snubbing unit vs workover rig pricelist

Pumping services tend to get more expensive offshore, because of the degree to which the equipment must be assembled on location. Wire based services still require assembly, but because the parts are smaller can usually be mobilized in larger ‘chunks’ thus requiring less assembly on location. On land, fluid pumping equipment is much more readily portable on trucks or trailers. Workover rigs on land are incredibly cheap in most places as measured on a per diem basis. Part of their advantage is that they arrive to location with most of their key components already assembled in/on one truck. This advantage disappears offshore where the rig must be assembled on site first.

Paying for a drilling rig or intervention vessel is the price of gaining physical access to the well. Everything else must be added to it to get physical access to the general area and then gain access to the well. There is no need for various forms of standalone pumping services because the vessel or rig will already have a cementing unit and/or the mud pumps available for that sort of work.

Performing the same operation over and over again has significant cost savings attached to it. Once the correct housing and supply arrangements are in place, and all the necessary people and equipment have been assembled, continuing to use it altogether ‘as is’ can save an enormous amount of money compared to dispersing it all and starting over again later. For land operations, this is most pronounced in areas where reservoir, surface, and operational practices allow for grouping wells together in relatively small areas, and for clustering well pads. Depending on what work is being done to the wells and how close together they are it may be possible to ‘hop’ from one well to the other without ever moving the equipment on a road or doing a complete rig-down.

Deepwater operations can benefit from this too, but not as much as ‘traditional’ fixed or surface access facilities, because the overall day rate of the rig or intervention vessel is often much higher, and the process of switching between wells is often much lengthier.

On land, you hire the unit and crew, and a small diem fee is added to the cost of employing them so they can stay in a hotel and get food when they are not working. The crews will transport themselves to and from the well and move the equipment to and from the well also.

The costs of conducting business in each of these 3 areas tend to scale very roughly in factors of 10. 100 wells making 50 bbls of oil each on land is a cash cow. Offshore that is a disaster, because the cost of servicing those wells is prohibitive. A more reasonable scenario is 10 wells making 500 bbls of oil each. In deepwater, a well making 500 bbls of oil a day is an abandonment candidate, if indeed it got that far along before abandonment. One well making 5,000 bbls a day is more. The direct cost of hiring (for example) a snubbing unit do not scale by factors of 10, but the overall cost of employing a snubbing unit do. As a result, different types of well servicing make sense in one area which may not make sense in another. On land in areas with ordinary access to infrastructure (not the Sahara or Alaska) operations like slickline are often so cheap that they are a routine procedure, with preventative or predictive maintenance schedules to scrape away paraffin or remove small amounts of scale. By contrast, it is completely cost prohibitive to try and attempt to perform similar work in deepwater – you either design and operate the well in such a way that paraffin and scale do not build up in the wellbore at appreciable rates, or you P&A the well. The cost of routine mitigation is simply too high. The relative cheapness of most workover rigs on land is another major factor. Many types of operations which could in theory be carried out in some other way are done with a workover rig simply because it is the most cost-effective technique, even if other methods might be faster, or involve fewer people. The relatively high cost of a rig for offshore facilities means that in most cases every effort short of getting a rig is tried first. Then a catalogue or list of operations to be conducted by a rig at a given facility will be gradually built up over time until they reach a critical level. At that point, a rig will be sent out to conduct all the operations which only it can perform, moving from one well another to save costs by making the work repeatable.

Snubbing units have evolved into one of the most capable and efficient well servicing tools in the oil & gas industry. In the 1920"s, the need for a rig to work with pressures at surface drove the invention of the snubbing unit. The first snubbing unit was primarily designed to work in well control situations to "snub" drill pipe and or casing into, or out of, a well bore when conventional well killing methods could not be used. The first snubbing unit relied on the draw works of the companion rig to supply its" power. A series of sheaves, cables and counter weights were rigged up so that as the rig"s traveling blocks hoisted up, the snubbing unit would snub in the hole. Conversely, when the traveling blocks on the rig were lowered, the snubbing unit would snub out of the hole. As you can imagine, this required close communication with several different contractors in order to perform the work safely and efficiently.

One of the main components of a snubbing unit is the slip. Stationary and travelling slips are operated in sequence to grip the pipe as it is snubbed into the well. Typically, a minimum of four slip bowls are used in snubbing operations. Two slip bowls are designated for "pipe light" operations. Pipe light is when the well bore forces are greater than the tubular weight in the well bore. The other two slip bowls are designated for "pipe heavy" operations. Pipe heavy occurs when either enough pipe has been snubbed into the well bore and fluid weight inside of the pipe is greater than the snub forces acting against the pipe in the well bore.

While snubbing into the hole, there is a transition point the tubular goes through from being pipe light, to pipe heavy. This transition is an equilibrium typically referred to as the "balance point". The balance point occurs when there is enough pipe weight in the wellbore to equal the snub forces generated against the pipe. In certain instances, thousands of feet of pipe can be moved with minimal effort since the pipe weight is at an equal state with the snub forces. Snubbing contractors calculate this snub force and add in a friction factor from the BOP and wall contact on either a casing or tubing string. If done correctly, the snubbing contractor can predict when this balance point will take place and can properly prepare for it.

Modern snubbing units are powered by sophisticated hydraulic systems. These hydraulic units typically supply all power required by the components of a snubbing operation. With a better understanding of hydraulics and modern advances, companies have been able to harness this hydraulic energy to develop precision controlled snubbing units. These units move tubulars into and out of a well bore by use of a "multi cylinder jack"; a snubbing jack comes in many sizes depending on the task at hand. They are usually denoted in size by the snubbing unit description (i.e. 460K, 340K, 200K, etc). The 460K snubbing unit has the ability to lift 460,000 LBS and a snubbing capacity of 230,000 LBS. Most snubbing units can typically snub half of their lift rating. Assume you had a well with 10,000 PSI at surface and wished to snub in a string of 2 3/8" tubing. The snubbing contractor can calculate the snub force, add in their respective friction calculations and project the snub force to overcome will be approximately 51,000 LBS. This would put a 120K snubbing unit to close to its maximum capacity of 60,000 LBS snub loading. The safest bet would be a 150K or 235K snubbing unit.

Well control is taken very seriously by snubbing contractors. The BOP is the only barrier between the well bore and personnel. Depending upon well conditions, pressures and work performed, the BOP stack configuration varies greatly; there can be a minimum of three BOP"s and in some cases, up to ten. All of this is determined in the pre-job phase of the operation.

Pipe handling is performed by the snubbing units "gin pole" and "pipe winches". The gin pole is typically telescoped out in excess of 40ft above the snubbing unit. With the use of dual tubing winches, multiple joints of pipe can be handled simultaneously, speeding up the operation.

The snubbing "basket" is the platform where the snubbing personnel work. The basket contains all of the necessary hydraulic controls to operate all the features of the snubbing unit, as well as a large bank of BOP"s and hydraulic valve controls.

Today"s snubbing units can be employed to provide a wide range of services. In essence, a snubbing unit is a hydraulic rig that can do everything a rig can do, plus it can perform under pressure in an under balanced live well state. This is especially critical to the operators in the Haynesville Shale, which is known for HPHT wells. With the use of the snubbing units" hydraulic rotary, the unit can be employed for fishing, milling, drilling, side tracking or any task needed to remove bridge plugs, cement or deepen wells.

The industry has become more aware of damages caused by heavy kill weight fluids and mud. This has helped make snubbing units more popular in a completion and workover role, versus its" traditional use as a well control response tool. With the advances in drilling technologies in the unconventional shale market, the benefits of snubbing units have become very apparent. These types of completions often have laterals extending out thousands of feet. With costly stimulations used to help extract the gas more efficiently, operators often times do not wish to turn around and load the well with heavy fluids to complete the well dead.

Coiled tubing has its limitations in reach, due to wall to wall mechanical friction in horizontal wells. Often times the coiled tubing units cannot reach TD or supply the needed weight on bit to mill up composite plugs typically used in completions.

Another clear advantage to using a snubbing unit is its" small footprint, which is critical on the tight locations in the unconventional shale"s. Moreover, the small size and ease of mobilizing is especially useful and cost effective with offshore wells.

In conclusion, with the snubbing unit"s size, ability to handle pressure, rotary capabilities, rigidity of jointed tubing and minimal wall contact, snubbing units have become the chosen resource for these types of completions.

Snubbing is a process that controls the pressure of oil or gas in order to run or pull tubing, drill pipe, or casing. These applications use the standard snubbing unit to complete or re-complete wells in a “live well” condition. Any type of workover application can be performed utilizing quick jacks.

Snubbing units are often used in place of workover units for offshore applications. Snubbing can offer the same services at a greatly reduced cost to the customer. Snubbing can be performed on live and dean wells. Milling operations can be faster and more precise with snubbing units due to infinite control of torque and speed of the rotary mounted on the snubbing jack.   Snubbing is versatile alternative that can overcome the limitations of other workover systems - wireline, coiled tubing and conventional workover rigs.  It eliminates the use of kill fluids that can damage the producing formation and require costly disposal. Snubbing is also a faster solution.  Snubbing units can often have the task completed before a conventional workover operation is even rigged up.

Snubbing is your best choice when conventional draw works are absent.  The self-contained equipment requires little space and can finish the job quickly.  The hydraulic system"s precise control over force protects against overload and allows responsive tool manipulation.

Major players in the hydraulic workover unit market are Archer limited, Basic Energy Services, Inc. , Canadian Energy Equipment Manufacturing FZE, Cudd Energy Services, Easternwell Group, Elnusa, Halliburton Company, High Arctic Energy Services Inc, Key Energy Services, LLC, NOV Inc.

New York, March 24, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Hydraulic Workover Unit Global Market Report 2022" - https://www.reportlinker.com/p06247583/?utm_source=GNW

The global hydraulic workover unit market is expected to grow from $8.65 billion in 2021 to $9.58 billion in 2022 at a compound annual growth rate (CAGR) of 10.7%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $12.40 billion in 2026 at a CAGR of 6.7%.

The hydraulic workover unit market consists of sales of hydraulic workover unit services by entities (organizations, sole traders, and partnerships) that utilize versatile, cost-saving, and safe techniques for the repair and maintenance of all types of wells.Hydraulic workover is a well intervention technique used for installing or removing tubes (pipes) in and out of dead wells (the well with zero surface pressure).

The main services in the hydraulic workover unit are workover and snubbing.The snubbing services are used to install or eliminate tubular from a well while the well is pressurized.

Snubbing has the advantage of allowing work to be done without dying the well, which eliminates reservoir formation damage and costly stimulation procedures.The various installation types include skid mounted, trailer mounted and has a capacity in different ranges such as 0-50 tonnes, 51-150 tonnes, above 150 tonnes.

North America was the largest region in the hydraulic workover unit market in 2021. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The increasing shale gas production is projected to propel the growth of the hydraulic workover unit market in the coming years.Shale gas is natural gas generated from a type of sedimentary rock called shale that is formed from clastic origins such as sedimentary rock or siltstone.

The most adaptable technology available in the upstream oil and gas industry is the snubbing unit, which is a type of hydraulic workover unit. According to the United States Energy Information Administration, shale gas production in the USA is expected to increase from 27.90 trillion cubic feet in 2021 to 32.50 trillion cubic feet by 2025. Therefore, the increasing shale gas production drives the growth of the hydraulic workover unit market.

The introduction of multiphase projects is a key trend gaining popularity in the hydraulic workover unit market.Major players operating in the hydraulic workover unit sector are launching multiphase projects in collaboration with technology players to set a new offshore snubbing unit or hydraulic workover world record.

For instance, in September 2020, SBS Energy Services (SBS), a US-based provider of snubbing, hydraulic workover services entered into a strategic partnership with Helix Solutions to complete a multi-phase project that deactivates roughly 29,000 feet of 10 inches by 6 inches insulated pipeline in the Gulf of Mexico.

In April 2019, High Arctic Energy Services Inc., a Canada-based drilling oil and gas wells company acquired assets of snubbing services equipment from Precision Drilling for $8.5 million. The acquisition provides the High Arctic with additional quality snubbing equipment and access to experienced personnel and crews. Precision Drilling is a Canada-based drilling rig contractor involved in offering snubbing services, oil field rental, and supplies.

The countries covered in the hydraulic workover unit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

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The global hydraulic workover unit market size is predicted to grow at a 3.84% CAGR in the forecast period (2020- 2027), states the current Market Research Future (MRFR) report. A hydraulic workover unit is the perfect well intervention solution for re-entry operations, well interventions, and well maintenance. This unit uses hydraulic cylinders for lifting the tubular or out of the well. The hydraulic cylinders enable complete control over tubular movements and helps in eliminating the need for a huge mast construction that is present on conventional drilling rigs.

According to the MRFR report, there are numerous factors that are propelling the global hydraulic workover unit market share. Some of these entail technological advances in oil and gas well production, increasing offshore production post decline in oil prices, the burgeoning need for hydraulic workover units in the offshore oil and gas industry, the rising electricity demand, increasing focus on offshore exploration, the production of E&P of oil and gas, the rising efforts by upstream companies to improve the production from the mature fields, and the increasing oil and gas production. The additional factors adding to the global hydraulic workover unit market value includes the growing development of natural gas resources, the rising focus on mature oil and gas fields with the implementation of digital technologies which are the latest hydraulic workover unit market trends, rising energy demand in developing economies, increasing number of exploration activities, well drilling activities, and hydraulic fracturing, growing demand for snubbing services, and rising number of mature oil and gas fields.

On the contrary, stringent environmental regulations, lack of skilled workforce, problems related to the use of hydraulic workover unit like long rig-up time, and problems in transport for its heavy weight may impede the global hydraulic workover unit market revenue over the forecast period.

The oil and gas sector unfortunately has faced the brunt of the ongoing COVID-19 crisis which in turn has impacted the hydraulic workover unit market. Owing to the present scenario, several oil and gas companies across regions were compelled to shut down their services and producing assets as countries practiced complete or partial lockdown strategy for dealing with the pandemic. Across the region, companies has either delayed or suspended the key oil and gas projects. Besides, the crisis has also impacted the rig count for oil and gas, well drilling and production activities, and also crude oil prices. All these factors have negatively impacted the global hydraulic workover unit market growth.

The MRFR report highlights an inclusive analysis of the global hydraulic workover unit industry based on application, installation, service, and capacity.

By capacity, the global hydraulic workover unit market is segmented into above 150 tonnes, 50 to 150 tonnes, and up to 50 tonnes. Of these, the above 150 tonnes capacity segment will lead the market over the forecast period.

By service, the global hydraulic workover unit market is segmented into snubbing and workover. Of these, the workover service segment will dominate the market over the forecast period.

By installation, the global hydraulic workover unit market is segmented into trail mount and skid mount. Of these, the trail mount installation segment will spearhead the market over the forecast period.

By application, the global hydraulic worker unit market is segmented into offshore and onshore. Of these, the onshore application segment will have the lions share in the market over the forecast period.

Geographically, the global hydraulic workover unit market is bifurcated into Europe, North America, South America, the Asia Pacific, & the Middle East and Africa (MEA). Of these, North America will have the lions share in the market over the forecast period. Per capita consumption, production, and exploration of oil and gas, advances in upstream operations, high production of crude oil produced from tight oil resources in the US, the rise in the production and extraction of oil and gas increases the need for hydraulic workover units to perform routine well maintenance for offshore installations, inland waters, and land, increase in the need for cost-efficient method to repair leading to the installation of hydraulic workover units, the growth in unconventional resources in Canada and the US, and the demand for intervention operations in the maturing offshore fields in the Gulf of Mexico and other onshore fields in the US are adding to the global hydraulic workover unit market growth in the region.

In Europe, the global hydraulic workover unit market is predicted to hold the second-largest share over the forecast period for technological advances and increasing exploration and production of oil and gas.

In the APAC region, the global hydraulic workover unit market is predicted to have admirable growth over the forecast period. Rise in demand for energy in emerging economies of India and China are adding to the global hydraulic workover unit market growth in the region.

In the MEA and South America, the global hydraulic workover unit market is predicted to have sound growth over the forecast period. The presence of large untapped energy reserves is adding to the global hydraulic workover unit market growth in the region.

The prominent players profiled in the global hydraulic workover unit market report include ZYT Petroleum Equipment Co., Ltd (China), Uzma Berhad (Malaysia), PT Elnusa Tbk (Indonesia), Canadian Energy Equipment Manufacturing FZE (UAE), Velesto Energy (Malaysia), Superior Energy Services (US), Basic Energy Services (US), High Arctic Energy Services Inc. (Canada), Precision Drilling Corporation (Canada), Cudd Energy Services (US), Archer (Norway), National Oilwell Varco (US), and Halliburton (US), among others.

The global hydraulic workover unit market is fragmented and also competitive with the presence of many domestic as well as international industry players. They have incorporated assorted strategies to stay at the forefront and also cater to the surging needs of the customers, including collaborations, partnerships, contracts, geographic expansions, new product launches, joint ventures, and more. Additionally, these players are also making heavy investments in research and development activities for strengthening their portfolios and also creating a hold in the market.

The global hydraulic workover unit (HWU) market size was USD 8.11 billion in 2020. The market is anticipated to grow from USD 8.59 billion in 2021 to USD 13.21 billion in 2028 at a CAGR of 6.4% in the 2021-2028 period. The global impact of COVID-19 has been unrivaled and staggering, with it witnessing a negative demand across all regions amid the pandemic. Based on our analysis, the global hydraulic workover unit (HWU) market exhibited a decline of -14.5% in 2020 compared to the average year-on-year growth during 2017-2019. The growth during the forecast period is attributable to this market"s demand and growth, returning to pre-pandemic levels once the epidemic is over.

The COVID-19 pandemic initiated by the spread of the novel coronavirus has had a damaging impact on the global industrial landscape. This industry faced significant losses and have had to reduce operations due to the imposition of rigorous lockdowns to contain the spread of the COVID-19 virus. Consequently, the outbreak of the virus has transformed the demand for HWUs.

As the hydraulic workover unit industry is majorly dependent on oil and gas activities, the decline in oil prices in a long time has significantly impacted the investment in the instrument. The imposition of lockdowns in various countries and the shutting down businesses except for essential services with minimal workforce affected the energy demand. This factor has directly impacted work in the well interventions sector.

In July 2019, Kuwait signed a USD 600 billion offshore exploration contract with Halliburton. The contract aimed to drill six exploration wells in the next two to three years, which is anticipated to increase around 100,000 b/d in the forecast period. The United Arab Emirates invested approximately 31,000 square kilometers of acreage for offshore oil gas production, majorly in the Abu Dhabi and Ras Al Khaima regions. In January 2020, Russia announced a significant investment of around USD 300 billion for new offshore oil and gas projects.

The world is likely to derive massive oil and gas from offshore production. The more arduous production conditions in offshore locations increase the investment in more complex and newer technologies like hydraulic workover units. The onerous requirement for offshore with ease of operations is the primary market driver during the projected period.

There is a substantial increase in demand for developing a safe, versatile, and cost-effective tool for workover and well intervention operations due to the increasing number of mature oil fields. This factor bolsters the demand for HWUs globally. This equipment can be efficiently used with low setup times and are more cost-effective. Earlier workover rigs were used for similar operations, which took a lot of time and effort to be set up and used. Further, the wells had to be killed before operations, However, with newer technologies, HWUs with snubbing capabilities have made snubbing capabilities possible with newer technologies.

In 2021, MEIL, India started manufacturing a new type of HWUs with indigenous know-how, especially for the local market. The increasing demand for more effortless functioning, avoiding well-killing, secure and cost-effective well intervention units is an important trend for the hydraulic workover unit market.

A mature oil and gas field is past peak production. These oilfields account for a majority of the world"s crude oil production. With enhanced technological approaches like enhanced oil recovery (EOR), the recovery of mature oil fields has seen a tremendous increase. Increasing recovery from mature fields has necessitated prolonging the well and improving production using well interventions and workover.

With the deterioration in oil reserves, companies have increased their focus on inventing equipment required to access remaining reserves on mature wells. The prime focus is to improve recovery and prolong life. But the amplified water cut with constrained topside facilities, growing flow assurance problems, rising operating costs, and integrity issues because of the maturing facilities have made brownfield operationally and economically impractical. The increasing requirement for workover services is anticipated to bolster the market growth.

The growing population explosion and urbanization has resulted in a spike in energy requirement from the various end-user sector. As renewable energy is still in an early adoption stage of its product life cycle, the majority of power generation is handled by hydrocarbons. Due to inadequate development of other energy sources, the growing global oil and gas demand enhances well drilling and maintenance. The increase in crude oil and shale gas production capacities and an increasing number of brownfields is expected to enhance the well workover and intervention demand, fueling the market growth.

The primary factor restraining the hydraulic workover unit market growth is the consumer shift towards clean fuels. The increasing requirement of the renewable energy sector will undoubtedly decrease the investment being made in the oil and gas energy sector, which will harm the well intervention sector. The increasing proportion of power generation using renewable energy can hinder the principal investments being made for oil and gas. Also, the necessity to reduce carbon emissions has powered the acceptance of renewable energy, with government incentives being granted worldwide. Further, the developing competence of renewables for power generation with durable benefits can result in increased adoption over conventional fuels.

The services carried out by hydraulic workover units are completions, plug & abandonment, ESP completion, sand screen installations, well deepening, fishing/clean-outs, casing repairs, etc. Workover segment includes operations over dead-wells, while snubbing involves installing or removing pipes in or out of live wells. The increasing demand for dead wells" services due to the high number of brownfields is critical for the workover segment. The workover segment involves a broader range of services, making the segment significant.

The snubbing market segment is gaining traction due to increased demand for performing operations of live-wells and avoiding well killing. The rising popularity of snubbing services is anticipated to propel the snubbing segment of the market.

Due to the high oil production from the onshore segment and the larger number of onshore oil rigs, the segment dominates the market. Moreover, most of the onshore oil rigs are mature and drive significant demand for the market.

The North American region holds a significant share in the market due to the high adoption of workover and snubbing services, coupled with demand for ease and efficiency of operations and technological advancement. Also, the rising proportion of mature oilfields in the region drives the market. Additionally, the government norms to reduce emissions led to companies finding it unviable to increase exploration and an increased necessity to prolong existing oil wells and drive the region"s market.

The competitive landscape for the hydraulic workover unit study shows that very few current companies have invested widely in research and development. The market has seen substantial recent technological advancements to keep pace with the best manufacturers. Considering all the scenarios, Balance Point Control and Halliburton are the major companies that have invested in developing HWUs. They are anticipated to continue being the key players in the future.

April 2021- Megha Engineering and Infrastructures Limited (MEIL) started manufacturing advanced hydraulic technology rigs with indigenous knowledge for the oil and gas sector. The development of HWUs commenced in the Kalol oil field near Ahmedabad, Gujarat. This manufacturing project was taken up to support the Government of India"s "Make in India" initiative.

July 2021-In its quarterly results, Norwegian Energy Company ASA announced that the Noble Sam Turner drilling program began a well workover and maintenance campaign in spring 2021 and completed three well workovers, which contributed to almost 2000 bpd bringing positive results on operating performance during the second quarter. The use of HWUs significantly contributed to the success of the campaign.

The global hydraulic workover unit market research report highlights the leading regions worldwide to understand the user better. Also, it provides insights into the latest market trends and analyzes technologies deployed rapidly with market statistics. The report highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.