The National Commission has a diverse lineup of “heavy hitters” slated for hearings on 27-28 September. CSpan doesn’t have their schedule posted yet for these dates, but I assume they will be broadcasting the hearings live.
Archive for September, 2010
National Commission Agenda for 27-28 September
Posted in Uncategorized, tagged accidents, Deepwater Horizon, Gulf of Mexico, macondo, National Commission, offshore oil, oil spill on September 24, 2010| Leave a Comment »
Will Oil Discovery Increase Falkland (Malvinas) Tension?
Posted in Uncategorized, tagged Argentina, drilling, Falklands, offshore oil, Rockhopper, UK on September 24, 2010| Leave a Comment »
Deepwater drilling may be on hold in US waters, but that is not the case elsewhere. However, drilling in other parts of the world is not free from political tension and intrigue. Of particular interest is a recent discovery well in 450m of water in the North Falkland Basin. From the Buenos Aires Herald:
As President Cristina Fernández de Kirchner prepares to address the UN General Assembly and renew the Argentine claim on the Malvinas Islands sovereignty, British explorer Rockhopper said its controversial oil discovery offshore the islands could have produced double the amount of oil had a test not been besieged by technical problems.
Analysts believe up to 60 BILLION barrels of oil lie in waters off the UK territory.
That estimate would seem to be a considerable stretch (to say the least), but will no doubt complicate the diplomatic challenge facing the UK and Argentina.
Will we ever find out what happened to the Aban Pearl?
Posted in accidents, tagged aban pearl, accidents, sinking, venezuela on September 24, 2010| Leave a Comment »
The Aban Pearl sank off the coast of Venezuela in May. Shortly after the accident, Venezuela announced that a high-level commission would investigate. However, interested parties, inquiring through official diplomatic channels, have been unable to even confirm that the sinking is being investigated.
Until operators, contractors, and governments agree to conduct accident investigations and release reports in a timely manner, offshore safety objectives cannot be achieved.
Australia to Have Single Offshore Safety Regulator
Posted in accidents, well control incidents, tagged accidents, Australia, blowouts, Deepwater Horizon, Gulf of Mexico, macondo, Martin Ferguson, Montara, NOPSA, oil spill, safety, well control on September 23, 2010| Leave a Comment »
I awoke to two very important developments from Australia as reported by Anthea Pitt with Upstream:
- According to Energy Minister Martin Ferguson, the Montara Inquiry Report will be publicly released by the end of the year. As BOE readers know, there are important similarities between the Montara and Macondo blowouts, most notably the production casing cementing issues that created a flow path via the shoe track on both wells and the evidence that both disasters would have been prevented if negative flow tests had been properly conducted and interpreted. Would Macondo have been prevented if BP and Transocean had followed the Montara hearings and made sure that all drilling personnel were aware of the causes of this 74-day blowout in the Timor Sea?
- Minister Ferguson also announced that the role of the National Offshore Petroleum Safety Authority (NOPSA) will be expanded:
By expanding Nopsa’s role, one central agency will look out for the safety of our offshore workers and the environment from exploration to decommissioning. That means it will be responsible for approvals and regulation of safety and environment, as well as integrity of facilities and day-to-day operations.
Bravo to Australia and Minister Ferguson! As I indicated in a submission to the Montara Commission and testimony before the US Senate Committee on Energy and Natural Resources, a single agency must be responsible and accountable for the regulation of offshore oil and gas operations if safety and pollution prevention objectives are to be achieved.
“3 beers in the Superdome” analogy
Posted in Uncategorized, tagged beer, Gulf of Mexico, macondo, oil spill, Superdome on September 22, 2010| 2 Comments »
CBS has caused quite a stir with their short article equating the Macondo spill to 3 beers in the Louisiana Superdome:
“How big was the oil spill in the Gulf? It was equal to pouring three cans of beer into the Superdome.”
Beer in the Superdome? How could that be possible? Certainly not during a Saints game! 🙂
I never liked these types of analogies for the following reasons:
- They imply that you are trying to downplay the problem. The Macondo spill was massive, and it is silly to argue otherwise.
- The spill affected only a portion of the Gulf, so using the volume of the entire Gulf as a denominator is unrealistic. If the spill was diluted by the entire Gulf, it wouldn’t have been necessary to disperse it. Is a spill near Cape Cod diluted by the entire Atlantic Ocean?
- Once oil is on the beach, in a marsh, or on a bird, it doesn’t matter how big the adjacent body of water is. The beach or marsh is still soiled, and the bird is still harmed.
- People whose livelihoods were affected by the spill aren’t comforted by the fact that most of the Gulf was clean.
Congratulations to the Netherlands State Supervision of Mines on their 200th Anniversary!
Posted in Uncategorized, tagged 200th anniversary, Jan de Jong, Netherlands, Queen Beatrix, SSM on September 21, 2010| Leave a Comment »
200 jaar Staatstoezicht op de Mijnen!
A regulatory agency does not survive for 200 years without the respect and support of elected officials and the public. The State Supervision of Mines (SSM) in the Netherlands has earned its outstanding reputation through sustained excellence and innovation.
SSM regulates all aspects of oil and gas exploration, production, and transportation, wind projects, and mining activities.
To learn more about the SSM, I encourage you to view this 200th anniversary video. At about the 6 minute mark, pay particular attention to SSM’s regulatory philosophy which emphasizes risk assessment and effective management systems. SSM does “not focus on nuts and bolts but on the effectiveness of management systems.”
Congratulations to Jan, Roel, Jos, Michael, and the dedicated professionals of the State Supervision of Mines. Keep going strong through anniversaries 210, 220, and beyond!
Personnel removed from offshore Newfoundland rigs in advance of Igor
Posted in Uncategorized, tagged Grand Banks, Igor, Newfoundland, Ruelokke, transocean on September 21, 2010| Leave a Comment »
As a precaution in advance of Hurricane Igor, all personnel were removed from two Transocean rigs operating offshore Newfoundland. The rigs are the GSF Grand Banks and the Henry Goodrich. Igor headed for Newfoundland after battering Bermuda yesterday.
Max Ruelokke, Chairman and CEO of the Canada-Newfoundland and Labrador Offshore Petroleum Board, told BOE that this is the first time he can recall a Grand Bank’s rig being down-manned to zero in advance of a storm. Personnel are expected to return to both rigs tomorrow.
Needed: An International Treaty on the Collection and Release of Offshore Accident Information
Posted in accidents, tagged accidents, international treaty on September 20, 2010| 1 Comment »
Why is action needed?
- Accidents happen for a reason; they are not mere matters of chance. By better understanding their causes, we can prevent their recurrence.
- International data on accidents at offshore oil and gas facilities are incomplete and inconsistent.
- Some governments release little or no information about accidents within their jurisdiction, and may not even confirm that investigations are being conducted.
- Some companies provide little or no information about their accidents.
- Prosecutions, legal actions, and domestic politics impede investigations and delay or prevent a complete understanding of how accidents happened.
What should be done? Governments should support an international treaty to improve data gathering and analyses and help prevent future disasters at offshore facilities. Here are some suggested provisions for such a treaty:
- Nations agree on accident reporting criteria, definitions, and information collection procedures.
- Nations agree to investigate any accidents within their jurisdiction that exceed specified casualty, pollution, or damage thresholds.
- Nations agree to release investigative reports within specified time frames.
- Nations agree to assist each other with investigations.
- Nations agree to delay prosecutions and enforcement actions until the official accident investigations are completed.
We have been talking about accident investigation and information shortcomings for decades. It is time to do something!
Relief well contributed to the autopsy and burial of Macondo, not the execution
Posted in accidents, well control incidents, tagged accidents, blowouts, Deepwater Horizon, Gulf of Mexico, macondo, offshore oil, oil spill, relief well, safety, well control on September 19, 2010| 1 Comment »
Now that Admrial Allen has officially confirmed that the dead Macondo well is in fact dead, what is the legacy of the relief well?
- The relief well was Macondo’s opposite – a technological marvel that was flawlessly planned and precisely drilled without incident.
- The relief well verified new sensing and ranging tools for locating a well.
- The relief well contributed to the “burial” of Macondo by further cementing and pressure testing the annulus
- Perhaps most importantly, the relief well provided further confirmation that Macondo flowed inside the production casing and not in the annulus surrounding that casing. Was this an unstated BP objective in supporting the decision to complete the intercept operation? Remember that after the top kill cementing operation killed the well, BP requested that the Unified Command “consider foregoing the relief well.” This was an appropriate request since the annulus could have been secured through conventional plugging and abandonment practices. Whether or not BP changed positions on the intercept, the completion of that operation seems to have helped the BP legal defense. Misinterpreting negative pressure tests, missing signs of flow, and mis-routing that flow would seem to be more defensible than improperly designing the well, ignoring centralizer recommendations, and foregoing the cement bond log.
Happy Valley Thanks Terry and Kim Pegula (and the Marcellus Shale)!
Posted in Uncategorized, tagged East Resources, Happy Valley, Hockey Valley, ice hockey, Kim Pegula, Marcellus Shale, Penn State, Shell, Terry Pegula on September 19, 2010| Leave a Comment »
Penn State, often known as Happy Valley, is now also Hockey Valley, thanks to an $88 million donation to fund a new ice arena and establish NCAA Division I hockey programs for men and women. The donation was made by Terry Pegula, a Penn State petroleum and natural gas engineering graduate, and his wife Kim. The Pegulas recently sold their exploration and development company, East Resources, to Shell for a reported $4.7 billion. East Resources has extensive holdings in the Marcellus Shale, a major component of the emerging “natural gas revolution” in the US.
Although Terry and I had the same major at Penn State, he graduated two years after me and I did not know him. Nonetheless, I want to congratulate Terry for his phenomenal success and generosity. The Pegulas’ unprecedented contribution will have major recreational, economic, and social benefits for Happy Valley and all of Central Pennsylvania.









