Archive for March, 2022

Yesterday, EIAP issued a report for API and NOIA that estimates economic impacts from leasing program delays. The fundamental reason for regular sales has not received much public attention, but is summarized succinctly in the report:

In most cases, additional leases are required to produce an existing field fully or to underpin the economics of processing and transportation infrastructure. It is thus important for the industry to have continued opportunities to secure leases through a predictable leasing program.

Keep in mind that US lease blocks are the smallest in the offshore world, too small for optimal development in deepwater and frontier areas. The smaller the blocks, the greater the importance of regular lease sales. Pictured below is a 2017 graphic graphic which superimposes Kosmos Energy’s blocks off Senegal and Mauritania on the Central Gulf of Mexico.  Note that the six West African blocks encompass 36,000 sq km and are the equivalent of 1600 GoM lease blocks.  

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Mr. Domangue began his career with BSEE in 1997 and has more than 30 years of experience in the oil and gas industry. He has served as the Deputy Regional Director for Districts, Investigations, Environmental, and Enforcement (DIEE), as Senior Technical Advisor for the BSEE Gulf of Mexico Region and was the Acting Chief of the National Offshore Training Center. Mr. Domangue also previously served as Office Supervisor for Regional Operations, and as District Manager for the Houma District Office of the BSEE Gulf of Mexico OCS Region. He holds a BS degree in petroleum engineering from Louisiana State University.


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COP26 bans oil industry. Is this helpful?

UAE Energy Minister Suhail al-Mazrouei has most definitely not forgotten:

“I think in COP 26 all the producers felt they were uninvited and unwanted but now we are again superheroes, it’s not going to work like that,” he said.


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Technological advances, most notably horizontal drilling and hydraulic fracturing, and private initiative on private land changed all of that.

“The US is going to emerge this year as the world’s largest LNG exporter, and it is clear that US LNG is a geopolitical asset for the United States and for Europe.”

Daniel Yergin

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Below and linked is the most recent C-NLOPB incident posting:

  • Timely
  • Front page
  • Advises about any casualties or pollution (none in this case)
  • Briefly describes incident without speculating on causes
  • Informs about next steps
  • Well done



March 25, 2022

Hibernia Management and Development Company (HMDC) has reported that on March 20, 2022 a crane on the Hibernia Platform was lifting a mini container when it made contact with a scaffold hoarding. There were three people working inside the hoarding at the time of contact. No one was injured and there was no damage to the scaffold hoarding.

West pedestal crane operations were halted and HMDC has initiated an investigation to determine the potential classification of the incident.

C-NLOPB Safety Officers were already scheduled to travel to the Hibernia Platform in the coming days and will follow up with HMDC to review this incident and the near miss that occurred on March 15.

The C-NLOPB is also monitoring HMDC’s investigations of these incidents.

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123 workers lost their lives in the North Sea.

Tiå går og di seie tiå lege adle sår
Men ein mista bror e sår som aldri gror
Kanskje vil dårr gå vinter og vår
Sei oss klart kor dokker står
Håpte på at han sko komma
At han sko komma hjem igjen

Time is gone, they said; time would heal all wounds
But to lose a brother is a wound that will never heal
It could take as long as the never-ending winter and spring [i.e., never]
I hope that he should come
That he should come home again

Excerpt from the Alexander L. Kielland (1980) Song

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“I am deeply honored to join the Interior Department and continue my public service career on behalf of the American people. I’ve dedicated my life to keeping the public safe, and I look forward to continuing that service alongside the Bureau of Safety and Environmental Enforcement’s incredible career employees,” said Director Sligh.

DOI Press Release

Excellent opening comment. Best wishes to Director Sligh in this very important position. BSEE is critical to our economic future and energy security.

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Shell Vit0
Chevron Anchor
BP’s Argos
Murphy’s King’s Quay

After a several year lag in deepwater Gulf of Mexico development, a new generation of projects is moving toward first production. Shell’s Vito and Whale, BP’s Argos, Chevron’s Anchor, and Murphy’s King’s Quay are similar in many ways including the following:

  • Floating production units
  • Lighter, smaller semisubmersible designs
  • Excellent structural integrity and storm performance characteristics
  • Lower project costs, shorter cycle times
  • 4000 to 8600′ water depth
  • Subsea wells, small surface footprint
  • High production rates anticipated: 100,000 – 150,000 BOE/D
  • Standardized equipment
  • Energy efficient gas turbines
  • Advanced remote monitoring, fewer onboard staff
  • Simpler = safer (assuming equivalent well and production safety system integrity)
  • Limited number of wells + high production rates/well + efficient power generation and processing equipment + restricted flaring + pipeline transportation = low GHG intensity production

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