difference between drilling rig and workover rig brands

Workover Rig is available for both onshore as well as offshore Workover purposes at affordable prices. There are a number of companies that manufacture the Workover Rig as well as Rig packages that are required for different kinds of drilling jobs and meet the standards that have been set by the American Petroleum Institute or the API. The Rig packages are shipped worldwide. The rigs are included other than the simple Workover and they include the following:

Workover Rig is known as the Workover the different types of rigs include the offshore and onshore Rig that range from 150 horsepower to 1000 horsepower. Workover rigs have a surface depth that is equipped with diesel engines and transmissions and is available from 8000 ft to 30000 ft. Workover rigs contain a full line of drilling packages. Rig takes into account the skid mounted drilling rigs and the ones that are trailer mounted. Workover skid mounted drilling rigs incorporate the diesel-electric AC/VFD or the DC/SCR drive rigs, mechanical drive rigs and the combination drive Rig that ranges from 1000 horsepower to 6000 horsepower; while the trailer mounted Rig ranges from 450 horsepower to 1000 horsepower.

A lot of Workover Rig uses the double telescopic mast with the help of a single mast and is operated by wide wheel base axels, high strength steel beam, low cross section tires, dual pipeline brakes as well as hydraulic assist steering for the Workover. Rig mast is a double section type and uses a telescopic mast for dual safety protection. The gear shift and throttle of the engine can be remote controlled.

Workover types of Rig are available in the form of the single drum as well as the double drum. The groove ensures the alignment of in place as well as for long life. The optional Workover accessories for the auxiliary brakes include air thrust disc type clutch, brakes for the braking of the main drum, forced water circulating cooling with the brake rims as well as the optional brakes. Workover rigs are centrally controlled with electricity. The other kinds of drilling equipment include drilling equipment, triplex mud pumps, well control equipment; solids control equipment, oil control tubular goods and quality equipment. Work over rigs run casing tools and clean outs inside and outside a hole already drilled.

There are many types of offshore platforms used for oil and gas drilling and exploration. Some of these are fixed to the ocean floor and others are floating platforms or vessels. Each is designed for different water depths and purposes. Some floating production systems may include storage or refinery facilities and employ hundreds of maritime workers.

Barge rigs work in shallower waters, usually less than 20 feet deep. After being floated to the drilling location, the hull is brought to rest on the ocean floor, creating a stable platform for drilling. Many barge rigs operate in the Gulf of Mexico and around the world.

Columns or posts are submerged into the water and filled to specific levels that determine their depth. Drilling equipment on the platform above drives a floating drill unit below.

As we move into deeper waters, a mobile platform called the “jack-up” rig comes into play. It gets this name because it can be moved directly over the location to drill or pump oil. The rig can be self-elevated (jacked up) from the bottom of the ocean floor to secure it in place. Jack-up rigs are well suited for shallow waters of 400 feet or less.

Fixed platforms are made of steel or cement and are intended to be permanent structures. They house large facilities, heavy equipment, and big crews. Most are located on the continental shelf in deep water up to 1700 feet.

When the oil or gas is even deeper, from 1500 up to 4900 feet, a compliant tower may be used. These structures are made of concrete and steel and are tall and narrow. They are intended to flex and sway with the wind and waves.

Up to 3000 feet, they attach firmly to the sea bed, but, for greater depths, a tension leg platform may be used. These towers are technically floating platforms that are secured with a series of anchors and cables. They are fixed but also floating, and they can reach depths of 7000 feet.

For deeper waters up to 12,000 feet, the preferred method of exploration and drilling is to use semisubmersibles or drill ships. Semisubmersible work-decks float on top of the water, while the vast majority of their mass is contained below the water to help stabilize the platforms and keep them in place. As a result, the deck is rather stable and well-suited for drilling in rough waters 3000-10,000 feet deep. However, semisubmersibles are not easily moved.

Spar Platforms, which sit on a hollow cylinder that hangs below the water at a depth of approximately 700 feet. This stabilizes the platform, allowing drilling up to 10,000 feet.

For new exploration and the drilling and capping of new wells, drill ships are typically used. Drill ships have the drilling equipment installed directly on the deck, typically in the middle of the deck. The well is drilled through the “moon pool,” an opening in the center of the ship. They are kept in place by dynamic positioning.

Working on any vessel or platform rig carries with it certain risks. Owners and operators of rigs need to take steps to help protect their workers and provide safe working environments. In the event they are negligent and workers are injured, they can be held accountable under maritime law.

If you are an oil rig worker, seaman, or vessel worker and have been injured while in the service of a vessel or ship, you could be entitled to monetary compensation. To find out more about your legal rights and if you have grounds for a personal injury lawsuit or “maintenance and cure,” contact the Jones Act attorneys at Schechter, Shaffer & Harris, L.L.P.

NESR’s fleet of rigs range from 200 HP to 1,500 HP and offer drilling capabilities for all type of wells with depths up to 4000m. Our fleet includes 750 HP truck mounted, fast moving rigs which are ideal for both light and heavy work over campaigns as both rigs are equipped with full edge mud system that can handle normal drilling activities.

We continuously update our modern fleet of land drilling rigs through investment and application of the latest technology. Our rigs are equipped with the most advanced equipment available and this combined with our experienced drilling team makes NESR the best choice for drilling and work over projects.

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This article is about the onshore oil rig. For offshore oil rig, see Oil platform. For drilling tunnels, see Tunnel boring machine. For handheld drilling tool, see Drill.

A drilling rig is an integrated system that drills wells, such as oil or water wells, in the earth"s subsurface. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person and such are called augers. Drilling rigs can sample subsurface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called "offshore oil rigs" even if they don"t contain a drilling rig). The term "rig" therefore generally refers to the complex equipment that is used to penetrate the surface of the Earth"s crust.

Small to medium-sized drilling rigs are mobile, such as those used in mineral exploration drilling, blast-hole, water wells and environmental investigations. Larger rigs are capable of drilling through thousands of metres of the Earth"s crust, using large "mud pumps" to circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate thousands of miles distant from the supply base with infrequent crew rotation or cycle.

Antique drilling rig now on display at Western History Museum in Lingle, Wyoming. It was used to drill many water wells in that area—many of those wells are still in use.

Until internal combustion engines were developed in the late 19th century, the main method for drilling rock was muscle power of man or animal. The technique of oil drilling through percussion or rotary drilling has its origins dating back to the ancient Chinese Han Dynasty in 100 BC, where percussion drilling was used to extract natural gas in the Sichuan province.Edwin Drake to drill Pennsylvania"s first oil well in 1859 using small steam engines to power the drilling process rather than by human muscle.Cable tool drilling was developed in ancient China and was used for drilling brine wells. The salt domes also held natural gas, which some wells produced and which was used for evaporation of the brine.

In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first pneumatic reciprocating piston Reverse Circulation (RC) drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.

Oil and natural gas drilling rigs are used not only to identify geologic reservoirs, but also used to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line.

Mining drilling rigs are used for two main purposes, exploration drilling which aims to identify the location and quality of a mineral, and production drilling, used in the production-cycle for mining. Drilling rigs used for rock blasting for surface mines vary in size dependent on the size of the hole desired, and is typically classified into smaller pre-split and larger production holes. Underground mining (hard rock) uses a variety of drill rigs dependent on the desired purpose, such as production, bolting, cabling, and tunnelling.

In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.

Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 short tons (91,000 kg) continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.

The drilling mechanisms outlined below differ mechanically in terms of the machinery used, but also in terms of the method by which drill cuttings are removed from the cutting face of the drill and returned to surface.

An automated drill rig (ADR) is an automated full-sized walking land-based drill rig that drills long lateral sections in horizontal wells for the oil and gas industry.Athabasca oil sands. According to the "Oil Patch Daily News", "Each rig will generate 50,000 man-hours of work during the construction phase and upon completion, each operating rig will directly and indirectly employ more than 100 workers." Compared to conventional drilling rigs", Ensign, an international oilfield services contractor based in Calgary, Alberta, that makes ADRs claims that they are "safer to operate, have "enhanced controls intelligence," "reduced environmental footprint, quick mobility and advanced communications between field and office."steam assisted gravity drainage (SAGD) applications was mobilized by Deer Creek Energy Limited, a Calgary-based oilsands company.

Temple, Robert; Joseph Needham (1986). The Genius of China: 3000 years of science, discovery and invention. New York: Simon and Schuster. pp. 52–4link)

Baars, D.L.; Watney, W.L.; Steeples, D.W.; Brostuen, E.A (1989). Petroleum; a primer for Kansas (Educational Series, no. 7 ed.). Kansas Geological Survey. p. 40. Archived from the original on 8 November 2020. Retrieved 18 April 2011. After the cementing of the casing has been completed, the drilling rig, equipment, and materials are removed from the drill site. A smaller rig, known as a workover rig or completion rig, is moved over the well bore. The smaller rig is used for the remaining completion operations.

"Ensign Launches Newest And Most Powerful Automated ADR 1500S Pad Drill Rigs In Montney Play", New Tech Magazine, Calgary, Alberta, 21 November 2014, archived from the original on 10 December 2014, retrieved 6 December 2014

Canadian drilling rigs meet some of the highest regulatory and safety standards in the world. It"s a dynamic and exciting community to build a career in.

Canada’s drilling fleet is always changing to incorporate new technology and meet market demand. Most noticeably, the Canadian drilling fleet is growing in numbers. The fleet has 40% more rigs than it did 15 years ago. Today, the rig fleet offers just over 600 rigs.

For the most part, a rig is a rig is a rig. For example, all rigs have a derrick (the mast-like structure that holds the pipe to be lowered into the well bore) a catwalk that holds the drill pipe, a rig floor where floorhands handle the drill pipe, a drawworks which is the machinery that hoists and lowers pipe and a blowout preventor that enables a driller to control well pressure.

But different size rigs are used depending on the drilling target formation. Oil formations tend to be deeper than gas formations. When investors are most interested in producing oil, large rigs are in high demand. When the market prefers gas production, small rigs are in demand. Western Canada has plenty of both gas and oil, and activity cycles back and forth between preferences of one over the other.

Drilling rigs come in three sizes: singles, doubles and triples. These categories refer to how many lengths of pipe can stand in the rig’s derrick. On a single, the derrick holds one length of pipe. A double holds two, and a triple holds three.

A tall derrick isn’t necessary to drill deeper. If more pipe is needed to drill deeper, a single section of pipe is hoisted to the rig floor and added to the drill string. But sometimes the entire drill string needs to be pulled out of the hole (to change the drill bit, for instance). A derrick that holds multiple lengths of pipe comes in handy and helps the crew to complete this evolution quickly.

A crew working on a triple is able to pull three lengths of pipe out of the hole before unscrewing the pipe. The Derrickman, working from the monkeyboard, sets the ‘stand’ of pipe in the derrick. Then the crew pulls up the next three joints of pipe. This evolution is called ‘tripping’.

The larger derrick is efficient to drill deep wells but isn’t necessary for shallow wells. Single rigs drill wells that are around 1 to 2 kilometres deep. These wells usually access gas basins. Single rigs and their crews change drilling locations often, sometimes every day or every other day.

Doubles and triples are larger rigs with bigger substructures and taller derricks. These rigs drill between 3 and 6 kilometres into the earth and might be at the same location for several months to complete deep drilling operations.

Singles, doubles and triples refer to conventional rig categories. Additional new categories of rigs have introduced different ways of handling pipe. For instance, some companies run coil-tubing rigs that stream tubing from a large reel instead of using drill pipe, or automated drilling rigs that are outfitted with a pipe-handling arm that raises the pipe into the derrick, eliminating the need for a derrickhand to work from the monkeyboard.

Through the 1990s, rig activity focused evenly on the two commodities. Then in 1998, there was a shift: gas wells began to make up the bulk of drilling activity. Through the early 2000s, rig activity increased year over year, but gas wells—which are shallower and can be drilled faster—far outstripped the increase in oil wells. Between 2001 and 2006, oil wells made up about 25% of rig activity, and gas wells 75%.

The drilling industry reacted to this demand by expanding the fleet. In 2007, the rig fleet grew faster than it ever it had before: 49 rigs were added. Most of these new rigs were the smaller ones best suited for gas drilling. Then in 2008, natural gas was on the market in abundance, and the stock market price of natural gas started to fall. Investors pulled back on gas drilling. In 2010, industry was back to an even split between gas wells and oil wells.

And then the turn-around happened: oil drilling overtook gas drilling in western Canada. In 2011, 61% of the wells drilled were seeking an oil formation, versus the 39% seeking gas. Today’s market continues to favour large rigs that can reach deep oil formations. There also is increased interest in accessing these formations at an angle: rig crews drill a well bore that curves toward a drilling target. Drilling rig contractors have been adding equipment in 2013. Unlike 2007"s fleet expansion, these rigs will be the larger, heavier rigs, primed for oil drilling.

The process of performing major maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the production tubing string after the well has been killed and a workover rig has been placed on location. Through-tubing workover operations, using coiled tubing, snubbing or slickline equipment, are routinely conducted to complete treatments or well service activities that avoid a full workover where the tubing is removed. This operation saves considerable time and expense.

Dublin, May 30, 2019 (GLOBE NEWSWIRE) -- The "Global Workover Rigs Market 2019-2023" report has been added to ResearchAndMarkets.com"s offering.

The growing demand for oil and natural gas will drive the growth of the global workover rigs market during the predicted period. The global consumption of natural gas has seen a significant rise due to the increasing use of natural gas as a fuel. With the increase in the demand for oil and natural gas, companies will try to enhance oil and gas production to meet the demand.

Oil and gas companies can increase the production in two ways. One way is to drill new oil and gas wells, while another way is to increase production from existing less-producing oil and gas wells. Workover rigs are used in both cases. Therefore, the increase in the demand for oil and natural gas will spur the need for workover rigs during well E&P activities such as intervention and completion and drive the growth of the global workover rigs market during the forecast period.

The increase in oil and gas investments, as well as government support for oil and gas E&P activities, will give rise to the need for intervention and completion services. where workover rigs are required. These factors are supporting the growth of the global drilling rig count. which indicates the growth of the global workover rigs market during the forecast period.

Crude oil prices have encountered large variations over the years, which have a negative impact on the profitability and performance of upstream oil and gas companies. A large number of drilling rigs were shut down, and many employees were laid off due to the variations in global crude of prices. E&P projects are executed only when the revenue generated is high enough for upstream companies to make profits. Thus, the uncertainty and fluctuations in global crude oil prices will hamper investments in E&P projects in both onshore and offshore fields, which will, in turn, impact the global workover rigs market during the forecast period.

The market appears to be moderately fragmented. The presence of several companies including TOKAIRIKA and Valeo makes competitive environment quite intense. Factors such as the increase in global drilling rig count and the growing demand for oil and natural gas, will provide considerable growth opportunities considerable growth opportunities to workover rigs manufacturers.

DRILLMEC Spa, Nabors Industries Ltd., National Oilwell Varco Inc., Precision Drilling Corp. Schlumberger Ltd., and Yantai Jereh Oilfield Services Group Co. Ltd. are some of the major companies covered in this report.

Electric generators powered by large diesel engines (the prime movers) generate electricity that move the heavy rig equipment such as the rotary table (or top drive), mud pumps and drawworks.

Electric Drilling Rig AdvantagesSafer: Stepless speed regulation allows for accurate control of the circulating, hoisting, and rotating equipment. Computerized driller’s cabin with touch screens for the display and control of drilling parameters.

More reliable: As generator sets are installed in parallel, shutting down a single unit for repair or maintenance normally can be done without interrupting normal drilling operations.

Sovonex electric drilling rigs are available in two types that either use direct current (DC) or alternating current (AC) to power the rig components:

On a DC drilling rig, alternate current (AC) produced by one or more AC generator sets is converted into direct current (DC) by means of a silicon-controlled-rectifier (SCR) system.

On an AC powered rig, AC generator sets (diesel engine plus AC generator) produce alternating current that is operated at variable speed via a variable-frequency drive (VFD).

Apart from being more energy efficient, AC powered rigs allow the drilling operator to more accurately control the rig equipment, thus enhancing rig safety and reducing drilling time.

Convenient and safe autodriller system for managing and controlling parameters such as weight on bit (WOB), rate of penetration (ROP), and rotary torque control.

On mechanical drilling rigs, also called power rigs, the rotary energy of the diesel engines is transferred directly to the drawworks, mud pumps, and rotary table (or top drive) via a system of chains (chain drive) or belts (belt drive), torque converters and clutches.

In addition, a separate generator set produces electricity to power the lighting system of the rig as well as small AC motors used by equipment of the mud control system.

Most truck-mounted drilling rigs are mechanical drilling rigs where the diesel engine or engines that are mounted on the carrier drive both the drawworks and the rotary table. In addition, each mud pump has its own diesel engine driving the pump via belts or chains.

Although mechanical drilling rigs are less expensive than electric drilling rigs, they are less reliable due to the fact, that the failure of a single main engine can can bring drilling to a halt. The main drives of a mechanical drilling rig are also less precise to control.

The rotary table (or top drive), on the other hand, runs on electricity produced by one or more separate generator sets. The electric power for the lightning system and smaller equipment like the shale shaker and degasser, is also produced this way.

Due to size constraints on a mobile rig’s standard substructure, installing an electric rotary table would be difficult, the rotary table also is driven mechanically by the prime movers on the truck.

The most important drive on a rig, the rotary table or top drive, is powered electronically and can thus be precisely controlled thanks to stepless speed regulation.

Manufacturer of standard & mobile rigs & carriers for oilfield applications. Includes well servicing from 14,000 ft. to 22,000 ft., workovers from 10,000 ft. to 16,000 ft. & drilling from 6000 ft. to 10,000 ft. Specifications include brakes range from 28 in. dia. x 8 in. wide to 42 in. dia. x 12 in. wide, barrels from 12 3/4 in. x 38 in. to 18 in. x 43 in., chains from 1 1/4 in. to 1 3/4 in., clutches of 24 in. with single & 2 plate air friction outboards, shafts of 5 in. dia. to 6 1/2 in. dia. & gross weights from 63,200 lbs. to 115,000 lbs. Also includes forged steel, demountable options, mufflers with spark arrestors, dry type air cleaners, transmissions with torque converters, water splash brake cooling & up to 6 axles.

The following is a list of seasonal work gear worn by drilling rig workers. Savanna supplies rig employees with coveralls, hard hat, safety glasses & impact gloves (1 pair).

Drilling rig crews are generally made up of six (6) people: Rig Manager, Driller, Derrickhand, Motorhand, Floorhand, and Leasehand. Each crew works 12 hours shifts as the rig operates 24 hours per day, and each position is vital to the operation of the rig.

Work in the oil and gas services industry is seasonal. Because of the weight of rigs and their equipment, and the remote location of wells, these locations are often only accessible when the ground conditions can tolerate heavy loads. Therefore, wells are typically drilled and serviced in the winter when the ground is frozen solid, or in the summer, when the ground has thawed and dried sufficiently. During the spring and fall, when the ground is in a transitional state, it is too soft to move equipment on and easily damaged. For this reason, provincial governments implement “road bans” prohibiting heavy loads from operating in certain areas. During this time, rig work is slower, and many rigs are shut down and their crews sent home. Be prepared to be off for anywhere from 6 to 12 weeks without pay during this time. However, rigs that are shut down are usually in need of maintenance, and there may be opportunities for employees who would like to help in this regard. Employees may be eligible for Employment Insurance benefits during seasonal shutdowns.

To work on a drilling rig, you must be able to get to and from all of your work locations.  As drilling often occurs in remote areas, having reliable transportation is considered mandatory for non-camp locations. Drilling rigs commonly operate 24 hours per day, 7 days per week with either three crews working 8 hour shifts or two crews working 12-hour shifts. Most often day crews and night crews will alternate weekly, so each crew has a chance to work during both the day and night. Most crews will work 14 days straight with 7 days off in-between. The typical living situation while working falls into three categories: Non-Camp, Full Camp and Texas Camp.

Non-Camp: When the rig site is near a town, non-camp conditions normally apply. Crews will stay in hotel rooms and receive a per day living allowance for food and accommodation. The living allowance is paid out on your pay cheque based on days worked, therefore you will need to be able to pay for your food and accommodation out of your own pocket.

Full-Camp: When a rig site is in a remote location, crews may stay in a full camp. In a full-camp all food and full accommodation is provided. Once at the camp, the crew travels to and from the rig in the crew truck. Almost all camp work is available in the winter only.

Texas Camp: These camps are typically located nearby the rig location.  Crews are responsible for supplying their own bedding, cooking supplies, groceries and toiletries.  While staying at a texas camp, a daily allowance is provided for food and toiletries.  The living allowance is paid out on your pay cheque based on days worked, therefore you will need to be able to pay for your food and toiletries out of your own pocket.

Savanna employees are paid every two weeks via direct bank deposit.  Savanna’s compensation package includes company group health, dental and disability coverage including paramedical coverage (acupuncturist, chiropractor, massage therapist, naturopath physiotherapist and much more).  Savanna also offers a competitive and rewarding retirement savings plan.

Once you have completed your orientation, you will immediately receive any other necessary training. This involves Workplace Hazardous Materials Information System (WHMIS) and Transportation of Dangerous Goods (TDG), along with an in-depth General Safety Orientation. This training is mandatory and provided by Savanna at no cost to the employee. Job-related, hands on training is conducted in the field through Savanna’s Rig Mentoring Program.

Some well locations have sour gas (Hydrogen Sulfide or H2S) present which is extremely dangerous. All employees are required to possess a valid H2S Alive certificate regardless of whether they are working on a sour gas well. This can be obtained by signing up for and completing a one-day (8 hour) course.

Courses are available at various locations across the province. For more information, contact Energy Safety (formerly Enform) at (780) 955-7770 or visit www.enform.ca or Leduc Safety Service at (780) 955 3300 or visit www.leducsafety.com. The cost of the course is usually between $130 and $150 plus tax, and the certification is valid for three years.

While it is not mandatory to have this certification, each service rig crew is required to have two members who are certified in Standard First Aid with CPR level C. Therefore, obtaining a certification beforehand is a great way to improve your chances of being hired.

Savanna is committed to providing a safe, productive and respectful work environment.  As such, Savanna has Policies in place to ensure the protection of our employees, contractors, the pubic and the environment.  All Savanna employees are required to acknowledge and follow the policies at all times.

The land drilling market worldwide is structured primarily as a rental market, not a sales market, where land drilling companies lease their rigs to E&P companies for an agreed period of time – weeks, months, or years – at a day-rate. The rigs are then used to drill wells and execute the E&P’s drilling programs.

Drilling opportunities are analysed and explored in order, leaving a series of dry holes, until a discovery is made. It is rare for an E&P company to actually own the rigs which they operate, but there are some exceptions such as Chesapeake, who will purchase their own fleet of rigs.

Under these rental contracts, a turnkey cost is paid by an E&P business to a middleman. This includes an insurance premium, which is returned if nothing goes wrong, but may be lost if there are difficulties. Higher specification equipment commands a larger premium.

Investors require a minimum level of return for their investment dollars in drilling operations, and typically equate cost with risk. These turnkey drilling contracts may limit risk by guaranteeing a minimum number of wells that can be drilled with the rig. The contract will also outline how the rig can be used – including the pieces of equipment, when to change pieces, temperature and pressure tolerances and the weight of mud.

The International Association of Drilling Contractors (IADC) lists 547 members in the category of Land Drilling Contractors. According to Statista, the key US land drilling contractors are: Nabors Industries Ltd, Helmerich & Payne Inc, Patterson-UTI Energy Inc, Precision Drilling Corporation and Pioneer Energy Services Corp.

Nabors operates the world’s largest land drilling rig fleet, with around 500 rigs operating in over 25 countries – in almost every significant O&G basin on the planet. It also has the largest number of high-specification rigs (including new AC rigs and refurbished SCR rigs) and custom rigs, built to withstand challenging conditions such as extreme cold, desert and many complex shale plays.

Headquartered in Tulsa, Oklahoma, H&P is a global business with land operations across the US, as well as offshore operations in the Gulf of Mexico. It is engaged primarily in the drilling of O&G wells for E&P companies, and recognised for its innovative FlexRig technology.

Patterson-UTI operates land based drilling rigs, primarily in O&G producing regions of the continental US, and western Canada. The company also provides pressure pumping services to US E&P companies and specialist technology, notably pipe handling components, to drilling contractors globally.

Precision is an oilfield services company and Canada’s largest drilling rig contractor, with over 240 rigs in operation worldwide. The Company has two segments. The Contract Drilling Services segment operates its rigs in Canada, the United States and internationally. The Completion and Production Services segment provides completion and workover services and ancillary services to O&G E&P companies in Canada and the US.

Pioneer operates a modern fleet of more than 24 top performing drilling rigs throughout onshore O&G producing regions of the US and Colombia. The company also offers production services include well servicing, wireline, and coiled tubing services – supported by 100 well-servicing rigs, and more than 100 cased-hole, open-hole and offshore wireline units.

Together these five companies dominate the US rental market. Other smaller but prominent contractors include: Parker Drilling, Unit Corp, Independence Contract Drilling, Seventy Seven Energy, Schramm and Ensign Drilling. Beyond these players, the market is highly fractured, with many “mom & pop” style drillers.

In Texas, generally considered to be the centre of US land drilling, RigData reports that there are currently 678 active rigs – split between Helmerich & Payne (160), Patterson-UTI (85), Nabors (64), Precision Drilling (39) and 77 other drillers (330).

Most new onshore rigs, both drilling and work over rigs, are built by OEMs in China. In the US, the larger vertically integrated land drillers have in-house manufacturing operations, so they will outsource some equipment construction, but assemble the new rigs at their own facilities. The leading provider of US newbuild rigs is National Oilwell Varco.

The secondary market, where existing rigs are sold, is largely auction dominated with mostly older rigs changing hands. As a rule, the big land drillers do not sell their newbuild rigs, as each has their own flagship designs.