Direct Drivehead set out to fix a problem in its own operations, and ended up with a product that's in demand among drillers.

Innovations are often conceived accidentally, and Houston-based Direct Drivehead Inc. is well acquainted with this phenomenon. The company's Smart Pump Direct Drivehead product was born out of necessity, says CEO Greg Boyles. Originally focusing on exploration and production, the company created the technology while developing a heavy oil block in Trinidad in 1999.

“We entered into a joint venture with the country of Trinidad to develop a heavy onshore block,” Boyles says. “As we completed wells and started going into production, we found ourselves running into difficulties with belt-driven systems. We couldn't seem to write any protocol for pumpers in the field to keep the units running.”

Finding a Solution
Faced with this difficult situation, the company decided to eliminate the problem by creating a new technology: the Direct Drivehead. This product eliminates problems associated with belts, pulleys and bearings, instead using a direct-drive gear reducer to rotate the rod string and deliver 260 foot pounds of torque on a continuous basis using a five-horsepower motor. Traditional pump jacks require 20- to 30-horsepower motors, Boyles says, and less energy required means lower operation costs.

The company intended to use this technology only in its own operations in Trinidad, but it soon realized a demand for it in the market. It applied for a patent in 2004, which it received in 2006. In the meantime, other companies approached it with requests to build similar products for their operations.

“Before you know it, this invention is pulling us into a different business than we intended to be in,” Boyles notes. “We were like Levi Strauss, selling picks and shovels to goldminers.”

In 2006, the company began to align itself with major U.S. manufacturers, such as Baldor, Boston Gear, Fabcorp and, later, North Texas Electric. By December 2006, Boyles says, the company was in full-scale production and it is currently shipping drive heads to customers in Texas, Bahrain, India, Egypt and Columbia.

“All of a sudden, it's an exciting thing,” he says. “We've created something that really helps people, and doesn't cost an arm and a leg.

“In these days of high-priced well operations, it's hard to imagine that you can complete a well for under $15,000 that is fully automated with pump and drive with Web-based controls, but that's what our product does”.

“The Direct Drivehead works with every type of PCP,” he adds. “It can work with anybody's progressive cavity pump.”

Low-Key Promotion
Direct Drivehead's operations aren't production-intensive, says Petroleum Engineer Tom Mosman. “All of the specific parts are made for us by leading U.S. manufacturers,” he says. “We don't actually machine and/or make parts here.  Our suppliers send parts here, we stock, assemble and test the units and ship from Houston.”

It is taking a low-key marketing approach, primarily relying on word-of-mouth. Boyles says the company has competitors in its market segment that target higher-volume wells or wells below 6,000 feet, but has limited competition in its niche and price range.