Drilling the LimitIncreasing Efficiency in Geothermal Drilling

Katherine YoungGeothermal Program Manager14 November 2018

Carsten SørlieProject Leader Geothermal Technology

NREL | 2

Current Drilling Rates

(Fro

ne

& B

oyd,

2018)

NREL | 3

Continuous Improvement

Source: de Wardt and Co 2018

TECHNOLOGY IMPROVEMENT

• 6” PDCs instead of Impregs, 8.5” PDCs

• Rotary steerable instead of bent-motor BHAs

• EM-MWD

PROCESS IMPROVEMENT

• DWOPs, DTL, performance analysis/feedback, incentive pay

• UBD with OBM, Eliminated liners at 12, 500’

• Dual mud systems for WBM & OBM

• Mitigating drilling dysfunction

NREL | 4

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

3Define & Describe

Design Improvements

4Implement & Improve

Create Implementation

Plan

5Monitor &

Modify

Monitor improvements

for sustainability

Reported time savings of 20-50% - or more – translating to cost savings of 20-30%

NREL | 5

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

3Define & Describe

Design Improvements

4Implement & Improve

Create Implementation

Plan

5Monitor &

Modify

Monitor improvements

for sustainability

NREL | 6

Review Available Data

CORE

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

CMTPL

STUK

MOVE

FISH

FISH

FISH

Daily NPT Breakdown

RIGU REAM CORE CIRC TRPI, TRPO WASH, SERV REPR CUT SURV WIRE WELD WIPE BOPO, BOPNU BOPT BHAOP CMTPL STUK CMTD MOVE OTHER WAIT (WOO, WOC) CASE FISH

RIGU0%

DRIL30%

REAM1%CORE

0%CIRC3%

TRPI, TRPO23%

WASH, SERV1%

REPR0%

CUT1%

SURV1%

WIRE0%

WELD1%

WIPE6%

BOPO, BOPNU

4%

BOPT0%

BHAOP2%

CMTPL2%

STUK0%

CMTD1%

MOVE0%

OTHER5%

WAIT (WOO, WOC)16%

CASE2%

FISH1%

Drilling Log Time Distribution

0

200

400

600

800

1000

1200

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Depth Drilled (Ft)

Tim

e o

n B

it (

Hrs

)

Ave

rage

RO

P (

Ft/h

r)

Drill Bit Performance

Average ROP While On

Time on BHA

Depth Drilled

For example …

NREL | 7

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

3Define & Describe

Design Improvements

4Implement & Improve

Create Implementation

Plan

5Monitor &

Modify

Monitor improvements

for sustainability

NREL | 8

Waste in Drilling

WasteLess than perfect

due to normal operations

ROOT CAUSES

IgnoranceNot knowing something

Wrong Design

OperationsLess than

perfect actionsRight Design

Wrong Action

LossLess than perfect

due to failure

TYPES OFWASTE

Operations-based Wastenew/inexperienced crew ‘always

done it that way’tripping slower than you could

Operations-based LossStuck because driller took wrong action, running the cone off a bit

Ignorance-based LossStuck because casing set in wrong place, Kicks, Geologic Side Tracks,

Wrong mud type for formation

Ignorance-based Wastecirculating bottoms up to check gas, conservative casing setting

depth,

cTechnology-based Waste

Multiple bits per hole section, Circulating bottoms up,

Technology-based LossStuck because no high-T

downhole tools

TechnologyTechnology limitations

Ad

ap

ted

fro

m: B

rett

(P

etro

Skill

s) 2

01

8

NREL | 9

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

4Implement & Improve

Create Implementation

Plan

5Monitor &

Modify

Monitor improvements

for sustainability

3Define & Describe

Design Improvements

NREL | 10

The Perfect Well & Technical Limit

The Perfect Well time is the minimum time in which a well could possibly be drilled.• Calculated from physical factors that constrain the drilling

time (e.g. rock strength, equipment limits).

• Used to normalize differences between wells and create a purely objective indicator of well construction effectiveness. c

The Technical Limit is the best possible well construction performance for a given set of design parameters.• Estimated by a drilling team and therefore may not

necessarily be an objective standard measurement.

• Estimate is that it takes about 15 minutes per well to calculate and define a non-ambiguous technical limit.

Ignorance Waste

Operations Waste

Technology Waste

OperationsLoss

Ignorance Loss

TechnologyLoss

Physical Limit

Drilling Efficiency Non-Productive Time

Perfect Well

Technical Limit

RemoteWildcat

Well

Adapted from: Brett (PetroSkills) 2018

NREL | 11

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

5Monitor &

Modify

Monitor improvements

for sustainability

3Define & Describe

Design Improvements

4Implement & Improve

Create Implementation

Plan

NREL | 12

Drilling the Limit*

Drilling The Limit* (DTL) represents an alternative planning methodology through which incredible gains can be made. Used to improve performance by working down from a point of perfection based on the current levels of technology, rather than from incremental improvements in today’s performance.

What is the current performance? “Normal” averageWhat is possible? Theoretical limitWhat is needed to get there? Resource investment

Applying the DTL methodology results in a significant step change

in performance.

*Drilling the Limit is a registered trademark of Shell

Ignorance Waste

Operations Waste

Technology Waste

OperationsLoss

Ignorance Loss

TechnologyLoss

Physical Limit

Drilling Efficiency Non-Productive Time

Perfect Well

Technical Limit

NREL | 13

DTL requires a significant change in mindset and attitude, with full support from all levels within the company.

Reports indicate the engineers and rig personnel had fun. They enjoyed:

• the thrill of success,

• the peer competition (between rigs),

• the sense of achievement and professional pride.

Implementing DTL

NREL | 14

Drilling as Manufacturing

Lean Manufacturing is a systematic method for waste minimization within a manufacturing system without sacrificing productivity.

1Map &

Measure

Document process “as is”

2Explore & Evaluate

Identify Waste

3Define & Describe

Design Improvements

4Implement & Improve

Create Implementation

Plan

5Monitor &

Modify

Monitor improvements

for sustainability

NREL | 15

PDCAPDCA is a Lean problem solving method for continuous process improvement

NREL | 16

Hard-rock geothermal (with fewer wells per

site) will be slower than soft rock oil and

gas drilling, so the number of hours of

drilling for both industries starts to look comparable in

the millions-of-hours-per-year range

hrs

Significant Drilling Hours per Year

Increased Drilling Market

That’s an extra 1,000 wells per year in the

U.S. every year for the next 30 years. That’s a

huge increase over the current rate of

<10 or so/year. But still is quite shy of the

15-20k U.S. oil and gas wells drilled each

year.

Increased Market CompetitivenessSince drilling makes up ~50% of project costs, faster drilling

can significantly increase market competitiveness.

Recent market deployment modeling

suggests this could amount to an added

50 GW by 2050.

Cost Savings

Time savings equate to cost savings – both

in drilling costs, as well as increase NPV.

Additionally, costs savings reduce risk, which could equate to better loan rates.

Market Impact

Faster drilling

Efficiency in drilling has been shown to

decrease drilling time by 20-50% -

and sometimes up to 60%

THE “PERFECT GEOTHERMAL WELL”

DRILLING THE LIMITS – EQUINOR PERSPECTIVES

Open

Drilling the Limits

“The Perfect Well” concept in Equinor• PRINCIPLE:

• Shorten

• Execute in parallel

• Delete

• ACHIEVEMENTS:

• US onshore drilling time: from >50 days to <10 days!

• NCS well cost: 2-for-1!

• SUCCESS FACTORS

• Focus on continuous improvement in the drilling operation

• Setting stretch goals, i.e. budget vs. “the perfect well”

• Incentives for competitive mindset and collaboration

• Digitalization

• HSE is non-negotiable!

18 |

cycle time reduction

Open

Drilling the Limits

«Perfect Geothermal Well» workshop

• Equinor expert facilitated IDDP-2 pre-drill workshop

• More than 100 improvement opportunities were identified

• Potential for reducing drilling time to 1/3 of current average?

• NEXT STEPS:

• Capture O&G practices

• Define the «perfect geothermal well»

• Test potential in geothermal drilling

• Joint industry initiative?19 |

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiencyand Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Thank youwww.nrel.gov

Kate.Young@nrel.gov

720-272-8800

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiencyand Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

NREL advances the science and engineering of energy efficiency, sustainable transportation, and renewable power technologies and provides the knowledge to integrate and optimize energy systems.