DRILLBITS – August 2019
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Advocacy
IADC Hosts Washington D.C. Fly-In for Offshore Members
IADC recently hosted a Fly-In in Washington, D.C. for offshore members. Those who attended participated in 22 meetings, visiting with 19 Congressional offices and two executive agencies. They also hosted an educational ‘Snack and Learn’ educational event on Capital Hill for Congressional staff, agency staff, trade associations and anyone else who had an interest in learning more about the latest advancements in offshore drilling technology.
IADC members in attendance included Brady Long, Executive Vice President & General Counsel, Transocean, Ltd.; Roddie Mackenzie, Senior Vice President, Marketing, Innovation & Industry Relations, Transocean; Scott McReaken, Chief Executive Officer, Northern Drilling Group; and James Sanislow, Vice President and Chief Compliance Officer, Noble Drilling Services, Inc. From IADC, Liz Craddock, Vice President, Government and Industry Affairs; Jim Rocco, Senior Director, Government and Industry Affairs, Offshore and Matt Giacona, Legislative Assistant, were also in attendance.
The Snack and Learn featured a 101 on Offshore Drilling presentation, and more than 30 people attended the educational event. The group met with Members of Congress from Louisiana, Alabama; Florida; North Carolina, Virginia; South Carolina, Alaska; Texas; Mississippi; and Nevada. They also met separately with representatives from Customs and Border Protection (CBP) at the Department of Homeland Security and the Bureau of Safety Environmental Enforcement (BSEE) to discuss provisions contained within the Jones Act.
IADC members and staff met with U.S. Senator Lisa Murkowski (R-Alaska) during the Washington D.C. Fly-In.
IADC members and staff met with Representative Bradley Byrne (R-AL) during the Washington, D.C. Fly-In
IADC members and staff met with Representative Garret Graves (R-LA) during the Washington, D.C. Fly-In.
U.S. Supreme Court Rules on State vs Federal OCSLA Jurisdiction
In June, the Supreme Court vacated the 9th Circuit Court of Appeals ruling in the Parker Drilling Management Services, Ltd. V. Newton case. The case hinged on whether or not California’s wage laws were applicable to time spent on “standby” on rigs on the outer continental shelf. In 2018, the 9th Circuit Court of Appeals ruled that offshore workers were entitled to minimum wage and overtime laws of the adjacent state. However, in the unanimous ruling, Supreme Court Justice Clarence Thomas wrote, “All law on the OCS is federal, and state law serves a supporting role, to be adopted only where there is a gap in federal law’s coverage.” Under the Offshore Outer Continental Shelf Lands Act (OCSLA), structures attached to the continental shelf more than three nautical miles from the coast are under federal control and therefore governed by federal law.
Results of DRILLERSPAC Campaign
IADC’s DRILLERSPAC ran a fundraising campaign from May 20-June 20 with a goal to raise $50,000. To date, $31,500 has been received from 56 individuals and 11 companies! Thank you for those contributions. In addition, Latshaw Drilling had 43 employees who committed to supporting the PAC. Thank you Trent and Latshaw Drilling!
In the 2018 midterm elections, the IADC DRILLERSPAC supported 14 candidates in Senate and Congressional races, with 13 of those winning their races, a 93% success rate. The next election cycle includes key races in Texas, Louisiana, Oklahoma, Colorado, Wyoming, Mississippi and Alaska, among others, and IADC will again be supporting candidates who have demonstrated a commitment to supporting energy and the drilling industry.
The DRILLERSPAC was sanctioned by IADC’s Board of Directors to further IADC’s goal of advocacy engagement with federally elected Members of Congress. DRILLERSPAC is not affiliated with any political party. It is organized and conducted on a voluntary, non-partisan basis. DRILLERSPAC is overseen by the PAC Board of Trustees, which is comprised of 10 members – three from offshore companies, three from onshore companies, two from drilling services companies and two IADC employees.
Washington D.C. Updates
House:
Following a long month of oversight hearings, debt-ceiling negotiations, and votes on spending authorization bills, the House is in now in recess until September 9. In a refreshing moment of bipartisanship, the White House and Congressional leaders were able to agree on a two-year budget deal that increased overall spending and lifted the government’s debt-ceiling limit, which dictates how much debt can be incurred by the U.S. Treasury. Following passage out of committee in late June, the U.S. House of Representative’s Natural Resources Committee sent two bills to the House floor that would permanently ban drilling and exploration activities throughout various coastal areas in the Atlantic and Pacific Oceans (H.R. 1941 – Rep. Cunningham), as well curtail drilling and exploration in the Coastal Plain of the Arctic National Wildlife Refuge (ANWR) in Alaska (H.R. 1146 – Rep. Huffman). These bills have been placed on the Union Calendar and will be voted on after the House returns from August recess. Natural Resources Committee Chairman Raul Grijalva continues to express disapproval for DOI and EPA deregulatory decisions, and is expected to continue to push for more oversight of DOI and EPA decisions via subpoena going into the fall.
Senate:
The Senate spent the majority of the last month confirming another 15 Trump Administration nominees. It also passed the defense spending authorization bill, legislation extending the 9/11 Victims Compensation fund, and held several votes expressing disapproval for the Trump Administration’s handling of foreign policy in places like Saudi Arabia and Yemen. The Energy and Natural Resources Committee held 7 hearings in July, covering a range of key issues from U.S. LNG exports to energy innovation and grid security. Going forward, the next legislative item on the Senate’s agenda is passing the bipartisan debt-ceiling and budget increase legislation that was recently passed in House. The Senate Environment and Public Works Committee has released a surface transportation bill that contains significant funding to address climate change. The legislation is aimed at reauthorizing the Fixing America’s Surface Transportation (FAST) Act, which is set to expire in October 2020, and would provide $287 billion in highway spending over the next five years. In regard to climate change, the bill contains provisions aimed at reducing carbon emissions from transportation and improving the resiliency of roads and bridges. Finally, the Senate Finance Committee will soon hold a hearing on the USMCA trade deal, where members will share their angles on the landmark legislation that experts believe will make its way through Congress sometime in September.
White House:
President Trump and his Administration spent much of July focusing on immigration policy on the southern border, tensions with Iran, and negotiating the resumption of trade talks with China. On the trade front, White House officials were quoted in late July as saying they envision legislation to ratify the USMCA trade deal will move through Congress in September, with the goal of getting it passed this year. House Speaker Nancy Pelosi has been in close talks with USTR Robert Lighthizer and President Trump’s top economic advisor, Larry Kudlow, in an effort to pass legislation to ratify the deal. From an agency standpoint, DOI will continue to look to implement its five-year drilling plan as well as its efforts to move the BLM headquarters to Colorado from Washington, DC. On August 21st, BOEM is set to hold the fifth offshore lease sale under the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program, covering a total of 77.8 million acres. EPA and DOI will also continue to battle with environmental groups and Members of Congress looking to exercise increased oversight of the Administration’s environmental rollbacks. In late July, two internal ethics probes were launched to look into allegations that the two agencies have been working to limit public access to policy documents, and that a member of EPA leadership may have acted in the interest of private sector associates.
INDUSTRY NEWS
U.S. Prepares for August Gulf of Mexico Lease Sale
On 18 July, the Department of Interior Secretary David Bernhardt announced that the Bureau of Ocean Energy Management (BOEM) will offer 77.8 million acres for a region-wide lease sale scheduled for August 21, 2019. The sale will include all available unleased areas in federal waters of the Gulf of Mexico. Lease Sale 253, scheduled to be livestreamed from New Orleans, will be the fifth offshore sale under the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Program. Lease Sale 253 will include approximately 14,585 unleased blocks, located from three to 231 miles offshore, in the Gulf’s Western, Central and Eastern planning areas in water depths ranging from nine to more than 11,115 feet (three to 3,400 meters).
More details about the sale can be found on the Department of Interior’s website.
EU Commission Elects New President
On 16 July, Ursula von der Leyden, a center-right Christian Democratic Union candidate, was elected as the next EU Commission President. She is the first woman to service in the post, and her term will begin in November 2019 for a five-year term. Assuming ratification by the Parliament, she will be the first German to hold the post since 1967. The focus of her presidency will be centered on the following priorities referred to as the Political Guidelines:
- A European Green Deal
- An economy that works for the digital age
- Protecting the European way of life
- A stronger Europe in the world
- new push for European democracy
UK Oil & Gas Authority Launches 32nd Offshore Licensing Round
The UK’s Oil and Gas Authority is offering 768 blocks or part-blocks across the main producing areas of the UK Continental Shelf (UKCS) as part of its 32nd Offshore Licensing Round. The blocks include acreage in the central, northern and southern North Sea as well as West of Shetlands. The application closing date for the licensing round is November 12, and decisions are expected to be made in the second quarter of 2020.
More details can be found on the Oil & Gas Authority’s website.
The Environmental Partnership Issues Annual Report
The Environmental Partnership recently issued its 2019 Annual Report, Improving the Natural Gas and Oil Industry’s Environmental Performance. The report highlights the efforts of the participating companies in 2018 to fulfill the three key program principles: Taking Action, Learning, and Collaborating.
The Environmental Partnership was formed in December 2017 by 26 natural oil and gas production companies committed to continuously improving their environmental performance. In January 2018, the Partnership implemented three programs that target emissions through collaboration, proven methods and advanced technology. The programs consist of Leak Detection and Repair; Focus on High-Bleed Pneumatic Controllers; and Improving the Manual Liquids Unloading Process. 58 companies participate in the Partnership and the newly-issued Annual Report highlights their progress on the three identified programs.
The full report can be accessed at The Environmental Partnership’s website.
IADC Attends TxDOT Freight Planning Team Meeting
In cooperation with the Permian Road Safety Coalition, the Texas Department of Transportation (TxDOT) Freight Planning Team recently held a transportation forum in Midland, Texas. IADC attended the meeting, the purpose of which was to gain insight into the most critical challenges, needs and opportunities for improving transportation in the Permian Basin Region. The information collected will play a critical role in the development of TxDOT’s Regional Freight Plan to be released in 2020. IADC looks forward to participating in this important initiative and working together with TxDOT to improve road safety in the Permian Basin. If you would like to hear more about this initiative, it will be discussed during the IADC Rig Moving Committee meeting to be held on 12 September in Odessa, Texas.
To register to attend the September Rig Moving Committee meeting, please visit IADC’s website.
ACCREDITATION
IADC Accreditation Department Successfully Passes ISO 9001:2015 Recertification Audit
In February, IADC’s Accreditation Department successfully passed the ISO 9001:2015 recertification audit with zero findings. IADC remains the only well control accrediting body to hold ISO 9001:2015 certification, demonstrating the association’s ability to consistently provide services that meet customer requirements while keeping a focus on quality and integrity. Programs that fall under the ISO certification include RigPass, SafeLand, SafeGulf, WellSharp, WellCAP Plus, DIT, Competence Assurance, Gateway and Crane-Rigger.
The ISO 9001 QMS standard requires that a company identify and describe processes using business metrics, the purpose of which is to better manage and control business processes. The ISO 9001 family addresses various aspects of quality management and contains some of ISO’s best-known standards, which provide guidance and tools for companies and organizations that want to ensure that their products and services consistently meet customer’s requirements. ISO 9001:2015 sets out the criteria for a quality management system and is the only standard in the family that can be certified to. This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement.
For more information, please contact Brooke Polk at Brooke.Polk@iadc.org.
IADC COMMITTEES
Supply Chain Committee Names New Leadership
The IADC Supply Chain Committee recently elected new committee leadership. Tom Steiner, EnscoRowan was named Chair and Brad Green, EnscoRowan was named Vice Chair. The next Supply Chain Committee will be held on August 14 at the IADC office in Houston. All Supply Chain Committee meetings are open to IADC Contractor Members only.
More information about the committee can be found on IADC’s website.
INDUSTRY RESOURCES
Register Now for DC’s Virtual Panel Discussion on Automation and Digitalization
Drilling Contractor will air a free webcast on 27 August looking at how the industry can accelerate and sustain the learning curve through digitalization and automation. Panelists on this virtual panel discussion (VPD) are:
- Rodrigo Gallo Covarrubias, Digital Drilling Business Manager, Schlumberger;
- Victor Figueroa, COO, Point Energy Partners Operating;
- Riaz Israel, Team Lead – Wells Technology, BP; and
- Linda Hsieh, Drilling Contractor Editor/Publisher (moderator)
As the world embraces Industry 4.0, the drilling industry is navigating its own journey through the digitization and automation space. Questions often asked are: “Do we know what’s the optimum thing to do?” and “Are we doing it?” This VPD, sponsored by Schlumberger, will discuss some of the notable advances that have been achieved by the industry and what that tells us about where we need to go next.
Register here: http://www.drillingcontractor.org/vpd-registration-automation
For questions contact Linda Hsieh, linda.hsieh@iadc.org.
IADC Bookstore Enhanced and Upgraded
The IADC bookstore recently completed a thorough update and streamlining process to further advance the overall user experience. The print and electronic bookstores are now combined into one store and allow customers to quickly link to the desired choice and format of desired books, contracts, daily drilling reports, and streaming media. Top-selling items, including the 2T6 Drilling Report, the IADC Drilling Manual and the Drillers Knowledge Book, are featured.
IADC has worked with its partners, including Techstreet and Moxie Media, in making the user experience much easier while offering new products and delivery methods. The bookstore will continue adding relevant content for our users and customers over the coming weeks.
Android App for Mission Petrohouse Rolled Out
IADC’s Drilling Matters initiative to educate the public and dispel myths and misconceptions about our industry hit the ground running in 2019, with the roll out of an Android app for its popular online game Mission Petrohouse.
Mission Petrohouse players steer a retro rocket ship through a home and “zap” everyday products created from petroleum to fill the rocket’s fuel tank. The game tracks the number of items zapped, and provides helpful information about each item.
The new app can be downloaded from Google Play at https://play.google.com/store/apps/details?id=com.iadc.hydrohouse
Drilling Matters is available on line at www.DrillingMatters.org.
For more information about Drilling Matters, contact Amy Rose (amy.rose@iadc.org).
IADC Lexicon Featured Term for August 2019
The IADC Lexicon (IADCLexicon.org) is a compendium of upstream-related terms, which, unlike conventional glossaries, are official definitions drawn from legislation, regulation and regulatory guidance, standards (global, national and regional), and IADC guidelines. Terms often have multiple definitions from different sources.
This month’s Featured Term is:
“Water Supply” (Source: Oil and Gas Wells, Pennsylvania Code, Title 25, Chapter 78, December 2012.):
Water supply—A supply of water for human consumption or use, or for agricultural, commercial, industrial or other legitimate beneficial uses.
(click the link to read the full definition on the IADC Lexicon.)
Accreditation Updates
RigPass
WellSharp
DIT
Upcoming Events
Rigs Receive ISP Certificates
For certificates received since last LTI (in years):
New IADC Members
IADC welcomes 18 new members:
DRILLBITS Volume 29, Number 8
Kevin Neveu, Chairman • Jason McFarland, President • Amy Rose, Editor
All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.
Send comments/questions to Amy Rose at amy.rose@iadc.org.
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IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.