Examining Variables Affecting Future of Drilling Industry

Abdol Mohammad Delparish: Chief Operating Officer

Oil and energy field have made a significant contribution to the economy since long time ago; therefore, innovation and productivity in the industry have a significant effect on the economy and improving efficiency is not only a priority for firms in that industry, but also a national priority and in line with the country’s economic empowerment. Providing management consulting services in this industry requires a detailed understanding of its stakeholders, transformations in the business model in upstream, middle stream, and downstream sectors with regard to events such as the extraction of shale oil resources, changes in world refining capacity, research and development in the field of clean fossil fuels, behavioral patterns of international oil and gas companies, targeted energy subsidies, and supply and demand trends of products. Accordingly, the variables dominating the drilling market will be influenced by the condition of tanks as well as international approaches in the future, which will be examined below.


With regard to the prospects in the long-term plans of National Iranian Oil Company, we will face deeper and lower quality reservoirs in the future, which need more advanced technologies. Today, with a widespread increase in demand for hydrocarbon materials worldwide, onshore oil production has spread to shallow waters and in recent years to deep waters. Access to reservoirs of oil in the deep waters is highly complex. Therefore, high costs are needed in order to achieve this type of reservoirs. Therefore, application of new technologies for drilling oil and gas wells in deep waters can be seen as a competitive advantage for firms.


The next important issue is paying attention to the environment. Every year, a large number of wells are drilled for production and economic prosperity. In the meantime, polluting the environment as a result of these drillings, especially the pollution in land and at sea, is considered as an important issue and annually, individuals and many organizations are trying to reduce and control the pollution. Drilling mud, drilled pieces, and wastewater are the main pollutants and if not managed properly, they can have detrimental effects in the long run. Drilling activities can also increase the amount of greenhouse gases and the dust in the air result in pollution and poisoning of the surrounding air, which lead to severe respiratory diseases in later generations. Generally, the effects of drilling and excavation activities will appear as both global and regional global warming including changes in the ecology of an area. Therefore, preservation of the environment is now a top priority in the field of drilling activity.


The next important issue is optimization of energy consumption in drilling devices, attention to which leads to prevention of air pollution, which is of great significance. Due to the limited energy resources, the need for saving in energy consumption per unit of production is obvious. In drilling oil wells, drilling fluid circulation and transferring logs to the wells require considerable amount of energy. In fact, reciprocating pumps of drilling fluid circulation systems are the main energy consumers in the rig. Improving energy efficiency of the pumps requires minimizing pressure drop in the mud rotation system using optimization energy saving methods. This operation leads to the reduction of environmental waste caused by the diesel engines to generate electricity needed by these pumps. In addition, the residual amount that will be transferred to nature is reduced. Competitiveness of drilling market and cross-border activities In order to make the market of rig and drilling service companies in addition to identifying competitors and potential drilling market, drilling costs must be reduced as far as possible and they should try to obtain the necessary standards for their presence in the regional market. The next issue is resolving the challenges and differences with clients and trying to mitigate the current relations between the two sides. In addition to striving to maintain the current share of the domestic market and meeting the needs of the oil industry, companies should use part of their ability to earn a share of the regional market. Regarding drilling activities across borders, they must first evaluate drilling market; identify competitors, etc. in neighboring countries, and put activity in neighboring countries as the first step in their agenda. Hence, if the companies, as financial institutes, obtain the consent of micro and macro shareholders, it is essential that they focus their capacity to participate in international market outside the borders of Iran.

The prospect of new oil contracts

On average, about 40 to 50 percent of the development plan of an oil or gas field is related to drilling sector. On the other hand, taking advantage of modern technologies for principled and efficient drilling plays an important role in the realization of developmental objectives. Although we encounter problems in this sector due to sanctions, this deficit will be surmountable given the atmosphere created after The Joint Comprehensive Plan of Action. New oil contracts are already on the verge implementation and certainly, foreign or domestic companies in these contracts will use the capacity of domestic drilling companies. Domestic companies should seek to develop skilled work force and employ new technologies to have a larger share in the contract. In this regard, the relationship with foreign countries in order for technological exchange and up-todate technical knowledge is a necessity.

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