Q2 2015 Newsletter

Quarterly Newsletter Q2 2015
Romans 8:31— What then shall we say to these things? If God is for us, who can be against us? (NIV)
this issue
Market Conditions P.1
PROMPTT System P.2
Working in the heat P.3
Open Enrollment P.4
Around the Bend—Sam Hardin
Current Market —Paul M. Mosvold
We have successfully weathered many market swings and downs since our company was
founded in 1977. This downturn came faster and has been more severe then what we have
ever experienced in the past. Last week the us land rig count fell another 10 rigs settling at
only 858 rigs working with 1000 rigs stacked ( 54%). The experts predict that we have seen
a leveling out of the stacking of rigs and that we will see a gradual increase sometime later
this fall. Many of the rigs working are on long term contract making it difficult for our current and future customers to “high-grade” to one our idled Scandrill rigs.
The Scandrill rigs currently working together with the recently stacked high performance
rigs are our best advertising. By continuing to outperform our competitors in both efficiency and effectiveness, we will continue to find opportunities to replace rigs as their contracts expire.
We have many new initiatives, some that you can read more about in this newsletter,
but our greatest asset is you our rig hands, drillers, rig managers and support staff. We
must continue to always be willing to be open minded and always look for continuous improvement in everything we do.
We appreciate your support through this difficult time, and we know that we will persevere
and become the drilling contractor of choice to even more operators as we fight our way
through this challenging time.
God bless! Paul M. Mosvold
In my position with Scandrill I get to
see different Operators while traveling all over Texas, Louisiana, Oklahoma and the Southeastern portion
of New Mexico. In these travels I
not only try to do my part in maintaining continual work for our rigs
but I also look for new opportunities for current rigs that are without
work. In these discussions with major Operators and small alike I listen
for any hint of similarities in what
our discussions are among one another on oil and gas price in the
near term and even long term if
anyone can think that far ahead.
During my recent tour my discussions with our customers and those
we would like to be our customers
quickly turned to $60 - $70’ish oil
which signals a potential bottom to
the most recent cliff dropping of
prices. These potential prices coupled with lower operating costs
may be what it takes to keep rigs
working and in the process put
more back to work. Only time will
tell and as we get closer to the fall I
really think we will begin to see a
clearer picture as to what will happen.
Regardless as to what is around the
bend I am confident that we are
ready for that challenge. WE have
planned accordingly over the past
couple of years and based on our
current equipment and people, I
am optimistic about the future success of our Company.
Rig News
Moving Forward with Technology—PROMPTT
Scandrill’s NPT percentages were lower than industry average, but not low enough for Paul
Mosvold, President and COO of Scandrill. “Run-to-failure operations aren’t sustainable,”
he says. “We needed an advanced system that would monitor all rig activity and help us
manage our assets, but be configurable enough to accommodate our internal safety program and standard operating procedures. We asked for a solution that keeps us ahead of
the curve - and PROMPTT® delivered.” With PROMPTT®, processes and workflows are automated, and the intuitive mobile applications proactively tell users what, when, and how
activities should be carried out.
Today, Scandrill operates more efficiently than ever. In addition to reducing asset management and operational costs, the field operations team reports fewer safety incidents,
greater task completion, more confidence amongst newer staff, and a healthier work culture, lower operating costs and improved efficiency, and PROMPTT does this.
To further optimize performance, Scandrill has partnered again with TrigPoint Solutions to
pilot RIGIQ® , a prescriptive analytics tool designed to eliminate unplanned NPT. RIGIQ®
analyzes well, operations and performance data to highlight trends, patterns, and important KPIs in order to predict when downtime will occur. Its accuracy rate is as high as
90%. In addition to real-time monitoring and forecasting, RIGIQ® also acts as an optimization tool. The software tells users precisely what specific operational changes are required
to prevent future NPT. It integrates seamlessly with PROMPTT® , giving Scandrill a full 360°
view of operations. “RIGIQ® provides the missing link in O&G business intelligence, "says
Greg Slater, President of TrigPoint Solutions. “It takes you from ‘preventative’ to
‘predictive’ - and who doesn’t want to know the future?”
“Having our SCOPE program on PROMPTT has greatly improved the safety
and learning culture on my rig. By having it on the PROMPTT handheld my
crews have access to the fundamentals of SCOPE 24/7 which is great because I can't stay with them every hour of every day. This ensures that the
correct verbiage/terms are being used even by the new hires all at the click
of a few buttons. It walks you thru the process step by step so there is less
of a chance that an important part is missed. It holds us accountable and
makes you get confirmation from everyone involved that they understand
and agree with everything before you can move forward to the next step.
Since we have started using SCOPE I have witnessed an increase in performance by my crews because everyone knows their roles and responsibilities
and the jobs go smoother. I have also witnessed a decrease in body contact
incidents and an increase in good catches because my crews are paying
more attention to the details and practicing situation awareness thru the
entire task.”
- James Phillips, Rig Manager/Pride
(and oldest daughter Lacy)
A BETTER APPROACH
“We needed an advanced system that
would monitor all rig activity and help
us maintain our assets, but be configurable enough to accommodate our
internal safety program and standard
operating procedures. We asked for a
solution that keeps us ahead of the
curve—and PROMPTT delivered.”
- Paul M. Mosvold, President & COO
PROMPTT operates in real—time and
all activity is centrally monitored.
“When I scan my user RFID tag,
PROMPTT tells me exactly what I need
to do and how to do it. There is no
more guess work about the condition
of the equipment.”
- Hector Baltierra, Driller/Vision
Electronic filing — “PROMPTT has been
a tremendous help in reducing the
amount of paperwork needing to be
filed. Its as easy as clicking a button to
find work history on the components
we operate. The tasking helps us to
maintain our equipment at high standards.”
- Jeremy Eaton, Rig Manager/Star
“Because of PROMPT, our rig crews are
better equipped to perform their tasks
throughout the day completely and
safely”
- Luke King, Director of HR/HSE
PROMPTT is our resource management tool that allows us to track and
manage our assets, helps direct daily/
weekly/monthly checks of key components on the rigs and greatly supports
and enhances our safety program.
With good data going in, we will be
able to utilize the system to help improve our preventive maintenance
activities with less downtime and higher customer satisfaction as our goal.
- Joe Ward, Project Manager
- WE recognize and celebrate our
achievements as a TEAM
Health, Safety and Environmental— Getting Ready for the Heat
Staying hydrated is important - every organ, cell and tissue in your body depends on water
for survival. Proper hydration also addresses a bevy of health concerns, from dry mouth
and bad breath to gallstones and irregularity. Each day you lose water by simply going to
the bathroom, sweating and breathing. Replacing these lost fluids is vital to preventing
dehydration. Some common symptoms of dehydration include:
• Infrequent urination
• Urine that is darker in color than usual
• Extreme thirst
• Dry mouth
• Sleepiness or fatigue
• Headache
• Feeling dizzy or lightheaded
• Confusion
You can help prevent dehydration by following these simple steps:
 Keep a bottle of water on hand. Sipping on water throughout the day will help prevent
dehydration. Add a slice of lemon or lime for flavor, if you like.
• Make it a point to drink a glass of water when you wake and before bed.
• Eat fruits and vegetables. They are naturally water-dense, especially citrus fruits, watermelon, lettuce and tomatoes.
• Drink water before you begin work, as well as during and after.
 Drink plenty of water on days off and stay acclimated to the outdoors
 Hydrate with water on days off and stay acclimated to the heat by continuing outdoor
activities.
I would like to thank each of you for your determination and dedication through this
current market we are in. The 1st quarter of 2015 started out with four (4) OSHA recordable incidents. Though the stress of uncertainty played a part, it still boils down to
poor or lacking situation awareness on the individual and leadership. Many rigs have
proven this type work can be done completely and safely. It is everyone's responsibility to ensure the safety and well being of yourself and those around you. Our severity
rate has dropped to a .66 which is great, but the frequency of incidents remains high
over a rolling twelve (12) month period. Through this downturn, we have opted to
retain those individuals that support our culture by applying the tools we have in place
to reduce human error. I ask that each of you continue to focus on performing your
tasks completely and safely so that you can return home to the ones you love the
same way you came to work.
To the spouses of our employees— Thanks to each of you for sharing your husbands
with us and for the support you provide on the home-front. They are with us today
because of who you are…...God Bless!
- Luke King
Scandrill is proud to announce that on
April 8th 2015 WE have worked a full year
without having a Lost Time Incident (LTI).
What this means is that for the last year
we have not hurt anyone in our company
serious enough that they had to miss any
time from work. We are confident that
this is a direct correlation with continuous
use of our SCOPE program. By taking the
time to SCOPE our work we are identifying hazards and anticipating error-likely
situations before starting our work and
we are putting adequate defenses in
place to mitigate or eliminate them. We
are also using Situation Awareness during
the full operation and using Stop Work
when something comes up or the plan
changes. This is evident by the ratio of
Near Miss Incidents (NMI) to Information
Only (IFO) (Incidents where body contact
is made) when you compare the first four
months of 2014 to the first four months
of 2015. In 2014 we had 31 NMI, and 33
IFO incidents reported meaning that
pretty much 50% of the time when an
incident happened body contact was
made. So far this year we have had 149
NMI, and only 27 IFO reported. What’s
better is that most of these NMI have
been good catches and no actual incident
has happened. This is great because we
get to capture a lesson learned without
having a negative outcome.
Congratulations to the crews
of the Scan Freedom for
achieving two years without
an OSHA recordable on
3/6/15…Outstanding!!
The following key leaders have successfully completed one or more years of
working without a recordable incident
to a crew member under their leadership.
Rig Manager James Manderud of the
Scan Pride has gone 4 years.
Rig Manager Wes Dean of the Scan
Vision has gone 1 year.
Drillers: Ricky Moore, William Fitzgerald, Eric Blake, and Hector Baltierra
have all gone 4 years this quarter.
Drillers: Jesus Guerrero and Adam
Bleckley have gone 3 years.
Drillers: JonBruce Trotter, Richard Tucker, and Clint Miller have all gone 1 year.
Thanks for keeping your men safe!
In Loving Memory
One year has passed since Martin went
home to be with his Lord in Heaven.
Aaron and Tyson Cooke and Family
HUMAN RESOURCES—OPEN ENROLLMENT
Just a friendly reminder to everyone that open enrollment is May 1st through May 31st.
Any changes are effective June 1st. It is a good idea to take a look at the insurance coverage you currently have so you can determine if there are any changes you would like to
make. If you need a reminder or a list of the coverage you currently have in place, please
call the Benefits Department in Houston for that information.
Remember, it is during this time only that you can add or remove dependents, (unless
there is a qualifying event). And it is the time that you can add or delete Aflac policies
from your portfolio. Our Aflac representative, Ana, will be coming to the rigs to cover what
changes/additions/deletions you might have so she can give the Benefits Department all
the information for open enrollment. Please make sure that you complete a Blue Cross
Blue Shield application for any changes to the health and/or dental insurance and a Davis
Vision application for the vision insurance.
Cyndee Dabelgott, CPP
Payroll and Benefits Administrator
281-496-5571
cdabelgott@scandrill.com
We miss him, his smile, his visions, his
style, his chair, his desk, his children – all
seven.
“Scandrill” was his precious, successful
endeavor. He loved land rigs, “rig hands”,
office workers – all clever.
Some years were hard, but he made it
through because of God’s help and your
faithfulness too.
Once more we experience tough times in
drilling. But “Scan” will survive thanks to
you who are willing .
To work and endure until better times
come and they will for sure when the bad
days are done.
I am thankful to God who is able to keep
all of us in His care. That makes “Scandrill”
unique.
Poem from Astri Mosvold – May 9th, 2015
Importance of Health Insurance
Even if you are in good health, having health insurance is important. You never know when you or your family member will have an
accident or get sick. Having good health insurance provides you with an affordable way to get medical care when you need it.
The cost of basic care can quickly add up, but the cost of care for a major illness or injury can be devastating. Medical insurance can
help you prepare for the worst that could happen.
It's also the law. The Affordable Care Act requires that most people have health insurance. If you don't have it, you may have to pay
a penalty. If you think you can't afford it, you may be able to get help paying for it based on your household size and income.