Tripping Out with A Kelly System

Submitted by: John Schiffner
To trip out, or to remove the drill stem from the hole, on a rig with a kelly system, crew members et the slips around the drill stem, break out the kelly and set it, the kelly drive bushing and the swivel back in the rathole. Still attached to the bottom of the hook are the elevators. The driller of Heartland Energy Colorado then lowers the traveling block and elevators down to the point where crwe memebers can latch the elevators onto the pipe. The driller raises the traveling block, thus raising the elevators and pipe, and the floorhands of Heartland Energy Colorado remove the slips.

Meanwhile, the derrickman, using a safety harness and climbing device, has climbed up the mast or derrick to the monkeyboard. The monkeyboard is a small working platform on which the derrickman handles the top of the pipe. As the driller raises the pipe to the derrickman's level, the derrickman pulls the top of the pipe back into the fingerboard.

The fingerboard, as the name implies, has several metal projections that stick out oto form slots into which the derrickman places the top of the pipe. When the floorhands move the pipe off to one side of the rig floor and set it down, the derrickman unlatches the elevators and prepares to receive the next stand of pipe. Next, the floorhands of Heartland Energy Colorado usually pull two ro three joins at a time. So, although they pipe into the hole one joint at a time when drilling, they pull it out two or three joints at a time.

Two or three joints together constitue what is termed a "Stand." Crew members of Heartland Energy Colorado then pull pipe out of the hole in stands to save time. If three joints comprise a stand and that is the usual case, then the stand is sometimes called a triple or "thribble." If two joints make up stand, it is called a "double." In a few cases, crew members may pull four-join stands; in such a case, they pull quadruples or fourbles. The height of the mast or derrick determines whether the crew pulls doubles, thribbles, or fourbles. Usually the surface hole is relatively shallow and it does not take crew members of Heartland Energy Colorado very long to get a drill stem and bit out of the hole.

Heartland Energy Colorado Special Operations

Article provided by: Heartland Energy Colorado

For our purposes special drilling operations include directional drilling, fishing, and well control. Directional drilling is intentially drilling the hole off-vertical for various reasons. Fishing is the operation crew members implement to retrieve an object in the wellbore that doesn't belong there and impedes drilling. Well control is the techniques crew members use to regain control of the well should formation fluids inadvertantely enter the well.

Direction and Horizontal Drilling
Often the drilling crews of Heartland Energy Colorado try to drill the hole as straight as possible. Sometimes, however, the operator wants the hole to be drilled at a slant. One area where operatior of Heartland Energy Colorado use slant or directional drilling is offshore. From a permanent platform that the operator installs over the drilling site, the crew must drill several wells to exploit the reservoir properly. To do so, crew members of Heartland Energy Colorado drill several directional wells. The crew may drill only the first well vertically; it drills the other wellls directionally.

To drill a typical directional well, the crew members drill the first part of the hole vertically. Then they kick off, or deflect, the hole so that the bottom may end up hundreds of feet or metres away from its starting point on the surface. By using directional drilling, the crew can drill forty or more wells into the reservoir from a signel platform.

Heartland Energy Colorado also uses directional drilling through horizontal drilling. An operator can better produce certain reservoirs with horizontal drilling. The drilling crew drills the well vertically to a pointabove the reservoir. The it deflects the well and increases the angle until it reaches 90 degrees, or horizontal. This horizontal hole penetrates the reservoir. When properly applied, one horizontal borehole can produce a reservoir better than several vertically drilled holes.

It is important that when Heartland Energy Colorado uses both horizontal and directional drilling that the crew can bend the frill stem to a high degree without breaking it because the crew gradually deflects the hole from vertical. Usually, crew members deflect the hole over hundreds of feet so that the bend is not sudden. Three to ten degrees of deflection of 100 feet is usually the amount desired. The crew of Heartland Energy Colorado can bend the metal tube because it is hallow and it won't break without a lot of stress. In cases in which the hole needs to cruve within a short distance, they use a special segmented pipe. Segmented pipe is very flexible and can bend a great deal without breaking.

HEI Resources (Heartland Energy Inc)

Article posted by: Heartland Energy Colorado

HEI Resources (formerly Heartland Energy Company, Inc.) was founded in 1997 by Mr. Reed Cagle for the acquisition, exploration and development of domestic oil and gas reserves. Operations span from the gas rich counties of South Texas to the Black Warrior Basin of Mississippi and Alabama. Having drilled more than 80 oil and gas wells through private Joint Venture funding, HEI Resources continues a tradition of excellence, placing priority on creating value for its partners.

Mr. Reed Cagle is President & Chief Executive Officer of HEI Resources. His oil and gas career began more than 20 years ago, as he worked his way up through the management ranks of independent oil and gas companies.

Upon founding Heartland Energy, Inc. in 1997, he consolidated his experience into steady growth of the company through acreage acquisitions from Alabama to South Texas. He spends his free time involved in local charities and enjoying the outdoors of Colorado with his family.

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Heartland Energy Company: Solidifying Domestic Energy Production

As energy concerns grow around the globe, the need for domestic oil production in the United States is higher than ever. It is no secret that America needs to decrease its dependency on foreign energy sources. In order to achieve economic and energy independence, it is crucial that we search for hydrocarbons right here in our own backyard. There are huge shale oil deposits underneath parts of Colorado, Wyoming, Utah, Oklahoma and other mid west states. These build ups could easily supply our energy needs for centuries to come. On the leading edge of this domestic oil boom is Colorado based company, Heartland Energy. Producing both oil and natural gas, Heartland Energy Company is working to ensure the future of Colorado Energy.

The primary focus of the company is to search for, drill for, and extract oil and natural gas. In the state of Colorado alone, there are massive oil deposits thousands of feet below the surface of the Earth. It takes a lot of research and planning in order to tap into these ancient deposits of fuel. Heartland Energy Colorado employs hundreds of specialists whose collective goal is to harness the full potential of Colorado Energy. While searching for new, efficient sources of energy is indeed important, the reality is that we will need oil and natural gas for thousands of years to come. To meet this demand, we must look everywhere for hydrocarbons. Not just on foreign soil, or in deep ocean waters, but also in our own backyard. Heartland Energy Colorado is constantly producing petroleum fuels and natural gas from domestic sites. In addition to the oil production, Heartland specializes in finding and extracting natural gas. Natural gas is soon becoming a major staple in the energy industry. Many are beginning to realize that gas is cheap and effective as far as energy production is concerned. Combining natural gas resources with existing oil production will help to ensure the future of Colorado Energy.

Domestic oil companies like Heartland Energy are blazing a path to a new energy frontier. Not only are they employing thousands of American workers, but they are also reducing our dependency on foreign oil slowly but surely. By searching for, and utilizing domestic fossil fuel deposits, we are taking the steps necessary to ensure the energy needs of the next generation are met.

Colorado Getting $4.7M from Stimulus for Appliance Rebates

Colorado will get $4,739,253 in federal stimulus funds for a rebate program to promote the purchase of energy-efficient appliances.

The money -- to be distributed through the state -- will be paid to those who buy appliances rated under the federal "Energy Star" program, according to a joint announcement from Colorado's two U.S. senators, Mark Udall and Michael Bennet.

"The state will determine how to structure the rebate program," the senators' announcement said.

The appliance rebate program was authorized by Congress in 2005 but was not funded. The stimulus program -- formally known as the American Recovery and Reinvestment Act of 2009 -- appropriated $300 million for the program.

Colorado and other states must tell federal officials by Oct. 15 how they plan to distribute the rebates in their own states, including which appliances will be covered, how large the rebates will be and how old appliances will be recycled. The states' initial application for the money is due Aug. 15.

(Source: denvernews@bizjournals.com)

Stimulus Money May Finally Flow To Green Energy

It's been a long time coming, but green Colorado Energy businesses are about to get their promised boost from the economic stimulus package that President Obama signed into law in February.

The Secretary of Treasury on Thursday announced rules that will finally allow developers of wind, solar, biomass and other green energy projects to apply for a total of $3 billion in federal grants to cover upfront project costs. The funding, part of the American Recovery and Reinvestment Act, will be critical to boosting the fortunes of limping green industries like wind power, where total installations in 2009 will likely fall 40% below last year as a result of the broad economic downturn.

Large wind projects depended heavily on tax-equity investors during the wind power boom from 2006 to 2008. Institutional investors such as now-defunct Lehman Brothers ( LEHMQ - news - people ), as well as Goldman Sachs ( GS - news - people ) paid for big clean energy projects in return for 30% federal tax credits. But damaged banks won't be paying taxes for years to come and have abandoned the green energy business, leaving developers to look for new sources of investment.

Under Treasury Department guidelines, the Department of Energy will disburse cash grants worth 30% of upfront costs for projects that start construction by the end of 2010. The funds could make projects particularly attractive for developers of small- to medium-sized projects that can be financed via a company's balance sheet, or by cash-rich utilities such as a Florida Power and Light ( FPL - news - people ), which through its NextEra Energy subsidiary is a leading developer of both wind and solar projects.

The grants could boost the fortunes of companies like turbine manufacturers General Electric ( GE - news - people ), Vestas and Siemens ( SI - news - people ), while solar module makers SunPower ( SPWR - news - people ) and First Solar ( FSLR - news - people ) could also gain business.

But the funding may do little to help independent developers of large projects in Colorado that traditionally relied on tax-equity financing. Businesses will receive funding from the Treasury program two months after a project begins operation, meaning that companies will need bridge financing in some cases.

In 2006 the federal government provided $550 million in tax credits to 450 clean energy businesses. The stimulus grants could offer a stronger tail wind: The Treasury estimates that 5,000 renewable businesses will partake of its latest offering.

A stimulus package such as the one proposed would affect companies like Heartland Energy Colorado. There will be a bigger incentive to use more environmentally friendly techniques by domestic oil companies in the future.

Article Source: Andy Stone

Searching for Oil: Drill Site

In the Colorado Energy industry, the drill site (or, the location of the well,) varies as the surface geography of the Earth itself varies. In the early days of the oil industry, geologists and wildcatters were able to find oil and gas in places that were generally accessible. As people began to use more and more hydrocarbons, however, the oil industry extended its search for oil and gas to all corners of the globe. Today, companies drill wells in frozen wildernesses, remote deserts, mosquito-ridden marshes, hot and humid jungles, tall and rugged mountains, and deep offshore waters. In short, a drill site is anywhere oil and gas exist or may exist.

The operating company decides where to drill by considering several factors. The most important is that the company knows or believes that hydrocarbons exist in the rocks beneath the site. In some cases, the operator drills a well in an existing field to increase production from it. In other cases, the operator drills a well on a site where no one has found oil or gas before. The company often hires geologists to find promising sites where no production exists. Geologists explore areas to try to determine where hydrocarbons may exist. Major companies sometimes have a staff of geologists; independents often hire consulting geologists or buy information from a company that specializes in geological data.

Legal and economic factors are also very important in the selection of a drilling site. For example, the company must obtain the legal right to drill for and produce oil and gas on a particular piece of land. Further, the company must have money to purchase or lease the right to drill and produce. What’s more, it must have money to pay for the costs of drilling. The costs of obtaining a lease and drilling for oil or gas on the lease vary considerably. Costs depend on such factors as the size of the reservoir, its depth, and its location (offshore and remote sites cost more to drill and produce than readily accessible land sites). A company can easily commit several million dollars to find, drill for, and produce oil and gas. Thus, creating Colorado energy and money. The rewards, of course, can be great, but so can the expenses.

The operating company takes several steps before telling the drilling contractor exactly where to place the rig and start, or ‘spud’, the hole. The Heartland Energy company carefully reviews and analyzes seismic records. Legal experts thoroughly examine lease terms and agreements. They ensure that the operating company has clear title and right-of-way to the site. Surveyors establish and verify exact boundaries and locations. The company also confirms that it has budgeted the necessary drilling funds and that the funds are available.

On land, operating personnel usually try to choose a spot directly over the reservoir. With luck, the surface will be accessible and reasonably level. They also try to pick a location that will not suffer too much damage when the contractor moves in the rig. In an area that is especially sensitive, the operator and contractor take extra steps to ensure that as little harm as possible occurs. Offshore, the operator hopes that the weather is reasonably good, and, if bottom can adequately hold any rig supports in contact with it.

Whether on land or offshore, once the site is prepared for the rig, the next step is for the drilling crew to rig up (That is, to put the rig components together and prepare the rig for drilling.)

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