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58th Annual Meeting - San Francisco June 13-16, 2012

Downhole Drilling Problems: Drilling Mysteries Revealed!

Kelli Fereday, BP

AAPL - Copyright 2012. All Rights Reserved.

Todays Goal
Drillers have a term for downhole problems that can not be diagnoosed or understood:

The objective of this session is to turn these mysteries into understandable and solvable opportunities for improvement

AAPL - Copyright 2012. All Rights Reserved.

Downhole Drilling Problems

Industry Prevalence Types of Drilling Trouble Time Impact on Well Safety, Time, and Cost Causes and Diagnosis of Drilling Problems Examples and Remedies for Common Problems
Downhole Failures Stuck Pipe Lost Circulation Wellbore Stability Well Control Q&A

AAPL - Copyright 2012. All Rights Reserved.

Typical Drilling Time Breakdown

Making Hole!
Invisible Lost Time 25% Non-Productive Time 25% Productive Time 50%

Inefficient

Drilling Problems

Impact on the Industry

Biggest Impact - HSE
Many drilling problems are also associated with increased risk to personnel
Example: Stuck Pipe May Require Jarring which can lead to dropped objects

Example: Lost Circulation may lead to Lost of Well Control, resulting in potential Damage to the Environment, Fire and/or Harm to Personnel

Impact on the Industry

Efficiency
Estimates are as much as 10-40% (25% on average) of drilling time is non-productive time! US Rig Count ~1980 rigs, projected need by 2017 is 2500, or approximately a 25% increase Imagine being able to close that gap through improvements in drilling performance alone. US E&P Budget is about $170BB annually - > $$$

Baker Hughes Rig Count www.bakerhughes.com

How do we diagnose NPT?

Drilling Reports
Rig Morning Reports Mud Reports Cuttings Analysis

Downhole and Surface Measurements Benchmarking

Sources of NPT Deepwater Industry Example

Downhole Problems

Equipment Problems

Top Sources of Downhole Problems

1. Downhole Equipment Failures 2. Downhole Cement Problems 3. 4. 5. 6. Stuck Pipe Lost Circulation Wellbore Stability Well Control
Likely Related to Geology

Downhole Equipment Failures

A single equipment failure can
Compromise the integrity of the well Cost Millions of Dollars to Repair

Common Equipment Failures

Casing Drillpipe Downhole Motors Downhole Measurement Tools
MWD LWD Vector Motors www.nov.com

Downhole Cement Problems

Cement Left in Pipe
Premature Setting Surface Equipment Pump Failures

Cement Not Setting Properly

Cement never sets Bad Shoe or No Shoe Test Cement allows for gas migration Cement seeps away into faults or fractures Partial or Total Losses

Picture from Halliburton website: generic example of a cemented wellbore

Stuck Pipe
1. Differential Sticking
Pressure-related The pipe is sucked up against the formation due to a difference in pressure

2. Mechanical Sticking
A mechanical obstruction Could be from the formation, wellbore geometry, or tool failure

Differential Sticking A Pressure Problem

Mechanical Sticking Dirty Wellbore

Too many solids in the wellbore!
Indications:
higher pump pressure fill on bottom more pull required to move pipe excessive cuttings on shakers restricted circulation
Formations Fall in on the pipe!

Why?
Unconsolidated Formations Poor Hole Cleaning

Prevention
maximise flow rates and rpm Better mud properties drill more slowly

Mechanical Sticking Obstructions

Obstructions
Indications:
more pull required to move pipe can still circulate Increased torque Unable to make hole
Tool Failures or Junk in Hole

Why?
Junk in the Wellbore Hole Geometry

Prevention
equipment QA/QC housekeeping correct drillstring/BHA design
Doglegs or Underguage Hole

Stuck Pipe How do we get free?

Pull Harder (but dont break it) Jar on Pipe Cut Pipe and Fish Increase or decrease circulation Pump other types of fluids or chemicals

Lost Circulation
Conventional drilling utilizes continuous fluid flow down the drillpipe to:
Remove cuttings Maintain pressure Cool the bit

Key indicator in understanding what is happening downhole Circulation must be maintained at all times If the circulation is interrupted because fluid is flowing into the formation, that is called Lost Circulation

Lost Circulation - Causes

Induced

Lost Circulation - Solutions

LCM Prevention

Wellbore Stability
An unstable wellbore can result in:
Stuck Pipe Lost Circulation Loss of the entire wellbore

2 Main causes are:

Chemical Instability
Reactive Formations

Mechanical failure of wellbore

Faults Insufficient Mud Weight

Well Control
Well Control means the ability to keep the hydrocarbons where they belong at all times in the ground. Common terms
Taking a Kick Blowout

Most dangerous downhole problem

Well Control
What causes loss of well control?
Multiple Barrier Failures

Equipment Failures Loss of fluid pressure in the pipe counteracting the natural pressure existing in the formation Industry Methods dealing with Well Control
Wellbore Monitoring Well Kill Methods - how to safely remove hydrocarbons from the wellbore
Circulating Methods Non-circulating Methods

Mud

BOP

Pressure

Industry Challenges
The Great Crew Change
Peak Age of Petroleum Engineers
80 60 40 20 2000 2006 2012 43 50 60
Pete Stark, VP of industry relations for IHS

Well Complexity

Technology Game-Changers
Rig Automation Advanced Downhole Tools Real-time montioring Managed Pressure Drilling Simulators for Training

www.weatherford.com

Q&A