downstream operations—resulting in our sector having a strong opportunity to influence environmental performance well beyond our own footprint. The products and services we provide can help our customers meet their environmental priorities. To lessen the use-phase emissions of our technology and support our customers in addressing their environmental priorities, Schlumberger currently offers a broad technology portfolio of more than 100 solutions with attributes that tie to the six environmental SDGs. Our technologies include environmental impact reducing options aimed at: consuming fewer resources including energy, water, raw materials, and physical footprint; gen-
erating fewer harmful byproducts, including emissions and waste; leveraging digital; and enabling renewable energy use. With our industry changing, it is important to recognize that meeting expected global energy demand will require a combination of sources — from hydrocarbons to renewables. Contributing to the energy transition by changing existing practices and by reviewing opportunities and expanding beyond oil and gas is a strong way to reduce environmental impact while supporting local communities and business goals. In 2020, we launched Schlumberger New Energy to explore new businesses in low-carbon or carbon-neutral energy technologies, applying our domain expertise in areas adjacent to our existing activities and using our global footprint and execution platform to deliver at scale. Included in these businesses are hydrogen, lithium, carbon capture and storage, geothermal, and geoenergy.
opment Goals (SDGs), is helpful. Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas published in 2017 by IPIECA, the United Nations Development Programme (UNDP), and the International Finance Corporation (IFC), and Accelerating action–An SDG Roadmap for the oil and gas sector, published in 2021 by IPIECA and the World Business Council for Sustainable Development (WBCSD) are strong resources companies can leverage to implement best practices and guidance across our industry, enabling them to prioritize key sustainability topics in line with country and business priorities. Achieving the SDGs and ambitions of the Paris Agreement hinges on collaboration and sharing of best practices. We must commit to working together to evolve our industry to a more responsible tomorrow. l ...................................................................................................................................
Marie Merle-Caekebeke is the Director of ESG Performance & Engagement for Schlumberger. Based in Houston, she works closely with industry entities to develop and implement environmental and social sustainability standards while creating long-term stakeholder value.
ALIGNING ON ESG PRIORITIES
To strengthen the impact of our collective actions and to measure the environmental, social, and governance (ESG) progress achieved, alignment using key frameworks like the United Nations Sustainable Devel-
NG/LPG ENGINE POWER UNITS Kubota NG/LPG Engines from 24-93HP. • Dual Fuel NG/LPG
• Electronic governor
• Smaller and Lighter
• Similar performance to a turbodiesel
• Zero Maintenance Valve Timing Control • EPA/CARB certified • Warrantied for Wellhead Gas Operations • CAN bus communications • Engines in Stock at Our Houston, Texas Facility
• Optional clutch
A SIMPLER SOLUTION. IT’S ABOUT TIME. V I S IT LO FTINEQUIP.COM OR EMAIL ENGIN ES @ LO F T I N EQ U I P. CO M
THE ESG ISSUE
Study Shows Inclusion & Diversity Progress for Sector
By Molly Determan, Energy Workforce & Technology Council
ew research by the Council and Accenture found that the percentage of women in the U.S. energy technology and services sector rose to nearly 20% and set a baseline for race/ethnicity at 25%. The progress for women came during the pandemic, which caused widespread workforce disruptions in the national workforce. The study found that the percentage of women in the sector rose to 19%, up from 16% in 2018, almost reaching the Council’s 20% goal. However, this figure trails women’s 47% representation in the overall U.S. workforce. “Improving gender diversity against the backdrop of a global pandemic is encouraging,” said Council Board Member Gabriel Rio, President and CEO, Milestone Environmental Services. “The study also shows we have more work to do in creating an inclusive workforce in the sector.” Building on the gender diversity study published in 2018, the 2021 study draws on insights from approximately 250,000 workers, including more than 63,000 in the United States. This year’s report, which reflects 2020 jobs figures, uses a revised methodology to include race and ethnicity along with gender. Ethnic minority groups, which were not part of the 2018 study, comprised 25% of the sector, compared with 36% for all areas of the U.S. workforce, according to the Bureau of Labor Statistics. The report highlighted areas where companies can increase participation in equality and leadership advancement for women and minorities, including: • 40% of companies have C-level endorsed inclusion and diversity strategies • 56% offer paid primary caregiver parental leave • 66% offer learning and development initiatives targeted at inclusion and diversity • 32% offer basic flexible work programs, such as telecommuting (pre-pandemic) • 40% offer formal mentorship programs “It’s moved from something investors asked about on the side to a central question when they’re deciding to allocate capital,” Rio said. “The diversity issue is something the industry can control and set goals around trying to improve.” It’s important for the industry to hold itself accountable
Well Servicing Magazine/July 2021
to measurable results as it is doing with the study, workshops and training programs, said Maria Lorente, Human Resources Director, Schlumberger. “Engagement from leadership is important, and companies need to build strategies that cover the entire talent lifecycle — recruiting, retention and advancement.” Accenture’s Ben Carey, a managing director who leads the energy equipment and services practice, said executives would be wise to invest their time in specific inclusion and diversity actions that can help make lasting change. “Retention and advancement programs can grow with increased endorsement from C-suite leaders, whose visibility is key to boosting workforce diversity,” Carey said. “For example, leaders should collaborate more closely with employee resource groups where more women and minority leaders can show how they navigated their careers so that others may better follow their example. This will be vital for all functions, but especially the digital and service functions that will help drive the industry’s recovery.” The report makes three additional recommendations to enhance the resilience of the future energy workforce: • Attract diverse, innovative talent, strengthen employee value propositions and identify new sources of talent to shape the future of the industry. • Focus on retention — keeping women and ethnic minorities in the workplace. • Amplify advancement opportunities — mentorship and leadership role-modeling.
VALUE OF INCLUSION AND DIVERSITY
Research continues to show companies benefit from establishing an inclusive leadership team and workforce. Businesses with inclusive cultures and policies report significant increases in creativity, innovation, openness, and profitability. “When we work with people who are different, we’re exposed to new ideas and new ways of thinking,” said Lamonica Spivey, Inclusion, Diversity and Social Responsibility Director, TechnipFMC, who chairs the Council’s I&D Engagement Committee. “It gives each of us the opportunity to question why we’re doing things the way we do and break us out of the ‘this is always how we’ve done it’ mode.” Inclusion and diversity is becoming a business imperative as ESG investors increasingly look to companies for
2021 DIVERSITY STUDY RESULTS OVERALL WORKFORCE
WOMEN IN SECTOR BY JOB DISCIPLINE
TOTAL BUSINESS SUPPORT FUNCTIONS
actionable and measurable plans. For many investors, issues of diversity and equity are intertwined with environmental and governance metrics. Inclusion and diversity can weigh heavily on overall ESG performance because investors understand that companies with more diverse leadership teams report higher income from innovation. According to management consulting firm McKinsey & Company, companies with gender diversity on their executive team were 25% more likely to have above-average profitability and value creation. Companies with ethnic diversity in the C-suite were 36% more likely to have above-average profits. The greater the representation, the higher the likelihood of outperformance. “A culture of diversity is highly valued by our workforce, particularly younger people,” Lorente said. “This makes it mission critical for companies trying to attract the next generation of talent.” According to Weber Shandwick, half of millennials want to work in a diverse and inclusive workplace. “The energy industry is in an era where innovation and technological development will be essential to meet growing energy demand and reduce greenhouse gases,” Spivey said. “We need the brightest, sharpest, best-educated minds we can find as we reinvent ourselves for a low-carbon future.”
THE COUNCIL’S COMMITMENT
The Council is working to provide Members with the resources needed to establish cultures of inclusion and diversity.
TOTAL TECHNICAL/ OPERATING FUNCTIONS
“The 2018 gender diversity study demonstrated the value of giving visibility to inclusion and diversity metrics,” said Council COO Molly Determan. “This year’s study allows us to track those metrics and evaluate what works and how we can drive progress.” Council initiatives encompass: Research — The 2018 and 2021 studies, as well as ongoing work to quantify employment in the sector and address its evolution. Training — Study findings are being used to update the Council’s inclusion and diversity toolkit and the curriculum of the I&D Business Champion Program. Resources — The Council provides best practices for companies to increase diversity — including how to best use employee resources groups and providing sponsorship program models — as well as brokering partnerships to increase recruitment and talent pipeline diversity. Networking — The Council offers opportunities for Members to share experiences and strategies to learn from peers and strengthen the sector. The 2021 research also identifies future focus areas. These include developing a pipeline of diverse talent for leadership roles, offering competitive compensation, reviewing company practices and implement I&D policies, and including ethnic diversity. The Council is committed to being our Members’ partner in their inclusion and diversity journey. l WellServicingMagazine.com
THE ESG ISSUE
Emerging Technologies HOW THEY IMPACT THE INDUSTRY By Mark Reed, Mustang Cat
n a drive to increase operational and financial performance, today’s energy industry is striving to lower costs and emissions, and increase operational and financial performance while also developing and implementing ESG reporting. Companies must create low cost, low carbon, low emission strategies with emerging technologies to achieve sustainable goals and be competitive in a global marketplace. The ability to improve existing technologies — and create new ones — provides a path forward for those willing to participate. Developing and implementing a strong ESG strategy is critical for companies to access investor funding and provide a positive integrated influence in the industry. The Council’s ESG Center of Excellence is an excellent resource for developing knowledge and understanding of ESG. The ESG certification program is also a great tool to learn and understand strategy, as well as develop and implement ESG strategies for your company and customers. The ESG certification is a year-long process that delves into all aspects of ESG. I am in the current certification class and truly appreciate the world class training I am receiving. I highly recommend it to all who need to develop their ESG skills. Companies engaged in emerging technologies re-
Well Servicing Magazine/July 2021
search and development have increasingly focused on ESG goals to access capital in the marketplace. That focus has led to positive results in operational efficiency and cost reduction. The use of natural gas in production has been growing. New technology advances in dual fuel (diesel/natural gas) and 100% natural gas reciprocating engines have made tremendous strides in lowering emissions, operations and maintenance cost. The ability to burn field gas (within fuel specifications) in the dual fuel or 100% reciprocating gas engine slashes fuel costs. The dual fuel engine platform also provides the customer with the ability to avoid downtime by running on diesel fuel if a natural gas source isn’t available. Hydrogen is another fuel source that has been garnering much attention. The ability of reciprocating engines, dual-fuel and 100% natural gas to burn hydrogen was recently demonstrated in Houston, and the results were well received by all in attendance. The following issues are some of the reasons the industry is applying dual fuel Tier 2 and Tier 4 technologies (which also apply to 100% natural gas): • Saving on operating costs by using inexpensive natural gas to replace diesel fuel consumption • Abundance of field gas in various shale plays • Reduction of greenhouse gas footprint • Infrastructure expansion for gas delivery • Drop in fuel/diesel transportation expenses
• Better compliance with regulated emissions Technology advancements in fuel, air, exhaust and control systems have resulted in lower emissions as a result of complying with current Environmental Protection Agency Tier 4 emission limits. Manufacturers have spent billions of dollars in research and development to achieve these emission limits. The cost of these technologies increased pricing to the marketplace while day rates for equipment have been cyclical. This has led to operators struggling to recover costs. New technologies and ESG compliance come with a price, and the industry will need to find the right balance as we continue this journey. Energy Storage Systems (ESS) are also entering the marketplace to help achieve the environmental and financial goals when paired with natural gas or diesel generator sets. The ESS and control systems are able to “right size” the power supply by absorbing load spikes and managing the load across multiple generators. The ability to bring generators on and offline as needed reduces run time on units and keeps them in the most efficient load zone. This helps reduce maintenance cost,
fuel burn and emissions while providing the power required to manage the load in the most efficient profile. Natural gas demand and production are on the upswing post-COVID, and are expected to continue expanding for the next few decades, according to analysis from Oil World. The increased demand will drive supply and create opportunities for all. Emerging technologies are critical to achieving operational efficiency, financial returns and ESG goals. The trend towards natural gas prime movers has created the need for manufacturers to provide a low-carbon, low-emission solution for the industry. Technologies now entering the marketplace will provide options not previously available. Technological innovation has always been at the heart of the energy process and will continue to be critical in the transformation of providing energy to the world. l ..............................................................................................
Mark Reed is the General Sales Manager Exploration for Mustang Cat. He serves on the Council’s Board of Directors.
NATURAL GAS 2.5 MW NRM G3520
• NOx and Green House Gas Reduction • EPA Non-Road Mobile (NRM) Certified
20 YEARS OF HYDROGEN-FUELED ELECTRIC POWER EXPERIENCE Caterpillar currently sells production engines 5%-10% hydrogen mixed with methane (by volume) and customer projects up to 20% hydrogen mixed with methane.
CAT 3512E TIER 4 FINAL DGB • Recipient of the U.S. EPA’s 2020 Clean Air Excellence Award in the Clean Air Technology category
• Gas, 1 MW • High Performance Gen set • U.S. EPA certified* for mobile use
+ ENERGY STORAGE • Batteries and Inverter • 1125kw for 10 mins • 672 kWh
MUSTANG CAT • 12800 NORTHWEST FWY • HOUSTON, TX 77040 • 713-460-2000 • WWW.MUSTANGCAT.COM
THE ESG ISSUE
Automation Integration is Energy Transition By Brendan Gilbert, Solaris Oilfield Infrastructure
ith ESG and energy transition rising in importance, it’s critical for those of us in the industry to understand energy transition and educate our partners on the opportunities it presents. Energy transition does not mean an eradication of our need for fossil fuels. Rather, it is about embracing a culture committed to more responsible, safer, and sustainable use of our fossil fuels. To put it more simply, it is about finding better ways of doing things that protect our people and environment. Companies are increasingly adopting technologies like automation, advanced data analytics, machine-learning algorithms, real time, and remote monitoring. These are necessary innovations, but without the ability for seamless integration, our industry will continue to be challenged to do more by our investors and consumers. Parallels can be drawn between what the U.S. automotive industry experienced in 2008 and what the oil and gas industry is experiencing today. More than a decade ago, the U.S. automotive industry came under siege as we crashed into the Great Recession. Iconic brands faced insolvency and collapse. A fatal combination of poor financial planning, short-sighted decision-making, and unpopular product manufacturing sent the companies into a tailspin when the financial crisis hit. Yet, by 2012, U.S. automakers were once again a world leader in vehicle production and sales. This resurgence was achieved through a pivotal shift to long-term strategic planning, responsible decision-making, and commitment to designing and manufacturing products aligned with global trends. Automotive leaders embraced key principles such as fast innovation, comprehensive technology integration, and generating an enthusiastic customer base. They leveraged partnerships with tech companies and built scalable ecosystems and IoT connectivity that not only provided predictive maintenance tools but improved maintenance uptime, assessed failure risk, and centered all this around the driver experience. In essence, they transformed the driving experience
through infotainment. In June 2020, Aswini Choudhary and the Forbes Technology Council called this automotive revolution “The Convergence of Technology and Manufacturing.” By merging technology with manufacturing capabilities, today’s automobiles have innovative features allowing them to keep pace with the global trend towards diverse mobility, autonomous driving, electrification, and connectivity.1 Just as the U.S. automotive industry faced a combination of regulatory pressure on safety and efficiency, shifts in consumer demand preference, and the financial crisis of 2008, similar events are confronting the oil and gas industry today. First, ESG became a quickly growing point of emphasis for investors and consumers. Then, energy transition emerged as the world developed technologies and equipment in other sectors — like the automotive industry — that are driving down the demand for fossil fuels. This growing pressure for transformational change in the oil and gas industry culminated during the COVID-19 pandemic and the resulting supply glut. Investors reacted swiftly to stem the flow of cash to the industry, and world leaders ushered in sweeping and nebulous goals focused on carbon neutrality. Yet, what remains is the need for fossil fuels. Like the automobile, we cannot do without it. So, we are now faced with the question – how do we achieve energy transition in a world dependent on the production of oil and gas? Our industry has made strides adopting technologies to digitize and automate. We have programmable software with real-time health monitoring features, and some equipment can be remotely operated. In large part, however, these are add-on features to equipment based on designs several decades old. Moreover, given the highly segmented nature of operations, these technologies are not integrated into a single platform. The average drilling or completion project still has 5-10 suppliers providing their own equipment, hardware and software, each with its own varying level of advanced technology. In a 2021 Accenture survey, more than 90% of oil and gas companies recognized the need to change, but less than 20% says they’ve achieved a significant level of
“We are faced with the question - how do we achieve energy transition in a world dependent on the production of oil and gas? ”
Well Servicing Magazine/July 2021
integrated digital transformation (dubbed “Connectivity” in the survey).2 The headwinds facing the industry are not just in the available technology, but also in the skill sets required to drive adoption. In a 2020 EY survey, nearly 43% of respondents cited “too few workers with the right skills in the current workforce” as the biggest challenge to digital technology adoption. Executives estimated that nearly 60% of their workforce needs to be reskilled, and that reskilling would take 10 months for an average worker. These seem like staggering statistics. However, the reality is we have more technology, automation and integration in our mobile devices or in the vehicles we drive every day than is required to drill or complete a well.3 The key to successful digitization and automation is harmonious integration of the equipment and processes on a synchronized platform that can communicate and operate in symphony. It must provide real-time performance monitoring, as well as readily accessible data to run on-demand customizable performance analytics. These analytics must then be able to drive machine-learning algorithm programming. On the drilling side, we are seeing the step-change in automation integration. We have witnessed development of a nearly fully automated drilling rig, and adoption of remote operations centers capable of drilling wells without fewer people on a rig. This was achieved by integrating equipment and re-skilling personnel. In the completions space, nearly all operations at the wellsite are burdened by segmented operations, particularly on the low-pressure side of the well (or “backside”). From logistics planning — calling trucks to deliver product when needed — to having personnel working close to dangerous equipment in high-risk zones, the backside of the well is not as safe or efficient as it can be. At Solaris, we have embraced this challenge, first by launching automated silo systems capable of holding vast volumes of proppant, chemical and water to reduce unplanned logistics and the need for trucking, which helps cut carbon emissions. Supporting this equipment, we added a real-time visibility software platform called Solaris Lens® and automation tools for operating the equipment called AutoHopper™. While these achieve some level of automation and digitization, there is more opportunity ahead of us. One of the most outdated pieces of equipment on the wellsite — the blender — is still a critical component to completion operations. Revolutionizing the blending process is a must, otherwise it’s no different than operating cars built in the 1980s with aftermarket enhancements. At Solaris, we saw this as an opportunity to remove high-failure components such as hoppers, screws and proppant delivery belts. Embracing the concept of “Convergence of Technology and Manufacturing,” Solaris developed an integrated blending solution that combines
with the sand and fluid silo systems, underpinned by a software platform to operate it all — sand, water, chemicals and the blending process — all from a mobile touch screen the size of an iPad. Like the automotive industry partnering with IT companies, we partnered with AWS to develop a fast, scalable and serverless time series database to leverage the data from this automated equipment to build machine-learning algorithms so automation can take hold through integration. Lastly, all this low-pressure equipment is electric and can be run from a turbine or power grid source. The integrated solution is still in field trials, but the results have been extraordinary. We saw sand concentration rates as high as 8.5 pounds per added gallon of water and reached nearly 27,000 pounds of sand ingestion per minute. Moreover, the operation was done remotely, generating the potential to reduce low-pressure personnel needs by up to 80% and relocating the remaining 20% to the safety of a data van. Operators don’t even need to wear a hard hat, let alone be exposed to the dangers of the high-pressure side of a well. Automation needs integration for the transformational change that will drive a safer, cleaner, more responsible production of the fossil fuels we need to power our lives. The oil and gas industry is unlikely to benefit from a government-backed financial bailout like the automotive industry received in 2008. Therefore, the capital investment needed for these energy transition initiatives will have to be derived from a committed demonstration to true automation integration. To achieve a true generational transition — one that has lasting impact — we must look beyond IoT “bolton” tech features. We must embark on a quest for true integration of sophisticated technologies with our equipment, people, and practices. Automation needs integration to achieve energy transition. l SOURCES 1. https://www.forbes.com/sites/forbestechcouncil/2020/06/19/the-convergence-of-technology-and-manufacturing-in-the-automotive-sector/?sh=145d0c6133d9 2. https://www.accenture.com/us-en/insights/energy/necessity-mother-reinvention 3. https://www.ey.com/en_us/oil-gas-digital-skills-survey/how-do-you-reshape-when-todays-future-may-not-be-tomorrows-reality
...................................................................................................... Brendan Gilbert serves as Senior Vice President of Service & Quality, responsible for the delivery of field services, customer experience, and the continuous improvement to service quality. Prior to joining Solaris, Brendan spent six years with Schlumberger, serving in various roles in Houston and the United Arab Emirates. WellServicingMagazine.com
THE ESG ISSUE
Powering a Sustainable Future TECHNOLOGY IS KEY TO SUSTAINABLE ENERGY DEVELOPMENT By Jock Pool, Oceaneering International
he industry has called for more innovative solutions to help reduce or eliminate carbon emissions and increase worker safety. There are several artificial intelligence, machine learning and automation technologies that can help the oil and gas industry produce cleaner barrels with better data collection. The advancement of communication networks both on- and offshore enable remote operations from anywhere at any time. Instead of sending your best engineers and subject matter experts far offshore — and having to mobilize expensive travel by helicopters, support vessels, and accommodation space — integral personnel can stay onshore to work from a dedicated office space and provide much needed expertise in a more efficient, faster way. Oceaneering continues to advance its capabilities by developing technologies to mitigate greenhouse gas emissions for customers and its own operations. Oceaneering achieves this by developing next-generation remotely operated vehicle technology, dedicated remote operations centers, and even taking a hard look at its own practices. Internally, Oceaneering has committed to setting carbon emission reduction targets and has established an Executive Sustainability Committee to help set standards for the company’s operations around the globe.
ADVANCING DIGITAL AND REMOTE TECHNOLOGIES
Remote operations coupled with advanced autonomous solutions can have a huge impact on how business is conducted, even when that business is taking place offshore. Oceaneering’s Remote Piloting and Automated Control Technology (RPACT), introduced in 2004 enables full ROV piloting via virtual connection technologies such as vessel-to-vessel radio frequency (RF), satellite/internet, or subsea optical link. Software also supports collaborative control, for example, an onshore pilot flies an ROV while the offshore pilot operates manipulators. Supplemented with preprogrammed and automated commands, RPACT uses video processing software that analyzes video, determines spatial distances, and recognizes shapes to enable hands-free movement of the 30
Well Servicing Magazine/July 2021
ROV. This provides an essential pilot aid while operating the ROV over long-latency communication links. Oceaneering launched its first dedicated onshore remote operations center (OROC) in 2015. The OROC enables effective completion of offshore operations by providing a remote base for client representatives, additional ROV pilots, and subject matter experts. Operations completed using RPACT and the OROC range from the usual ROV-controlled work, such as the installation of subsea anodes, to operating subsea valves.
Oceaneering’s Liberty E-ROV (Empowered Remotely Operated Vehicle) is an all-in-one deployable and recoverable system with a cage-mounted battery pack. The Liberty is a work-class vehicle that can carry out inspection, maintenance, and repair (IMR), commissioning, and underwater intervention activities. Because the Liberty does not require a support vessel to stay onsite during operations, a typical IMR campaign in the North Sea could save an estimated 33 MT per day of CO2 by eliminating vessel usage during subsea operations. A major North Sea operator, on the verge of first oil at its development, contracted Oceaneering in early 2020 to use the Liberty E-ROV system for a complete pipeline seabed-to-platform monitoring operation. The project called for monitoring at depths up to 310 meters several times a day over the course of one to two months. The operator needed to maintain constant monitoring but ruled out using a conventional ROV system deployed from the platform or a vessel. A dedicated control umbilical provided power and data communications connectivity directly from the platform to the Liberty E-ROV system. This solution was identified as optimal as it eliminated the need to recharge Liberty’s batteries using a vessel and negated risks associated with winter storms in the area pushing the radio buoy out of location. The Liberty E-ROV system was mobilized from Oceaneering’s site at Forus, Norway, and deployed to the seafloor adjacent to the operator’s platform in the North Sea in February 2020. Monitoring of the riser started immediately and was conducted three to four times daily from March until April 2020. The ROV was piloted using RPACT and all video and images were uploaded
to our cloud-based Oceaneering Media Vault. In total, the Liberty E-ROV completed 822 hours of monitoring spread over 110 top-to-bottom trips conducted across 34 winter days in the North Sea. The vehicle did not need to dock in the subsea garage for changing or data transfer and did not require maintenance. The monitoring did not detect any issues that would have affected production commencement on the platform. The project provided the operator with assurance that operations were started successfully. The Liberty had already been field-proven across more traditional ROV operations, but this project scope enabled the vehicle to demonstrate its capability over longer, continuous deployments. It allowed the operator to benefit not only from peace of mind, but also a more economical, efficient, and emissions-friendly approach to ROV monitoring.
ROVS FOR OFFSHORE WIND
Harsh weather conditions and high-current seas have been a consistent issue for offshore oil and gas explorers and now offshore renewables developers are finding the same to be true. Project delays due to weather can be costly not just in time and vessel day rates, but also in carbon emissions from extended work campaigns. A major offshore wind developer contracted Oceaneering’s Isurus ROV in 2019 to increase operational windows for ROV operations across their European offshore wind farm projects. The developer required an alternative to the traditional ROV systems that either slowed or stopped operations completely during rough sea conditions. By adapting the Isurus body shape to a more hydrodynamic design and equipping the ROV with highly powerful thrusters, the operational capabilities were greatly increased. After operations started in October 2019, the Isurus system had zero downtime due to breakdown and has increased the developer’s operating window by up to six hours a day. The scopes of work included cable touchdown monitoring, cable installation, monopile pull-ins, and left/built surveys.
ACCELERATING AUTONOMOUS VEHICLE DEVELOPMENT
Advanced subsea resident vehicles help lower carbon emissions by further reducing the need for a support vessel to remain on location while the vehicle carries out work scopes subsea.
Oceaneering’s Freedom Autonomous Underwater Vehicle provides increased efficiency by combining the work class functions of an ROV with the speed, range, and maneuverability of an autonomous underwater vehicle (AUV). Freedom is supported by a docking station at the seabed and can operate in two modes: remotely piloted via short range, high-bandwidth communication link to provide real-time control — or operated in autonomous mode. Freedom boasts a working range of 200 kilometers, a working depth rating of 6,000 meters, a speed of four knots, and subsea deployments of up to six months. In January 2020, the Freedom vehicle arrived at our Norwegian site for in-water testing. In June 2020, we began testing the vehicle untethered. In September 2020, Freedom completed the industry’s first fully autonomous subsea docking operation using a third-party developed underwater docking station at our Norwegian facility. Offshore trials began at a nearby sheltered pipeline in late February 2021. Freedom is currently at API Technology Readiness Level (TRL) 5 and is expected to enter TRL 6 later this year. As we continue the transition to cleaner and lower emissions energy, it’s important for all players in our sector to examine their operations and identify ways to incorporate technology that improves efficiency, operational uptime and supports the goal of an abundant and resilient energy supply. l ......................................................................................
Jock Pool is the Chief Compliance Officer at Oceaneering International. He serves as Co-Chair of the Energy Workforce & Technology Council’s ESG Committee.
THE ESG ISSUE
Enhanced Well Integrity ENABLING DIGITALIZATION & ARTIFICIAL INTELLIGENCE IN TUBULAR CONNECTIONS By Azfar Mahmood, Frank’s International
ell integrity in the drilling industry is the engineered solution for management and prevention of uncontrollable formation fluids throughout the well’s life cycle. Management of well integrity involves several processes, each of which plays a vital role in establishing whether the well is profitable. Some of the key performance indicators (KPIs) of well integrity management include enhanced barrier assurance, improved economics, and optimized drilling performance. These KPIs, coupled with the development and reinforcement of industry standards, enhance quality assurance and reliability. The industry has a variety of standards for protecting well integrity, however digital implementation of drilling methods and technologies are still evolving. Over the last two decades of digital systems integration, operators and drilling contractors have recorded numerous case studies and performance results, showing that casing and tubular connections once deemed “undrillable” and impossible are indeed drillable and possible. This article provides a deep dive into Frank’s International’s award-winning iCAM® Connection Analyzed Make-up System, the industry’s first connection analysis system that applies machine learning and artificial intelligence to verify tubular connections safely and reliably at every connection joint in the tubular running process.
CHALLENGES IN CONNECTION INTEGRITY
Historically, tubulars and casing operations are labor intensive, requiring extensive human involvement and personnel commitment. Due to this, industry standards compliance, field personnel training and competency, field operational procedures, and risk management are critical. The error margin increases if any well integrity management parameters are overlooked. One small miscalculation or human error can cause operational inefficiencies and lead to a catastrophic incident resulting in financial loss and potentially even fatality, in severe cases. The industry’s fundamental goal is meeting the challenge to drill and run tubulars faster, more reliably, and in a safer manner. 32
Well Servicing Magazine/July 2021
OPTIMIZING CONNECTION INTEGRITY
To address these challenges, the petroleum industry leveraged digitalization in engineering and technology to adapt and implement digital solutions through intelligent systems and controls. Integration of digital technologies in tubular running services has resulted in remarkable safety performance for service companies. Additionally, digitalization can increase the reliability of the connection integrity during casing and tubular runs. This enhances profitability and operational performance, and extends the production life of wells. Machine learning and artificial intelligence are not novel — at least in theory. Data science and analytics have been pivotal in gaining insights and knowledge for precise and well-informed decision making across various industries. The complex algorithms and computational controls in these systems deliver analytical and predictive evaluation to achieve or exceed targets. Expanded further, advancement of digitalization technology has created new horizons for global industrial implementation. The benefits of machine learning in the oil and gas industry from this emerging technology is a paradigm shift in today’s environment. The future of drilling will rely on artificial intelligence and machine learning, where the engineered algorithms are applied to each tubular connection.
At the forefront of the digital evolution is the iCAM® Connection Analyzed Make-Up System offered by Frank’s International. The iCAM® system is the industry’s first connection makeup solution customized to unique rig requirements with truly implemented digital solutions. The development, enhancement, experience, and implementation of artificial intelligence and machine learning algorithm, enables tubular connections based not solely on engineering design standards set by tubular connection manufacturers, but also on the trained and machine-learned process from previous run history. Moreover, any anomaly found during connection makeup is detected in real-time. The system enhances safety by keeping personnel out of the “red zone” and improves operational efficiency, which extends well life and increases profitability. The risk of human error with the iCAM® system is reduced. Results gathered during multiple years of operational runs through digital enhancement are highlighted below: • 24% rig time savings due to automation and operational productivity • 70% safety improvement with reduction of personnel in the red zone
• 44% reduction in personnel on board with use of remote and intelligent systems Another benefit of this intelligent connection make-up solution is the data capturing of all disposed connection. Factors for threads acceptance and rejection will not only verify and validate engineering design, but can further provide design enhancement, resulting in optimized connection integrity. Cleaner validated data will further eliminate deviations in the decision-making process. With the iCAM® system, millions of data sets are analyzed to allow for accurate decision-making without risking the overall system integrity. Recommendations and guidelines from the system reduce non-productive time and equipment failures. l .............................................................................
Azfar Mahmood is the Global Product Manager for Digital Solutions with Frank’s International based in Lafayette, LA. He has a total of 15 years’ experience in product management, engineering, solution-based technical sales, and business development.
BITCO Insurance Companies .......................17 Cavins Oil Well Tools . ................................. 36 Commerce Bank .......................................... 5 Field Safe Solutions ................................... 21 Key Energy Services ....................................15 Loftin Equipment ........................................ 23 Lucky Rental Tool . .......................................18 Lucky Services . ...........................................18 Lucky Health & Safety . ................................18 Mustang Cat ................................................ 27 Oceaneering ................................................ 2 TRM LLC ....................................................18 VIVA Energy Services ................................ 21
Well Servicing Magazine is published quarterly by the Energy Workforce & Technology Council. Advertising is provided by World Oil (Gulf Energy Info). To advertise in this publication, contact Andy McDowell at email@example.com. For billing questions, contact Susan Dudley at firstname.lastname@example.org.
Energy Workforce & Technology Council 2500 Citywest Blvd., Suite 1110 Houston, TX 77042 713-932-0168 World Oil (Gulf Energy Info) 2 Greenway Plaza, Suite 1020 Houston, TX 77046 713-520-4463 WellServicingMagazine.com
HEALTH & SAFETY AWARDS
New Council Report Shows Industry’s Impressive Progress on Safety
By Kevin Broom, Energy Workforce & Technology Council
ell service safety statistics collected by the Energy Workforce & Technology Council shows dramatic improvement in worker safety since the data was first gathered in 1994. Lost time accident (LTA) frequencies have fallen 94% over the 26-year period, and OHSA recordable incidents fell by 88%. “The industry has done an admirable job of improving safety,” said Council CEO Leslie Beyer. “The total recordable incident rate fell by 31% in 2020 to the lowest level ever recorded. Continuing to track, set new goals and managing towards those goals will enable well service companies to achieve even higher levels of employee health and safety.” As would be expected given the pandemic-driven drop in demand and production, hours worked fell to their lowest point since 2016. Well-servicing businesses reported 40.4 million hours worked, down from 67.5 million in 2019, and 75.2 million in 2018. Amid the oil price war of 2014-16, hours worked hit a low of 35.6 million in 2016. The 2020 data show that floorhands were the most likely to be injured during rig jobs, accounting for 31.7% of accidents. Floorhands and derrickmen together comprised 42% of accidents. The most common incidents were “struck by” and “caught between,” which together to totaled 59.5% of all well-service safety incidents. “Companies wanting to make the most impact with their safety program should look at these areas as a
Well Servicing Magazine/July 2021
place of emphasis,” Beyer said. “This is one of the largest contributors to accidents in our business.” Fingers, hands and wrists were most vulnerable, accounting for 31.6% of injuries in 2020. This voluntary statistical program was begun by the Association of Energy Service Companies and will continue to be run by the Council. More than 100 well servicing rig companies reported their safety statistics and the details involved in their accident investigations. “This report can help companies evaluate their safety programs and benchmark themselves to the rest of the industry,” Beyer said. “It’s important that we pay attention to the leading indicators as we drive towards a zero-incident environment in the workplace.” The Council is involved with many safety initiatives, including STEP groups, NORA/NIOSH studies, and the American Petroleum Institute and will be a resource in helping members make the industry as safe as possible for workers. “It takes management support, understanding, funding and buy-in for safety to move from a program to a living commitment,” Beyer said. “As activity ramps up in the coming months, companies must maintain emphasis on training employees, no matter their position or experience.” The Council is committed to helping members improve safety by providing information and resources, working with regulators and customers, and assisting in developing and upgrading safety programs. The industry’s shared goal is a safe working environment and culture within each company. l
2020 Safety Award Winners Established in the 1980s by the Association of Energy Service Companies, the Council’s Safety Statistics Program has helped the industry reduce accidents and injuries to achieve a dramatically safer workplace for the men and women of the energy services and technology sector. The voluntary data collection program is used to determine recipients of the Safety Awards Program, which are presented to well servicing and non-well servicing companies in five different categories based on scale of operations. Companies with the fewest recordable incidents are recognized as Gold Award winners in each category. Those with the second fewest receive a Silver Award, and third fewest receives Bronze.
WELL SERVICING RIG DIVISION GROUP 1: 0-75,000 Hours GOLD: SPN Well Services — West Slope GOLD: Buster’s Well Service GOLD: McConnell & Scully, Inc. GOLD: Oilfield Service & Supply Co. GOLD: Rambler Energy Service GOLD: Willco Energy Services SILVER: Rapad Well Service Company BRONZE: Phillips Well Service GROUP 2: 75,001-150,000 Hours GOLD: Cannon Oil & Gas Well Service GOLD: Great Basin Petroleum Service GOLD: King Well Service GOLD: Royalty Well Service GOLD: SPN Well Services — North Dakota SILVER: SPN Well Services — DJ Basin BRONZE: A-Plus Well Service GROUP 3: 150,001-300,000 Hours GOLD: Excalibur Well Services SILVER: Standard Energy BRONZE: Lucky Services GROUP 4: 300,001-2,500,000 Hours GOLD: SPN Well Services — South Region SILVER: Steel Energy BRONZE: Aries Well Service GROUP 5: 2,500,000+ Hours GOLD: Basic Energy Services SILVER: Key Energy Services
WELL SERVICING DIVISION GROUP 1: 0-75,000 Hours GOLD: Accurate Safety Compliance GOLD: Basin Well Logging GOLD: Moncla Boss GOLD: GO Wireline Pressure Pumping GOLD: Lucky Rental Tools GOLD: Lucky Safety and Health GOLD: Moncla E-Line Services GOLD: Moncla Slickline GOLD: Moncla Trucking GOLD: TRM, LLC GOLD: TWS, Inc. SILVER: Moncla Pressure Pumping GROUP 2: 75,001-150,000 Hours GOLD: Longhorn Tubular Services GROUP 3: 150,001-300,000 Hours GOLD: Energy Drilling Company GOLD: Hawkins Lease Service GOLD: Triple S Trucking SILVER: NOV Mobile Rig BRONZE: Flying A Pumping Services GROUP 4: 300,001-2,500,000 Hours GOLD: Horizontal Wireline Services GOLD: Pioneer Wireline Services GOLD: Reach Wireline GOLD: Renegade SILVER: KLX Energy Services (Wireline) BRONZE: GO Wireline GROUP 5: 2,500,000+ Hours GOLD: NexTier Completions Solutions
Reborn in the U.S.A. Before Recertification
When you need to refurbish or recertify your pipe handling equipment, you want it done right and delivered to you right away. That’s why Cavins has a three-acre facility wholly dedicated to doing just that. Right here in the U.S.A. We’ve been in the well servicing business for 90 years designing and manufacturing the highest quality oil well tools in the industry. We know how expensive downtime can be, so we get your equipment back to you in the shortest time possible. We follow API-Q1 and ISO9001 regulations and can load test up to 350-ton capacity. We have the
know-how and the specifications to refurbish the vast majority of pipe handling equipment in the field today. You can count on Cavins to do the job right the first time and get your tools back to you right now so you can get up and running without delays. Call today or Email us at email@example.com (661) 827.1200 Fax (661) 827.1300 www.cavins.com email: firstname.lastname@example.org
Born in the U.S.A. ®
Spiders Slips Power Tongs Sand Pumps Bailers Hose Connections Depthometers Oil Savers Junk Snatchers Safety Clamps Sucker Rod Elevators Tubing Elevators Cement Dumps Blowout Preventers and Rod Strippers Rod and Crane Hooks Elevator Links and Hooks Baash-Ross, Foster, Hillman-Kelly, KelCo and Web Wilson are licensed trademarks of National Oilwell Varco, LLC