Chapter 3
Offshore / Oilfield / Maritime Operations

The oilfields of the world, commonly referred to as the "patch" operates in two areas, onshore and offshore. While the actual drilling activity is pretty much the same for both, offshore operations presents challenges which are unknown to onshore drillers. The oceans of the world are a formidable power. The technology used to drill wells offshore is very much akin to putting people into space.

Those of you who work out there know what I'm talking about. Those of you who have never worked offshore can only guess, but I will attempt in this chapter to illustrate and explain the technology, people and operations which makes all this happen. It is awesome indeed.

If you are considering a career in the offshore / oilfield / maritime industry, be advised  it will be an undertaking which will require a great deal from you. Not only in technical skills (whether you are a roustabout or engineer) and long hours of hard grueling labor; rain or shine, hot or cold, but also in adapting to a wide variety of personalities working and living in close quarters in some very hostile, isolated environments. This is not a holiday cruise on the "Princess Carnival". 

Onshore Operations:

  • New Vessel and Rig Construction
  • Vessel and Rig Repair / Painting
  • Dockside Facilities
  • Mud Mixing Plants
  • Tank Cleaning

Offshore Operations:

 

Photo by Nigel Mitton

Most people, caught up in the rush of everyday life, don't stop to think what is involved in getting oil or natural gas out of the ground, refined, and to the pumps, especially from offshore sources. The process is complicated and time-consuming, taking anywhere from three to fourteen years to get it to the pump, after its initial discovery offshore.

First, waters which are three miles or more off the coastline are considered to be in the Outer Continental Shelf and are owned by the federal government. The federal government leases these lands, called tracts or sections, to oil companies interested in drilling on them. Leases cost anywhere from $900,000 to $50,000,000 depending on the location. Average cost is about $2,000 an acre. This amount is a considerable chunk of money, but all it provides is the right for an oil company to drill in that area.

The oil company then has to rent a drilling rig from a drilling contractor at a rate of from $20,000 to $100,000 per day, depending on the type of rig, location of the hole, and market conditions at the time. This expense just covers the rent for the rig. Other things, such as fuel, transportation, casing, logging surveys, groceries, and site set-up are extra. The average cost to drill a 10,000 foot well in 1,000 feet of water in the Gulf of Mexico, using a semi-submersible rig in 1983 was $3,000,000. Just because an exploratory well has been drilled, there is no guarantee that oil or gas will be found. In 1984 alone there were approximately 3,700 exploration and development wells drilled worldwide. Exploratory wells are also know as wildcat wells.

Even if a company drills in a rich site, the process will just be beginning. After initial discovery, the oil company will have to file a federal development permit with the government and get it approved before they can do anything else. The next step is to get a platform built for that location and water depth. This construction will be done at a shipyard specializing in that type of work. It usually takes as much as three years to build the platform at a cost of $8 to $30 million. Then the basic platform will be towed out to the site and sunk on location by allowing water to enter the legs (called jackets). This process is known as controlled ballasting. 

Once the platform is sitting on the ocean floor and properly secured, packages will be installed on the platform by a derrick barge. To date, the record lift for a derrick barge is 4,400 tons! The packages are complete living quarters, engine room compartments for power, mud pumps, the derrick, heliport, etc.

When all the packages are installed and made operational, the platform is ready for drilling. The contractor will drill a location anywhere from 1 to 4 years and, on average, drill from 15 to 30 holes. These wells will go to different depths and locations. The hole can be made to go sideways by means of directional drilling. Once the wells have been completed, production is ready to start. When the crude or natural gas is flowing, it still must be transported to shore, This is accomplished by laying an underwater pipeline from a pipe-lay barge. In deep water, this process can run up to a million dollars a mile.

It was once said that oil companies operating offshore are the world's greatest gamblers. After they pay the expenses they incur, it is beyond me how they make money. But they certainly do, don't they? It's a wonder gas isn't $5.00 a gallon!

The offshore industry is quite an operation. It takes a lot of effort to find, drill, and produce a well. But that's great, for it provides many jobs for a multitude of people. People just like yourself!

 

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