American Oil and Gas Reporter - December 2022 - 62

SpecialReport: Well Control & Insurance
Due diligence, technical analysis, personnel
training and early risk detection are
universally important to eliminating all
types of wellsite safety risks-especially
in terms of well control, according to Brian
Krause with JH Blades and Company.
" The best advice includes calling
early, " Krause says. " Do not wait. Identifying
a potential issue before it can become
a problem is key. "
While that advice seems logical, historically
it has proven challenging to implement
in practice. As a result, Krause
indicates that a significant catalyst in
seeking well control assistance early on
from insurance and well control companies
has been found in the form of incentives.
By partnering with well control companies,
insurance providers can better manage
risk and help operators avoid a loss.
Krause says that if oil and gas companies
refrain from focusing on getting
wells drilled without extra expenditures
and creating cultures that frown upon
voicing problems, steps can be taken to
welcome programs that influence proactive
behavior in avoiding incidents. With a
concentration on early intervention pollution
and mitigation control, JH Blades
and Company has teamed with Wild Well
Control to initiate the Kick Assistance
Program (KAP).
Financial Incentive
In many cases, early signs arise that
indicate conditions that can potentially
lead to a loss of well control. Through
KAP, Krause explains that oil and gas
companies can seek assistance immediately
upon recognizing an issue or early
indicator, including an initial kick. By
participating in KAP, Wild Well Control
can step in and offer recommendations
to avoid an incident while limiting any
financial impact of making the call.
KAP provides a financial incentive to
offset any concerns about the unplanned
expense of consulting with a well control
specialist at the earliest stages. According
to Krause, the insurance provider will
pay up to $50,000 if the oil and gas company
calls early at the onset of an issue
and refrains from having to make an insurance
claim.
The program brings years of combined
experience from JH Blades and Company
and Wild Well Control to offer effective
solutions to potential well control events,
while the financial incentive gives operators
the confidence to make the call as
soon as a potential issue is detected,
Krause details.
" You have to have the credibility and
expertise to solve the issue when a call
comes in, " says Krause when describing
the partnership with Wild Well Control.
" The goal is to respond as quickly, safely
and effectively as possible at the earliest
possible moment to avoid a full-blown
well control incident. "
The JH Blades-Wild Well Control alliance
focuses on incident avoidance
through education. Considering ongoing
supply chain delays and labor shortages,
training plays an essential role in managing
risk. The industry lost many skilled professionals
with decades of experience
and knowledge through the pandemic,
and Krause notes that the increased level
of field activity in the post-Covid environment
is accompanied by a necessary
increase in new hires.
Robust training programs can close
the gap in the knowledge shortage, he
goes on. Further incentives exist with
50% discounts on class costs for well
control certifications earned through the
professionals at Wild Well Control. Additionally,
oil and gas companies can
benefit from soliciting prepurchased assistance
in well and equipment inspections
exercised before initiating acquisition,
he says.
" The more preventative and proactive
the oil and gas company operates, the
better the chance to earn a more competitive
rate during the underwriting process, "
Krause points out.
A Close Bond
Well control companies have embraced
the opportunity to assist insurance companies
in managing risk, says David
Moody, Wild Well Control's senior vice
president of technical support.
" Our response business is our core busiIn
addition to offering accredited well control training with realistic simulations, Wild Well
Control is partnering with JH Blades and Company to provide early response solutions
through the Kick Assistance Program. KAP provides a financial incentive of up to $50,000
to offset concerns about the unplanned expense of consulting with a well control specialist
at the earliest possible problem identification stage.
62 THE AMERICAN OIL & GAS REPORTER
ness, " Moody remarks. " The need facilitated
an opportunity to form a relationship with
the insurance industry in dealing with risk
mitigation, emergency response and other
areas, including drilling. "
Because Wild Well Control features
the ability to manage a loss of well control
before and after, the company has retained
the ability to serve regardless of industry
trends. According to Moody, the risk mitigation
piece aids in forming a close
bond with the insurance industry to best
serve the industry.
Historically, interactions between the
well control company and the oil and
gas company involved responding to the
operator's request for service after an
incident occurred. The operator would
file a claim with the insurance company
and pay the well control company. According
to Moody, the relationship has
evolved far past that. Once again, the
service has grown from simply a response
to a proactive bundle of provisional services.
With
an estimated 15%-25% rate increase

American Oil and Gas Reporter - December 2022

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