Drilling Engineering Overview
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<strong>Drilling</strong> <strong>Engineering</strong> <strong>Overview</strong><br />
• Project Management<br />
• Well Planning<br />
• Contractor Management<br />
• Risk Assessment<br />
1<br />
Project Management<br />
• Operators are dependent upon various service<br />
providers for services that are critical to well<br />
delivery.<br />
• <strong>Drilling</strong> engineers must actively manage<br />
themselves and the resources at their disposal.<br />
• Effective drilling engineers are constantly and<br />
actively shifting their focus between<br />
“<strong>Engineering</strong>” activities and “Management”<br />
activities.<br />
2
Project Management<br />
• “<strong>Engineering</strong>” activities include:<br />
– Details of the well design<br />
– Specification and assessment of work done by<br />
other team members<br />
– Operational procedures and planning<br />
– Short term scheduling of tasks<br />
– Time and cost prediction<br />
– Performance monitoring and reporting<br />
– Lessons learned<br />
3<br />
Project Management<br />
• “Management” activities include:<br />
– Understanding the full scope of work involved in<br />
the project<br />
– Leadership – communication vision and goals for<br />
the project, gain buy-in, progress reports<br />
– Long term scheduling of work phases based on<br />
duration and lead time<br />
– Setting priorities / Allocation of resources<br />
– Relationships among team members that enable<br />
them to work effectively<br />
4
Geology<br />
Completion<br />
Well Planning Process<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
• Setting Priorities<br />
• Information Flow<br />
• Decision Support<br />
• Optimization<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
5<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
Offset well data<br />
Electric Logs<br />
Mudlogs<br />
Samples<br />
Cores<br />
Test results<br />
Seismic data<br />
<strong>Drilling</strong> Fluids<br />
Geology<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
6<br />
Targets:<br />
N-S/E-W<br />
TVD<br />
Size / Shape / Orientation<br />
Directional Tendencies / Dip Angles / Faults<br />
Lithologies:<br />
Rock type / strength<br />
Porosity / permeability<br />
Troublesome Formations<br />
Fracture and Pore Pressure Gradients<br />
Temperature<br />
Expected Fluids<br />
Expected Flow Rates
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
Geology<br />
Lithologies:<br />
Rock type / strength<br />
Porosity / permeability<br />
Dip Angles / Faults<br />
Fracture and Pore Pressure Gradients<br />
Expected Fluids<br />
Expected Flow Rates<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Completion<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Production Casing/Tubing Size<br />
Completion Design<br />
Artificial Lift Requirements<br />
Stimulation Design<br />
Length / Orientation in Reservoir<br />
Future Intervention Requirements<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
7<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
Geology<br />
Targets:<br />
N-S/E-W<br />
TVD<br />
Size / Shape<br />
Orientation<br />
Troublesome Formations<br />
Directional Tendencies<br />
Completion<br />
Length / Orientation in Reservoir<br />
Future Intervention Requirements<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Trajectory Design<br />
MD/TVD<br />
Inclination<br />
Azimuth<br />
KOP<br />
Build Rates<br />
Walk Rates<br />
Dogleg Severity<br />
N-S / E-W Displacements<br />
Horizontal Departure<br />
Surveying Requirements<br />
Rig Equipment<br />
8
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Completion<br />
Geology<br />
Target Orientation<br />
Lithologies<br />
Rock type / strength<br />
Fracture & Pore Pressure Gradients<br />
Troublesome Formations / Stress Regime<br />
Directional Tendencies<br />
Length / Orientation in Reservoir<br />
Prod. Casing/Hole Size<br />
Pressure at Abandonment<br />
Trajectory<br />
Wellbore Position<br />
KOP<br />
Inclination<br />
Azimuth<br />
Casing<br />
Cementing<br />
Wellbore Stability<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Mechanical Stability:<br />
Chemical Stability:<br />
MW Window<br />
<strong>Drilling</strong> Practices<br />
Tripping Practices<br />
Inhibitive Fluid Req’ts.<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
9<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
Completion<br />
Non-damaging<br />
Geology<br />
Lithologies<br />
Rock type / strength<br />
Fracture & Pore Pressure Gradients<br />
Troublesome Formations<br />
Trajectory<br />
Inclination<br />
Wellbore Stability<br />
MW Schedule<br />
Inhibitive Fluid Req’ts.<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
<strong>Drilling</strong> Fluids<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
10<br />
Mud Type<br />
Mud Properties<br />
Mud Weight<br />
Rheology<br />
Filtration<br />
Inhibition<br />
Solids Control Requirements<br />
Cuttings Handling / Disposal
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
Trajectory<br />
Critical Angle<br />
Dogleg Severity<br />
Completion<br />
Prod. Casing / Hole Size<br />
Completion Design<br />
Stimulation Design<br />
Zonal Isolation<br />
Geology<br />
Pressure Profile<br />
Unstable formations<br />
11<br />
Casing<br />
Wellbore Stability<br />
MW Schedule<br />
Casing Seat Options<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Mud Weight<br />
Viscosity<br />
Friction Coefficient<br />
Casing Sizes, Weights, Grades, Connections<br />
Casing Setting Depths<br />
Casing –vs- Liner/Tieback<br />
Load Cases – Tension, Burst, Collapse, Buckling<br />
Special Tools<br />
Running Procedures<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
Trajectory<br />
Inclination<br />
Completion Dogleg Severity<br />
Hole Size Requirements<br />
Completion Design<br />
Stimulation Design<br />
Zonal Isolation<br />
Geology<br />
Pressure Profile<br />
Temperature<br />
Aquifers<br />
Cementing<br />
Wellbore Stability<br />
MW Schedule<br />
Problem formations<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Mud Weight<br />
Viscosity<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
12<br />
Cement Job Designs<br />
Slurry type / additives<br />
Slurry volumes<br />
Spacers / Washes<br />
Displacement<br />
Conventional –vs- Inner string<br />
Tool Selection – Float Equipment,<br />
Centralizers, Stage tools, ECPs<br />
FIT / LOT Plan
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Trajectory<br />
Close proximity<br />
Completion requirements<br />
Hole Size Requirements<br />
Completion Design<br />
Stimulation Design<br />
Geology<br />
Pressure Profile<br />
Temperature<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Additives<br />
Casing<br />
Casing Sizes<br />
No. of strings to surface<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Wellheads / BOP<br />
Wellhead Size / Design / Pressure Rating<br />
BOP Size / Configuration / Working Pressure Rating<br />
Testing Procedures / Frequency<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
13<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Trajectory<br />
Measured Depth<br />
True Vertical Depth<br />
KOP / Dogleg Severity<br />
Inclination<br />
Azimuth<br />
Geology<br />
Lithology / strength<br />
Dip Angles / Faults<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Mud Weight<br />
Friction Coefficient<br />
Casing<br />
Casing Sizes<br />
Setting Depths<br />
Cementing<br />
BHA & Drill String<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
BHA Configuration / Directional Response<br />
Drill String: Lengths, Sizes, Weights, Grades, Connections<br />
Performance Properties: Tension, Torque, Buckling<br />
Operating Procedures: Torque and Drag<br />
% Rotary Mode, Tortuosity<br />
Casing Wear Prediction / Mitigation Plan<br />
Inspection Procedures / Frequency<br />
14
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellbore Stability<br />
Mobile Formations<br />
Trajectory<br />
Measured Depth<br />
Dogleg Severity<br />
Geology<br />
Lithology / strength<br />
Reactivity of clays<br />
Abrasiveness<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Inhibition<br />
Casing<br />
Casing Sizes<br />
Bits<br />
Cementing<br />
Annular Clearance Req’ts<br />
BHA & Drill String<br />
WOB and Torque Cap.<br />
Motor Torque Output<br />
% Rotary Mode<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Bit Size, Roller Cone / Fixed Cutter, Style, Features<br />
Operating Parameters: WOB, RPM<br />
Expected ROP, Footage, Bit Life, Cost / Foot<br />
Eccentric or Bicenter Requirements<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
15<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
Wellbore Stability<br />
Unstable Formations<br />
Hole Enlargement<br />
Pore Pressure / Frac<br />
Gradient Window<br />
Trajectory<br />
Measured Depth<br />
Surveying Req’ts<br />
Inclination<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Mud Weight<br />
Rheology<br />
Filtration<br />
Hole Cleaning &<br />
Hydraulics<br />
Casing & Cementing<br />
Casing Sizes<br />
Setting Depths<br />
BHA & Drill String<br />
Drill String:<br />
Lengths, Sizes,<br />
% Rotary Mode<br />
Bits<br />
Hole Sizes<br />
Bit Design<br />
Expected ROP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
16<br />
Flow Rates<br />
Standpipe Pressures<br />
Pump Horsepower Requirements<br />
Annular Velocities<br />
Equivalent Circulating Densities<br />
Surge / Swab<br />
Bit Hydraulic Horsepower<br />
Hole Cleaning Recommendations
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Slurry Volumes<br />
Casing<br />
Additive Types<br />
Casing Sizes<br />
Setting Depths<br />
Hookload<br />
<strong>Drilling</strong> Fluids<br />
Mud Type<br />
Mud Properties<br />
Solids Control<br />
Storage Volume<br />
Cuttings Handling<br />
Wellheads / BOP<br />
Size / Configuration<br />
Pressure Rating<br />
BHA & Drill String<br />
Lengths, Sizes<br />
Tension / Torque Loads<br />
RPM<br />
Hole Cleaning<br />
& Hydraulics<br />
Flow Rates<br />
Standpipe Pressures<br />
Pump HP Req’ts<br />
Cementing<br />
Wellheads / BOP<br />
Rig Equipment<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
17<br />
Top Drive Torque / RPM Capability<br />
Pump HP / Flow Rate / Pressure Capability<br />
Hookload Capacity<br />
Derrick Setback Space / Capacity<br />
<strong>Drilling</strong> Fluid Storage / Mixing / Solids Control<br />
Bulk Dry / Liquid Storage Capacity<br />
Deck Space / Bed Space<br />
Working Backwards<br />
from<br />
Rig Capabilities<br />
Geology<br />
Completion<br />
Top Drive<br />
Torque Output<br />
Liquid Storage<br />
Dry Storage<br />
Solids Control<br />
Cuttings Handling<br />
Dry Storage<br />
Liquid Storage<br />
for returns<br />
Rig Pipe Inventory<br />
Racking Space<br />
Storage Space<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
18<br />
Deck Space for Equipment<br />
Storage for Fluids<br />
Bed Space for People<br />
Deck Space for Tubulars<br />
Deck Space for Equipment<br />
Hookload Capacity<br />
Size / Configuration<br />
Pressure Rating<br />
Pump HP<br />
Flow Rate / SPM<br />
Standpipe Pressure Limit
Example<br />
of<br />
Other Iterations<br />
Geology<br />
Completion<br />
Trajectory<br />
Wellbore Stability<br />
<strong>Drilling</strong> Fluids<br />
Casing<br />
Cementing<br />
Wellheads / BOP<br />
BHA & Drill String<br />
Bits<br />
Hole Cleaning<br />
& Hydraulics<br />
Rig Equipment<br />
19<br />
Hazard Control Process<br />
20
Unocal Hazards Control Policy<br />
Each operating unit shall ensure that hazards control<br />
procedures are developed and implemented to effectively<br />
identify, evaluate and control hazards associated with<br />
all work at each stage, from conception through design;<br />
• <strong>Engineering</strong>,<br />
• <strong>Drilling</strong>,<br />
• Well servicing,<br />
• Construction,<br />
• Inspection,<br />
• 0perations,<br />
• Maintenance and<br />
• Cessation of operations.<br />
21<br />
Work<br />
Emergency?<br />
Yes<br />
Mitigate<br />
Emergency<br />
No<br />
As Soon As Possible<br />
Yes<br />
HA Screening<br />
and Technique<br />
Selection<br />
HAR<br />
Required?<br />
No<br />
Finalize Design<br />
Change or New Project<br />
Yes<br />
Select HAR<br />
Technique and<br />
HAR team<br />
Type of<br />
Work?<br />
Perform<br />
Hazard Analysis<br />
Review<br />
Follow-up and<br />
Close-out<br />
Maintenance/Replacement-in-Kind<br />
Design/<strong>Engineering</strong> Phase<br />
HAR Actions<br />
Significant<br />
Work Scope<br />
Change?<br />
No<br />
Implementation<br />
Planning<br />
22
Hazards Control Process<br />
Implementation<br />
Planning<br />
Note 1:<br />
"Resolving concerns will be by any of a number of<br />
methods such as peer discussion, project meeting or a<br />
formal hazard analysis. The method selected will be<br />
at the discretion of the performing authority, suitably<br />
trained in application of the techniques.<br />
Yes<br />
Implementation<br />
Phase<br />
Screening<br />
Any Concerns?<br />
No<br />
Start Work<br />
Variance<br />
from Work<br />
Plan?<br />
No<br />
Complete Work<br />
Yes<br />
Resolve<br />
Concerns<br />
(Note 1)<br />
Implementation/Construction Phase<br />
23<br />
Hazard Analysis<br />
• Design Phase<br />
– Hazard Analysis Screening<br />
– Use Guidebooks - Tools and Techniques / When to use<br />
• <strong>Engineering</strong> Phase<br />
– Hazard Analysis Review<br />
– Finalize Work –<br />
• Implementation Phase<br />
– Significant Work Scope Change<br />
– Implementation Planning<br />
– Screening – Go / No Go<br />
– Deviation from work plan<br />
• Work Completion – reporting / audit / learning<br />
24
Contract as Primary<br />
Risk Management Tool<br />
25<br />
Risk Management & Contracts<br />
• Unocal work is performed almost 100% by<br />
contractor personnel, working for a large number<br />
of Contractors.<br />
• Therefore Risk Management on the frontline of<br />
operations is co-managed by Contractors and<br />
Unocal.<br />
• The executed Contract is therefore a major Risk<br />
Management Tool.<br />
26
Risk Management Objectives<br />
• Control losses and manage risks<br />
• Promote critical thinking and management of change<br />
• Provide a standard risk assessment methodology<br />
• Provide additional risk management tools<br />
• Provide risk management training<br />
• Comply with Unocal’s Risk Management Standard<br />
• Comply with Unocal’s OMS requirements for risk,<br />
engineering standards and management of change<br />
• Complement Unocal’s Hazards Control Policy<br />
27<br />
Key Contract<br />
Risk Management Elements<br />
• Indemnification<br />
• Insurance<br />
• Accident Reporting<br />
• Force Majeure<br />
• Warranties, including<br />
patents and copyright<br />
• Confidentiality<br />
• Audit<br />
• Applicable Law<br />
• Billing<br />
• Term<br />
• Termination<br />
• Foreign Corrupt Practices<br />
Act<br />
• Technical Exhibits<br />
•<br />
28
Contractor Management<br />
Program<br />
29<br />
Key Aspects of the CMP<br />
• Company-wide application of best practices to select<br />
and manage contractors<br />
• A well defined “cradle to grave” contracting process<br />
• Each contract is “owned” by a Contract Manager<br />
• Contract teams are formally established<br />
• Technical specifications and Contractor selection are<br />
based on business objectives<br />
30
Key Aspects of the CMP<br />
• Focus is on total long term value; not (only) on price<br />
• Planned and structured management of Contractor<br />
performance – continuous improvement<br />
• Risk Management / OMS<br />
• The program is a guideline that must reflect BU<br />
requirements<br />
31<br />
Managers’ Responsibilities<br />
• Integrate the CMP into every major project / program<br />
• Make appropriate resources (personnel) available<br />
• Delegate responsibility to contract teams:<br />
– Ensure the right people are selected as team members<br />
– Clarify the priority of the contracting effort and provide guidance<br />
– Participate in appropriate reviews and sanction key decisions<br />
– Track progress and address problem areas - ensure accountability<br />
• Be visibly committed to the CMP<br />
32
The Procurement Team<br />
Contract Manager<br />
Procurement Specialist<br />
HES Representative<br />
Engineers & Techs<br />
Superintendents<br />
Worksite Supervisors<br />
Clerks & Secretaries<br />
Management<br />
Attorney<br />
HR Rep<br />
Accounting Rep<br />
Tax Department Rep<br />
Auditors<br />
Cross Functional Personnel<br />
33<br />
CMP Objectives<br />
• Apply Unocal’s values to all business dealings<br />
• Maximize the value for every procurement dollar<br />
• Manage risks (HES, operational, & commercial)<br />
• Timely delivery of quality goods and services<br />
• Meet requirements of policies and regulations<br />
• Integrate multiple Contractors in a single project<br />
34
Contracting Priorities<br />
(Key Value Drivers)<br />
• Personnel<br />
• Service<br />
• Goods<br />
• Pricing<br />
35<br />
Drivers - Personnel<br />
• This is the single greatest factor in being<br />
the Clear Leader!<br />
• We need Contractor personnel who are:<br />
• technically excellent<br />
• highly motivated<br />
• driven by continuous improvement<br />
• team players<br />
• available to Unocal<br />
36
Drivers - Goods<br />
• Have we developed detailed technical<br />
specifications?<br />
• Composition of materials<br />
• API specifications<br />
• Pressure and Temperature ratings<br />
• Do we understand Contractor’s QA / QC?<br />
37<br />
Drivers - Service<br />
• Quality of service is always determined by<br />
quality of personnel and overall management<br />
• Service is impacted directly by the way in<br />
which we manage the relationship from both<br />
sides<br />
38
Drivers - Pricing<br />
• Every Contractor working for Unocal<br />
needs to make a fair and reasonable<br />
profit.<br />
• A key driver for all Contractors is to<br />
be paid on time!<br />
39<br />
Expectations<br />
• Establish high expectations and define them<br />
early - What do we consider success?<br />
• Ensure management (Unocal & Contractor)<br />
are committed to meeting the expectations<br />
• Expect continuous improvement<br />
40
Contracting Activities<br />
• Form a Contract Team<br />
• Research the Business Environment<br />
– Internal and External<br />
• Develop Contract Strategy<br />
• Method of Selection & Commercial Structure<br />
– Bid / Bundle / Negotiation / Alliance / Turnkey / Performance<br />
– Global or local / Extensions / Exclusive personnel or equipment<br />
• Develop Specifications<br />
• Pre-Qualify Vendors<br />
• Revalidate the Strategy<br />
– Does original strategy still appear workable?<br />
• Contract Implementation<br />
– Reporting / Invoicing<br />
• Performance Management During the Contract Life<br />
41<br />
Research the Business Environment<br />
• Internal understanding:<br />
• Analysis of this type of service: Who spends how much<br />
with whom to accomplish what?<br />
• Forecasted activity level<br />
• Historical problems (quality, timeliness, incidents)<br />
• Opportunities to bundle services or consolidate with other<br />
departments / business units<br />
• External understanding:<br />
• What levels of competition and what range of quality &<br />
capabilities exist in the market?<br />
• What commercial structures are most efficient for the<br />
Contractors?<br />
42
Performance Management<br />
During the Contract Life<br />
• Contract Manager is the focus point and is<br />
responsible for Contractor performance<br />
• Business Performance Reviews (BPR) are held to<br />
identify any issues and track action items created to<br />
address those issues<br />
• Contract Strategy Review (6 – 12 months from end<br />
of contract term)<br />
• Final Contract Review<br />
43
Notes:<br />
__________________________________________________________<br />
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