IADC engages in multitude of initiatives to catalyze improved performance for the global drilling industry
By Amy Rose, IADC Director of External Relations
Over the course of 2015, IADC members and staff engaged in work to further IADC’s mission of catalyzing improved performance for the drilling industry and its vision for the drilling industry to be recognized for its vital role in the global economy and its high standards of safety, environmental stewardship and operational efficiency.
Below is a high-level look at some of the past year’s highlights and accomplishments, organized by department – Operational Integrity; Policy, Government and Regulatory Affairs; International Development; and Communications.
Under the direction of Mark Denkowski, Executive Vice President, Operational Integrity, this division works to promote the interests of IADC members across the globe. Operational Integrity (OI) comprises the Onshore, Offshore, QA/QC and Accreditation and Credentialing divisions.
“In 2015, the OI group was responsible for working together with all of our stakeholders to ensure that our programs and initiatives addressed the critical needs of our members,” Mr Denkowski said. “In the midst of a tough operating environment in our industry, we were able to produce some significant work, and I am proud of the efforts of this division, along with the industry experts and veterans who dedicated their time to support our initiatives.”
Members of the department were active on a variety of industry workgroups, representing the interests of IADC members. These include: support for the National Service, Transmission, Exploration and Production Safety Networks, attending NIOSH/NORA council meetings, attending meetings and events for the Interstate Oil & Gas Compact Commission and the liaison committee for Cooperating Oil & Gas Associations. Staff also participated on various API subcommittees, including DPOS, Standard 53 and RP 54; Center for Offshore Safety Board of Directors; SafeLand and SafeGulf advisory panels; and on various task groups with the International Association of Oil and Gas Producers and its Wells Expert Committee. Additionally, the staff worked closely with members of IADC’s chapters and committees and workgroups on the development of key deliverables.
The division was responsible for the implementation of several high-impact, high-level initiatives:
WellSharp, introduced in April 2015, is a rigorous well control training and assessment program that offers content on prevention, situational awareness, barriers, barrier management and risk awareness and management. It encourages blended learning to enhance the quality and value of the training with required independently proctored electronic knowledge assessments and enhanced simulator exercises, a format that has been well received.
A collaborative, industrywide, industry-led effort to completely redefine well control training produced WellSharp, which was designed to raise the bar of well control training. It was developed to ensure that the industry’s workforce has the training and knowledge necessary to prevent incidents and respond swiftly and appropriately to unforeseen incidents. It provides tools and support needed to deliver significantly improved performance in the area of well control.
“WellSharp is a fit-for-purpose well control training and assessment program for a high-reliability industry. It helps to ensure that rig crews know what they need to do in any circumstance; they have the skills to do it right, every time, all the time,” said Stephen Colville, IADC President and CEO. “The enthusiastic adoption of WellSharp so quickly and at a time of real economic challenge shows that it delivers. It is a valuable asset for the global drilling industry and will make a powerful contribution to improved performance and operational efficiency.”
In March, IADC introduced Gateway, the first accreditation program for training providers launched through the Workforce Attraction and Development Initiative (WADI) and the IADC Workforce Development Committee. WADI was initiated in 2012 to bring together institutions of higher learning with industry partners to develop curriculums for entry-level, new-hire oil and gas industry candidates.
The Introduction to Oil and Gas Training Program is a result of the WADI collaboration and is the first accreditation program administered under Gateway. The course was developed to help companies connect with colleges, training providers and other organizations to attract, hire, train and promote safety and operational efficiency for onshore and offshore oil and gas workers worldwide.
The training program offers a standard baseline curriculum comprising RigPass, WellSharp Awareness-Level well control, a general introduction to the industry, behavioral training, a module on rig life, technical math, rigging basics, electrical and fluid safety, industrial practices and considerable hands-on training. The program is designed to better prepare new employees for working on a rig, thereby helping companies improve safety culture in the field while reducing turnover rates.
The first students to receive certificates graduated from the Ableman Drilling Careers Academy in Malta on 30 March. The program in Malta was a collaboration between Ablecare Oilfield Services Group, the parent company of the academy based in Malta, and Lone Star College System, based in Houston. The two worked together to develop and deliver the intensive seven-week course for entry-level oil and gas personnel.
Competency Assurance Guidelines
The IADC Competence Assurance Guidelines were made available in August, offering a set of recommendations for building an effective competence assurance program. The free guidelines are the product of a collaborative effort among industry competence experts, working through members of the IADC Workforce Development Committee, who shared their experiences, challenges and lessons learned to develop the new guidelines.
The document lists the essential definitions to ensure that programs and managers speak the same language with regard to competence, and then explores the purpose and types of programs and how they can be set up. Additionally, the importance and function, or design, of competence management systems, key roles in a program, management commitment and quality assurance are fully explained. Finally, types of data and information management, competence assessments, resources for defining competencies and elements of an implementation plan are provided.
Knowledge, Skill and Ability competencies
The IADC Knowledge, Skill and Ability competencies (KSAs) were initially created in 2001 and comprised competencies for 14 rig-based positions. In 2014, the KSAs were updated to include new positions in technical maintenance and marine operations. The new KSA database includes competencies for more than 73 rig-based positions, listing the recommended capabilities that personnel must possess to safely and consistently fulfill their job roles.
The database allows industry users to generate, on demand, a unique set of competencies based on position, rig type and operational environment, providing the industry a tool to demonstrate the qualifications of their personnel. More than 70 subject matter experts from across the industry collaborated on the project, which was initiated in 2012.
“KSA competencies can be used to build or evaluate in-house competency programs, assess personnel capabilities and qualifications by building assessment guides, build personnel development tools by identifying competency strengths and can assist in the development of career advancement pathways,” said Brooke Polk, IADC Competency and Learning Development Specialist.
Incident Statistics Program (ISP)
The ISP report, issued yearly, compiles numbers detailing lost-time incidents (LTIs) and recordable incidents for drilling contractors that voluntarily participate in the program. For 2014, the drilling industry’s worldwide LTI rate was 0.23, and the recordable incident rate was 0.75. A total of 21 fatalities were reported.
Safety Alerts and Safety Toolbox
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. The program allows members to share incidents and near-misses for educational purposes, as well as best practices with partners within the industry. Additionally, the IADC Safety Toolbox was introduced in 2015. Targeted to rig personnel, the free online toolbox provides easy access to safety alerts, safely meeting topics, forms and other safety-related resources. It puts critical safety-related tools and resources directly in the hands of rig crew members.
Federal Regulatory Summary for Onshore Operations
Released twice during the course of the year, this report details federal regulatory actions that could possibly impact onshore drilling and is available free of charge to members.
Policy, Government and Regulatory Affairs
Policy, Government and Regulatory Affairs (PGRA) staff undertake advocacy and intervention on behalf of the drilling industry. The team engages proactively with both US and global regulatory and legislative bodies, policymakers, oil and gas producers and the media. Under the leadership of Executive Vice President Taf Powell, the department focuses stakeholder attention to the key facts that the upstream oil and gas drilling industry is, firstly, vital to the global economy; secondly, socially responsible; and, thirdly, operationally excellent. The team mobilizes itself around these core elements on behalf of drilling contractor interests worldwide.
Two senior team members joined the department this year. Elizabeth “Liz” Craddock was appointed Vice President, Policy and Government Affairs and leads IADC’s Washington, D.C., office. Before joining IADC, she served as the first female Majority Staff Director of the US Senate Energy and Natural Resources Committee under Chair Sen. Mary Landrieu. In that role, she oversaw the passage of the Bureau of Land Management (BLM) Permit Processing Improvement Act and encouraged faster approval of LNG exports. In addition, Ms Craddock was part of the legislative team that oversaw the enactment of the Gulf of Mexico Energy Security Act, which opens 8.3 million acres in the eastern Gulf of Mexico.
Jim Rocco was named in August as Senior Director, Policy and Regulatory Affairs. He joined IADC after retiring from the US Coast Guard (USCG) with 23 years of active duty service. In his time with the Coast Guard, Mr Rocco served as liaison to vessel and offshore classification societies, and in field assignments as a commercial vessel inspector and port operations officer working in the ports of Seattle, Morgan City and Chicago.
Over the course of the year, the division published annual reports on US regulatory activity:
• The Federal Regulatory Actions Impacting Offshore Drilling report, and
• The Semi-Annual Report on International Standardization Activities Affecting the Oil and Gas Industry.
In 2015, staff worked with regulatory bodies and organizations worldwide to influence policies, input to standards making and pursue better regulation by, for example, providing input to proposed legislation. Examples of this activity in the US include:
• Dozens of meetings with members of Congress advocating on important issues, such as the US Bureau of Safety and Environmental Enforcement well control rule, crude oil exports, access to public lands onshore and offshore, and the BLM hydraulic fracturing rule.
• Engaging with the Railroad Commission of Texas (RRC) on Rule 13. The rule’s primary purpose is to protect freshwater and regulate well control. Dialogue has progressed constructively throughout 2015 to support the RRC to implement the rule’s intended effect.
• Issuing a statement to the USCG in support of S.373, the Vessel Incidental Discharge Act. The bipartisan legislation would establish nationally uniform and environmentally sound standards for ballast water and other vessel discharges.
• Submitting authoritative technical commentary on behalf of drilling contractors and, where appropriate, jointly with other industry associations. PGRA staff continue to follow up IADC’s powerful technical case for amendments to the draft rule.
• Giving testimony for the House Natural Resources Committee hearing on innovations in safety since the 2010 Macondo incident, highlighting industry collaborative outputs and supporting the case that drilling offshore, including in the Atlantic and Arctic, can be done entirely safely.
• Responding authoritatively to various other proposed rules:
o The proposed rule from the US Department of the Interior (DOI) to revise and add new requirements for regulations for exploratory drilling and related operations on the Alaskan Outer Continental Shelf;
o The USCG’s notice of proposed rulemaking to establish minimum design, operation, training and manning standards for MODUs and other vessels that use dynamic positioning systems.
• Sending out IADC’s first Vote Alert, urging members to contact their senators in support of an amendment offered by Texas Sen. John Cornyn to lift the crude oil export ban.
• Organizing an upstream meet and greet with Congressman Sam Graves, inviting Washington, DC, upstream lobbyists to vocalize their issues to a sitting member of the House Resources Committee, which is a key committee for our industry.
• Attending and submitting testimony to the New Orleans field hearing by the US House Committee on Natural Resources debating the impacts of federal policies on energy production and economic growth in the US Gulf;
• Supporting, with other trade groups, the US House of Representatives’ efforts pursuant to the Responsibly and Professionally Invigorating Development (RAPID) Act for streamlining the federal permitting process for infrastructure and energy projects. The act was passed in September.
• Working with allied trade groups in the western states since 2013 to advance the cause to deter listing the greater sage grouse on the endangered species list, advocating for state control. The DOI announced a decision in favor of industry in September.
Internationally, the team’s work included:
• Submitting amicus curiae (AC) to both US and European courts in support of the drilling industry where cases under review had significant industry impacts. Some briefs were submitted as joint trades;
• Providing commentary and support as requested by stakeholders and government agents in Angola, Cuba and Asia Pacific;
• Intervening with UK tax authorities in respect of unwelcome and uncovenanted tax initiatives. A standing international fiscal group that focuses on UK tax issues was established to secure more proactive engagement with the UK RS.
• Providing detailed authoritative policy and technical commentary to:
o The Australian government on proposed rule-making for well operations. Staged consultation has been favorable to drilling contractors.
o The Brazilian government on proposed well operations rule making, specifically management controls. This continues the constructive relationship that is building between IADC and the regulator ANP.
o The Mexican Commission for National Hydrocarbons Industry (CNH) on permitting and oversight of E&P activity onshore and offshore Mexico. A constructive IADC/government relationship is growing.
o The European Commission on early proposals to extend various machinery and equipment directives to mobile offshore drilling rigs. The extension would add millions of dollars to rig operating costs in EU waters. This ongoing IADC program includes mobilizing all EU operating members.
• Joining a new industry shale gas task force to confront the tide of EU legislation directed at unconventional hydrocarbons.
• Taking a formal seat on a new EU committee aiming to produce a reference document on best available technology for the E&P sector, both onshore and offshore. This task is actually unachievable, and industry (and national regulators) are working carefully to achieve political withdrawal.
• Formally contributing to programs and committees as a contributing associate with:
o International Maritime Organization;
o International Oil and Gas Producers Association;
o International Standardization Organization;
o International Marine Contractors Association;
o European Community Shipowners Association; and
o Other trades and national groups.
• Intervening with several EU member states concerning their execution of the recent EU offshore safety directive, offering support and information on behalf of drilling contractors.
• Strengthening the relationship with the International Regulators Forum (IRF) to maintain dialogue and help shape IRF strategies for our industry. Two formal meetings were held, one in Houston and one in Washington, DC.
• Orchestrating negotiations toward a legal agreement for the joint industry project on improving BOP reliability, bringing operators and OEMs onboard an existing contractor-led program.
The IADC International Development department ensures that IADC continues to provide leadership on a global scale, in all geographies where members have operations. Under the leadership of Mike DuBose, Vice President, International Development, the department has regional representatives based in Europe, Brazil, the Middle East, Asia Pacific and Australasia. The representatives attend IADC chapter meetings and activities in their assigned areas and liaise with government officials and regulators to advocate on behalf of drilling contractor members.
“The network of regional representatives that IADC has assembled to work on behalf of our membership is impressive, with the local knowledge and expertise to successfully advocate for drilling contractor interests,” Mr DuBose said. “In 2015, they each worked on high-profile projects, using their industry contacts and inside knowledge to effect change. We look forward to the coming year to continue to be a voice for the drilling industry on a global scale.”
This year saw the retirement of John Atkinson, who previously served as Regional Director for the North Sea. Derek Hart joined IADC in May in the same role, bringing with him more than 32 years of experience in the offshore oil and gas industry.
Over the course of the year, the department was also active on a variety of issues and participated in a number of workgroups:
• In March, IADC and Firjan co-hosted a workshop on workforce development in Brazil. Firjan is a network of private nonprofit organizations that promote business competitiveness, education and quality of life of the industrial workers and society in the state of Rio de Janeiro. Those who attended heard presentations on IADC projects, discussed best strategies for bringing new people into the industry in Brazil and brainstormed on how to develop competency programs.
• In the Asia Pacific, regional representative Chit Hlaing met with the Ministry of Energy and the Myanmar Oil and Gas Enterprise and attended the 39th IPA Convention and Exhibition in May. Mr Hlaing was a presenter during the 5th Myanmar Oil & Gas Exhibition in January, met with numerous IADC members and continued to advocate on behalf of member interests with respect to the cabotage law in Indonesia.
• In the North Sea, Mr Atkinson and Mr Hart met with other industry groups, including Oil and Gas UK and OPITO. They worked alongside the IADC North Sea Chapter on transposing the EU Directive on Offshore Safety “Consultation Document” into UK legislation, submitting responses concerning the Energy Saving Opportunity Scheme Regulations 2014 and development of a template for non-production installation Oil Pollution Emergency Plan.
• In Brazil, representative Tony Cox attended meetings with the Macae Prefeitura (mayor), presented to Naval staff in Rio de Janeiro on IADC initiatives, attended OTC Brasil and worked closely with IBP (Instituto Brasileiro de Petróleo, Gás e Biocombustíveis) and ABESPetro. He attended a meeting of the International Marine Contractors Association (IMCA) to discuss revisions to IMCA M103 Dynamic Positioning Guidelines and advocated on Brazil tax law changes and well integrity regulations proposed by Brazilian regulator ANP.
The IADC Communication Department is the definitive source for news and technical information for the global drilling and completion industry, whether land or offshore. IADC Communications, through its print, electronic and multimedia products, also provides practical resources for troubleshooting, training, maintenance and study through its series of references and textbooks. In addition, IADC Communications has greatly stepped up the association’s game in public relations.
“Our goal remains to provide the oil and gas industry with every possible resource to help all personnel perform at the highest possible levels of safety and efficiency,” said Mike Killalea, IADC Group Vice President/Publisher. “Though the industry is now undergoing tough financial times, IADC maintains its commitment to provide the best news and information about drilling – to the industry, the public and the regulatory community.”
By the end of 2015, IADC Communications will have delivered six print editions to the 35,000 subscribers of IADC’s official magazine, Drilling Contractor (DC). In addition, the department will have produced 24 issues of the newsletter eNews from DrillingContractor.org, and 12 editions of the Drill Bits newsletter. The group also produced and distributed the IADC Membership Directory, in conjunction with the IADC Membership Department.
IADC Communications is aggressive in multimedia. Through the use of the “enhanced editorial” feature, DC guides readers to additional relevant online information, including video, animations, references, white papers and more, using QR codes and links. Through August 2015, IADC Communications had produced 49 original videos and one full-length virtual panel discussion on IADC WellSharp.
The IADC Bookstore is ablaze with new content on topics from cementing to deepwater well control. “Thanks to our IADC Technical Publications Committee (TPC) and literally hundreds of expert industry volunteers, IADC is regaining its rightful status as an important content creator,” Mr Killalea said. “We look forward to developing more resources, electronic and print, for our industry.”
New and revised IADC books include:
• IADC Drilling Manual, 12th edition: Completely rewritten after 22 years, the 24 chapters of the new Drilling Manual comprise nearly 1,200 pages, with more than 900 illustrations, as well as videos and numerous tables. The book is available through the IADC Bookstore, both electronically and in print. Individual chapters are available in electronic and print-on-demand formats. More than 200 technical experts contributed to this major rewrite.
• IADC Deepwater Well Control Guidelines: The second edition of this award-winning work includes new content on operational risk management, sometimes called process safety, along with additional new and refreshed content on well integrity, well planning, rig operations, equipment, procedures, training and drills, and emergency response. The year-long project was led by Louis Romo, BP, Chairman of the Deepwater Well Control Guidelines Task Force, and Moe Plaisance, Diamond Offshore Drilling (retired), Executive Advisor, with support from nearly 100 top-level experts.
• Led by chairman Dr Leon Robinson, the TPC developed several new peer-reviewed books as part of the IADC Drilling Series. The series is envisioned as a comprehensive set of books on critical topics for drilling. Books completed in 2015 include:
o “Well Cementing Operations,” authored by Ron Sweatman, covers techniques and developments never before published in a single source and provide an overview of basic well-cementing theory, best practices and real-world applications, calculations and problem-solving exercises;
o “Driller’s Knowledge Book,” authored by Dr Robinson and Juan Garcia, provides never-before-published solutions to common drilling problems and methods to improve efficiency during drilling;
o “Coiled Tubing Operations,” by Les Skinner, is a comprehensive review of coiled-tubing equipment, technology and operations. The book is excellent both for non-technical and technical readers.
IADC Communications has also launched the DC Anthology Series, compilations of selected articles from DC. To date, the department has published DC Drill Bits, as well as five yearbooks compiling all articles that appeared in DC during each year. Yearbooks are available as eBooks for 2010 through 2014. DC anthologies are also planned on MPD, HSE&T, fluids, directional drilling, automation, and more.
Other key publications have been revamped for broader distribution, including the IADC HSE Cases for Onshore and Offshore, IADC ISP results for 2010-2014, Asset Integrity and IADC Companion to the 2009 MODU Code. DC
Click here to view the WellSharp VPD.