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Archive for the ‘energy policy’ Category

Veteran marine science advocate Jerry Schubel, former president of Long Beach’s Aquarium of the Pacific, is among those pushing for offshore oil platforms to be transformed for new ocean uses. He points out that the underwater portion of the structures already are a boon to marine life.

“They have enormous value as ecosystems because of the life that has grown on and around them,” he said.

He points out that other states have rigs-to-reefs programs — and California does as well, though it needs funding before it can function. Once the ball gets rolling, oil companies could be tapped to cover costs with fees drawn from the money they would save by not having to haul dismantled rigs ashore. Schubel estimated that turning platforms into reefs could cut decommissioning costs in half.

But Schubel says artificial reefs should be just the beginning. How about fish farms? Research labs? Windmills? Hotels for divers?

“The uses,” he said, “are limited only by our imagination.”

Orange County Register

Well said Dr. Schubel! For a full list of alternative uses for offshore platforms see the official Rigs-to-Reefs+++ page.

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Oil prices went negative a year ago: Here's what traders have learned since  - MarketWatch
MarketWatch
Monthly Oil Production
Forbes

U.S. oil production plummeted and is unlikely to recover to pre-pandemic levels. The Gulf of Mexico will not be picking up the slack. GoM production peaked in August 2019 at 2.044 million BOPD. Absent increased exploration, that peak will never be exceeded.

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More than 400 private jets carrying world leaders and business executives to Cop26 will blast 13,000 tonnes of CO2 into the atmosphere.

Matt Finch, of the Transport and Environment campaign group, said: “The average private jet, and we are not talking Air Force One, emits two tons of CO2 for every hour in flight.

It can’t be stressed enough how bad private jets are for the environment, it is the worst way to travel by miles.Our research has found that most journeys could easily be completed on scheduled flights.

“Private jets are very prestigious but it is difficult to avoid the hypocrisy of using one while claiming to be fighting climate change.

Daily Record UK

For the record, BOE does not own a private jet. Our Air Force 1 is pictured below 😃

Nike Air Force 1 Low OFF-WHITE University Gold Metallic Silver - DD1876-700

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But certainly, the supply and — and OPEC and putting additional pressure on OPEC is something that — that, certainly, our national security team will continue to do. 

Jen Psaki, Press Secretary

Equally predictable:

I will also note that, as it relates to gas prices, we remain concerned about trends we have seen where, even as supply has increased at times over the last several months, we’ve still seen heightened prices.

The FTC — we’ve asked the FTC to look into that.  They’ve said they were doing that.

Jen Psaki, Press Secretary

Related post.

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Printed Metal Table Tops - Don't Mess With Texas

UN Secretary General Guterres to Texas:  “Texas must end its reliance on oil and gas production to remain prosperous in the era of climate change.

Gov. Abbott responds:

Texas to United Nations: Pound Sand

The world is reeling from spiraling fuel costs caused by premature over-reliance on renewable energy.

High fuel costs punish middle class families & stoke the supply chain crisis.

Texas oil & gas is needed right now.

Greg Abbott tweet

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Greenpeace climate activists stage a protest at a Shell refinery in Rotterdam, Netherlands
EuroNewa.green

Oil firms have been banned from taking an active role in the upcoming COP26 summit.

The news is a seismic victory for climate activists.

It stops Big Oil companies from sponsoring the conference and steering the narrative away from their culpability in the climate crisis.

Euronews.green

Comments:

  • This decision is more about exercising political power than advancing our energy future, which is dependent on collaboration among all sectors of the energy industry.
  • Oil and gas producers are “banned,” but major energy consumers are welcome to support the conference.
  • The 3 oil companies mentioned in the article are major investors in offshore wind and other renewable energy projects. These companies have spent hundreds of millions of dollars to purchase US offshore wind leases and will spend much more on the projects that follow. They are also major investors in low carbon intensity offshore oil and gas production.
  • Does the US government, which (at taxpayers expense) is sending a very large delegation to COP26, support this type of discriminatory behavior toward major contributors to our economy?
  • While the delegates are attending the conference, the folks at home are seething about gasoline prices and inflation.

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With regard to air emissions, the advantages of deepwater Gulf of Mexico production are rather obvious:

  • High production rates per well
  • Few surface facilities (57 deepwater platforms, 3% of GoM total, produce 90+% of oil)
  • Modern gas turbines for power generation
  • Tightly enforced restrictions on flaring and venting
  • Better control of fugitive emissions
  • Distant from shore (not a factor for GHG effects)

Wood Mackenzie, NOIA, and others contend that restrictions on GoM leasing are contrary to carbon reduction goals.

An important and unintended consequence of enacting more restrictive policies such as a lease ban or increase in royalty rate in the Gulf of Mexico is that it could give rise to carbon leakage to countries that export crude to US.

Wood Mackenzie
Chart: Emissions intensity for US crude importers. US Gulf of Mexico deepwater emissions are less intensive than all but one importer.

In light of the policy implications of GHG emissions, a Carbon Intensity Workshop is highly recommended. The estimates generated by Wood Mackenzie, Rystad, and others need to be explored in depth. Is data quality an issue? How are the data verified? Is there regulator or third party oversight? What are the assumptions behind the estimates? Also, for the purposes of US policy decisions, product transportation emissions should certainly be included. A barrel produced in the Middle East is not the same as a barrel produced in the GoM.

Looking at the chart above, I have immediate questions about the drilling emissions (blue). What wells are included? What about workovers and other well operations? I’m surprised that the deepwater GoM drilling emissions are so high relative to the other regions. While dynamically positioned MODUs have high fuel consumption rates, deepwater wells are few in number relative to shale drilling. Also, why are Brazil’s drilling emissions, which I assume are primarily associated with deepwater operations, so much lower that those for the GoM.

BOEM/BSEE and/or the Gulf Research Program (NASEM) would seem to be good sponsors for such a workshop.

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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.

OPEC

Reminder that “no energy is dirtier than no energy.

For those interested in regional and international oil market data, OPEC’s monthly reports are quite good. You can download the October report here.

Image

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.

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Scandpower study (2004) for MMS:

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.

Pipeline Decommissioning: Environmental Impact Metric (per Scandpower)

Remove/
recycle
Remove/
landfill
Reuse or
preserve
Bury Abandon
in place
EnergyHighHighLowModerateNone
EmissionsHighHighLowLowLow
DischargesLowLowModerateLowLow
HabitatLowLowModerateLowLow
AestheticsLowModerateNoneNoneNone
Resource
Utilization
HighNoneHighNoneNone
LitteringLowLowLowLowModerate

The “Habitat” impacts row seems questionable. Pipeline removal certainly has a greater impact on habitat than abandonment in place, particularly for buried pipelines.

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