Coil tubing's origins date back to the 1940's when British Engineers developed long, continuous underwater pipelines to transport oil from England to mainland Europe in World War II.
While the initial development of Coiled Tubing was spurred by the desire to work on live wellbores, speed and economy have emerged as key advantages for application of Coiled Tubing. In addition, the relatively small footprint and short rig-up time make Coiled Tubing even more attractive for drilling and workover applications.
Some of the key benefits associated with the use of Coiled Tubing technology are as follows:
Safe and efficient live well intervention
Rapid mobilization and rig-up
Ability to circulate while RIH/POOH
Reduced trip time, resulting in less production downtime
Reduced crew/personnel requirements
Cost may be significantly reduced
Coiled Tubing Field Applications
The use of Coiled Tubing has continued to grow beyond the typical well cleanout and acid stimulation application. This growth can be attributed to a multitude of factors, including advances in Coiled Tubing technology and materials as well as the increased emphasis on wellbores containing a horizontal and/or highly-deviated section.
The Business
The Coiled Tubing industry continues to be one of the fastest growing segments of the oilfield services sector, and for good reason. Coiled Tubing growth has been driven by attractive economics, continual advances in technology, and utilization of Coiled Tubing to perform an ever-growing list of field operations. Coiled Tubing today is a global, multi billion dollar industry in the mainstream of energy extract technology.
The potential advantages associated with Coiled Tubing are typically driven by the fact that a workover rig (and associated cost) is not required, the rapid Coiled Tubing trip speed in and out of the well, and that Coiled Tubing operations are designed to be performed with pressure on the well. Eliminating the requirement to kill the well can be a significant fact in the decision to utilize Coiled Tubing for a particular field operation, as
it reduces the risk of formation damage.
In September 2005, slightly more than 1,060 Coiled Tubing units were estimated to be available on a worldwide basis. The total number of working Coiled Tubing units is up sharply from the roughly 850 units reported in February 2001. At present, the International market accounts for the bulk of the currently available Coiled Tubing fleet with more than 556 units. Canada and the U.S. are estimated to contribute additional 254
and 253 units, respectively. These figures are currently increasing as indicated by reports of new rig orders.
Coiled Tubing first established it's niche in the marketplace as a cost-effective well cleanout tool. In recent years, these conventional wellbore cleanouts and acid stimulation jobs accounted for more than three quarters of total Coiled Tubing revenue. However, Coiled Tubing use has continued to expand as it is adopted for
use in additional field operations. Most recently, Coiled tubing fracturing and drilling applications have emerged as two of the fastest growth areas. Revenue from these two Coiled Tubing applications has grown from almost zero 10 years ago, to approximately 15 percent in more recent times.
Coiled Tubing Service Providers
The Coiled Tubing market is dominated by three large service companies, who control approximately 60% of the Coiled Tubing total marketplace. The market is also serviced by numerous smaller Coiled Tubing service providers.
On a regional basis, there are typically more than 30 providers of Coiled Tubing in the International marketplace. Canada is serviced by more than 35 Coiled Tubing providers, and the U.S. by more than 25 companies.
A listing of coiled tubing service providers can be found at www.findst.com. Findst.com also includes detailed information on
the oil and gas industry including analysis of oil and gas stocks and oilfield jobs.
About the Author
Carmen is an Insider Trading Analyst for Findst, an Oil and Gas Portal focusing on
oil and gas stocks and oil and gas jobs specifically oilfield jobs and oil rig jobs.
