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Archive for March, 2023

Reality check for supermajors

Posted in climate, energy, Gulf of Mexico, Offshore Energy - General, Uncategorized, tagged , , on March 6, 2023| Leave a Comment »

“I am of a firm view that the world will need oil and gas for a long time to come,” (Shell Chief Executive) Sawan, who started the job on Jan. 1, told Times Radio in the U.K. on Friday. “As such, cutting oil and gas production is not healthy.”

Back in 2021, Shell predicted that its own oil production would decline every year and drop by as much as 18% by 2030. BP had a similar outlook, but CEO Bernard Looney rolled back its climate targets this year and said it will increase investment in exploration and production.

BP and Shell have trailed their U.S. peers in price to earnings ratios. Analysts have said investors interested in exposure to oil and gas have shunned them for putting more money into renewables, while investors focusing on environmental concerns haven’t rewarded them. That’s kept European energy firms trading at a discount.

Barron’s

It will never happen, but a separate company composed of BP and/or Shell upstream US assets would be very attractive to investors.

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Lawrence Livermore National Laboratory and the US offshore oil and gas program

Posted in California, Offshore Energy - General, Regulation, tagged , , , , on March 3, 2023| 1 Comment »

Lawrence Livermore is receiving attention for concluding that the Covid pandemic most likely arose from a laboratory leak in Wuhan.

This reminded me of an important Lawrence Livermore project that was funded by the Minerals Management Service in 1995. The study considered seismic hazard criteria for offshore platforms on the California OCS. My colleague Dr. Charles Smith, a structural engineer, had an important role in this research. Charles had been instrumental in the establishment of an earthquake measurement network in the Pacific Region. The measurement system at Platform Grace in the Santa Barbara Channel  successfully recorded 5 earthquakes and the structural responses at multiple locations on the platform.

Lawrence Livermore and the other national laboratories have many outstanding scientists and engineers. The national labs do excellent work, although their studies are a bit pricey 😉

Platform Grace

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Huntington Beach pipeline spill – $100 million settlement in favor of the pipeline operator

Posted in accidents, California, Offshore Energy - General, pipelines, tagged , , , on March 2, 2023| Leave a Comment »

A group of international shipping companies and their subsidiaries tentatively agreed Wednesday to pay $96.5 million to Houston-based Amplify Energy Corp. to dismiss one of the last remaining lawsuits over the oil spill, which sent at least 25,000 gallons of crude into the waters off Huntington Beach in October 2021.

LA Times
MSC Danit and Beijing were ID’d by Sky Truth as likely dragging anchors over the damaged Beta Unit pipeline

Although the Coast Guard’s investigation report has yet to be published, available information suggests that the pipeline was well maintained and that Amplify’s Beta Unit facilities had a good safety and compliance record. Absent the anchor dragging captured in the above image, a spill would have been highly unlikely. The large settlement in favor of Amplify is therefore quite understandable.

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Not just a “hunk of metal at the bottom of the sea.” Will the undamaged Nord Stream 2 pipeline be recommissioned?

Posted in accidents, energy policy, Offshore Energy - General, pipelines, Russia, tagged , on March 2, 2023| 3 Comments »

Whoever blew up the Nord Stream pipelines was not entirely successful in that one of the Nord Stream 2 lines was apparently undamaged. What is next for that line? Will the two Nord Stream 1 and the other Nord Stream 2 pipelines be repaired?

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China’s US OCS leases – exit coming?

Posted in Uncategorized, tagged , , , , , , , , on March 2, 2023| Leave a Comment »

Some may not be aware that the Chinese government, through a fully owned subsidiary of the China National Offshore Oil Corp. (CNOOC), is a leaseholder in the US Gulf of Mexico. Per BOEM records, CNOOC Petroleum USA Inc currently has ownership in 12 OCS leases. Most significantly, CNOOC holds 21% interest in the Appomattox Field, operated by Shell, and a 25% working interest in Stampede, operated by Hess. Peak oil production for these projects is expected to be 175,000 bopd for Appomattox and up to 80,000 bopd for Stampede.

CNOOC acquired the Gulf of Mexico properties through its purchase of Nexen, a Canadian company, in 2013.

The state-owned Chinese oil explorer surrendered operating control of those assets to quell U.S. national security concerns, said two people familiar with the agreement who asked not to be named because the terms aren’t public.

FInancial Post

Reuters has reported that CNOOC is considering an exit from its operations in the US, Canada, and the UK because of sanctions concerns. JPMorgan is reportedly assisting with the sale of the US assets.

Stampede TLP

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December 2022 GoM production data are now posted

Posted in energy policy, Gulf of Mexico, hurricanes, Offshore Energy - General, tagged , , , , , on March 1, 2023| Leave a Comment »

Comments on 2022 oil production:

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