Global Drilling Community

Occidental Oil & Gas Corp.

A Methodology and Analytical Tool

Kevin Konopko
Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

2011 Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

TABLE OF CONTENTS

INTRODUCTION ......................................................................................................................... 5
DATA EXTRACTION METHODOLOGY ..................................................................................... 6
Bit Runs: Physical and Operating Parameters .......................................................................................... 6
Bit Run Cost................................................................................................................................................... 7
Consumer Price Index (CPI) ......................................................................................................................... 7
Bit Performance Index .................................................................................................................................. 8

THE ANALYSIS TOOL ................................................................................................................ 9

Performance Index Plot ................................................................................................................................ 9
Cost/Ft and ROP Quadrant Plots ............................................................................................................... 10
Drilled Intervals ........................................................................................................................................... 11
Vendor Head-to-Head Performance .......................................................................................................... 11
Raw Data ...................................................................................................................................................... 12

DATA OBSERVATIONS ........................................................................................................... 13

SUMMARY ................................................................................................................................ 14
REFERENCES .......................................................................................................................... 15

2011 Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

2011 Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

Introduction
Historically, we have relied on drill bit vendors to compile and present bit performance data. While their
results are typically focused on cost-per-foot, this simple economic calculation obscures drilling
difficulties and directional conditions, and it ignores other costs incurred during the run. Using bit run
data we have been collecting at the rig for years, we developed a method to measure the bit's
performance for a single run. In addition to the cost-per-foot, the calculation of a Bit Performance Index
(PI) includes the Rate of Penetration (ROP), footage drilled, and the reason pulled. Bit runs are plotted in
Spotfire by well type and hole section, affording engineers a quick and easy method for selecting the
best bit model(s) based upon actual experience. The analysis tool also compares bit vendors head-tohead in each well type scenario.
The initial idea for this bit performance analysis tool came from the Drilling Performance Community of
Practice. Their request was for some type of tool that would assist them in selecting the best drill bits in
a particular environment similar well types, depth ranges and lithology. This would be a look-back tool,
not a predictor such as that offered by some bit vendors. A manually driven prototype tool was built
using Microsoft Access, and after rigorous testing we built an automated tool in the Oracle database.
In this document we will walk through the data extraction process itself, the primary calculations
performed, and the short-comings in the resulting data set. Then we will look at how we take that data
set and feed it into an analysis/visualization tool Spotfire.
Landmarks EDMdatabase and its application OpenWellsdo not relate bit runs directly to a drilling
operation. The massive amount of data, and the indirect association of certain pieces of supporting data,
does not lend well to creating one master query. Indeed, such a query would require several subqueries
and therefore impose a burdensome load at run time. Additionally, Oxy has no single corporate
database yet which contains all the drilling operations data. Given those conditions, it was decided to
create a stored extraction routine in each Oracle database and send the data to a central table in
Houston.
Extracting the data is relatively easy; the hard part is doing something useful with the data. We
employed Spotfire to load the data and create a series of visualizations in the hopes of obtaining insights
into our drilling performance. The Spotfire file evolved through several generations before we had
something rather simple and useful.
Several insights were imparted. Our first insight was discovering performance quadrants in the plots of
Cost/Foot (CPF) and ROP against footage drilled. The second insight was the discovery of a Performance
Index and how it quickly and easily exposes the best performing bits. The final insight involved vendor
equipment performance when we compared them head-to-head in the same well types and hole
sections.

2011 Occidental Oil & Gas Corp.

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Automated Bit Performance Analysis

Data Extraction Methodology

The data extraction from the EDM database starts with identifying all Drilling Events with a start date >=
11/01/2007 and loading them into a temporary "EVENTS" table. It was decided that anything prior to
this date had low reliability. Extracted data includes the well, rig, well type, Event primary reason, and a
few other items useful for filtering and grouping. We also include the minimum and maximum activity
date/time values to be used as the date range limits for related bit runs.

Bit Runs: Physical and Operating Parameters

Using the compiled "EVENTS" table as a starting point, we identify all related bit runs and load them into
another "BIT RUNS" table, where:
Bit DateTime In is between Event's min and max activity date/ time values;
Bit DateTime Out is not null (don't want any bit runs that are still in the hole drilling);
the bit is not a core bit, mill, window mill, spear bit, or washover bit;
the bit runs purpose does not contain words like cleanout, mill, scraper, core, reaming, reamer.
Bit information includes nomenclature, physical characteristics, and the post-run grading.
Next we calculate some specific values with additional queries and load into the "BIT RUNS" table. Of
particular interest are:
Drilled Ftg
(Depth Out) - (Depth In)
Hrs in Hole (the Gross Hrs)
(DateTime Out) - (DateTime In)
Hrs Drill New Hole (the Net Hrs)
sum hours of all daily activity records within bit run's datetime range where activity code indicates
drilling new hole
Net ROP
(Drilled Footage)/(Hrs Drill New Hole)
Then we delete any records in the "BIT RUNS" table where Drilled Footage = 0 or Hrs Drill New Hole = 0.
Also, we delete any records where there is no single default depth reference datum for the well, which
makes it impossible to convert depth values from the database. This three-step deletion eliminates
additional bit runs that passed the initial filtering round.
Continuing on, we add the minimum and maximum of the bit operating parameters recorded during the
run. These include min/max WOB, min/max RPM, min/max downhole RPM, min/max ROP, min/max
pump flow rate, min/max pump pressure, max P drop across bit, max nozzle velocity, and max HHP.
Rounding out the bit run data, we add some additional points about specific components on the drill
string: hole openers, Steerable Ream While Drilling (SRWD) components, and mud motors. If any are
present, we indicate such and populate the size. All three of these component circumstances are
intended to be used as additional filtering criteria.

2011 Occidental Oil & Gas Corp.

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Automated Bit Performance Analysis

As the final part of the drilling environment, we add the maximum hole inclination and its corresponding
measured depth. Again, this is useful as filtering criteria to narrow the drilling environment being
analyzed.
Finally, we determine the hole section Phase from the matching daily activity records. This is important
as it allows comparison against other bits drilling the same type of well in a similar depth range or hole
section.

Bit Run Cost

For our tool and methodology here, we include not only the bit cost but rig/location costs incurred
during the bit run, which may differ from other methodologies.
First, we load a temporary "DAILY REPTS" table with all of the Daily reports for the Event. This data is
used to calculate a rough estimate of the bit run cost and to calculate a cost/ft value.
1. For each Daily report, calculate the total daily cost.
2. For each Daily report, calculate the "Effective Cost" as
[total daily cost] - [Intangibles] - [Cementing services] - [Logging services] - [Perforating services]
3. For each Daily report, calculate the total number of hours from the daily activity.
4. For each Daily report, identify the min activity datetime and the max activity datetime values.
Next, use the "DAILY REPTS" table data to update the main "BIT RUNS" table. For each bit run,
determine how many Daily reports it covers and use a percentage calculation scheme to obtain a cost
for the run.
1. Identify the first Daily report, where the bit runs in the hole.
2. Identify the last Daily report, where the bit is pulled out of the hole.
3. If identified daily reports are not the same, calculate the number of reports between them.
4. Calculate the Bit Run Cost based upon one of three cases as follows.
a. Bit in and out on same Daily report
b. Bit out on Daily report one day later
c. Bit out on Daily report 2+ days later
5. Calculate the Cost/Ft
CPF = [Bit Run Cost]/[Drilled Footage]

Consumer Price Index (CPI)

For comparison purposes, the routine adds CPI-adjusted cost values. The CPI data is obtained from the
U.S. Department of Labors website. Monthly CPI data is stored in a separate database table and is
updated monthly. January 2006 is set as the benchmark month. A CPI Benchmark Factor is calculated for
each month from January 2006. The formula is:
CPI BM Factor for any month = [CPI for month]/[CPI for Jan 2006]

2011 Occidental Oil & Gas Corp.

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Automated Bit Performance Analysis

We update the "BIT RUNS" table with a monthly CPI Benchmark Factor based upon the Bit DateTime Out
value. Finally, we calculate the CPI-adjusted cost values as follows.
Bit Run Cost CPI = [Bit Run Cost]/[CPI BM Factor]
CPF CPI = [CPF]/[CPI BM Factor]

Bit Performance Index

During the rigorous review process it became apparent that there was a need for one particular value
that would express the bit performance. A bit Performance Index (PI) was developed, using the four
most important measures in a bit run and the weighting given to each.
CPF
40%
ROP
25%
Reason Pulled
20%
Drilled Footage 15%
PI = [0.40(CPF Score) + 0.25(ROP Score) + 0.20(Reason Pulled Score) + 0.15(Drilled Ftg Score)] * 10
CPF scoring and ROP scoring are graduated from 0 to 10 based upon specific ranges. The Reason Pulled
is scored from 0 to 10 based upon the actual code value. For the Drilled Footage scoring, measured
footage values were compiled for each drilling phase based upon five statistical points: P90, Q3, Median,
Q1, and P10.
Scoring formulas are revisited quarterly for any adjustments.

In the end we have one big database table containing all of our bit runs with a practical, though relative,
way of stacking bits against each other. We threw out any runs having Drilled Footage = 0, Hrs Drill New
Hole = 0, or an erroneous default depth reference datum for the well. Having such a big table structure
may violate some database normalization rules, but the concept of one record per bit run is easy for
engineers and technicians alike to understand and use.
At this point the data is ready for analytical use.

2011 Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

The Analysis Tool

A simple query of the finalized data set and its corresponding results are a great start but we think there
is more to do. In simple form, an analysis attempts to answer a question. The question we are asking
here is what bit, based upon local experience, is best for drilling a particular hole section in a particular
type of well. Hence, the finalized data was linked into Spotfire and various tables and charts were
created.
Performance Index Plot
The main page in the analysis consists of three filtering tables where a choice must be made in each in
order to view the results. After selecting a business unit, an adjacent table displays the available well
types for that business unit, along with the bit run count. Select a well type. The third table displays the
hole section Phases and bit sizes found, along with the bit run count and a few other pieces of averaged
data. Select a one or more bit sizes within a hole section Phase and the results will plot. See Figure 1
below.

Figure 1

Additional filtering criteria is supplied in a filter panel at the right. Highlighting one or more data points
in the scatter plot will cause the lowermost table to populate with the related details of each data point.
In addition, hovering the mouse over any data point in the plot will cause a pop-up information box to
appear, containing key information.

2011 Occidental Oil & Gas Corp.

OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

Cost/Ft and ROP Quadrant Plots

Wishing to explore further, we can view separate plots of the ROP against the Drilled Footage and the
Cost/Ft against the Drilled Footage. This removes any scoring effect from the PI, allowing focus on either
the ROP or the Cost/Ft. See Figures 2 and 3 below.
Both graphs plot the Drilled Footage on an inverted Y-axis. Vertical lines are automatically drawn on
both axes, denoting the average value for each within the filtered data set. The Cost/Ft in Figure 3 is
plotted on an inverted X-axis. This graphical setup leads us to the lower right quadrant in both graphs,
where the best performing bits are plotted. Also note that the X-axis has a zooming slider, acting as
another filter and allowing closer inspection of the data.

Figure 3
Drilled Footage vs. Cost/Ft

Figure 2
Drilled Footage vs. Net ROP

Highlighting one or
more data points in
one graph will
highlight the same
data points in the
other graph.
Associated run
details appear in
the table below the
graph, sorting by
PI, ROP and
CPF. Figure 4
illustrates this
synchronicity.
Figure 4
Simultaneous highlighting of data points in multiple graphs.

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OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

Drilled Intervals
We can view a
graphical
representation of the
drilled interval for each
bit run, once a well
type, phase and bit size
is selected. This
representation is
similar to what we
sometimes receive
from the vendor, so it
has been included in
the analysis tool for
familiarity.
The middle left Phase
and Bit Sizes table
displays some
additional average
Figure 5
values for comparison.
The bottom left table
displays the vendors and their bit performance. Green-shaded cells in the ROP and CPF columns
highlight the best value for the filtered data.

Vendor Head-to-Head Performance

Something we have not
been able to do easily in
the past is conduct a
head-to-head
comparison of bit
performance by vendor
using our actual run data.
Figure 6 illustrates the
first step in that
direction. Again, caution
is emphasized here as the
cost and ROP numbers
are relative.
The same theme runs
here in that a selection
must be made for the
2011 Occidental Oil & Gas Corp.

Figure 6
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OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

business unit and a well type. The cross-plot table in Figure 6 has three levels, highlighted by the dotted
red box: the hole section phase, the bit size, and the bit manufacturer. Some color-coding logic was
added in the Avg ROP and Avg CPF columns to shade green if the ROP >= 75 or the CPF <= 150. These
target values can be anything and were chosen as a starting point with the intent to revise at a later
date. Obviously, those lines with both cells shaded green indicate very good performance. Highlighting
any one line with a click will cause the lower table to populate the related bit runs for closer
examination.
The second part of vendor head-to-head performance evaluation involves the same data but with a
graphical view. See Figure 7.
This plot layout is called a trellis. For
the Phase highlighted in the lower left
table, the plot produces separate
panels for each vendor having data in
the selected Phase. The plot can have
any number of fitted curves or fixed
lines displayed within the data. Here in
Figure 7, the median Y value for each
panel is plotted, displaying the median
value as well.

Figure 7

Raw Data
Finally, the raw data is provided for detailed inspection and is available for export.

Figure 8
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OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

Data Observations
Some imperfections in the data are noteworthy.
1. Lithology and/or formation data is unavailable. Since this tool is not a predictor, this limitation is
acceptable at present. However, we are currently working to get this information from other
departments in-house.
2. Some runs are assigned to non-drilling Phases, most likely due to input mistake or oversight. These
runs are excluded for calculating the Drilled Footage Score in the PI.
3. Bit serial numbers are not 100% reliable. Due to data input quality, we find instances where the
same serial number appears for completely different bits.
4. Bit model number values are not consistent for the same exact bit, though they may be close. Any
searches/filtering using this must take data variations into account.
5. Hrs Drill New Hole value is relative. We get this value from the related daily time summary records,
and they are typically rounded to the nearest -hour and do not exclude connection time. Since this
generality is present across the entire data set, we accept that this value is relative yet still useful for
analysis purposes.
6. Bit Run Cost value is relative. The rig supervisor does not receive all of the invoices on location, so
the reported daily cost is an estimate at best. Since this generality is present across the entire data
set, we accept that the cost value is relative but still useful for analysis purposes.
7. Rig name is missing in some records.
8. It would be good to know the type of mud motor run with the bit; currently we only indicate the
presence of any and the size.
9. Max Inclination is not available for about 15% of the records.
10. Recorded bit operating parameters during the run are not necessarily complete. Regardless, these
values are still a good indicator of operating conditions.
11. Some materials and/or services may be purchased well in advance, thereby having an associated CPI
that is not reflective of the year/month associated to the bit run. Extreme caution is emphasized
here with these CPI-adjusted values.
12. Calculation for the Drilled Footage score should probably be done at the regional level, the individual
business unit level, or at a grouping of one or more well types within the business unit.

2011 Occidental Oil & Gas Corp.

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OCCIDENTAL OIL & GAS CORP.

Automated Bit Performance Analysis

Summary
The Bit Performance Analysis Tool was developed as a look-back tool, not a predictor, in order to assist
the engineer in selecting the best drill bit for a particular hole section of a particular well type. Its
strength lies in the character of the data set that being entirely of local experience; hence, the tool
incorporates an intrinsic sense of familiarity. Well types are completely controlled at the source, and can
be as broad or tight as desired.
The tool also contributes to improving the source data. Efforts have been undertaken to standardize
certain nomenclature, remove variations in particular fields and fix the more obvious mistakes and
omissions.
The calculated Cost/Ft and ROP values are relative, not exact, as the source data contains an inherent
diminished accuracy.
The ranking and weighting of the four parameters used to calculate the PI will probably change.
Arguments favor the ROP being the top-weighted parameter with CPF falling to second place. The
scoring for each of the four PI parameters should be reviewed quarterly and adjusted to fit the growing
data set or changes in the well types.
There is potential for additional improvement in the PI calculation by applying different scoring formulas
to CPF, ROP and Drilled Footage based upon the business units overall statistics. For even better
accuracy, scoring formulas could be driven down to the well type level for those well types that have a
large enough data set.
Additional improvement of the tool would include a method to choose a group of offset wells,
individually or collectively, and then view the various visualization pages confined to that set of wells
only.
Finally, what remains is to conduct a case study where the tool would be used to select bits for a current
drilling campaign. The outcome of such a study would, in all likelihood, bring out ideas for practical
improvements to the tool.

2011 Occidental Oil & Gas Corp.

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Automated Bit Performance Analysis

References
Macini, P., M. Magagni, and Pietro Valente. 2005. Drill Bit Catalog and Bit Index: a New Method for Bit
Performance Evaluation. Paper SPE 94798-MS presented at the SPE Latin American and Caribbean
Petroleum Engineering Conference, Rio de Janeiro, Brazil. June 20-23. doi: 10.2118/94798-MS
Rach, Nina M. Best Bits Go on Record. E&P, March 2010, 65-68.
Amorim, Dalmo, Andrew Murdock, Carlos Huerta, Diogo Oliveira, Fabiola Diaz, Gustavo Padron, Willie
Columbine, and Wilson Iramina. 2008. Ultra-stable PDC drill bit technology improves performance in
Southern Mexico applications. Drilling Contractor: 90-93.
Few, Stephen. Now You See It: Simple Visualization Techniques for Quantitative Analysis. Oakland,
California: Analytics Press, 2009.
Few, Stephen. Show Me the Numbers: Designing Tables and Graphs to Enlighten. Oakland, California:
Analytics Press, 2004.
Tufte, Edward. Visual Explanations: Images and Quantities, Evidence and Narrative. Cheshire,
Connecticut: Graphics Press, 1997.
Bureau of Labor Statistics, U.S. Department of Labor. Consumer Price Index, All Urban Consumers. Last
modified January 11, 2011, ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.
InflationData.com. http://inflationdata.com/inflation/default.asp.
McCartney, Christopher. Directional Drilling Specialist, Performance Drilling Community of Practice
leader, Occidental Oil & Gas Corporation.

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