SDI: The Dark Horse of Drilling, Competing with Giants Despite Ranking Fifth in Revenue

Scientific Drilling International (SDI) knows it is not the largest operation in its industry – it ranks fifth in revenue behind industry giants Baker Hughes, Halliburton, Schlumberger and Weatherford – but that doesn’t mean the company isn’t competitive. In fact, SDI has been able to capture a significant portion of the wellbore navigation market in the U.S. oil and gas industry because of its well-organized operation, comprehensive services and development and application of new technology.

“We build all of our technology in-house,” Vice President of Marketing Len Duncan says. “We have the capability to build all the way down to the sensor level, which is unique – the big guys don’t even do that. Our capabilities allow us to react quickly to market changes, which is exactly what our customers need.”

Based in Houston, SDI was founded in 1969 when it introduced the oil and gas industry’s first commercial steering tool – the EYE. Since then, SDI has focused on developing systems for directional drilling, high accuracy surveying, specialized memory logging systems and measurement/logging while drilling (MWD/LWD) applications. The company stresses it is the only firm to offer a complete high-end wellbore navigation solution for projects.

SDI also has grown to serve a wide range of customers by developing a global presence. In addition to its 13 offices in the United States, SDI has operations in Canada, Europe, Australia, Asia and the Middle East, with new offices in Russia, China, Libya and Nicaragua.

“We are unique in that we offer many of the same services as the big guys on a competitive basis,” Duncan notes. “We see opportunities for continued growth in the next two years.”

Ensuring Accuracy
SDI’s services fall into four core categories: survey and steering, MWD and LWD, production logging and directional drilling. What remains constant among all of these services is the company’s dedication to responding quickly to its customers and meeting their needs in a comprehensive manner. The engineering division in California works to develop new technology to improve and expand the company’s product offerings. It also is able to adapt technology for specific circumstances. These traits were demonstrated recently when SDI was working with a customer.

“This customer had us on location with our full package of services when, unexpectedly, our MWD data was being corrupted by noise from the mud pump,” Duncan explains. “This was a unique design of a pump and it was causing significant data corruption.

“A task force was assigned to the project and an around-the-clock effort resulted in a custom-built software filter that overcame the problem and allowed the MWD communications to resume normal operations,” he continues. “It was a great value to our customer because we were able to give them a solution to their problem in a really short space of time – we had solved their problem in less than 48 hours.”

SDI’s primary objective is to develop technology and systems that will allow it to provide customers with “fit for purpose” solutions, both technically and commercially, Duncan says.

MINING ACTIVITY
Scientific Drilling also is known for its services to the mining industry. In Canada, for instance, SDI’s high accuracy gyro – the Keeper – has been used regularly to map ore bodies for mining around North Bay, Ontario. Keeper gyro surveys also are used to map ore bodies in the Northwest Territories supporting the diamond mining industry. Mapping ore bodies continues in Saskatchewan supporting both the uranium and potash industries, Duncan notes.

SDI also is supporting the potash industry in the construction of mine shafts. The Blairmore Formation, a prolific water-producing zone, must be controlled prior to mine shaft excavation, Duncan says. Closely spaced boreholes are drilled around the shaft construction area, and then super-cooled brine water is circulated through the boreholes to freeze the Blairmore Formation and abate the flow of water. SDI’s directional drilling service with gyroscopic MWD is used to accurately place the boreholes, which typically have less than two meters separation.

In the United States, SDI has been providing services on various mining projects since the early 1990s.

Since the late 1990s, SDI’s high accuracy Keeper Gyro has serviced the Australian mining industry, where it was introduced in the Kalgoorlie Goldfields. A rapid market acceptance saw SDI’s Keeper run across all of Western Australia, Tasmania and into New South Wales for hundreds of mining companies, ranging from the super majors through to small exploration firms. This is primarily used as a definitive survey instrument on diamond and RC rigs and on underground delineation mining, as well as for Navi runs and for monitoring hole verticality on critical pilot wells. The Keeper recently has been reintroduced to the Australian mining sector with SDI’s partner Gyro Australia, and is rapidly regaining market share due to its technical superiority, Duncan says.

CONTINUED GROWTH
Development of new technology and systems is a continuous practice for SDI because it strives to always improve its customers’ operations. Some of the company’s newest products include:

Down-hole vibrating tool – The oscillating movement of this tool improves directional drilling operations by providing smoother drilling and lessening the chance of sidewall sticking.

Tuning fork density tool – This measures fluid density at the fork – as the density of the fluid changes, the resonant frequency of the tuning fork also changes.

Smart motor geosteering system – This enhances navigation in horizontal and directional wellbores. Equipped with SDI’s proprietary communication system, the geosteering system provides real-time, wireless communication between the MWD and motor.

“Clients always want us to drill faster, so we develop systems that can help us do that,” Duncan says. “A well that used to take 20 days to drill now takes five days in some cases, and our technology is helping to reduce that time.”

He believes that new products and services, in addition to geographic expansion, will help SDI continue to grow.

“We have a great team here – there is very little attrition and turnover, so it’s like a family with the amount of company loyalty and dedication there is,” he says. “Our customers like that – they can see that everyone is working toward the same goal. Customers like working with us because we pay attention to what they tell us and focus on their needs.”