BP/Maersk look outside industry to develop HPHT drilling technology

By Astrid Wynne, contributing editor

A main challenge in Maersk’s project with BP will be to create a full package for HPHT, particularly with well control, Maersk Drilling chief technical officer Frederik Smidth said.

A partnership between BP and Maersk Drilling to develop conceptual engineering designs for HPHT drilling technology is looking beyond industry norms. “Higher pressure can be taken care of with more steel, to put it in simple terms, but the high temperatures have implications on the seal technology within the risers, the material technology inside the BOP and the rams to take the high temperatures. That’s where we might have to look a little bit outside our industry for solutions,” Frederik Smidth, chief technical officer at Maersk Drilling, told Drilling Contractor.

As the project is just beginning – the two companies announced their partnership agreement in February – much still needs to be explored. However, Mr Smidth said he already sees that one major challenge will be to create a reliable package for HPHT, even if certain technology components are already available. Major vendors, for example, have development of 20,000-psi well control equipment and driller risers under way.

“I see the main challenge is to get the full well control package safe and efficient to operate. We will need a hookload capacity beyond the current 2.5 million lbs for these types of wells, but the challenge is finding the well control and lifting structure equipment and the flexible hoses and connections used in the drilling system.”

Under Maersk’s agreement with BP, the initial studies will outline the basic design criteria, such as hookload capacity and the vessel size and type that will be capable of operating in a 20,000-psi and 350?F environment, as well as the safety systems needed to protect and train crews. Phase 1 of the project is expected to last approximately one year, with a potential extension into a contract for a finalized design that could culminate in an order by late 2015 or early 2016.

“The first units would begin drilling the US Gulf of Mexico (GOM) in 2018 or 2019, with possible additional requirements in Egypt and Azerbaijan if a contract is awarded,” Mr Smidth said.

He added that this joint project with BP is also providing Maersk Drilling with valuable insight into the deepwater cost structure from an operator’s perspective. Knowledge found within BP’s deepwater well database, for example, is helping Maersk to design systems to reduce nonproductive time.

“The total cost of drilling a deepwater well in the US GOM is around $1.2 to $1.3 million a day. We, as the drilling company, account for only 50% of the costs for an oil company,” Mr Smidth explained. “It is interesting to understand the other half of those costs, like for example the 30% to 40% nonproductive time when drilling deepwater wells. We expect to gain a knowledge that can be used in more traditional rig designs. The aim of the process is to build rigs which are safer, faster and cheaper to operate.”

Going forward, Mr Smidth sees the potential for more collaborative technical projects between drilling contractors and oil companies. “For the new frontiers – 20k, Arctic Sea, Barent Sea, the high H2S drilling in the northern Caspian – I think this kind of cooperation is essential. Drilling costs are increasing, and we can only reduce them by understanding each other’s cost structure.”

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2013 OTC Spotlight on New Technology Awards

The Offshore Technology Conference has announced the 15 winning technologies that will receive the 2013 Spotlight on New Technology Awards recognizing innovative technologies significantly impacting offshore exploration and production.

Winning technologies are selected based on five criteria:

• New: The technology must be less than two years old.

• Innovative: The technology must be original, groundbreaking and capable of revolutionizing the offshore E&P industry.

• Proven: The technology must be proven, either through full-scale application or successful prototype testing.

• Broad interest: The technology must have broad interest and appeal for the industry.

• Significant impact: The technology must provide significant benefits beyond existing technologies.

ABB’s Onboard DC-Grid is an innovative marine technology that uses direct currents to transport energy to different consumers onboard the vessel. It enables variable speed operation of generator sets, significantly reduced fuel oil consumption, improved emissions reduction, reduced maintenance and new operational modes with a more responsive vessel system.

Baker Hughes’ FASTrak logging-while-drilling (LWD) fluid analysis sampling and testing service provides knowledge of reservoir fluid properties that enhances critical decision-making about the reservoir. FASTrak addresses the growing need to acquire fluid samples in LWD environments, such as horizontal or extended-reach wells, resulting in significant time and cost savings.

DOW NEPTUNE Advanced Subsea Flow Assurance Insulation System, developed by Bayou Wasco Insulation, Dow Oil & Gas, PIH and Trelleborg Offshore, is a simple, robust, end-to-end flow assurance solution offering enhanced performance safety with its two-layer application. It protects equipment, line pipe and field joints across a wide application and in-service temperature range, which runs from-40°C to 160°C, or -40°F to 320°F, withstanding hydrostatic compression greater than 400 bar.

FMC Technologies and Sulzer Pumps have developed a high-speed, helico-axial multiphase subsea boosting system optimized for subsea applications. This system combines field-proven pump hydraulics from Sulzer Pumps with FMC Technologies’ permanent magnet technology from Direct Drive Systems for less maintenance with greater speed, efficiency and power.

GE Oil & Gas has developed the next-generation technology for shearing and sealing wellbore tubulars. The patent-pending Blind Shear Ram is designed for use with GE’s ram blowout preventers in offshore drilling. It provides an industry-first capability to shear some 6 5/8-in. drill pipe tool joints while achieving a wellbore seal holding up to 15,000-psi pressure differential.

GE Oil & Gas’ RamTel Plus provides operators with a direct method of determining ram position. The ROV Display allows the ROV to read stack sensor data, including wellbore temperature and ram position subsea indicators.

FMC Technologies’ Condition and Performance Monitoring (CPM) is a surveillance system that enables proactive maintenance of subsea production and processing systems associated with a 24/7 collaborative expert environment for diagnosis and problem solving. CPM combines continuous monitoring of sensors and subsea instrumentation with a historic database to identify fault condition and deviations from normal operating conditions.

Reelwell’s RDM-Riserless system enables drilling in 9,843 ft (3,000 meters) water depths from third-generation drilling units due to the reduced weight related to omitting the riser. This is possible because the cuttings are transported to surface inside the dual drill string, i.e., the dual drill string acts as the riser.

Wärtsilä has developed a system to turn VOCs or associated gases that were previously considered as waste into a source of energy. The Wärtsilä GasReformer enables self-sustaining power generation for the offshore operation. It provides cost savings and environmental sustainability.

SBM Offshore’s Drilling Riser Trip Saver is a rail-mounted transport system that relocates a suspended drilling riser with a drilling riser tensioner system and surface blowout preventer in place. The apparatus and method for drilling multiple subsea wells consecutively saves time and cost and reduces risk by avoiding removal of the suspended drilling riser from the well bay.

Bredero Shaw’s Mobile Robotic Cutback System is an innovative end machining technology for insulated pipe. It replaces manual processes that form the cutback, including wire brushing, grinding and scraping. The technology is safer, quieter, requires less labor and produces consistent high-quality cutback profiles while generating recyclable waste.

WeST Drilling Products’ Continuous Motion Rig (CMR) is a fully robotized rig and offers continuous drilling operations. CMR reduces overall drilling time by up to 50% and facilitates managed pressure drilling. CMR substantially reduces downhole problems associated with differential sticking and pressure fluctuations and eliminates personnel safety risk.

Statoil’s remote-controlled hot tap operation consists of a robot welding a T-piece on to the pipe while gas is flowing through it. Afterwards, a remote-controlled drilling machine will drill holes in the producing pipeline, with no effect on pressure and production.

Superior Energy Services’ Complete Automated Technology Systems (CATS) is an onshore and offshore completion services rig that uses remote-operated or pre-programmed robotics to control various completion components, including a snubbing unit, BOP/well control stack, pumps, circulation tanks, top drive, closing systems and pipe handling systems as part of one unit.

Welltec’s Well Cutter enables efficient drill pipe and casing recovery without explosives. No shavings are generated, a smooth surface re­mains after the cut and e-line conveyance ensures accurate depth control. Click here to read about the Well Cutter from the Sept/Oct 2012 DC.

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Environmentally friendly proppant technology to improve hydraulic fracturing efficiency

Preferred Sands uses non-phenolic, resin-coating technology at its plant in Genoa, Neb. The technology is designed to be more environmentally friendly and efficient than conventional phenolic-based resins and has been introduced in five US basins, including the Permian, Bakken, Mid-Continent, Utica and Eagle Ford, and in central Alberta, Canada. Preferred Sands plans to open a second processing plant in May.

By Katie Mazerov, contributing editor

Preferred Sands has launched a non-phenolic, resin-coating technology designed to be more environmentally friendly and efficient than conventional phenolic-based resins.

The technology, developed in collaboration with Dow Chemical Company, has been introduced in five US basins, including the Permian, Bakken, Mid-Continent, Utica and Eagle Ford, and in central Alberta, Canada, said Preferred Sands founder and CEO Michael O’Neill. The product has been used by more than 50 operators in more than 100 wells.

“This innovative process allows for coated sand to be produced in a manufacturing process that requires less energy while minimizing environmental impact compared to current phenolic resins,” he said. “It also provides the industry with an outstanding performance-to-cost value, enabling users to substantially improve operations while still curtailing expenses.”

The resin was developed to meet three critical needs of the oil and gas industry. “Not only does it perform well under a range of conditions and depths, it is also cost-effective and contributes to the sustainability of the drilling process,” Mr O’Neill continued.

Phenolic-based resins, which contain phenol and formaldehyde, can leach into well water or impact viscosity or cross-linking fracturing fluids used to place the proppant, he explained. In addition, partially cured phenolics often fully cure before the fracture has the opportunity to close and force particle-to-particle contact, thus are unable to create a strong consolidation or bond.

The non-phenolic products do not bond until they achieve closure stress, so they can hold all the bond strength ability to consolidate in the fracture, resulting in greater efficiency and reduced cost.

The technology marks two new product lines for the company, each addressing specific well conditions. The RCS Garnet is designed to control flowback in low-temperature reservoirs and includes a built-in ability to bond at low temperatures that does not require additional chemical treatment. “Phenolics came out of the foundry industry and were made for very hot temperatures, so they struggle to perform at lower temperatures,” Mr O’Neill explained.

Activators, which can be added to conventional phenolic resins to help them create a low-temperature bond, often cause the surface of the resin to deform under stress and so perform with mixed results. “Weakening the surface lowers the conductivity of the phenolic,” Mr O’Neill said. “The RCS Garnet doesn’t require an activator, so it holds its strength and conductivity and will bond all the way to down to below 80°F,” he said.

A conveyor belt transports sand before it is coated with Preferred Sands’ non-phenolic resin technology.

The RCS Pearl was developed to deliver better bond strength and flowback protection in hotter, deeper wells. Preferred Sands expects to introduce two additional products in September, Mr O’Neill said. The company also will open a second processing plant in May and has been approached by operators in several countries interested in using the non-phenolic resin technology. Germany and several other European countries don’t allow phenolics to be pumped into wells.

“The future of hydraulic fracturing is going to be about who delivers the most value for clients and the greatest technical efficiency, and the ability to innovate and create new products,” Mr O’Neill said. “For hydraulic fracturing to be sustainable for the long term and stand up to scrutiny, industry needs to continually look at improving all aspects of the process.”

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‘Virtual presence’ technology enhances productivity safety

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Landale Cranfield, regional wells skillpool advisor for Sarawak Shell Berhad, demonstrated a virtual presence technology during a presentation at the 2012 IADC Drilling HSE Asia Pacific Conference on 26 April in Singapore. In the first video, a connection was made with employees at a Singapore yard, showing how the real-time technology can be used to pinpoint BOP issues. In the second video, a connection to an office in Canada showed how the technology can be used for HSE inspections, investigations and verifications.

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By Katie Mazerov, contributing editor

Virtual technology is making the oil patch smarter. Driven by the continued push into unconventional and deepwater environments and the anticipated Big Crew Change, Shell is using a virtual presence system that provides real-time communication between rig personnel and technical experts thousands of miles apart. y Using an explosion-proof camera, a  satellite and laptop computer or tablet, the technology is proving beneficial for reducing risk and nonproductive time (NPT), especially for the company’s operations in remote or hazardous locations, said Landale Cranfield, regional wells skillpool advisor (UIA) for Sarawak Shell Berhad.

“We need to use the expertise we have in a smarter way, and this is a technology that can help us achieve that,” Mr Cranfield  said in a presentation at the 2012 IADC Drilling HSE Asia Pacific Conference & Exhibition in Singapore, 25-26 April. “Over the years, most of the skills we’ve needed were in traditional oil and gas locations, with workers clustered in key locations,” Mr Cranfield said. “But with the Big Crew Change coming, experienced people on location will be leaving the industry. There is a mismatch between the location of skills and ‘new’ oil and gas locations.”

At the same time, there is less interest in sending technical experts to remote and/or hostile locations. “With smart well technology, we’re doing things more efficiently, but if something goes wrong on a rig, we still sometimes have to wait several days for the experts to arrive,” he continued. “We need to bring workflows and information to the professionals instead of doing it the other way around. Virtual presence completes the loop.”

With Shell’s virtual presence system, a rig worker can use a camera to explain a problem with a drill bit. The information is transmitted to a technical expert thousands of miles away.

Initially launched by Shell Brunei, the company finds the system has potential for operations throughout Southeast Asia and ultimately across the entire Shell group of companies, from offshore platforms to remote jungle locations, Mr Cranfield said. “Implementation of this system can reduce travel costs, improve health, safety, security and environment  performance and allow experts to be available when required to advise on repairs to broken equipment, hence reducing downtime and improving availability of equipment.”

Completing the loop

To demonstrate how the system works, Mr Cranfield made a live connection during his presentation with a Shell employee’s camera on a rig in the Cameron yard in Singapore to show how issues with the blowout preventer (BOP) can be resolved. Using real-time streaming multimedia via WiFi, images and information about the BOP operation can be transmitted from the workplace back to an expert, or group of experts, who can view the situation on a laptop.

Another live connection, this one with an operation in Canada, showed how as-built drawings can be transmitted to rig personnel to ascertain whether equipment, such as piping, is up to date and being built correctly. “In this way, the system can be used for HSE inspections, investigations, and to verify the systems on the rig and what the workers are doing,” Mr Cranfield explained. “This is especially important with the large number of people coming into the industry whose experience levels are not as high.”

The virtual presence technology also has potential for field-based training and staff development, particularly in locations where access is difficult, Mr Cranfield said. Information also can be recorded and used to develop training videos.

Although not currently approved for Zone 1 environments (operations with the presence of hazardous gas), industry demand could drive the development of that capability, he said. Security provisions are being built into the system to help ensure the establishment of onshore connectivity through company firewalls. “Information technology personnel need to get their minds around the whole idea of data streaming and information security,” he noted.

But mindset stands as the biggest threat to industrywide adoption, Mr Cranfield believes. “This system is designed to help people do their jobs better. It involves accepting new ways of working, both onsite and by the experts.”

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Are we laggards in technology adoption?

By Mike Killalea, editor & publisher

We pride ourselves on innovation, but are actually laggards at technology adoption.

“The oil and gas industry tends to have a technology adoption cycle of roughly 30 years from concept to 50% market penetration,” remarked Dustin Torkay, Seadrill, IADC Advanced Rig Technology (ART) Committee vice chairman-Future Technology, adding that this is an eight-year process in the medical industry. Mr Torkay is the driving force behind our 12 June ART Workshop on technology adoption. The afternoon workshop will convene in Barcelona the day before IADC World Drilling 2012.

Tom Bates, Lime Rock Partners, an ART workshop panelist, agrees that the pace of technology adoption is “painfully slow.” Mr Bates should know. His long career prior to joining investment firm Lime Rock as a managing director began with Shell and includes leadership positions at Baker Hughes, Weatherford Enterra and Schlumberger.

“There is almost an order of magnitude difference from other industries,” he said. “It’s a bit of a conundrum, (because) overall, our industry is not risk averse.”

Stagnation Generation

One case in point is stagnation in directional MWD, which, according to sponsors of a new Drilling Engineering Association joint industry project (JIP), has not appreciably advanced in a generation.

Now, before MWD partisans rouse to churn out indignant emails championing their companies’ achievements, let me stress that MWD overall has seen many advances. But, according to the DEA JIP sponsors, the process for directional MWD has barely budged in 30 years.

“The perception is that it’s good enough, because we are able to get to the production target,” said Robert Estes, Baker Hughes, which, along with ConocoPhillips and Bench Tree Group, are current sponsors.

The need for more precise directional MWD is pressing, Mr Estes says. A next-generation MWD tool drilling a relief well could reduce time to intersection and enhance accuracy. For infill drilling amid a spider’s web of directional wells, avoiding collision through pinpoint placement might prevent a blowout. For steam-assisted gravity-drainage wells, more precision can maximize production by optimizing well placement.

The organizers are seeking another seven or so JIP participants, at about $30,000 each. (Click here for more on the JIP.)

Dragging Innovation

The question remains. Why does innovation drag? ART workshop participant Jan Brakel, manager for wells R&D with Shell, suspects that with activity booming, the status quo suits most. “Is there a need to innovate?” he asks, though he himself is a strong proponent of change.

He points out that, rig newbuilding notwithstanding, a plethora of ancient equipment still keeps turning to the right.

“In general, as a drilling industry we have a significant catch-up opportunity in terms of technology,” Mr Brakel said.

Business Units Limit Vision

Mr Bates suggests that innovation began to flag when major oil companies switched to the business unit model.

“Business units are great for giving objectives and giving senior manager accountability for results,” he said.

On the other hand, a business-unit leader’s focus on that narrow bottom line is hardly an incentive to try something new, expensive and with potentially large downside risk.

Independents harbor a more entrepreneurial spirit, Mr Bates noted.

“It wasn’t a supermajor that developed the Barnett, with 25 frac jobs and 15,000-ft laterals,” he pointed out.

A corollary of narrowed vision is a dearth of test sites, he added.

“One of the frustrating things for me,” Mr Bates said, “is the inability to get products in the field and tested. That is a real barrier to progress.”

Mr Bates urges industry to develop a cooperative means to test promising technologies without jeopardizing wells, thereby helping to move technology forward.

“At the end of the day, technology works.”

Mike Killalea can be reached via email at mike.killalea@iadc.org.

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New Baker Hughes Research and Technology Center in Brazil Demonstrates Next Phase in Network of Global Technology Solutions

HOUSTON, TEXAS – Oct. 7, 2011 – Baker Hughes (NYSE: BHI) announced today the opening of a new research and technology center in Rio de Janeiro designed to enable the development of technologies and solutions to unlock the full potential of deep water and pre-salt reservoirs.

“Baker Hughes’ new research facility on the Federal University of Rio de Janeiro will open up a new level of collaboration with our customers and Latin American universities. Together we will build a new generation of highly specialized wellbore construction tools and services to economically produce the pre-salt reservoirs in offshore Brazil,” said Andy O’Donnell, president of the Western Hemisphere for Baker Hughes. “The new Baker Hughes Rio Research and Technology Center in Brazil represents the next phase in the expansion of our global technology network and strengthens our capability to provide local solutions.”

The Brazil center is one of 10 major research and technology facilities globally situated in the U.S., U.K., Russia, Germany and Saudi Arabia. The centers focus on providing solutions to oil and gas challenges specifically related to applications engineering and geosciences. In addition, the facilities enable Baker Hughes to provide support for field testing of new products and regional customization of existing commercial products.

By the end of 2012, the Rio Research and Technology center is expected to create 45 new jobs and the company will continue to add to its workforce by recruiting regional scientists and engineers and other professionals to the center as new projects are initiated.

Baker Hughes is already partnering with the Federal University of Rio de Janeiro and Petrobras to consult on the design, construction and operation of a full-scale laboratory drilling simulator located near the university. Baker Hughes will reproduce field-drilling conditions in a controlled environment so that the drilling process can be monitored, characterized and improved.

Amended on Nov. 8, 2011 to reflect Baker Hughes’ Rio Research and Technology Center in Brazil is located on the Federal University of Rio de Janeiro.

# # #

Baker Hughes provides reservoir consulting, drilling, formation evaluation, completions, pressure pumping and production products and services to the worldwide oil and gas industry.

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RC Baker Technology Vessel Exceeds Customer "Wish List"

HOUSTON, TEXAS (January 28, 2000) – Baker Oil Tools celebrated the launch of its latest technology vessel – MV RC Baker – in December with festive customer gatherings in Houston and New Orleans. Named for the founder of Baker Oil Tools, the 224-ft, dynamically positioned vessel was designed and built to provide the safest, highest-caliber pumping and stimulation support for the Gulf of Mexico operators.

The RC Baker is particularly well suited to support the company's much-demanded FRAQ PAQ, H2O FRAQSM, H2O PAQSM, and other stimulation processes, as well as horizontal gravel packing and multiple sand control projects. Key enabling features include:o 1 million pounds proppant capacity, with 250,000 pounds in four above-deck silo compartments and 750,000 pounds in five pneumatic below-deck tanks

o 8,000 HHP capability between five independent pumps, with capacity for increasing HHP as required

o 189,000 gallons of batch mix capacity

o Large open deck space that supports acidizing, solvent, nitrogen, CO2 and other large-capacity operations

o Computer-controlled fluids mixing and pumping to ensure the most accurate and efficient fluids and placement of stimulation treatments. Designed with operators in mind

The Holiday Season launch of the RC Baker was particularly appropriate, given the fact that design criteria for the vessel were based on a customer wish list compiled through surveys and one-on-one interviews. Key among requests fulfilled by the RC Baker are the convenient command center, laboratory and stateroom, and satellite-based remote data transmission capabilities that allow wellsite data to be transmitted to onshore locations (including clients' offices) in real time.

Operators had expressed a desire for more room in the command center and larger computer monitors. In response, the RC Baker includes an 816-sq-ft, stern-facing command center/laboratory on the "02" deck that provides a large working area with excellent visibility of on-deck operations. The command center houses the computers required for the ship's network, job monitoring and display. Among the hardware are seven large-screen monitors (five 21-in. and two 17-in. CRTs). Treatment data is displayed on the large-screen monitors, while a mimic board on the starboard wall of the room displays actual suction and discharge manifold and valve positions for all critical systems. The valves can be controlled from the mimic board.

The RC Baker is believed to be the only technology vessel in the Gulf with the Quality Control (QC) laboratory on the same deck level as the control room. The fluids laboratory is located adjacent to the command center for quick access to the facilities and vital test data. Also adjacent to the command center is a dedicated stateroom for the operating company representative.

Unique satellite service makes ship-to-shore communications "as easy as with the office next door". As part of Baker Oil Tools' efforts to make all communication systems aboard the RC Baker the most reliable and efficient possible, ship-to-shore communications are enabled by a unique, 24-hours-a-day, 7-days-a-week satellite link with 128k bandwidth for four phone lines and a fulltime network connection. "It's as easy as communicating with the office next door, and you don't get thrown off the network during peak traffic," commented one happy customer.

The satellite servicer provides a primary satellite and a smaller, alternate satellite in a different azimuth location, so service can continue uninterrupted even when the boat is positioned such that the rig structure blocks the direct path to the primary satellite. Backup communications are provided by cellular phone.

Advanced dynamic positioning and extra safety features

Safety drives every aspect of the design and operation of the RC Baker. The vessel's advanced dynamic positioning system uses a global positioning system (GPS), with redundancy provided by radio frequency and manual mode. The 800-megahertz radio frequency communications allow the boat to stay in tandem with the rig's range of movement at all times.

A purpose-built, 12-in. steel I-beam grid framework on the main deck is connected to the ship's frame to secure the frac pumps, blender, chemical additive system, proportional mixing unit, and accessory support equipment. The grid, with its sturdy fiberglass decking, also serves as a false floor, under which pipes, hoses and cables are run. As a result, the deck is kept free of clutter and provides safe footing for the crew.An elevated landing platform at the rear of the vessel provides a safe place to land the personnel transfer basket. An elevated catwalk provides a safe, convenient passageway between the landing platform and crew quarters.

An additional safety feature of the RC Baker is its dust collection system, which ensures that no dust is emitted from sand stored or used on the vessel. Fluid systems and additives are environmentally friendly.The RC Baker joins the MV Republic Tide, which was commissioned by Baker for Gulf of Mexico marine support operations in 1998, and like its predecessor, it is outfitted for speed, flexibility and maximum stability in inclement weather.

Baker Oil Tools is a world leader in total completion, workover, and fishing solutions that help exploration and production companies optimize their hydrocarbon recovery investment. Baker Oil Tools solutions are based on advanced downhole and surface technology, practically applied, to help operators produce at the highest levels and the lowest cost throughout the life of the reservoir.

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Baker Oil Tools Develops Expandable Sealing Technology

HOUSTON, TX (November 6, 2006) – Baker Oil Tools recently added metal-to-metal, high-expansion Z-Seal™ technology to its product portfolio, increasing the capability of its downhole equipment to provide pressure integrity, particularly in hostile, high-pressure/high-temperature (HP/HT) environments.

The Z-Seal technology is a new, innovative, high-expansion sealing device that uses expanding metal in place of elastomers to form a high-integrity pressure seal on the tubular wall. The seal is made entirely of metal, making it highly insensitive to temperature failure modes and able to withstand high-pressure forces. Because it contains no elastomers, the Z-Seal dramatically improves downhole equipment performance in many well intervention applications and makes intervention possible in hostile well environments previously deemed inoperable. The metal seal expands to up to 160% of its original size while maintaining true HP/HT performance. It also uses applied differential pressure to exert additional self-energizing load to reinforce the seal.

The Z-Seal system can be fully retracted in applications that require tool retrieval. Eliminating elastomers also dramatically improves downhole equipment performance by eliminating conventional failure modes such as temperature or chemical degradation, fatigue and shearing.

Z-Seal technology offers many additional advantages, including: a lower profile, a smaller OD for protection from mechanical damage, easier retrieval and less debris, chemical and gas resistance, and conformance to irregular bore shapes. Its operational advantages and engineering innovation have already resulted in two major industry awards: The 2006 OTC Spotlight on Technology and Meritorious Engineering Awards.

Initial applications of Z-Seal technology in bridge plugs and straddle assemblies have proven the technology and the potential of the products in the well-servicing market. Currently Z-Seal technology is being used as a medium- to high-expansion solution for bridge plugs, straddle systems and flow-control devices.

For more information about Baker Oil Tools, visit www.bakeroiltools.com.

Baker Oil Tools is a world leader in well completion and intervention solutions.

Baker Hughes is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.
Z-Seal Technology

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US Steel Tubular Products to open Innovation & Technology Center for industry customers

By Joanne Liou, editorial coordinator

U.S. Steel Tubular Products (USS) will open the Innovation & Technology Center at its Houston offices on 28 March. The 10,000-sq-ft facility will serve as a training and education facility for customers, stakeholders and the community; it will be open to host events, such as lunch-and-learn sessions, industry association meetings and employee training. The center features six areas of interest devoted to research and development innovations; services and connections; manufacturing; inspection and testing; raw materials; and an overview area showcasing the company’s history.

The six areas reflect the company’s integrated supply chain and vision. “We started this vision of customer-driven tubular focus within our tubular segment,” Douglas R. Matthews, senior vice president – tubular operations of USS, said at a media event last week. “We need to be a stronger supporter – supporting technology developments that help our customers do their job easier, faster, better, cheaper.” The display of artificial iron ore, coke and limestone show the process of selecting and mining the materials. In the manufacturing exhibit, visitors can learn about the process and how materials are refined.

USS’ technologies and services are featured in the products, services and connections area of the center. Some of the company’s latest advances, such as the USS Buttress Thread, are showcased in the R&D innovations area. The interactive inspection and testing exhibit allows guests to test the performance capacity of various products through a touch-screen virtual testing system. Throughout the center, videos, posters and simulations give visitors an in-depth look and understanding of different technologies and process involved within the steel and tube-making process.

“We’re excited about this step in the evolutionary process of being tubular focus and customer driven,” Mr Matthews said. “We’re making sure our customers are at the forefront and identifying what their needs are and being responsive and proactive to supporting those needs, and we feel that this grand opening of our innovation and technology center is a step in that direction.”

Click any image to zoom

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Baker Hughes Acquires Zeroth Technology Limited

HOUSTON, Dec. 2 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated(NYSE: BHI; EBS) announced today that it has acquired all of the outstandingshare capital of Zeroth Technology Limited ("Zertech"), a privately ownedcompany based in Aberdeen, Scotland. Zertech has developed and patented aunique, non-elastomer, expandable metal sealing element that is currentlymarketed in well intervention applications. Zertech's current customersinclude major oil and gas exploration and production companies in the UnitedKingdom, Norway and the Middle East. Interest in its sealing technology isgrowing in other producing areas of the world.

Zertech was recently awarded the International Coiled Tubing AssociationEuropean Chapter Award for Innovation and Technology. This award is presentedannually to recognize oilfield operating and service companies who demonstratethe application of technical innovation in the area of well intervention.

Forward Looking Statements

This news release (and any oral statements) may contain forward-lookingstatements within the meaning of Section 27A or the Securities Act of 1933, asamended, and Section 21E of the Securities and Exchange Act of 1934, asamended. Forecasts regarding the revenues of Zertech are based on informationprovided by the prior owners of Zertech. These forecasts may be substantiallydifferent from actual results. Additional information and risk factors arecontained in our Form 10-K for the fiscal year ended December 31, 2004 andother filings with the SEC about the risks and uncertainties that could causeactual results to be different. The company's SEC filings can be viewed athttp://www.bakerhughes.com . The company assumes no responsibility to updateany of the information referenced in this news release.

Baker Hughes is a leading provider of drilling, formation evaluation,completion and production products and services to the worldwide oil and gasindustry.

**** NOT INTENDED FOR BENEFICIAL HOLDERS Contact: Gary R. Flaharty (713) 439-8039 H. Gene Shiels (713) 439-8822

SOURCE Baker Hughes Incorporated

CONTACT: Gary R. Flaharty, +1-713-439-8039, or
H. Gene Shiels, +1-713-439-8822,

both of Baker Hughes Incorporated

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Oilfield Technology -- August 2011

Production and reserves in the USA have grown substantially in recent years due to the availability of new technologies for exploiting unconventional reservoirs. Starting about 10 years ago, the combination of horizontal drilling and multistage slickwater fracturing unlocked the potential of the Barnett Shale and then other gas shales around North America. The adoption of horizontal drilling was such that in March 2009, the USA horizontal rig count overtook the vertical rig count for the first time. Additionally, as a result of the effectiveness of these drilling and completion techniques, gas prices have fallen and appear to have stabilised for an extended period. However, the activity in the USA has not declined; it has just shifted to unconventional oil reservoirs such as the Bakken formation in the Williston Basin. In fact, for the first time in many years the number of rigs drilling for oil in the USA now exceeds the number of rigs drilling for gas.

The extensive infrastructure and business friendly climate of the USA enabled this drilling boom to occur. This wave of activity has induced a technology race in the development of downhole tools for unconventional fracturing and well completion. To that point, these developments have been changing at a much faster pace than conventional downhole equipment due to:

The willingness of operators to field trial new equipment.The lower cost environment and limited time required to drill a new well.The highly competitive nature of the unconventional market with the universal desire to increase initial production and estimated ultimate recovery of wells renowned for steep decline curves.

While there has been slightly slower adoption within the international oil and gas market, this is expected to change as the technologies developed in the unconventional reservoirs of the USA are exported to other parts of the world.

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