Implementation Of Rig-Less Technology To Reduce Turnaround Time For Decommissioning Of Wells

Companies providing support activities for oil and gas operations are using rig-less technology to reduce turnaround time for decommissioning of wells. Rig-less P&A refers to decommissioning of oil wells wherein companies need not replace tubes and drill pipes while placing primary or secondary barriers, thus offering significant cost savings over rig-based operations Also, the equipment used for rig-less P&A can also be operated at a water depth of 1600 feet. For instance, Claxton Engineering Services has carried out plugging and abandoning of more than hundred wells in North Sea using rig less P&A technology.


The Business Research Company expects the global oil and gas supporting activities market to grow from $179 billion in 2016 to $228 billion in 2020 at a compound annual growth rate (CAGR) of 6.2%. North America was the largest region in the oil and gas supporting activities market in 2016, accounting for $51 billion or 28.5% of the market. This can be attributed to presence of crude oil extraction and rise of shale producers, thereby driving demand for outsourced supporting companies.

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The chart below shows the year-on-year growth of the global oil and gas supporting activities market during 2016 – 2020.


According to The Business Research Company’s Manufacturing Consultant, Abdul Wasay, oil and gas wells service providers are using microbial treatment as a sustainable and cost effective replacement to conventional treatment methods such as chemical, mechanical and thermal methods to discard paraffin deposits. Microbial treatment refer to the use of naturally occurring microorganisms to remove paraffin deposits, break emulsions, and inhibit corrosion and scale formation. Paraffin is a waxy substance which deposits in oil and gas production systems and restricts the flow of fluids, and thus needs to be prevented. This treatment procedure is non-toxic, cost effective and saves time compared to conventional methods. Microbial treatment can result in high paraffin degradation rate of up to 64%.  For example, microbial treatment carried out at Barfield, Midland oil wells increased oil production volume by two barrels per day.

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Halliburton Company was the largest competitor in the support activities for oil and gas market with revenues of $8.9 billion in the financial year 2016. Halliburton reduced its work force to overcome the deal with rapid decline in oil prices. Since September 2015, the company has laid off almost 29 thousand employees globally. It has also increased its service charges to compensate its losses.

Support activities for oil and gas operations industry comprise establishments which provide support activities on a contract or fee basis for oil and gas operations such as exploration, drilling and extraction.

This market comprises companies carrying out activities such as excavating slush pits and cellars, well surveying, running, cutting, pulling casings, tubes, and rods. It also includes cementing wells, shooting wells, perforating well casings, and cleaning out, bailing, and swabbing wells. This market does not include site preparation and related construction activities, geophysical surveying and mapping.

Other support activities include acidizing oil and gas field wells, chemically treating oil and gas wells, gas well rig building, core drilling, logging wells, and servicing wells on a contract basis.

Oil And Gas Supporting Activities Market Global Briefing 2017 is a detailed report giving a unique insight into this market. The report is priced at $1000 for an individual user. To use across your office the price is $1500 and $2000 if you wish to use across a multinational company.

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