Industry Code: 09911
This industry covers a wide spectrum of oilfield downhole services related to well completion, stimulation, testing and wireline services. This industry does not cover well servicing operations with the use of well servicing rigs.
Employers in this industry usually offer a multitude of the above services to their clients with a variety of equipment, down hole tools and truck mounted units. Such companies often operate interprovincially and internationally.
Operation Details:
Services in this industry can include:
Directional drilling services involve only the supplying of equipment and specialized supervision to the oil company, not the physical drilling. This work is done during the drilling process, with the physical work or actual drilling done by the drilling rig crew. The companies performing the drilling are classified in industry 09600, Drilling of oil and gas wells.
Wireline services involve lowering special instruments into the well for testing purposes. A wireline may also be used to pull instruments or scrape debris out of the well.
Oil and gas well perforating involves lowering an explosive device into the well on a wire line. When the required depth is reached, the device is detonated by an electrical current. The explosive perforates the well casing, allowing the flow of oil at different levels.
Well testing activities include testing production levels. Production testing is performed by compressor equipment, usually truck mounted, which introduces water, air, or nitrogen into the line under high pressure and records information on pressure instruments. A separator may also be employed to test the flow or proportion of gas/oil and water in the flow.
Smaller hand held recording instruments may also be used for testing purposes. Dynamometers are a surface instrument used to test downhole pumps and pump jack performance. Echometers are a downhole instrument used to log fluid levels and requires the discharge of blank shells to generate shock waves which are recorded.
After a shot hole has been drilled, the hole is usually never used again and must be closed for environmental reasons. Shot hole cementers place a plug part way down the hole, then fill the hole with cement from the plug to the surface. Cementing also involves pumping cement downhole to secure the well casing.
Fracturing is the process of forcing, under high pressure, a mud-sand slurry with CO2 or nitrogen to expand or fracture the formation, allowing the oil or gas to escape up the well.
Chemical treatments involve forcing/injecting stimulation fluids into the well casing to clear contaminants, remove paraffin and hydrates for well stimulation. Endless, continuous or coiled tubing units which run small diameter flexible steel tubing into the well are used to inject nitrogen, foams, solvents or other chemicals. Coiled tubing may also be used in other applications such as cementing, underbalanced drilling and perforating.
Swabbing is an operation that temporarily lowers the fluid level in the well so that it can begin to produce. Swabbing is used in well completions and well control. Swabbing is sometimes necessary on well completions, if the well does not flow after perforating. The purpose of this operation is to swab, or lift, enough fluid out of the tubing so that the hydrostatic pressure is reduced to a value below that of the formation pressure. If the swabbing is successful, formation fluids will start flowing immediately. Swabbing done for well control may be required when high formation pressure is encountered while drilling. Formation fluids can be swabbed, or pulled, into the hole by the piston like action of the bit as pipe is 'tripped out' (pulling the drill stem and bit out to the hole in order to run casing, change bits, or perform some other operation in the bore hole) of the hole, or the mud level in the hole can fall so that the hole is not longer full of mud. When hydrostatic pressure falls below formation pressure, crew members have a 'kick' on their hands and they must take quick and proper action to prevent the 'kick' from becoming a blowout.
Underbalanced drilling is a process where lighter fluids are used to lubricate the drilling bit and drill stem using gasified drilling fluids to keep hydrostatic head pressure lower than the pressure being drilled. This reduces the cost and reduces the need for well stimulation in completing the well. Companies which provide the equipment, to oil and gas well drilling companies, for underbalanced drilling may also provide an operator for the equipment being rented but are not involved in the operation of the drilling rig.
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:
Downhole servicing companies often have extensive shop operations including machining and welding to service, repair or even manufacture downhole tools and specialized servicing equipment and vehicles. Such operations, when conducted predominantly in support of a company's own downhole services, do not require an additional industry.
Premium Rate History:
Activities:
Cementing of Oil and Gas Wells
Cementing Shot Holes
Chemical Treatment of Oil and Gas Wells
Coiled Tubing Services - Downhole
Coring and Testing Oil and Gas Wells
Directional Drilling equipment, rental of
Downhole Fishing Services
Downhole Services, oil and gas
Fishing Services - Oil and Gas Well
Fracturing of Oil and Gas Wells
Gas and Oil Wells - Wireline Operations
Logging and Perforating Services - Gas and Oil Wells
Swabbing Services - Oilfield
Testing and Coring Oil and Gas Wells
Wire Line Operations, Gas and Oil Wells
Production Testing (oilfield)
Underbalanced Drilling Equipment, Rental of
Oil and Gas Well Directional Drilling Service
Oil and Gas Well Wireline Operation, Fishing Service
Oil and Gas Well, Testing and Coring
Oilfield Downhole Fishing Services
Oilfield Downhole Service
Perforating and Logging Services (Oil and Gas Wells)
Shot Hole Cementing
Rate Group History:
As part of the 1991 review of the petroleum industry; directional drilling, wireline/downhole services, oil well testing and perforating all were consolidated into this one industry effective 1992, to recognize that most servicing companies offered a variety of services, eliminating the need for additional industries.
This industry covers a wide spectrum of oilfield downhole services related to well completion, stimulation, testing and wireline services. This industry does not cover well servicing operations with the use of well servicing rigs.
Employers in this industry usually offer a multitude of the above services to their clients with a variety of equipment, down hole tools and truck mounted units. Such companies often operate interprovincially and internationally.
Premium Rate History:
Activities:
Cementing of Oil and Gas Wells
Cementing Shot Holes
Chemical Treatment of Oil and Gas Wells
Coiled Tubing Services - Downhole
Coring and Testing Oil and Gas Wells
Directional Drilling equipment, rental of
Downhole Fishing Services
Downhole Services, oil and gas
Fishing Services - Oil and Gas Well
Fracturing of Oil and Gas Wells
Gas and Oil Wells - Wireline Operations
Logging and Perforating Services - Gas and Oil Wells
Swabbing Services - Oilfield
Testing and Coring Oil and Gas Wells
Wire Line Operations, Gas and Oil Wells
Production Testing (oilfield)
Underbalanced Drilling Equipment, Rental of
Oil and Gas Well Directional Drilling Service
Oil and Gas Well Wireline Operation, Fishing Service
Oil and Gas Well, Testing and Coring
Oilfield Downhole Fishing Services
Oilfield Downhole Service
Perforating and Logging Services (Oil and Gas Wells)
Shot Hole Cementing
Operation Details:
Services in this industry can include:
Directional drilling services involve only the supplying of equipment and specialized supervision to the oil company, not the physical drilling. This work is done during the drilling process, with the physical work or actual drilling done by the drilling rig crew. The companies performing the drilling are classified in industry 09600, Drilling of oil and gas wells.
Wireline services involve lowering special instruments into the well for testing purposes. A wireline may also be used to pull instruments or scrape debris out of the well.
Oil and gas well perforating involves lowering an explosive device into the well on a wire line. When the required depth is reached, the device is detonated by an electrical current. The explosive perforates the well casing, allowing the flow of oil at different levels.
Well testing activities include testing production levels. Production testing is performed by compressor equipment, usually truck mounted, which introduces water, air, or nitrogen into the line under high pressure and records information on pressure instruments. A separator may also be employed to test the flow or proportion of gas/oil and water in the flow.
Smaller hand held recording instruments may also be used for testing purposes. Dynamometers are a surface instrument used to test downhole pumps and pump jack performance. Echometers are a downhole instrument used to log fluid levels and requires the discharge of blank shells to generate shock waves which are recorded.
After a shot hole has been drilled, the hole is usually never used again and must be closed for environmental reasons. Shot hole cementers place a plug part way down the hole, then fill the hole with cement from the plug to the surface. Cementing also involves pumping cement downhole to secure the well casing.
Fracturing is the process of forcing, under high pressure, a mud-sand slurry with CO2 or nitrogen to expand or fracture the formation, allowing the oil or gas to escape up the well.
Chemical treatments involve forcing/injecting stimulation fluids into the well casing to clear contaminants, remove paraffin and hydrates for well stimulation. Endless, continuous or coiled tubing units which run small diameter flexible steel tubing into the well are used to inject nitrogen, foams, solvents or other chemicals. Coiled tubing may also be used in other applications such as cementing, underbalanced drilling and perforating.
Swabbing is an operation that temporarily lowers the fluid level in the well so that it can begin to produce. Swabbing is used in well completions and well control. Swabbing is sometimes necessary on well completions, if the well does not flow after perforating. The purpose of this operation is to swab, or lift, enough fluid out of the tubing so that the hydrostatic pressure is reduced to a value below that of the formation pressure. If the swabbing is successful, formation fluids will start flowing immediately. Swabbing done for well control may be required when high formation pressure is encountered while drilling. Formation fluids can be swabbed, or pulled, into the hole by the piston like action of the bit as pipe is 'tripped out' (pulling the drill stem and bit out to the hole in order to run casing, change bits, or perform some other operation in the bore hole) of the hole, or the mud level in the hole can fall so that the hole is not longer full of mud. When hydrostatic pressure falls below formation pressure, crew members have a 'kick' on their hands and they must take quick and proper action to prevent the 'kick' from becoming a blowout.
Underbalanced drilling is a process where lighter fluids are used to lubricate the drilling bit and drill stem using gasified drilling fluids to keep hydrostatic head pressure lower than the pressure being drilled. This reduces the cost and reduces the need for well stimulation in completing the well. Companies which provide the equipment, to oil and gas well drilling companies, for underbalanced drilling may also provide an operator for the equipment being rented but are not involved in the operation of the drilling rig.
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:
Downhole servicing companies often have extensive shop operations including machining and welding to service, repair or even manufacture downhole tools and specialized servicing equipment and vehicles. Such operations, when conducted predominantly in support of a company's own downhole services, do not require an additional industry.
Rate Group History:
As part of the 1991 review of the petroleum industry; directional drilling, wireline/downhole services, oil well testing and perforating all were consolidated into this one industry effective 1992, to recognize that most servicing companies offered a variety of services, eliminating the need for additional industries.