In 1979 Gulf of Mexico oil production had declined to 263 million barrels and many believed that further declines were inevitable. 40 years later, a record 693 million barrels were produced.
Onshore, lateral drilling and hydraulic fracturing capabilities are continuing. As a result, Exxon and others are predicting projecting higher recovery factors in the Permian Basin. Per Exxon CEO Darren Woods: “We are beginning to see the signs of some very promising new technologies that will significantly improve recovery.”
Opportunity + Ingenuity ➡ Energy Independence + Prosperity
OSLO, June 28 (Reuters) – Norway’s government said on Wednesday it has given approval for oil companies to develop 19 oil and gas fields with investments exceeding 200 billion Norwegian crowns ($18.51 billion), part of the country’s strategy to extend production for decades to come.
“These are projects that will contribute to a continued high and stable output from Norway’s continental shelf as well as employment and value creation,” Minister of Petroleum and Energy Terje Aasland told a news conference.
The Bureau of Ocean Energy Management (BOEM) today announced proposed changes to modernize financial assurance requirements for the offshore oil and gas industry, in order to better protect American taxpayers from incurring the costs associated with the oil and gas industry’s responsibility to decommission offshore wells and infrastructure, once they are no longer in use. The proposed changes will publish in the Federal Register on June 29, which will open a 60-day public comment period that ends on August 28.
It looks like BOEM punted on the contentious issue of considering predecessors when determining financial assurance requirements:
The proposed regulatory changes would provide additional clarity and reinforce that current grant holders and lessees bear the cost of ensuring compliance with lease obligations, rather than relying on prior owners to cover those costs. BOEM is interested in public comments on the costs and benefits of considering predecessors when determining how much financial assurance a company must provide.
As illustrated in the charts below, Cox has the distinction of being the Gulf of Mexico (world?) leader in aging offshore platforms. Per BOEM data, Cox (includes affiliates Energy XXI GOM and EPL) operates more than 1/4 of all GoM platforms. 44% of these platforms were installed prior to 1980, 114 of which are major structures (defined in notes below). 27 of these major structures were installed prior to 1960!
Notes: (1) A major structure contains at least 6 well completions or more than 2 pieces of production equipment. (2) The platform numbers in an earlier post are incomplete in that they include only structures with helidecks.
From the outset, deepwater oil and gas exploration and development were not dependent on divers or manned submersibles – far too dangerous. UUVs are used for maintenance, inspections, surveys, positioning equipment, and other operational purposes.
UUV technology advanced with demand as deepwater discoveries drove worldwide exploration and production. In 2021, deepwater (>1000′) leases accounted for 93% of GoM oil production and 76% of the gas production. For comparison, in 1985 only 6.0% of the oil and 0.8% of the gas were from deepwater leases.
In 2021, TechnipFMC won NOIA’s Safety in Seas Award for the Gemini® ROV System which can dive for a month at a time and change tools subsea instead of on deck. The Gemini® ROV System also includes a blowout preventer intervention system that supports well control and pipe shearing functions.
Below is a taxonomy for UUVs. The linked article provides further details. Gliders are particularly useful for surveying given the large distances they can cover (last image).
Last week I had the privilege of attending a retirement party for Jim Bennett. Jim spent most of his 43 year Federal career in the OCS program focusing on environmental reviews and offshore wind. Most recently he served as Chief of the Offshore Renewable Energy Program. Congratulations to Jim on a long and very successful career!
The preliminary NTSB report was posted on 1/18/2023, but the final report has still not been published. Status update:
Will the investigators consider longstanding regulatory fragmentation issues? The most recent Coast Guard – BSEE MOA for fixed platforms added to helideck regulatory uncertainty by assigning decks and fuel handling to BSEE and railings and perimeter netting to the Coast Guard. This is the antithesis of holistic, systems-based regulation.
So at this time, some theories on the culprits appear to have dropped out. Those that are still in play include various versions of the Ukrainian rental yacht narrative and the Hersh account. Hopefully, the responsible parties will be identified, but given the political stakes, this is becoming increasingly unlikely.
Bud's Offshore Energy (BOE) 