Dayrates Affect Rig Safety and Training
Authors: Hammett D. S. , Dudley W. O. 
Published: December 2007

Abstract
This paper presents the safety/ training conditions that exist in a decade where there are "no profit" dayrates. Safety and training programs have been condensed because of limited funds for these functions, however, the continued effort of the drilling contractor to improve safety has not decreased.
For the past fifteen years, the drilling contractors have invested billions of dollars on effective training and safety programs for employees. Reduced revenues of the last 5 years have resulted in curtailment of full time safety/training personnel, however the programs that are still active afford safe operations. Safety and training continue to be a major emphasis of the oil company (Operator) and of the drilling contractor, and the contractor's field supervisors historically were trained to effectively continue safety and training programs. However, due to short term contracts and low dayrates, attrition is taking its toll.
The contractor has major concerns about the people manning his operations. The experience level has dropped. The employee no longer has a feel for future employment and drugs/alcohol abuse have complicated the situation.
The Operators have not changed their requirements for safety and in many cases have tied safety records with the awarding of future contracts to get an adequate effort for safety by all contractors.
In the future, to insure adequate safety and training, the Operator must monetarily compensate the con-, tractor who does have good safety and training programs. The Operator company executive who today has a very profitable operation must be realistic and support the contractor on safety matters. The contractor's field supervisor must also be realistic and he must assume more responsibility to think safety and train his crews to be continually-minded of safety.
Everyone must bear the cost of safety - from the corporation executives to rig crew employees. The drilling contractor is caught in the middle during this decade of hard times.
The industry cannot have the Ostrich Syndrome and just want safety. The Operator must recognize that they cannot expect the contractor to spend money which he does not have available to pay the entire bill for the degree of safety which they want, which is prudent, and which is mandated by Federal and State laws. Safety programs cost money, and it will be necessary for the Operator to share in this cost.
If contractor personnel know their company is being compensated for better safety, their personnel will increase interest to support safety. If the Operator gives only lip service and puts all the burden on the contractor this weakens the message to man on the rig.
It has been suggested that Operator pay $200/day per day the rig is on contract. This money is paid to the contractor and is earmarked for rig safety programs. This would insure that all contractors are improving their safety programs.
This incentive would be recognized by all the crew as a cooperative action of the Operator and the contractor to invest in their future.
There are other incentive programs that could be sponsored by the Operator that would help the entire petroleum industry maintain the improvements made in safety and training over the past decade (Figure 1). In addition, there are specific operations that are controlled by the Operators that require improvements to help maintain the contractor safety. One example is the better packaging for handling of materials (i.e. materials from supply boat to drilling rig). The drilling contractor working with the Operators using current technology will improve safety. Fig. 1Lost-time accident frequency.
Low bid should not be the only consideration for awarding drilling contracts. Safety, training and rig maintenance should be equal considerations.