Leading up to #COP26 convening in Glasgow next month, the OPEC SG advised legislators and policymakers to consider the fact that billions of people lack reliable and affordable modern energy, a basic need for all.
For those interested in regional and international oil market data, OPEC’s monthly reports are quite good. You can download the October report here.
Demand for OPEC crude in 2022 was revised up by 0.1 mb/d from the previous month’s assessment to stand at 28.8 mb/d, around 1.0 mb/d higher than in 2021.
Overall Conclusion Currently, there are no regulations that require removal of subsea pipelines if they are not an obstruction to navigation. Based on the high costs for removing the pipelines, the personnel risk involved in the removal operations, the negative effect on overall emissions to air and the very limited reduction in discharges to sea, the overall conclusion is that it is better to leave the pipelines in place. If possible, re-use of the pipelines is the optimal solution.
Environmental Impacts The impacts on the environment and the marine environment from pipelines and cables left in place were found to be very minor. Conversely recovery operations will have a negative impact on the environment. The number of vessels required for removal operations and long operating hours will result in considerably more releases and emissions than leaving the pipelines in place. In addition the energy savings benefit from recycling the pipeline materials will be exceeded by the energy required to remove the pipelines and separate the materials.
The “Habitat” impacts row seems questionable. Pipeline removal certainly has a greater impact on habitat than abandonment in place, particularly for buried pipelines.
85% of pipeline incidents reported to PHMSA from 2002-2009 occurred irrespective of the age of the pipeline, with just 15% related in some way to the age of the pipeline.
The properties of the steels which comprise natural gas pipelines do not change with time; that is, pipe does not “wear out.”
The fitness of a pipeline for service does not necessarily expire at some point in time.
The integrity of those pipelines for which the fitness for service may degrade with the passage of time can be assessed periodically. Timely repairs – and other mitigation efforts – based on those assessments will ensure the pipeline’s continued fitness for service.
A well-maintained and periodically assessed pipeline can safely transport natural gas indefinitely.
Look at the US Dept. of Energy homepage and I think you’ll get a better sense of the imbalanced energy policies, in the US and elsewhere, that are contributing to the emerging energy crisis.
There isn’t a single mention of oil or natural gas on the Dept. of Energy homepage. DOE’s priorities are “Combating the Climate Crisis” (embellished with a satellite image of Hurricane Andrew), “Creating Clean Energy Union Jobs” (other energy jobs aren’t important?), and “Promoting Energy Justice.” With regard to the latter, how is driving up energy prices “energy justice?” How is importing more of the oil that we consume “energy justice.” Affordable energy has increased economic opportunities for all and enabled us to better protect our environment. In that regard, this Petr Beckmann slide holds true:
As the global economy recovers and global leaders prepare to gather for a landmark conference on climate change, the sudden energy crunch hitting the world is threatening already stressed supply chains, stirring geopolitical tensions and raising questions about whether the world is ready for the green energy revolution when it’s having trouble powering itself right now.
In the United States, which as an energy producer has been spared the worst consequences of the crisis even as gasoline prices have hit their highest mark since 2014, Energy Secretary Jennifer Granholm suggested Wednesday that the Biden administration might sell off part of the country’s Strategic Oil Reserve or ban exports of crude oil.
Energy analysts warned that such moves could be self-defeating, and on Thursday the department backpedaled.
Energy analysts argue that Europe moved too quickly away from fossil-fueled power, before ensuring that sufficient renewable sources could take up the slack in an emergency. Caught halfway in a transition that should take decades, they say, Europe is now scrambling to find coal and gas to burn in its remaining traditional plants.
In Guangdong, China’s most populous province, authorities have banned the use of elevators in office buildings for the third floor and below, encouraged residents to use natural light as much as possible, and asked for air conditioners to be adjusted to higher temperatures. Beijing and Shanghai canceled annual light shows during the Golden Week holiday that spanned the first week of October.
Large, sudden pipeline spills are usually caused by external impacts (e.g. anchor dragging). If that was not the case, the spill was presumably caused by significant, undetected corrosion.
The internal (smart pig) and external inspection history of the pipeline will be an important part of the investigation.
Another important consideration is the extent to which pressure and volumetric monitoring systems were in place and functioning. Early reports imply that the leak was not discovered until the slick was observed on the water surface.
An excellent 2008 case study details the challenges that were experienced in internally inspecting this pipeline. This presentation provides good background information on the pipeline and the initial internal inspection efforts.
Why isn’t BSEE, the Federal bureau that inspects the Beta Unit facilities and approves the spill response plan, part of the Unified Command? BSEE is also a leader in spill response research.
Per the Unified Command, 1218 gallons of oil-water mix were recovered as of Sunday. This is pretty minimal – only 29 barrels (including water) and <1% of the estimated spill volume, but is not atypical for mechanical spill response operations. It may also be that the 3000 bbl spill estimate was overly conservative (i.e. high).
Also per the Unified Command: “One oiled Ruddy duck has been collected and is receiving veterinary care. Other reports of oiled wildlife are being investigated.” If this was the extent of wildlife impacts as of Sunday, some of the reporting on this spill has been hyperbolic.
A comprehensive review of the balkanized regulatory regime for offshore pipelines is long overdue, as is an update to Federal pipeline regulations.
This spill, Hurricane Ida, and offshore COVID issues have further demonstrated the importance of BSEE. Why has the Administration still not appointed a BSEE Director? Keep in mind that this appointment does not require Senate confirmation.
The House Oversight Committee has requested that executives from Exxon, Shell, Chevron, BP, and testify on October 28th.
“We are deeply concerned that the fossil fuel industry has reaped massive profits for decades while contributing to climate change that is devastating American communities, costing taxpayers billions of dollars and ravaging the natural world,” Oversight Chairwoman Carolyn Maloney, D-N.Y., and Rep. Ro Khanna, D-Calif., wrote in a letter to oil executives.
Expect moral outrage, sloganeering, and finger pointing (the Washington salute). A link for viewing the hearing will be posted at the committee website.
I was saddened to learn that the National Academy of Sciences is selling the Jonsson Center in Woods Hole, MA. This amazing meeting and conference facility is at a great waterfront location at the epicenter of marine research on the Atlantic Coast. You can buy the estate for a mere $27.5 million and continue its use as a conference center serving the marine science and policy communities.
“I think the concern is this is a historically important location for science, from its long history with the institutions,” said Dr. Saito. “To see one of our science institutions pack up and leave is sad for the community. Also, the loss of that conference facility, which I think is a really valuable resource for not just the area but for US science, is a sad thing to see happen as well.”
While Conservative Party leader Erna Solberg will no longer be Prime Minister, her likely replacement, Labor leader Jonas Gahr Støre, seems to be a moderate on energy issues:
“I believe that calling time on our oil and gas industry is the wrong industrial policy and the wrong climate policy,” Stoere told reporters.
Bud's Offshore Energy (BOE) 