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Archive for June, 2010

We know about the Macondo victims, most notably the 11 men who died and their families, but who stand to benefit from the blowout?

  1. OPEC – Will OPEC’s market share grow as the US and others prevent or delay production?
  2. West Africa and Brazil – Better rates and availability for deepwater rigs?
  3. PTTEP (Montara) – Not receiving much attention as BP draws all the flack
  4. Shale gas – Can the huge promise be realized?  Will natural gas gain an increased share of the transportation market?
  5. Alternative Energy – Are these industries ready to step up?
  6. Spill response research – Government and industry oil spill research funding always jumps after major spills.
  7. Nuclear industry – Perhaps, but Macondo may remind people that “the unthinkable” can happen.
  8. Lawyers – The only sure winners.  The litigation spectacular has already begun.

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No Love for Long Strings – The rest of the industry has distanced itself from BP’s casing program, swearing their allegiance to tiebacks.

CEO sails while “small people” suffer – The PR disaster continues for BP.

BP partner seeks annulment – The first shots in the multi-billion dollar BP-Anadarko dispute have been fired.  Look for new liability clauses in operating agreements and regulations.

Who is in charge and accountable? – Macondo, like Montara, was entirely preventable.  Know who is in charge, and make sure they are competent and cautious leaders.  As a friend told me yesterday, the best technology can be undone by human arrogance.

Just ‘Roo It! – Australia’s investigation process works great until it comes to releasing reports.  Varanus Island deja vu?

Storm watch – Another common concern for Montara and Macondo – the onset of hurricane/cyclone season.  We need about six more weeks (preferably more) until the first hurricane evacuations in the Gulf.

Sad irony – The first FPSO production in the Gulf of Mexico is at the Macondo field.

90+% recovery – Promised soon with new well cap and production systems.

Relief? – First relief well is ahead of schedule.  Has a well ever been more anticipated and needed?

Aftermath – While the chance of BP operating Macondo is virtually zero, will PTTEP be allowed to continue operating Montara?

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BP Gas Station

In addition to the obvious irony in this BP gas station’s warning sign, perhaps there is a separate and unintended message in the sign’s last 3 lines – “you are responsible for spills.”  The gasoline that we purchase at the pump does not just arrive there magically.  That gasoline is the end product of a complex exploration, production, transportation, and refining process.  When we consume petroleum products (and other forms of energy), we are tacitly accepting the associated environmental risks.  If we aren’t comfortable with those risks, we should look at our own habits and how they contribute.

BP is responsible for the Macondo spill.  However, our own lifestyle decisions are the reason for the extraordinary demand for the oil that BP and other companies produce.  We can’t blame BP for the intractable sprawl, congestion, and pollution that have resulted from those decisions.

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25,290 barrels of oil were recovered on 17 June through the dual production system – 16,020 bbls through the LMRP cap to the Enterprise and 9,270 bbls (burned) via the choke/kill lines to the Q4000.

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Edu's Disallowed Goal

I can only imagine the Congressional hearings after today’s questionable performance by the referee from Mali.  FIFA, Slovenia, Mali, the referee, the vuvuzelas, and MMS (surely they had some role) would all get the full Tony Hayward treatment.

Kudos to the US team for never giving up and rallying from a 2 goal deficit to tie.  Soccer can be very cruel, and sometimes the calls don’t go your way.  Best wishes to the many BOE readers in Slovenia.  You have a very good team and we wish you well.

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Terry Barr, President of Samson Oil and Gas, provided some interesting Macondo perspectives to the Wall Street Journal.

This well failed its casing integrity test and nothing was done. The data collected during a critical operation to monitor hydrocarbon inflow was ignored and nothing was done. This spill is about human failure and it is time BP put its hand up and admitted that.

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If the contrast between the Montara and Macondo political responses wasn’t already evident, take a look at today’s events.  While Tony Hayward was being hammered once again at a congressional hearing despite establishing a $20 billion damage payment fund, Australian Resources Minister Martin Ferguson seems to be in no hurry to release the Montara Inquiry Report.  According to Australia Broadcasting, Mr. Ferguson says he has to take into account legal considerations:

So as to ensure that I do not prejudice any potential further investigations which could include criminal offenses, or undermine any natural justice considerations of any individuals.

Say what?  How about preventing future accidents?

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NWS Earle Executive Officer Caudill, Kevin Costner, and Ohmsett Manager Bill Schmidt (1999 photo at Ohmsett)

Leading researchers from around the world are drawn to the Minerals Management Service’s Ohmsett facility at Naval Weapons Station Earle in New Jersey to test their oil spill response theories and equipment.  Kevin Costner’s oil separator, which has received much recent attention, is well known to MMS and Ohmsett. The Costner Industries system is used to separate and recycle  the oil used for Ohmsett testing.  Learn more about Ohmsett including testing capabilities for renewable energy devices.

Ohmsett - Pool of Dreams

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Check out this entertaining Australian TV bit on the Gulf of Mexico spill.

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BOE Exclusive: An international expert (pictured above) has been hired to assist the Flow Rate Technical Group.  He will calculate a precise flow rate with five significant figures.

Yesterday’s announcement of a new flow rate range (35,000 to 60,000 bopd) was not accompanied by any data, assumptions, or analysis.  When will the documentation and supporting information be released?

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