Does technology or finance drive the petroleum industry's growth? Those in the financial side of the industry will say that revenue dollars drive technology development and improvement. Those in the operations sector most likely will pose the questions, "Is it not technology that captures market share and generates revenue dollars; and, how can you generate revenue without a viable technological product?"
Industry history may yield some good insight into the answers of these questions. Key historical achievements in the North American oil and gas industry include:
- Edwin L. Drake and North America's first producing oil well on August 28, 1859.
- Conrad and Marcel Schlumberger's downhole electric measuring devices introduced in California, 1927.
- Earl P. Halliburton's first fractured well.
- Brown and Root's first constructed offshore fixed drilling platform in 1947.
All of these achievements have one thing in common - they became reality through the ingenuity of a few creative visionaries. The achievements were most likely considered "financial gambles" in their time, and therefore did not benefit from promises of financial reward. The motivation behind them was not economics, but most likely the satisfaction of being the first individual(s) to solve the technical challenges of the time. Sure, great financial rewards resulted, but probably not a part of the decision process to develop the technologies. These help support the argument that technology, and a "we have the know-how" philosophy, led our industry's growth in the past.
There is strong evidence that the 1990s have seen the highest frequency of advances in drilling technologies of any decade in the history of the oil and gas industry. For above-the-seabed changes, look at the number of deepwater drilling vessels constructed over the last 30 years. Forty-two of the world's existing 78 vessels were built before 1990. There were approximately 34 new vessels constructed since 1990. This implies a 45% increase in new construction over the 20 year period from 1970 to 1990. In addition, 90% of the ships built before 1990 have been upgraded within the last three years.
The downhole drilling tool industry is another example. The development and improvement of existing directional drilling tools and techniques in the early 1990s allowed for more effective recovery of oil and gas reserves from older, existing fields around the world. Its been said more than once in recent years, that the drilling technology became so efficient that we effectively drilled ourselves out of business.
This suggests that the "entrepreneurial spirit" that drove the ambitions of the individuals above, is still alive and well in our industry today. We cannot get away from the saying that, "The oil and gas industry likes its toys." In any case, the question remains unanswered, "What came first, technology or finance?"
Directionally friendly reaming tools
Problems often encountered using bi-center design bits revolve around the inability to drill effectively with them. Excessive downhole torque, high vibrational effects, and poor directional control are expected while using them. Recent developments in PDC cutter technologies have given new life to this older bit design and reaming- while-drilling technology.
Diamond Products International (DPI) recently introduced a new addition to its SpeedReamer line of products. The Speed ReamerCSDtrademark or Casing Shoe Drillertrademark
provides the ability to drill cement, float equipment and then continue drilling new hole section with a larger diameter than it drifted through on the trip in the hole.
One main advantage of a bi-center bit is the capability to provide a 15-20% increase in hole size over the "pass through" or internal drift diameter of the casing. Enhanced force balancing in the tool design decreases the high torque and vibrational tendencies usually seen with these tools. Measurement-while-drilling tools run above the SpeedReamertrademark have recorded limited vibrational effects and lower downhole torque than conventional PDC bits (in smaller hole sizes). This could explain the favorable response clients and directional drillers are giving this new technology. Numerous successful case studies have been documented, many of the examples contain impressive directional control situations.
Tool design is meant to be flexible, both on the engineering and manufacturing side. In fact, almost 50% of the orders filled to date required special modifications. Although performance from the initial bit runs was considered excellent, several modifications were made to subsequent bits to further improve drilling performance and bit life.
