I'm picking up rising interest around performance-based commercial models. BHGE presented their approach to what they call 'Pay for Performance' agreement. The project example they presented was Equinor’s Johan Sverdrup development in the North Sea. The concept involves early engagement and buy-in among the key stakeholders (operator-OEM- rig contractor) regarding performance metrics. Requires that all parties be completely transparent... hence a lot of trust.

Leslie Cook comments on #OTC50 trends

How do you build out a robust local supply chain in a new deepwater region, such as Guyana, without imposing high local content rules? There’s a lot to learn from the Brazil case study. Enhancing local capabilities is a first step. For example, Guyana is retraining old sugar field workers to be deck hands, developing supply bases onshore. Longer term though you need to develop skilled labor - scholarships for STEM. Everyone loses if Guyana moves towards higher LC for political purposes.

Maria Cortez comments on #OTC50 trends

Transocean CEO Jeremy Thigpen spoke about innovation in the deepwater rig market. Over the past few years, drillers have made substantial strides in reducing drilling costs through efficiency and performance. Breakevens on projects have gone from $64/bbl down to $34/bbl and FIDs have increased by more than 60%. Transocean will continue to optimize their processes and introduce new technologies. Some of the most exciting work being done through their R&D program includes: enhanced well control tool, advanced shearing tool aShear, automated drilling equipment for harsh environments, and human machine engineering called HaloGuard. Hybrid micro- grid power system that stores unused energy, remote monitoring prognostics, the first ever 8th generation 20k drillship for U.S. Gulf of Mexico.

Leslie Cook comments on #OTC50 trends

Shell is using AI-assisted seismic interpretation in Malaysia to pick faults and identify top and bottom of salt. Interpretation time has been reduced by 80%. The advantages of automated seismic interpretation are two-fold: it shortens the cycle time to production, thereby adding value, AND it improves the quality of the interpreter’s work because he or she has time to think about the important elements of the interpretation. Automation allows for multiple scenarios and multiple iterations.

Julie Wilson comments on #OTC50 trends

Shell does not see deepwater going anywhere anytime soon. They’re committed to opportunities in the US GoM, Mexico and Brazil with growth driven by positive change happening, particularly in Latin America. They expect to kick off their pre-salt drilling in Q3 with up to five wells over the next two years. Mexico drilling is expected to start in December with two wells in Campeche deepwater. Shell will take on up to three additional wells after that around Perdido, but seismic is still ongoing and well permit cycle time is very long. Improvements to seismic acquisition, processing and interpretation, and mindful industry collaboration are among key drivers to opening up opportunities to reduce deepwater cycle time.

Caitlin Shaw comments on #OTC50 trends

BP emphasized its “capital-light” collaborative approach to midstream in Mexico. Fieldwood lauded the open negotiations they had with Pemex for the use of offshore facilities for Phase 1 of the Ichalkil-Pokoch development. And Murphy shared their plans to appraise the Cholula deepwater discovery and drill two more exploration wells in 2020. They have a lot of prospects in different play types to go after in their block, including subsalt.

Halliburton Chief Technology Officer Greg Powers changed roles after 8 years in January to Vice President of Global Innovation, a new position for Halliburton. When he was the CTO, the products they developed simply “had to work.” The risk tolerance was very low. Now he and his team have to get their heads around a new model that does tolerate some risks. They have to embrace the “fail fast” mentality. Fail, don’t punish those involved, learn from it and try again. This is a new approach for Halliburton and the wider industry as a whole. I expect this will harvest some very fresh innovation.

William Turner comments on #OTC50 trends

Managed Pressure Drilling (MPD) is hot. More operators are seeing the advantage of drilling with MPD. Weatherford just launched their new intelligent MPD called Victus. A highly revolutionized tool that will transform drilling performance, decrease NPT, and enhance safety in drilling operations. Based on Wood Mackenzie research, MPD for offshore operations is expected to double in the next decade.

Leslie Cook comments on #OTC50 trends