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Archive for August, 2023

Per the BSEE presentation attached below:

Slide 13: “In 2022, the rate of occupational fatalities, reported for activities on facilities where BSEE has primary investigation authority, decreased to being near the historical national average of approximately 0.9 fatalities per 25,000 full time equivalent workers per year. However, considering all offshore risk factors, including helicopter transportation, diving, marine transfer, and COVID-19 exposures, the occupational fatality rate for all OCS activities has remained high since 2019.

Slide 15: “In 2022, the TRIR for both production and construction operations increased to the highest levels recorded since 2010 and remained high even after discounting the impact of COVID-19 illnesses. The TRIR for drilling and well operations, however, remained near their historical lows.

Comments:

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Published today.

Comments on the proposed rule.

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The attached comments were submitted to BOEM via Regulations.gov. The comments address specific provisions of the proposed rule and include a recommendation to hold companies fully accountable for their lease transfers, but not for subsequent transfers in which they are not a party.

Do I get a t-shirt for being one of the first 2000 entries? 😀

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Offshore veteran JL Daeschler brought the historic destruction of the Ocean Prince to my attention.

At about 2 am on the day of the storm, the rig’s superstructure was torn off during a gale. By 7:10 am about a third of the drilling plattform had dissapared under 60 feet water.”

I didn’t realize that some early North Sea wells were drilled with semisubmersible rigs that were sitting on bottom, ala submersibles.

Per JL Daeschler, “the barge master on Ocean Prince was unsettled about sitting on a sandbank in the North Sea with waves as deep as the water depth, hence accelerating the scouring around the pontoon on the sea bed and distorting the forces on an unsupported hull. On a semisubmersible floating rig there is a great level of compliance between the mooring system and the forces on the leg and bracing. Worst case, you let the mooring go and drift. 

It’s noteworthy that: “During the same storm which claimed the ”Ocean Prince,” the rig’s sister ship ”Ocean Viking,” while drilling afloat, withstood winds and waves of equal force.”

The entire crew of the Ocean Prince was safely evacuated. The helicopter pilot’s last name was fitting given his bravery during the rescue!

Hero of the rescue effort was Capt. Robert Balls, 32, a former naval pilot who was alerted to remove the stranded crewmen. Within 45 minutes after he was awakened at Scarborough Hotel at 6 a.m., he was piloting a Wessex 60 helicopter across the North Sea fighting gale winds 400 feet up.”

“Captain Balls flew the copter with a minimum load of fuel in order to carry more than a full passenger load to the oil rig ”Constellation,” which was drilling about 20 miles south of the ”Ocean Prince.” On the first lift he transported 19 men. Usually, the capacity of the Wessex 60 is 16. On the second trip he took 18 crewmen. The final trip, he flew eight men directly to Scarborough.”

Before the storm:

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My former colleague Jim Lane, who shared the original Not My Job Award photo many years ago, has forwarded impressive evidence (below) that the NMJA work ethic is still proudly on display. 😉

Jim commented that the freshly painted raccoon is a more modern and universal NMJA symbol than the old armadillo.

Either image, properly presented, is appropriate recognition for proud Not-My-Jobbers in your organization or industry. 😉

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Per our previous post, “Ominous signs for the future of Gulf of Mexico production,” Lars Herbst has plotted (below) deepwater GoM field discoveries dating back to the early days of deepwater drilling operations.

These are official USGS, MMS, and BOEM data (depending on the era) for field discoveries in >1000′ of water. Note that the last discovery was in March 2021.

This is a discouraging graphic given that the deepwater GoM is currently the only option for significant new US offshore production.

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For those interested in offshore history:

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Record low exploratory drilling: 2023 will be the third consecutive year with fewer than 50 deepwater exploratory well starts. The only other year this century with <50 deepwater exploratory well starts was 2010 when there was a post-Macondo drilling moratorium.

Low participation: Only 8 companies have started deepwater exploratory wells in 2023 YTD. Anadarko, Chevron, and Shell drilled 78% of the wells, with Shell alone accounting for 48%. Compare these numbers with 2001, when 24 companies drilled 149 deepwater exploratory wells.

Absence of new field discoveries: Per BOEM’s database, no deepwater fields have been discovered since March 2021 and there were only 3 discoveries in the past 5 years (see chart below)

Leasing and regulatory uncertainty: When will the 5 year leasing plan be finalized and how much will leasing be restricted? What will be the effect of the expanded Rice’s whale area on deepwater operations? To what extent is this expansion justified? What other legal and regulatory threats are on the horizon?

Unrealistic expectations regarding the “energy transition:” In a stunning introductory statement, the Proposed 5 Year Leasing Plan expressed concerns that new leases would produce too much oil and gas for too long. OPEC+ must love the way the US sanctions its own energy production, most notably the oil and gas resources of the OCS. More than 96% of the OCS is off-limits to oil and gas leasing, and the 5 year plan proposed to constrain leasing in the only areas that remain. The favored offshore wind program was intended to be a complement to, not a replacement for, the oil and gas program. Wind energy is limited by intermittency, space preemption, navigation, and wildlife protection concerns.

Some companies have visions of the GoM as a carbon dumping hub: The largest US oil company, which hasn’t drilled a well in the GoM in nearly 4 years and operates just one production platform, seeks praise and profit by sequestering CO2 beneath the Gulf while maximizing oil production elsewhere. How will this sustain economically and strategically important GoM oil and gas production?

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1137 comments to date per Regulations.gov. This would imply one or more organized commenting campaigns.

I will share my comments on this blog after they have been submitted.

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For the first time in the history of the US OCS program, Federal ontracts have been awarded for the decommissioning of facilities in the Matagorda Island area of the Gulf of Mexico. The use of taxpayer funds for this purpose should be an embarrassment for the offshore industry and its regulators, past and present.

Rather than touting these contracts, the regulators should be explaining how this happened and how it will be prevented in the future. Fortunately, BOEM’s proposed decommissioning financial assurance rule is open for comment until the end of this month, so we have an opportunity to provide input.

Matagorda Island Gas, the company whose wells the public will be plugging, had a poor compliance record, and is another example of why compliance should be a primary factor in determining supplemental financial assurance requirements.

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