Drilling and Completion Environmental Benefits PDF

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Advanced Oil and Gas Drilling and

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U. S . D E PA RT M E N T of E N E RG Y
OF FI CE of F O S S IL EN E RGY
E N V I R O N M E N TA L B E N E F I T S
of A D VA N C E D O I L and G A S E X P L O R AT I O N
and P RO D U C T I O N T E C H N O L O G Y
DRILLING AND COMPLETION
SUCCESSFUL DRILLING OFTEN MEANS GOING FASTER AND DEEPER, THROUGH
HARDER ROCK, AND IN MULTIPLE DIRECTIONS FROM A SINGLE WELLBORE. THE
RESULT? MORE RESOURCES ARE CONTACTED WITH FEWER WELLS, LESS DRILLING
WASTE, AND LESS SURFACE DISTURBANCE.
© SPE, 1993
E N V I R O N M E N T A L B E N E F I T S of
ADVANCED E&P TECHNOLOGY
G R E AT E R D R I L L I N G E F F I C I E N C Y ,
L E S S E N V I RO N M E N TA L I M PA C T
With horizontal drilling, today’s oil and gas characterization are combined with improve-
industry has an extraordinary capability: the ments in drilling technology to increase
power to navigate three-dimensionally through drilling success rates, reduce drilling costs,
the earth, contacting and economically pro- and reduce the environmental impacts of
ducing resources while minimizing surface both exploratory and development drilling.
disruption. A case in point is the Red River B
Formation in the Williston Basin (North Dakota, Onshore, typical drilling and completion
South Dakota, and Montana), where Burlington costs have dropped by about 20 percent,
Resources Inc. and Continental Resources are from an average of about $500,000 per well
using horizontal technology to drain a narrow in the 1980s, to about $400,000 per well
but oil-rich, low-permeability dolomite zone. today, adjusting for inflation, depth, type of
Historically, vertical wells completed in the Red well, and locations of wells drilled. Similarly,
River B produced an uneconomic 20 or 30 barrels offshore drilling and completion costs of
Advanced drill bits reduce
a day. New wells penetrate the zone laterally,
time on site and associated about $5.5 million per well in the 1980s have
extending a mile or more within a porosity win-
environmental impacts. dropped to an average of $4.3 million today.
dow of only 2 feet. Initial daily production from
the longest of the 123 horizontal wells drilled Photo: RBI-Gearhart In addition to expanding the deepwater oil
and completed to date was 575 barrels of oil. and gas resource base, technology advances
Horizontal drilling was instrumental in Burlington
Resources’ discovery of an estimated 150 million
D RILLING IS THE MOMENT OF
truth for oil and gas producers. After
all of the analyses and preparation, have
in drilling and completion have added new
gas reserves from sources once considered
barrels of recoverable oil in the Cedar Hills uneconomic — including Devonian shales,
explorationists pinpointed the reservoir?
play in the Williston Basin, the largest onshore deep gas formations, coalbeds, and low-
Will it be productive? Are development
discovery in the last 25 years. The technique permeability “tight” gas sands.
complements waterflood recovery efforts
wells being drilled in the right pattern for
there. “With two horizontal wells per section, efficient extraction?
Burlington is replacing traditional line-drive “High technology has migrated to almost
Substantial investments ride on the answers.
techniques in the area where operators have all phases of exploration and production,
Drilling activities for a given field or reser-
typically drilled eight to 10 wells per section,” and that includes stepping right up to
voir may require the investment of hundreds
said drilling manager Doug Harris. “In fact, the the drilling rig floor. That’s right, the
horizontal wells will result in a more efficient
of millions of dollars or more. Justifying
rig floor — the domain of the roughneck
flood than the vertical-drilled line-drive patterns, such investments in developing domestic and the pipe wrench, where the real
with only one-fourth the number of wells.” resources is increasingly difficult, since much ‘nitty gritty’ gets done — is becoming more
Source: American Oil & Gas Reporter, September 1998

of our Nation’s remaining oil and gas is technology-oriented by the day . . ..
locked away in geologically complex and Technology is markedly improving drilling
challenging structures that necessitate deeper performance and enhancing safety even
drilling or enhanced completion and pro- as it helps trim cost.”
duction technologies. MAGGIE LEE
Source: The American Oil & Gas Reporter, April 1998
Despite these challenges, drilling is now
safer, faster, more efficient, and less costly
than in the past. High-resolution 3-D
seismic and improved reservoir imaging and
34 E N V I RO N M E N TA L B E N E F I TS
Photo: CANRIG
Fundamentals of
Drilling and Completion
Fewer Wells Mean Less Waste

Contacting a targeted formation involves:
E NVIRONMENTAL BENEFITS FROM • Using rotary equipment and hardened drill bits, weighted and lubricated by drilling
drilling and completion advances are fluids, to penetrate the earth’s surface.
significant. For example, new exploration
• Inserting casing and tubing into each well to protect the subsurface and control
and drilling technology has, on average,
the flow of fluids (oil, gas, and water) from the reservoir.
doubled the amount of oil or gas supplies
developed per well since 1985. Thanks to • Perforating the well casing at the depth of the producing formation to allow flow
this productivity increase, today’s level of of fluids from the formation into the wellbore.
reserve additions is achieved with 22,000
• Installing a wellhead at the surface to regulate and monitor fluid flow and prevent
fewer wells annually than would have
potentially dangerous blowouts.
been required with 1985-era technology.
Reducing the number of wells decreases
wastes generated from drilling operations. Average Onshore and Offshore Drilling Costs Some technology advances key to improved
Assuming an average well depth of 5,600 feet (Dollars per well, in thousands) drilling and completion efficiency are
and 1.2 barrels of waste per foot drilled, with Both onshore and offshore drilling costs have described below:
declined by over 20% since the 1980s.
22,000 fewer wells, the average annual volume
of drilling waste is reduced by approximately Horizontal and directional drilling
148 million barrels. Avoiding this waste— Onshore Oil and gas wells traditionally have been
enough to cover about 1,440 football fields drilled vertically, at depths ranging from a
to a depth of 10 feet — reduces waste man- $415 few thousand feet to as deep as 5 miles.
agement and disposal requirements. Depending on subsurface geology, tech-
$496
$500
Other environmental benefits of advanced nology advances now allow wells to deviate
drilling and completion technology include: 400 from the strictly vertical orientation by
anywhere from a few degrees to completely
• Smaller footprints 300
horizontal, or even inverted toward the
• Reduced noise and visual impacts 1990s
200 surface. About 90 percent of all horizontal
• Less frequent well maintenance and
wells have been drilled into carbonate
workovers, with less associated waste 100
1980s formations, which account for about
• Reduced fuel use and associated emissions 0 30 percent of all U.S. reserves.
• Enhanced well control, for greater worker
safety and protection of groundwater Directional and horizontal drilling enable
Offshore
• Less time on site, with fewer associated producers to reach reservoirs that are not
environmental impacts located directly beneath the drilling rig, a
• Lower toxicity of discharges $6,000
capability that is particularly useful in avoid-
• Better protection of sensitive ing sensitive surface and subsurface environ-
5,000 $4,287
environments mental features. New methods and technology
$5,445
4,000 allow industry to produce resources far
3,000 beneath sensitive environments and scenic
1990s
2,000
1,000
1980s Costs adjusted for 1996 activity (i.e., depth,
0 type, and general location of wells drilled).
Source: American Petroleum Institute
DRILLING
AND
COMPLETION
METRICS
vistas in Louisiana wetlands, California

wildlife habitats and beaches, Rocky
Measures of Success for Horizontal Drilling
Mountain pine forests, and recreational According to a 1995 DOE study, horizontal drilling has improved:
areas on the Texas Gulf Coast. Even some
offshore resources, including many off the • Reserve additions: Reserves are potentially increased by an estimated 10 billion
coast of California, can be produced from barrels of oil, nearly 2 percent of original oil-in-place in the United States.
onshore wells. • Speed of delivery: Carbonate production is nearly 400 percent greater in horizontal
Horizontal drilling may also allow a producer projects than with vertical wells, yet costs are only 80 percent more.
to contact more of the reservoir, so that more • Average production ratio: The ratio is 3.2 to 1 for horizontal compared to vertical
resources can be recovered from a single well. drilling, offsetting a higher average cost ratio of 2 to 1. Average increase in reserves
In Mississippi’s Black Warrior Basin, for derived from horizontal well applications is approximately 9 percent.
example, horizontal wells provide six times
as much natural gas deliverability as conven-
tional vertical wells do at the Goodwin nat- Worldwide Horizontal Wells
(Number of horizontal wells)
ural gas storage field. In growing numbers of 3,000
operations, the benefits from this increased

production far outweigh the added cost for 2,250
these wells. This was the case in the remote

South China Sea, where Phillips China Inc. 1,500
recently used advanced horizontal drilling

and completion technologies to successfully 750
complete a 5-mile-long extended-reach well.

0
Advances in directional drilling also facili- 1995
1995
tate multilateral drilling and completion, 1994
1993
enabling multiple offshoots from a single 1992
wellbore to radiate in different directions or 1991
1990
contact resources at different depths. Recent 1988
1989
and very rapid development of such radial Pre-1988 Source: Oil & Gas Journal, November 23, 1998
drilling technology has spurred a boom in

horizontal drilling. Since the mid-1980s, the
Advanced Drilling Techniques
drilling of horizontal wells has grown from
a few to more than 2,700 wells per year
worldwide. In the United States, horizontal
drilling now accounts for 5 to 8 percent of
the land well count at any given time.
Environmental benefits of horizontal and
directional drilling include:
• Fewer wells
• Lower waste volumes
• Protection of sensitive environments Multilateral Horizontal Directional
OIL AND GAS TECHNOLOGY 37

Mud Disposal Reduction in Slimhole Coiled Tubing

Operations vs. Conventional Drilling Operations
Maximum fluid volume (m3)
180
Conventional Slimhole
120
60
0
Slimhole drilling and coiled tubing
Slimhole drilling— a technique gaining Completion
widespread use for tapping into reserves in Reservoir
© SPE 27156, 1994

mature fields—significantly decreases waste Intermediate
volumes. For example, a slimhole drilled
Tophole
to 14,760 feet and ending with a 4 1 ⁄8-inch
Conductor
bottomhole produces one-third less volume
of cuttings than a standard well at the same
depth. Operational footprints are also reduced,
since equipment for slimhole drilling is and minimizing equipment footprints. A noise levels. For example, the noise level of
smaller than that used in conventional opera- typical coiled tubing layout requires a work- a conventional rig at a 1,300-foot radius is
tions. The area cleared for drilling locations ing space about half that of a conventional 55 decibels, while a coiled tubing unit’s noise
and site access can be as little as 9,000 square light workover hoist. The drilling site is easier level at the same distance is 40 decibels, or
feet with mud holding pits, as much as to restore when operations are completed, 27 percent less. The smaller size of coiled
75 percent less than that required for conven- and the impact of equipment mobilization tubing drilling also cuts fuel use and reduces
tional operations. In contrast, if technology on the environment is reduced. emission of gaseous air pollutants, compared
development had stopped in 1985, today’s with traditional rotary drilling.
In addition, coiled tubing and slimhole
drill pads would cover an additional 17,000
drilling enable less disruptive, quieter drilling Environmental benefits of slimhole drilling
acres of land in the United States, an area
operations, minimizing the noise impact on and coiled tubing include:
roughly the size of 12,900 football fields.
wildlife or humans near the well site. Since • Lower waste volumes
Coiled tubing technology — a cost-effective coiled tubing is a continuous pipe, most • Smaller footprints
solution for drilling in reentry, underbalanced, noises associated with conventional drilling • Reduced noise and visual impacts
and highly deviated wells — has similarly pipes are avoided. Efficient insulation and • Reduced fuel use and emissions
impressive benefits, reducing drilling wastes the equipment’s smaller size further reduce • Protection of sensitive environments
Use of coiled
tubing redefines
equipment
footprints.
Photo: Haliburton Energy Serivces
DRILLING
AND
COMPLETION
METRICS
Improved drill bits

Impressive Performance from Modern Diamond Bits
Advances in materials technology and bit
Polycrystalline diamond compact (PDC) drill bits have become hydraulics, spurred by competition between
increasingly effective: roller cone and polycrystalline diamond com-
pact bits, have yielded tremendous improve-
• Between 1988 and 1994, technology advances increased the average footage drilled
ment in drilling performance. Extensive field
per PDC bit by over 260 percent (from approximately 1,600 to 4,200 feet per bit).
data indicate that, on average, a 15,000-foot
• Total footage drilled worldwide by diamond bits has climbed steadily, from well in Roger Mills County, Oklahoma, takes
approximately 1 percent in 1978, to 10 percent in 1985, and to 25 percent in 1997. about 39 days to drill today, while that same
well would have taken over 80 days in the
• Latest-generation PDC bits drill 150 to 200 percent faster than similar bits just a
1970s. By reducing the time for the rig to be
few years ago.
on site, advanced drill bits reduce potential
impacts on soils, groundwater, wildlife, and
air quality.
Light modular drilling rigs Measurement-while-drilling (MWD)
Now in production, new light modular MWD systems measure downhole and Environmental benefits of improved
drilling rigs can be deployed more easily formation parameters to allow more efficient drill bits are:
in remote areas than conventional rigs. and accurate drilling. By providing precise, • Lower waste volumes
Fabricated from lighter and stronger mate- real-time drilling data on bottomhole • Reduced maintenance and workovers
rials, these rigs are built in pieces that can conditions, these systems reduce costs and • Reduced fuel use and emissions
be transported individually and assembled improve the safety of drilling operations. • Enhanced well control,
on site. The lower weight of components • Less time on site
Combined with advanced interpretive soft-
and the rig reduces surface impacts during
ware, MWD tools allow drilling engineers
transport and use. The modular design also Decreased Drilling Time
to more accurately determine formation pore
allows the rigs to be quickly disassembled Modern drill bits enable operators to contact
pressures and fracture pressures as the well targeted formations in ever more difficult
and removed when drilling operations
is being drilled. Such accurate geopressure geologic environments, and to
are completed. drill significantly faster. 1970 – 79
analysis can help reduce the risk of life- (Days to drill)
Environmental benefits of light modular threatening blowouts and fires. In the event
drilling rigs are: of the loss of well control, MWD tools help
• Smaller footprints engineers to quickly steer a relief well and 1984 – 86
• Reduced fuel use and emissions regain control.

1994 – 96
• Protection of sensitive environments Environmental benefits of MWD 100
(decreased surface impacts of transportation) systems include:
• Fewer wells 80
• Enhanced well control 18,000 ft
• Less time on site 40 12,000 ft
6,000 ft
0
0 ft
Source: Hart’s Oil & Gas World, November 1996

METRICS
Annular injection of cuttings

Synthetic Drilling Fluids (Muds) Cut Costs
In certain settings — such as deep onshore
An operator in the Gulf of Mexico found that synthetics significantly outperformed wells, remote offshore operations, and
water-based fluids in a recent drilling operation. Of eight wells drilled under Alaska’s North Slope — drilling cuttings can
comparable conditions to the same depth: be disposed of by reinjecting them into the
annulus around the drill pipe. Reinjecting
• The three wells drilled using synthetic fluids were completed in an average of 53 days
wastes down the annulus eliminates several
at an average cost of $5.5 million.
needs on the surface: waste management
• The five wells drilled using water-based fluids were completed in an average of 195 days facilities, drilling waste reserve pits, and off-
at an average cost of $12.4 million. site transport. Returning the wastes to geo-
logic formations far below the earth’s surface
minimizes the impacts of drilling operations
Advanced synthetic drilling fluids Environmental benefits of synthetic on sensitive environments, and in many cases
Today’s drilling fluids (muds) must perform drilling fluids vs. water-based fluids are: reduces the costs of drilling operations in
effectively in extreme temperature and pres- • Lower waste volumes these environments.
sure environments, support industry’s use of • Enhanced well control Environmental benefits of annular
increasingly sophisticated drilling and com- • Lower toxicity of discharges injection of cuttings include:
pletion technology, and be compatible with • Less time on site
• Smaller footprints
current environmental disposal standards. • Protection of sensitive environments
• Lower toxicity of discharges
To meet these challenges in deepwater for-
• Protection of sensitive environments
mations, synthetic drilling fluids combine Air percussion drilling
the higher drilling performance of oil-based Air percussion or pneumatic drilling—
fluids with the lower toxicity and environ- used for natural gas wells in regions such Downhole Cuttings Injection
mental impacts of water-based fluids. Because as Appalachia — can eliminate the need for Annular injection wellbore configuration
synthetic fluids can be recycled, they generate drilling liquids during drilling operations.
less waste than water-based fluids. Also, As a result, only drill cuttings are generated, Prepared
unlike oil-based fluids, these synthetics significantly reducing requirements for waste cuttings
slurry Wellhead
produce wastes that are thought to be envi- management and disposal. Although this
ronmentally benign, thus minimizing impact technology has limited application, it can
on marine life. Moreover, by eliminating the be an effective underbalanced drilling tool
use of diesel as a mud base, synthetic fluids Confining layer
in mature fields, in formations with low
have low-toxicity and low-irritant properties downhole pressures, and in fluid-sensitive Surface casing
that significantly enhance worker health formations.

and safety. Injected slurry
Environmental benefits of air percussion Injection zone
drilling include:
© SPE 25964, 1993
• Lower waste volumes Intermediate casing
• Protection of sensitive environments Production hole
DRILLING
AND
COMPLETION
METRICS METRICS
Productivity Gains from CO2-Sand Fracturing A Major Contribution

CO2 -sand fracturing may greatly improve productivity in certain wells. After In addition to being critical to natural
37 months of DOE-supported field trials at 15 Devonian Shale test wells, wells gas production, hydraulic fracturing has
fractured with CO2 -sand technology produced: enabled recovery of 8 billion barrels of
additional oil reserves in North America.
• Four times as much gas per well as wells fractured with nitrogen foam and proppant.
• Twice as much gas per well as wells fractured with nitrogen gas.
New offshore platforms and wells feature

Corrosion-resistant alloys fairway, operators are using advanced open extensive blowout prevention, well control,
hole cavitation techniques to produce more oil-spill contingency, and safety systems. All
New alloys and composites for drill bits,
coalbed methane. Operators have found offshore wells have storm chokes that detect
drill pipe, and coiled tubing — particularly
that dynamic open hole cavitation boosts damage to surface valves and shut in the well
for equipment designed to operate in deep,
production when compared with conven- to prevent spills. Blowout preventers are
hot, and sour (high concentrations of H2S)
tional cased and fractured completions, located at the seafloor instead of at the plat-
wells — reduce well failure rates and the
generally by three to seven times as much. form level, protecting sea beds and sea life,
frequency of workovers and increase
and sensors continuously monitor subsurface
equipment life. Environmental benefits of improved comple- and subsea-bed conditions.
Environmental benefits of corrosion-resistant tion and stimulation technology include:
Environmental benefits of improved offshore
alloys are: • Increased recovery
drilling and completion technology include:
• Fewer wells • Lower waste volumes
• Fewer wells drilled • Fewer wells
• Reduced maintenance and workovers
• Protection of groundwater resources • Lower waste volumes
• Enhanced wellbore control
• Reduced maintenance and workovers
• Protection of sensitive environments
Improved offshore drilling and • Enhanced well control
Improved completion and completion technology
stimulation technology Today’s offshore operations include more BEYOND THE OIL PATCH
Advanced completion and stimulation stable rigs and platforms, can drill in far
greater water depths, and apply new controls • Advances in horizontal drilling and
technology includes CO2-sand fracturing,
to prevent spills. Subsea completion tech- technologies supporting its applica-
which yields clean fractures to increase
nology, for example, allows multiple wells tion, such as measurement-while-
well deliverability while avoiding the waste
to be drilled through steel templates on the drilling (MWD) and coiled tubing, have
management and well maintenance costs
seafloor. A small number of lines (or risers) expanded the technology’s application
associated with more traditional fracturing
then carry produced fluids from the tem- to such areas as groundwater reme-
operations. In addition, advances in hydraulic
plates to production facilities on the surface diation and pipeline construction.
fracturing technology — such as state-of-
the-art fracture simulators and improved or to a platform collection system. This • Advances in drilling technologies for
microseismic fracture mapping — have technology reduces the risks of spills and E&P, such as slimhole drilling, have
improved well placement and design, and allows safe production from multiple wells been adapted for mining, geothermal,
increased ultimate recovery. In the over- as the industry approaches water depths and water supply applications, as well
pressured, highly permeable San Juan Basin of 10,000 feet. as for application to research geology.

DRILLING
TECHNOLOGY Locations: Canada (commercial) and United States (demonstration only)
AND
CO2-Sand Fracturing
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 5
Fracturing has been widely In widespread use in Canada, a stimulation technique
used since the 1970s to
now successfully demonstrated in the U.S. has outstanding
increase production from for-
results without formation damage
mations with low permeability
or wellbore damage. Unlike Using CO2 to fracture unconventional settings. produces wastes requiring
conventional hydraulic and oil and gas reservoirs More than one million frac- disposal.
acid fracturing techniques,
CO2-sand fracturing stimu-
R ECOMPLETING AND
fracturing an existing oil
or gas well to stimulate produc-
turing treatments were per-
formed by , and about 
to  percent of existing wells
An advanced CO2-sand frac-
turing technology overcomes
lates the flow of hydrocar-
tion that has declined over time are hydraulically fractured at these problems, and is prov-
bons without the risk of for- is significantly less costly than least once in their lifetime. ing a cost-effective process for
mation damage and without drilling a new well. First used in More than eight billion bar- stimulating oil and gas pro-
producing wastes for dispos- the mid-, fracturing treat- rels of additional oil reserves duction. First used in  by
al. A mixture of sand prop- ments inject fluids under high have been recovered through a Canadian firm, the process
pants and liquid CO2 is forced
pressure into the formation, this process in North America blends proppants with 
creating new fractures and alone. Yet conventional frac- percent liquid CO2 in a
downhole, where it creates
enlarging existing ones. turing technology has draw- closed-system-pressurized ves-
and enlarges fractures. Then “Proppants” (usually large- backs. The water- or oil-based sel at a temperature of °F
the CO2 vaporizes, leaving grained sand or glass pellets) are fluids, foams, and acids used and a pressure of  psi.
only the sand to hold the added to the fluid to support in traditional fracturing Nitrogen gas is used to force
fracture open—no liquids, the open fractures, enabling approaches can damage the the resulting mixture through
gels, or chemicals are used
hydrocarbons to flow more formation—for instance, by the blender to the suction
freely to the wellbore. causing clay in the shale to area of the hydraulic fracture
that could create waste or
Fracturing is widely used to swell—eventually plugging pumping units and then
damage the reservoir. Any stimulate production in the formation and restricting downhole, where it creates
reservoir that is water- declining wells and to initiate the flow of hydrocarbons. and enlarges fractures. The
sensitive or susceptible to production in certain Conventional fracturing also CO2 used in the process
damage from invading fluids,
gels, or surfactants is a candi-
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
date. The process has had
Eliminates hauling, disposal, and maintenance Using liquid CO2 creates long, propped frac-
widespread commercial
costs of water-based systems tures without formation damage
success in Canada, and
recent DOE-sponsored field Can significantly increase well productivity and No wastes requiring disposal are created
tests have demonstrated ultimate recovery
Conventional fracturing gels and chemicals,
commercial feasibility in the
CO2 vaporization leads to fast cleanup, whereas which may damage the flow path between
United States. water-based fluids sometimes clean up slowly, wellbore and formation, are not used
reducing cash flow
Groundwater resources are protected
Recovery of valuable oil and gas is optimized
CASE STUDIES
vaporizes, leaving behind a CO2-sand fracturing treat- Success in the Field

dry, damage-free proppant ments average from ,
pack. The technology has to ,, depending on
gained widespread commer- well depth and rock stresses.
cial acceptance in Canada, While often higher-cost
where it has been used some than conventional methods,
, times. In the United these costs are offset by sav-
States, use has been limited ings realized through elimi-
to demonstrations—many nating both swab rigs and
sponsored and cofunded by the hauling, disposal, and
DOE—taking place over maintenance costs associat-
the last two years in about ed with water-based sys-
 wells in Kentucky, Ohio, tems. As in conventional ■ Major areas of oil
and gas potential
Pennsylvania, Tennessee, fracturing, CO2-sand treat-
Texas, New York, Colorado, ments can significantly
and New Mexico. increase a formation’s pro- Successful DOE-sponsored field tests
duction and profitability. The U.S. Geological Survey estimates that  to  trillion
cubic feet of natural gas resources exists in unconventional set-
tings in the United States. Developing cost-effective advanced
METRICS fracturing techniques is crucial in our quest to recover these
resources. A number of field-test fracturing projects sponsored by
Results of fracturing technique tests DOE recently evaluated and proved CO2-sand technology’s effec-
in Devonian Shales wells after tiveness in gas recovery. In the Devonian Shales in Kentucky, four
37 months of  gas wells were stimulated with CO2-sand mixture, seven
with nitrogen gas and no proppant, and four with nitrogen foam
Increased Gas Production per Well and proppant. After  producing months, wells stimulated with
0% 600% the CO2-sand process had produced four times as much as those
treated with foam, and twice as much as those stimulated with
CO2-Sand vs.
Nitrogen Gas 200% nitrogen gas. In central Pennsylvania, three gas wells were stimu-
(no proppant)
lated using CO2-sand fracturing. Immediately after fracturing,
CO2-Sand vs.
two of the wells exhibited production increases of , percent
Nitrogen Foam 400 % and  percent. Over a year and a half later, production from
the wells had increased  percent,  percent, and  per-
(with proppant)
Source: Arnold, Hart’s Petroleum Engineer International, January 1998 cent, respectively.
SOURCES AND ADDITIONAL READING CONTACT
Arnold, D. Dry Frac Damage Petroleum Technology Transfer Yost II, Mazza, and Remington II.
Control. PTTC Network News, Council. Needed: Demonstration Analysis of Production Response
2nd Quarter 1997. Sites for New Stimulation to CO2/Sand Fracturing: A Case
Process. PTTC Network News, Study. SPE 29191, 1994.
Arnold, D. Liquid CO2 and Sand:
2nd Quarter 1997.
An Alternative to Water-Based 1995 National Assessment of
U.S. Department of Energy
Stimulation Fluids. Hart’s Raymond, Johnson, et al. CO2 United States Oil and Gas
Office of Fossil Energy
Petroleum Engineer Energized and Remedial 100% Resources. USGS Circular 1118,
1000 Independence Avenue, SW
International, 1/98. CO2 Treatments Improve U.S. Government Printing Office.
Washington, DC 20585
Productivity in Wolfcamp
DOE, Office of Fossil Energy.
Intervals. Val Verde Basin, Elena S. Melchert
Fracturing Gas/Oil Formations
West Texas, SPE 39778, 1998. (202) 586-5095
with “Reservoir Friendly”
elena.melchert@hq.doe.gov
Carbon Dioxide and Sand.
Investments in Fossil Energy Trudy A. Transtrum
Technology. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore
AND
Coiled Tubing
COMPLETION
Continuous coiled tubing Successively better coiled tubing technologies drive
can dramatically increase improvements in cost, productivity, and efficiency of
the efficiency, profitability,
drilling operations, while reducing environmental impact
and productivity of drilling
for oil and gas. Whereas in A strong portfolio of benefits operating units in , usage about ,, but with
has grown to some  units
conventional drilling oper-
ations, the drilling pipe P A RT I C U L A R LY VA L U -
able in sensitive environ-
ments such as Alaska’s North
in , and many drilling
companies are now revising
coiled tubing and slimhole,
the same well would cost
, less.
consists of several jointed
Slope, coiled tubing technol- their rig portfolios.
pieces requiring multiple
ogy has far less impact on a Reduced working space—
reconnections, a more drilling site than conventional In a variety of drilling appli- about half of what is required
flexible, longer coiled pipe equipment, in addition to cations, coiled tubing elimi- for a conventional unit—is an
string allows uninterrupted performing drilling opera- nates the costs of continuous important benefit, as are
operations. A cost-effec- tions more efficiently and jointing, reinstallation, and reduced fuel consumption and
tive alternative for drilling
cost-effectively. Although the removal of drilling pipes. It is emissions. A significant drop in
first coiled tubing units were a key technology for slimhole noise levels is also beneficial in
in reentry, underbalanced,
built in the , only after drilling, where the combina- most locations. The noise level
and highly deviated wells, rapid technological advances tion can result in significantly at a ,-foot radius is 
coiled tubing technology in the late  did the tech- lower drilling costs—a typical decibels, while at the same
minimizes environmental nology start to gain industry- ,-foot well drilled in radius a conventional rig has a
impacts with its small wide recognition. From  southwest Wyoming costs -decibel level.
footprint, reduced mud
requirements, and quieter
operation. Quick rig set-
up, extended reach in hori-
Increased profits, in certain cases, from 24-hour Reduced mud volumes and drilling waste
rig set-up and faster drilling
zontal sidetracking, one- Cleaner operations, as no connections to leak mud
time installation, and Smaller drilling infrastructure and more
reduced crews cut operat- stable wells Reduced operations noise
ing costs significantly. For

No interruptions necessary to make connections Minimized equipment footprints and easier site
multilateral and slimhole restoration
or to pull production tubing
reentry operations, coiled
Reduced waste disposal costs Reduced fuel consumption and emissions
tubing provides the oppor-
tunity for extremely Less visual impact at site and less disturbance,
Reduced fuel consumption
profitable synergies. due to speedy rig set-up
Increased life and performance from new rig
designs and advanced tubulars, reducing Reduced risk of soil contamination, due to
operating costs increased well control
Better wellbore control

CASE STUDIES
Technology advances
in the ’90s
Success in the Field
Dramatic advances have
recently brought new coiled At Lake Maracaibo field
tubing technology to mar- Advanced coiled tubing drilling is helping operators optimize
ket. For example, new resource recovery at Venezuela’s Lake Maracaibo field. Baker
designs from leading Hughes INTEQ’s first-of-its kind Galileo II hybrid drilling barge,
drilling service companies containing  ⁄-inch coiled tubing and slimhole drilling measure-
have eliminated coiled ment-while-drilling tools, drilled its first well at the end of .
tubing rigs’ guide arches; in It was the first time an underbalanced well had been drilled on
these new designs, eliminat- Lake Maracaibo, and it promises good results. Galileo II’s unique
ing the bending in the tub- design is also expected to significantly increase the life of its coiled
ing at the guide arch has tubing, ultimately reducing operating costs. Operating in a fragile
significantly increased its lake ecosystem presents unique waste management challenges,
life. The newest advance is and all drill cuttings and waste mud are transported back to shore
an electric bottomhole for disposal.
assembly offering immedi- Photo: WZI, Inc.
ate data feedback on bot-

tomhole conditions,
reduced coiled tubing METRICS
fatigue, maintenance of bit

speed independent of flow Field trials in the Netherlands Conventional drilling fluids volume com-
pared with coiled tubing volumes (m3)
rate, and improved reliabili- demonstrate environmental benefits 180
ty. New materials like 160

Fuel Consumption and Gas Emissions:
advanced titanium alloys Coiled Tubing vs. Conventional Rigs 140
and advanced metal-free Med Land Coiled Tubing

120
composites have improved Workover Drilling Drilling 100
the reliability, performance, Rig Rig Unit

80
corrosion-resistance, weight, Diesel m3/month 35 160 25

60
and cost-effectiveness of Gas CO2 3,293 15,055 2,122

40
Emissions CO 3.7 16.8 2.5
coiled tubing assemblies. In kg/day NOx 4.6 21 2.1 20
certain cases, titanium tub- HC 3.9 17.8 2.8 Conventional Coiled Tubing
ing offers an estimated reel- HC (Gas) 1.8 8.4 1.1

Conductor Tophole
ing cycle life  to  times
SO2 4.2 19.4 2.2
Intermediate Reservoir
©SPE 27156, 1994
greater than steel. Completion
Adams, L., and C. Overstreet. Faure, A., and J. Simmons. Schutz, R., and H. Watkins.
Coiled Tubing Facilitates Deep Coiled Tubing Drilling: A Means Titanium Alloys Extend
Underbalanced Workover. Oil & to Minimize Environmental Capabilities of Specialty
Gas Journal, 3/31/97. Impact. SPE Paper 27156, 1994. Tubulars Arsenal. The American
Oil & Gas Reporter, 9/98.
Berning, Isennock, and Coats. Furlow, W., Lake Maracaibo’s U.S. Department of Energy
Composites Extend CT’s Depleted Fields Continue to Strunk, C. Slim Hole, Coiled Office of Fossil Energy
Applications. The American Oil Produce. Offshore Magazine, Tubing Combine to Enhance 1000 Independence Avenue, SW
& Gas Reporter, 9/98. 9/1/98. Well Economics. The American Washington, DC 20585
Oil & Gas Reporter, 2/97.
Electric Coiled-Tubing Drilling. Kunkel, B. Benefits Fuel CT Elena S. Melchert
Journal of Petroleum Growth. Hart’s Petroleum (202) 586-5095
Technology, 9/98. Engineer International, 7/97. elena.melchert@hq.doe.gov
Newman, K. Coiled Tubing
Technology Continues Its Rapid Trudy A. Transtrum
Growth. World Oil, 1/98. (202) 586-7253
DRILLING
AND
Horizontal Drilling
COMPLETION
Horizontal drilling targets Without any increase in environmental impact, horizontal
oil or gas in thin, tight drilling allows developers to reach reserves beyond the
reservoirs, reservoirs inac-
limits of conventional techniques
cessible by vertical drilling,
and reservoirs where hori- Breaking geologic barriers In the mid-, several sig- ° angle. Today, horizontal
zontal wellbores signifi-
cantly increase flow rates T HE CURRENT BOOM
in horizontal drilling is
due to rapid developments in
nificant technology advances
started breaking down these
barriers. Steerable downhole
wells are being drilled longer
and deeper, in more hostile
environments than ever before.
and recovery. Horizontal
wells maximize utilization
technology over the past two motor assemblies, measure-
decades. Although several ment-while-drilling (MWD) Horizontal drilling is now
of drilling sites and infra-
horizontal wells were success- tools, and improvements in conventional in some areas
structure. While vertical fully drilled between the  radial drilling technologies and an important component
wells drain oil from a sin- and , these were limited were the breakthroughs need- of enhanced recovery pro-
gle hole and have limited to expensive - to -foot ed to make horizontal drilling jects. At any given time, hori-
contact with oil-bearing forays. Interest waned in such feasible. Short-radius technol- zontal drilling accounts for 
rock, horizontal wells pen-
onshore applications after the ogy had been developed in the to  percent of the U.S. land
development of hydraulic , the earliest curvature well count. The Austin Chalk
etrate a greater cross-
fracturing technology made technique used to drill laterals; field has been the site of over
section of the formation, vertical wells more productive. in the , long-radius tech-  percent of the onshore
allowing substantially The offshore industry contin- nology allowed lateral dis- horizontal rig count since the
more oil to drain. A hori- ued to pursue horizontal placement away from the rig late , and still accounts
zontal well is drilled later- drilling, but the limitations of to penetrate the reservoir. for the majority of horizontal
ally from a vertical well-
the available equipment often Then, in the , medium- permits and rig activity in the
resulted in ineffective, expen- radius techniques permitted U.S. today. Thirty percent of
bore at an angle between
sive, and time-consuming re-drilling horizontal intervals all U.S. reserves are in car-
70° and 110°. It can tap the drilling operations. from existing wellbores, and bonate formations, and it is
hydrocarbon supplies of a with this advance producers here that  percent of hori-
formation without further could build rapidly to a zontal wells are drilled.
environmental distur-
bance, of particular value
in sensitive areas.
Increased recoverable hydrocarbons from a Less impact in environmentally sensitive areas
formation, often permitting revitalization of
previously marginal or mature fields Fewer wells needed to achieve desired level of
reserve additions
More cost-effective drilling operations
More effective drilling means less produced water
Less produced water requiring disposal and less
waste requiring disposal Less drilling waste
Increased well productivity and ultimate recovery

CASE STUDIES
Success in the Field Worldwide Horizontal Wells

Number of Horizontal Wells
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
■ Major areas of oil 500

and gas potential 250
0
Pre- 1988 1989 1990 1991 1992 1993 1994 1995 1996
Success in the Black Warrior Basin 1988
In , after six years of production, the Goodwin gas field in the Source: Oil & Gas Journal, November 23, 1998
Black Warrior Basin was converted to gas storage by the Mississippi

Valley Gas Co. Only conventional vertical wells had been drilled of , barrels. Success has spawned the drilling of nine other
in the thin ( feet), tight, abrasive formation. The operator horizontal wells here, and nearly  others in geologically similar
successfully drilled and completed the first horizontal well in only fields in the basin. If successful in other depleted Dundee fields,
 days, utilizing MWD and gamma ray tools, a short radius horizontal wells could produce an additional  to  million
motor, and a polycrystalline diamond bit. Overall costs approached barrels of oil, worth about  million in tax revenues alone.
twice that of a conventional well in the field, but the deliverability
of the horizontal well was six times that of a vertical well. Since one METRICS
horizontal well is producing the equivalent of six vertical wells,
maintenance and operating costs are lower, and fewer meter runs, In the United States, according to a recent
flowlines, and other facilities are required. DOE study, horizontal drilling has improved:
Potential reserve additions—by an estimated 10 billion barrels of oil equivalent,
New reserves in the Dundee Formation nearly 2% of original oil-in-place
Only  percent of the known oil located in the Michigan Basin’s The average production ratio—now 3.2:1 for horizontal compared to vertical
Dundee Formation had been produced when a DOE co-sponsored drilling based on field data, even though the average cost ratio is 2:1
horizontal drilling project brought new life to the formation’s Carbonate numbers are even better—production is nearly 400% greater than verti-
cal wells, yet costs are only 80% more
exhausted Crystal field. The new horizontal well now produces
nearly  times more than the best conventional well in its field—
 barrels of oil a day—and boasts estimated recoverable reserves Source: U.S. Department of Energy and Maurer Engineering, Inc., 1995
Cooper, S., and R. Cuthbertson. Horizontal Well Successfully Philips, C., and D. Clarke. 3D
Horizontal, Underbalanced Wells Drilled in Black Warrior Basin. Modeling/Visualization Guides
Yield High Rates in Colombia. Oil & Gas Journal, 7/22/96. Horizontal Well Program in
World Oil, 9/98. Wilmington Field. Journal of
Knoll, R. Buzzwords Can Lead to
Canadian Petroleum
Department of Energy. Using Poor Results. The American Oil U.S. Department of Energy
Technology, 10/98.
Horizontal Drilling to Give a & Gas Reporter, 9/98. Office of Fossil Energy
Michigan Oilfield New Life. Potter, N. 3D, Horizontal Drilling 1000 Independence Avenue, SW
Mason, R. Horizontal Drilling
Changing Clair Development Washington, DC 20585
Deskin, W. et al. Survey Shows Broadening Mindset, Opening
Economics. Offshore Magazine,
Successes, Failures of Horizontal New Possibilities. The American Elena S. Melchert
5/1/98.
Wells. Oil & Gas Journal, 6/19/95. Oil & Gas Reporter, 9/98. (202) 586-5095
Gas Research Institute. Natural Petroleum Council. The elena.melchert@hq.doe.gov
Measuring the Impact of Potential for Natural Gas in the Trudy A. Transtrum
Technology Advances in the United States, 12/92. (202) 586-7253
Gulf of Mexico. trudy.transtrum@hq.doe.gov
DRILLING
AND
Hydraulic Fracturing
COMPLETION
Routinely applied to over Assisting operators to bring new life to mature fields
half of U.S. gas wells and and make unconventional fields commercially viable
a third of oil wells,
hydraulic fracturing has Stimulating wells tions, such as coalbed map microseismic events and
to deliver more methane, tight gas sands, and predict the direction and
been proven to enhance
shape of fractures. New -D
well performance, mini-
mize drilling, and recover
F I R S T I N T RO D U C E D I N
, hydraulic fracturing
quickly became the most
shale deposits. Improvements
in fracturing design and qual-
ity control have enabled oper-
fracture simulators with
revised designs and real-time
otherwise inaccessible commonly used technique to ators to successfully apply feedback capabilities improve
resources. It makes the stimulate oil and gas wells, fracturing techniques in more prediction of results.
development of some low- ultimately enabling produc- complex reservoirs, hostile
permeability, tight formation of an additional eight environments, and other Advanced breakers and
tions and unconventional
billion barrels of North unique production settings. enzymes that minimize the
American oil reserves that risk of formation plugging
resources economically
would otherwise have been New advances from large-volume hydraulic
feasible. When the flow of unrecovered. By , fracturing The DOE-led Natural stimulations are the latest
hydrocarbons is restricted had already been applied Gas and Oil Technology advances to protect the envi-
by formation characteris- nearly a million times. Each Partnership has promoted ronment and increase ultimate
tics, injecting pressurized year, approximately , many of this decade’s fractur- recovery. In addition, emerg-
fluids and solid additives
gas and oil wells are hydrauli- ing advances. These include ing technologies developed by
cally fractured. the use of air, underbalanced DOE and the Gas Research
can stimulate wells to
drilling, and new fracturing Institute, such as microseismic
increase production. Fluids Fracturing is generally used to fluids to reduce formation fracture mapping and down-
are pumped into the for- regain productivity after the damage and speed well clean- hole tiltmeter fracture map-
mation at pressure great first flow of resources dimin- up. Improved log interpreta- ping, offer the promise of
enough to fracture the ishes. It is also applied to ini- tion has improved identifica- more effective fracture diag-
surrounding rock. A prop-
tiate the production process tion of productive pay zones. nostics and greater ultimate
in unconventional forma- Improved borehole tools help resource recovery.
pant slurry follows, biode-
grading to sand proppant
that holds the fractures
open, allowing free pas-
sage of fluids to the well- Increased well productivity and ultimate recovery Optimized recovery of valuable oil and
gas resources
head. So successful has
Significant additions to recoverable reserves
this technology been that Protection of groundwater resources
the industry currently Greatly facilitated production from marginal
and mature fields Fewer wells drilled, resulting in less waste
spends a billion dollars
requiring disposal
annually on hydraulic
fracturing.
CASE STUDIES
■ Major areas of oil

and gas potential
©SPE, 1993
Increased profits from the once

declining Lost Hills field
Refined fracturing methods and improved quality control have In , Chevron and Schlumberger Dowell formed a partner-
brought increased productivity and profitability to a field that once ship aimed at improving fracturing efficiency, reducing costs,
resisted development. The Lost Hills field in California contains an and increasing productivity. One result is that multiple wells are
estimated two billion barrels of oil-in-place, but since its discovery now stimulated from fixed equipment locations. Since its
in  it has produced only a fraction of its potential. The field implementation in late , this central site strategy has been
has very low permeability and it lacks a strong natural fracture net- used to fracture more than  wells, using some  million
work, which restricts the flow of resources. This makes the field dif- pounds of proppant. The strategy has lowered costs by reducing
ficult to produce at acceptable rates without fracture stimulation. personnel, well completion time, and equipment mobilization,
while improving environmental management and safety
Although hydraulic fracturing began in Lost Hills during the
controls. Along with fracture design changes, this has reduced
’ and ’, completion results were poor because of small prop-
overall fracturing costs by  percent since . These efforts
pant volumes and inefficient fracture fluids. Between  and
played a large part in the field’s  percent production increase
, Chevron initiated massive hydraulic fracture stimulation.
between  and —from , barrels to more than
Although productivity increased significantly, costs were high and
, barrels of oil per day.
the work was not as profitable as anticipated.
The CER Corporation. Using the Ellis, R. An Overview of Frac Stewart, Stewart, and Gaona.
Rifle, CO, Test Site to Improve Packs: A Technical Revolution Fracturing Alliance Improves
Fracturing Technology, (Evolution) Process. Journal of Profitability of Lost Hills Field.
apollo.osti.gov/html/fe/cer.html Petroleum Technology, 1/98. Oil & Gas Journal, 11/21/94.
Diffusion of Advanced Jennings, A., Jr. Fracturing Swift, T., and P. Mladenka.
U.S. Department of Energy
Stimulation Technology in the Fluids—Then and Now. Journal Technology Tackles Low-
Office of Fossil Energy
Petroleum Industry: A Case of Petroleum Technology, 7/96. Permeability Sand in South
History. Journal of Petroleum Texas. Oil & Gas Journal,
Longitudinally Fractured Washington, DC 20585
Technology, 3/98. 9/29/97.
Horizontal Wells Add Value in
Elena S. Melchert
Dual-Hydraulic-Fracturing Alaska. Journal of Petroleum Wolhart, S. New Initiatives in
(202) 586-5095
Technique Minimizes Proppant Technology, 3/97. Hydraulic Fracture Diagnostics.
Convection and Increases GasTIPS, Fall 1998.
Hydrocarbon Production. Journal Trudy A. Transtrum
of Petroleum Technology, 3/97. (202) 586-7253
DRILLING
AND
Measurement-While-Drilling
COMPLETION
Measurement-while-drilling
High-tech tools that deliver real-time bottomhole data
(MWD) systems measure
prevent excessive formation damage and make drilling
downhole and formation
parameters to allow more
significantly more precise and cost-effective
efficient, safer, and more
More information for electromagnetic telemetry. Evaluating the formation
accurate drilling. These
better drilling Surface sensors and computer Prior to the spread of MWD
measurements can other-
wise be obtained only by
extrapolation from surface
M WD TECHNOLOGY
is critical as operators
seek to reach deeper and far-
systems then decode the
transmitted information and
present it as real-time data.
systems in the late ’, bot-
tomhole conditions were
monitored by time-consum-
measurements. MWD sys- ther for new hydrocarbon ing analysis of cuttings and
tems calculate and transmit resources. A real-time bit nav- In normal drilling environ- gas intrusion, and by after-
real-time data from the drill
igation and formation evalua- ments, MWD is used to keep the-fact wireline steering mea-
tion aid, MWD uses tools the drill bit on course. MWD surement that necessitated fre-
bit to the surface, avoiding
such as triaxial magnetome- is also valuable in more chal- quent interruptions for pipe
the time-lag between ters, accelerometers, and pres- lenging drilling environments, removal. Today, the continu-
occurrence and surface sure sensors to provide vital including underbalanced, ous flow of MWD informa-
assessment and significantly downhole data concerning extended-reach, deviated, and tion improves formation
improving drilling safety directional measurements, high-pressure, high-tempera- evaluation efforts as well as
and efficiency. Without this
pore pressures, porosity, and ture drilling. In underbal- drilling progress. Over succes-
vibration. This provides for anced directional drilling, sive periods, MWD data can
analysis of bottomhole con-
more effective geosteering MWD monitors the use of reveal dynamic invasion
ditions, it is sometimes and trajectory control, and gas injected to maintain safe effects, yielding information
necessary to abandon a safer rig operations. Novel operating pressure. In deviat- on hydrocarbon mobility, gas-
hole for a new start. MWD equipment transmits bottom- ed and horizontal wells, oil-water contact points, and
reduces both costs and hole information to the sur- MWD can be used to geolog- formation porosity. Future
environmental impacts
face by encoding data as a ically steer the well for maxi- advances in MWD technology,
series of pressure pulses in the mum exposure in the reser- such as MWD acousticalipers
because measurements and
wellbore’s mud column or by voir’s most productive zones. with digital signal processing
formation evaluation occur
before formation damage,
alteration, or fluid displace- ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
ment have occurred. Of par-
Improved drilling efficiency and accuracy Less formation damage
ticular use in navigating
hostile drilling environ- Timely formation evaluation Reduced possibility of well blowouts and
ments, MWD is most fre- improved overall rig safety
Reduced operating costs and financial risks
quently used in expensive
Reduced volume of drilling waste as fewer
exploratory wells, and in Improved rig safety wells drilled overall
offshore, horizontal, and
highly deviated wells. Better wellbore control
CASE STUDIES
and DOE-sponsored interpretive software appli-

research into ultra-deep- cations, MWD is helping
water MWD technologies, deepwater operators better
promise to enhance opera- forecast and measure a for-
tions even further. mation’s pore and fracture
pressures. More accurate China
Contributing dramatically to geopressure estimates can Taiwan
operational safety prevent dangerous well
Operators seeking to con- blowouts and fires. In the
trol drilling operations and unlikely event of a deep- Philippines
enhance rig safety in diffi- water blowout, MWD
cult environments such as equipment is a crucial tool
deepwater drilling find in assisting operators to drill
MWD a valuable tool. In and steer a relief well to South China Sea
combination with advanced regain control of the well.
Vietnam
Extended reach in the South China Sea

In the South China Sea, MWD technology was critical in helping
operators drill a -mile extended-reach well to a then world-record
horizontal displacement of nearly , feet, at a true vertical
depth of approximately , feet. It effectively “steered” the
well to access the most productive zones at a final hole angle of
°. In combination with other advanced drilling and completion
technologies, MWD technology permitted operators to access this
otherwise uneconomical, remote offshore field, completing the
project in approximately  days at a cost of  million. As of
June , this once-bypassed field was producing , barrels
of oil per day.
©SPE, 1993
Duey, R. Maximizing While Kennedy, J. Fundamentals of Pressure-While-Drilling Data

Drilling. Hart’s Oil and Gas Drilling, Technology and Improve Drilling Performance.
World, 7/98. Economics. PennWell Publishing Journal of Petroleum
Co., Tulsa, OK, 1991. Technology, 2/97.
Greenberg, J. Managing Loss-of-
Control in Deepwater Drilling. Maranuk, C. Acoustic MWD Talkington, K. Remote South U.S. Department of Energy
Oil & Gas Journal, 4/1/98. Caliper Improves Accuracy with China Sea Reservoir Prompts Office of Fossil Energy
Digital-Signal Technology. Oil & Extended Reach Record. Oil & 1000 Independence Avenue, SW
Hall, G. Growth in the
Gas Journal, 3/2/98. Gas Journal, 11/10/97. Washington, DC 20585
Measurement-While-Drilling
Sector Continues. Oil & Gas Meehan, R., et al. Case Histories Elena S. Melchert
Journal, 9/16/91. Show Real-Time Information (202) 586-5095
Reduces Uncertainty. Oil & Gas elena.melchert@hq.doe.gov
Joseph, R. Special Techniques
Journal, 5/18/98.
and Equipment Reduce Trudy A. Transtrum
Problems. Oil & Gas Journal, (202) 586-7253
3/27/95. trudy.transtrum@hq.doe.gov
DRILLING
AND
Modern Drilling Bits
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bl
Dramatic advances in drill Evolving bit technology allows operators to drill wellbores
bit technology have more quickly and with less environmental impact
improved drilling perfor-
mance significantly while The diamond success story insert-bit cutting structures, over the last  years. As
cutting wastes and envi-
ronmental impacts.
F RO M U S E I N O N E
percent of total world-
wide drilling in , to an
and, although originally
developed for hard forma-
tions, polycrystalline dia-
materials technology,
hydraulics, and bit stability
continue to improve, so will
Although the choice of bit
estimated  percent in , mond compact (PDC) bits drilling performance and envi-
represents only 3 percent
diamond drill bits, which use have proved their value in ronmental protection.
of the cost of well con- cutters consisting of a thick soft- and medium-hard for-
struction, bit performance layer of tungsten carbide per- mations too. Today, PDC bits Matching the bit to the
indirectly affects up to 75 meated with bonded dia- are most applicable in areas formation
percent of total well cost.
mond particles, have been with relatively soft formations By helping operators choose
one of the success stories of or where drilling is expensive, the best bit for the job,
Faster rates of penetration
the last  years. Natural dia- such as offshore locations and computerized drill bit opti-
and greatly extended bit
monds, synthetic diamonds, remote wells. In parallel with mization systems have
life, the result of advances and diamond composites are PDC development, roller improved the way bits are
in materials technology, now routinely used within cone bits have also been being selected and used.
hydraulic efficiency, cutter improved. The These systems match an indi-
PDC Cutter Components
design, and bit stability, National Petroleum vidual formation to the most
Carbide substrate
Council estimates effective milled-tooth, tung-
now allow wells to be PDC layer
Braze joint that improvements sten carbide insert and PDC
drilled more quickly, more
PDC wafer
in drilling efficiency bit to complete the job for the
profitably, and with less PDC layer from advances such least cost per foot. They also
environmental impact. The as those in bit tech- prescribe other design para-
improvement to an opera- Carbide stub
Carbide
substrate nology have reduced meters such as hole gauge and
tor’s cost-efficiency from
Carbide cylinder
underlying drilling hydraulic requirements to
costs by about help determine optimal
these advances is striking.
Source: Petroleum Engineer International, 1993 3 percent annually cutting structure.
Today, selection of the
appropriate bit has
become critical both in ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
establishing the overall
Increased rates of penetration Reduced power use and resultant emissions
economics of field devel-
opment and in minimizing Fewer drilling trips due to greater bit life Less drilling waste
the environmental impacts
Reduced power consumption Reduced equipment mobilization and fewer rigs
of drilling.
Improved drilling efficiency and hence viability Less noise pollution
of marginal resources
Better wellbore control and less formation
damage
METRICS
0% 100%
Increases in diamond bit drilling
1978 1%
In 1978, approximately 1 percent of the total footage drilled worldwide was drilled
with diamond bits; in 1985, it was approximately 10 percent; by 1997, that figure
was an estimated 25 percent. Also, between 1988 and 1994, advances in PDC 1985 10%
technology increased the average footage drilled by over 260 percent, from
approximately 1,600 feet to 4,200 feet per PDC bit.
1997 25%
Source: Rappold, Oil & Gas Journal, 8/14/95
CASE STUDIES
Success in the Field Switching to new drill bits saves time and money
Using a specialized bit optimization system, Anadarko Petroleum
has demonstrated significant efficiency improvements. For exam-
ple, drilling time was reduced by  to  days in Algeria, with sav-
Iran Pakistan ings of , to ,; and a Mississippi project saved 
Persian
Gulf days and ,. Ultimately, impacts on the environment were
Gulf of
U.A.E. Oman appreciably lessened.
Saudi
Arabia
Petroleum Development Oman found that rates of penetration
Oman
Arabian Sea
India dropped from  feet per hour to under  feet per hour when drills
using tungsten carbide inserts hit the hard Khuff Formation.
Yemen
Switching to a new generation PDC bit with carbide-supported edge
cutters resulted in a new rate of . feet per hour in the Khuff. The
Gulf of Aden
entire section was drilled in one run, at half the cost of the same sec-
tion in a similar well. Another well drilled in the comparable
Somalia Zauliayah field resulted in a rate of  feet per hour at a cost of 
per foot, nearly half the cost of drilling a comparable well in the area
with an earlier-generation bit.
Indian Ocean
When Chevron switched to new generation polycrystalline bits at its
Arrowhead Greyburg field in New Mexico, the rate of penetration
increased more than  percent. Chevron had been experiencing
problems using -cone bits and thermally stabilized diamond bits.
Switching to PDC bits with curved cutters significantly increased
drilling efficiency, while reducing environmental impacts.

Bit Design Key to Improved Locke, S. Advances Reduce Total Rappold, K. Industry Pushes Use
Performance. Journal of Drilling Costs. The American Oil of PDC Bits to Speed Drilling,
Petroleum Technology, 12/96. & Gas Reporter, 7/98. Cut Costs. Oil & Gas Journal,
8/14/95.
Diamond Enhanced Inserts Mensa-Wilmot, G. New PDC
Improve Roller-Cone Bits. Cutters Improve Drilling The Role of Bit Performance in U.S. Department of Energy
Journal of Petroleum Efficiency. Oil & Gas Journal, Drilling Efficiency. Supplement Office of Fossil Energy
Technology, 2/97. 10/27/97. to Petroleum Engineer 1000 Independence Avenue, SW
International. Washington, DC 20585
Drill-Bit Solutions for New Polycrystalline-Diamond-
Operational Constraints. Journal Compact-Bit Technology Proves Elena S. Melchert
of Petroleum Technology, 12/97. Cost-Effective. Journal of (202) 586-5095
Petroleum Technology, 12/97. elena.melchert@hq.doe.gov
Lee, M. New Bits Drill Faster,
Cheaper, Better. The American Trudy A. Transtrum
Oil & Gas Reporter, 4/98. (202) 586-7253
DRILLING
AND
Multilateral Drilling
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bm
Multilateral drilling New lateral drilling developments provide dramatic returns
creates an interconnected for operators, with less waste, smaller footprints, and
network of separate, pres-
increased site protection
sure-isolated, and reentry-
accessible horizontal or From horizontal to permit wells to branch out Multilateral drilling is of
multilateral branching multilaterally, in certain cases greatest value in reservoirs
high-angle wellbores sur-
wellbores saving both time and money that:
rounding a single major
wellbore, enabling
drainage of multiple target
H O R I Z O N TA L D R I L L -
ing provoked a surge
of interest in the  as a
compared to horizontal
drilling. In many cases, such
as deep reservoir production,
• Have small or isolated
accumulations in
multiple zones
zones. In many cases, this way to contact more oil it is more efficient to create a
approach can be more reserves, penetrating a greater connected network than to • Accumulate oil above the
cross-section of the oil-bear- drill multiple individual hori- highest existing perforations
effective than simple hori-
ing rock with a single well- zontal wellbores. • Have pay zones that are
zontal drilling in increas-
bore and intersecting repeat- arranged in lens-shaped
ing productivity and
edly the fractures that carry pockets
enlarging recoverable oil to a producing well.
reserves. Often multi- Today, declining production, • Are strongly directional
lateral drilling can restore flat prices, and heightened • Contain distinct sets of
economic life to an aging
environmental awareness natural fractures
have led the exploration and
field. It also reduces • Are vertically segregated,
production industry to devel-
drilling and waste disposal with low transmissibility
op advanced drilling and
costs. Today, in a wide completion technologies that
variety of drilling environ-
ments, both onshore and
offshore, from the Middle ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
East to the North Sea
Improved production per platform Fewer drilling sites and footprints
and from the North Slope
to the Austin Chalk, multi- Increased productivity per well and greater ulti- Less drilling fluids and cuttings
lateral completions are mate recovery efficiency
Protection of sensitive habitats and wildlife
providing dramatic returns
New life for marginally economic fields in
for operators. danger of abandonment
Reduced drilling and waste disposal costs
Reduced field development costs
Improved reservoir drainage and management
More efficient use of platform, facility, and crew

CASE STUDIES

Iran Pakistan
Persian
Gulf Gulf of
“[With advanced re-entry
Norway U.A.E. Oman
multilateral technology] we
Saudi
are seeing the potential to
Arabia
reduce by half the costs Arabian Sea
Oman India
associated with subsea
developments. In some Yemen
North
Sea cases, this will make what
Denmark
were previously marginal or Gulf of Aden
non-economic discoveries
economical.”
ALI DANESHY Somalia

Vice President, Halliburton
United
Kingdom Indian Ocean
Netherlands
Germany
Norsk demonstrates the future New life for old wells:

of offshore drilling pentalateral drilling in the Middle East
A highly successful offshore project in Norway is showcasing the Mounting evidence demonstrates that multilaterial drilling can
reduced environmental impacts and increased economic benefits of bring new life to old wells. In the Arabian Gulf recently, a signifi-
multilateral completions. In March , Norsk Hydro a.s. and cant reduction in production that may have spelled well closure in
Halliburton Energy Services drilled the world’s first subsea multilat- the past was instead the stimulus to drill five lateral branches into
eral with reentry access in Norsk’s Troll field. The companies esti- new pay zones. The lateral wells were drilled in only  days,
mate that the economic benefits will be  percent greater than reaching some , feet of new producing formations. Since the
those from fixed platforms. By reducing the systems required to new zones consisted of relatively soft limestone layers separated
access the subsea reservoir, the project cuts both costs and impact from each other by dolomites, drilling presented few problems.
on the environment and leads the way for subsequent offshore Dramatically increased production rates covered costs in just six
drilling operations. days. In all, production increased . times as a result of the mul-
tilateral completions.
Boone, L., F. Clausen, T. Halliburton Energy Services.

Birmingham, and N. Schappert. Multilateral Technology (MLT)
Horizontal Branches Reach Out Overview.
to Drain Reserves: Slim Hole
Taylor, R.W., and R. Russell.
Laterals Put New Twist on Field
Multilateral Technologies U.S. Department of Energy
Development. The American Oil
Increase Operational Efficiencies Office of Fossil Energy
& Gas Reporter, 7/98.
in Middle East. Oil & Gas 1000 Independence Avenue, SW
DeLuca, M. Multilateral Journal, 3/16/98. Washington, DC 20585
Completions on the Verge of
Mainstream. Offshore Magazine, Elena S. Melchert
1/97. (202) 586-5095
Halliburton Energy Services.
First Subsea Multilateral with Trudy A. Transtrum
Re-Entry Access. Press Release, (202) 586-7253
7/21/97. trudy.transtrum@hq.doe.gov
DRILLING
TECHNOLOGY Locations: Deepwater—Gulf of Mexico, West Africa, North Sea, Brazil, others
AND
Offshore Drilling
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bn
Recent exploration success- Technology advances in dynamic positioning expand
es in deepwater plays in the opportunities for deepwater drilling with reduced
Gulf of Mexico are of crucial
environmental impact
importance in providing a
vital new domestic Deepwater opportunities Production from deepwater dynamic positioning systems,
resource. Technological
advances are increasing
T HE GULF OF MEXICO ’ S
deepwater reservoirs
have become America’s new
wells is increasing too. In
, for example, less than 
percent of the Gulf’s total oil
in combination with
improved onboard motion
compensation systems, are
operators’ ability to take
frontier for oil and gas explo- production was from deepwater expanding the range of water
advantage of these finds, ration. Production potential wells. By , over  percent depths and environmental
while reducing the dangers from proved and unproved of the Gulf’s oil production conditions within which
and uncertainty inherent in reserves in deepwater areas is came from deepwater wells. drilling operations can be
deepwater operations. estimated to be roughly . Natural gas production from safely conducted.
Without such progress,
billion barrels of oil and . deepwater areas in the Gulf
trillion cubic feet of natural has also increased—from less Azimuthing thruster units,
much of the Gulf’s
gas. Consequently, drilling in than  percent of total pro- often retractable so as to enable
resources may remain the Gulf ’s Outer Continental duction in —to nearly  shallow water maneuvers, are
undeveloped. A major con- Shelf has increased greatly percent in . the backbone of the dynamic
cern for operators is the over the last 10 years. Today, positioning system. Ship-based
safety of deepwater deepwater drilling from per- Improving station keeping computers and satellite-linked
exploratory operations,
manent structures and wild- Dynamic positioning systems navigation units control the
cat wells is at an all-time compensate for the effects of vessel’s rudder, propellers, and
especially as the industry
high. In October , a wind, waves, and current, thrusters using input from
moves toward depths of record  temporary and enabling mobile offshore various monitoring systems,
10,000 feet. To ensure permanent deepwater rigs drilling units to hold position such as gyrocompass wind
stability and efficiency at were drilling in water depths over the borehole, maintain- sensors, real-time differential
such depths, advanced greater than , feet, as ing within operational limits global positioning systems,
dynamic positioning
compared to only nine in lateral loads on the drill stem micro-wave positioning
. and marine riser. Improved systems, underwater sonar
technology is now being
used. This includes thruster
units and sophisticated
computer and navigation ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
systems to hold a new Minimized positioning and transit times for Less disruption to seafloor ecosystem
generation of drillships, deepwater exploration
Reduced environmental impacts due to
floating production, stor-
Reduced operating costs in deepwater explo- increased operational stability
age, and offloading sys-
ration operations
tems, and survey vessels on Enhanced deepwater operational safety
location without anchors or Improved access to deepwater and ultra-deep-
mooring lines. water resources that might otherwise have
remained undeveloped
beacons, and hydro-acoustic demand for dynamically Cost-effectiveness time of setting and remov-
beacons. If the wind or tide positioned vessels. The When permanent or ing mooring lines. Such
swell moves the ship from its harsher environments of disconnectable moorings flexibility, vital during hurri-
desired station, guided deeper offshore plays has become excessively difficult cane season, may ultimately
thrusters can automatically accelerated demand for or expensive, or when low- reduce operating costs.
hold the vessel’s orientation dynamically positioned cost fuel is available,
and position. They can also drillships, semisubmersible dynamically positioned Safety
move it to a new position in rigs, seismic survey vessels, systems may be highly cost- The precise positioning
the event of extreme weather. floating production, storage, effective. Given today’s afforded by these systems
and offloading systems, technology, it would be contributes significantly to
A new equipment market pipelayers, shuttle tankers, practically impossible to both environmental protec-
The trend toward long- and standby support vessels. conduct ultra-deepwater tion and worker safety dur-
term, ultra-deepwater The benefits of dynamic exploratory operations ing offshore operations. The
exploratory operations has positioning include: without dynamic position- safety of operations involv-
substantially increased ing technology. ing diving support vessels,
deepwater drillships, or
Operational flexibility shuttle tankers, for instance,
These systems allow vessels is often enhanced by the
to move readily from one degree of operational
location to another during precision provided by
exploratory operations, dynamic positioning systems.
eliminating the cost and
METRICS
©SPE, 1993
Steady drilling from dynamic positioning
The forces of wind, waves, and ocean currents cause exploration Today’s advanced dynamic positioning technology enables drill-
and drilling support vessels to sway, yaw, and move off course. ships to maintain station with maximum excursion levels below 1%
To counter this, dynamic positioning technology stabilizes deep- of total water depth. At a water depth of 5,000 feet, for example,
water site equipment, allowing exploratory operations in waters these advanced systems are able to keep a 200-yard-long, 30-story-
too deep for conventional mooring systems. high drillship within 50 feet of station.
Deepwater Drilling Driving DiSouza, Delepine, and Cordy. Harding, B. The Deepwater
Progress of Azimuthing An Approach to the Design and Drilling Rig Explosion - 1996-
Thrusters. Offshore Magazine, Selection of a Cost-Effective 1998: New Designs and
4/98. Floating Production Storage and Equipment for Water Depths
Offloading System. Offshore Over 3,500 ft. Offshore
Deepwater Surge Galvanizes DP
Technology Conference (OTC) Magazine, 7/1/98. U.S. Department of Energy
Power Sector. Offshore
7443, 1994. Office of Fossil Energy
Magazine, 1/97. Herold, A. Fourth Generation DP
Duhen, de Bonnafos, and System Set Up on Pipelay Unit-
DeLuca, M. Dynamic Positioning Washington, DC 20585
Rietveldt. A New Generation DP Accuracy of Deepwater Pipeline
Versus Mooring: Debate
Drillship for 10,000 ft Water Touchdown Product of Elena S. Melchert
Continues as Technology
Depths. Drilling Contractor, 9/98. Sophisticated Routing (202) 586-5095
Evolves. Offshore Magazine,
Trajectories. Offshore Magazine, elena.melchert@hq.doe.gov
10/98. Dynamic Positioning, Compact
3/95.
Power System Create New Life Trudy A. Transtrum
for Semisubmersible. Oil & Gas Portable Dynamic Positioning (202) 586-7253
Journal, 10/5/98. Systems Fill Special Need. trudy.transtrum@hq.doe.gov
Offshore Magazine, 7/97.
DRILLING
AND
Pneumatic Drilling
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bo
Pneumatic drilling is an Unlike conventional mud-based drilling, air drilling
underbalanced drilling significantly reduces or eliminates drilling fluid additives
technique in which bore-
and prevents formation damage
holes are drilled using air
or other gases as the cir- Protecting low-pressure a noncondensable gas in the open-hole completions, and
culating agent. In certain formations and maximizing circulating fluid system, in fluid-sensitive formations.
production underbalanced pneumatic It is an important tool in
cases this air drilling tech-
nique offers the promise
of mudless drilling. By
U NDERBALANCED
drilling offers signifi-
cant advantages over conven-
drilling can prevent difficul-
ties commonly encountered
when reservoir pressures are
drilling horizontal wells,
which must expose a large
amount of reservoir face to
using nitrogen, air, or tional systems in low-pres- lower than the hydrostatic be productive, and have
natural gas in place of sure or pressure-depleted for- pressure exerted by tradition- minimum damage from flu-
oil- or water-based muds, mations. Pressure overbal- al water-based drilling fluids. ids invasion. As horizontal
producers can both elimi-
ances in conventional Depending on the environ- drilling increases in popular-
drilling can cause significant ment, gas may be used alone ity, underbalanced pneumat-
nate drilling fluids that
fluid filtrate invasion, and or with water and additives. ic drilling will become more
need disposal and ensure
lost circulation in the forma- When drilling fluid is need- widespread, because it can
that drill cuttings are not tion. Expensive completions, ed for well control, gas is penetrate the reservoir with-
tainted by chemicals or decreased productivity, and mixed with lightweight out damaging the formation
oil. Although it is suitable high mud and mud-removal drilling fluids. or its productive capacity.
only for certain formation
costs can then plague drilling
operations, but these can be In general, pneumatic Air drilling techniques to suit
types and lithologies and
avoided by using underbal- drilling is used in mature Air dust drilling is a dry
can create potentially
anced conditions. By lower- fields and formations with technique that relies on the
explosive downhole condi- ing downhole pressure using low downhole pressures, in annular velocity of air to
tions—and is not therefore
likely to become wide-
spread—this technique is ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
a very attractive environ- Substantially less fluid and waste requiring Greatly reduced drilling fluids and chemical-
mental prospect, offering disposal tainted cuttings
significant operational
Increased rates of penetration and longer Decreased power consumption and emissions
benefits.
drill bit life
Better wellbore control and less damage to
Indication and evaluation of productive zones formations
and more effective geosteering of the well by
monitoring flow of produced fluids Fewer workover and stimulation operations
needed
Potential elimination of waste pits gives access
to restricted areas Potential for smaller drilling footprints and less
impact on habitats, wildlife, and cultural
resources
CASE STUDIES
transport cuttings. It is A new waste management Success in the Field

typically employed in technology enables opera-
drilling dry formations, or tors to eliminate the earth-
when any water influx is en waste pits used to catch
low enough to be adsorbed effluent created while
by the air stream. If exces- drilling with an air- or air-
sive water influx precludes mist system. Liquids and
its use, air-mist drilling is solids in the effluent are
employed instead, using an separated and treated, and
air-injected mud that gases are exhausted. By
returns to the surface as eliminating the environ-
mist. Sometimes foam- mental risks associated with
drilling is required, using a pits, drillers can operate in
stable mixture of water and otherwise restricted areas,
compressed air with deter- such as State parks and ■ Major areas of oil
and gas potential
gent and chemicals. When within city limits. Initial
the water influx is too great field tests indicate that this
to be removed through technology can handle con-
mist or foam, aerated mud tinuous liquid volumes of
Accessing new supplies in the Carthage field
drilling, a technique in  barrels per hour and
Selected as the most viable technique to prevent damage to an
which air is injected into solid volumes of  barrels
extremely low-pressure reservoir, pneumatic drilling made history
viscosified fluid or mud in per hour.
as the first air-drilled horizontal well in the Carthage field in
order to reduce the weight
Texas. Air drilling successfully increased gas recovery from
of the fluid column on the
depleted zones without wellbore skin damage, which would have
formation, combines the
restricted the reservoir’s productive flow. Drilled in December
best properties of conven-
, the Pirkle  well had by the end of April  produced
tional and air drilling to
 million cubic feet of gas at a rate of . million cubic feet per
provide an effective solution.
day. The well was drilled with compressed nitrogen into the
Cretaceous Frost “A” zone at , feet true vertical depth; it
produces through a ,-foot lateral well with bottomhole
pressure of  psi. The operation successfully met the economic
criteria of producer OXY USA Inc., which had determined that
the well’s production rate would have to at least double that of a
standard vertical well to be economically viable.
Baker, L. Underbalanced Drilling Downey, R. On-Site Generated Rusnak, J. Apparatus Eliminates

with Air Offers Many Pluses. Oil Nitrogen Cuts Costs of Earthen Pits in Air-Drilling
& Gas Journal, 6/26/95. Underbalanced Drilling. Oil & Operations. Oil & Gas Journal,
Gas Journal, 2/24/97. 8/17/98.
Bennion, D. Underbalanced
Operations Offer Pluses and Elrod, J. Horizontal Air Drilling Teichrob, R. Low-Pressure U.S. Department of Energy
Minuses. Oil & Gas Journal, Increases Gas Recovery in Reservoir Drilled with Air/N2 in Office of Fossil Energy
1/1/96. Depleted Zone. Oil & Gas a Closed System. Oil & Gas 1000 Independence Avenue, SW
Journal, 6/30/97. Journal, 3/21/94. Washington, DC 20585
Carden, R. Air Drilling Has Some
Pluses for Horizontal Wells. Oil LeBlanc, L. Underbalanced Elena S. Melchert
& Gas Journal, 4/8/91. Drilling Solution for Wells with (202) 586-5095
Long Exposure. Offshore elena.melchert@hq.doe.gov
A Closed Circulating System for
Magazine, 8/1/95.
Air Drilling. Journal of Trudy A. Transtrum
Petroleum Technology, 2/98. (202) 586-7253
DRILLING
AND
Slimhole Drilling
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bp
Improved slimhole drilling Technology advances in less invasive slimhole drilling
technology brings the twin increasingly valuable in exploration and production
advantages of environ-
mental protection and eco- Narrow boreholes prove dispelled these concerns, testing, combined with other
nomical results to oil and highly effective making slimhole an increas- technologies such as continu-
gas exploration and pro-
duction. (For example, a
P OTENTIALLY APPLICABLE
to more than  percent
of all wells drilled, slimhole
ingly attractive option for
reservoir development. Today,
slimhole drilling is employed
ous coring, yields valuable
information for increasing
success rates in exploration.
conventional well drilled
drilling holds promise for throughout the lower-
with a 12.25-inch bit and a improving the efficiency and States and the Gulf of In the production arena,
5-inch drill pipe becomes a costs of both exploration and Mexico, especially in the improved slimhole drilling
slimhole when using a production. Although the Austin Chalk fields of South offers a viable means of recov-
4-inch bit and a 3.7-inch
technique was first used in Texas. Globally, slimhole ering additional reserves from
the oil and gas industry in the drilling has been used in a existing reservoirs, including
drill pipe.) Slimhole rigs
, its acceptance has been wide range of onshore and economically marginal fields.
are defined as wells in
hampered until recently by offshore settings. Resources in pay zones
which at least 90 percent concerns that smaller bore- bypassed in the original field
of the hole has been holes would limit stimulation As an exploration tool, slim- development can be cost-
drilled with a bit six inches opportunities, production hole drilling for stratigraphic effectively accessed through
or less in diameter.
rates, and multiple completions. testing provides geologists the existing wellbores, thereby
Advances in technology, with a clearer picture of the extending the productive life
Slimhole rigs not only
coupled with a growing local geography, refining seis- of the field.
boast a far smaller foot-
record of success, have mic interpretation. Such
print and less waste gen-
eration than conventional
operations, they can also ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
reduce operating costs by
Smaller drilling crews and less drilling time A slimhole rig occupies far less space than a
up to 50 percent. The tech-
mean up to a 50 percent reduction in costs conventional rig—the entire footprint including
nique is proving a low- site access can be up to 75 percent smaller
cost, efficient tool with Slimhole drilling is critical for adding millions of
barrels of oil to the Nation’s reserves The rig requires far less drilling fluid and pro-
which to explore new
duces far fewer cuttings for disposal
regions, tap undepleted Slimhole is feasible in a wide range of opera-
zones in maturing fields, tions and capable of reducing exploration and Reduced volume and weight of equipment
and test deeper zones in development costs around the United States favors use in sensitive environments, such as
existing fields. rainforests and wetlands, particularly in
helicopter-supported campaigns
Better wellbore control

CASE STUDIES
Success in the Field At the Austin Chalk fields

More than  horizontal slimhole well reentries have been drilled
by Slim Dril International, demonstrating a successful way to dis-
cover and tap otherwise inaccessible reserves of domestic oil. The
company also used slimhole to deepen a conventional well to a
depth of , feet, using mud motors to test a producing field.
This advancing technology is extending the life of wells both at
Austin Chalk in south Texas and in the Gulf of Mexico, and could
potentially add millions of barrels of oil to our Nation’s reserves.
METRICS
■ Major areas of oil A Head-to-Head Comparison

and gas potential
At a drilling depth of 14,000 feet, here is how a slimhole rig with a 4-inch dia-
meter performs versus a conventional drilling operation with an 8.5-inch diameter:
In Wattenberg field
An eight-well field test conducted by HS Resources Inc. in Fuel consumption 75% less
 in the Denver-Julesburg Basin’s Wattenberg field successfully • Installed power 1,350 vs. 4,000 kilowatts
demonstrated that slimhole lateral wells could be drilled from • Mud-pump power 330 vs. 3,200 horsepower
inside an existing .-inch cased producing vertical well. These Drillsite area 75% smaller
lateral wells with .- and .-inch liners are considered the
Mud cost 80% less
first lateral cementing operations of this size liner in the Rocky
• Active mud volumes 50 vs. 1,500 barrels
Mountain region and the first reported lateral drilling in
Colorado using coiled tubing. The project’s success led HS Rig weight 412,000 vs. 3,400,000 pounds
Resources to begin additional 150 vs. 500 helicopter lifts
slimhole drilling in  and 12 vs. 65 Hercules loads
is significant for several reasons. 18 vs. 55 truckloads
Standard First, this approach allows pro-
Rig Drillstring weight: 37 vs. 150 tons
duction of additional reserves
Drilling crew size Staff of 3 or 4 vs. 6
with minimal impact on an
active agricultural area. Second, Camp size Staff of 30 vs. 80
it reduces operating costs by Bottom Line:
Slimhole commingling production from Potential well cost-savings of 50%
Rig both vertical and lateral Source: Nabors Industries .
wellbores.
Boone, Clausen, Birmingham, Deliac, Messines, and Thierree. Millheim, Prohaska, and
and Schappert. Horizontal Mining Technique Finds Thompson. Slim Hole Drilling—
Branches Reach Out to Drain Application in Oil Exploration. Past, Present, Future. SPE 30151,
Reserves: Slim Hole Laterals Oil & Gas Journal, 6/5/91. 1995.
Put New Twist on Field
Department of Energy. An U.S. Department of Energy
Development. The American Oil
Assessment of the Oil Resource Office of Fossil Energy
& Gas Reporter, 7/98.
Base of the United States, 1992. 1000 Independence Avenue, SW
Dachary, J. and R. Vighetto. Slim Washington, DC 20585
Gordon, T. The Skinny on
Hole Drilling Proven in Remote
Slimholes. Oil and Gas Investor, Elena S. Melchert
Exploration Project. Oil & Gas
1/93. (202) 586-5095
Journal, 6/22/92.
Trudy A. Transtrum
(202) 586-7253
DRILLING
TECHNOLOGY Locations: Worldwide, deepwater
AND
Synthetic Drilling Muds
COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bq
Drilling fluids are essential New synthetic drilling muds combine the performance
to carry cuttings to the of oil-based muds with the easier, safer disposal of
surface, maintain pressure
water-based muds
balance and stability in the
borehole, lubricate and Conventional versus However, they are often not imize drilling problems,
new muds technically feasible or cost- OBMs cannot be discharged
clear the drillstring and bit,
and prevent the influx of
other fluids. Today’s
N E A R LY A L L W E L L S
less than , feet
and  percent of deeper wells
effective in complex drilling
situations. As such, oil-based
muds (OBMs) are often the
on-site. At remote offshore
sites, operators must incur the
expense, logistical problems,
advanced offshore drilling are drilled with water-based drilling fluids of choice in and environmental risks of
practices include the use of muds (WBMs), making them deep, extended-reach, high- shipping OBM wastes back
synthetic-based muds the most commonly used angle, high-temperature, and to shore for disposal.
(SBMs), which combine the
muds both onshore and off- other special drilling environ-
shore. With a  percent ments, greatly outperforming The development of syn-
higher performance of oil-
water base, WBMs and asso- WBMs. But their diesel or thetic-based muds (SBMs)
based muds (OBMs) and
ciated cuttings can typically mineral oil base means that was driven by industry’s need
the lower toxicity of water- be discharged on-site. although they effectively min- for a drilling fluid with lower
based muds (WBMs). SBMs
are a high-performance,
environmentally friendly
Improved drilling speeds, lower operating costs, Lower concentration of inherent contaminants,
choice for complex offshore
and shorter completion times (versus WBMs) such as complex hydrocarbons (versus OBMs)
drilling environments.
Management of fluids and Reduced downtime from common drilling Safe discharge of drill cuttings (versus OBMs)
cutting wastes is a signifi- problems (versus WBMs)
Less waste than WBMs, as SBMs are reusable
cant responsibility for the
Minimal to no waste hauling and disposal costs
industry, and in remote Faster drilling, so reduced power use and air
(versus OBMs)
offshore areas can entail emissions (versus WBMs)
significant expense. Reduced drilling costs as SBMs can be
reconditioned and revised (versus WBMs) Smaller footprint, as SBMs facilitate extended-
Compared with OBMs, drill
reach and horizontal wells (versus WBMs)
cuttings from SBMs can be Increased access to resources by high-angle,
safely discharged in many extended-reach, and horizontal wells (versus Increased worker health and safety—volume
WBMs) and toxicity of irritating vapors lower than OBMs
offshore areas, significantly
reducing disposal costs and Reduced air pollution because SBMs are not
environmental impacts. transported to shore for disposal (versus
OBMs)
Reduced landfill usage
Increased wellbore control (versus WBMs)

CASE STUDIES
disposal costs than OBMs performance parameters. Success in the Field

and higher levels of perfor- Current synthetic fluids fall
mance than WBMs. In gen- into several groups: polyal-
eral, SBM performance is phaolefins (PAOs), linear
comparable to that of alpha olefins (LAOs), inter- United States
OBMs, and in some cases nal olefins (IOs), fatty acid
superior. They are manufac- esters, and others.
tured by chemical synthesis
from basic building blocks Comparing costs
Gulf of
of relatively pure materials, Although more expensive Mexico
forming highly uniform on a per-barrel basis, SBMs
products. By varying the can reduce overall drilling
components and manufac- expenses. When measured
turing conditions, different against WBMs, SBMs can Cuba
SBMs can be created that shorten drilling time. Com-
exhibit varying rheological pared with OBMs, SBMs offer
properties and environmental lower disposal costs.
Mexico
METRICS
Advantages of synthetic muds as demonstrated

Proof in the Gulf
by Marathon Oil in the Gulf of Mexico A set of Gulf of Mexico wells with similar characteristics were the
Mud Cost Total Well scene for a comparative study of the relative merits of SBMs and
Footage Footage Cost in $ per Cost in Total WBMs. Marathon Oil drilled five wells with WBMs and three
Drilled per Day $ Millions Foot $ Millions Days
with SBMs, and found that SBM performs with greater overall
WBM Wells efficiency. For example, the SBM wells averaged  feet per day
17,981 138 1.3 74 11.6 163
16,928 63 2.5 150 18.3 326 and  days per well, compared to  feet per day and  days
17,540 82 – – 9.6 214 per WBM well. Despite higher per-barrel costs, SBM resulted in
17,142 101 1.6 90.4 12.7 197
17,381 215 – – 10.1 77 lower total drilling mud costs and downtime costs. Overall, total
drilling and completion costs for the SBM wells were in the range
SBM Wells
16,842 301 0.8 48 5.0 50
of . to . million per well, compared with . to .
18,122 275 1.7 94 7.8 75 million for WBM wells. Combined with significant increases in
17,250 431 0.8 45 3.7 33
productivity and decreased environmental impacts, these results
©SPE 29737, 1995 proved that SBM was the better performer for these wells.
Argonne National Laboratory. Furlow, W. Despite Limits, Veil, J., C. Burke, and D. Moses.
Removing Regulatory Barriers to Synthetic Fluids Still Best Bet for Synthetic-Based Drilling Fluids
Allow Wider Use of Innovative Deepwater. Offshore Magazine, Have Many Environmental
Drilling Fluids, 1/97. 1/98. Pluses. Oil & Gas Journal,
11/27/95.
Burke, C., and J. Veil. Synthetic- Furlow, W., New Cuttings U.S. Department of Energy
Based Mud Can Improve Drilling Treatment Taking on Recovery, Wood, T., and B. Billon. Office of Fossil Energy
Efficiency Without Polluting. Oil Environment Challenges— Synthetics Reduce Trouble Time 1000 Independence Avenue, SW
& Gas Journal, 3/4/96. Recovering Costly Synthetic in Ultra-Deepwater Borehole. Washington, DC 20585
Fluids. Offshore Magazine, 7/98. Offshore Magazine, 3/98.
Candler, Rushing, and Elena S. Melchert
Leuterman. Synthetic- Legendre Zevallos, M., et al. (202) 586-5095
Based Mud Systems Offer Synthetic-Based Fluids Enhance elena.melchert@hq.doe.gov
Environmental Benefits Over Environmental and Drilling
Traditional Mud Systems. SPE Performance in Deepwater Trudy A. Transtrum
25993, 1993. Locations. SPE 35329, 1996. (202) 586-7253

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PDHengineer.

Advanced Oil and Gas Drilling and

To receive credit for this course

If you have any questions, please call us toll-free at 877 500-7145.

Source: American Oil & Gas Reporter, September 1998

Fewer Wells Mean Less Waste

vistas in Louisiana wetlands, California

operations, the benefits from this increased

these wells. This was the case in the remote

recently used advanced horizontal drilling

complete a 5-mile-long extended-reach well.

drilling technology has spurred a boom in

OIL AND GAS TECHNOLOGY 37

Mud Disposal Reduction in Slimhole Coiled Tubing

widespread use for tapping into reserves in Reservoir

© SPE 27156, 1994

Photo: Haliburton Energy Serivces

Improved drill bits

• Reduced fuel use and emissions regain control.

• Less time on site 40 12,000 ft

Source: Hart’s Oil & Gas World, November 1996

OIL AND GAS TECHNOLOGY 39

Annular injection of cuttings

that significantly enhance worker health formations.

• Lower waste volumes Intermediate casing

• Protection of sensitive environments Production hole

Productivity Gains from CO2-Sand Fracturing A Major Contribution

New offshore platforms and wells feature

OIL AND GAS TECHNOLOGY 41

vaporizes, leaving behind a CO2-sand fracturing treat- Success in the Field

SOURCES AND ADDITIONAL READING CONTACT

ing costs significantly. For

Better wellbore control

ate data feedback on bot-

fatigue, maintenance of bit

ty. New materials like 160

and advanced metal-free Med Land Coiled Tubing

composites have improved Workover Drilling Drilling 100

the reliability, performance, Rig Rig Unit

corrosion-resistance, weight, Diesel m3/month 35 160 25

and cost-effectiveness of Gas CO2 3,293 15,055 2,122

ing offers an estimated reel- HC (Gas) 1.8 8.4 1.1

SOURCES AND ADDITIONAL READING CONTACT

Increased well productivity and ultimate recovery

Success in the Field Worldwide Horizontal Wells

■ Major areas of oil 500

Black Warrior Basin was converted to gas storage by the Mississippi

SOURCES AND ADDITIONAL READING CONTACT

Success in the Field

■ Major areas of oil

Increased profits from the once

SOURCES AND ADDITIONAL READING CONTACT

and DOE-sponsored interpretive software appli-

Extended reach in the South China Sea

SOURCES AND ADDITIONAL READING CONTACT

Duey, R. Maximizing While Kennedy, J. Fundamentals of Pressure-While-Drilling Data

Source: Rappold, Oil & Gas Journal, 8/14/95

SOURCES AND ADDITIONAL READING CONTACT

Reduced drilling and waste disposal costs

Reduced field development costs

Improved reservoir drainage and management

More efficient use of platform, facility, and crew

Success in the Field