The New Era

of Shale
BHP Billiton Petroleum

Supplement to

Contents
2 The Company
4 Operating Principles
6 The Growth of U.S. Onshore Oil and Gas
10 Building the Wells
12 The Move into Shale
14 The Eagle Ford Shale
22 The Permian Basin
26 The Haynesville Shale
30 The Fayetteville Shale
34 Zero Harm
36 Good Neighbors
38 Avoiding Potential Roadblocks
40 Company Profiles

Every time we look at

the opportunities in our
shale oil and gas plays,
they get larger.

Mike Yeager
Chief Executive
BHP Billiton Petroleum

We know the resources are

there. Our job is to deliver
them safely and in an
environmentally responsible
way. We are in this business
for the long haul, and we are
going to do it right.

2 BHP Billiton

The Company
Houston-based BHP Billiton Petroleum
delivers nearly one fourth of the annual earnings
of the BHP Billiton Group.
BHP Billion Petroleums exploration, development,
production, and marketing activities span more than
a dozen countries. The company holds significant
positions in the deepwater Gulf of Mexico and
onshore United States as well as in Australia, the
United Kingdom, Algeria, Trinidad and Tobago, and
Pakistan. It also has promising prospects in the

Philippines, India, and Malaysia. Between 2007 and

2011, BHP Billiton Petroleum brought five world-class
developments on stream.
The company entered the onshore shale business with the $4.75
billion Fayetteville Shale acquisition in April, 2011, but that was
just the first step. It strengthened its U.S. onshore position later in
the year through the $15 billion acquisition of Petrohawk Energy

BHP Billiton Petroleums Seismic Processing and Imaging Team has numerous technology projects with research institutions around the world.

BHP Billiton

BHP Billiton Petroleums Shenzi deepwater platform in the Gulf of Mexico began production in 2009.

Corporation, which gave it major stakes in the Haynesville, Eagle

Ford, and Permian basins to complement its Fayetteville position.
Since then, the U.S. onshore workforce has doubled. BHP Billiton
Petroleum operates some 45 land drilling rigs in the United States in
addition to its deepwater drilling around the world.

BHP Billiton Petroleum has close to 4,000 employees globally,

and is deeply committed to their safety. The company has the
systems in place to ensure its employees return home unharmed
at the end of the day, and it continually strives to improve its
sterling safety performance.

BHP Billiton Petroleum is now among the largest independent

oil and gas companies in terms of both its total production and
resource base. Its shale assets in North America are some of the
most valuable, high-quality resources in the world.

As a global producer, exporter, and consumer of energy, BHP Billiton

understands the need to conserve energy and the risks of climate
change. Since 2006, it has achieved an 16 percent reduction in
greenhouse gas emissions per volume of production, exceeding its
public target of a six percent reduction by 2012.

The companys business is built on a powerful platform of

rigorous safety standards, high quality oil and gas resources,
functional excellence, operating discipline, and financial strength.
It has the people and skills to take on complicated and diverse
opportunities, and the flexibility to move quickly to deliver value
in any environment.

4 BHP Billiton

Operating Principles
These five basic operating principles shape everything
BHP Billiton Petroleum does as a company and serve
as its pledge to local communities.
1. To be the safest company in the industry
We carefully develop and rigorously implement safety
and operating systems, properly train our people, and
will not compromise our behavioral standards.
 e only work with contractors who share
W
our commitment to safety.
We partner with local communities to prepare
them to respond to unplanned events.

2. We will protect the land where we operate

We install and operate our wells and facilities in
the most environmentally sensitive manner.
We look for opportunities to drill multiple wells from a
single pad to reduce the size of our surface footprint.
We conduct environmental assessments prior to
the execution of work to properly plan for and
minimize the impacts of our operations.

 e are committed to restoring the environment

W
when we complete our operations to ensure it is
as healthy and robust as before we arrived.

3. We will safeguard and manage water resources

We minimize our impact on fresh water by utilizing
alternate sources wherever possible.
We do not dispose wastewater into any
surface source (streams, lakes, rivers).
We do not drill or conduct hydraulic fracturing operations
unless we are confident that groundwater will be protected.

4. We will minimize air emissions from our

operations
We conduct our operations in a manner
that minimizes flaring and venting.
We use alternative or cleaner-fuel source technologies.
We have one of the most modern and operationally
efficient drilling fleets in the onshore industry.

5. We will be a good neighbor to our communities

We look for ways to make our operations
less intrusive to the community.
We publicly disclose the chemicals that are used
in our hydraulic fracturing operations.
We work with state and local officials to find workable
solutions to common industry problems.
 e give back to the community in a meaningful way
W
through social investment and partnerships.

BHP Billiton

Safety is BHP Billiton Petroleums primary concern. The company

recognizes that the business of finding, extracting, and delivering
hydrocarbons is full of potential hazards, and its commitment to
the safety of its employees and contractors is one reason that,
statistically, they are less likely to be injured at work than they are
in their own homes.
Every employee and contractor, no matter what their position, has
the right and obligation to speak up if they have doubts about any
activity. If they cant be certain of the task at hand, they are required
to either stop the job or do whatever it takes to ensure their own
safety and that of those around them.
Is the approach working? Yes. In its U.S. onshore operations, many
of the safety standards established by BHP Billiton Petroleum
have improved not only its own safety performance, but that of its
contractors and other operators as well.

Eagle Ford Drilling and Completions Manager Michael Bloom

prepares a group of journalists for a drillling rig site visit.

6 BHP Billiton

The Growth of U.S.

Onshore Oil and Gas
Its no secret that recent advances in hydraulic
fracturing and well completion are opening vast
new oil and gas resources. The biggest fields by
far are in North America.
An increasing portion of BHP Billion Petroleums
North American portfolio consists of what are
known as unconventional oil and gas plays.
While shale oil and shale gas are considered
unconventional resources, the term refers only
to the source rock, not the high-value liquids
and natural gas that come from it. Two basins in
particular, the Eagle Ford and the Permian, account
for about 40 percent of all the unconventional oil
and gas activity in the United States.

What are shale and

tight gas reservoirs?
In conventional reservoirs, hydrocarbon molecules are able to
squeeze between the grains of relatively porous rock. Above that
porous zone, however, there must be what geologists call a trap
or seal to keep the oil and natural gas from migrating all the way
to the surface.
Shale reservoirs are different. Shale and other tight reservoirs
dont need traps and seals, because the source rock itself is the trap.
Hydrocarbons are caught within pore spaces that are significantly
smaller and more restrictive, and are also absorbed onto the clay
mineral particles that make up the shale. The only way hydrocarbon
molecules can move around is through natural and artificial cracks.

BHP Billiton

A matter of scale
One of the biggest differences in shale oil
and gas fields is the large number of wells
needed to extract the resource.

8 BHP Billiton

An abundance of opportunity exists in shale in the lower 48 states.

Source: Energy Information Administration based on data from various published studies. Updated: May 9, 2011.

Geologists have long been aware of the oil and gas contained in
shale, but didnt have a way to recover it economically. That changed
on a significat scale in the mid-2000s, thanks to improvements in a
50-year-old technology known as hydraulic fracturing, or fracing
for short. Fracing uses water pressure to create networks of tiny
cracks in the rock. To hold them open, sand and minute amounts of
a gel-like thickener are added to the water.

But what about market changes?

After BHP Billiton Petroleum acquired a stake in the U.S. shale
oil and gas industry, the price of natural gas in the United States
dropped to the lowest level in years. Such low prices are squeezing

out the small operators and forcing changes within the industry.
Thats nothing new in the oil and gas business. Whats important
to remember is that discovering, producing, and delivering
hydrocarbons is a long-term venture. Fields take years, even
decades, to develop. The wells being drilled now will be productive
for at least the next 30 years.
At the end of 2012, the companys onshore holdings stood at 1.6
million acres. Since it will take 20 years just to develop the shale
resources it knows are in the ground, the fields themselves will be
active for at least the next 50 years. Few industries have lead times
as long as this, or capital expenditures as large.

BHP Billiton

The drillers control room, known in the industry as the dog house, on one of BPH Billiton Petroleums brand new Eagle Ford rigs built to
company specifications.

Supply and demand drives the market. While the United States now
has an oversupply of natural gas, Europe and Asia do not. That
will likely change in the next few years as more liquefied natural
gas (LNG) receiving terminals in the United States are converted to
export terminals. When it becomes relatively easy to export natural
gas, world prices should be more uniform.
Other factors are changing the market as well. Low prices are
encouraging some electric power producers to shift from coal to gas,
and chemical plants are increasing capacity to take advantage of the
relatively low cost of natural gas liquids. The demand for natural gas
and natural gas liquids is certain to grow in the United States, the
largest and most mature market in the world.

What about liquids production?

By the end of 2012, BHP Billiton Petroleums onshore fields
were delivering 270,000 barrels of oil equivalent per day to U.S.
customers. The hydrocarbons are a mix of oil, natural gas, and
natural gas liquids in the current market, the liquids sell for more
than dry gas. Since many of the companys onshore fields have
the capacity to produce more than 50 percent liquids, it has the
flexibility to leave the dry gas in the ground for now and keep its
crews and equipment busy producing more liquids, including crude
oil, which continues to sell at strong prices.

10 BHP Billiton

Building the Wells

At the surface
After geologists and reservoir engineers determine where the wells
should be, crews level the site, construct a lease road, erect the
drilling rig, and place support facilities on the pad. For efficiency,
and to minimize disturbance at the surface, BHP Billiton Petroleum
typically drills and completes several wells from a single pad,
directing each wellbore to a different part of the target zone. When
the wells are to be hydraulically fractured, an array of large trucks,
pumps, storage units, and control systems will be brought in for
several days. Once all the wells are completed, the perimeter of the
site is restored as close as possible to its original condition, leaving
only a minimal surface footprint.

Surface drilling and casing

Drillers start a new well by drilling a hole to a depth of
approximately 80-100 feet, and installing a large-diameter pipe
called a conductor casing, which is then cemented in place.

Protecting the water table

Once the conductor casing is set, drilling continues to a depth that
state regulatory agencies determine is well below the level of any
fresh ground water. The heavy pipe called surface casing is then
installed and cemented in place by pumping cement down the pipe.
The cement circulates to the bottom of the surface casing and rises
back to the surface on the outside of the casing, forming another
layer of protection and strength.

Horizontal drilling
Shale wells are usually completed with a horizontal section. As the
wellbore continues downward and it approaches the target shale,
drilling engineers guide the drill bit, curving the borehole until its
path is horizontal or nearly so. The finished hole may run horizontally
for a mile or more through the hydrocarbon-rich layers of rock.

Production Casing
The drilling phase is finished after drillers install and cement an
additional set of piping from the bottom of the well all the way back
to the surface, forming yet another barrier between the rock and the
inside of the well.

BHP Billiton 11

Manufacturing wells
In most shale fields, operations continue
around the clock. Depending on the reservoir,
wells typically take 10-20 days to drill. BHP
Billiton Petroleum drills several wells from
each pad in a manufacturing-like process.

Perforating

Hydraulic Fracturing

In a critical part of the completion phase, portions of the production

casing are perforated by a series of small explosive charges, creating
holes that are about an inch in diameter and extend as far as
18 inches into the surrounding rock. These perforations provide a
conduit for fluid and sand to be pumped into the reservoir during the
fracing stage, and afterward allow hydrocarbons into the wellbore
so they can flow or be pumped to the surface.

Because shale is too dense for hydrocarbons to flow through it

on their own, the wells are stimulated by pumping in fluid
usually water and thickenersand sand under very high pressure.
Downhole, the fluids push out through the perforations into the
rock formation. The pressure is great enough to break the rock and
release hydrocarbon molecules from microscopic voids in the shale.
The sand, called proppant, holds the fractures open so the fluids can
flow into the wellbore and to the surface.

12 BHP Billiton

The Move into Shale

Through purchases in 2011,
BHP Billiton Petroleum acquired major
positions in four of the largest onshore oil
and gas fields in the United States.
Two of the assets are what the industry calls liquidrich, which means the hydrocarbons they produce
are largely oil and natural gas liquids, as opposed
to dry gas. In some areas, the proportion of total
liquids production is as high as 80 percent. The
companys holdings in shale basins across Texas,
Louisiana, and Arkansas contain some 8.0 billion
barrels of oil equivalent, a U.S. domestic resource
that we will be producing over the next 50 years.

People know us
BHP Billiton Petroleums onshore acreage in the United States lies
in regions where people have a long history in the oil and gas
business and the industry is an important part of the economy.
At the end of 2012, the company was producing 270,000 barrels of
oil equivalent per day from these onshore fields. That number will
grow throughout 2013, driven by more than $4 billion in drilling
and completion and facility development.
Using local contractors, BHP Billiton Petroleum is building the
infrastructure to bring valuable gas and liquids to market. In 2012,
it installed some 140 miles of new pipeline in the Eagle Ford and
Permian shales, and is building another 200 miles of pipeline in 2013.
Over the next few years, the company will add six new processing
plants and lay about 800 miles of pipeline in the Eagle Ford alone.
Development in the Permian includes some 600 miles of pipeline, as
well as gas dehydration, compression, and cryogenic facilities.
These large, long-life, and low-cost assets hold tremendous
volumes, with potential for significant future development. Together,
they make BHP Billiton Petroleum one of the industry leaders in
some of the most productive shale basins in the United States.
BHP Billiton Petroleums size and scale give it the flexibility to
respond to market conditions. In financial year 2012, the company
adjusted its shale development plans to focus on oil rather than
gas, while maintaining its capability to ramp up in the future when
natural gas prices rebound.

A diversified portfolio of onshore oil and gas opportunities provides

extraordinary flexibility to respond to changes in the market.

BHP Billiton 13

Home-grown energy
BHP Billiton Petroleum
works closely with landowners
to minimize its footprint.

Shale proving to be an
economic boon to the U.S.
1.75 million jobs created in past few years.
New jobs expected to grow to 3 million in 2020.
$2.5 trillion in government revenue by 2035.
Nearly 2% of U.S. GDP over next three years.
Source: U.S. Chamber of Commerce

14 BHP Billiton

The Eagle Ford Shale

Hydrocarbons in economic quantities were
discovered in the Eagle Ford shale in 2008.
Since then, the region has become the epicenter
of shale operations in Texas, and one of the
premiere plays in North America.
The Eagle Ford spans more than 400 miles of
south-central Texas. The heart of the play is
about 50 miles wide and has an average thickness
of 250 feet. It is a giant resource that will be
productive for many years to come.

BHP Billiton 15

16 BHP Billiton

BHP Billiton Petroleums average hydrocarbon production from the

Eagle Ford, which includes the Black Hawk and Hawkville fields,
is over 50 percent liquid hydrocarbons. With an attractive product
mix of condensate and natural gas liquids, the Eagle Ford Shale is
rated among the lowest cost plays in North America. As a result, the
economics of dry gas have much less effect on company activities.
The rigs are working flat-out, says Eagle Ford Production Unit
Manager Steve Pastor. Our success is due in part to the fact that
were in the sweet spot of the basin. Geologically, it is among the
best of the best.
According to a study by the independent research and consulting
group, Wood Mackenzie, BHP Billiton Petroleum has the second
most valuable position in the Eagle Ford.
The Eagle Ford includes a vast rural area of south-central Texas.

Hydraulic fracturing at night in the Eagle Ford Shale. Drilling and completions operations run non-stop, lessening Americas dependence on
foreign oil and gas.

BHP Billiton 17

The field produces three products. First is the crude oil and
condensate, which is a high-value lighter form of crude oil. Next
is dry gas, which can often go straight into interstate pipelines
and be sold directly into the market. Between the two are natural
gas liquidsethane, propane, butane, and pentanewhich are
typically separated out in gas processing plants.
In 2012, BHP Billiton Petroleum produced nearly 100,000 barrels of
oil equivalent per day from the Eagle Ford Shale, with half of that
being hydrocarbon liquids and the rest, dry gas. In the next few
years, the company aims to produce 300,000 barrels equivalent per
day from the Eagle Ford. Six new processing plants will be needed to
handle the volumes. BHP Billiton Petroleum will be adding 800 miles
of pipeline, and has already spent more than a billion dollars on the
infrastructure.

Reservoir modeling
Commercial amounts of hydrocarbons were discovered in the Eagle
Ford Shale in 2008. The region has since seen an extraordinary
amount of development as one of the premiere shale plays in
North America. What BHP Billiton Petroleum brings to the table
is financial strength and technical depth to make the most of this
outstanding resource.

BHP Billiton Petroleums

Technology Goals
Model and understand production complexities
associated with nano-permeability reservoirs
Lead the industry in the development of static
and dynamic shale reservoir models
Improve hydraulic fracturing efficiency,
development planning, and ultimate energy
recovery
Identify, assess, and implement breakthrough
technology

If we can unlock the

secrets of the Eagle
Ford, we can apply that
technology elsewhere
around the world.
Vice President of Development Planning Rob Kase.

18 BHP Billiton

We are now working on dynamic reservoir models of the field,

says Rob Kase, Vice President of Development Planning. Thats
what we do for conventional reservoirs, but it has never been done
in a shale like the Eagle Ford.
Reservoir models are computer-based simulations of a fields
geology. Specialists construct them using seismic data and
information from wells. Dynamic 3D models help engineers and
geoscientists predict how fluids will move through a reservoir.
Accurate models help them plan the location of new wells and
develop strategies for enhancing recovery.
The reason no one has created a dynamic model for a shale reservoir
is that the permeability of the rock is so much less than it is in a
conventional oil and gas reservoir. The rock is so tight that some
of the parameters geoscientists would use to model a conventional
reservoir just dont apply.
The conventional approach is difficult to use in the Eagle Ford,
Kase says. In a well-connected reservoir with higher permeability,
you can calculate the flow or drainage rate based on the reservoir
parameters. Here, because the rock is so dense and varied, it creates
a significant challenge.
The flow rate from a single well, for example, can be deceiving. The
fluids might be entering the well at a uniform rate throughout the
length of the completion zone, or the majority of the fluids might be
coming from a narrow zone that just happens to have more natural
fractures in the rock. Without a good model of the reservoir, there is

Eagle Ford Production Unit Manager Steve Pastor (left) with Eagle
Ford HSEC Supervisor Harry Barnes.

not a strong correlation between the characteristics of the reservoir

and how much production you can expect from the wells.
Shale gas recovery factors generally run in the mid to high teens,
and oil recovery factors between five and seven percent, Kase
says. If we can build a dynamic reservoir model for the Eagle Ford,
I believe we can improve recoveries significantly. This will have a
significant impact on not only production rates, but the value of the
asset. The really big prize, howeverif we can unlock the secrets

BHP Billiton 19

in revenue, created 38,000 full-time jobs, and added $211 million to

local government revenues in south-central Texas.
Today, communities in the 14 counties that make up the Eagle
Ford are building new schools and hospitals and launching training
programs to help people realize the benefits of shale oil and gas
development in the regions surrounding their communities. The study
projects that up to 116,000 full-time jobs will be created by 2021.

Water in an arid land

The Eagle Ford has no surface water to speak of. Much of the area
is quite arid, but there is a world-class aquifer that has an immense
volume of fresh water in a porous sandstone that is 400 to 500 feet
thick. The problem is, the water is extraordinarily deep. While most
freshwater aquifers are no more than 400 feet below the surface,
one has to drill much deeper down to reach this one. Cities can
afford to get their water from this source, but many ranchers and
farmers cant.
BHP Billiton Petroleum Chief Executive J. Michael Yeager (left) on a
visit to the Eagle Ford.

of the Eagle Fordwill be the ability to apply that technology

elsewhere around the world.

Adjusting to the market

Low natural gas prices in the United States have caused dramatic
shifts in the way producing companies manage their fields. Such
cycles, driven by supply and demand, have been the nature of the
petroleum industry since 1859.
In BHP Billiton Petroleums case, it has shifted assets to produce
more hydrocarbon liquids and less dry gas. Since the Eagle Ford and
Permian are its most liquids-rich fields, they are getting the most
attention. Near the end of 2012, the company was running 8 rigs in
the Permian Basin and 30 in the Eagle Ford.
A new fleet of drilling rigs, most of them purpose-built for working
in shale, are now being delivered from fabrication yards on the Texas
Gulf Coast. Several units are already in service and the rest will be in
the field by mid-2013. By then, all 45 BHP Billiton Petroleum drilling
rigs will be the safest, cleanest, and most energy-efficient in the field.

A boost for local communities

Exploration, development, and production in the Eagle Ford Shale
has contributed to the economic revitalization of the region.
According to a 2012 study by the University of Texas at San Antonio,
the shale gas projects in 2011 alone generated just under $20 billion

To get enough water for drilling and hydraulic fracturing, we have

drilled a number of fresh water wells and turned them over to
private landowners.

20 BHP Billiton

To get the water needed for drilling and fracing wells in the
Hawkville area of the Eagle Ford, BHP Billiton Petroleum is drilling
these extra-deep water wells and turning them over to private
landowners in exchange for a share of the water. That gives it
the water it needs, and the property owners are happy to have a
reliable source of fresh water. How much is needed? The amount
of water needed per well for hydraulic fracturing varies from one
field to the next, but three to five million gallons is a ballpark figure.
While that sounds like a lot, it is small compared to the daily water
consumption of a power plant or the irrigation needs of a large
farm. To ensure that it is not taking too much water or harming
the aquifer in any way, the company has retained the services of a
Ph.D. geologist who lives in the area. As a landowner himself, he
represents the community and advises local water boards.

are typically used for drilling only one or two wells on a pad. That
equipment is easier to move from one site to another. The skidder
rigs are designed to drill multiple wells on a pad. They are more
complex because they include a skidding system that allows the
derrick to move quickly from one well to the next.
If the idea is to drill appraisal wells, as is done in the Permian, then
the rigs need to be easy to move. If the rigs will be drilling large
numbers of development wells, as they are in the Eagle Ford, then
rigs on skids are the answer.

The drilling program

All 45 of our new rigs have much better control systems than the
units they are replacing, Cardno adds. That makes them more
suited to drilling the type of short-radius horizontal wells we want.
These rigs can drill the curve and lateral sections of the wellbore
much more efficiently and with a high degree of precision.

When BHP Billiton Petroleum took over drilling in the Eagle Ford, it
put a lot more hardware in the field, including 30 new rigs built to
its specifications.

The new equipment is also more automated than ever before.

Drillers, for example, can enter set points, then take their hands off
the controls and let the rigs computers guide the drill string.

Our rig fleet is entirely composed of modern AC rigs split between

fast movers and skidders, says Derek Cardno, the companys vice
president for global drilling and completions. The fast movers

These advanced rigs are inherently safer than the older ones,
Cardno says. A lot of the hazards have been designed out.

A finished well site in the Eagle Ford field.

BHP Billiton 21

Were trying to change

the way folks think
about safety in their
day-to-day business.
Thats going to take
constant vigilance.

Vice President of Drilling Derek Cardno.

Safely managing change

With 45 drilling rigs in BHP Billiton Petroleums U.S. onshore fleet,
part of the challenge is managing them consistently.
We are a bigger organization now, Cardno explains. Smaller
companies are used to working with fewer rigs. We work that way
ourselves in the conventional business, where we had only eight or
ten work fronts at any one time around the world. They were run
by a small team. Everyone knew how each other worked. Now, in
the unconventional plays, we are geared up to run 45 rigs and nine
frac spreads, so we have 60-70 work fronts. That is a lot to get your
arms around.
Consistency is one of the most difficult things to achieve in daily
operations. When you consider that the drilling program spans
not only the Eagle Ford, but three other large fields as well, the
challenge is huge.
What Cardno and his team did is divide the drilling organization
into smaller, more manageable chunks: Drilling managers look over
a certain number of rigs. Drilling superintendents oversee smaller

numbers of rigs. An engineer and superintendent work together, and

each has a certain number of rigs supported by a small team.
The hard part is getting a consistent message across all work
fronts, Cardno says. Were managing that through a lot of
interaction. I receive direct reports daily. We have a morning
meeting every day to go through the operations and discuss issues.
Managers do the same down the line.
The drilling organization also brings all of the field personnel together
every three to six months. The goal is to get the same message out
to everyone about the companys expectations and its requirements
for safety, performance, and quality. It is also an opportunity to gain
valuable feedback from the field.
We are doing it with our service providers as well, Cardno
says. Weve met with vice presidents and CEOs of all our service
companies. We brought them all together to make sure everyone
understands what we expect in terms of safety, quality, and
performance. Were making great strides, but we cannot get
complacent. Were trying to change the way folks think about safety in
their day-to-day business. Thats not going to happen overnight.

22 BHP Billiton

The Permian Basin

The Eagle Ford is liquids-rich, but the Permian
Basin, which covers some 75,000 square miles of
west Texas and southeastern New Mexico,
has a very high percentage of crude oil.
Although BHP Billiton Petroleum is still drilling
appraisal wells, it is seeing liquid hydrocarbon
production from shale in the range of 75 percent.
The best wells are in the 30,000 square-mile Midland Basin and in
the smaller Delaware Basin, which lies to the west. Many operators
are working in various parts of the Permian, which accounts for
about 20 percent of all the drilling in the United States today.

sine waves slowly through the earth, pushing up mountains in some

places and leaving basins in between.
The Permian is huge, and anything but consistent. There are multiple
layers of hydrocarbon-bearing rock with names like Wolfcamp,
Sprayberry, and a blend of the two known as the Wolfberry. The
Permian includes the north and south Midland basins, a Central
Basin Platform and the Delaware Basin. BHP Billiton Petroleums

BHP Billiton Petroleum has more than 440,000 acres of undeveloped

land under lease. What is it finding? One of its appraisal wells
peaked out at 500 barrels of oil and six million cubic feet of gas
per day. Its too early to tell how many such wells it will have, but
its Permian drilling program calls for 60 new wells in 2013, and
the company is just getting started. An area known as the South
Midland is largely unexplored, but many companies are starting to
drill there now. It is a very new play for the industry in general, and
there is a lot of optimism because liquids production in some areas
could be as high as 90 percent.
Portions of the Permian Basin have been producing conventional
oil and gas since the 1920s. In 2012, the conventional part of the
Permian produced the energy equivalent of a million barrels of
oil per day. Now, with the ability to recover hydrocarbons from
unconventional plays, production from the Permian could reach two
million barrels per day by 2020.

Challenging geology of the Permian

The basin itself was formed as part of the Ouachita orogeny,
a 50-million-year era of mountain building caused when the
continents we now call North and South America bumped together
some 300 million years ago. The continental collision sent huge

Lee Higgins is BHP Billiton Petroleums top geoscientist evaluating

the Permian Basin.

Safer and more efficient rigs

Forty-one of the rigs in BHP Billiton Petroleums
45-rig fleet are new and purpose-built for
drilling in shale. The remaining four rigs are only
three years old, which means that the company
operates the most energy efficient, technicallyadvanced, and safest rigs in the field.

24 BHP Billiton

largest holdings are in the Midland, where the producing zone

averages around 700 feet thick, and the Delaware, where the
Wolfcamp interval is nearly 1,000 feet thick. By comparison, that is
three to ten times thicker than most shale plays.
Ive been working and studying this area since 1988, says Lee
Higgins, the companys top geoscientist working on the Permian.
When I saw how much acreage the company had, I was eager to
work on the project. The Permian is a huge challenge, both from an
operations standpoint and from a technical, scientific standpoint.
For one thing, the shale is not really shale.
What we have in the Wolfcamp is really a different type of rock,
Higgins says. You wont find this in the Haynesville, Fayetteville, or
Eagle Ford. It is different from the Bakken, the Marcellus, and the
Utica. Those are all more classic shale plays. What we have in the
Wolfcamp is actually mud rock, which implies that it was deposited
differently than shale.
Despite the regions long history of conventional production, there
was little data on the layers known as the Lower Permian.
The Permian is an old basin, Higgins explains. The rock changes
vertically and laterally. It is not the same here as it is over there, so
even nearby wells could have different characteristics. Every time we
get new data, we go back and rethink what we thought before.
One question is whether it is better to drill vertical wells through
the 1,000-foot thick producing zone, or to drill them with long

Operations Engineer Phillip Schneider.

horizontal sections. Operators are trying both, and there are good
arguments for each approach. Vertical wells are cheaper to drill, but
horizontals reach more of the reservoir.
Were exploring the concept of drilling stacked laterals, Higgins
adds. That means a series of two or more horizontal wellbores, one
above the other. The trick is where to put those laterals. Its important
to remember that we have only drilled a handful of wells and we are
still studying the results. We are just in the early stages here.

Striking a balance
The abundance of high-value liquids, particularly in the South
Midland and Delaware basins, gives operators more flexibility in
developing the field. Even so, it is important to control costs.
Were drilling fairly long laterals, says Permian Production Unit
Manager Doug Handyside. The idea is to touch as much rock as
possible. Horizontal wells in the Delaware are 4,000 to 5,000 feet
long. In the South Midland, were drilling 7,500-foot laterals, and
some in the industry have drilled laterals up to 10,000 feet.

Permian Drilling and Completions Manager Paul Kelly (left) with Drilling
Supervisor Daren Mahoney.

Its likely that fields in the Permian will be developed using a mix
of horizontal and vertical wells as companies decide which are the
most economical for their portions of the play.

BHP Billiton 25

Our initial assessment of development potential here suggests that

we will recover only about five percent of potential hydrocarbon
in place. The upside is enormous if we can double that to only
10 percent. I believe that in five to ten years, well be there.

Growing pains
There is limited infrastructure capacity in the Delaware and South
Midland fields to accommodate the rapid pace of drilling, but
operators are catching up. Typically, collections of nearby wells will
flow to pads or tank batteries to begin separating the oil from the
natural gas liquids and dry gas. The oil and condensate is typically
stored at the lease site and trucked out.
For the gas, we propose to build infield gathering systems and
route it to a central distribution point, Handyside says. There, the

gas would be dehydrated and compressed and either processed

or simply sold into a third-party line. We are also building a small
cryogenic plant to process our own gas in the Delaware Basin.
Another challenge, besides separating the production into
marketable products, is how to get them out of the field.
The pipelines coming out of west Texas are full of oil, Handyside
explains. The pipelines that handle the NGL mix are almost full.
There is enough pipeline capacity to handle the dry gas, but getting
liquids out has been an issue.
Pipeline companies are beginning to move in, expanding their
capacity and building new lines. The lag in infrastructure is mainly
due to the rapid increase in liquids production as the unconventional
reservoirs in the Permian are developed.

Operations Supervisor Brian Downing (left) and Production Supervisor Dennis Winowiecki at the site of a new gas plant under construction.

26 BHP Billiton

The Haynesville Shale

In 2007, the Haynesville Field in northwestern
Louisiana did not exist. Today it is among the
largest gas fields in the United States.
Technically known as the Haynesville/Bossier
Shale, this play is remarkable for several reasons.
Like other shale developments in the BHP Billiton
Petroleum portfolio, this one is big. The entire
play straddles east Texas and western Louisiana.
Most of the companys portion of the field is in
Louisiana, where the producing zone is up to 300
feet thick and the reservoir pressure is relatively
high. The rock is also hydrocarbon-rich, and the
water saturation is low.

The Haynesville shale currently produces enough natural gas to

satisfy 10 percent of U.S. demand. BHP Billiton Petroleum is one of
the largest leaseholders in this field, as it is in the Fayetteville play to
the north in Arkansas.
Even if U.S. gas prices trend low through 2013, the Haynesville
shale still contains enough easy-to-recover hydrocarbons to make it
profitable. The wells are fairly deep, but the shale is easy to frac.
The companys strategy for the Haynesvillegiven the prolific
Permian Basin and Eagle Ford plays in its portfoliois to continue
drilling at a moderate pace. It has enough rigs to keep its drilling
teams busy and support its contractors. When dry gas prices in the
United States firm up, the company can pick up the pace.

There are places in

the Haynesville where
neighbors can see our
operations from their
back porch.

BHP Billiton Petroleums new office building in Shreveport,

Louisiana, will double as a training center for new employees.

BHP Billiton 27

Here to stay
Drilling continues in the Haynesville even in
the face of lower natural gas prices. Part of the
companys strategy is to maintain a solid base of
contractors and experienced crews so they will
be available when the market rebounds.

28 BHP Billiton

The neighbors
Unlike the Permian and Eagle Ford fields, there are places in
the Haynesville where neighbors can see BHP Billiton Petroleum
operations from their back porch.
A two-well site near Shreveport is about 1,000 feet from the home
of a retired federal judge and a church, and the Red River is just
across the highway, says Haynesville Production Unit Manager Greg
McCain. Another site is about the same distance from a school.
Even though BHP Billiton Petroleum is new in town, its employees
are not. External Affairs Manager Tommy Clark has lived in
Shreveport more than 25 years. He has a business background and
has worked extensively with local and state governmental agencies.

External Affairs Manager Tommy Clark (left) and Haynesville

Production Unit Manager Greg McCain.

When working so close to the community, Clark says, we go out

of our way not to be a nuisance. We are sensitive about noise, for
example, so fracing operations are typically restricted to daylight
hours. In the case of the nearby school, we waited until Christmas
break to complete the well.

In the Haynesville area there is plenty of surface water available. Much of it comes from the Red River.

BHP Billiton 29

To conserve water and avoid the high cost of disposal, much of the produced water from BHP Billiton Petroleum wells is stored on site in tanks
and reused for hydraulic fracturing.

Responsible water use

In most areas where operators use hydraulic fracturing, finding
enough water is a problem. Not so in the Haynesville, where
theres plenty of surface water available. Much of it comes directly
from the Red River or ponds that have been built to hold frac
water. The bigger challenge is what to do with water that comes
back to the surface after a frac job, and what comes up from the
producing wells.
We recycle and reuse as much water as we possibly can, McCain
says. We dont pull water from freshwater aquifers that supply rural

communities. Where we are close to the river, we pull water from

there. We also drill water wells into the Red River alluvial, which is
where the State of Louisiana wants us to drill.
What about the water that is not recycled? In the Haynesville, there
arent many disposal wells, so that also drives the effort to recycle.
Although weve been in the Haynesville a relatively short time, the
equipment and practices we have in place so far allow us to reuse
more than 40 percent of all the water from hydraulic fracturing, and
the company is constantly improving on that.

30 BHP Billiton

The Fayetteville Shale

The Fayetteville is a giant field that covers a large
amount of central Arkansas. Its wells are shallow,
predictable, and remarkably productive.
BHP Billiton Petroleum purchased the asset in
April, 2011. Since then, the company has hired
more than 250 workers. While the level of activity
has been scaled back due to lower than expected
natural gas prices, Fayetteville continues to be a
major part of its onshore oil and gas portfolio.
The previous operator was very good at identifying the plays,
getting the land, and appraising it, says former Fayetteville
Production Unit Manager Rob Skaufel, and now BHP Billiton
Petroleums President of global Conventional Production. Now
we are at the point of developing the acreage.
It was exactly the time to step in. As a large international oil
company, BHP Billiton Petroleum brings resources, financial strength,
and a depth of experience that smaller companies seldom have.
Take safety, for example.
Our way of doing things is based on our experience offshore,
Skaufel says. Safety is the highest priority in the company. We bring
established systems and processes developed offshore and adapt
them for onshore operations.
The same culture of safety and operational integrity shows in the
way the fields are being developed, Skaufel notes.
We do assessments and baseline studies that cover a 1,500foot radius around each well. If there are existing water wells or
sources of surface water, we sample them to be sure we know what
condition they are in before we drill, then we sample them again
later to see if there is any change.

Responsible water use

There are more than 3,000 wells in the Fayetteville area. BHP Billiton
Petroleum operates about 800 of them. Together, those 800 wells
produce around 10,000 barrels of water per day, and something has
to be done with it.
The previous company primarily trucked the produced water to
disposal wells, Skaufel says. All of the injection wells were in the
heart of the field. Right about the time we took ownership, however,
a series of small earthquakes swept this part of Arkansas. A similar
thing happened 50 years ago. We thought the recent quakes were
a repeat of the older ones, but we wanted to make sure they were
not related to our water injection wells. We did a study, and even
though we did not find evidence that our wells caused the problem,
we could not prove they didnt, so we voluntarily shut them down.
The water disposal costs shot up, from $2 a barrel to as much as
$15. Waste water had to be trucked to disposal wells as far away as
eastern Oklahoma.

Our way of doing

things is based on our
experience offshore.
Safety is everything.

BHP Billiton 31

Efficient design
Skid-mounted drilling rigs such
as this one are much more
efficient for drilling multiple
wells on a single pad.

32 BHP Billiton

The final stage of building a well is to run all of the fluids through a test separator like this one to determine the exact amount of water, oil, and
natural gas the well is producing. (Photo courtesy Cameron)

We were still doing that when I joined the company in August,

2011, says Operations Specialist Corey Riddle. Disposal is still the
most direct way to handle produced water, but we think its better
to recycle as much of it as we can.
Thats easier said than done in a field where the wells are widely
spaced and set among rolling hills. Riddles answer was to group
wells to one of four water-collection hubs. That did two things: It
made the collection system more efficient, and it took a lot of big
trucks off the road.
If one truck holds 100 barrels (4,200 gallons) of water, and we
needed to dispose of 10,000 barrels of produced water a day, that
means 100 trucks were picking up the water and driving four to
eight hours to the disposal site, Riddle says. That was not only
wasteful, it was a safety risk. Now the system is more localized, and
much of our produced water is being treated and recycled for fracing
nearby wells. Our highway truck traffic is down substantially.
While truck traffic is down, the amount of water being recycled
is way up.
When we first started to focus on water use, we were recycling
about 10 percent, Skaufel says. By April, 2012, it climbed as high
as 85 percent, and there have been weeks since then that we were
recycling 95 percent of our water.

Drilling efficiency
In 2011, it was taking a month to drill the average Fayetteville well.
Through a process of continuous improvement, crews are now doing
the same in less than half the time.
On the south end of the field, it is not unusual to take 20 days to
drill a well, but in other places we have come down to 10 days,
says Fayetteville Drilling Superintendent Bill Robinson. There are
many things we have been doing to improve the efficiency and
safety of our rigs.
Most of the drilling has shifted to the liquids-rich Eagle Ford area,
and an increasing number of rigs will go to the Permian. Even so,
Fayetteville has the potential to be a major producer of natural gas
for the next 50 years. The current development plan is to continue
drilling through the middle of 2020.
Even with low gas prices, we are still drilling economic wells,
Robinson says, but for now, we have dropped our rig count in
Fayetteville from a high of 13 down to two. We dont want to lose
the momentum and capability we have gained over the last year,
both internally and with our contractor base. If the U.S. demand for
natural gas comes back as quickly as it fell, we want to be able to
meet the need.

BHP Billiton 33

Much of our produced

water is being treated
and recycled for fracing
nearby wells.

Operations Specialist Corey Riddle.

BHP Billiton Petroleums newest wells in the Fayetteville use composite trees that are more compact than conventional frac trees. They are also
safer, since operators can reach all of the controls from a comfortable height, rather than having to use a lift. (Photo courtesy Cameron)

34 BHP Billiton

Zero Harm
BHP Billiton Petroleum operates under the
principle of Zero Harm to people and the
environment. In many locations, the companys
policies set the standard for smaller operators.
As a globally significant producer, exporter,
and consumer of energy, BHP Billiton Petroleum
is committed to managing its greenhouse-gas
emissions. The company actively seeks to reduce
water usage and carbon emissions across its
business, and publishes the results in its annual
Sustainability Report.

its history, and it places BHP Billiton Petroleum firmly in the top 10
percent of the industry.
My group supports them, says HSEC Vice President Kristen Ray.
In our North American Shale operations, our first remit is getting
the basics right. Much of our work involves regulatory compliance

BHP Billiton Petroleum is one of the safest oil and gas companies in
the industry. It works at it. Its programs aim to identify all risks so
they can be understood and controlled. That means the company
investigates every incident to determine the root cause and prevent
it from happening again.
Since 2006, BHP Billiton Petroleum has experienced continuous
improvement in its Health, Safety, Environmental and Community
(HSEC) programs. In fiscal 2012, the total recordable injury rate
within its conventional business was 1.34, which is the best-ever in

We look at risks and what

we can do to prevent
injuries. That always
comes first.
HSEC Vice President Kristen Ray.

BHP Billiton 35

Operations Engineer Tommy Roberts (left) and Drilling Superintendent Orville Crandall.

and our license to operate. We look at risks and what we can do to

prevent injuries. That always comes first.
The companys rapid growth in 2011 and 2012 meant hiring a lot
of people, not only on the drilling and operations side, but also
the HSEC professionals needed to support them. Up and down the
line, all of those new employees needed to learn how BHP Billiton
Petroleum works.
We have to communicate and train and make people aware of what
the company expects, especially in terms of safety, Ray says. We are
still in the early stages of that journey. We are establishing baselines
for compliance and learning where our opportunities for improvement
are. From there, we can build on improvement and driving cultural
change. But it is a journey that will take several years.
The lessons the company has learned in the conventional oil and
gas business are now being applied to each of its four giant fields
in the Onshore United States. The companys goal is to become the
safest company in the industry. It is proud of its achievements so
far, and is confident that it will continue to make progress towards
its goal of Zero Harm.

36 BHP Billiton

Good Neighbors
BHP Billiton Petroleum employees live where
they work, and they try their best to contribute
to the lives of those around them.
Its more than just getting along. Whenever BHP
Billiton Petroleum joins a new community, it
studies the quality of life as well as the social and
economic environment to find areas to target for
community development.

Each community is different

Working in various locations would be easier if all situations were
the same, but theyre not. In south Texas, for example, there are few
large cities but many smaller communities.
One in particular is the town of Cuero in DeWitt County, which
lies within the very active Eagle Ford basin. BHP Billiton Petroleum
has more than a dozen rigs working nearby, and there are other

BHP Billiton Petroleum has donated $30,000 per year through

the Thea Foundation to support rural school art programs in the
Fayetteville area.

operators in the area. The company knows that puts a strain on

the local infrastructure. To help compensate, it voluntarily pays
the county of DeWitt a per-well fee to help offset the cost of
maintaining the roads.
In a broader context, company employees also meet regularly with
local officials to address their concerns. It realizes that it affects
these communities, and it wants to do everything it can to help out.

Economic growth

Kids everywhere love to paint.

Community relations aside, the most widespread benefits for every

part of the country where U.S. onshore oil and gas development is
booming are the good-paying jobs, business income, and tax revenue
that development brings. The Fayetteville play in Arkansas is a prime
example, according to a 2012 report from the University of Arkansas
Center for Business and Economic Research. The study highlights the

BHP Billiton 37

many direct ways the state benefits, and hints at the indirect gains for
restaurants, hotels, retail stores, and other local businesses.
The average pay of oil and gas workers, for example, is twice the
average for all other industries in the state. New businesses in
central Arkansas have also increased at a higher rate than the state
in general for the past ten years.
Manufacturing jobs are coming back. Theres a new $100 million
plant in Saline County that makes ceramic proppant for use in
hydraulic fracturing. Two manufacturing plants in Arkansas and
a sister plant in Missouri hired a total of 1,000 people to build
railroad cars to haul sand to the oil and gas fields. The University

of Arkansas study adds that even with the slowdown in the U.S.
economy in general, five out of the nine Fayetteville Shale counties
saw higher than expected growth
According to the Texas Railroad Commission, the Eagle Ford
produced 308,139 barrels of oil in 2009. That jumped to 4.3 million
barrels in 2010 and then to an astounding 36.6 million in 2011.
In 2009, 19 billion cubic feet (Bcf) of dry gas and 839,490 barrels
of natural gas liquids (NGL) were produced. Those figures jumped
to 287 Bcf of dry gas and 7.0 million barrels of NGL in 2011. The
Commission predicts that the Eagle Ford will continue to shatter
even these output figures in the years to come.

A BHP Billiton Petroleum employee watches activities at the Main Street Searcy Festival in Searcy, Arkansas.

38 BHP Billiton

Avoiding potential
roadblocks
In rural areas, the economic benefits of oil and gas
development come with their own set of challenges.
Rural roads were never meant for heavy use, but drilling and
fracturing a single well requires hundreds of trips to and from the
well site in trucks weighing up to 40 tons each. Just moving drilling
rigs over county roads can amount to the wear and tear of years of
normal traffic.
Companies like BHP Billiton Petroleum recognize that, and have
stepped forward to help address the problem by offering to
compensate counties to offset the extra traffic their operations
bring. For example, until a permanent and equitable solution can be
found, BHP Billiton Petroleum has been voluntarily paying DeWitt
County a per-well fee as a way to offset the cost of maintaining the
roads. Everyone knows, however, that the current arrangement is
only an interim solution.

DeWitt County Judge Daryl L. Fowler is the highest elected public

official in his county.

Where will all the new workers live? Are there enough restaurants
and stores in small towns to support the rapid increase in
population? Are there adequate medical facilities and schools? In
most cases, local governments, enterprising individuals, and private
companies are rushing to fill the gap.

Good roads are good for business, Fowler says, but at the county
level, we just dont have the revenue to maintain them without some
help from the state.
Part of the problem is the way tax money is allocated. While the
State of Texas receives all of the royalties for oil and gas production
on land where it owns the mineral rights, the money is not
earmarked for roads.
For the first six months of 2012, oil and gas companies operating
in DeWitt County paid $71 million in severance taxes to the State of
Texas, Fowler says. DeWitt County didnt get a nickel of it.

But what about the roads? asks DeWitt County Judge Daryl Fowler.
His jurisdiction, a rural area in south-central Texas, sits atop the
richest part of the Eagle Ford Shale. DeWitt County maintains 689
miles of road, and 342 of them are simple gravel or asphalt lanes.
DeWitt Countys growing pains are typical.

But the judge is hard at work with the state legislature to find a
permanent solution. It is a classic case of industry and government
at the both the local and state level working cooperatively to the
benefit of all concerned.

BHP Billiton 39

Big trucks for big jobs

The high volume of truck traffic on
rural roads is a problem the industry
and host communities are dealing
with in almost every region where
shale oil and gas is being developed.

Company Profiles
42 Cameron
46 Baker Hughes
48 Celerant
50 FTS International
52 GE Oil & Gas
54 Halliburton
56 Jacobs
58 Nabors
60 Jet Maintenance
61 Schlumberger

Custom
Publishing
VP, PennWell Custom Publishing
Roy Markum
roym@pennwell.com
Managing Editor and
Principal Writer
Richard Cunningham
richard@rcunninghamstudio.com
Art Director
Meg Fuschetti
Production Manager
Shirley Gamboa

PennWell Petroleum Group

1455 West Loop South, Suite 400
Houston, TX 77027 U.S.A.
713.621.9720
fax: 713.963.6285
PennWell Corporate
Headquarters
1421 S. Sheridan Rd.,
Tulsa, OK 74112
P.C. Lauinger, 19001988
Chairman, Frank T. Lauinger
President/CEO, Robert F. Biolchini

42 BHP Billiton

Company Profile
Cameron

BHP Billiton Petroleum Taps Frac Equipment

and Services Leader Cameron for Shale,
Deep Permian Basin Development
Providing enhanced uptime
through high-integrity
critical frac equipment
monitored by FracServ,
Camerons Valve Integrity
Protection Plan (VIPP)
BHP Billiton Petroleum is accelerating
development of both dry gas and liquidsrich shale gas formations such as those
found beneath its extensive lease
holdings in the Fayetteville and Eagle Ford
shales, among other domestic tight gas
regions. The company also is ramping up
horizontal drilling and completion of more
conventional deep, oily gas formations
located in the greater Permian Basin.

Cameron recently entered into a five-year fixed contract to provide BHP Billiton Petroleum with
flowback services in the Fayetteville Shale Play.

Working hand-in-hand with BHP Billiton

Petroleum in developing shale gas and
liquids production and other tight gas
sands is Cameron, whose Surface Systems
division provides integrated well surface
equipment and services for high-pressure,
high-fluid volume fracturing, flowback
operations and well testing.

systems critical to BHP Billiton Petroleums

fracturing and well completion operations in
the shale areas, Cameron recently entered
into a five-year fixed contract to provide it
with flowback services in the Fayetteville
Shale play.

Cameron is among top manufacturers and

suppliers of high-quality, reliable pressure
control and flowback equipment to ensure
enhanced results from ever larger highpressure frac operations with higher fluid
volumes that cost tens of millions of dollars.

One main reason for partnering with

Cameron is its ability to provide highintegrity equipment and systems, a crucial
aspect for an operator in mitigating HSSE
issues as well as risks associated with
horizontal drilling and hydraulic fracturing.

The two companies have maintained

an extensive global relationship with
regard to subsea oil and gas operations
in the offshore environment, as well as
in conventional land-based development.
They have carried that association further
as a result of BHP Billiton Petroleums
acquisitions of its large lease holdings in
shales. In fact, in addition to providing
its full range of flow control products and

As a responsible operator, BHP Billiton

Petroleum is conscientious of protecting
its personnel and contractors on location
as well as the communities in which it
drills. The selected supplier must be able
to provide high-quality equipment and
services of such integrity that it alleviates
failures. Risk mitigation starts with reliable,
high-quality equipment, but is sustained
by proper monitoring and maintenance, as

Cameron supports its flexible

solutions with highly trained,
competent service technicians.

BHP Billiton 43

provided by FracServ, Camerons Valve

Integrity Protection Plan.

handle the challenges that are unique to

this fast-growing element of our industry.

caused by a gate valve failure is idle time

for an expensive frac crew.

A top choice gate valve

for Frac Operations
As a leading provider of critical and highpressure control equipment, Cameron is
committed to providing effective, safe,
reliable, and cost-effective products to

Frac service is about as harsh as it

gets. Gate valves are exposed to nearly
continuous service, flowing and controlling
high-pressure, high-volume, abrasive
frac fluid for days, and even weeks, on
end. And the cost of failure is high. Delay

A key component of Camerons products,

including frac manifolds and frac trees, is
its internationally recognized FLS-R gate
valve, which provides operators with highquality metal-to-metal sealing to deliver
design dependability and durability within
harsh and erosive operating environments.
The FLS-R gate valve has established a
worldwide reputation as a top choice
valve for fracturing operations in both
conventional and unconventional resources
areas. It is designed, developed, and
qualified by Camerons engineers. As all
Camerons large-bore and high-pressure
gate valves, the FLS-R is manufactured
in-house at the companys state-of-the-art
manufacturing facilities. It has a reputation
for excellent performance earned in
tackling a long list of extreme applications.
For fast, positive remote operation,
Cameron provides the FLS-DA2 gate valve.
It has a simple design with all the metal
sealing features of the FLS-R, but with a
double-acting hydraulic actuator.

Cameron offers composite frac tree systems. By incorporating the master and swab valves,
and wing outlets into a solid body, the number of potential leak path connections as well
as the tree height and weight are reduced.

A key component of Camerons products, including frac manifolds and frac trees, is its
internationally recognized FLS-R gate valve, which provides operators with high-quality
metal-to-metal sealing to deliver design dependability and durability within harsh and
erosive operating environments.

FracServ Monitoring fatigue

life of critical frac equipment
Typically, surface frac equipment is
subjected to a series of forces that
serve as drawbacks to an efficient

Cameron is among top manufacturers and

suppliers of high-quality, reliable pressure
control and flowback equipment.

44 BHP Billiton

Leveraging Technology
Accustomed to high-end technology in
its offshore development projects, BHP
Billiton Petroleum is naturally interested
in any technology that offers efficiency,
promotes safety, and minimizes downtime
for its onshore shale operations.
Partnering with an industry leader such as
Cameron offers access to technology and
new innovations that have the potential to
be game changers.

Through the FracServ Valve Integrity Protection Plan, Camerons competent field
inspection specialists follow a set of procedures written by the companys design and
quality engineers to assure the integrity and service performance of its frac fleet.

and successful operation. These

include high-working pressures, high
volumes of abrasive frac proppant per
stage, highly corrosive fluid additives,
equipment vibration, oscillation,
bending loads due to pump cavitations,
shrapnel from perforated casing, and
the debris resulting from drilled-out
isolation plugs. These effects result
in flow-bore erosion, wetted surface
corrosion, high and variable loads in
pressure vessels, and similar bending
loads in equipment bolting.
The philosophy of knowing the severity
of such effects is the crux of the
Camerons FracServ Valve Integrity
Protection Plan, which the company
provides for its manufactured surface
frac equipment. Through FracServ,
Camerons competent field inspection
specialists follow a set of procedures
written by the companys design
and quality engineers to assure the
integrity and service performance of
its frac fleet. Although a vigorous
commitment, the company believes
this principle offers better protection
to shale operators than a flush and
test approach. The latter procedure
requires little to no disassembly and,
at best, limited verification of trapped
debris. The bottom line for Camerons

FracServ is that it mitigates safety and

environmental risks while enhancing an
operators fracturing uptime.

Cameron already offers composite

frac tree systems as an alternative
to conventional frac tree systems. By
incorporating the master and swab valves,
and wing outlets into a solid body, the
number of potential leak path connections
as well as the tree height and weight are
reduced. Taking the compact concept
further, Cameron expects to launch its
next generation frac tree, the F-T90 in
early 2013. This new design is expected
to not only offer a smaller footprint and
reduced height, but further enhance the
integrity of overall frac operations.
As with all Camerons frac trees, the
F-T90 can be operated with pneumatic,

Accustomed to high-end technology in its offshore development projects, BHP Billiton

Petroleum is naturally interested in any technology that offers efficiency, promotes
safety, and minimizes downtime for its onshore shale operations. Partnering with an
industry leader such as Cameron offers access to technology and new innovations that
have the potential to be game changers.

The ECO2 System accurately measures production, reduces emissions, and collects natural gas liquids for transfer.

hydraulic, or electric actuation. The

electric frac tree actuation control system,
manufactured by Cameron, minimizes
potential damage to vulnerable hydraulic
power units or to the lengthy, leak-prone
hydraulic lines that typically meander
around wellsite equipment.
The equipment and technicians required to
hydraulically fracture a well are expensive.
When drilling a single well, a significant
amount of idle time is imposed on these
costly resources. A frac manifold can
provide for almost continuous utilization
of the frac crew and equipment, from
the first treatment at the toe of the
first well to the last treatment at the
heel of the last well. This represents a
substantial improvement to the effective
use of the frac resources and, thus, to the
overall economics of the well. Camerons
Generation II Frac Fluid Delivery System
(FFDS) is an improvement of the current
frac manifold design. It is a solid monoline solution that utilizes API standards
and controlled bolted connections that
promote a higher level of system integrity,
and hence, safety. Parallel to this effort,
Camerons engineers are working on a
Gen III design that may well become a
game changer to the industry.

These innovations, when ready for market,

will allow operators a more secure and
defensive option than current practices
with frac iron.
From an ecological standpoint, Cameron is
also taking initiative in green innovations
with its ECOnomical and ECOlogical (ECO)
production system. Using a three-phase
separator (oil, gas, and water), a stabilizer
and a natural gas powered generator,
Cameron is able to environmentally control
higher gravity oils and natural gas liquids
without the release of Volatile Organic
Compounds (VOC). Typically, vapors from
a storage tank need to be controlled
(that control method includes flaring the
vapors or utilizing a vapor recovery unit
to recompress them to a higher pressure)
and subsequently moved to a pipeline for
transport. The ECO production system
does not allow the vapors to be generated.
They are kept under pressure until they get
to a point where they can economically be
collected and sold.
The rapid growth in the production of shale
oil and gas in recent years has brought
phenomenal growth as well as unique
challenges to our industry. Cameron
is actively resolving these challenges

and brings to the table a heritage of

industry leadership, a reputation for
technically sound products, quality
in-house manufacturing, reliable product
performance, and service excellence.
Cameron is a leading provider of flow
equipment products, services, and systems
to worldwide oil, gas, and process industries.
Leveraging its global manufacturing,
engineering, and sales and services network,
Cameron works with customers to control,
direct, process, measure, and compress
pressures and flows.

Cameron
4646 W. Sam Houston Pkwy. N.
Houston, TX 77041
Tel 1.713.939.2211
Fax 1.713.939.2753
www.c-a-m.com

46 BHP Billiton

Company Profile
baker hughes

Baker Hughes has the technological

solutions to meet oilfield challenges
Every shale play presents a diverse range
of challenges, and those challenges require
a service company with equally diverse
experience. Baker Hughes is a global oilfield
services company that offers a wide array of
products and services to operators, including
the expertise of scientists and technicians
who can bring the right mix of knowledge
and tools to characterize reservoirs, drill
boreholes, evaluate formations, cement
casings, run completions, and stimulate and
monitor production. The companys ability
to leverage enterprise capabilities results
in better wells, improved productivity, and
continued safety.
With the integration of pressure pumping
services, Baker Hughes commitment to
delivering safe and effective solutions
that maximize asset value while meeting
environmental responsibility goals is
stronger than ever.
For decades, Baker Hughes has helped
operators overcome operational hurdles in
Texas. In the Eagle Ford Shale, for example,
one of the most prolific fields in the U.S.,
Baker Hughes has drilled more than 1
million feet, and has been actively involved
in 97% of all wells in the Eagle Ford to date.
The company has played a significant role
in the successes that BHP Billiton Petroleum
(BHP) has experienced in the liquids-rich
Eagle Ford and Permian Basin. Baker Hughes
plans to be there for the long haul, providing
the expertise and high-tech equipment
necessary to produce these fields.

Integrated bottomhole assembly

optimizes well placement
and ultimate recovery
Through a combination of Baker
Hughes bits, motors, rotary steerable
systems (RSS), and real-time logging
tools, the company can engineer an
integrated bottomhole assembly to
optimize well placement and ultimate
recovery. Baker Hughes is able to see
the reservoir, often in great detail, with
the use of our advanced visualization
and modeling tools.

For the demanding build and lateral

sections of the Eagle Ford wells, Baker
Hughes drilling systems, when matched
with application-specific bits, provide
an unrivaled level of drilling service
performance. Our latest RSS and highperformance motors let operators drill
curve and lateral sections using the same
equipment, lowering cost and reducing
operating time, said Mathias Schlecht,
Baker Hughes Vice President of Technology
for Drilling and Evaluation. The
AutoTrak Curve RSS allows high buildup
rates, extended-reach laterals, precise
wellbore placement, and a reduction in
time on the well by drilling vertical, curve
and lateral sections in one run.
The Hughes Christensen Talon highefficiency PDC drill bits are designed
in conjunction with Baker Hughes
AutoTrak Curve RSS. Working together,
these technologies meet the challenges
of drilling unconventional plays with
exceptional accuracy, reliability, and
speed. Weve seen some really great
performance with our Talon bits, said
Mark Freeman, Baker Hughes Director of
U.S. Land Sales. Our StaySharp cutters
keep the bit efficiently drilling longer so
run life is maximized with higher ROP,
helping to reduce the days on the well.

Customizable, environmentally
responsible drilling fluids
Baker Hughes LATIDRILL drilling
fluid system is an integrated waterbased platform customized to address
multiple drilling objectives with
improved performance compared to the
conventional water-based mud systems.
It provides aggressive attributes that
supersede invert-emulsion systems in
terms of speed, wellbore protection, and
cost reduction. The platform capabilities
have further enabled operators to set new
performance, HSE, and cost benchmarks in
challenging drilling operations.
The drilling fluid system can be packaged
with the full range of Baker Hughes

Baker Hughes is a leading supplier of

oilfield services, products, technology, and
systems to the worldwide oil and natural
gas industry.

shale solutions, including Baker Hughes

StarTrak imaging tool, which identifies
natural and induced fractures while
drilling, and characterizes the horizontal
for optimal zone placement and maximum
production potential.
The LATIDRILL system is one of the
companys latest additions to the
SmartCare family of environmentally
responsible solutions. Baker Hughes is the
first oilfield services company to apply
a comprehensive chemical evaluation
process to products beyond those used in
hydraulic fracturing. The expansion offers
additional responsible, high-performing
chemical products to operators. As new
requirements take shape, the SmartCare
family will be continuously updated and
expanded so Baker Hughes customers can
confidently comply with regulations and
still deliver on production targets.

Effective zonal isolation

A high-quality cement job is an important
aspect of any well. Baker Hughes began
working with BHPs predecessor in the
Eagle Ford in 2008. The initial cement slurry

BHP Billiton 47

designs were taken from extensive and

successful work Baker Hughes had performed
in the Haynesville area. Before applying Baker
Hughes engineered Set for Life slurry
designs to the Eagle Ford, it was matched to
the Eagle Fords unique requirements.
Slurry properties were systematically finetuned to provide effective zonal isolation,
which is necessary for complex hydraulic
fracturing of lateral sections. The addition
of unique spacer technologies, such as
Baker Hughes exclusive SealBond
cement spacer systems, allows for cement
and fluid lift without losses to formation
while providing a water-wet coating
all important factors in achieving a good
bond. Baker Hughes state-of-the-art,
fully automated Falcon cementing units
provide quality operations.
Additionally, Baker Hughes reliable
composite plug systems provide a barrier

that the companys customers can

depend on to fracture against. In order
to effectively stimulate the Eagle Ford
laterals, BHP has looked to Baker Hughes
composite plugs since 2010, said Justin
Dworaczyk, Baker Hughes Marketing
Director for Completions and Wellbore
Intervention. Since then, we have run
4,575 composite plugs with a nearly
100% success rate.

More technology for

optimal performance
Baker Hughes electrical submersible
pumping (ESP) systems optimize production
for thousands of wells around the world
in a broad range of applications. After
installation of a Baker Hughes highvolume ESP system into one of BHPs
wells, as an alternative to drilling five
water supply wells, the rate at which water
was produced from the supply well to fill
the tank for the pressure pumping job
increased 250%. This decreased the time
between well completions by as much as
five weeks, allowing BHP to return to its
planned drilling pace.
Wells in the Haynesville shale can have a
high level of hydrogen sulfide, which often
leads to internal corrosion of production
equipment. Baker Hughes has developed
a unique suite of production chemicals
to deliver total production solutions that
are delivered via capillary services. Baker
Hughes also offers robust chemical-feed
and tank-monitoring services.
We successfully treat Haynesville wells by
continuously injecting a combination high
temperature scale-corrosion inhibitor,
said Don Brookshire, Baker Hughes
Sales Director for U.S. Land Production.
In addition, our comprehensive
deliquification chemical services help
production flow again.
We not only address the immediate
demands of increasing production and
reducing downtime, but we also review
the application, cost, and effectiveness of
our scale control program on a continuous
basis, said Douglas Stephens, Baker
Hughes President of Pressure Pumping.

Baker Hughes PETROSWEET hydrogen

sulfide scavengers sweeten natural gas
and produced fluids.

We have the expertise to understand

the reservoir and then bring the right
mix of technologies and products to

optimize and enhance operators wells and

productivity, Stephens continued.
One solution with the potential to
enhance long-term production is Baker
Hughes Sorb family of solid inhibitors.
MultiSorb technology allows the
combination of two or more Sorb chemical
products in treatments designed to
address multiple issues simultaneously. In
the Eagle Ford Shale, the technology has
been used to treat paraffin, asphalt, and
biocides, among other issues.

Technology and training

Baker Hughes technology and education
centers help accelerate the delivery of
advanced technology to the market.
Among the companys multiple worldwide
technology and education centers and
laboratories is the Baker Hughes Center
for Technology Innovation (CTI), located in
Houston. CTI develops new solutions for
the industrys toughest completions and
production challenges.
Baker Hughes global shale teams also
are supported by a drill bit manufacturing
plant in The Woodlands, Texas, and a
Pressure Pumping Technology Center
in Tomball, Texas. The Tomball campus
has well-equipped laboratories that do
everything from mineralogical identification
to determining the compatibility of the
formation with completion, fracturing, and
stimulation fluids.
For more information about Baker
Hughes technologies and solutions,
please contact Anthony Hooper at
1 281-357-2647 or review our website at
www.bakerhughes.com.

Baker Hughes
2929 Allen Parkway
Houston, Texas 77019
Phone: +1 713-439-8600
Fax: +1 713-439-8699
www.bakerhughes.com
Email: pamela.easton@bakerhughes.com

48 BHP Billiton

Company Profile
celerant consulting, inc.

The meter is running on your supply chain

mobilize equipment and service contractors
for each job. How will a delay or shortage
today affect not only that well location, but
then the next well location, and possibly
the sequence of well locations where those
same resources will be used down the
road? When you then consider multiple
(sometimes several) rigs, trucks, equipment
and contractors working at many locations
across an entire field, it is easy to envision
how critical the overall supply chain is to a
development projects success.
Rig & Equipment Movement

While the cost of such waste is high, what

hurts field operations most is the delayed
production revenue caused by the many
mishaps and mistakes incurred along
the way. When you consider how those
seemingly minor incidents compound
one another, you can start to see how an
entire fields development becomes suboptimized, driving up capital costs and
lowering returns on investment.
How does this happen? More importantly,
how can it be prevented?

Delays, lost days, and wrong priorities can

all result in lower net production volumes
and higher spends.

The challenge is that most of the technical change has been

layered on top of management systems that are no longer
able to keep up. Celerants goal is to increase managements
full control of the interactions between field operations and
the supply chain.

You may have the best engineers in the

business on your team, and you may tell
them over and over how much you want
to manufacture quality wells, both safely
and quickly,
that doesnt
make them
Rig & but
Equipment
Movement
well manufacturing experts, says Gary
Traylor, Senior Vice President for Celerant
Consulting, Inc. We see it all the time.
Those on the front lines just do not have
the manufacturing know-how or the
management tools needed to integrate their
field operations with their supply chain.
Exploration and production companies
are good at finding oil and gas, but
manufacturers who make anything from
automobiles and aircraft to appliances
and apparel are much more adept at
managing their supply chains. These
companies understand and apply for
many years advanced supply chain
concepts as operations demand planning
and integrated resource scheduling.
They know how to optimize multiple
manufacturing constraints, balancing
lead times and capacity limitations with
n

io

ct

u
od
Pr

Co

sts

Demand - Constraint
Optimization Model

ices

ices

fing
Staf

The fundamental challenge is one of

integrating the two sides: field operations
and supply chain.

Serv

n problem may seem to

At first glance, othe
ti
lie within anucE&Ps
supply chain Cfunction.
o
d
ro
Deeper Pinvestigation
often shows itstis
s
a two-sided problem. The customers
(the field) are constantly changing their
requirements, going outside and around
company policies and procedures, perhaps
Demand - Constraint
repeatedly changing the X-Y location itself,
Optimization Model
and submitting their requests at the last
minute to the supply chain organization,
thereby jeopardizing the schedule for
on-time and in-full delivery. Meanwhile,
the supply chain organization is backedup with contract Materials
requirements, consumed

Serv

More often than not, the

root-cause is poor supply chain
management systems
When you think of all the costly details
that go into safely building a single
well, operators expect some degree of
overspending and production delays.
However, in unconventional plays, where
operators are scrambling to manufacture
hundreds or even thousands of wells
quickly over the next few years, the
compounded losses from this inefficiency
are staggering. Consider, for example,
the lead times required to organize and

with logistics, and doing anything it can

to stay up with changes in the field. It can
seem like a never ending battle.

fing
Staf

Let us say that the land drilling rig rentals

and contractors are costing you $75,000
a day. How much time are you willing to
spend waiting for someone to deliver a
$500 flange? What about the frac spread
thatthrough some mix-upshowed up
a day early and is now charging $25,000
an hour to sit around? Remember when a
load of pipe was delivered to the wrong
location, or maybe it was the wrong pipe
in the first place? Even worse, wells are
drilled and completed, but then they sit
there, awaiting the facilities and pipeline
needed to produce them.

Materials

Optimization occurs through integrated

resource demand planning and
scheduling, supported by constant
feedback on field execution.

BHP Billiton 49

Celerant consultants work

directly with your people
to achieve break-through
performance.

Celerant is a global management consulting firm that provides operational

strategy and implementation support around the world. Our oil and gas
experience extends across the Middle East, the North Sea, the Gulf of Mexico,
the United States, Western Canada and Brazil. Celerant delivers real and
sustained operational improvements that benefit our clients financially and
culturally. Our approach engages people in a way that ensures commitment
and lasting performance. Celerants ability to deliver is nothing new. Weve
been at it for more than 25 years, and over 90% of our clients say they would
be pleased to work with us again.

resource availability and costs, all

through modern day manufacturing tools
and techniques.
That is where Celerant comes in, Traylor
says. We have seen in our projects
that much of what other industries have
learned can be applied to exploration and
production. Our consultants have shown
clients where supply chain inefficiencies
are costing them big money within
their operations, and then provided the
management methods and tools needed to
avoid such costs and delayed production.
It doesnt matter whether we are talking
about field development projects or
ongoing field operations, e.g. when well
work overs and routine well repairs can
be completed in less time, failed wells are
brought back to production much faster.

How we work
First, a Celerant team of management
system experts will study your field
operations and its historical performance.
The team will work with your management
and supervisors, both in the office and
in the field, to gather and analyze data
identifying opportunities to improve.
They will talk to your engineers and
geoscientists, as well as your rig
superintendents, field operators,
contractors and suppliers to capture the
full story, so they can then show you the
complete opportunity for improvement.
Celerant collaborates with you to fix the
issues, using the management systems,

methods and tools they adapted from over

25 years of business.

can increase their control over operations

and stay at the top of their game.

Celerant is not just another E&P

management consulting firm. It has
worked across the oil and gas value chain,
including exploration and appraisal,
drilling and completions, facilities and
pipelines, as well as field and well
operations. Celerants solutions drive
value throughout an organization. Its
core strength is its deep understanding
of the complete oil and gas value chain,
regardless of departmental function or
type of operation.

Making it relevant
The last twenty years have brought
unprecedented and occasionally
unexpected advances in horizontal drilling
and hydraulic fracturing practices. With
them have come more new opportunities
than most oil and gas professionals have
seen in a lifetime.

But even more, Celerant brings learnings

and best practices from a multiple range of
industries in addition to E&P. Drawing from
that knowledge base, Celerant consultants
can provide the very best management
systems needed to meet your cost,
scheduling and ROI performance goals.
While we often work in the field to help
deliver significant measurable results,
we share our expertise up and down the
clients management ladder, says Celerant
Senior Vice President Maarten van Hasselt.
Celerant works with its clients from
the shop floor to the top floor. We work
closely with business unit managers, their
management teams and reports so that
they can not only talk the talk, but then
walk the talk for their organization to hear
and see. Using data and studies from the
field, as portrayed through our advanced
management tools, we show them how they

The challenge is that most of the

technical change has been layered on
top of management systems that are no
longer able to keep up. Celerants goal is
to put management back in full control
of their operations. In the new world
of unconventional plays, Celerant helps
companies integrate their field operations
and supply chains, to safely manufacture
new wells and return existing wells to
production, each within the shortest
amount of time and at the lowest
possible cost.

Celerant Consulting, Inc.

1980 Post Oak Blvd, Suite 1500
Houston, Texas 77056
+1.713.360.4831
Website: www.celerantconsulting.com

50 BHP Billiton

Company Profile
fts international

FTS International Delivers Well Completion

Services Focused on Maximizing Results
Custom Proppant Helps
BHP Billiton Petroleum
Increase Production in the
Haynesville Shale
When BHP Billiton Petroleum
first began work in the
Haynesville Shale, the operator faced
issues common with the play, known
to be the deepest, hottest, and highest
pressured shale among the major
unconventional plays in the United
States. One particular challenge was
placing proppant in the Haynesvilles
deep formations during the hydraulic
fracturing process. FTS International
(FTSI - formerly Frac Tech), a leading
provider of well completion and
stimulation services, partnered with
BHP Billiton Petroleum to develop a
custom solution Spearprop proppant,
designed and produced by FTSI to meet
the needs of BHP Billiton Petroleum in
the Haynesville.
Because FTSI engineers, manufactures
and produces many of the key components
used in its well completion operations,
the company is uniquely equipped to
customize its services, products and
equipment focusing on customer
needs, including distinctive requirements
for individual plays and reservoirs. FTSI
creates and delivers innovative solutions
focused on maximizing production.
Since 2008, FTSI has worked with
BHP Billiton Petroleum and Petrohawk
Energy Corporation (acquired in 2011),
to enhance well productivity. During
the initial work in the Haynesville,
formation depth presented a significant
challenge. These deeper areas required
costly linear and crosslinked gel systems
to place even a nominal amount of
40/70 proppant. These completions
were also prone to screenouts requiring
coiled tubing intervention. Completion

Spearprop proppant was

custom-created by FTSI
to help BHP increase its
production in the Haynesville
Shale. Spearprop
proppants green color helps
field engineers easily identify
it from other proppants to
ensure optimum amounts of each
proppant are added to the system.

costs escalated while production rates

fell short of expectations.

Meeting challenges,
exceeding expectations
FTSI responded to the challenge by
developing a more effective, innovative
well completion solution. Working
closely with BHP Billiton Petroleums
completions teams, FTSI engaged
experts from its engineering group,
in-house research and development
labs, company-owned proppant sources
and resin coating operations. These
experts worked together to invent a
custom solution to address BHP Billiton
Petroleums challenges in the Haynesville
Spearprop proppant.
Featuring increased conductivity and
higher permeability, Spearprop proppant
serves as a bridge between 100
mesh and 40/70 proppants. This allows
fracturing of Haynesville wells with a
simpler, less costly slickwater process,
while enabling better penetration into the
deep formations and fostering increased
natural gas production.
Since this innovative solution was
developed, BHP Billiton Petroleum has
used Spearprop proppant in a majority
of its wells in the Haynesville, pumping
approximately eight million pounds per
month for a total of 2,629 stages as
of September 2012. Screenouts were
reduced and production improved over a
leading competitors system used in the
play. It all adds up to better profitability
for BHP Billiton Petroleum in the

Haynesville. Plus, FTSIs proprietary

proppant sources and resin coating
facilities help keep costs in check for the
custom Spearprop proppant.

A true leader in safety training

Engineering advances arent the only
attributes that help FTSI clearly identify
its position in the market. The company
is also focused on Health, Safety, and
Environmental (HSE) leadership. For
example, FTSI had zero recordable
incidents (OSHA TRIR = 0.00) for the last

BHP Billiton 51

FTSIs people are also a driving factor in its success.

Committed in every way to help ensure each well
reaches optimum production while maintaining safe
operations, FTSIs people are a tremendous resource.
year and a half on BHP Billiton Petroleum
sites. The foundation of FTSIs safety
ratings is the companys commitment
to training. Its professional HSE staff
administers year-round safety training, and
reinforcement programs are designed to
deliver a best-in-industry record. In fact,
FTSIs New Team Member Training program
is PEC Premier SafeLandUSA accredited, a
distinction only one other company in the
oil and gas industry can claim.
FTSI Service Supervisor Dennis Dunn
and Field Safety Trainer Patrick Hicks
demonstrated exceptional dedication to
excellence, helping to deliver a perfect
safety record for BHP Billiton Petroleum in
the Haynesville.

Respecting the environment while

developing new technology
FTSI continues to explore more
environmentally friendly ways to do

business. The company produces a line

of ECO-Green hydraulic fracturing
additives designed to increase production
while minimizing environmental impact.
One product in this line is Slickwater
Green customizable powdered blend.
Engineered according to the American
Chemical Institutes Principles of Green
Chemistry, the blend is pre-mixed based
on job specifications and delivered in
dry form. This eliminates the need for
product totes, decreasing the operational
footprint and transportation costs. An
additional benefit of Slickwater Green
blend is that it eliminates concerns about
the product freezing during transport or
storage in harsh climates.
FTSIs new state-of-the-art Corporate
Technology Center in Houston will foster
the development of even more cutting
edge solutions, including next generation
fluids, market-leading research and

customized technology, focusing on

improving recovery. The facility includes
equipment that FTSI experts will use in
their research related to reservoir and
rock mechanics, proppant technology,
and fluid behaviors.
Personalized service is a core value of
FTSI. Dedicated teams, from engineers
who work in-house at customer sites to
customer-exclusive field staff, demonstrate
FTSIs focus on delivering excellent
customer service.

FTS International
777 Main Street, Suite 3000
Fort Worth, TX 76102
Phone: 866.877.1008
www.ftsi.com
sales@ftsi.com

52 BHP Billiton

Company Profile
ge oil & Gas

Innovative wellhead and frac solutions

strive to improve safety, keep production
costs in check
The development of unconventional gas
and oil has spurred attempts to apply basic
offshore platform techniques such as
the assembly line to drilling and fracing
operations on land. Pad drilling is a prime
example. Drilling several wells from one
small well site reduces costs of multiple site
preparation and down time due to breaking
down, transporting, and reassembling the
rig at each location. But in order to make the
most of such cost savings, many operators are
considering unconventional wellhead designs
which not only require less installation
time, but are designed to improve safety for
personnel and the environment. GE Oil &
Gas has spent a substantial amount of time
collaborating with operators as they redefine
their drilling procedures and look at ways to
operate more safely and efficiently.

Our History and Culture

GE Oil & Gas is making significant
investments in new technology, facilities,
people, and services to support our oil
and gas customers in key unconventional
plays across North America and beyond.
One such investment was our acquisition
of Pressure Control, a surface wellhead
manufacturer and frac service provider,
from Wood Group in April 2011.
GEs earlier acquisition of VetcoGray in
2007 had introduced surface and subsea
wellhead equipment to our oil and gas
portfolio. Rather than folding Pressure
Control into the existing VetcoGray surface
wellhead business, GE did the opposite, so
as to exploit Pressure Controls successful
business model. The challenges of the past
year have been tremendous:
D oubling our head count by merging two
similarly sized businesses and learning
to manage and leverage their combined
strengths;

Cross-training field service personnel

and others on the new, expanded
product offerings and their application;
Restructuring our supply chain to
accommodate a 50% increase in
production while maintaining our
reputation for quick responsiveness and
dedicated customer service;
Remapping our network of service
centers, consolidating those where
VetcoGray and Pressure Control both
had a presence, replacing older facilities
with new fit-for-purpose spaces, and
following our customers migration into
new oil and gas regions to maintain the
ability to respond quickly to their needs;

Pad well sites allow adjacent wells to be

fractured in quick succession, thus saving
transportation and site preparation costs.

A nd continuing to provide the customer

service that our culture values, while
converting infrastructure on every level
over to GE systems.
It has been a huge undertaking that is not
yet complete. At GE Oil & Gas, we continue
to learn from our remarkable successes
and challenges encountered along the
way. Businesses are ever-changing and
must continue to adapt in order to grow.
Our successful growth is a testament to
innovative thinking and willingness to learn
from those challenges, and will ultimately be
of benefit to our customers.

Wellhead Solutions
Time-saving wellheads, which also provide
safety advantages, were first introduced
approximately 35 years ago. Since
then, unconventional wellheads have
continued to evolve to reflect the industrys
continually changing drilling methods, and
offer efficiencies that cannot be achieved
using more traditional wellhead systems.
Whether it is a Speedhead system, one of
the many MB multibowls, an S95 TimeSaver or any other system which suits

During the quiet time after the drilling crew

leaves and before the hydraulic fracturing trucks
arrive, a BHP Billiton Petroleum wellhead is fitted
with a rental frac tree.

BHP Billiton 53

a specific application, these GE Oil & Gas

products are backed by a history of over 90
years of surface wellhead engineering and
service expertise. We understand the fastpaced rhythm of the business and the demands
put on our customers not only to produce, but
to produce economically and safely.

Hydraulic Fracturing Solutions

GE Oil & Gas has a long heritage of designing
and manufacturing gate valves and actuators,
so it made sense to enter the frac market as
a full service frac valve/frac tree provider. We
offer a broad range of frac tree systems from
2-116 10M through 7-116 20M, equipped
with manual and/or actuated valves available
on either a purchase or a rental basis. Frac
stands are also available to facilitate safe
access to all the valves and critical outlets or
connections on these very large trees.

Completed BHP Billiton Petroleum well.

To simplify customer operations, we serve

as a single source for all ancillary equipment
for frac trees, including wellhead isolation
sleeves, back pressure valves or two-way
check valves, lubricators, hydraulic closing
units, and multi-access frac heads on a
per-day rental or project basis. To further
enhance our frac equipment offering, a full
complement of associated frac equipment
services is available to properly install,

maintain, remove, and refurbish equipment.

Our crane trucks deliver fully assembled
frac trees and install them on the wellhead
after the drilling rig is moved from the
site but before the heavy frac tanks and
other equipment are moved in. This often
significantly reduces set-up time in the field,
while providing superior safety on-site.
Test trailers are also available for the prestaging of frac trees and ancillary equipment,
which further increases the flexibility of our
customers on-site operations. To properly
test and maintain our frac equipment while
mobilized, dual air-powered greasing units
are used. Because simultaneous operation by
two service technicians is possible, greasing
time is reduced between frac stages. The
trailer unit also supplies air for torqueing
tools and optional pressure testing services.

Solutions-based on-site support

Our fully trained field technicians are
available 24/7 to safely and efficiently
deliver, install, service, or remove
frac equipment on-site, delivering the
superior performance our customers
expect. Strategically located service
centers are equipped with the latest
technology to safely disassemble, inspect,
repair, refurbish, and disposition frac
equipment upon its return from the field.
A comprehensive inventory of spare
components is stored in each location to
ensure rapid equipment turnaround.
We are working to ensure that as our
customers needs evolve in unconventional
resources, GE Oil & Gas will deliver the
quality and attention to HSE that the
industry demands.

GE Oil & Gas Pressure Control

4424 W. Sam Houston Parkway N.
Suite 100; Houston, TX 77041
P.O. Box 82; Houston, TX 77001-0082
Phone: 832-325-4200
Fax: 832-325-4350
www.geoilandgas.com/pressurecontrol

Larger rental frac stacks are often configured with frac tree stands which provide easy
access to upper valves and connections.

54 BHP Billiton

Company Profile
halliburton

Halliburtons Well-Construction Team

Collaboration Leads to Successful Shale
Developments
BHP Billiton Petroleum has expanded
its fleet of North American shale rigs
over the past six months, and relied
heavily on their vendors for achieving
their improved success. Some of the rigs
employed Halliburtons Red Team, which
increased operational efficiency as a
result of each product service line (PSL)
understanding how the related service
lines work and interact with one another,
as well as collaborating with the BHP
Billiton Petroleum team. Information passes
seamlessly between the Red Team for
each product service line. Collaboration
and data integration by a single source
service provider increases operating
efficiency while a burden is removed from
the operators drilling team to provide data
and operational details to different service
providers. The BHP Billiton Petroleum drilling
team is afforded greater opportunity to
focus on overall optimization and improved
success while Halliburton provides wellbore
evaluation, well construction, completions,
and production sustainability.

Wellbore Evaluation
To evaluate the complexities of the Eagle
Ford Shale, Halliburtons Open Hole
evaluation services deployed the Hostile
Rotary Sidewall Coring Tool (HRSCT)
device to obtain formation core samples
that are more than three times the volume
of standard sidewall cores and have a highly

Attempts

Number
Recovered

Percent
Coring
Efficiency

31

31

100.0

28

27

96.4

38

36

94.7

27

26

96.3

13

13

100.0

13

11

84.6

16

16

100.0

reliable data-collection effort. The cores

are highly useful in defining the mixed
mineralogies of the play, as well as helpful
in better defining the petrophysical log
evaluations. The core data is also used to
define what is required in the mud system,
the geomechanics of the play, and helps in
defining the best design components (fluids
and proppants) for the hydraulic fracture.
The successful BHP Billiton Petroleum coring
campaign conducted in the Eagle Ford
Shale resulted in six of seven wells with
95% recovery or higher, for an average core
recovery of 96%.

Well Construction
Since August, 2011, the Halliburton drilling
team (Sperry Drilling services, Baroid,
Halliburton Drill Bits and Services, and
Cementing) and BHP Billiton Petroleum
worked together to plan and execute the
wells as efficiently as possible. BHP Billiton
Petroleum and Halliburton together drilled
110 wells as of mid-September 2012. The
team reduced the number of drilling days
per well from 30 days to just under 10
days. This was accomplished by, among
other things, improving data transmission
for faster data collection, tailoring mud
programs to meet each wellbore challenge,
and matching the correct bit to the
formation through custom design using
geomechanics data.
Sperry Drilling deployed its
electromagnetic (EM) measurementwhile-drilling (MWD) system to reduce
survey time. The EM system establishes
a two-way communication link between
the surface and the MWD equipment
downhole using low-frequency
electromagnetic-wave propagation to
facilitate high-speed data transmission
to and from the surface. The use of this
technology over the drilling campaign
saved BHP Billiton Petroleum an estimated
$2.4-3.5 million over the 110 wells drilled
in the Fayetteville Production Unit.

Halliburton Drill Bit and Services (HDBS)

8 3/4-in. FXD55M

Halliburton Drill Bits and Services (HDBS)

continuously develops bits to control the
tool face while providing improved speed
and performance. Directional features
have been strategically incorporated into
our bits to create a perfect partnership
with the higher differential-capacity
motors that Sperry Drilling introduced to
meet BHP Billiton Petroleums goal for
reduced nonproductive time. This success
produced multiple one-bit-run wells and
improved drilling-curve performance that
culminated in drilling a complete 1,000-ft
(305 m) 3D curve in less than nine hours.
By implementing the optimized operating
parameters, as well as by using the new

BHP Billiton 55

operation time by 30 percent on zipper

fracs. Besides perforating and setting
plugs, Wireline also provided services to
confirm zonal isolation for well integrity.

Production Sustainability
Multi-Chem, a Halliburton service,
used purpose-built application trucks
and a specially designed process to
provide accurate and reliable delivery of
biocides, scale, and surfactant chemicals.
Multi-Chem also provided post-frac
monitoring, which is critical for continuous
process improvement by allowing the
determination of whether the biocide
treatment is effective or if a reevaluation
of the treatment protocol is needed. MultiChem continues to process and evaluate
data for wells for which it provides postfrac monitoring and provides BHP Billiton
Petroleum with monthly reports.

Sperry Drilling electromagnetic (EM).

motor and bit designs, the curveinterval

average ROP for the 8 3/4-in. FXD55M bit
increased dramatically from 54 to 84ft/hr.
In the Fayetteville and Eagle Ford Shales,
Halliburton Baroid worked very closely
with other team members to enhance BHP
Billiton Petroleums drilling performance
by using Drilling Fluids Graphics (DFG)
software that enabled the prediction of
hole-cleaning efficiency, ECD modeling,
and simulations of drilling conditions to
determine the best operating parameters.
By analyzing mud properties throughout the
resource play areas, Baroid pinpointed mud
properties that reduced costs and enhanced
drilling performance. Invert emulsion drilling
fluids (IEF) were designed specifically for
formations that were drilled through to reach
the geological target while reducing the
number of drilling days and cost per foot.
Baroid worked closely with BHP Billiton
Petroleum on lost circulation strategies
while drilling the Wilcox sand formation.
With continued drilling and fracturing in
the Eagle Ford formation, mud densities
are becoming more difficult to manage due
to the ever-narrowing window between
the pore pressure and fracture gradient
increasingly challenged by the fracturing of
offset wells. Baroid Technical Professionals
worked closely with the Halliburton
Cementing Technical Professionals in
optimizing rheological and physical
properties of the fluid train for maximum

mud displacement while minimizing

potential losses in order to optimize
cement placement and coverage for longterm wellbore architecture integrity.

Completions
Halliburtons Well Construction team
completed 452 tubing-conveyed perforations
(TCP) gun runs with a +99.5% efficiency
rate. Hydraulic fracturing operations were
impressive, as well. Ninety-five percent of
the planned proppant was placed with a
99.4% success rate during a total of 2,181
hours of actual pumping time. The treatments
consisted of friction-reduced water and sand.
The team conducted the first zipper frac for
BHP Billiton Petroleum, which enabled an
average of 7 stage fractures to be created
per day versus the typical 4.5 stage fractures
to be created per day on a single well. Also,
greater fracture complexity was created from
the zipper frac enabling greater reservoir
stimulated volume to be provided to BHP
Billiton Petroleum. Production Enhancement
worked with Sperry Drilling to minimize
the potential of screenouts based upon
well placement and wellbore configuration.
This is a unique benefit gained from using
Halliburton products and services.
Halliburtons Wireline team had
an excellent track record of 99.6%
effectiveness for perforating and plug
setting. They adopted an innovative
technology (lubricator stand) used in the
Rocky Mountains which reduced wireline

Multi-Chem developed the industryleading MVP 2.0 Web-based Chemical

Management Software for productionchemical treatments. This software allows
BHP Billiton Petroleum to easily and
precisely track all of their data related to
production chemicals. The key to effective
production-chemical management is
trend-related data. One-off data can
be misleading and result in irrational
decisions. MVP 2.0 allows easy setup and
monitoring of key performance indicators
specific to BHP Billiton Petroleum fields in
South Texas and Arkansas.

Summary
Halliburtons Red Team working with BHP
Billiton Petroleum has enabled significant
efficiencies for BHP Billiton Petroleum
resource plays. This has resulted in
cost savings and production increases,
which provided significantly improved
profitability for BHP Billiton Petroleum
shale-resource plays.

Halliburton
10200 Bellaire Blvd.
Houston, TX 77072
281/575-3000
www.halliburton.com

56 BHP Billiton

Company Profile
jacobs

Jacobs Focuses on Safe, Optimal Operations

and Efficient Delivery to Market
Jacobs (NYSE: JEC) is one of the worlds
largest and most diverse providers of
technical, professional, and construction
services. The company provides all
aspects of architecture, engineering
and construction, operations and
maintenance, and scientific and specialty
consulting to a broad range of companies
and organizations including industrial,
commercial, and government clients across
multiple markets and geographies.
In the upstream oil and gas market, Jacobs
offers a full range of services, ranging
from conceptual and detailed design,
engineering, procurement, construction
management (EPCM) and commissioning,
to operations and maintenance (O&M).
Jacobs experience and capabilities run the
gamut from oil to natural gas to natural
gas liquids (NGLs) and heavy oil (using
steam assisted gravity drainage), produced
from conventional and unconventional
resources including shale, and using
secondary/tertiary production techniques
such as CO2 enhanced oil recovery for both
onshore and offshore field development
and production.
Clients worldwide rely on Jacobs to
deliver and maintain their upstream
facilities, including oil and gas
production sites, topsides for offshore oil
platforms, and separation and gathering
systems. Jacobs also has vast experience
and expertise in processing facilities such
as gas treatment (sulfur, CO2, acid gas
removal, and others) and fractionation
for NGL in addition to liquids recovery,
compression, and transportation,
including pipeline systems. Jacobs
integrated services include regulatory
aspects such as environmental
assessments, permitting, as well as
water management.
Having worked with all the major
producers and operators in the oil and gas
sector, Jacobs also has a growing portfolio
of projects and services in the area of
shale and other unconventional basins,

such as those described here for BHP

Billiton Petroleum. Many of Jacobs past
and current projects in North America are
contributing significant production growth
in the region.

Jacobs and BHP Billiton

Jacobs has a long standing relationship
with BHP Billiton, across multiple project
sites and facility types, including onshore
gas plants, mining, and minerals facilities.
Our relationship with BHP Billiton spans
over 28 years: from the 1980s, delivering
offshore petroleum projects in the Timor Sea
and major mining facilities in Australia and
South America; to the 1990s working with
the steel, petroleum, and mining businesses;
and now the 21st century, where we
continue to support BHP Billitons customer
service groups around the world.
With global experience in petroleum,
uranium, copper, and nickel, Jacobs is proud
to have provided study, engineering, and
construction management services to many
of BHP Billiton Petroleums major projects.
Jacobs is currently providing engineering,
procurement, and commissioning services
for the surface production facilities at BHP

Billiton Petroleums shale development

projects at the Eagle Ford and Permian
Basins in Texas, and at the Fayetteville
shale in Arkansas. Bringing an optimized
development philosophy to these projects,
Jacobs develops standardized designs and
specifications and leverages volume and
critical equipment procurement, enabling
BHP Billiton Petroleum to move its
products to market quicker.

Eagle Ford Shale Development

At the Eagle Ford Shale asset in south
Texas, Jacobs provides engineering,
procurement, and commissioning services
for gas and liquid handling facilities and
central delivery points (CDPs). Work
began on these facilities in 2012 and is
ongoing. The facilities gather and process
natural gas, condensate, and light crude
in the Karnes, Hawkville, and Blackhawk
areas of the basin. The processed gas
is sent through a sales pipeline, and
condensate is transported to markets
via trucks. Jacobs scope of work at
Eagle Ford includes gas compression,
glycol gas dehydration, amine treating to
remove CO2, condensate stabilization,
modular compression systems and treating

BHP Billiton 57

facilities, vapor recovery, and export

facilities via pipeline or truck.

Permian Basin Shale Development

For the Permian Shale asset in west Texas,
Jacobs is providing engineering and
procurement services for a gas and liquids
handling facility to gather and process natural
gas, condensate, and light crude in the
Pecos area of the Permian Basin. This early
production facility will support BHP Billiton
Petroleums field development planning and
execution in the basin. The project includes
gas compression, glycol gas dehydration,
condensate stabilization, and storage and
truck loading for water and condensate. Like
the Eagle Ford facility, processed natural gas
will be sent through a sales pipeline, while
the condensate is transported to markets by
truck. Jacobs work began on these facilities
in 2012 and is ongoing.

A compression skid at the Karnes site.

Fayetteville Shale Development

At the Fayetteville Shale asset, Jacobs
worked with BHP Billiton Petroleum
to provide engineering services for
infrastructure development at existing
operating facilities, as well as process
safety management (PSM) services. The
work scope included HAZOPs, facility
siting, regulatory compliance, and
conceptual designs for water management
systems integrating fresh and produced
water handling, transportation, storage,
and treating.
Building Long-term Client
Relationships
Jacobs fundamental business strategy is
building long-term client relationships.
Over 80% of Jacobs projects come from

The Karnes site in the Eagle Ford basin.

repeat customers. This strategy yields

strong, long-term relationships with
clients leading to value maximization,
cost advantages, profits, and predictable
project delivery for clients. The
combination of a loyal client base and
steady growth enables Jacobs to attract
and retain the industrys top professionals.

BeyondZero Jacobs World

Class Approach to Safety
Jacobs is dedicated to keeping its
employees, clients, contractors, and
their families safe and healthy through
its BeyondZero safety program, which
promotes a culture of caring that extends
beyond the office and work sites. Jacobs
safety culture combines comprehensive
safety policies and procedures with
leadership commitment and a genuine
care and desire for every individual to be
incidentand injuryfree. Jacobs plans
safety into the design, implementation,
and operation of each project. In 2010,
the Occupational Safety and Health
Administration (OSHA) recognized Jacobs
for excellence in worker safety and health
by approving the company as a Voluntary
Protection Programs (VPP) Corporate
participant. Only seven other corporations
currently hold this recognition in the U.S.
Jacobs also brings disciplined and valueadded execution through its:
Integrated EPCM approach;
JSTEPS structured work process;
Value Enhancing Practices that
strategically implements Value Improving
Practices (VIPs) to ensure best practices

and innovation that can provide significant

cost savings in design and planning;
A
 bility to leverage high value
engineering centers and global
procurement capabilities.

A Sustainable Approach
With the drive and expertise to
progressively and cost-effectively reduce
the environmental impact and resource
intensity of projects worldwide, Jacobs
commitment to running an ethical,
relationship-based, and cost-conscious
business enables the company to help its
clients find the best sustainable solutions
for their projects around the world.
Jacobs delivers tangible, technical
solutions that support customers
improved profitability. With comprehensive
knowledge and experience across a
diverse range of resources and processes,
conventional and unconventional
including shale oil and gas production,
heavy oil, enhanced oil recovery, and
onshore or offshore production Jacobs
offers a complete service to support
customers continued growth and
competitive edge.

Jacobs Engineering Group Inc.

1111 South Arroyo Parkway
Pasadena, CA 91109
Phone: 626.578.3500
Website: www.jacobs.com

58 BHP Billiton

Company Profile
nabors

Innovative Technology Designed

Specifically for Shale Projects
Nabors Drilling Designs
PACE-X Series Rig
from Crown to Ground
to Optimize Well
Manufacturing from
Multi-Well Pads; Six
are scheduled for the
Haynesville and Eagle Ford
Nabors Drilling USA, LP started working
for Petrohawk in the Haynesville Shale in
2007. At that time, initial wells averaged
80 days per well. Today, the company
continues to meet the demands of that
partnership with BHP Billiton Petroleum,
using programmable A/C electric (PACE)
rigs with automated technology. Nabors
PACE -M Series rigs helped reduce drill
times in the Haynesville to an average of
32 days. In fact, Rig M46 drilled a fieldrecord well in 20.8 days.
Customers like BHP Billiton Petroleum
are looking for the latest technology
with compact but powerful equipment.
They want faster moving features,
enhanced safety elements, better power
distribution, greater torque control and
higher penetration rates. When these
objectives are accomplished, they allow
operators to drill more efficiently and
move more rapidly. Nabors has used
these advancements while drilling for BHP
Billiton Petroleum to pave the way for the
next generation of PACE technology.
Nabors has designed a new rig that
meets the demands of shale plays, such
as the Eagle Ford and Haynesville, said
Randy Clark, vice president, marketing
Southern Division. We interviewed
customers to create a rig configuration
that would meet their current and future
needs. The PACE -X Series rig was
designed from the crown to the ground
to optimize well manufacturing on multi-

well pads. Experience and technology from

Nabors rigs operating all over the world
were incorporated into the design.
The PACE -X rig can skid on both the
X and Y axis, with a 16-ft-wide by 27-ft
tall clearance below the substructure
to optimize batch drilling, or dodge an
existing well head. A 20% improvement
in skidding efficiency equates to saving
about 1.5 days on an eight-well, batch
drilling pad. Another primary target of the
design was to reduce flat time with the
rigs ability to stump-test offline in order
to handle the BOPs more quickly.
The PACE-X rig can provide more capable
horsepower at the bit than any other rig of
its size, said Clark. It will accommodate up
to four 3,516 diesel or natural gas engines,
up to three 2,200-hp, 7,500-psi mud pumps,
a 2,200-hp AC Canrig COMMANDER
Drawworks and a 500-ton Canrig AC top
drive. Unparalleled horsepower, pressure
and torque is delivered to the bit. More than
20,000 feet of five-inch drill pipe can be set
back, optimizing the long laterals that have
become the new standard.

One of the many benefits of the PACE -X

rig is its visually simple concept, said
Clark. The straightforward design
decreases hesitation by trucking companies
and rig crews during rig-up and -down.
Plugs and cables have been reduced due to
the split VFD design and distributed power
systems. This makes the rig easier to handle and maintain.
Currently, six PACE-X rigs are scheduled for
deployment in the Haynesville and Eagle Ford
Shales. Nabors is on target to deliver the first
PACE-X rig in late 2012.

Advanced Automation
Canrig Drilling Technology Ltd., a Nabors
company, continues to provide directional
drilling solutions with ROCKIT, a surface
rotary steerable system. It has quickly
demonstrated its ability to save rig time
through faster toolface setting and
improved toolface control, which increases
the penetration rate while sliding.
The ROCKIT platform also includes
our ROCKIT HEADS UP DISPLAY and
ROCKIT PILOT automation products,
said Rob Guillory, vice president of Sales

BHP Billiton 59

and BHP Billiton Petroleum account

manager. The ROCKIT HEADS UP
DISPLAY integrates the surface-based
instrumentation and MWD downhole
data so that the driller has immediate
access to all the information required to
steer the directional well. The ROCKIT
PILOT control system allows the top
drive PLC to automate toolface steering,
providing predictable bearing offset
corrections which are repeatable and
based on directional drilling logic. Both are
valuable enhancements to the ROCKIT
technology.

Guillory also notes that one of the biggest

problems facing the drilling industry today
is non-productive time due to downhole
vibration. Vibration can destroy drill bits,
damage expensive downhole tools and
lead to tool failures and poor drilling
performance.

Canrigs REVIT system employs Soft

Torque technology to mitigate torsional
vibration in real time and allow drillers to
achieve a level of performance that was
unthinkable just a few years ago, Guillory
noted. The system integrates seamlessly
with the Canrig AC top drive controls to
alert the driller to excessive downhole
vibration and provides sophisticated tools
to eliminate stick slip, he added. REVIT
users experience increased ROP, extended
bit life, and fewer downhole tool failures, all
of which equates to significant cost savings
associated with reduced down time.
Our customers also have access to Canrigs
world-class RigLine 24/7 support service
staffed by certified REVIT technicians
who are specially trained to monitor and
analyze the products performance as
well as the performance of associated rig
systems and to take immediate action if
that performance is less than optimal, said
Guillory. REVIT is a high-technology
product that reacts automatically and
instantaneously to mitigate stick-slip. It
reflects Canrigs dedication to developing
new technology that automates the drilling
process and meets both customer and
market demands.
There are currently more than 70 REVIT
systems operational. It is expected that
Canrig will have about 100 systems in
operation by the end of 2012.

Coiled Tubing Services

Nabors continues to build a fleet of mobile
coiled tubing units that are used primarily
in well intervention to support hydraulic
fracturing on operating wells as well as in
well-servicing operations.
We have 12 coiled tubing units that are
tailored specifically for the shale markets,
said Perry Courville, director of coiled
tubing services. We customized the string
design through a variance of the wall
thickness to optimize the horizontal reach
capabilities in the shale play completions.
We have the ability to provide 23,000 ft
of 2-in OD coil. This is the optimal size
needed to intervene in these wells. The
coil units are matched with pumping
equipment tailored specifically or these
diameter and reel lengths. The trailermounted, twin pumping units provide 600
hydraulic hp each and work independently
for maximum efficiency.
Courville says the design was a direct
result of Nabors willingness to meet the
growing demands of the shale market.
The increased activity in shale plays
has shaped the coil market uniquely, he
said. As few as four years ago, the coiled
tubing units were a different size and
configuration. Since we didnt want our
customers to have to incur extra costs to
get down to TD, Nabors optimized the coil
units configuration and the string design for
a greater reach. We took into consideration
rig-up times and the ergonomics of working
with large-diameter pipe. As a result, our
customers end up with better equipment
that runs more efficiently and less
expensively in any shale market.

Nabors
515 W. Greens Road
Houston, TX 77067
Tel: 281-874-0035
Email: Randall.Clark@nabors.com
Website: www.nabors.com

60 BHP Billiton

Company Profile
Jet maintenance

Jet Maintenance provides complete service

solutions for all oilfield construction needs
Jet Maintenance, an oilfield construction
company based in Victoria, Texas, has
been providing premium turnkey services
to the oil and gas industry since 1992, and
has established itself as a leader in oilfield
construction in south Texas.
Jet provides all construction services
necessary for pre-drilling and post-drilling
operations. With over 40 pieces of heavy
machinery ranging from backhoes, rollers
to dozers, trackhoes, and scrapers, Jet is
able to offer a broad range of commercial
construction services. We specialize in the
construction of pad locations, lease roads,
frac ponds, fencing, and other pre-drilling
construction services. When drilling and
completion operations are complete, Jet has
roustabout crews that clean and hook up the
well site. Jet also has the ability to perform
pipeline work, such as digging trenches,
welding pipe, and installing pipelines.
The company has an extensive welding
crew composed of its own employees that
performs various fabrication work for all
oilfield needs. Jets welders can perform
field work, such as well hookups, pipelines,
and on site fabrication. The company also
has a fabrication shop, located in Victoria,
Texas, in which it can build chemical loops,
knockouts, fuel bottles, cellar covers,
crossovers, and much more.

With over 40 pieces of heavy machinery, Jet

is able to offer a broad range of commercial
construction services.

Jet Maintenance constructs all aspects of the drilling site roads, drilling pads, cellars,
frac ponds everything necessary for a safe and successful well.

Jet also has the ability to haul and deliver

its own aggregate material through
AW Trucking, also located in Victoria, Texas.

Providing premium services

in Eagle Ford since 2004
Beginning with Petrohawk, one of the
original operators in the Eagle Ford Shale,
Jet Maintenance has been providing its
premium services to operators in south
Texas since 2004. When BHP Billiton
Petroleum acquired Petrohawk in 2011, the
company continued to provide its premium
services for BHPs exploration programs,
building more than 70 drilling locations in
south Texas since the acquisition.
Jet delivers superior value
with outstanding quality
Jet Maintenances success is the result of
its superior service and extra attention
to detail throughout its operations. The
company has a loyal, dedicated, and
diverse staff that increases its ability to
successfully differentiate its products and
services from the competition. Jet is very
customer-focused, committed to providing
solutions to all of its customers needs,

and doing everything possible to keep

material procurement on time, their project
deadlines on schedule, and their project
budgets under control.
Driven by excellence in execution, Jet is
committed to ensuring the safety of its
employees. Jet maintains an excellent
safety record, demanding the highest safety
standards from and for its employees.
Jet Maintenance has been a member of
ISNetworld since 2003.

JET MAINTENANCE
P.O. Box 5026
Victoria, TX 77903
Phone: (361) 576-3226
Fax: (361) 578-0054
Website: www.jetmaintenanceinc.com

Company Profile
schlumberger

Technology and Collaboration for

North American Shale Development
A game-changing technology has been
deployed in the Eagle Ford over the last
24 months, which has allowed BHP Billiton
Petroleum to produce its Blackhawk and
Hawkville wells at improved production
rates while reducing the water and proppant
usage in these fields. To date, 3,200
fracturing treatments have been performed
in more than 200 Blackhawk and Hawkville
wells. The technology has allowed savings
in excess of four million barrels of water
and 200,000 tons of proppant with respect
to conventional fracturing techniques. This
has prevented more than 30,000 proppant
and water hauling trips and eliminated more
than five million pounds of CO2 emissions.

HiWAY flow-channel hydraulic

fracturing service
The technology that has made this possible
is called HiWAY* flow-channel hydraulic
fracturing service, a patented process that
creates highly conductive paths or channels
within the hydraulic fractures. Like most
successful technologies, the basic concept
behind the technology is simple: instead of
filling or packing the fracture with proppant
as is done with conventional treatments,
proppant is placed in engineered clusters
to promote the formation of voids, gaps,
or channels through which oil and gas can
flow expeditiously.
The HiWAY channel fracturing service
combines geomechanical modeling,
intermittent proppant pumping and
degradable fibers and fluids to attain the
heterogeneous placement of proppant within
the hydraulic fracture. BHP Billiton Petroleum
pioneered the use of this technology in
horizontal wellbores worldwide and has
become an industry-recognized leader in the
implementation of this breakthrough service.

CollaborationWorkflows
and Mangrove
As an early adopter of technology and
committed to the value of producing
more with less, BHP Billiton Petroleum
continues to expand the use of the HiWAY
service in the Eagle Ford, and has recently
*Mark of Schlumberger

the performance of these assets in a safe

and effective manner. By integrating the rock
properties into the completions design, BHP
Billiton Petroleum will be able to optimize
the staging and HiWAY frac design, allowing
the reduced consumption of resources and
lowering the overall costs per barrel to deliver
these hydrocarbons to market.

The HiWay service uses specialized blending

equipment and control systems to pump
proppant in pulsescreating stable,
infinite-conductivity flow channels in
fractures.

taken the technology to the Delaware

Basin.The companys asset team is working
jointly with a Schlumberger petrotechnical
team of experts to complete basin-scale
resource assessments of the Delaware
and Midland basins. An integrated
3D geological, geomechanical, and
petrophysical model of the Delaware Basin
was created in the Petrel* E&P software
platform to characterize production-driver
heterogeneity, rank the acreage, and assist
in developing the drilling program.
Reservoir simulation is being applied to
calibrate production forecasts, which will
be made across the basin. Tried and tested
workflows are being used to deliver an
integrated heterogeneous earth model that
integrates reservoir and completion quality
within a single platform. A new Petrel
plug-in called Mangrove*reservoir-centric
stimulation design software will be used
to link the G&G model to the operational
decisions concerning the drilling and
completions program.
Through collaboration and utilization
of innovative technologies, tools, and
workflows, the team is working to improve

Spear shale-optimized steel-body bit

Smith Bits, a Schlumberger company, and BHP
Billiton Petroleum drilling engineers continue
to work closely on optimizing and utilizing
Spear* shale-optimized steel-body PDC bits.
Spear PDC bits are the industry-leading steelbody PDC bits developed with Schlumberger
proprietary Shale Smart technologies and
engineered to increase drilling performance in
the curve and horizontal shale sections while
not sacrificing directional control.
Using the award-winning, in-house, IDEAS*
integrated drillbit design platform, the PDC
cutting structure and steel-bit-body geometry
are designed to meet and exceed the goals
of BHP Billiton Petroleum for each drilling
application. In the first half of 2012, BHP
Billiton Petroleums use of Spear bits and all
of the technologies therein has increased the
average footage drilled per bit by 33% in the
Eagle Ford curve and lateral sections compared
to non-Spear PDC bits in the same intervals.
Through collaboration and application of new
and innovative technologies, Schlumberger and
BHP Billiton Petroleum are working together
to unlock these resources. This approach has
resulted in improved economic performance
through greater efficiency, production
optimization, and informed decisions.

Schlumberger
1325 South Dairy Ashford,
Houston, TX 77077
www.slb.com

BHP Billiton Petroleum

1360 Post Oak Boulevard
Houston, Texas 77056
(713) 961-8500