Oil price and its effects on the oilfield

Well right now the oil price is as low as 33 dollars a barrel...and I am sure it costs Oil companies a similar amount or as much as 40 dollars a barrel to break even.

For a couple of years the price was high and buisness looked good, but this is a reactive business and not know for being pro-active!

During the good times decisions are taken to build new rigs, day rates paid by oil companies to drilling contractors are forced high by the economy...but unfortunately the salaries do not jump with the market!

But some companies do try other tactics to lure people into a business which is drastically short of skilled labour...offering bonuses on starting or yearly paid and these can vary from company to company

At present companies are tightening the purse strings and are being seen as doing so, cutting down on unnecessary travel, cutting back on hospitality lunches etc.

If the economic downturn continues rigs will get stacked, whereby they stop drilling until it is deemed financially viable to drill again. If you are on the rig that is stacked and you are an agency hand or work for a smaller company...then you generally get paid off!

In my opinion a proactive business would build rigs in a downturn for cheaper rates, get a better deal and then wait for the upturn as recently numerous companies have started to build rigs and have paid way over the top for what they are really worth....similar to the housing market really!

I think some more companies will merge and some smaller ones maybe eaten up by the bigger ones for being reactive rather than proactive!

The rig in the picture is the newly christened Maersk Resolve, where money was saved on a low key christening ceremony.

Can anyone get a job in the oilfield?

Well, what a great question and maybe it should read...'who would want to work in the oilfield'?

Qualifications required;
for offshore jobs, apart from qualifications listed with categories below the minimum requirement is Offshore survival certificate and Medical certificate. I will add more info on the above later.

Drilling jobs;
basically start with no qualifications required and you start as a roughneck and work your way up over a period of time...the time period can be reduced if you know someone in the buisness or sometimes even if you are smart.
(Note: some companies are recruiting educated personnel who start as assistant drillers on a fast-track program)

Technical Jobs;
Qualifications are necessary for these posts, although if you can bluff it with an Agency for a couple of months and are ok, then the drilling contractor could employ you through the agency.
I have heard of one guy who started as a Roustabout and was promoted to Electrician and whether he was an electrician or had qualifications I do not know.

Marine jobs;
Generally some sort of marine qualification is required.

Agency work;
Drilling contractors often use agencies to fill in for employees on the sick etc.
Agency hands get a day rate and do not generally get paid when they are off the rig. Drilling contractors employees are generally salaried and that means paid when they are on and off the rig.

Roughneck at work....or play?

Maybe this roughneck had too much to drink last night?

Technical people and their role on the rigs....

Yes, there are some technical people on the rigs.

Electrician - Generally Called a Senior Electrician as titles can make people feel they are better than they are paid!
This guy has to look after systems from the lighting, to the kitchen cooker and then work on the rig floor repairing motors and generally with the Toolpusher standing behind him asking 'how long will it take....we are on downtime'

Mechanic - same goes for this one also, generally a senior mechanic.
This guy usually works alongside the Electrician and look after anything from the toilets to the Main Engines!

Rig Engineer (offshore only) - this guy is generally a marine educated engineer.
This guy usually co-ordinates the work on the technical team.


Generally the Technical crew work alone or as a team on breakdowns, unlike the drilling department who like as many people as possible when they have a problem....which sometimes can be hilarious! Pictures may follow!

Salaries in the oilfield

Salaries in the Oilfield in todays day and age are ok. They probably have not gone up as much as they should have over the last 20 years, but they are ok.
A lot of people can claim a day rate salary working through and agency....or as the Company Men like to say 'consulting'!!
'I am a consultant' can also mean 'I have been round the block a few times'!
One think that really would strike non oilfield people as amazing is someone with no education, possibly with learning difficulties, could be an ex convict, struggles to turn on the computer, believes management skills are punching techniques, can command a salary in excess of $150k and be considered responsible enough to be in control of many peoples lives, and then in a downturn can command a salary of less than $40k as a car park attendant or similar (no disrespect to car park attendants).
I have to say from a personal viewpoint I have met some people who earned their salary and with whom I have felt were totally in control of the rig, but there are others who....

Tools of the trade...

Roustabout - needs a broom and wellington boots ( with L & R painted on the toecap)

Roughneck - needs gloves, main purpose of which is to catch the finger parts when they are chopped off....(Which must not be classed as a lost time incident!)
Needs 15 pound hammer to adjust equipment.

Derrickman - Needs rubber gloves and an apron, not for mixing purposes, but for private activities after work.
Plastic bottle essential to relieve oneself high in derrick, or failing that, must have good aiming skills so as to avoid hitting colleagues working below.

Assistant driller - Scientific calculator required and it must have + and - keys!

Driller - padded boiler suit, as sitting down for 12 hours everyday can be sore.

Toolpusher - Better calculator than assistant driller!
Bigger bottle than Derrickman!
Bigger hammer than Roughnecks!
Tally book, to provide notes that can be used to save your arse when all those below you drop you in it!
Television remote controller.
Necklace with 'drill bit' charm optional.
Finally a magic marker pen to mark all your equipment from computer chairs, computers, tally book, coffee pot....

Company man - does not require anything....as he has it all, been there, done that!

Job requirements....

Roustabout - need to be able to use a high pressure cleaner and a broom. Needs to be versatile as can be used as everyone's asisstant.

Roughneck - needs to understand the screaming and shouting from the drillers and toolpushers.
Aspirations to become a driller will not be swayed by education,only by how much you suck up to the required personnel.
Tattoos are optional.
Non-drinkers need not apply.

Derrickman - needs to like heights and playing with mud, but not both at the same time....although in case of blowouts this maybe a necessity.

Assistant driller - needs to be able to cover up any mistakes made by the driller, if not, must be willing to take the blame!
Fills out IADC report for toolpusher and if he can use joined up writing, will never get promotion.

Driller - must have ambitions to become night toolpusher but be willing to wait until night toolpusher has been promoted after Senior toolpusher is run off.

Senior toolpusher - must have drilled the deepest hole...or at least talk about it.
Must have learned the art of drilling management....shout loud and threaten to punch anyone who does not listen.
Not necessary to have education, but must have to pass Well control exam every two years, or be clever enough to get someone else to take the exam for you.
The ability to talk about, but not necessary to understand the terms, underbalanced drilling and differentially stuck.
Alcohol abuse not necessary but will help.
The saying ' he was my driller' and ' we roughnecked together' should be used often especially on a date with a futuer girlfriend.

Company Man - must be able to sleep for a living, but more importantly wake up from long sleep and make major decisions like.... 'I need to call town' or ' I will shut the rig down if the coffee pot is broken'

I will try and add comments and insights into this industry. I have worked in the oilfield since 1996 and have had many experiences and met many interesting people.
I will list the various job titles, so as to avoid confusion later.
This blog will include land based and offshore experiences!

Roustabout - works on the deck (away from rig floor)
Roughneck - works on the rig floor
Derrickman - works high in the derrick, also in charge of mud mixing system
Assistant driller - job description says it all
Driller - drills the holes!
Night Toolpusher - basically in charge at night
Senior Toolpusher - in charge during the day
Company man - thinks he is God! In charge for the oil company and all the other jobs above are for the drilling contractor.

Drilling contractors own the rigs and Oil companies hire them for a fixed day rate and the Drilling contractor then operates the rig for the Oil Company.

Life in the oilfield...a sane persons view

Here we go,
I will try and provide an insight into the strange world of the oilfield, hopefully humerous, maybe cynical, but always honest!

The attached picture shows the finished article, then it goes to work with an incredibly competent, witty, and sometimes downright strange crew...:-)