1220 L Street, NW Washington, DC 20005-4070 Executive Committee on Standardization of Oilfield Equipment & Materials (ECS) New Member Orientation

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

Executive Committee on Standardization of Oilfield Equipment

& Materials (ECS)

New Member Orientation

Roland GoodmanManager, Upstream Standards

June 24, 2008Hyatt Regency, Calgary AB, Canada


Presentation will cover:

API background

Value of API standards

Committee organization

Standards development process

Antitrust

Contact information

New Member Orientation


API Background

API formed in 1919 as national trade association to support the U.S. oil and natural gas industry through legislative and regulatory advocacy and standards development

The API Standards Department was formed in 1923, and the first API standard was published in 1924 covering pipe sizes, threads, and couplings

All industry segments are now active in standardization – Exploration & Production, Refining, Marketing, Petroleum Measurement, and Pipeline Transportation


API Roles

Develop industry standards Government advocacy Conduct research Gather statistics Inform government and public Publish technical industry information Provide education Oversee certification programs


API Standards

Foundation of self supporting programs, including API Monogram Program

Basis for worldwide operations

Core of Institute’s technical authority

API publishes ~500 technical standards covering all aspects of the oil and natural gas industry


Value of API Standards

Improved safety and reliability

Improve equipment interchangeability

Reduced compliance costs

Reduced procurement costs

Foundation for company standards

Basis for a majority of the ISO equipment standards in the oil and gas industry


International Standards Activities

API is involved in international standardization via ANSI

Secretariat for ISO TC 67 (Equipment & Materials) and US Technical Advisory Groups (TAGs)

~70% of ISO TC 67’s international work program is based on API standards

Several API standards committee members also participate on ISO committees


Standards Development Process

API is an ANSI-accredited Standards Developing Organization (SDO)

Open, transparent consensus process

Approved and published procedures

Parliamentary procedures (booklet)

Regular program audits


E&P Standards Committees ECS:

– Supervises work of subcommittees

– Coordinates cross-subcommittee issues

– Approves standards research

Subcommittees:

– Develops maintains standards

– Serves as the consensus voting body

– Supervises standards research


ECS Organization ChartUpstream Committee

ECSExecutive Committee on Standardization

Subcommittee 15 (SC 15)Fiberglass and Plastic Tubulars

Subcommittee 5 (SC 5)Tubular Goods

Subcommittee 17 (SC 17)Subsea Production Equipment

Subcommittee 18 (SC 18)Quality

Subcommittee 10 (SC 10)Well Cements

Subcommittee 19 (SC 19)Completion Equipment

Subcommittee 11 (SC 11)Field Operating Equipment

Subcommittee 20 (SC 20)Supply Chain Management

Subcommittee 13 (SC 13)Drilling, Completion, and Fracturing Fluids

GCSPGeneral Committee on Special Programs

Subcommittee 8 (SC 8)Drilling Structures and Equipment

Subcommittee 6 (SC 6)Valves and Wellhead Equipment

Subcommittee 2 (SC 2)Offshore Structures


Standards Development Process

Developed by consensus (does not mean unanimity)

Subcommittee members are voters

Voting categories are established in some subcommittees

One company – One vote

Balance between owner/users, manufacturers, contractors, and consultants

Entire process typically takes 12-36 months (balloting/comment resolution 3-12 months)

API corporate membership is not a requirement for participation on API standardization committees


Requirements for Standards Committee Membership

Be technically proficient in a discipline related to the standard

Attend two committee meetings per year

Agree to work on committee business such as standards revisions and technical inquiries

Have the support of company management to participate


Antitrust Concerns

Standards meetings are gatherings of competing operators, manufacturers, and suppliers

U.S. antitrust laws impose restrictions on what we can and cannot do:– We can work on standards– We CANNOT share business plans– We CANNOT disparage another company’s

products or services– We CANNOT exchange price, cost, or production

data


Antitrust Concerns (cont.)

Development and interpretation of standards are sensitive activities

AVOID:– Anti-competitive activities– Conflicts of interest– Bias or lack of objectivity

The API Antitrust Compliance Guide is available in your new member packet


API Information Links

Committee Websites – http://committees.api.org/standards/ecs/index.html

Ballot System – http://ballots.api.org/

Meeting Information – www.api.org/meetings

Catalog of Publications – www.api.org/cat

Document Sales – IHS (800) 854-7179 or www.ihs.com


API Standards Contact Information David Miller, Director, API Standards Program, [email protected], (202) 682-8159

Roland Goodman, Manager Upstream Standards, [email protected], (202) 682-8571;SC 2, SC 8, SC 19, SC 20

Ed Baniak, Senior Standards Associate, [email protected], (202) 682-8135;SC 6, SC 11, SC 17, SC 18

Brad Bellinger, Senior Standards Associate, [email protected], (202) 682-8073;SC 5, SC 10, SC 13, SC 15

Carriann Kuryla, Program Assistant, [email protected], (202) 682-8565;ballot system, rosters updates, website

Gerardo Uria, Manager - Monogram/APIQR, [email protected], (202) 682-8522;Monogram program administration

Chip Evans, Global Services Manager, [email protected] (713) 964-2662;Monogram program applications

Documents

1220 L Street, NW Washington, DC 20005-4070 Executive Committee on Standardization of Oilfield Equipment & Materials (ECS) New Member Orientation