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Archive for February, 2023

Speaking of the Santa Ynez Unit, some of you may remember the OS&T

Posted in California, Offshore Energy - General, tagged , , , on February 7, 2023| Leave a Comment »

A.S. Bull and M.S. Love

When Exxon was unable to get approval for an onshore oil processing facility, the company installed this offshore storage and treatment (OS&T) vessel and single anchor leg mooring (SALM) 3.5 miles from shore, just seaward of the State-Federal boundary. The OS&T, a converted tanker, operated from 1981 to 1994. By 1994, the onshore gas processing facility in Las Flores Canyon had been expanded to process Santa Ynez crude, eliminating the need for the OS&T. While the OS&T had a very good performance record, the highly visible vessel was less than endearing to most Santa Barbara County residents, and there was no apparent sadness when the OS&T and SALM were decommissioned in 1995.

Current Santa Ynez Unit facilities:

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More on the Santa Ynez Unit saga: will the 1/2 billion+ barrels of remaining reserves ever be produced?

Posted in California, decommissioning, Offshore Energy - General, tagged , , , on February 6, 2023| Leave a Comment »

Per our previous post on the complex status of the Santa Ynez Unit, Lars Herbst has brought this informative article to our attention. Here is the bottom line:

With this deal, Exxon is essentially lending Flame, Sable’s management team and PIPE investors the money to buy the facilities from itself. If they are able to get them back online, great, Exxon gets its $623 million loan paid back with 10% interest. If not, it presumably repossesses the facilities and their associated headaches.

This is what has been produced and what remains:

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Perspective: land vs. sea

Posted in Uncategorized, tagged , on February 4, 2023| Leave a Comment »

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Was the Nord Stream attack the first ever offshore pipeline sabotage?

Posted in energy policy, Gulf of Mexico, natural gas, pipelines, Russia, tagged , , , on February 3, 2023| Leave a Comment »

I do not recall any other such incidents.

Victoria Nuland’s glee over the Nord Stream damage (video clip below) is particularly galling to those responsible for offshore production, worker safety, and environmental protection. Does she realize that the Gulf of Mexico has more than 13,000 miles of active offshore pipeline that could be similarly targeted, and that the US has 2.6 million miles of onshore pipelines?

Whether or not the US was involved in the Nord Stream sabotage, Ms. Nuland’s schadenfreude is disturbing given the economic and security implications of the attack.

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BSEE posts 2021 US OCS incident data; the number of fatalities is troubling

Posted in accidents, Gulf of Mexico, Health, Offshore Energy - General, tagged , , , , on February 2, 2023| Leave a Comment »

BSEE has posted the 2021 incident data for US OCS oil and gas operations. While the 13 month publishing lag is disappointing, the spreadsheet (below the table at this link and attached at the end of this post) appears to be comprehensive and complete.

Of the 8 fatalities in 2021, 6 are classified as “non-occupational” and are thus not included in the 2021 fatality count (see table below).

The 2 occupational fatalities are the result of falling metal plates on a drilling rig and the release of casing pressure on a production platform. These fatalities are still being investigated.

The 6 non-occupational fatalities on OCS facilities also merit further attention. While historical data on health-related OCS fatalities are not readily available, 6 such fatalities seems high relative to past experience, particularly given that the total number of hours worked has declined by more than 50% since 2011. Are these and other health related questions being considered?

  • Were covid or covid related health issues a factor?
  • Are health screening programs sufficient, particularly for contractors? Contractors are 80% of the workforce but accounted for 100% of the 2021 fatalities?
  • Are offshore medical care and evacuation capabilities sufficient?

cy-2021-excel-spreadsheetDownload

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Norway and Gulf of Mexico oil production were remarkably similar in 2022 …

Posted in Gulf of Mexico, Norway, Offshore Energy - General, tagged , , on February 1, 2023| Leave a Comment »

…and were in fact identical in August (1.763 million BOPD). GoM production should strengthen a bit in 2023 as new deepwater projects come online. Norwegian production should also increase. The longer term is more uncertain, particularly for the US OCS which is seemingly being managed to fail.

Natural gas production is a different story. Norway has been sustaining and growing offshore gas production, while Gulf of Mexico gas production has been in free-fall. Total US production has nonetheless grown sharply over the past 17 years thanks to the shale boom (see the chart below). In the 1980’s, the GoM accounted for 20-25% of US gas production. The GoM share is now only 2%, most of which is gas that is associated with deepwater oil production. Nonassociated offshore gas has important advantages that should not be ignored.

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