Industry Code: 09600
Oil well drilling is performed by independent drilling companies contracted directly to oil companies. Oil companies will coordinate the drilling program and may provide on site direction and supervision, but do not become physically involved in operating the drilling rig.
Operation Details:
The drilling of gas and oil wells is carried out by a small crew, including a rig manager (tool push), driller, derrickhand, motorhand, floorhands (roughneck) and leasehands. Drilling can be round-the-clock operations using shift workers.
The drilling of gas and oil wells involves the use of large heavy duty rigs or derricks that may be capable of drilling several thousand feet into the earth. The equipment is set up at a predetermined location and drilling commences for two to four weeks. Considerable time is spent setting up the equipment; however, this is considered part of the drilling operations.
Also included is the activity of leveling the drilling rig. This involves the use of heavy hydraulic jacks (50 to 100 ton) to raise or lower an oil derrick prior to drilling. Heavy timbers are used to stabilize where necessary. Due to the tremendous torque or twisting pressure exerted by the drill stem, it is necessary that the rig be level.
When the drilling is completed, the rig and its components are dismantled by the rig crew. The rig is transported to its next destination by a rig mover (in industry 50720, Oilfield Hauling Services).
Blowout control and well fire fighting are also in this industry. The procedure necessary to cap a wildcat well varies. Sometimes a blowout can be brought under control by pumping mud or cement to stop the flow, or replacing valves on the blowout preventer. If a well catches fire, the fire must be extinguished before the well can be capped. A common method is to use explosives to cut off the fire's oxygen supply. Employers that are hired to set explosives for this purpose are covered in this industry. (It will be necessary to ensure the explosives experts are Canadians - many explosive experts come from the U.S.).
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Drilling supervision, when conducted under direct contract to an oil company, is included in industry 06300.
Service rigs follow a drilling rig and focus on completing, cleaning and servicing the well. Such activities are classified under industry 09903, Well Servicing with Service Rigs.
Drilling of oil and gas wells requires a host of specialized services, which when provided by independent contractors, are classified in the appropriate service industry, eg., drilling companies may rent equipment or tools to conduct underbalanced or directional drilling; the companies which supply the equipment may provide an operator for the rented equipment and would be classified in industry 09911, Oilfield Services.
Premium Rate History:
Activities:
Banding of Pipe at Drilling Sites
Blow Out Control Services, Oil and Gas
Drilling of Oil and Gas Wells
Drilling Rigs, Levelling of Oil and Gas Well
Gas Wells, Drilling
Levelling of Oil and Gas Well Drilling Rigs
Oil and Gas Well Blowout Control, Incl Fire Fighting
Oil and Gas Well Drilling Rigs - Levelling
Oil and Gas Wells - Drilling
Rate Group History:
The oil industry in general was reviewed in 1991. As a result of this review, the operation of drilling rigs was identified as a separate industry from service rigs (with no crossover of activities) and consequently remained in separate rate groups.
Oil well drilling is performed by independent drilling companies contracted directly to oil companies. Oil companies will coordinate the drilling program and may provide on site direction and supervision, but do not become physically involved in operating the drilling rig.
Premium Rate History:
Activities:
Banding of Pipe at Drilling Sites
Blow Out Control Services, Oil and Gas
Drilling of Oil and Gas Wells
Drilling Rigs, Levelling of Oil and Gas Well
Gas Wells, Drilling
Levelling of Oil and Gas Well Drilling Rigs
Oil and Gas Well Blowout Control, Incl Fire Fighting
Oil and Gas Well Drilling Rigs - Levelling
Oil and Gas Wells - Drilling
Operation Details:
The drilling of gas and oil wells is carried out by a small crew, including a rig manager (tool push), driller, derrickhand, motorhand, floorhands (roughneck) and leasehands. Drilling can be round-the-clock operations using shift workers.
The drilling of gas and oil wells involves the use of large heavy duty rigs or derricks that may be capable of drilling several thousand feet into the earth. The equipment is set up at a predetermined location and drilling commences for two to four weeks. Considerable time is spent setting up the equipment; however, this is considered part of the drilling operations.
Also included is the activity of leveling the drilling rig. This involves the use of heavy hydraulic jacks (50 to 100 ton) to raise or lower an oil derrick prior to drilling. Heavy timbers are used to stabilize where necessary. Due to the tremendous torque or twisting pressure exerted by the drill stem, it is necessary that the rig be level.
When the drilling is completed, the rig and its components are dismantled by the rig crew. The rig is transported to its next destination by a rig mover (in industry 50720, Oilfield Hauling Services).
Blowout control and well fire fighting are also in this industry. The procedure necessary to cap a wildcat well varies. Sometimes a blowout can be brought under control by pumping mud or cement to stop the flow, or replacing valves on the blowout preventer. If a well catches fire, the fire must be extinguished before the well can be capped. A common method is to use explosives to cut off the fire's oxygen supply. Employers that are hired to set explosives for this purpose are covered in this industry. (It will be necessary to ensure the explosives experts are Canadians - many explosive experts come from the U.S.).
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Drilling supervision, when conducted under direct contract to an oil company, is included in industry 06300.
Service rigs follow a drilling rig and focus on completing, cleaning and servicing the well. Such activities are classified under industry 09903, Well Servicing with Service Rigs.
Drilling of oil and gas wells requires a host of specialized services, which when provided by independent contractors, are classified in the appropriate service industry, eg., drilling companies may rent equipment or tools to conduct underbalanced or directional drilling; the companies which supply the equipment may provide an operator for the rented equipment and would be classified in industry 09911, Oilfield Services.
Rate Group History:
The oil industry in general was reviewed in 1991. As a result of this review, the operation of drilling rigs was identified as a separate industry from service rigs (with no crossover of activities) and consequently remained in separate rate groups.