The Summer season continues to pass at a seemingly accelerated rate, and the Tallys team is hard at work providing customer training, implementing minor software patches and building new features for our next release.

Here is a summary of the week’s blog posts and some NWSP ‘news’:

• BC day long weekend : Monday

NWSP and the rest of British Columbia celebrated BC day this past Monday and many of us had the day off to get out and enjoy the abundance of sunshine and record breaking heat BC has seen this summer.. We were not alone however, as many other provinces also enjoyed a stat holiday. The first Monday in August is also New Brunswick Day, a civic holiday in Nunavut, Natal Day for Nova Scotians, and John Galt Day in Ontario.

• Running Casing Offshore

click here ^

In this video, an offshore crew lead by driller Chris Davis maneuvers 11-7/8 inch casing down hole.

• Oil and Gas Jobs in an independent Scotland

click here ^

Penn Energy recently conducted a 6 question survey of 199 oil and gas workers in Scotland. The purpose of the poll was to gather their predictions for the impact that Scottish independence may have on oil and gas jobs and investment in the region. The Survey results, which we link to are of mixed optimism.

• Tenaris Coiled Tubing and Reel Revolution’s Coiled Tubing Drilling Rig, Both with API certification.

click here ^

Tenaris Coiled Tubing and a Reel Revolution Rig. Both API licensed and ready to go. A continuous string eliminates the need for connections every 30–40 ft.

• Training and Development

As a part of our annual Support and Maintenance contract, NWSP provides up to 3 training online training sessions to accommodate growing operations and also staff turnover each year. This week’s customer development and training sessions have helped us to identify subtle tweaks to our solution which will improve the user experience. We value industry feedback a great deal, and are constantly working to make Tallys better.

• Blackberry Jam!

The building that our offices occupy has a garden out back, and we have been encouraged by our awesome landlords to pick and enjoy the summer crop of Blackberries which is healthy and abundant to say the least. Our company president and his better half were motivated and kind enough to pick three large buckets full and go through the time consuming process of jam making. Everyone here was given a Jar of some of the best Blackberry jam I personally have ever tasted.
 

Thanks Simon & Tanya!

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In 2011, our partners at Tenaris became the first steel tubing manufacturer to receive certification from the American Petrolium Institute or API for coiled OCTG. API’s stamp of approval is a promise of quality and reliability that we have come to expect from this global leader in the industry.

A continuous string eliminates tool joints and connections every 30 – 40 ft. This has made it possible for Tenaris to achieve a zero non-conformity standard.

The below animation by Reel Revolution shows the concept at work on the first coiled tubing drilling rig design, unveiled in 2008.

[youtube http://www.youtube.com/watch?v=ku8xvUhFUak?feature=player_detailpage&w=640&h=360]

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Penn Energy recently conducted a 6 question survey of 199 oil and gas workers in Scotland. The purpose of the poll was to gather their predictions for the impact that Scottish independence may have on oil and gas jobs and investment in the region.

On September 18th of next year, a referendum will be held to determine whether or not Scotland will be made independent. The forecast provided by the survey which we link to below is one of mixed optimism, with 54% looking forward to an increase in job opportunities, but only 27% forecasting increased oil and gas investment.

Click here to see the Survey ——> Survey: Oil and Gas in an independent Scottland

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It is neat to see the OCTG that we count, track and control in Tallys out in the world under practical use.

In this video, posted by the folks at drilling ahead, an offshore team shows us how to run 11-7/8 inch drill pipe casing. It looks like tough work for even tougher people. This Ocean Titan crew, lead by driller Chris Davis, has this important process mastered down to a science. Watch as they maneuver this very heavy OCTG into that hole.

[youtube http://www.youtube.com/watch?v=L8sbsYTvP1E?feature=player_embedded&w=640&h=360]

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Here is a countdown, along with Rigzone staff write-ups on the industry plays which have sent these locals to the top of the global ranking for oil and gas cities. Included in the list are some you would probably expect, as well as others which may come as a surprise.

5) Jakarta

Indonesia is located where the Australian, Pacific and Southeast Asian tectonic plates meet. Most major petroleum discoveries in Indonesia have been associated with Tertiary-era sediments or, locally, with either basement or Tertiary volcanic phenomena.

A one-time OPEC member, Indonesia – the world’s fourth most-populous country with almost 240 million people – remains heavily dependent on petroleum. Its economy saw primary energy consumption increase by more than 50 percent during the last decade.

The country has 60 sedimentary basins. Thirty-six of these in the mature west have been well explored, with 14 currently producing oil and gas. In the under-explored east, 39 Tertiary and Pre-Tertiary basins show strong potential for hydrocarbons.

Jakarta is a well-placed base for the Indonesian oil industry and its workers since it is located on the northwest of Java – an island that is proximate to the key oil and gas producing regions of Sumatra, the Java Sea and East Kalimantan. Approximately three-quarters of the country’s exploration and production activity are in western Indonesia.

As well as the state-owned energy company PT Pertamina, a number of international oil and gas companies operate in the country. Majors with upstream activities in Indonesia include BP plc, Chevron Corp., ConocoPhillips, Exxon Mobil Corp. and Total S.A., while China National Offshore Oil Corp. and South Korea’s Korea National Oil Corp. are two national oil companies involved in the country’s upstream sector.

Indonesia is the eighth-largest gas producer in the world, with proven reserves of 108 trillion cubic feet in 2010. These gas reserves are approximately three times the size of the country’s oil reserves, according to PwC.

In January, Indonesia said that 74 contractors are expected to invest around $23.5 billion in production and exploration in the country during 2013. Approximately $14.7 billion will be earmarked for production activities, such as Total’s South Mahakam block in East Kalminatan and ConocoPhillips’ Sumpal field in South Sumatra, while $5 billion will be used in development projects. Nearly $2.3 billion is forecast to be spent on exploration.

More recently, in March, Indonesia awarded 14 new oil and gas exploration blocks to several companies, including Japan’s Inpex Corp. and UK independent Premier Oil.

Author: Jon Mainwaring

4) Singapore

Singapore began evolving in the 1960s from a third-world status nation with poor infrastructure and limited capital to a global manufacturing and business hub for a number of industries, including electronics, biotechnology and marine and offshore engineering. This transformation resulted from Singapore’s effort to create jobs and build a manufacturing base following the establishment of Singapore as a republic independent of Malaysia. The Singapore Economic Development Board (EDB) was also established during this time to attract foreign investment to the island nation. Singapore has prospered under its free-market approach combined with economic planning.

The oil and gas industry has also played an integral role in Singapore’s economy since oil trading began in 1891. Singapore is one of the world’s top three export refining centers, according to the EDB. A number of drilling rig and offshore support vessel manufacturers, including Keppel Corporation and SembCorp Marine Ltd., call Singapore home.

In 2013, these companies are expected to continue reaping the benefits of higher oil prices, growing offshore exploration and production investments worldwide and demand for high-specification drilling rigs. Singapore’s marine and offshore sector is expected to benefit from investments by Asian companies in deepwater exploration, drilling and production. Last year, Douglas Westwood forecast that, from 2011 to 2016, Asian companies will invest $28.8 billion in these activities, more than double the $11.6 billion spent in the previous five-year period of 2007 to 2011.

Singapore is also home to a number of companies that provide marine-related services such as classification services, maritime and insurance services, as well as offshore support services. The EDB reports that Singapore is the largest manufacturer of jackups and commands 70 percent of the world market. Singapore also holds 70 percent of the global market for the conversion of floating production storage and offloading units and a 20-percent share of the world’s ship repair business.

Author: Karen Boman

3) Denver

While gold mining brought the first settlers to Denver, companies that are part of the air transportation, telecommunications, aerospace, and manufacturing industries are also found in Denver today. A number of oil and gas companies are also present in Denver, including Halliburton, Noble Energy Inc., Anadarko Petroleum Corp., EnCana Corp., EOG Resources Inc., and GE Oil & Gas.

Innovation in multi-stage hydraulic fracturing and horizontal drilling technology has allowed the oil and gas industry to begin exploring Colorado’s unconventional resources. These resources include shale and tight sands within three basins. Of these plays, the Niobrara currently is the most active, according to a report by the Institute for 21st Century Energy. Some analysts have estimated the Niobrara, which is mainly a liquids-rich play, to hold reserves of approximately 2 billion barrels of recoverable oil reserves, according to the Colorado Oil & Gas Association.

Unconventional oil and gas activity in Colorado created 77,600 jobs in the state in 2012, according to the second part of a report by the Institute for 21st Century Energy into the impact of unconventional resources on the U.S. economy. The number of jobs in Colorado supported by shale activity will grow to 121,398 in 2020 and 175,363 in 2035. Unconventional oil and gas activity contributed value-added economic activity of more than $11 billion in Colorado last year; that contribution is estimated to grow to more than $26 billion by 2035.

The nine-county Metro Denver and northern Colorado region ranked fourth for fossil fuel energy employment and seventh among the nation’s 50 largest metros for clean technology development concentration in 2012, according to the Metro Denver Economic Development Corporation. The energy industry cluster employs more than 44,000 people in the area, and the state of Colorado ranked tenth in fossil fuel energy jobs. Energy research centers and universities such as the National Renewable Energy Laboratory and the Colorado School of Mines are also found in the Denver area.

The energy industry not only has impacted Denver’s economy in real life, but in prime time as well – the popular 1980s TV soap opera, “Dynasty” followed the lives of a wealthy oil family living in Denver.

Author: Karen Boman

2) Calgary

Accessible to some of Canada’s top oil and gas plays, Calgary is Canada’s energy capital and Alberta’s largest city. The city’s growth has paralleled the fortunes of Alberta’s oil and gas industry, which rose to prominence with the province’s first major oil discovery at Leduc in 1947.

Alberta’s Energy Resources Conservation Board (ERCB) reports the province’s conventional established oil reserves stand at approximately 1.5 billion barrels; the province produces nearly 500,000 barrels per day of conventional crude. Conventional oil production has tapered off in the mature Western Canadian Sedimentary Basin, but Alberta’s oil sands will ensure that Alberta maintains a prominent role in the global energy industry. The province’s oil sands reserves hold nearly 170 billion barrels of bitumen recoverable with technology available as of 2011.

More than two-thirds of all natural gas produced in Canada originates in Alberta, with an estimated recoverable conventional natural gas reserves base of 73 trillion cubic feet (Tcf). Reserves of the province’s coalbed methane may be a whopping 500 Tcf. Although the extent of Alberta’s unconventional shale gas resources in as many as 15 formations is still under review, a preliminary estimate reveals that five of these formations – Basal Banff/Exshaw, Duvernay, Muskwa, North Nordegg and Wilrich – could hold nearly 1,300 Tcf of gas in place.

According to Calgary Economic Development, nearly 56,000 Calgarians worked in the energy industry in 2010. That same year, roughly 1,700 business establishments comprised Calgary’s energy sector. The Canadian Association of Petroleum Producers expects more than 5 percent of global oil production to originate in Western Canada by 2025. Calgary’s best days as an oil and gas hub may yet be ahead.

Author: Matthew Veazey

1) Dubai

Although Dubai is located in the country that boasts some of the world’s largest oil and natural gas reserves, its bounty of hydrocarbon resources pales in comparison to those of neighboring emirate Abu Dhabi. Nevertheless, Dubai has been an offshore oil producer since the 1966 discovery of the Fateh field in the Persian Gulf. In addition to Fateh, other key offshore fields developed by national oil company Dubai Petroleum Establishment (DPE) have included South West Fateh, Falah and Rashid. In February 2010, DPE made another significant offshore discovery that is currently under development: the Al Jalila oil field.

Aside from DPE, E&P companies such as Dragon Oil, drilling contractors such as KCA Deutag Drilling Inc. and Odfjell and service companies such as Halliburton Co. and Wood Group are among oil and gas industry players maintaining a significant presence in Dubai. Wealth generated from the oil and gas industry has spurred aggressive economic diversification measures in Dubai. Having leveraged its business-friendly climate, cultural openness and accessibility to markets in Africa, Asia and the Middle East, the city has become a major hub for finance, real estate and construction, retail, international trade and tourism.

Author: Matthew Veazey

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With over 200 active drilling rigs and high production output, the Eagle Ford Shale oil and gas boom in south Texas is now ranked as the largest oil and gas development in the world. It is predicted that within the next decade, more than 82,000 jobs will be occupied in support of the Eagle Ford Shale. These jobs will be spread out over 14 different countries.

Image provided by RigZone

Robin Dupre Writes:

In south central Texas, the prolific Eagle Ford shale has created an oil and gas boom that is directly affecting San Antonio and the counties that lie in the surrounding area. In just five short years, the Eagle Ford play has progressed at a rapid pace.

The Eagle Ford shale ranks as the largest oil and gas development in the world based on capital investment, according to a Wood Mackenzie report released in January 2013. It is a hotbed of industry activity, from record drilling levels to high-producing wells. The play is redefining the nation’s energy map – so much so, that international companies are eager to play a part in America’s new energy play.

This play is a hydrocarbon producing formation that holds both gas and more oil than other traditional shale plays, stated the Railroad Commission of Texas. It is a 50 mile-wide by 400 mile-long formation that trends across Texas from the Mexican border up into East Texas with an average thickness of 250 feet.

It is projected that almost $30 billion will be spent in 2013 developing the play, which is currently the most active in the nation, with more than 200 active rigs drilling, Baker Hughes said in a June 21 U.S. rig update.

Oil production in the Eagle Ford shattered a production record in March 2013 topping 500,000 barrels per day and producing 77 percent more crude oil in March than the same month of 2012, according to Bloomberg News.

“The Eagle Ford shale represents a tremendous change for south Texas, and we are experiencing a lot of that change in Bexar County and San Antonio,” said San Antonio Economic Development Foundation President Mario Hernandezm, to Rigzone. “The oil and gas industry has added thousands of jobs to the area and is fueling our job training programs by encouraging curriculum enhancements to meet the needs of the industry.”

Furthermore, the shale play and its activity are severely impacting the 14 counties that surround the shale play area. In 2011, these impacts translated into nearly $20 billion in output, 38,000 full-time jobs, $10,800 billion in gross regionally product, $211 million in local governments’ revenues and $312 million in state revenues, according to a 2012 study, “Economic Impact of the Eagle Ford Shale,” conducted by the Center for Community and Business Research at the University of Texas at San Antonio.

“These benefits are transforming the economies of the region with short- and long-run changes that will both benefit and challenge local governments,” the report stated.

This study also indicated that this trend will continue and may rise to $62 billion with a high probability of $96 billion in the next 10 years.

By 2021, the study estimates that the Eagle Ford shale could support:

More than 82,000 jobs in the 14 counties, up from 38,000 in 2011
Generate $6 billion in salaries and benefits paid to workers
Contribute $1.6 billion in state revenues and $888 million in local government revenues

If these numbers seem high, the study provided examples of employment changes for the time period between 4Q 2009 to the 4Q 2011 for all 14 counties. During this period, employment in these counties increased by 14,237 jobs, resulting in a 9.2 percent increase.

“This growth is more than double the employment growth in the state of Texas of 4.3 percent for the same period,” the study added. “In the 14 counties, in terms of employment growth, the most important industry was the natural resources and mining group (51.5 percent increase)”
Which Jobs Are Needed?

There are varying levels of labor demand and evolving types of labor demanded, the report added. Going forward, education and training requirements for the workforce have to adapt and be flexible enough to accommodate the differing needs of the industry as it continues to grow and expand in the next decade or so.

“We are confident that our culture of business is creating a workforce that is ready to fill the many high-paying jobs that are becoming available because of the Eagle Ford shale,” said Hernandez.

For instance, during the exploration phase of the Eagle Ford, counties will see a rise in the need for:

Occupations dealing with mineral leasing
Site construction/management
Drilling rig support
Material transport

When a company shifts into the production and processing phase of operations, they will require:

Business management
Administrative support
Processing of gas, oil and condensates occupations

Between 2010 and 2011, construction and extraction occupations show the largest increase in the 14-county region of the Eagle Ford shale play, the study reported. Occupations that dealt with exploration, drilling, production and midstream development felt direct and indirect impacts. During this time, Eagle Ford shale activity provided a total occupational impact of 11.4 percent.

Jobs that saw the largest increase were construction and extraction, production occupations, architecture and engineering occupations, transportation and installation, maintenance and repair occupations. Additionally, legal, management, physical and social science, office support, and computer and mathematical sciences heavily increased compared to their 2010 levels.

But the number one ranked occupation that was impacted the most in 2011 were truck drivers, witnessing a 100 percent increase, and this study predicts that in 2021, truck drivers will continue to be the most relevant, witnessing direct and indirect effects of the Eagle Ford shale play.

“Overall, between 2010 and 2021, Eagle Ford development is estimated to impact occupations within the 14-county region by 23.5 percent,” the study added.

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Our partners at Force Inspection Services have launched a new Website this week. Looking sharp!

Force Inspection Services Inc has invested in a new website for its online presence. We hope this website will prove useful to the Oil and Gas Industry tubular inspection readership regarding the services and expertise we provide, and we welcome any suggestions to make this site a success.

The team at Force has been tracking their inventory with the help of Tallys since 2006. Force Inspection Services are one of the premiere pipe inspection and servicing companies operating in Alberta today.

Visit www.forceinspection.com today to get an idea of the variety and quality of services they have to offer.

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It is National Listening Day, and we have prepared an oil and gas audio challenge to test your ear for the oilfield.

Take a listen to the mystery sound clip to see if you can tell what you are hearing.

Is it

A) a pipe loader

B) a pump

C) a drilling derrick

or

D) a pipe lathe

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A good cross section of our customer base is located in Alberta’s oilfield and with 2013 bringing a rise in production, the region is also seeing a significant increase in theft of oilfield goods which can much too easily be sold to scrap yards.

Tracking oilfield equipment serials and quantities helps storage operations to become more aware of, and in turn reduce instances of lost or stolen inventory. Tallys maintains accurate equipment balances and can also track unique serial numbers for each part. Tracking serial numbers makes it easy to match recovered equipment when it has been missing for one reason or another.

Shortly after initial implementation of Tallys, new users typically find OCTG and oilfield equipment on site for which they had no record, and has been collecting dust instead of generating revenue out in the field. Our solution provides storage facilities with a clear picture of what is available in real time, and keeping close tabs on valuable equipment can mean reduced loss and fewer items replaced.

Tallys also increases reporting accuracy, meeting high industry standards. This means a reduction in billing errors, and in turn fewer customer complaints. Tallys web access gives customers who depend on your facility with access to their own transactional records 24/7, pointing more eyes at current balances, providing transparency and making it easy to generate reports remotely.

The below article from The Globe and Mail speaks to the ongoing problem and what local Industry and law enforcement are doing to curb oilfield equipment cull.

Dawn Walton Writes:

As Alberta’s oil fields enjoy a rise in activity, the province is hitting another not-so-sweet spot in the energy cycle: an uptick in pillaging.

Millions of dollars’ worth of generators, all-terrain vehicles, trucks, equipment platforms, drilling rigs, welders, mulchers, tools, copper wire and even crude oil vanish each year from oil and gas sites.

Police are responding by dedicating more officers to the problem, as well as working to share information between detachments. The provincial legislature may soon consider a private member’s bill that would require sellers to scrap yards to provide identification, potentially closing off one avenue for disposing of stolen material. And the industry’s own security procedures have grown more thorough as well.

“These are high-ticket items,” said Wood Buffalo RCMP Staff Sergeant Keith Durance, who is based in Fort McMurray. “Generally speaking, there is a pretty lucrative market in larger industrial equipment.”

Alberta-based energy producers frequently operate in far-flung sites, where it is often impossible to place security personnel around the clock – or the calendar year – without incurring huge costs. They are prime targets for thieves.

“Since the economy came back, it’s starting to be more of a problem,” said Sergeant Jeff McBeth, the RCMP commander in the northwestern Alberta community of Fox Creek.

His detachment receives oil-field theft complaints at a rate of one a week, including one in January for a mulcher valued at $200,000, which still hasn’t been located.

“Right now, in Alberta, because the oil industry is really booming, places like the Leducs, the Niskus, the Fox Creeks, the Draytons, the Grande Prairies, we’re all experiencing the same kinds of crime when it comes to oil-field equipment,” Sgt. McBeth added.

Backbench Tory MLA Dave Quest is now taking a third run at his private member’s bill – the Scrap Metal Dealers and Recyclers Identification Act – which would require people selling aluminum, brass, bronze, copper, stainless steel, steel, tin or other metal to scrap yards to provide identification such as a driver’s licence. It would also place an onus on dealers to keep records and notify police of suspicious circumstances.

Mr. Quest, who’s optimistic about Bill 201’s chances when the legislature resumes this week, said he has heard about the issue for years in his industrial heartland riding on the outskirts of Edmonton.

“Once you’ve got it, you’ve basically got cash in hand,” said the MLA for Strathcona-Sherwood Park. “We need to fix that.”

The problem of oil-field equipment theft became so noticeable in Southern Alberta a couple of years ago that a task force was created to drive greater collaboration between RCMP detachments and to designate an officer at each dedicated to tackling oil-field robberies and mischief.

It seems to be working, according to police.

Across the province, RCMP recently added extra shifts specifically to patrol rural areas for thefts and vandalism. The industry has also taken extraordinary measures to deal with the problem, including welding doors closed when sites are temporarily shut down, or even hiring 24-hour staff to live on vulnerable sites.

“It’s a bad thing, but it’s almost like a norm for the industry,” said Mark Salkeld, president of Petroleum Services Association of Canada.

He said thieves take advantage of the “spring breakup” – a time when the thaw starts, drilling sites turn into muddy messes and heavy vehicles that could damage fragile roads are banned from travel. Drilling sites are closed for several weeks or month, and left empty.

Mr. Salkeld said simply locking doors hasn’t worked.

“We’d build special covers over the locks to make it harder to snap them with a crowbar,” he said.

“Then even those failed so we would just weld the doors shut.”

When it was time to start up again, he added, “We would just cut it, and grind it, and paint it up and go to work the next season.”

George McHardy, executive vice-president of Nabors Canada, which provides contract drilling services at oil and natural gas sites, said typically the company asks clients to pay for “rig watch” to protect equipment worth hundreds of thousands of dollars.

“Typically, there’s no clues, right? You come back to a rig site and all the cables are cut off and they’re gone.”

A 67-year-old oil-patch veteran is set to appear in a Fort McMurray court next week charged with stealing 58 massive steel-framed equipment pads valued at $266,800 from a former employer.

RCMP officers spent more than two years investigating the theft of the hefty rig mats from a Statoil Canada Ltd. site. The accused, Harold Slaferek of the Calgary area, has more than 35 years of experience in the industry, according to corporate documents.

In another case, two men were arrested last month at a Cenovus Energy site near Clandonald, about two hours east of Edmonton. Police later searched a property and reported finding more than $250,000 in items linked to oil sites.

“There are thousands and thousands and thousands of people making an honest living in the oil patch,” Cenovus spokesman Reg Curren said. “[People] could be stealing from their neighbours or friends.”

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