B E L T D R I V E S O L U T I O N S F O R OIL & GAS DRILLING AND PRODUCTION. The Driving Force in Power Transmission

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1 B E L T D R I V E S O L U T I O N S F O R OIL & GAS DRILLING AND PRODUCTION The Driving Force in Power Transmission

2 Dear Gates Industrial Power Transmission Distributor, We are excited to share this chapter of the Gates Energy Market Focused Selling Kit with you. We have developed this comprehensive sales tool because we believe that it will make you and Gates an even more effective team in delivering efficient power transmission solutions in the growing energy market to both existing customers and prospects in your territory. This chapter Oil & Gas Drilling and Production provides detailed information as to where Gates belt drives are used on equipment throughout the process. Additional chapters of the Energy Market Focused Sales Kit are also available to you and your sales and marketing team. Please contact your local Gates representative to discuss your needs. We expect that this new tool will be helpful in expanding your sales in these energy markets and we hope that you will provide us with your ideas and any feedback on how we can improve these and other Gates Market Focused Selling Kits in the future. Thank you. Tom Wells Director of Sales Gates Industrial Power Transmission

3 OIL & GAS DRILLING AND PRODUCTION Top 10 States with Operating Drilling Rigs (Baker Hughes Rig Count as of 5/2/08) 1. Texas Oklahoma Louisiana Colorado New Mexico Wyoming North Dakota Arkansas Utah California 36 SIC 1311 Crude Petroleum and Natural Gas 1321 Natural Gas Liquids 1381 Drilling Oil and Gas Wells 1382 Oil and Gas Field Exploration Services 1389 Oil and Gas Field Exploration Services, Misc 3533 Oil and Gas Field Machinery and Equipment NAICS Crude Petroleum and Natural Gas Extraction Natural Gas Liquid Extraction Drilling Oil and Gas Wells Support Activities for Oil and Gas Operations Oil and Gas Field Machinery and Equipment Manufacturing OVERVIEW As of 5/2/08, there were 1,839 land and offshore rigs drilling for oil and natural gas in the U.S. and 95 rigs operating in Canada. Operating drilling rigs in the U.S. increased by 92 rigs over 2007; in Canada, rig count increased by 6 rigs during the same period. 97% of the natural gas consumed in the United States is produced in North America; 84% comes from within the U.S. and 13% is imported from Canada.

4 THE DRIL ENGINE GENERATOR SETS MUD PUMPS SHALE SHAKERS G A T E S P R O WIN D U C T S O L U T I O N S Replace existing belts with better Gates products Offering Gates Super HC V-belts as replacement belts on fans, generators, motors, compressors, etc., is a winning first step. Super HC belts transmit up to three times the horsepower of classical cross-sections belts in the same amount of drive space.

5 LING RIG Rotary rigs are erected on sites within suspected gas or oil fields to drill into the earth in preparation for extraction. Prime equipment targets for belt replacements and drive conversions: Mud pumps circulate mud and drilling fluids Shale shakers remove debris from mud and fluids Engine generator sets provide power for equipment General rig components with potential belt drive applications: Diesel engines Motors and compressors Fans GATES BELT MAINTENANCE TOOLS The best way to extend belt life is to properly align and tension belts. Gates maintenance tools should be available for use during each site visit. Sonic Tension Meter 507C This electronic device measures the natural frequency of a free stationary belt span and instantly computes the static belt tension. It should be used any time a synchronous or V-belt is installed and then on a regular basis to check for V-belt elongation. Gates product # EZ Align This precision laser alignment device quickly and clearly identifies all alignment issues. One part of the devise is placed on the driven sprocket or sheave and the other on the driver. A laser light shines on markings clearly indicating any parallel or angular misalignments. Gates product # WIN-WIN Upgrade to better performance, higher efficiency Contact your Gates Sales Representative or a Gates Application and longer life Engineer (ptpasupport@gates.com) for assistance in quoting Many customers aren t aware that metal sheaves wear out. Nor the best drive system solutions. Not only will your customer are they aware that Gates offers drive systems that outperform and benefit from improved performance and belt life but your sales outlast the drive provided by the original equipment manufacturer. dollars will triple when you sell new metals with the belts!

6 MUD PUMP One key belt-driven piece of equipment on a drilling rig is the mud pump. The mud pump circulates mud and other drilling fluids into the hole to remove cuttings from the bottom of the well, clean cuttings from the drill bit teeth and cool the bit from heat generated by the friction of drilling. G A T E S P R O WIN D U C T S O L U T I O N S Extend belt service life In drilling operations, most equipment is run until it doesn t run anymore. Replacing standard competitor classical V-belts with Gates Hi-Power II V-belts will increase the number of hours in service between belt changes.

7 SHALE SHAKER MUD PUMP BLOW-OFF SOLVED BY CHANGING BELTS A shale shaker uses a series of trays with sieves or screens that vibrate to remove cuttings and debris from mud and other circulating fluids. A drilling rig in Texas was experiencing belts blowing off the mud pump drives. The mud pump was driven by two 1000 horsepower motors, each configured with two 4-strand 8V belts. The Gates District Sales Manager used Gates DesignFlex Pro software and determined the drive was underrated with standard V-belts. Changing to Gates Predator V-belts, with aramid tensile cord, was the perfect solution. The drives did not have to be redesigned and drilling promptly resumed with no belt blow-off. WIN-WIN Upgrade to the best problem-solving belt available If the customer is using classical V-belts (A E) they should switch to narrow V-belts (3V, 5V, 8V) for several reasons. First, they will be able to purchase less metal. Narrow V-belts operate on smaller diameter sheaves and require less face-width per belt than their classical counterparts which translates to fewer required grooves. Second, they will be purchasing fewer belts. Narrow belts, such as Gates Super HC V-belts, have a higher power density and therefore transmit up to three times the horsepower of classical V-belts.

8 SERVICE RIG Oil and gas wells often require maintenance or service after production has begun. Mobile well service rigs are employed to restore or increase production. After the wellhead or pump jack is removed, the service rig is used to pull downhole equipment, treat or clean the wellbore, replace equipment and perform a variety of other services. The self-contained service rig itself is equipped with motors, pumps (including mud pumps), compressors and other equipment typically driven by belt drives. G A T E S P R O WIN D U C T S O L U T I O N S Replace ordinary belts for longer life Replace competitor timing belt drives with Gates synchronous belt drive systems. PowerGrip GT belts are available in nearly every size. Poly Chain GT Carbon belts, with carbon tensile member, assure that the belts will outlast the competition and don t require maintenance when properly installed.

9 WELLHEAD COMPRESSOR COUNT ON GATES BELT DRIVES IN REMOTE LOCATIONS For wells that lack adequate pressure to maintain sufficient oil or gas flow, wellhead compressors (rotary vane, screw, liquid ring and reciprocating types) are installed. These are powered by electric or gas engines in the 5 to 300 horsepower range. There are also compressor stations about every 40 to 100 miles along gas pipelines to keep the gas streaming. Multiple compressor shacks exist along a major gas pipeline in Canada. Due to their distance from communities as well as their distance from each other, it was a requirement that belts on compressor drives last at least 20,000 hours without maintenance or failure. Poly Chain GT Carbon belt drive systems exceed this expectation when properly installed. WIN-WIN Convert roller chain to Gates belts and metals Roller chain drives can be found on several service rig applications. Roller chain has to constantly be lubricated and maintained. Gates DesignFlex Pro software can be used to determine the information necessary to convert from roller chain to a Poly Chain GT Carbon drive. Switching to Poly Chain Carbon belts eliminates the need for all maintenance including messy lubrication. The added advantage of not having a cabinet full of greasy metal components will be a welcome relief for customers.

10 PUMP JACK After the hole has been drilled and a petroleum reservoir discovered, a pump jack (also called a beam pump, grasshopper, thirsty bird, nodding donkey or horsehead pump) is installed to bring the oil to the surface. A pump jack is commonly powered by an electric motor that runs one or more belt drives connected to the transmission which, in turn, drives a pair of cranks. G A T E S P R O D U C T S O L U T I O N S WIN Increase power in the same drive space Replacing existing V-belts with Gates Super HC V-belts is a good first step in improving performance on pump jack units. Super HC belts transmit up to three times the horsepower of the classical cross-sections in the same amount of drive space and will increase hours of service between belt changes. WIN- WIN Upgrade for higher performance and longer life Convert existing V-belt drives to Gates Predator V-belt drive systems. Pump jacks are known for tearing through belts. In fact, they are one of the tough applications for which Predator belts were designed and engineered. Predator belts feature aramid tensile cords that reduce stretch and make the belt pound-for-pound stronger than steel. The bareback cover resists debris, reduces heat buildup and allows for slip under extreme shock loads. By evaluating the drive with Gates Design Flex program, it may even be possible to reduce the number of belts by switching to Predator belts. Not only will the customer not have to change their belts as frequently but additionally there will be fewer belts to change. Customers benefit from improved performance and your sales dollars will triple when you sell new metal with the belts!

11 OIL & GAS DRILLING AND PRODUCTION PARTNER WITH GATES TO SOLVE PROBLEMS AND ADD VALUE FOR YOUR CUSTOMERS To maximize the service life of your customers' belt drive systems, enhance performance and create value for their drive investment, your Gates representative will work in partnership with you to provide the following services: Conduct a Preventive Maintenance Seminar at a customer location Survey troublesome belt drives Analyze cost and energy savings for drive conversions Use Gates DesignFlex software to design more efficient and effective drives Discuss maintenance issues and demonstrate a variety of Gates maintenance tools For design and engineering assistance, contact Gates Power Transmission Engineering Support at ptpasupport@gates.com PTPLACE.COM THE ONLINE STORE FOR POWER TRANSMISSION DISTRIBUTORS PTplace.com offers authorized Gates power transmission distributors the convenience of a single web site for ordering products from Gates and eight other power transmission brands. The CoLinx Logistics Network's benefits include state-of-the-art warehouse management and strategic locations. All Gates power transmission products are available for ordering at PTplace.com. Register today at RECOMMENDED CUSTOMER LEAVE-BEHIND PIECES Predator Brochure Form #12798 Details on the most powerful, durable and tough V-belt drive system ever made Matched V-bets V80 Brochure Form #12458-A Describes Gates V-belt matching system that meets and exceeds RMA tolerances Belt Preventive Maintenance and Safety Manual Form #14995 Preventive maintenance and safety manual for Gates belt drives Roller Chain Retrofit Calculator Item #17306-CD Determine the proper Poly Chain GT Carbon belt drive replacement for roller chain drives White Paper: Tension Adjustment on Mud Pumps Form #12700 Technical notes on properly tensioning V-belts on mud pumps. Pumper's Friend Pamphlet Form #12498 Specifications on selecting the right V-belts for pump jacks. EZ Align Flyer Form #17535 Describes the advantage and use of this handy maintenance tool Sonic Tension Meter Brochure Form #17898 Outlines the features and improved belt performance by properly tensioning belts Design Software Flyer Form #14225 Ideal for those who would like to convert or design their own drives Formulas & Calculations Card Item #12490 Handy card that includes common conversion factors and list of safety procedures Sheave Guage Item # Helps to identify worn sheaves and damaged belts Gates Overview Customer Brochure Form #16620 Provides an overall look at the wide variety of Gates power transmission solutions Poly Chain GT Carbon Belt Brochure Form #17605 Outlines the advantages of Poly Chain GT Carbon belt drive systems over roller chain

12 The World s Most Trusted Name in Belts, Hose and Hydraulics. Gates Corporation P.O. Box 5887 Denver, CO Gates Canada, Inc. 225 Henry Street, Bldg. #8 Brantford, Ontario Canada N3S 7R4 Telephone: Fax: Gates Corporation Printed in U.S.A D 6/08