The key to successful Drilling Hazard Management (DHM ™) requires understanding the uncertainty that drives risk. For example, pore pressure prediction is an uncertainty. The risk of this uncertainty is manifested by exceeding the boundaries of the drilling margin, or the safe envelop which can be drilled without danger of well control events or conversely suffering fluid losses, ballooning, or fracturing the well. The risks must be identified and assessed and the cost-benefits of mitigating then managing the risks must be conducted. This methodology of mitigating, then managing risk can be applied to any drilling and completion operation.

DHM™ focuses on Drilling Hazards Management by engaging risk assessment to determine the best methodology to mitigate, thus manage risk. All drilling operations have associated risk. Mitigates can include:

• recognize the indicators from the rig and hole conditions that forecast problems
• apply engineering solutions
• evaluate drilling risk
• perform hazard analyses
• managing risks
• avoid drilling problems such as stuck pipe, lost circulation, etc.
• apply mitigating conventional or new technologies