When oil and gas prices are high, technology obviously plays a key role in helping find and produce the energy necessary to fuel growing global economies. Likewise, when equipment and skilled personnel are in short supply, technology helps ensure that our industry gets the maximum productivity out of the limited asset base. Today, however, we are all faced with a different environment - one in which oil and gas prices have fallen to substantially reduced levels and the assets necessary to find and produce energy are readily available. Nevertheless, technology remains the key to success, even in challenging markets, because technical innovation provides the vehicle for achieving the cost reductions and increased efficiency essential for maintaining the economic viability of many exploration and development programs. Throughout its history, the oil and gas industry has continually had to deal with high levels of risk and uncertainty. In challenging markets, in particular, effectively managing risks and reducing uncertainty can make the difference between a project's success and its failure. Reducing uncertainty begins with putting together an optimized drilling plan that takes into account all available information. One of the most important developments in this area, which is highlighted in this publication, has been the development of highly sophisticated dynamic models of the total drilling system using finite element analysis of the BHA elements and precise detail of the drill bit/ formation interface.

Another important element of optimizing drilling efficiency and controlling costs is avoiding drilling surprises that can result in increases in non-productive time. Among the technologies contributing to improvements in this area are managed pressure drilling, advancements in measurement-while-drilling and logging- while-drilling systems, and improvement in the reliability and performance of drill bits and downhole tools. Many of the important advancements in these areas are also reviewed in this PennWell drilling technology supplement.

Smith International, Inc. has sponsored this drilling technology supplement as a means for helping operators around the globe better understand how recent technical advancements can be effectively applied to improve drilling performance, drive down drilling costs, reduce the levels of risk and uncertainty and help meet the drilling challenges of today and tomorrow.

Copyright PennWell Corporation Mar 23, 2009

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