Our page regarding rotary rigs depicts where increasingly in demand and absolutely essential high quality OCTG products are being used. Rotary rigs have been an essential part of oil drilling equipment for the exploration, development and production (of both oil and natural gas) since the mid-1900s; however, the first oil drilling equipment to be developed as a rotary rig was in France during the mid-1800s.
Hydraulic fracturing contributes immensely to the current increase in drilling and production, specifically with respect to shale gas production. Hydraulic fracturing documentation began in the mid 1900’s. In 1947, the procedure was experimental. The first successfully known commercial applications came in 1949.
2010 brought estimations that 60% of all new wells (oil and gas) worldwide were being developed with hydraulic fracturing procedures. Hydraulic fracturing efforts implemented totaled 2.5 million as of 2012. This data includes both oil and gas wells globally with over one million of these having occurred in the United States.
The EIA, in its Annual Energy Outlook 2012 with Projections to 2035, states that oil will maintain its position globally as the dominant fuel through 2035. This is the projection even if the most extreme serious current efforts regarding fuel efficiency and alternatives are taken into consideration in the calculations. Worldwide oil demand is calculated to increase 18 percent by 2035, to approach 99 million barrels per day.
The thirst for oil is growing, but so is the demand for natural gas. More and more fracking drill rigs are being converted from running on diesel to being run on natural gas. In 2012, one company received orders to convert 60 drilling rigs from running on diesel to run on natural gas. That was an incredible increase of 1000% when compared to the 6 orders received in 2011.
Several major oilfield equipment related companies, including Schlumberger, have worked converting rigs to run on natural gas; and, this has led them to save an estimated 40% on fuel costs. Most rigs in the United States still run on diesel. However, the numbers of conversions to natural gas is growing. This is mostly due to the reduced cost of natural gas as well as fewer emissions being released.
Supplies of natural gas are now globally possible to recover from shale in an economical manner as a result of the success and increase of fracking. The United States has the ability to accommodate its domestic demand for natural gas at current levels of consumption for more than a hundred years.
The increase in the average depth of oil and gas wells as well as the average feet drilled per year combined with rapid growth in fracking procedures worldwide all highly contribute to increased oil exploration, development and production levels. As this occurs, the need increases for high quality OCTG pipe protection products such as oilfield thread protectors from global leader Essentra.