Lecture 5.1

1
CRICOS Provider No. 00126G copyright © The University of Western Australia
BL Oil & Gas History, Economics and Geopolitics OENA8433

Lecture 5.1: Historical Overview of the Technology of the Oil & Gas Industry
Dr. Karin Oerlemans
1
Unit Overview
Topic 1: Introduction – The Founders
Topic 2: The Global Struggle
Topic 3: War and Strategy
Topic 4: Oil and Gas Economics
Topic 5: Oil and Gas Technology in context
Lecture 1: Technological History of the Oil & Gas Industry
Lecture 2: Brown & Root
Lecture 3: North Sea Oil – a study of technology in action
Lecture 4: The Middle East – a Geopolitical case study
Lecture 5: Western Australian Oil and Gas – WAPET
Topic 6: The Energy Industry Today
3
Lecture Outcomes
Upon successful completion of these two lectures you should be
able to:
Understand the significant development made in oil and gas
technology since the beginning of the modern oil industry
Begin to grasp the major changes in the industry
Gain an overall perspective of oil and gas technological change
4
2
Recommended Reading
Pratt, J., Priest, T. & Castandeda, C. (1997). Offshore pioneers,
Brown & Root and the history of offshore oil and gas. Houston:
Gulf Publishing Company.
Milestones and influences in US offshore history (1947-1997),

available from www.kingdomdrilling.co.uk (some
inaccuracies).
http://www.oceanstaroec.com/fame/index.htm
http://www.spe.org/spe-
app/spe/jpt/1999/08/frontiers_subsea_completions.htm
5
800 BC
Chinese are the first to drill for and use natural gas
6
3
600 BC
Chinese use bamboo/stone-drilling system for holes up to 14 inches

diameter and depths to 2,000 feet
7
200 BC
Chinese first to drill for oil,
using brine drilling methods
8
4
1126
Carthusian monks drill water wells down to 1,000 feet
9
1500
Leonardo de
Vinci sketches
machine for
boring wells
10
5
1806
Spring pole cable drilling developed in US
11
1806
Spring pole cable drilling developed in US
12
6
1807
Cored trees used for casing in recovery of salt brine
13
1844
Fluid circulating rotary well drilling patented
England – Robert Beart
Drilling ‘Corsicana’ 1894
14
7
1845
Circulated fluid used

to remove drill
cuttings for first time
15
1859
Drake well completed for sole
purpose of producing oil
Source: D. Yergin (1991)
16
8
1860
Fluid circulation rotary diamond

coring drill developed
Rodolphe Leschot
France
17
1863
Screwed casing joints First ‘seperator’
developed
18
9
1866
First wooden pipelines developed
19
1870
Bolted derrick patented First cable tool rig developed
20
10
1870
Cable tool rig:
A platform on which there are

several cable tool bits
http://www.lloydminsterheavyoil.com/cablebit.htm
21
1873
Acid bottle inclinometer and
compass used for surveying
wells
22
11
1878
First bulk tanker begins operation
Caspian Sea
Nobel
23
1880
Standardization of casing begins
24
12
1882
Straddle rubber wall packer developed
25
1890
First extensive
casing program
26
13
1890
Rotary drilling tool developed
27
1891
First ocean going tanker launched
28
14
1895
Drill string run in tension with Earliest use of rotary drilling
heavy collars rather than
compression
29
1897
First hole drilled from wharf
Summerland, California
30
15
1902
Shoes developed for casing
installation
31
1904
Steel cables replaces rope for cable tool drilling
32
16
1905
Casing cemented in for the first time
33
1909
Rolling cutter bit developed Thermal cracking double
Howard Hughes gasoline yield from bbl of oil
34
17
1910
Two-speed draw works Tube mills begin turning out
developed ‘drill pipe’
35
1910
Drill pipe tool joints introduced
Roughnecks, Rock Bits And Rigs: The Evolution of Oil Well Drilling
(2005) Sandy Glow
University of Calgary
Press
36
18
1911
Lead seal type blowout First Gas lift devices
preventer developed
Production
Gas
Gas Lift
valves
Packer
Standing
valve
37
1912
Torsion balance gravity
measurement developed
38
19
1912
Forged drill collars used to
attach drill bit
39
1913
Adaptation
of the
Walking
Beam
(steam
engine) to
Oil fields –
mechanical
lift system
40
20
1913
First dual completed
well
41
1914
Kelly and drive bushing introduced
42
21
1919
First diamond drill used
43
1920
Heavy portable drilling machine Weight materials added to
introduced drilling fluid
Emsco
Joy
44
22
1922
Multi-valve christmas tree Primitive hole survey
developed instruments developed
45
1922
Cylindrical-ram blowout
preventer developed
Cameron
Abercrombie
46
23
1922
Patent filed for cement jet mixer
(Halliburton)
47
1924
First in-line crown block
48
24
1925
Drilling control instrumentation

developed (Martin-Decker)
49
1926
First electric submersible pump Gyroscopic well survey device
used Sperry-Sun
50
25
1927
First electric log run in well
Schlumberger
51
1928
Electric logging wellbore begins Mud shaker screens borrowed
Schlumberger from mining industry
52
26
1928
Electric welding of pipeline joints
53
1929
Viscosity control agents introduced to mud systems
54
27
1929
Mud weight hydrometer
developed
55
1932
First gravel pack job
Layne
56
28
1933
First gun perforation job
Layne Wells
First planned directional wells with

whipstock device
Eastman
57
1934
First US field found with geophysical methods
Old Ocean, Texas
58
29
1934
Tool joints welded to drill pipe
59
1934
Sand content measurement
device developed
Baker
Source: www.roscoemoss.com/ rossum.htm l
60
30
1937
First gamma ray log
Humble Oil
61
1937
On-site mud logging begins
62
31
1937
First calliper log (Kinley)
63
1938
Portable drilling mast
developed
64
32
1941
First neutron
log
65
1945
Piston corer for ocean bottom
developed
Kullenberg
Power tongs and slips

introduced
66
33
1954
First directional control bottom-hole assembly
67
1958
First wireline retrievable First commercial helicopter
subsurface safety valve service (PHI US Gulf)
(Camco)
68
34
1959
High temperature cement
developed
Halliburton
69
1959
Sealed bearing drill bit Offshore rotating hoists lift 800
developed tons
Source: http://www.bakerhughes.com/hcc/ about/history.htm

70
35
1960
Cement bond log
developed
Schlumberger
Towed fish locates
underwater pipelines
Shell
71
1960 - OPEC founded
72
36
1961
First
computer
program for
fracture/
acidizing
Dowell
First moving
seismic
collection
method
Socony
Mobil
73
1962
First converted
semisubmersible
Blue Water No 1
B Collipp
Submersible for 175 ft depths

Rig 54
Kerr-McGee
Blue Water Rig No 1

Source: http://en.wikipedia.org/wiki/Image:Blue_Water_Rig_No._1.JPG
74
37
1962
Robotic forerunner of ROV
begins operation
Shell
Second generation drillship

Glomar II
75
1963
Custom-built drilling fluid
transport vessel developed
Baroid
First newbuilt semisubmersible

Ocean Driller
Laborde/Graham
Mr. Laborde
Source: http://www.rigmuseum.com/ajl.html
76
38
1964
Microwave data transmission
begins in US Gulf
Shell
Second generation
semisubmersible
Blue Water No 2
Twin derricks mounted on

platform
US Gulf
Humble
77
1965
First triangular semisubmersible
Sedco 135
Southeastern
Low temperature steels introduced
Common depth point seismic technique

employed
1 2 3 4 5 6 7 8 9 10 11 12
78
39
1965
First 500-ton derrick barge
introduced
Single buoy mooring system

tested
Qatar
Shell
79
1966
Source: http://www.elsevier.com/wps/find/bookdescription.cws_home/680370/description
Second generation pipelay

barge
North Sea
Brown & Root
Twin pipelines laid in 8-knot

cross current
McDermott
Cook Inlet
80
40
1967
One-mile offset wellbore achieved
Whitley Bay
Safari
Computerized well data monitoring developed
Humble
81
1967
Diverless subsea completion
Brown Oil Tools
Divers reach 600 ft depth
82
41
1967
Oil struck at Prudhoe Bay,
Alaska
First barge launch of platform

jacket
83
1967
Pipeline hot-tap developed
Ocean Systems
Union Carbide
Stinger and tensioner used S-Lay Barge

on pipelaying operation
84
42
1968
First oil transshipment takes place
Shell
US satellite transit navigation system set up
Bright Spot seismic technology developed
85
1969
Doppler sonar
improves
marine seismic
accuracy
86
43
1969
First center-ramp pipelay vessel
launched
LB 22
McDermott
First coiled tubing rig job
Bowen
Itco
First semisubmersible pipelay
vessel
Choctaw I
Sante Fe
87
1970
First deepwater re-entry

Glomar Challenger
13,000 ft
Habitat, alignment frame

developed for pipeline repair
Offshore survival capsules

deployed
88
44
1970
Tanker transits Northwest Passage in winter
SS Manhattan
89
1971
PDC bits tested
Christensen
Shell
90
45
1972
Landsat becomes available for remote sensing
91
1973
Gravity/magnetics data added
to seismic picture
92
46
1973
Portable satellite rig positioning
system developed
Small scale tension-leg platform

concept tested
California
93
1974
First one-atmosphere diving suit
used
North Sea
Oceaneering
Pipelay exceeds 1,000 ft water

depth
Castoro V
Saipem
3-D seismic data acquisition tested

Gulf
Drilling water depth hits 2,150 ft

Gabon
Shell
94
47
1975
First floating production system
begins work
Argyll
Hamilton
Reel pipelay exceeds 1,000 ft

water depth
Chickasaw
Oil Floating Production Systems

Source: http://www.oilpubs.com/v_catalog/print.asp?orderdetail=99
95
1976
Exxon's Hondo platform
installed in 850 ft water depth
First subsea alignment/welding

frame developed
Pipelay barges with 1,000 ft

capability
Viking Piper
ETPM 1601
Seismic data streamer tracking

introduced
Viking Piper Oil Platform, 1977

Source: http://www.scran.ac.uk/database/results.php?SCRAN=1&search_term=viking+piper
96
48
1977
Bottom-tow pipeline installation tested
Comex simulates dives to 2,000 ft
First tanker production system installed
Castellon
Shell
First manipulator arm developed for underwater vehicles
Manipulator arm of Pisces V holds a gas-sampling device over a vent where bubbles are streaming out of the seafloor, 2005
Source: http://oceanexplorer.noaa.gov/explorations/05fire/logs/april18/april18.html
97
1978
Computers convert velocity data into geological information

Deepwater welding (300 meters) certified
First bottom-towed pipeline
Statfjord
First measurement-while-drilling system introduced
Teleco
Radio telemetry used on towed seismic receivers
Shell's Cognac platform installed in 1,022 ft water depths
Statfjord
Source: http://www.wolfgangvolz.com/science.htm
98
49
1979
Fixed platform depth exceeds
1,000ft
First semisubmersible
construction vessel
Uncle John
Pipelay exceeds 2,000 ft water

depths
The semi-submersible research vessel "Uncle John“ Castoro VI
Source: www.netl.doe.gov/.../ CharHydGOM-41330.html
Sicily
99
Early 1980s
1981 1983
First long single piece jacket First guyed tower installed
launched Lena
Union
Exxon
Cerveza
First tension-leg platform in
968 ft operation
First offshore horizontal well drilled
Hutton
Rospo Mare
Conoco
Elf
1984
1982
Mechanical tie-in executed in 650 ft First steerable drilling system
depths Norton Christensen
Big Inch
Mechanical Tie in clamps

http://www.statsgroup.com/Products%20&%20Services/Co
nnection/MechTie-InClamps.html 100
50
Mid 1980s
1985
First floater installed in US Gulf
1,400 ft
Placid Oil
1986
Deepest US offshore well drilled
2,500 ft
Apache
Derrick barge lift capacity reaches
13,200 tons
McDermott
1987
Alaska's first arctic offshore field
onstream
Endicott
101
1988
Deepest fixed platform Drilling water depth reaches
installation 7,512 ft
1,353 ft US Gulf
Bullwinkle/Shell Shell
First minimal platforms emerge
in US Gulf
102
51
1989
First floater installed in US Gulf
Placid
3D seismic processing begins
103
1989
First US tension leg platform
Jolliet
1,760 ft
Conoco
Platform removals exceed
installations in US Gulf
Subsalt drilling begins
104
52
1991
Supercomputer Workstations begin modelling 3D seismic survey

First horizontal well drilled offshore
First offshore sand control fracture/packing job
Well completion in 2,360ft water depth
Petrobras
Sleipner A condeep sinks in Norwegian fjord
http://www.cseg.ca/education/careers/petro3.htm
Super computers at the University of California
Source: http://www.ramb.ethz.ch/sabbatical2002/ucsd/supercomputer-center/
105
1992
Saga's Snorre TLP installed
http://www.offshore-technology.com/projects/snorre/snorre6.html
106
53
1993
First J-lay pipelaying operation
McDermott
Shell
First threaded flowline installed

BP
Lay-away tree designed for

6,000 ft water depths
Petrobras
Saipem 7000
Shearable completion riser joint
Source: http://www.saipem.eni.it/BlueStream/images/photo/saipem7000_01.jpg Petrobras
107
1994
The Llano field
Second tension leg platform installed in GOM

Auger
Shell
2,860 ft water depth
Source: http://www.offshore-technology.com/projects/llano/index.html#llano1
108
54
1995
Spoolable gas lift completion developed
Camco
US Gulf's first successful floating producer installed

Enserch
109
1995
26,000 ft horizontal
displacement record set at
Wytch Farm
BP
UK
First concrete-hull TLP

Heidrun Norweigan North Sea
Conoco
Heidrun Platform
Source: http://www.statoil.com/statoilcom/svg00990.nsf/Attachments/plattformer/$FILE/heidrun_l.jpg
110
55
1996
First spar production unit
installed Oryx Energy Co.'s
Neptune in 1,930 ft water GOM
First through-tubing multi-
lateral intervention
111
1997
Production exceeds 5,000 ft
water depth
Shell
Mensa
First underbalanced well drilled

offshore
Williams rotary head
112
56
1999
First horizontal well to exceed 10km
BP Wytchfarm, UK
113
1999
First dual activity drillship
TransOcean
First 10,000psi subsea Christmas

Tree
Schlumberger on Texaco’s Gemini
field
3,400ft
Production Water Depth 6,157ft

PetroBras
Heaviest load carried by

submersible lift vessel
Mighty Servant
Petrobras 36
Brazil
31,183 tons
114
57
Twenty First Century
2001
Drilling Water Depth 9,687ft
First 15,000psi subsea Christmas
Tree
TOPS Gyrfalcon field in Green
Canyon
Block 20
Gulf of Mexico
USA
2004
3rd Generation Cell Spar
7200t in 5,300 feet of water
Garden Banks
Kerr-Mcgee
Red Hawk
Production Water Depth 7,600ft
115
Twenty First Century

2008 - Satellite Driller (Wagner
Instrumentation): provides
automatic bit weight control for
optimum drilling
2008 – Deepest offshore well

GOM
9,356 feet, or 1.77 miles
http://energybloggers.com/wp-content/uploads/2008/08/perdido.png
116
58
In Summary
This pictorial timeline

Gave an overview of the development of technology
Significant changes in time
Creates a historical perspective of change
Changes as innovative, development, refinement
Next lecture – Offshore structures
117
Lecture Conclusion
Online discussion:
One of the aspects you should have noticed is the growth of
subsidiary and complimentary industries to service the oil and
gas industry. Yet many of the companies are interconnected,
wholly or partly owned subsidiaries of other larger companies.
Using the web, find the major players and constituents of the
global oil and gas industry. You should identify industry
groups in terms of business descriptions and then 5 major
players in each group. Try to establish their relationships with
each other and also where they operate. You should aim to
have a clear map of the industry. You will need to share your
findings with the rest of the class. What did you find?
This is the end of lecture 1, topic 5

You may now progress to Lecture 2, Topic 5
118
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1

CRICOS Provider No. 00126G copyright © The University of Western Australia

BL Oil & Gas History, Economics and Geopolitics OENA8433

Dr. Karin Oerlemans

CRICOS Provider No. 00126G copyright © The University of Western Australia

 Milestones and influences in US offshore history (1947-1997),

 Chinese use bamboo/stone-drilling system for holes up to 14 inches

 Carthusian monks drill water wells down to 1,000 feet

 Cored trees used for casing in recovery of salt brine

 Circulated fluid used

 Source: D. Yergin (1991)

 Fluid circulation rotary diamond

 A platform on which there are

 Straddle rubber wall packer developed

 Steel cables replaces rope for cable tool drilling

 First diamond drill used

 Drilling control instrumentation

 Viscosity control agents introduced to mud systems

 First planned directional wells with

Source: www.roscoemoss.com/ rossum.htm l

 Power tongs and slips

 First directional control bottom-hole assembly

Source: http://www.bakerhughes.com/hcc/ about/history.htm

1960 - OPEC founded

 Submersible for 175 ft depths

Blue Water Rig No 1

 Second generation drillship

 First newbuilt semisubmersible

 Twin derricks mounted on

 Low temperature steels introduced

 Common depth point seismic technique

 Single buoy mooring system

 Second generation pipelay

 Twin pipelines laid in 8-knot

 Divers reach 600 ft depth

 First barge launch of platform

 Stinger and tensioner used S-Lay Barge

 US satellite transit navigation system set up

 Bright Spot seismic technology developed

 First deepwater re-entry

 Habitat, alignment frame

 Offshore survival capsules

 Landsat becomes available for remote sensing

 Small scale tension-leg platform

 Pipelay exceeds 1,000 ft water

 3-D seismic data acquisition tested

 Drilling water depth hits 2,150 ft

 Reel pipelay exceeds 1,000 ft

Oil Floating Production Systems

 First subsea alignment/welding

 Pipelay barges with 1,000 ft

 Seismic data streamer tracking

Viking Piper Oil Platform, 1977

 Computers convert velocity data into geological information

 Pipelay exceeds 2,000 ft water

Mechanical Tie in clamps

 Supercomputer Workstations begin modelling 3D seismic survey

 First threaded flowline installed

 Lay-away tree designed for

The Llano field

 Second tension leg platform installed in GOM

 US Gulf's first successful floating producer installed

 First concrete-hull TLP

Milestones and influences in US offshore history (1947-1997),

Chinese use bamboo/stone-drilling system for holes up to 14 inches

Carthusian monks drill water wells down to 1,000 feet

Cored trees used for casing in recovery of salt brine

Circulated fluid used

Source: D. Yergin (1991)

Fluid circulation rotary diamond

A platform on which there are

Straddle rubber wall packer developed

Steel cables replaces rope for cable tool drilling

First diamond drill used

Drilling control instrumentation

Viscosity control agents introduced to mud systems

First planned directional wells with

Power tongs and slips

First directional control bottom-hole assembly

Submersible for 175 ft depths

Second generation drillship

First newbuilt semisubmersible

Twin derricks mounted on

Low temperature steels introduced

Common depth point seismic technique

Single buoy mooring system

Second generation pipelay

Twin pipelines laid in 8-knot

Divers reach 600 ft depth

First barge launch of platform

Stinger and tensioner used S-Lay Barge

US satellite transit navigation system set up

Bright Spot seismic technology developed

First deepwater re-entry

Habitat, alignment frame

Offshore survival capsules

Landsat becomes available for remote sensing

Small scale tension-leg platform

Pipelay exceeds 1,000 ft water

3-D seismic data acquisition tested

Drilling water depth hits 2,150 ft

Reel pipelay exceeds 1,000 ft

First subsea alignment/welding

Pipelay barges with 1,000 ft

Seismic data streamer tracking

Computers convert velocity data into geological information

Pipelay exceeds 2,000 ft water

Supercomputer Workstations begin modelling 3D seismic survey

First threaded flowline installed

Lay-away tree designed for

Second tension leg platform installed in GOM

US Gulf's first successful floating producer installed

First concrete-hull TLP

First underbalanced well drilled

First 10,000psi subsea Christmas

Production Water Depth 6,157ft

Heaviest load carried by

2008 – Deepest offshore well

This pictorial timeline

Next lecture – Offshore structures

This is the end of lecture 1, topic 5