Go Back
  • Migration of Oil & Gas Drilling to Conventional Reserves

    The next step in the evolution that defines U.S. oil and gas drilling today has begun:  the migration of the business model that has driven “unconventional” drilling to “conventional” reservoirs. The Land Rig Newsletter team, in their latest Biweekly Report, notes that Helmerich & Payne is signing newbuild contracts for rigs designed for the shale plays to be deployed to conventional basins.

     

    In addition, a hot new non-shale play emerging in the Midcontinent region—specifically the Mississippian play now spreading from northern Oklahoma to southern Kansas—features high-permeability, shallow carbonate reservoirs targeted for low-risk, low-cost redevelopment with repeatability and scalability via horizontal drilling and multistage fracs. The play’s leader, SandRidge, is trying the same approach in conventional reservoirs in the Permian Basin as well. This is good news for all those stacked <1,000 hp rigs, as such plays don’t need the bigger rigs they’d have to compete for against the shale plays.

    Full story

    Comments (0)

  • Horiztonal Drilling Metrics Creates Change

    Tracking the metrics for horizontal drilling points to another fundamental change on the land rig scene. Specifically, the number of rigs drilling horizontally for oil totaled 302, according to the latest issue of The Land Rig Newsletter’s Biweekly Report. That compares with 107 such rigs at this time last year. Oil targets comprise 34% of all horizontal drilling, up from 18% last year.

     

    Texas was a substantial source of the increase in oil-directed horizontal drilling. In fact, 95 of the 195 added rigs were in Texas. Not a total surprise, given the strength of the Eagle Ford and growing activity in the Barnett Combo play. The Bakken was another major source of growth, doubling the oil-directed horizontal rig count in North Dakota to 114 as of January 28. Other states making meaningful gains include New Mexico with 19 and Oklahoma with 7.  In Oklahoma, the Granite Wash and Cana Woodford are likely sources of growth. In New Mexico, recent developments in the Bone Spring/Avalon Shale appear likely to drive the state’s horizontal oil count even higher.

    Full story

    Comments (0)

  • Drillers Refurb, Upgrade Rigs for Unconventional Work

    From the October 2010 issue of The Land Rig Newsletter:


    Just as fast as shale-suitable rigs in the 1,000 and 1,500 hp classes are being built, drillers are also scrambling to refurbish and upgrade rigs in those horsepower classes—or to get them there.And the emphasis is on making them shale-suitable. We recently surveyed 47 drillers regarding their plans for refurbs and upgrades, and the results are telling. Almost half of them acknowledged plans to refurbish or upgrade their rigs. Generally, plans include adding top drives, engines or generators, and other components to rigs’ drawworks configurations in an effort to upgrade the horsepower rating to 1,000 hp or greater to drill horizontally. Some plan to upgrade power packages to AC to drill more efficiently. Another common refurb was to boost mud pump capacity.


    In addition to refurbishing older rigs, 10 surveyed drillers plan to build a total of 27 new rigs, mostly in the 1,000–1,500 hp range. Of the 27 new rigs under order or likely to be built, drillers reported that a dozen of them will be powered with AC electric motors. One Permian driller said he plans as many as three refurbs in 2011, expanding drawworks capacity from ...

    Full story

    Comments (0)