Is there a glimmer of hope on the horizon?  Over the past 18 months West Texas Intermediate crude oil prices at the Permian's Midland Hub traded as much as $20/bbl less than similar quality crude in Houston last year. That's a big oil-price haircut that producers have had to absorb while ramping up production.  However, new pipeline takeaway capacity has arrived, and Permian prices are beginning to claw their way out of the depths. The rig count continues to decline as many operators, particularly those focused on the Permian have had the “Permian Haircut” – investors forcing them to cut cost and increase dividends rather than continuing to plow cash back into drilling programs.  These companies can emerge slimmer and trimmer with improved operating efficiencies. The service companies have been forced to adapt, sometimes painfully, to the new reality. More and more operators are reducing personnel headcount on the rigs in an effort to reduce costs and increase efficiencies.

What can the directional industry do?  Our industry has accomplished some amazing feats but we need to change with the times.  There is room to improve operational performance, particularly consistency in performance.  We also need to assist our operations personnel with the projected transition of their job responsibilities.  

As such I have undertaken to form an education committee.  I believe that it is time to formalize the training process that our personnel receive.  I also believe that we can institute a certification process, one that fairly allows an individual to be compared to their peers in terms of training and competency.  It is also in our interest that we can begin to retrain some of those in our industry in preparation for the evolving operations paradigm.

Our first “Pushing the Limits” newsletter is set to go out.  This brief highlighting areas where companies are pushing the limits will become a regular feature of IADD.  This will allow us to highlight those that are really putting it out there; from a technology or application standpoint.  Our industry continues to expand our horizons and we want to recognize and document that.

We have had some health issues with a few members of our staff in the last months, so we have undertaken some changes.  Iliana Sanchez has joined the staff as Special Project Manager reporting to me. I am sure that you will see her at the events that we have coming up this fall.

Lots going on this fall, so stay tuned for coming attractions.  Stay safe and warm (not a problem in Houston)! Now go out and drill something!!