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Archive for 2023

BSEE shouldn’t have to issue guidance about helicopter loading precautions that every worker and visitor should be taught before going offshore, but apparently they do. See the safety alert that is attached below.

In this alarming near-miss event, a helicopter was stationed on the facility’s helideck and a crew member approached the aircraft from the rear, entering the rotor arc area before the rotor blades had come to a complete stop. This unsafe action posed a significant threat to the safety of all personnel involved. An offshore helideck assistant repeated the unsafe behavior by approaching the helicopter from the rear, entering the vicinity of the tail rotor, and positioning themselves within the main rotor’s danger zone immediately after the helicopter had landed on the facility’s helideck.

Meanwhile, we are still awaiting the final report on the tragic crash at the West Delta 109 A platform last December. Why is this taking so long?

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The sale could be held sooner. However, since BOEM asked for 37 days, I’m assuming that the sale will be on December 21.

In the 70 year history of the oil and gas leasing program, this will be the sale date that is closest to Christmas. Yet another major milestone for the offshore program! 😀

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Order is pasted below and attached.

IT IS ORDERED and ADJUDGED that the Intervenors’ appeal is DISMISSED. As for BOEM’s limited appeal as to the timing of the sale, we hereby AMEND the district court’s preliminary injunction only to the extent that the deadline for conducting Lease Sale 261 shall now be thirtyseven days from the date of the issuance of the mandate in this appeal.
IT IS FURTHER ORDERED that each party bear its own costs on appeal.

Background information and related posts.

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Study: Potential Hydrodynamic Impacts of Offshore Wind Energy on Nantucket Shoals Regional Ecology: An Evaluation from Wind to Whales, National Academies of Sciences, Engineering, and Medicine.

Comments:

  • Kudos to BOEM for sponsoring this important study which identifies the potential ecological effects of offshore wind farms on the endangered North Atlantic Right Whale.
  • BOEM must now consider, and presumably implement, the committee’s recommendations. This could prove to be especially challenging given BOEM’s prominent wind advocacy role.
  • All 9 of the study committee members are scientists with appropriate backgrounds and specialties (see Appendix A of the report).
  • As a rule, the NAS notes potential conflicts of interest in the biographical statements. Two possible conflicts were identified: one committee member was a “compensated member of a review panel for Ortsted’s Offshore Wind Research Plan in 2021,” and another works for a firm that “has been partially funded by offshore wind development companies.”
  • The panel recommends robust monitoring during all phases of wind development and operations in the North Atlantic region. Is that sufficient given that hundreds of turbines could be installed before the data have been acquired and analyzed?
  • The concerns raised by the NAS committee are not new. 18 months ago, NOAA’s Chief of Protected Species cited some of the same concerns in recommending a conservation buffer zone adjacent to Nantucket Shoals.

. Background graphics, excerpts, and recommendations are pasted below.

Important excerpts:

  • p.2: A single offshore wind turbine can alter local hydrodynamics by interrupting circulation processes through a wake effect and induce turbulence in the water column surrounding and downstream of the turbine supporting structure, the pile. Moving away from single turbine effects and looking at arrays of turbines in a wind farm or at multiple adjacent offshore wind farms, these effects become more complex with implications for both local and regional circulation.
  • p.4: At the wind farm scale, the potential impacts include reductions in ocean current speeds, stratification, ocean surface wind speed, and deflection of the pycnocline. At the regional scale, perturbations due to offshore wind turbines are difficult to quantify because of the natural processes that drive significant environmental variability across the region.
  • p.6: Recommendation: The Bureau of Ocean Energy Management, National Oceanic Atmospheric Administration, and others should support, and where possible require, the collection of oceanographic and ecological observations through robust integrated monitoring programs within the Nantucket Shoals region and in the region surrounding wind energy areas before and during all phases of wind energy development: surveying, construction, operation, and decommissioning. This is especially important as right whale use of the Nantucket Shoals region continues to evolve due to oceanographic changes and/or the activities and conditions relevant to offshore wind farms.
  • p.7: Recommendation: The Bureau of Ocean Energy Management, National Oceanic Atmospheric Administration, and others should support, and where possible require, oceanographic and ecological modeling of the Nantucket Shoals region before and during all phases of wind energy development: surveying, construction, operation, and decommissioning. This critical information will help guide regional policies that protect right whales and improve predictions of ecological impacts from wind development at other lease sites.

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No, because it provides no evidence in support of either of the two prominent Nord Stream sabotage theories: (1) the Seymour Hersh account and (2) the rental yacht narrative.

When the findings from important investigations are delayed, information leaks serve to control the narrative and satisfy political or economic objectives. Why are these intelligence organizations so eager to assign blame within the Ukrainian government? Why are the actual findings of the investigations not being released? Perhaps the WP and Spiegel reporters can answer those questions.

Former secret service agent Roman Chervinskyi in court in Kyiv in April; photo: Nikita Galka

According to the joint research by DER SPIEGEL and The Washington Post, Chervinskyi’s name is circulating both in Ukrainian and international security circles in connection with the attack on the Nord Stream pipelines. The former agent allegedly coordinated the attack and also provided support for the specialist unit behind the sabotage operation.

Cautionary note:

People in Western security circles say that the Ukrainian security apparatus is plagued with rivalries and infighting, and that information obtained from sources there must be handled with caution.

both quotes from Der Spiegel

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Today, the 5th Circuit Court of Appeals heard oral arguments in the appeal of the District Court’s injunction against the Rice’s whale tract deletions and operating stipulations for Sale 261.

If you want to listen to a recording of these arguments, you can do so at this link. The hearing was brief – only about 45 minutes.

Judging by the comments, it sounds like the Court will reach a decision soon. The Department of the Interior is asking for 37 days after the ruling to organize and hold the sales. The industry attorney seemed comfortable with that, so the sale should be prior to Christmas.

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Walton-Morant license

For the past 2 years, BOE has been following the news releases on the Walton-Morant license offshore Jamaica. While the updates from United Oil and Gas are consistently upbeat, a repeating theme has been the need for more time to secure a partner and prepare for exploratory drilling.

Per the most recent update (below), United announces that they have identified a “preferred potential partner” and are seeking an extension on their license. So far, we have only heard from United. As the expiration date of the license approaches, an update from the Jamaican government’s perspective would seem to be appropriate.

The Company is currently engaged in discussions with a preferred potential partner that has been identified through the farmout process, to participate alongside United in the Walton Morant Licence in Jamaica. Furthermore, the Company is engaging with the Jamaican authorities to secure an extension to the current licence period which expires at the end of January 2024, so as to provide sufficient time to progress additional technical work on the block to support the drilling of an exploration well. Additional updates on both the farmout process and licence extension will be provided in due course.

We are encouraged by the continued progress in relation to the farmout process in Jamaica, as we look to unlock the material value contained in this block and deliver value to our stakeholders, including the people of Jamaica. We are entering a critical stage in the farm-out process and will provide an update to the market as this progresses.

United Chief Executive Officer, Brian Larkin

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converted semi-submersible initiates production at the Argyll field

JL Daeschler, a pioneering subsea engineer who lives in Scotland, has fond memories of his interactions with Fred and Ferris Hamilton, the brothers whose company was the first to produce oil in the UK sector of the North Sea (1975). Their small company aced the super-majors by initiating production at the Argyll Field with subsea wells and the Transworld 58, a converted semi-submersible drilling rig. Their rig conversion was an early predecessor to the modern floating production units that have become the surface facilities of choice for deepwater development.

JL recalls that Ferris and Fred took time to discuss any problem with any employee. Should there be arguments, they were often followed by more relaxed discussions about sailing, cars, cooking, and other topics of mutual interest. The brothers would travel from Denver for the annual Christmas dinner in Aberdeen, and invited everyone from the warehouse crew to the production manager. There was a great sense of community among the employees and contractors.

As JL notes, there were no satellite positioning systems, and real time communications with the rig were short and limited to the normal marine radio channels. This was a remarkable era of achievement for the North Sea and the offshore industry, as operations expanded and technology advanced to support them. I have much respect for these offshore pioneers and their contributions to societies around the world.

Related articles:

British Secretary of State for Energy Tony Benn, center, with Frederic Hamilton and Captain Harry Koutsoukos opening a valve to release the first oil from the North Sea into the BP refinery on the Isle of Grain in 1975.

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The first class of Petroleum Engineering graduates from the University of Guyana (UG photo posted by OilNow)

For more information about the UG Petroleum Engineering program.

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Each annual licensing round will only take place if key tests are met that support the transition to net zero. The first test is that the UK must be projected to import more oil and gas from other countries than it produces at home

The second is that the carbon emissions associated with the production of UK gas are lower than the equivalent emissions from imported liquefied natural gas

If both these tests are met, the NSTA will be required to invite applications for new licences annually.

GOV.UK

The “key tests” would seem to ensure annual licensing rounds for the foreseeable future. The charts below are from UK EiTi. The first chart illustrates the sharp decline in UK production over the past 20 years. The second and third charts illustrate the large projected gaps between supply and demand, particularly for natural gas.

In 2050, total production of oil and gas is estimated at ~10 million tonnes of oil equivalent. The projected 2050 demand is estimated at ~35 tonnes. For domestic production to exceed imports over the next 20-30 years, resource licensing and field development would have to be very successful and efficient.

Projections of UK Gas Demand and Production
Projections of UK Gas Demand and Production

With regard to the second test, carbon emissions from the production of UK gas should maintain their advantage over imported LNG given the energy required to liquefy and transport that gas.

It would have perhaps been more transparent to simply stipulate annual licensing rounds, but that would probably not have been politically acceptable.

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