Elenburg Exploration

Source: Energy Digital

Date :21/11/2007 09:26:14

Creating a culture of safety

General Manager Bert Huntington has worked for Elenburg Exploration for 25 years. He tells Exec UK that the industry has not only become more professional, but ?also safer

Written by Lucy Mowatt and Produced by Nick Ledue

Established in Texas in 1966, the company based in Casper, Wyoming has seen many changes in the oil rig business and the way it operates. It was acquired by CapStar, part of the large Oil States International group, in February 2005. As such, Elenburg Exploration has gained access to new resources and an established customer base, resulting in expansion and success.

“The acquisition by CapStar Drilling has had a good impact on us,” Bert Huntington says. “We’re able to access more resources and it’s been generally beneficial.” Elenburg Exploration had worked with CapStar Drilling in the past, because the company produced the same style top-drive rigs as Elenburg Exploration. Mr Huntington, who has been General Manager for seven months, explains that CapStar actually constructed three new rigs for Elenburg Exploration, bringing the companies closer together.

Elenburg currently has ten rigs operating in Montana, Wyoming, South Dakota, Colorado and Utah, while running three equipment yards in Montana. “In the future,” Huntington explains, “we are hoping to expand year after year with Oilstates’ board approval.” The next generation rig is the 750 Super Single, two of which are already under construction in CapStar Drilling’s yard.

Employment benefits

In order to run these operations efficiently, the company employs 190 people, with crews of between three and four men on a rig at any one time. This is very different to other drilling contractors, which employ five man or more crews.

The reason behind this, Mr Huntington asserts, is the technology on board its rigs. Other drilling companies are only just beginning to use top-drive rigs, which Elenburg has been using for the past 40 years. Huntington explains that these rigs are smaller, cause less environmental disturbance and can rig down and rig back up again quickly. This ultimately results in increased efficiency and reduced staffing costs.

Not only that, Elenburg Exploration has also begun implementing ‘hands-free’ technology on its rigs. “This makes the rigs very safe. Tripping pipe is one of the most dangerous operations to perform on an oil rig; with hands-free technology our employees never touch the drill pipe or collars because the top-drive does a lot of that work. This semi-automated aero-hydraulic system means that processes are less dangerous and the crew is smaller.”

Elenburg is a small company that has expanded smoothly over the past two years, from 75 employees to 190. Bert Huntington explains that there are a number of larger companies in Wyoming, which have suffered from staffing problems: “In the last few years, large contractors have struggled to retain employees or get experienced recruits. Many companies were set up quickly and employed whoever they could.”

The company also offers a training program for its new employees, to ensure that they are qualified to work on rigs safely and effectively. It also sends drillers to a Well Control Course, which encourages best practice and motivates career development.

Bert Huntington asserts that: “Although it is a cliché – without our people, we wouldn’t be doing anything, which is why retaining them is important.” He explains that the company offers a competitive wage, as well as a good insurance and retirement package.

“We also offer a good days-off schedule. This is where crews either work one week on, one week off, or two weeks on and two weeks off. When I started working here we didn’t know what time-off was, but nowadays it is very important.” He also highlights that crews return to the rigs refreshed and ready to work, which is an important safety issue.

Culture of safety

Safety is imperative to Elenburg Exploration. From the outset Bert Huntington states that health and safety is an everyday issue, which is adhered to in accordance with its safety manual. This is to the level of conducting regular drug and alcohol tests that ensure members of staff are performing to the best of their ability and are not a danger to other employees. He says, “We are a lot less tolerant of alcohol and drugs than we were 25 years ago. We carry out a pre-employment test, random tests, as well as post-accident tests.

“We are working to create a culture of safety on our rigs, which is why we have installed behavior based safety programs. We are instilling safety in our people as an attitude and a way of life. When you do that, it starts at the manager and goes all the way down, where everyone is looking out for one another and everyone is aware of what they need to do to work safely.” The company also carries out inspections every time a rig is moved, which is a part of their safety policy.

The number of accidents which occur at Elenburg Exploration is also below the national average. The company’s TRIR (Total Reportable Incident Rate) figure is only 3.93 percent, while the industry average is much higher, which goes to prove that Elenburg’s approach to health and safety is working. This figure has also reduced every year for the past five years.

The Future

The company has recently signed a two year contract in Vernal, Utah, with EOG Resources, a global oil company. This follows a successful two year project which has just been completed for Conoco-Phillips. Bert Huntington believes that this success will lead to future contracts: “If you can work for Conoco-Phillips you can work for anyone. They have very high standards regarding safety and performance, which is recognized by the industry.”

When asked about Elenburg Exploration’s view on environmental concerns, Mr Huntington explains: “Our rigs have a very small footprint compared to other rigs drilling to the same depth, which means less impact. This is because the company is aware of growing concerns about environmental damage. The company has its own Health, Safety and Environment Director to oversee these issues. The General Manager states: “That’s where the future lies and we will continue to stay focused on it. Oil companies are spending huge amounts of money on environment issues too.”

For the future, Elenburg does not have investment plans beyond acquiring new rigs. Its main plan, Mr Huntington believes, is to continue to perform as well as it can, staying focused on continuous improvement and safety on a daily basis. He says, “The types of rigs that we’re building are the future and I think oil companies are looking for innovation and new ideas regarding environment, safety and efficiency.”

This continuous improvement has also resulted in an increase in revenue. The figure for 2006 was about $35 million, and revenue for 2007 is expected to be $40 million.