American Oil and Gas Reporter - September 2015 - 115

SpecialReport: Tubulars Technology
* DWC/CTM-IS PLUS, an internal
shoulder version of the company's rotating-with-casing connection that provides
enhanced performance and simplifies
make-up running operations;
* VAM HTTCTM, which allows operators to rotate down hole at extreme
torques (i.e., 51⁄2-inch, 23-pound P110EC
can withstand 35,000 foot pounds); and
* VAM BOLTTM, a high-clearance
connection for the 113⁄4-18 inch pipe
needed offshore.
"Along with introducing new connections, we have initiated a yearly training
program for our VAM field service teams,"
Cole reports. "Our competency management system is controlled, maintained
and validated by third parties to ensure
all of our field technicians have the same
theoretical and practical expertise. Our
goal is to make sure our field hands have
the skill to prevent or fix connection
problems before they cost customers in
terms of well security or money."

Shortening Lead Times
According to Randy Boswell, president
of Energex Tube, minimizing the time
between an order and delivery remains
as critical as ever. "Pipe inventories are
so high that anyone who wants to buy
pipe has plenty of options," he observes.
"To get their business, we have to be
able to turn orders around quickly.
"Toward that end, we are improving
our flexibility, particularly our ability to
roll pipe on short notice at several facilities," Boswell says. "At our Harrow, Ontario, and Niles, Oh., facilities, we moved
from inserting rollings on an as-needed
basis to making casing part of the regular
schedule. That way, if an order does not
fit into the schedule at our Blytheville,
Ar., facility, we have a good chance of
getting it out of Harrow or Niles on time."
The company also is taking steps to
make the Harrow and Niles facilities
more efficient. "We have looked at our
tooling and our manufacturing processes
to increase our yields," Boswell details.
"Over the past year, we have gained the
experience and knowledge to minimize
our yield losses, which is making the
mills more cost effective."
Thanks to these efficiency improvements and a strong maintenance program
that limits equipment downtime, Boswell
says Energex generally can deliver a
product in 30-40 days.
"As the market recovers and activity
becomes more robust, we will continue
to focus on short lead times," he says.

Energex Tube is taking steps to improve its production processes. The company says
this is one reason it can offer short lead times, which reduce risk by taking inventory
out of the supply chain.

"Our goal is to produce each type of pipe
frequently enough that end-users and distributors can take inventory risk out of
the supply chain."
Even small reductions in lead times
can make a tremendous difference,
Boswell says. "Shortening lead times by
10 days can take 18-20 percent of the inventory out of the supply chain," he calculates. "If the estimated 2.8 million tons
in inventory as of mid-August is worth
$5 billion, that would free $1 billion for
other parts of the business."
Boswell says the smaller inventories
could give operators more flexibility. "If
we are working on a short supply chain
to keep our distributors' inventories small,
they will be able to adapt to customers'
string design changes more quickly," he
explains.

Enhanced Grades
As operators continue to push the envelope, voestalpine has broadened its
product offering, says Robert Scott, the
president for the company's U.S. subsidiary. "We have developed casing grades
with higher internal yield properties and
higher collapse values than standard API
products," he says. "In addition to enabling
higher fracturing pressures, these grades
often allow the operator to drop down a
full wall thickness when selecting casing
dimensions, reducing their costs."
According to Scott, the grades are
designated "EP" for "enhanced properties"
or "XP" for "extreme properties." For
example, VA-EP-P110 would have minimum collapse and internal yield properties
that exceed the standard API product,

with VA-XP-P110 offering even higher
minimum values. "Our family of premium
connections complements these grades
and assures the integrity of the casing
string," Scott adds.
"For applications that require high
strength and sour service, voestalpine has
developed VA-S-110 and VA-S-125,
which have a minimum yield strengths of
110,000 psi and 125,000 psi, respectively,"
Scott continues. "Both grades offer resistance to mildly sour gas environments.
We urge operators to use premium connections when considering these sensitive
high-strength grades, as hoop stress can
become an issue is sour environments."
To improve its quality assurance and
research capabilities, voestalpine has invested $20 million in a new testing facility,
Scott reports. "In addition to standard
mechanical property testing, this facility
is equipped with two load frames and a
bucking unit for testing premium connections according to the latest ISO or
API standards," he says.
"The facility also has a sour gas laboratory with enough capacity for 144
NACE TM-01-77 Method A specimens
each month and about twice that capacity
for Method D specimens," he adds.
The company is upgrading its facilities
to ensure it can meet future demands,
Scott goes on. For example, he points
out that voestalpine is increasing its heat
treat capacity in order to produce more
high-strength OCTG.
"We also are upgrading the rolling
and handling equipment in the hot mill
to produce heavier-walled tubes with uniSEPTEMBER 2015 115

American Oil and Gas Reporter - September 2015

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