American Oil and Gas Reporter - September 2015 - 109

SpecialReport: Tubulars Technology

OCTG Suppliers Continue To Innovate
By Colter Cookson

Whether it's the Avengers' Thor, the
Justice League's Superman, or the XMen's Beast, almost every superhero
team has one member with exceptional
strength. In the world of oil and gas,
casing, drill pipe and production tubing
not only play the role of the strongmen,
but also have to cope with everything
from corrosive liquids and gases to extreme
pressures. In short, oil country tubular
goods need to be tough. Really tough.
Fortunately, the latest generations of
casing, drill pipe, tubulars and connections
are exactly that. Their strength is "designed
in" by manufacturers focused on developing innovative, yet cost-conscious solutions capable of withstanding everything
from the high torque needed to get casing
to bottom in long laterals, to the extreme
temperatures and pressures encountered
in deepwater wells.
OCTG manufacturers report they continue to look across the board for ways
to reduce product costs. In addition to
offering more affordable alternatives to
traditional grades, they say they are refining their production and distribution
processes to uncover savings and shorten
lead times.
"The oil and gas industry is not for the
faint of heart," observes David J. Rintoul,
senior vice president of tubular business
for United States Steel Corporation. "Lower

oil prices dictate that we must think outside
the box to provide solutions that are not
only innovative, but also cost effective
for the customer. Like many of our peers,
we are working on that front both technically and commercially."
On the commercial side, Rintoul points
out that U. S. Steel Tubular Products has
relocated its headquarters from Pittsburgh
to Houston. "We want to be close to our
customers and engaged in their business
so we can be a source of value-added
services and a problem solver for them,"
he says.
"Our goal is to be a good partner to
our customers," Rintoul continues. "We
are positioning ourselves so that we can
not only provide on-site rig services when
they are running our products, but also
be involved from the infancy of a project
and provide innovative solutions to the
challenges they face as they continue to
drill more demanding wells. Whether
those wells call for higher collapse values
or different seal arrangements, we are
expanding our technology to ensure we
have the right solutions available."
To support those efforts, U. S. Steel
has opened a test facility at its offshore
operations location in Houston. "With
this facility, our research and development
teams have robust computer and finite
element analysis resources, as well as
the physical laboratory and equipment to
run new products through their paces so

These trucks are taking United States Steel Tubular Products pipe threaded with the new
USS-LIBERTY TC™ premium connection to the Marcellus. The company says it plans to
release two more connections this year as part of a broader effort to provide solutions for
a range of demanding environments.

we can hone and optimize designs," he
says.
"We are proud of this investment," he
comments. "It is a strategic move to help
us develop a full product line of proprietary
premium and semipremium connections."
Since January, U. S. Steel Tubular Products has introduced two connections. Rintoul
says the latest is the USS-LIBERTY TCTM,
a premium casing connection that incorporates a proprietary thread form with a
metal-to-metal seal and shoulder configuration that improves collapse, compression
and torque performance. He describes the
connection as ideal for horizontal and extended-reach wells, in addition to sour
service. It has been tested to API RP
5C5:2014 CAL IV, which Rintoul notes is
the most stringent and modern standard in
the industry.
"We will introduce two more connections before year's end," he offers. "At
that point, we will have a broad spectrum
of connections that can service everything
from the demands of fracturing and corrosive environments to the unique requirements in Canada or the Gulf of
Mexico."
To support manufacturing these premium connections, U. S. Steel is constructing a tubular products coupling facility at its steel-making plant in Fairfield,
Al. "We are investing in the equipment
necessary to thread pipe and make the
couplings using industry-leading processes
so the hard work we put into designing
premium connections is matched by the
same level of expertise in manufacturing
them," Rintoul says.
The company also is building an electric arc furnace and degasser at Fairfield,
a $230 million investment. "By installing
a state-of-the-art electric arc furnace and
degasser, we will become more effective
and efficient on rounds," he says. "Furthermore, we will be nearly self-sufficient.
With control of all our melt, we will be
able to apply U. S. Steel's rich experience
as a steel maker to produce new OCTG
steel grades as markets move and our
customers' needs change."
Partnering With Producers
One silver lining in the current oil
price environment is that it has given
OCTG suppliers an opportunity to work
more closely with oil and gas producers,
suggests Scott Barnes, senior vice president
SEPTEMBER 2015 109

American Oil and Gas Reporter - September 2015

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