The number of coiled tubing (CT) units has expanded steadily in the last decade, reaching 1,778 at the end of 2009, up from 761 at the end of 1998 — an average increase of 5% every year.

Service contractors added about 83 coiled tubing units (CTUs) to the worldwide fleet in 2009, based on the new annual survey results generated by Les Tomlin, Trican Well Services, Calgary. This represents an increase of nearly 5% over the 2008 world fleet size of 1,695 CT units.

The largest fleet increases were in Latin America (64 additional CTUs) and the Far East (66 additional CTUs). Several dozen CTUs were also sent to the Middle East, Europe and Africa, and Russia. Fleet sizes dropped slightly in North America.

Market drivers

The market for CT rig services depends on rig activity levels, which are generally driven by commodity prices and the corresponding need for downhole services. A small but increasing number of CT rigs are designed and built for slimhole drilling, occasionally in a hybrid configuration that allows drilling with straight pipe in addition to coiled.

CT rigs are often promoted on the basis of lower cost, versatility, and mobility than more expensive and less portable rotary rigs. Trip times are greatly reduced with coiled pipe since little time is spent making and breaking connections. The footprint of a CT rig and crane is almost always smaller than an equivalent rotary rig, and the lack of a derrick results in a lower vertical profile, which can be a positive factor in urban areas.

Relative availability of rigs and related equipment (nitrogen, fracturing units) affects the market in influencing service companies to reposition CT units in active basins such as the burgeoning shale and tight sand plays.

‘Follow the shales’

Pete Sinner, based in Colorado with Global Tubing, said that 2-in. tubing is becoming more popular in the shale plays to mill out bridge plugs after frac jobs. A lot of horizontal wells are being drilled now, and Sinner points out that as those wells deplete, the demand will be even greater for CT service work in 3,000- to 5,000-ft (915- to 1,525-m) horizontals.

Larger diameter tubing is used for frac work (2 5/8-in. to 3 ½-in.) to accommodate the volumes and fast pump rates for slickwater fracs. The land-transportable size of the larger-diameter tubing strings averages about 2,953 to 4,922 ft (900 to 1,500 m) length for 2 7/8-in. tubing and about 2,625 to 3,937 ft (800 to 1,200 m) for 3 ½-in. tubing in western Canada, said Sinner.

Transportation restrictions limit the practical size and weight of reels because of road and bridge capacities. Kansas state bridge laws, for example, are perhaps the strictest in the US, according to Tomlin.

CTD

Improvements in horizontal drilling technologies and slimhole completion systems have also led a noticeable increase in CT drilling (CTD) and development of new rig designs. CTD is popular in several different markets and applications: shallow gas plays, multilateral directional drilling, reentries, and side tracks. Continuous circulation is possible while tripping tubing, and maintaining equivalent circulating density should be easier, facilitating under-, at-, and overbalanced drilling.

For drilling and other really deep applications requiring longer strings, operators will transport the reel separately on a reel trailer and connect it directly through the injector head. Although strings can be connected, it’s preferable to use a single string, as welding creates weak spots and will reduce the string life.

In North America, wooden shipping reels for CT average 112 in. (2.8 m) to 135 in. (3.4 m) tall, and metal shipping reels are about 180 in. tall (15 ft or 4.6 m), so the height of overpasses needs to factored in when planning travel routes.

For drilling new “grass roots) wells, companies generally use 2 7/8 or 3 ½ -in. diameter tubing, said Sinner.

North America

About 46% of the world’s CTUs are working in Canada and the US. However, North American CT fleets shrank slightly in 2009, down 12 units (2.9%) in Canada and 11 units (2.4%) in the US, based on units available for work on Jan. 1, 2010.

Due to the shale plays getting more attention (and development dollars), Tomlin suggests that we may see older CT units parked or cannibalized if they are unable to handle the larger diameter tubing sizes — at least in the North American markets. In time, shale technology demands may also affect CT markets and fleet composition outside of North America.

The Canadian fleet of 399 is in the hands of 75 different companies, the majority based in Alberta and British Columbia. Only a dozen companies have fleets of 10 or more rigs:

• Savanna Drilling (was Trailblazer) (44)

• Essential Energy Trust (25)

• Trican Well Service (23)

• BJ Services (17)

• Calfrac (17)

• Ensign Group (17)

- Champion Drilling CTD (6)

- Rockwell CTUs (11)

• Technicoil (17)

• Schlumberger (14)

• Maple Creek Endless Tubing (13)

• Precision Drilling (11)

• Sanjel (10)

• Taz Well Servicing (10)

Only two companies run CT rigs in eastern Canada: Schlumberger (two rigs) and Talisman Energy (one rig on Lake Erie).

US fleets

There are 444 CTUs operating in the US, with about 40% of those in Texas alone (177), running in East Texas (80), South Texas (50), West Texas (24), and North Texas (23). Texas dropped 13 CTUs over the course of 2009, losing about 7% of its fleet.

There are 81 CTUs working in South Louisiana, down two from a year earlier, and 48 in Oklahoma and Arkansas, down four from a year earlier. The Rockies have 57 CTUs operating, down only five from a year ago, and there are 10 in Alaska (Schlumberger and BJ Services), down two from a year ago.

The only two areas of the US that have added CTUs are California, which surprisingly added four rigs and now has 45 working, and the Northeast, which added 11 rigs and now has 26 working, presumably in the Marcellus shale.

The largest US CT fleets are operated by:

• BJ Services (54)

• Halliburton Coiled Tubing (40)

• Superior, comprising Warrior and Bobcat (39)

• Schlumberger (38)

• Cudd Pressure Control (35)

• Coiled Tubing Services (34)

• Complete Production Services, comprising IPS and Appalachian Well Services (29)

• Key Energy (20)

Three companies have three CTUs each: C&J Coiled Tubing; Moncla Cos., which acquired the assets of Wise Well Intervention; and Nabors/Pool Well Service. Two companies run 12 rigs each: Allis-Chalmers and Sanjel CT.

Latin America

The CT fleet increased 45% in 2009 with the addition of 64 rigs to a new high of 206. Nearly half (30) of the new rigs added in 2009 went to Mexico.

Now a total of 64 rigs are operated in Mexico, representing nearly a third of all Latin American CTUs. Five companies provide CT services in Mexico. Complete Production Services IPS -Servicio Petrotech has 28 units, up from 14 a year earlier. Schlumberger operates 20 units, as it has for the past five years. Xtreme Drilling moved into the Mexican market in 2009 and now operates 10 units. Weatherford also began CT work in Mexico and now has five units there. Canada’s Sanjel CT has a single CTU in Mexico.

There don’t appear to any CTUs working in Central America at this time.

Tucker has two units in Venezuela-Trinidad. Four other service companies claimed rigs in Venezuela, led by SSO (9) and Ven-Line (6) and followed by Baker Hughes and Newsca with one CTU each.

Weatherford has a single CTU in Colombia, and San Antonio, which acquired SOTEP in 2008, has six CTUs in Brazil.

Elsewhere in South America, Schlumberger has 45 CTUs, BJ Services and Halliburton each have 32, and San Antonio has seven.

Europe and Africa

The industry added 21 CTUs in Europe and Africa, increasing 14% to 173 units.

Only 10 companies provide CT units in this region. Schlumberger leads with 58 units, followed by BJ Services (40) and Halliburton (38), including the former PSL.

Others include SMAPE-Europe (11); SMAPE-ItalFluid Egypt (3); and AkerQserv (10), including the former WellServ. Weatherford has five, including one CTD unit in Algeria. CROSCO has three CTUs in Croatia (and one in Syria). Baker Hughes has two CTD units in Algeria, but they are inactive.

Middle East

The CTU fleet increased 14% (23 units) during 2009, reaching 192. The distribution is not entirely clear, but at least 10 of these units are operating in Kuwait, seven in Egypt, four in Oman, three in United Arab Emirates, two in Yemen, and one in Qatar. The other 165 CTUs are presumably scattered in various countries.

Schlumberger controls the largest fleet (44), closely followed by Middle East Nationals (41) and more distantly by BJ Services (24), and Halliburton (21). The remaining 25 rigs are in service company fleets smaller than 10.

Russia

The CTU fleet in Russia dropped by one unit in 2009, to 176 CTUs operating on Jan. 1, 2010, operated by 55 different companies. Only three have fleet sizes in the double digits: Surgutneftegaz (24 CTUs, 1 CTD); Gazprom Podzemremont Uregoi (21); and Schlumberger (12).

There are now 37 CTUs in surrounding countries, up from 19 a year ago. Kazakhstan added 11 CT units and now has 20, operated by eight different companies. The Ukraine added four CTUs and now has 10, operated by three companies. Uzbekistan added two CTUs operated by two companies, for the first time. Turkmenistan added its first CTU as well, operated by Continental Industrial Supply Ltd.

Belarus still has a single CTU operating (Belorusneft), and Azerbaijan still has three CTUs, operated by BJ and Thkap Soccar.

Acknowledgements

In preparing the CTU count every year, Les Tomlin and Trican Well Services are providing something of true value to the coiled tubing industry. Thanks are also due to the Intervention & Coiled Tubing Association for publishing the statistics; http://www.icota-canada.com/stats.htm.

ICoTA was established in 1994 with a mission:

“To enhance communication, gather technical expertise, and promote safety, training, competency, and industry-accepted practices within the well intervention and coiled tubing industry.”

In 2009, 39% of ICoTA members were based in the US and 25% in Canada, but 26% are based in Europe and the Middle East and another 10% in Latin America.