2013 operational summary: New IADC is well under way

In 2013, the Operational Integrity Group devoted time and expertise to promoting the interests of IADC members by addressing and participating in numerous regulatory initiatives. Steve Kropla, executive vice president-operational integrity, heads the group.

Demonstrating a commitment to being the authoritative source for regulators and the industry, the Operational Integrity Group and IADC Communications developed the IADC Lexicon in 2013. The project was undertaken at the request of the European Union Offshore Authorities Group (EUOAG) to create a repository of terms related to the E&P industry, particularly drilling. The Lexicon, completed in October, provides more than 10,000 definitions for more than 6,000 terms. (Multiple sources on numerous terms result in multiple definitions.)

These terms and definitions are drawn from critical legislation, regulations, standards and guidelines from around the world. The IADC Lexicon was designed to help regulators draft rules and companies build internal programs.  It can be accessed through IADC’s website and uses “responsive” web technology to ensure efficient operation independent of the user’s viewing platform.

Throughout the year, the group worked with other industry groups and collective regulatory bodies. For example, work with the OGP Wells Expert Committee (WEC) continued. Through involvement with the WEC’s Training, Competence and Human Factors Task Force, IADC has been an active contributor to Phase 2 of the Well Operations Crew Resource Management document, expected to be complete by year-end. IADC is also participating on the WEC’s BOP Reliability & Technology Task Force.

Additionally, the group collaborated with API on Bulletin 97 – the Well Construction Interface Document – and prepared recommendations for the update of API RP54, “Recommended Practice for Occupational Safety for Oil and Gas Well Drilling and Servicing Operations.” IADC also collaborated with SPE on well control and managed pressure drilling forums.

“Enhancing operational integrity is one of IADC’s key goals. The Operational Integrity Group is committed to working collaboratively to develop solutions that will ensure our industry has the tools to solve the common problems within the drilling space. In 2014, we will continue this important work,” Mr Kropla said.

Onshore Division

The Onshore Division, under the leadership of vice president Joe Hurt, traveled extensively in 2013, meeting with members to better understand and address their needs.

Rhett Winter joined as director of onshore operations in March 2013.  With field experience as a roughneck, derrickman and driller, Mr Winter joined the division to help support onshore members. Additionally, Paul Breaux was promoted to director, onshore HSE.

The group regularly participated in workgroups and conferences across the globe. These include the OGP Safety Statistics Committee and Land Transport Committee, Wyoming Department of Workforce Services and Wyoming OSHA’s Workforce Summit. Staff members also served on the OSHA 5810 Leadership Course Steering Committee, Industry Safety Network (STEPS) meetings across the US and the NORA Oil and Gas Council. Staff also worked with industry groups to ensure that Endangered Species Act regulations are reasonable and transparent.

The division assisted the IADC Permian Basin Chapter with its revitalization efforts and supported the IADC Rig Moving Committee’s efforts to develop competency standards for personnel in the land rig moving process.

Below are examples of the division’s projects over the past year.

• Regional Operations Forums

The division was instrumental in organizing regional operations forums. Meetings held in Colorado, Oklahoma, California, southern Louisiana, Houston, West Texas and Pennsylvania were opportunities for open discussion of issues facing US onshore contractors. Each meeting was well attended and gave the Onshore Division further information on the challenges of US contractors, along with a mandate to further influence regulations on the local and state levels.

• Fire-retardant clothing

The Onshore Division has also been a powerful advocate for reasonable interpretation and enforcement of personal protective equipment regulations. Working with other industry groups, the division contributed to API RP54, as well as RP99, “Flash Fire Risk Assessment for the Upstream Oil and Gas Industry.”

• Safety Alerts

The IADC Safety Alert Program is recognized as one of the industry’s best tools for sharing lessons learned from incidents in oil and gas operations. For 15 years, the program has allowed members to share incidents and near-misses for educational purposes, as well as best practices with partners in the industry.

• Incident Statistics Report (ISP)

The ISP report, issued yearly and entering its 51st year, compiles numbers and details about lost-time incidents (LTIs) and recordables. For 2012, the drilling industry’s worldwide LTI rate reached a record low of 0.26, a 24% improvement over 2011. The recordable rate improved to 0.88, a 25% improvement over 2011. A total of 22 fatalities were reported. In 2014, the ISP will be expanded to include well servicing operations.

“2013 saw the Onshore Division expand to better support our onshore members through member visits and regular attendance at regional industry meetings,” Mr Hurt said. “Looking forward to 2014, the division will be splitting up the regions of the US to provide more consistent support.”

Offshore Division

Under the leadership of vice president Alan Spackman, the Offshore Division continued advocacy on behalf of members with offshore interests, focusing particularly on representing their interests before regulatory agencies.

In September, the division hired Sean Brett as senior director to expand capabilities for advocacy, regulatory representation and development of standards. Mr Brett is responsible for assisting the Accreditation and Credentialing Division on development of marine qualifications for the KSA project and representing IADC at the International Maritime Organization (IMO) as it considers Deepwater Horizon casualty reports.

Examples of the division’s activities for 2013 are listed below.

• On a semi-annual basis, the division assembles and distributes the Report on International Standards Activities and the Federal Regulatory Actions Impacting Offshore Drilling. Each report details regulatory initiatives on an international and US-specific basis, giving the industry comprehensive, reputable and thorough sources to access important information on regulation and legislation that may affect operations.

• Division members and staff are active in IMO activities, contributing to the Deepwater Horizon casualty investigation, revision of IMO Resolution A.891 (21) Recommendations for Training of Personnel on MOUs (mobile offshore units) and amendments to the MODU Code regarding atmosphere testing equipment.

• The division interacts with US regulators on regulations and activities that specifically affect offshore contractors. Efforts continue with the US Bureau of Safety and Environmental Enforcement (BSEE) to address the Safety and Environmental Management Systems (SEMS) and Best Available and Safest Technology (BAST) regulations.

Collaboration also is ongoing with the US Coast Guard (USCG) to address regulatory initiatives for SEMS regulations, ballast water reporting and record-keeping, the Mariner Medical Evaluation program, electrical equipment in hazardous areas, Compliance with Maritime Labour Convention, 2006 (MLC 2006), and lifesaving and firefighting equipment and drills on MODUs. Additionally, work with the US Environmental Protection Agency (EPA) has addressed OCS air regulations and vessel permitting requirements.

• The division is also working with the EUOAG collectively and with European regulatory agencies individually on a range of issues to implement the recently enacted EU Offshore Safety Directive.

• On the National Offshore Safety Advisory Committee, IADC representatives contribute expertise and knowledge to the USCG to shape its regulatory priorities and policies.

• The division presented members with proposed amendments to the IADC HSE Case Guidelines to address recently adopted New Zealand regulations, as well as the EU Offshore Safety Directive. In a closely related effort, IADC staff is also actively participating in the revision of ISO standard 17776 to update the industry’s guidelines on tools and techniques for hazard identification and risk assessment.

“The Offshore Division has been challenged to continually assess its priorities and direct its resources to the best advantage of members in the dynamic post-Macondo regulatory landscape,” Mr Spackman said. “We will face similar challenges in 2014, particularly with national implementation of the EU Offshore Safety Directive. With the support of the membership, however, I am confident that we will continue to effectively represent their interests.”

Drilling and Well Servicing Division

The Drilling and Well Servicing Division experienced significant growth in 2013. Recognizing the critical importance of well servicing operations, the division, under the leadership of Scott Maddox, director, drilling and well servicing, worked closely with the IADC Well Servicing Committee to develop solutions for industrywide concerns.

A project to develop KSAs for well-servicing jobs was initiated in 2013 to identify and develop core competencies. In September, the Coiled Tubing Subcommittee was established to develop key deliverables.

The committee is also working to revise API 68, “Recommended Practices for Oil and Gas Well Servicing and Workover Operations Involving Hydrogen Sulfide,” and API 49, “Recommended Practice for Drilling and Well Servicing Operations Involving Hydrogen Sulfide.”

Additionally, the committee developed the well service rig inspection matrix and accompanying documentation after identifying an industry need for such a document. To complement this effort, next year the committee will produce an inspection form that can be modified as needed.

“In 2013, the committee just scratched the surface of addressing the needs of the well servicing industry,” Mr Maddox said. “Looking forward to 2014, I’m excited for the continued growth of the committee as we look for new opportunities to improve well servicing operations.”

The Accreditation and Credentialing Division (ACD), under the leadership of Mark Denkowski, vice president, presided over an ambitious slate of initiatives in 2013, each supporting the industry’s critical need for a competent, capable and credentialed workforce. In 2014, ACD will continue its focus on developing programs that will raise the bar for the oil and gas industry’s safety and operational performance. A truly competent workforce reduces nonproductive time and incidents, a goal valued by all, and one that is at the heart of all of ACD’s initiatives.

The following is a sampling of key ACD initiatives in 2013.

Well Control Institute

In August 2013, IADC announced the formation of the Well Control Institute (WCI), a game-changing shift in the industry’s approach to well control training, assessment and credentialing. The WCI brings a single governance, single standard and single administration to the drilling community. The WCI is expected to be fully operational by mid-2014. It will bring together all sectors of the drilling community to define and implement a new well control standard that will build on recommendations from the OGP WEC, the IADC WellCAP Advisory Panel, IWCF and other industry stakeholders.

WCI will develop a training and assessment standard to focus on learning and learning retention and will provide role-specific learning objectives. The standard will include, for example, an emphasis on kick detection and well shut-in for drillers. It will focus on the use of realistic simulations and provide a reliable and secure standardized testing process that is verifiable.

The new model provides for flexible curricula and training delivery for all personnel with direct or indirect well control responsibilities at any phase through the life of the well. In addition, it will offer continuous learning opportunities to enhance knowledge and skills retention.

IADC has contracted Black and Veatch, a management consulting company, to assist in several tasks, such as setting up the WCI’s structure, developing a charter, outlining a management plan, implementing the WCI infrastructure and developing core documentation and operating procedures.

Workforce Attraction and Development Initiative

ACD also kicked off the Workforce Attraction and Development Initiative (WADI), another innovative program that unites the oil and gas industry with educational organizations to collaborate in attracting and training the next generation of employees. WADI also will develop additional training options to support current employees’ professional development.

The WADI project is expected to become fully operational in 2014. At least 32 colleges from nine US states are working with industry representatives to design and deliver coursework and programs that support new-hire and current employee training. The courses and programs will be based on the IADC KSAs  (Knowledge, Skills and Abilities) and accredited by IADC. Individuals will be assessed and issued credentials that are verifiable.

KSA Competencies

In 2013, ACD launched the KSA Competencies Project. By developing core competency guidelines for virtually all rig-based positions, the KSAs provide a benchmark for globally consistent requirements and offer a means for effectively evaluating personnel. To accomplish this effort, IADC worked with more than 70 subject matter experts over a one and a half-year period.

The KSAs, available through a free online database, allow companies to have a library of industry-defined competencies at their fingertips. It will be a powerful tool for developing competency assurance programs that can be customized to meet each company’s unique needs.

The KSA database will be “evergreen,” continuously improved by user input through a community feedback portal.

HUET

The IADC Helicopter Underwater Escape Training and Water Survival accreditation program (HUET) was completed in 2013. It offers accreditation for the delivery of standardized training in helicopter ditching and survival in warm/tropical waters until rescue. IADC embarked on developing the program at the request of operators in the Gulf of Mexico who wanted more consistency in training delivery.

Developing a Competency Assurance Program

The Guidelines for Developing a Competency Assurance Program are targeted for completion in 2013. The document communicates the benefits of a comprehensive competence assurance program that encompasses a standardized and verifiable approach for ensuring workforce competence. It provides guidance and recommended practices for the development, implementation and management of company-specific programs that are sustainable. Companies seeking to build a competence program can use the guidelines to better understand the necessary components for a successful program.

“Our objective, and that of IADC as a whole, is to improve performance, operational integrity and environmental stewardship,” Mr Denkowski explained. “In the past year, ACD has focused on answering the calls of the drilling community to provide solutions in each of these areas. Our focus on competency helps to ensure that the industry has the programs in place to increase the operational efficiency and safety of personnel while decreasing downtime and protecting the environment. This is at the heart of all that we do at IADC. In 2014, we will continue our work toward these goals – such as those involving WADI, the WCI and others – which will have a dramatic and positive impact on the industry.”

The Government and Regulatory Affairs Division, under the leadership of Brian Petty, executive vice president, stepped up efforts in 2013 to more actively represent member interests to global regulatory and legislative bodies. Advocating for fair and sensible regulations for the drilling industry, IADC worked with entities such as BSEE, the US Department of Interior (DOI), the European Union and US Bureau of Land Management (BLM), among others.

The division is experiencing a change in leadership, with Mr Petty announcing his retirement, effective 31 December, after more than 30 years of exemplary service with IADC. Additionally, Taf Powell has joined the division as executive vice president. See Page 128 for more information.

Below are examples of legislation influenced by IADC this past year.

• In May, the European Union authorized the Offshore Safety Directive. IADC worked with the OGP European Union Committee on a task force for more than two years to examine successive drafts of the legislation, which ultimately ensured that the legislation was framed as a directive that allows for flexibility to conform to existing national laws. IADC continues to work closely with regulators across Europe toward consistent application of regulatory regimes at the national level.

• In August, BSEE proposed amendments to the Oil and Gas and Sulphur Operations on the Outer Continental Shelf – Oil and Gas Production Safety Systems regulations. IADC issued a letter on 29 August to request an extension of the comment period, noting that the implications of the amendment were not clear and the significance of such a revision is cause for concern. The proposed revision, if adopted, would introduce additional uncertainty regarding the ongoing qualification of any rig for operations on the US OCS.

• IADC, along with more than 40 other organizations, submitted comments to the US BLM’s proposed well stimulation and hydraulic fracturing regulation for federal and Indian lands. Contending that the proposal is technically unsound and does not provide any benefit to existing regulations, the letter emphasized that economic analysis of such a proposition was inadequate and the rule arbitrary and capricious.

•  IADC participated in an offshore safety meeting hosted by the DOI and National Ocean Industries Association in August to discuss shallow-water concerns. These included a focus on the need to monitor and act more proactively when there is an indication of a problem and the importance of compliance with regulations and operator oversight of contract work being performed on offshore facilities.

• In July, IADC was among a select group of leaders invited to attend a luncheon with the European Commissioner for Energy, Günther Oettinger, to discuss how industry can ensure the highest level of safety for their workforce. Attendees focused on how best to reassure the public that the safety lessons learned are visibly embedded everywhere our companies operate.

• In April, BSEE issued the SEMS II Final Rule. In response to comments received from both IADC and IADC member companies, significant changes were made to the original draft regulations. IADC continues to seek clarification from BSEE and the USCG on these changes.

• In collaboration with the API, IPAA and the US Oil & Gas Association, IADC dismissed the Center for a Sustainable Economy’s challenge to the five-year offshore oil and gas leasing program, noting that the program is too restrictive and cuts off access to oil and gas reserves in West Coast waters and the Atlantic Ocean.

“The wide range of activities in which IADC was an active participant is an indication of our global reach with respect to government affairs. We were sought out as an authoritative voice for the drilling community by both regulators and news media related to critical issues in our industry. IADC continues to be at the forefront of demanding sensible and fair regulations for the drilling community,” Mr Petty said.

The International Development team grew significantly in 2013. With the retirement in October of vice president Ken Fischer, Mike DuBose and Bob Warren were named to leadership roles in the division. Mr DuBose was named vice president, international development for Europe and Asia, and Mr Warren as vice president, international development for Latin America, Africa and the Middle East. The group continues to focus on expanding IADC’s global reach, exhibiting a commitment to engage on a global level and assist in shaping regulations worldwide.

Regional Representative Team Expansion

The International Development Division expanded its global network of regional representatives in 2013, adding personnel in Europe and Brazil.  This growth ensures that these valuable ambassadors are based in the same areas of the globe where IADC members operate.

John Boogaerdt joined the team as regional director – Europe, based in The Netherlands. With more than 35 years of experience in the industry, Mr Boogaerdt previously lived and worked in the UK, Austria, Norway, Malaysia, Egypt, Oman, China and The Netherlands.

In June, John Atkinson was named regional director – North Sea, based in Aberdeen. Over the course of his 40-year career, Mr Atkinson has held various positions in the oil and gas industry across the globe, including Malaysia, Singapore, Australia and Scotland.

Recognizing the important role that Brazil plays in the industry, IADC also appointed Tony Cox to serve as a regional representative for the region. Based in Rio de Janeiro, he works with IADC members to promote their interests while representing IADC to government, industry and regulatory bodies.

These three new staff members are joining a team of IADC representatives already in place: Jens Hoffmark, regional vice president – Europe; Dave Geer, regional director – Middle East and Africa; Chit Hlaing, assistant regional director – Asia Pacific; and Derek Morrow, regional director, Australasia.

Influencing Regulations

With staff in place across the world, IADC is at the forefront of influencing sensible and fair regulations for the drilling community worldwide. Engaging with government officials and regulators to develop ongoing dialogue on issues critical to the industry is a key deliverable for the International Development Division. Samples of its contributions are:

• Mr Hoffmark met with new management at the Danish Energy Agency on 4 February to discuss challenges facing the industry, such as the relatively high number of new rigs entering the market and the challenges in finding and training personnel to ensure a competent and qualified workforce.

• Stephen Colville, IADC president and CEO, and Mr Morrow met with NOPSEMA, the Australian offshore regulatory group, and several members of the Australian Ministry of Resources in May to discuss issues related to the drilling industry.

• At an offshore oil and gas safety workshop hosted by the European Union Offshore Authorities Group on 4 June, Mr Boogaerdt participated in discussions on the most effective way to implement provisions of the Offshore Safety Directive.

• Along with a delegation from the IADC South Central Asia Chapter, Mr Fischer and Mr Hlaing met with India’s Oil Industry Safety Directorate in Delhi on 13 June. Attendees focused on implementing issues related to API Standard 53, “Blowout Prevention Equipment Systems for Drilling Wells.”

• On 4 July, IADC hosted a European Operations Forum joint contractor/regulator meeting in Brussels. The event, chaired by Mr Hoffmark, allowed representatives from a dozen drilling contractors and representatives from EUOAG and the EU Commission to discuss challenges and issues encountered by the drilling community in the EU.

“The International Development Division continues its rapid growth to more effectively represent our member interests worldwide. In the coming year, we will be working to make a demonstrated impact in the regions where our members operate. Our focus spans from operational integrity to workforce development to new initiatives involving the regulatory space, and we have a lot of work to accomplish with a very committed group of regional representatives. We are fortunate to have them serving IADC on behalf of our members,” Mr Warren said.

Mr DuBose added, “IADC’s International Development group is a formidable team, assisting our membership as we expand our global representation. Since joining the group, I have been very impressed with the depth of experience and local knowledge our regional representatives bring to the table. The hard work and dedication exhibited by our current team on behalf of IADC is immeasurable. We are looking forward to a busy year advocating on behalf of IADC’s membership.”

IADC Communications, under the leadership of group vice president/publisher Mike Killalea, is setting standards in delivering news, technical articles and practical tools for use on the rig and in the classroom. The IADC Bookstore, formerly IADC Publications, is at the cutting edge in developing new products to catalyze improved performance in safety and operations. IADC’s print and electronic news products integrate video and other multimedia.

In 2013, IADC Communications delivered 24 issues of eNews from dev4.iadc.org, in addition to six printed editions of Drilling Contractor (DC) magazine and 12 issues of the Drill Bits newsletter. eNews and Drill Bits reach 24,000 people with each issue, up sharply from previous levels of 8,000 and 5,000, respectively. As of October, IADC Communications has produced more than 60 original videos on topics of interest to the drilling community. The group also hosted three webinars on competency, the new well control standard API S53 and how best to develop drilling engineers.

Drilling Contractor

DC, IADC’s award-winning magazine, will celebrate its 70th anniversary in 2014. DC has surpassed 36,000 subscribers for each of its six issues per year. In addition to the print edition, the magazine is an industry leader in integrating multimedia resources with print communications. This year, the DC digital reader, compatible with nearly all electronic platforms, began offering translations into several languages. Users can now read key articles in Arabic, Chinese and Brazilian Portuguese. The translations help IADC target a larger worldwide audience. Nearly 3,000 readers access the digital reader, with an average time on site of more than an hour.

Publications Revitalization

IADC Communications is engaging in major revamps of long-standing products, as well as developing new books and products.

• For the first time in decades, IADC is publishing textbooks across a range of topics in the new IADC Drilling Series. For example, cementing expert Ron Sweatman, Halliburton (ret.), is publishing, through IADC, “Well Cementing Operations.” Other titles will be announced in 2014. The IADC Drilling Series is published under the auspices of the IADC Technical Publications Committee, led by chairman Leon Robinson.

• Major efforts are under way to update and rewrite the IADC Drilling Manual and the IADC Deepwater Well Control Guidelines. More than 100 drilling professionals are working on the Drilling Manual rewrite, slated for completion in early 2015. This 12th edition will not only feature significant updates to existing chapters but also include new sections on technologies absent from previous editions. These include top drives, managed pressure drilling, directional drilling and more. It will be published in print and electronic versions. More than half of the manual’s 30 chapters are at least 50% written.

• Under the leadership of chairman Louis Romo, BP, the rewrite of the IADC Deepwater Well Control Guidelines is moving toward the final draft stage. Final drafts of the five chapters will be reviewed by the Steering Committee by February 2014. More than 70 drilling professionals are engaged in the project.

• The IADC Health, Safety and Environmental Reference Guide has been reformatted, redesigned and published in color. A compendium of all necessary guidelines for establishing a sound safety program, the book covers equipment safety, personal protective equipment, fire prevention, fire fighting and fire control, confined space entry guidelines, cold weather safety, offshore safety and emergency action plans, among others.

IADC Communications is responding to industry needs through new and updated products for the rig site. The new forms aim to enhance operational integrity by addressing both safety and process, two of IADC’s key critical issues. These include:

• IADC Near Miss/Hit Report for documenting accidents that “might have been.” Two forms were developed, one for drilling and one for well servicing. The tool is available as a convenient paper pad or as an online form;

• The IADC Mud Pump Inspection Form will help contractor maintenance programs. It records pump maintenance and hours on pistons, liners, oil, valves and seats. The new checklist is designed to help minimize pump downtime.

Several existing checklists also have been updated for accuracy and to provide a more fluid user experience:

• IADC Weekly Safety Meeting Report Form;

• IADC Daily Engine Report Form;

• IADC Safety Meeting Topic and Record Book;

• IADC Drilling Rig Safety Inspection Checklist.

IADC Communications also collaborated with the Operational Integrity Group to develop the IADC Lexicon, a compendium of terms and definitions drawn from statute, regulations, standards and guidelines (See Page 116).

“IADC Communications is now an integrated department, bringing together our magazine, websites and newsletters with our long-standing publication-sales effort,” Mr Killalea said. “We are committed to a multimedia strategy in reporting industry news and technology, and, importantly, a new and vigorous approach to developing and maintaining the definitive publications for which IADC is known.”