Water Well Journal
Issue link: http://read.dmtmag.com/i/715953
so they need them back very fast. UPS (United Parcel Service Inc.) shows up about 9:30 in the morning, and that is the main thing we do here is jump on those bits to repair. At 4:30 the same day, we ship them back and do that every day. WWJ: How has the drilling market been in your region of the country? Kevin: The water well industry has taken a downtick because of rural water going in, geothermal has been on a downtick too, and going to bid on a job has become so tight. One of the major things drillers look at is how to lower quote costs. One of the ways to lower costs is to lower the bit costs. I also give lectures on choosing the proper bit for the right formation. A lot of the guys are drilling with the wrong bit and they're drilling way too slow. Geothermal used to be $6 to $8 a foot in North Dakota; now it's $3, and it might be lower than that. Drillers are hav- ing to find out where they can save money. One of the best ways is repairing bits because they can't save money with mud, and they use the same loops. They have to find a differ- ent way to save. It's quick and easy to take care of your bits and repair them. WWJ: What has the price of drill bits been like over the past five to 10 years? Can a contractor purchase a refurbished bit? If so, how common is this? Kevin: Over the last 10 years the price of drag bits has in- creased only slightly and the cost of tungsten carbide has been fairly stable. New tricone bits have increased substantially with new technology in the sealed bearings. PDCs have actu- ally either held their price or even come down a little. The cost of PDC cutters has come down and I believe the quality has improved. Refurbished bits have always been available to purchase; however, some sizes of milled tooth and tungsten carbide in- sert (TCI) bits are getting either difficult to find or the price is getting higher because of the supply and demand problem. We used to get a lot of bits to refurbish out of the oilfield; they are now using more and more PDCs. WWJ: How has the rise in steel prices impacted the cost of making and selling drill bits? Has it increased the cost of a bit? Kevin: The steel prices have not affected the cost of drill bit at all; however, the cost of tungsten has. Tungsten is used in almost all drill bits—drag bits, TCI bits, milled tooth bits, and it is in the body of a matrix PDC. It is also the base for the PDC cutter as well. WWJ: What is the most common bit you repair? Kevin: The most common bit used for the water industry varies from region to region depending on the formations being drilled. In my business we do repairs on a lot of drag bits, but we also retip milled tooth bits and recondition TCI bits. We ship bits all over the United States. For us, the drag bit is No. 1 and then the milled tooth tricone bit for repair. In the northeastern states and Rocky Mountain region, the down-the-hole hammer is very common because of the granite WWJ September 2016 23 Twitter @WaterWellJournl A dull milled tooth bit ready to be retipped and a retipped milled tooth tricone bit. These are not the same bit, but they are the same size and type. Photos courtesy Palmer Bit. David Henrich, CWD/PI, CVCLD, vice president of Bergerson-Caswell Inc. in Maple Plain, Minnesota, says the primary benefit the company has experienced using refurbished bits is significant cost savings as opposed to using new bits. "Typically, our cost per foot is decreased when using repaired bits as we spend about two- thirds of new cost and get similar use versus a new bit," says Henrich, who is a board member of the National Ground Water Association. "It varies a little across tricone, drag, and PDC bits. In the case of PDC bits, we have reduced our cost per foot nearly 50 percent in some cases by sending bits in when they are mod- erately worn where they may only need a few new inserts and the bit body itself is still in great condition. Drag bits are much the same." Cost Savings for Contractor Drive Use of Refurbished Drill Bits David Henrich, CWD/PI, CVCLD CHRISTENSEN continues on page 24