The Merrick software helps to drillers locate the specific ID numbers on the pieces they will be using. They then use a handled reader to identify the necessary pipes and joints by capturing their tag ID numbers. Three RFID tags are positioned on each pipe and are encoded with the same ID number. The data such as the locations and time of the usage is stored on a local server. The information about the pipes are always available on the server.

When the tag is read, a pipe section or joint is connected with other pieces in a string that is then drilled into the ground. During the operation of the drill equipment, the drilling rig sensor system tracks the torque, axial tension, and down hole pressure and temperature. That data is then stored in the server using Merrick software to link it with the specific pieces of equipment involved. Companies such as Trailblazer can then access that data before reusing a pipe to know what kinds of conditions it has been exposed to in the past.

There is an interest from the drilling industry in adding RFID tags to torque wrenches in order to track the amount of torque on bolts used to hold drilling equipment in place. Accidents can occur on oil rigs and at drilling operations when one or a series of bolts breaks because of errors in torque.
Currently the RFID works fine as it was testing various time.

Source: http://www.rfidjournal.com/article/view/4095/2