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Archive for the ‘drilling’ Category

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Wind and solar energy are likely to continue growing in importance over the next several decades, but massive space requirements and intermittency may prevent these energy sources from ever being dominant. On the other hand, geothermal power could prove to be the ultimate energy solution if we can effectively drill deep beneath the surface and tap into superheated rock.

Quaise Energy, headed by ex-Schlumberger/MIT engineer Carlos Araque, is developing a radical new approach to ultra-deep drilling. Quaise will use conventional rotary drilling technology to reach basement formations before switching to high-power millimeter waves that vaporize boreholes through rock and provide access to deep geothermal heat. Quaise’s timeline calls for operation of their first full-scale hybrid drilling rig in 2024 and their first super-hot geothermal system in 2028. Those interested in energy solutions should follow their progress.

Here is Quaise’s promotional video:

Good New Atlas article

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Nice bounce in Texas where 320 rigs are now active, up 12 from last week and up 117 from a year ago. Rig activity in New Mexico, where (unlike Texas) most of the Permian is on Federal land, has been less robust. The number of rigs operating in NM actually dropped by 1 to 98.

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This useful SafeOCS report summarizes and itemizes well control equipment failures associated with well operations on the Gulf of Mexico OCS in 2020. Of particular note was the absence of any loss of containment (leak of wellbore fluids) events in 2020 or the prior two years.

Unfortunately, there appear to be significant reporting gaps despite the fact that reporting of these data is required by regulation (30 CFR 250.730(c)). The reporting issues are particularly serious for surface systems (surface BOP and associated equipment). Per SafeOCS, surface rig reports were received from less than 50% of active operators and rigs. Reporting for subsea systems (subsea BOP and associated equipment) was much better with 85% of the active rigs represented.

Of further concern with regard to the reporting of surface equipment events, the data indicate only 5.3 events per 1000 hours for surface systems vs. 71.5 for subsea systems. While subsea systems are more complex, the cost of pulling and repairing subsea equipment dictates newer, better maintained equipment. As a result, surface BOPs have historically had higher failure rates than subsea BOPs. The data below are from a presentation to MMS approximately 15 years ago. Both the Sintef and OOC data show higher failure rates for surface BOPs.

The SafeOCS team did a very good job of analyzing the reports and presenting the data. However, the reporting issues need to be investigated and resolved to get maximum value from this very important work.

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The rig count remains low at 12 (see the updated chart below). Per BSEE’s borehole file, only 3 deepwater exploratory wells have been spudded in 2022 YTD (2/21) – one each for Shell, Hess, and Anadarko.

What’s going on? Better opportunities elsewhere? Uncertainty about lease sales? Concerns about legal challenges and the future of the US offshore program?

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Sen. Joe Manchin III (D-W.Va.), a critical swing vote, has rejected a provision (in the “Build Back Better Bill”) that would prohibit all future drilling off the Atlantic and Pacific Coasts, as well as the eastern Gulf of Mexico, according to three people familiar with the matter

Washington Post

New oil and gas leasing is unlikely in these areas, but broad permanent bans are never a good idea.

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United Oil & Gas is looking for partners to drill the promising Colibri prospect offshore Jamaica. United’s exploration license has been extended after the completion of Jamaica’s first 3-D seismic survey. The results were encouraging as indicated in the video below. High risk, high reward opportunity!

Walton Morant - UOG
United Oil and Gas Video

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  • Chart 1: Gulf of Mexico rig count remains low
  • Chart 2: Exploratory drilling continues to decline and may be insufficient to replace reserves
  • Chart 3: Well starts and number of operators drilling remain at historic low levels
  • Chart 4: (1) One company (Shell) accounted for 39% of the 2021 YTD deepwater well starts in the GoM. (2) Five companies (Shell, Oxy/Anadarko, Chevron, Murphy, and BP) accounted for 80% of the deepwater well starts.

More certainty regarding lease sales would help. Prospective participants need assurances that they will have opportunities to apply findings and test exploration and development strategies. Will Lease Sale 257 be held on schedule next week?

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