Alcoa makes push for lighter drill pipe

Alcoa’s oil and gas division, based in Texas, was founded in the mid-2000s and initially focused on components for deep-water drilling. After 2011, the company started marketing aluminum drill pipe, mostly to an international market.The oil and gas unit is part of a company-wide effort to move away from being a commodity-driven company to become more of an engineering and full-service organization.It’s only recently that Alcoa’s oil and gas focus has turned domestic.In North America, Alcoa has found some takers in the Marcellus and Utica shales, according to Tim Marvel, managing director of its oil and gas division.Eclipse Resources, for example, tested aluminum pipe on some of its Utica wells hoping to avoid getting a bigger, more expensive rig to pull the weight of a long steel drill string. Supplementing steel pipe with aluminum, the company’s driller was able to go deeper than the 6,000 foot limitation of the rig had it been operating with just steel, saving the operator $150,000, according to an Alcoa case study.Alcoa is looking for aluminum drill pipe to be incorporated alongside steel, not to replace it. “Just substituting where you need to,” Mr. Marvel said.This isn’t a new application.Mark Stebbins, district operations superintendent for gas with Consol Energy Inc., recalled using aluminum drill pipe for years when he was with Dominion, which had its shale gas assets purchased by Consol in 2010. Back then, they were drilling shallow, vertical gas wells.“The advantage is [that] the same rig can drill a deeper depth with the same weight. All you’re doing is switching the drill pipe,” he said.

via Pennsylvania inspectors key to Marcellus regulation.

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