July 20, 2014

Walking rig and oilfield services company team up for enhanced rig technology

Precision Drilling and Schlumberger are teaming up to add custom drill bits, geological data technology and other tools with walking rigs.

Drilling technology has come a long way in just a decade since the majority of well owners have switched from conventional vertical wells to horizontal wells and hydraulic fracturing technology.

However, as the technology evolves, more companies are looking to increase efficiency and well operations even more after the shale boom put many energy companies on the map. According to the Houston Chronicle, Canadian-based Precision Drilling and Schlumberger – a leader in oilfield services – are teaming up to add custom drill bits, geological data technology and other tools with the Canadian company's walking rigs.

Shale regions that have tight oil and shale gas are difficult to recover the resources from and are usually more expensive than conventional drilling methods. However, with the collaboration, the two companies are putting their best tools together to build a rig that will effectively and efficiently recover resources for shale formations.

According to Fuel Fix, walking rigs use mechanical legs to move the rig to more locations and to harvest more oil and gas resources. Typically, a standard rig can take days to disassemble and reconstruct in a new well location. However, walking rigs avoid oilfield services companies and simply moves to the next well site.

Walking rigs could be more effective in the field

Kevin Neveu, the chief executive officer of Precision Drilling, said the new walking rigs are equipped with better drilling parts and can work across numerous rigs, which will increase profits and drill faster in more locations, the Houston Chronicle reported.

“Reducing the cost of the well and drilling more efficiently opens up more locations and opportunities for us,” said Neveu, according to the source. “Our customers are looking to refine ways to improve efficiently.”

The company currently has about two-thirds of its rigs equipped with the walking feature and have spread them out among all the major shale regions in North America, the source reported. After the companies collaborated, both of their stocks saw an growth.

On July 16, Precision Drilling's shares grew by 61 cents to $14.01 at the end of day on the New York Stock Exchange, while Schlumberger's stock increased by $1.42 to $115.88, the source reported.

According to Energy and Production Magazine, walking rigs are gaining popularity since land is becoming scarce and extremely expensive over shale formations. The walking rig can access multiple spots and make smaller amounts of land more efficient and profitable.

Original equipment manufacturers need precision gearing and oilfield tools to keep rigs running smoothly, and using Broadwind Energy can help keep OEMs on track with the right tools and gearing.