Coiled tubing refers to metal piping, normally 1″ to 3.25″ in diameter, used for interventions in oil and gas wells and sometimes as production tubing in depleted gas wells, which comes spooled on a large reel. Coiled tubing is often used to carry out operations similar to wirelining. The main benefits over wireline are the ability to pump chemicals through the coil and the ability to push it into the hole rather than relying on gravity. A coiled tubing operation is normally performed through the drilling derrick on the oil platform, which is used to support the surface equipment, although on platforms with no drilling facilities a self supporting tower can be used instead. The tool string at the bottom of the coil is often called the bottom hole assembly (BHA). It can range from something as simple as a jetting nozzle, for jobs involving pumping chemicals or cement through the coil, to a larger string of logging tools, depending on the operations.
Coil tubing has also been used as a cheaper version of work-over operations. It is used to perform open hole drilling and milling operations. It can also be used to fracture the reservoir, a process where fluid is pressurised to thousands of psi on a specific point in a well to literally break the rock apart and allow the flow of product. Coil tubing can perform almost any operation for oil well operations if used correctly.
- Data acquisition
- Fracturing multiple zones
- Perforating Milling / Reaming
- Nitrogen delivery system
- Fluid delivery system
Industry trends driving Capex
- Demand for well stimulations
- Increasing safety awareness
- Units utilizing larger injectors, larger tubing diameters, larger diameter is most desirable
- Specialized deep hole systems
- Raised enclosed operators cabin
- As metallurgy and other technologies evolve the depths and capabilities with grow.
- Further Integration with other procedures such as wireline and data relay
Valuations in down cycles…how do you exit?
- Conventional units with low tire flotation will be difficult to liquidate
- Newer units with brand name association, deeper capacities and high flotation will be favoured.
- International brokers
- Manufactures; clientele base
- Advertising targeting; North America, South America, India and Russian markets