Doug Nunn, Fraser Offshore

Douglas Nunn
Managing Director
Fraser Offshore Ltd
• Our company
• A journey into the future
• Innovations
• Call to arms
“We are professional well engineers. We design and
drill offshore oil and gas wells for oil company
clients”
E&P Company “wells” people
• Financiers
• Lawyers
• Asset
Managers
• Geologists
• Geophysicists
• Reservoir
Engineers
•
•
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Drilling Engineers
Drilling Supervisors
Logistics
Support
Fraser Offshore Ltd
• 2004:
5 employees
• 2013:
55 employees
• Our people are well engineers, drilling supervisors and
support technicians
• Provide specialist “rig teams” to oil and gas companies
• Acquired in September 2012 by Acona Group
• In 2013 we will spend ca. £180 million of our clients
money
Why need well engineers?

1880 – 1980

Vertical wells

Onshore

Shallow depths

No need for engineers
•
1980 onwards

Deviated wells

Horizontal wells

Offshore

Stimulated

Deeper

Bring on the engineers!
North Sea well costs
Rig
£100,000 / day
Services £85,000/day
Spread rate £200k / day
Tangibles £2mm per well
Entire well £20-40mm
Who’s on the rig?
Company Man x 1
Night Company Man x 1
Materials Coordinator x 1
OIM x 1
Toolpusher x 2
Driller x 2
Assistant Driller x 2
Derrickman x 2
Roughneck x 8
Crane Operator x 2
Asst Crane Op x 2
Roustabout x 6
Medic x 1
Radio Operator x 2
Mechanic x 2
Electrician x 2
Motorman x 4
Storeman x 1
Directional Driller x 2
MWD Technician x 2
Mud Engineer x 2
Cementer x 1
ROV Crew x 2
E-line x 6
Casing Hand x 4
Liner hanger tech x 2
Wellhead tech x 2
Platform Mtce x 6
Platform Production x 4
Total = 70-90
What if it goes wrong?
BP worth
£120 bn
BP worth
£74 bn
A Possible Future
•
Secretary of State for
energy and Climate Change
says:Global energy demand is twice as high as it was 30 years ago… it will grow
by over a third again by 2035
• By then, annual global usage will be equivalent to 17 billion tonnes of oil
• Looking out to 2035 and beyond, the vast majority of global demand will
continue to be met by fossil fuels
• Demand for other energy sources will rise – nuclear, bio-energy,
renewables - but even on the most generous predictions, those sources
will provide no more than a third of the worlds primary energy demand.
• Houston Tx
• Population: 2.1 million
• GDP (2010):- £260mm (of which oil and gas = £77 billion)
•
•
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•
Norfolk, Suffok, Cambridgeshire
Population: 2.2 million
GDP £40mm*
Oil & Gas “turnover in excess of £1.8bn”*
*ONS 2007
*eeegr
• 30 to 50% of Houston’s economy is energyrelated
• Houston has 68 companies with a market
capitalisation greater than $1 billion
• If Houston were an independent nation, it
would rank as the world's 30th largest
economy – about on par with Denmark
ConocoPhillips
Marathon Oil
Sysco
Enterprise Products Partners
Plains All American Pipeline
Halliburton
Baker Hughes
Waste Management, Inc
National Oilwell Varco
Apache Corporation
KBR
CenterPoint Energy
Kinder Morgan
Enbridge Energy Partners
Calpine
Cameron International
EOG Resources
Frontier Oil
Group 1 Automotive
Targa Resources
Spectra Energy
El Paso Energy
•
•
•
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Operations Base
Warehouse
Roughnecks
Welders
TEMPORARY
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•
•
•
•
•
Head Office
Prime movers
Tier 1 suppliers
Managers
“Professionals”
LONG TERM
Can East Anglia learn
from Houston?
• Houston was once an operational centre
• It is now an administrative centre
• Houston companies finance, manage and
administer energy-related business worldwide
• Attracts Tier 1, Tier 2 business
• Houston has no more oil and gas than East
Anglia
Have we got the right attitude?
8-lane I45 to
Galveston
2-lane A47 to
Gorleston
Do East Anglians have
“True Grit”?
Let’s go – we’re
burnin’ daylight..
Come on! Let’s be
‘aving you!.
Innovations Required
• Rigs that can move in more than 6 ft of wave
• 30m seabed core for less than £100,000
• Locally-sourced mechanical engineering grads
• Sensible planning:- It is not evil to provide car parking spaces for new
offices
• Teach our workforce to understand our regulatory system - stop being riskaverse for the wrong risks
• More future-mapping by trade associations
Call to Arms
• Capitalise on your position in England’s Energy
Region
• Cowboy spirit – tempered with Norfolk
wisdom
Horatio, Lord Nelson 1758-1805