WorldwideMerrick Systems Readies Downhole RFID System
HOUSTON,TX (January 19, 2006) – Merrick Systems is preparing to launch the industry’s first complete system to track and manage the components used in surface and downhole drilling operations.
The system, known as Rig-Hand™, uses tags based on Radio-Frequency Identification technology, or RFID, which are affixed to individual components used for drilling, workover and completion operations.
The tags, which are capable of transferring data via a low-level radio signal to nearby reading devices, can be installed on components at the manufacturer, or retrofitted to existing components in the field when they are inspected. Once the tags have been mounted, the Rig-Hand system uses rugged scanning tools to read them and feed relevant data to the system’s software – which then analyzes the data, providing operations personnel with instant knowledge about the equipment.
“The secret to the system lies in the right combination of tags, software, and hardware,” said Ian Binmore, director of drilling products at Merrick Systems. “Rig-Hand tags are developed specifically for the extreme conditions encountered during drilling operations. They have no moving parts or energy-storage components and are extremely durable.”
The tags themselves are quite small, ranging from about the size of a small button to about the size of a bottle cap. They can be mechanically mounted, epoxied, or screwed into components – depending on criteria such as available wall thickness, component diameter and the intended use or re-use of the component.
Binmore points out that since drill-string components can be tagged at the factory, Rig-Hand makes it possible for the user to track them from the “cradle to the grave,” opening the door for the economical management of components throughout their life cycle. “In essence,” he said, “Rig Hand gives you the ability to know what, where and how each and every component you rely on was manufactured, inspected and used. With this information, users can reduce risk while maximizing the component’s use and life.”
A major oil company is preparing to launch a pilot project using Merrick’s Rig-Hand system in March and expects to see tremendous benefits -- most notably improvements in drill-string efficiency and personnel safety, while reducing operational incidents that cause fishing jobs or expensive operational delays.
“Rig-hand offers dramatic benefits when you consider the fact that drill-pipe fatigue has been credited for 14 percent of drill string failures in published SPE studies, and is of huge concern to deepwater and extended-reach drilling operations,” said Binmore.
According to Merrick, real-time knowledge of drill string stresses and strains will provide a significant reduction in catastrophic failure of equipment like drill pipe, casing, production tubing, gas-lift valves, etc. The level of detail provided by the tags will improve understanding of the limitations of downhole components and will help operators better manage the risks of using a drill string close to its safe design limits.
Binmore expects the system to offer many additional benefits as it progresses, including the easy integration of RFID data with other real-time operations information, as well as improved drill-string inspection processes and more efficient procurement and inventory management.
Kemal Farid, Merrick’s CEO, echoes this emphasis on long-term ROI. “We are hoping that one of the biggest impacts of Rig-Hand will be to shift perceptions of what can be done with component management in operations and procurement; users will be able to make decisions based on knowledge, not assumptions.”
According to Merrick, Rig-Hand presents cost savings to both operations and back office activities — offering an average savings of $1.5 million per-rig, per-year for offshore operations. What’s more, Rig-Hand could increase the resale value of pipe and other components by providing accurate identification, history and full traceability of industry equipment.
About Merrick Systems
Merrick Systems produces sophisticated data-driven software that helps the upstream oil and gas industry exploit assets. The company offers a variety of products to meet the oil and gas industry’s full range of operational needs, from field-data capture and hydrocarbon accounting to regulatory compliance and business intelligence. Merrick is headquartered in Houston with offices in Lafayette, La., and Calgary, Canada. Visit www.MerrickSystems.com.
