Business Spotlight

Home   >   Business Spotlight   

Transporting oil and gas drilling rigs is a tough business in an unpredictable market

Rig Lynx
  • By Rig Lynx
  • Nov 19, 2019
  • Category : Business Spotlight
  • Views : 2275

Moving oil rigs and oil-drilling equipment is not for the faint of heart.

Every niche industry presents unique supply chain challenges, but oil rig transporters said few jobs are as challenging as hauling oil and gas drilling machinery.

“There are no classes at the University of Texas training drivers or training people how to break down and assemble rigs — training is sort of on the job,” said Michael Dyll, chief executive officer of Houston-based Texas International Freight.

Texas Freight International, which started in 2011, performs heavy equipment hauling, from project logistics, break bulk shipping, container shipping and less-than-container (LCL), along with international shipping by ocean, air and truck.

“Domestically, we haul heavy equipment by truck within the United States. We also work with the rail lines to ship very heavy liquified natural gas tanks and transformers,” said Dyll, who has been in the freight forwarding business since 2006. 

Transporting rigs and oil field equipment requires special equipment, strict compliance and myriad safety procedures, Dyll said.

“If you are moving oil rigs overland from [oil] patch to patch, you are going to have the whole rig set up and you are going to have to hire a whole moving company — they’re going to rig it down and rig it back up,” he said.

Dyll said when it comes to transporting rigs and oil field equipment, trucks mainly will be used. Rig mobilization and assembly expenses depend on how far the rig is being transported, but can run anywhere between $100,000 and $350,000.

The types of vehicles and equipment used to transport rigs include picker trucks, boom (crane) trucks, winch trucks, bed trucks, tandem trucks and rolling tailboards. These vehicles and equipment are built for the extreme needs in the oil field environment.

“You load all those oil rig pieces all disassembled, you’ll load those up on a massive heavy-duty trailer truck and haul them away to whatever oil field they are going to,” Dyll said.

Dyll added that shipping oil rig equipment overseas is a totally different ball game.

“Typically the rigs are coming from a shipyard near Houston, where it’s on a stage where they have a crane where they have the equipment,” Dyll said. 

The rigs are taken from the shipyard by trucks — usually flatbeds — to someplace nearby such as the Port of Galveston and shipped overseas.

In August, another freight forwarder achieved one of the biggest moves by tractor-trailers ever in the Houston area, requiring a caravan of more than 30 Texas state troopers and 20 cherry-picker trucks to block traffic. 

Houston-based Specialized Logistics hauled a pair of enormous crates carrying parts of a South Korea-bound drilling ship to be used in oil exploration.

Transporting the drilling ship required two flatbed trucks transporting the crates 108 miles to the Bayport Terminal, a major port along the Bayport Ship Channel off Galveston Bay. The drill ship was then transported on a freighter bound for South Korea.

“We have done some big loads, but this is definitely the biggest route with the biggest boats we have ever transported,” Denton Townson, a spokesman for Specialized Logistics, told FreightWaves. 

Dyll said he has been behind the wheel a lot of times when his company has transported rigs or equipment. He said it can be a dangerous job and drivers have to stay alert.

“We had the Texas Department of Public Safety (DPS) tell us that the most dangerous time to be out on the road in the Permian Basin and Eagle Ford Shale statistically is Tuesday afternoon,” said Dyll, who serves on the Texas Freight Advisory Committee.

Around 11% of Texas’ traffic fatalities happened in Permian Basin in 2017, according to the Texas DPS.

Dyll added, “I can tell you from being on a rig transport a few times that you have to be careful, there’s a lot of things going on, a lot of moving parts, a lot of people doing their work using equipment, and there’s a lot of commotion. It can be dangerous.”

Source: Freight Waves

Check out our other current stories!

Join the largest oil and gas community on iOS and Android!

Download the app here!

Comments (0)

Leave Comment

Check out our other stories

Rig Lynx
Dec 16, 2020

  IAWCI™ is changing the way the Industry works with training. By bringing together Instructors, Providers, and Subject Matter Experts they are working to strengthen Well Control Training for the future.   IAWCI™ provides, Instructors a platform to discuss, create, and enhance well control training topics. For Providers of well control training, they connect instructors to assist in curriculum enhancement and virtual class development. With Subject Matter Experts, IAWCI™ gives them a place to voice concerns, ideas and topics that should be taught for the 21st century well control courses.   As a member of the IAWCI™, you have an opportunity to improve your well control skills, enhance your career, and impact the industry.  Whether you are a free member, or a paid member, the International Association of Well Control Instructors is your source for content and personal growth.   IAWCI™ is an Association that provides 24/7 networking and continuing education to the Oil and Gas Industry internationally. Their primary focus is to advance the unity of instructors so that the entire industry may benefit from the global conversation, not only in the classroom, but also in each student’s daily work lives.   To Strengthen Well Control Training for the 21st Century.   "Every Class, Every Time, Everywhere"™   You can find out more by visiting their website or become a free member today!   Visit IAWCI on LinkedIn and Facebook   We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here

Rig Lynx
Nov 23, 2020

  Inter Continental Des Services are a leading labor contractor and offshore support company based in Pointe Noire, Republic of Congo and registered under ministry of labor. ICS provide skilled/non-skilled labor for various steps of drilling projects which include onshore, offshore, administration crew and maintenance crew. They operate horizontally across the sector covering: Exploration, Drilling, Development, Production, Subsea, Inspection, Marine Contracting and Pipeline Engineering. In recent years, Oil and Gas industry has grown exponentially and the requirement for highly skilled and qualified human resource has grown along with it. ICS have extensive database of manpower field managers right up to the management positions. Also, they have a vast network base developed due to their dedication and market expertise.   ICS are always around you and can provide their solution anywhere in Republic of Congo and other remote parts of Africa. ICS customizes solutions for each of client, based on the specific requirements they provide. They not only understand the requirement, but they understand the business model, the risks they face in executing their policies. ICS are not just a service provider, but they become an associate who understands the challenges and can help in address them. According to the specific requirement ICS will decide on the service they can provide whether it should be an in-house solution or a collaboration with other service providers. Whatever the solution, they always consider the risks and how to manage them. ICS provide mid to senior level permanent and contract staffing solutions to the upstream and downstream Oil and Gas industry. Intercontinental Services has earned a reputation for itself and enjoys a good working relationship with many multinational Oil and Gas companies. Their priority is to satisfy the client at any cost, keeping the safety of people and environment in utmost priority. They operate in a way to avoid injuries to personnel and harm to the environment. Apart from this, they always strive to be better for the ultimate satisfaction of their clients and to achieve that, they invest in innovative and productive solutions. Benefits of working with ICS   Matching top talent with the best companies for more than 18 years Connecting talent with opportunity Shaping the next generation of employees Placing the right people in the right jobs Communication is paramount to their effectiveness Creating authentic connections around meaningful work Powered by innovation and driven by integrity Dedicated and committed to complete all their goals in time   Oil and Gas Engineers   ICS Engineers are trained at leading universities and have expertise and experience in their respective department. They provide engineers for every stage of oil and gas projects.   Types of oil and gas engineers they supply are as follows:   Technical Manager Project Engineer Instrument & Control Engineer Structural Engineer H2S Engineer Petrochemical engineer HSE Engineer Mud Engineer / Drilling Fluids Engineer   Drilling Manpower   ICS understand that refining and petrochemical operations are more challenging than ever now. Therefore, we provide skilled and experienced oil and gas workers to clients to meet the requirement of international growing demands.   Following are some types of personnel provided:   Oil Technical/ Storage Manager Mechanical Supervisor/Tech Pipeline Operator Refinery/Plant Operator Coil Tubing   Production and Maintenance Manpower   Production and Maintenance is one of the most important parts in any oil and gas company. Due to the importance of this stage, more skilled and knowledgeable manpower is required. This knowledge includes chemistry, technology and operating machinery.   ICS can supply:   Production Manpower Production Technologist Fracturing Operator Gas Plant Operator Wireline Operator Field Commissioning/SCADA   Maintenance Manpower   Maintenance Technician NDT Technician (Non-Destructive Technician)   Certifications   ICS carry out their operations in a responsible manner, assuring health and safety of people, prevention of environment, quality of product and services and compliance with all quality, legal and regulatory requirements in the countries they operate. The certificates they have obtained for the quality of their services:   ISO 9001: 2008 ISO 14001: 2008 HSE Policy Quality Policy Trace International Certification Anti-Bribery Certificate   To contact ICS please visit their website   You can reach out to Om on LinkedIn   We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here

Rig Lynx
Aug 11, 2020

  Whether hot and dusty, freezing cold or perched over saltwater, a constant geolocationally-agnostic task at hand is that stack of paper tickets and invoices that proliferates across the desk of the ‘company man.’ With years spent in college and various training courses to responsibly manage the safe construction of productive wells, paperwork can feel a Sisyphean side chore — with two to three hours a day spent stamping tickets. In 2020, this waste of time — not to mention resources — is beyond undesirable and no longer necessary.   Around 85 to 90% of services performed on-site could be moved to automated contract execution to track the delivery of goods and services performed. To do so, both buyer and seller will need to identify agreed sources of data to feed a smart contract, which is essentially a codified version of a natural language contract broken into computer script.  Blockchain and smart contract technology can be leveraged to rid the industry of paper tickets and paper-based thinking in invoicing and payment processes. Applications of Technology Several examples of manual, paper-based deliveries imperative to site productivity that can be automated right now using existing sensors and data sources from the drilling site include:  Diesel Fuel Whether delivered by vessel or truck, fuel delivery measurements can be automated by using a temperature-adjusted meter as the fuel hits a rig’s tank providing access to real time, digital settlement information for fuel delivered.   Rental Tools   Service providers must track the location of their tools for billing purposes, just as oil companies look for invoices based on either levels of service or per tool daily charges. By combining the data available in both of the counterparties’ systems, rental tool data can be tracked to a site by trucking manifest, GPS or RFID technology with time in the hole tied to bit depth from rig information and the BHA section of an IADC daily tour sheet.   Field tests have shown that using these types of sources for automation yields a 98% accuracy rate compared to the current manual methods.  Instead of spending weeks or months getting to finality the parties have updated charges daily.  Furthermore, immutable data can be shared with project participants in the format they need: broken down by tool and product line for a service provider and in a consolidated service line item for an operator.   Cost Reimbursables   For frequent cost reimbursable items such as EDR, forklift rentals, shaker screens, etc., charges are often binary or clearly prorated. As a result, the use of simple checkboxes in a digital morning report or IADC signed by a company man can serve as evidence enough for billing automation. This ensures the service provider gets paid for the extra services and operators only pay for what their personnel confirm occurred.   Paper Tickets   Electronic field ticketing systems have become extremely affordable and flexible as of late. Many of the companies that exist today provide a free iOS app and charge a few pennies or dollars a ticket, while allowing service companies to configure tickets to whatever their particular services offerings are. Tickets can then be either signed on a device in the field or work flowed to the appropriate signatory. Even in this manual process, the digital results are much easier to track, consume and pay from then triplicate paper tickets. Moving to Automation Automated smart contracts are not going to solve every aspect of billing issues on-site. But they can certainly relieve the burden of busywork on an operator’s representative and the service providers. By alleviating the mundane tasks of stamping tickets and processing paper invoices, technology can serve as a boon to better streamline resources and the time for that of the company man.    Andrew Bruce, Founder & CEO, DataGumbo     Andrew Bruce is the founder and CEO of Data Gumbo, a company he founded in 2016 after spotting an opportunity to eliminate a sizable cost inefficiency between an oil supermajor and one of its suppliers. Data Gumbo provides GumboNet™, a trusted industrial blockchain network that automates smart contracts and transactions for asset-heavy and capital-intensive industries.     Come join our community! Download the Rig Lynx app here