Feeds:
Posts
Comments

Archive for the ‘California’ Category

The 2023 Safety Honor Roll list will be posted tomorrow.

As background information, below is a summary of compliance data for 2022 and 2023.

The performance of Fieldwood and Cox skewed the 2022 and 2023 data. In 2022, Fieldwood was issued 448 INCs, 26% of the Gulf of Mexico total. In 2023, Cox was by far the leading violator with 718 INCs, 39% of the GoM total (780/43% when Cox affiliates are included). These data point to the importance of considering safety and compliance in approving lease assignments and making supplemental bonding determinations.

20222023
facility inspections33093100
inspection types1085610341
W INCs8091050
CSI INCs530600
FSI INCs376180
total INCs17151830
INCs/facility inspection0.520.59
INCs/inspection type0.160.18
Pacific facility inspections280300
Pacific inspection types802744
Pacific W INCs2211
Pacific CSI INCs1314
Pacific FSI10
Pacific total INCs3625
Pacific INCs/facility inspection0.130.08
Pacific INCS/inspection type0.040.03
Alaska facility inspections85
Alaska inspection types3722
Alaska W INCs01
Alaska CSI INCs01
Alaska FSI INCs00
Alaska INCs total02
Alaska INCs/facility inspection00.4
Alaska INCS/inspection type00.09
INC=incident of noncompliance, W=warning, CSI=component shut-in, FSI=facility shut-in.
No Alaska facilities are located on the Federal OCS. One Alaska facility, Hilcorp’s Northstar island, has wells that are completed on the OCS; hence the limited BSEE inspections.

Read Full Post »

On January 28, 1969, well A-21, the 5th well to be drilled from Union Oil Company’s “A” platform began flowing uncontrollably through fractures into the Santa Barbara Channel.

The absence of any well casing to protect the permeable, fractured cap rock meant that the operator couldn’t safely shut-in a sudden influx of hydrocarbons into the well bore (i.e. a “kick”). Shutting-in the well at the surface would create well bore fractures through which oil and gas could migrate to shallow strata and the sea floor. The probability of an oil blowout was thus essentially the same as the probability of a kick (>10-2). Compare this with the historical US offshore oil blowout probability (<10-4) and the probability of <10-5 for wells with optimal barrier management.

Here, in brief, is the well A-21 story:

  • Well drilled to total depth of 3203′ below the ocean floor (BOF).
  • 13 3/8″ casing had been set at 238′ BOF. The well was unprotected from the base of this casing string to total depth.
  • Evidence of natural seeps near the site suggested the presence of fracture channels
  • The well was drilled through permeable cap rock and a small high pressured gas reservoir before penetrating the target oil sands.
  • When the well reached total depth, the crew started pulling drill pipe out of hole to in preparation for well logging.
  • The first 5 stands of drill pipe pulled tight; the next 3 pulled free suggesting the swabbing of fluids into the well bore..
  • The well started flowing through the drill pipe. The crew attempted to stab an inside preventer into the drill pipe, but the well was blowing too hard. The crew then attempted unsuccessfully to stab the kelly into the drill pipe and halt the flow.
  • The crew dropped the drill pipe into the well bore and closed the blind ram to shut-in the well.
  • Boils of gas began to appear on the water surface. Oil flowed to the surface through numerous fracture channels. The above sketch by former colleague Jerry Daniels (RIP) depicts the fracturing, which greatly complicated mitigation of the flow.

Here is the link to an excellent US Geological Survey report from 1969 that describes the geologic setting, well activities, and remedial measures after the blowout.

We need to continue studying these historically important incidents, not just the technical details but also the human and organizational factors that allowed such safety and environmental disasters to occur. The idea is not to shame, but to remember and better understand.

Read Full Post »

Hywind Scotland, Equinor

It’s prudent, if not imperative, to tow floating wind turbines to sheltered coastal locations for major maintenance. For that reason, Hywind, the world’s first floating wind farm will be offline for up to 4 months this summer.

Hywind Scotland‘s operator, Norwegian power giant Equinor, says that operational data has indicated that its wind turbines need work. The pilot project has been in operation since 2017.

The five Siemens Gamesa turbines will be towed to Norway this summer. An Equinor spokesperson said, “This is the first such operation for a floating farm, and the safest method to do this is to tow the turbines to shore and execute the operations in sheltered conditions.”

electrek

Published data indicate that Hywind has been the UK’s best performing offshore wind farm. Performance data for Hywind, and a chart illustrating the capacity factors since commissioning, are posted below. The 2024 capacity factor will, of course, be substantially reduced as a result of the essential offsite maintenance.

rolling 12 month capacity factor
ending 5/2022
life capacity
factor
age
(years)
installed
capacity
(MWp)
total elec
generated
(GWh)
power/
unit area spanned
(W/m2)
Hywind Scotland49.5%52.6%4.6306421.0
capacity factor = total energy generated/(hours since commissioning x capacity)

The first US floating turbines are expected to be at these California offshore leases, and Hywind operator Equinor is one of the lessees:

Given the financial challenges facing the offshore wind industry, the still emerging technology, and the risks inherent in California offshore development, the amounts bid on these leases only 13 months ago are stunning.

Some Central Coast residents are not enamoured with “another attempt to industrialize the coast.” Although the turbines will be >20 miles offshore, they will have to be towed to shore for major maintenance. For the Central California leases, nearby harbor areas like Morro Bay (pictured below) would be overwhelmed by the large structures and the maintenance and repair operations. Towing the towers to LA/Long Beach, albeit rather distant from the leases, would seem to be the preferred option for such work.

Ironically, a report for BOEM, points to synergies between the offshore wind industry and oil and gas decommissioning industry. Such synergies will only be possible if longstanding oil and gas decommissioning obstacles are satisfactorily addressed and the offshore wind projects proceed as planned.

Which will come first – platform decommissioning or wind turbine commissioning? For those young enough to find out, what is the over-under for the years until (1) half of those platforms are decommissioned, and (2) half of the wind turbines commissioned? Any number <10 is unrealistic for either.

Morro Bay Harbor

Read Full Post »

Giant Plumose Anemones standing on mussels 75 feet down Platform Hilda (Decommissioned) (photo courtesy of BobEvansPhotography.com), Montecito Journal

Montecito Journal: Oil Platforms’ Removal?:Reefing the Superior Environmental Option

On December 7, 2023, the Bureau of Safety and Environmental Enforcement (BSEE) issued a Record of Decision (ROD) recommending the full removal of California’s 23 offshore oil platforms in federal waters, following a Programmatic Environmental Impact Statement (PEIS) conducted to assess decommissioning options for platforms, pipelines, and other related infrastructure. However, upon close review, the PEIS and ROD appear to have reached misguided and detrimental conclusions due to critical oversights in their analyses.

Asher Radziner, Montecito Journal

The author aptly summarizes the flaws in the PEIS and the BSEE decision document. Very good analysis.

Read Full Post »

Exxon has joined Chevron in announcing Q4 write downs associated with California operations. In Exxon’s case, the estimated $2.4 billion to $2.6 billion impairment is the result of their troubled Santa Ynez unit facilities in the Santa Barbara Channel where the unit’s 500+ million barrels of reserves are unlikely to ever be produced.

The Santa Ynez saga is really quite remarkable. More here and here.

Read Full Post »

On January 2, 2024, Chevron Corporation announced that for fourth quarter 2023, the Company will be impairing a portion of its U.S. upstream assets, primarily in California, due to continuing regulatory challenges in the state that have resulted in lower anticipated future investment levels in its business plans. The Company expects to continue operating the impacted assets for many years to come. In addition, the Company will be recognizing a loss related to abandonment and decommissioning obligations from previously sold oil and gas production assets in the U.S. Gulf of Mexico, as companies that purchased these assets have filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and we believe it is now probable and estimable that a portion of these obligations will revert to the Company. We expect to undertake the decommissioning activities on these assets over the next decade.

SEC filing

On Monday, we will be posting comments on the proposed bankruptcy sale of Cox’s GoM assets and the related safety and decommissioning concerns.

Read Full Post »

A mile offshore during the big year-end swell (map below). Rigs-to-Rides!

Read Full Post »

This Santa Barbara Independent article discusses the Record of Decision (ROD) for the Programmatic Environmental Impact Statement on Pacific OCS Decommissioning. A quote from the article regarding BSEE’s support for complete removal of all infrastructure follows:

“It’s great that the federal government finally has a loose game plan for getting oil companies to clean up their rusty messes,” said Miyoko Sakashita, oceans program director at the Center for Biological Diversity. 

Apparently the Center for Biological Diversity supports complete removal, the decommissioning alternative that would destroy “the most productive marine habitats per unit area in the world.” How’s that for irony?

Complete removal may be the most politically expedient alternative in California, but it is by far the most environmentally damaging and poses the greatest safety risks. Old disputes about offshore oil and gas production should not be driving decommissioning policy.

beneath Platform Gilda, Santa Barbara Channel

Read Full Post »

PNAS: “among the most productive marine fish habitats globally”
beneath Platform Gilda, Santa Barbara Channel

These platforms are habitat for millions of animals. My opinion is that it’s immoral to kill huge numbers of animals in any kind of habitat.

Dr. Milton Love, UCSB marine biologist

Inexplicably, BSEE’s Record of Decision (ROD) for the Programmatic Environmental Impact Statement on Pacific OCS Decommissioning (EIS cost: $1,604,056) endorses such habitat destruction by designating the most environmentally harmful, unsafe, punitive, and costly alternative as the “preferred alternative.”

Alternative 1 (the preferred alternative) calls for “the complete removal of platforms, topside, conductors, the platform jackets to at least 4.6 m (15 ft) below the mud line, and the complete removal of pipelines, power cables, and other subsea infrastructure (i.e., wells, obstructions, and facilities).”

Ironically, the ROD correctly acknowledges that alternative 2 (partial removal) is environmentally preferable. So what drove the decision to select the alternative that destroys “the most productive marine habitats per unit area in the world?” Was there pressure to choose the alternative that is most punitive to an industry that is despised by California activists? If so, their schadenfreude is certain to be delayed by administrative and legal challenges that draw further attention to the social costs and environmental damage associated with “complete removal.”

In 2020, BOEM estimated the total cost of decommissioning the 23 Federal offshore platforms at $1.7 billion, and today’s real costs are likely to be much higher. Also, keep in mind that some thorny decommissioning liability issues remain to be resolved, particularly with regard to Platforms Hogan and Houchin.

The decommissioning costs for Hogan and Houchin are estimated by BOEM at $85.6 million, even though the cost of completing removing Platform Holly (single platform in similar water depth in CA State waters) may reach $475 million. Per the BOEM data, there is no collateral, supplemental financial assurance, or third party guarantee that could defray the Hogan and Houchin costs. The extent to which prior lessees could be held accountable is questionable given that the lease was assigned to (now bankrupt) Signal Hill in 1991, well before the predecessor liability language was added to the MMS bonding rule. Irregularities in the management of Signal Hill’s Abandonment Escrow Account for Hogan and Houchin further complicate the liability issues.

The path for timely facility decommissioning with the least environmental damage and safety risk has two essential elements:

Absent those steps, the noise will continue, the platforms will remain in place, and the best outcome for all parties will not be achieved.

Read Full Post »

NTSB findings; no surprises.

Postaccident investigation determined that the containerships MSC Danit and Beijing had dragged anchor near the pipeline months before the oil release, on January 25, 2021.

previous posts on this incident

Read Full Post »

« Newer Posts - Older Posts »