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Archive for the ‘energy policy’ Category

Q: Is age a primary risk factor for pipelines?

Posted in accidents, California, energy policy, pipelines, tagged , , on October 18, 2021| Leave a Comment »

A: Not according to this 2012 INGAA study:

Findings of INGAA Study:

  1. 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.
  2. The properties of the steels which comprise natural gas pipelines do not change with time; that is, pipe does not “wear out.”
  3. The fitness of a pipeline for service does not necessarily expire at some point in time.
  4. 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.
  5. A well-maintained and periodically assessed pipeline can safely transport natural gas indefinitely.

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After you have read the Washington Post article linked below…..

Posted in energy, energy policy, tagged , on October 11, 2021| Leave a Comment »

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:

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“An energy crisis is gripping the world, with potentially grave consequence” – Washington Post

Posted in energy, energy policy, natural gas, Wind Energy, tagged , , on October 11, 2021| Leave a Comment »

Very good Washington Post article.

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.

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Comments on the Huntington Beach Pipeline Spill

Posted in accidents, California, energy policy, Offshore Energy - General, Regulation, tagged , , , , on October 4, 2021| Leave a Comment »

Cleanup contractors unload collected oil in plastic bags trying to stop further oil crude incursion into the Wetlands Talbert Marsh in Huntington Beach, Calif., Sunday, Oct. 3, 2021. One of the largest oil spills in recent Southern California history fouled popular beaches and killed wildlife while crews scrambled Sunday to contain the crude before it spread further into protected wetlands. (AP Photo/Ringo H.W. Chiu)
AP Photo/Ringo H.W. Chiu
  • 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.

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Circus Announcement

Posted in energy policy, Uncategorized on September 19, 2021| Leave a Comment »

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.

House Oversight Committee

Expect moral outrage, sloganeering, and finger pointing (the Washington salute). A link for viewing the hearing will be posted at the committee website.

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Say it ain’t so: NAS Jonsson Center is for sale

Posted in conferences, Georges Bank, energy policy, tagged , , , on September 15, 2021| Leave a Comment »

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.”

Makoto Saito, WHOI

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Norwegian Elections: Major shift in offshore oil policy seems unlikely

Posted in energy policy, Norway, Offshore Energy - General, tagged , , , , on September 15, 2021| Leave a Comment »

Election Results 2021: Norway Set for New Prime Minister - Life in Norway

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.

KFGO

Monday’s result means Labour neither needs the Marxist Red Party nor the anti-oil Green Party to rule, thus lessening the pressure for big shifts.

“Labour will not make any dramatic changes to the oil industry,” said Teodor Sveen-Nilsen, an energy analyst at Sparebank 1 Markets.

EuroNews

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GoM reserves tick upward after long decline

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, oil, tagged , , on September 14, 2021| 1 Comment »

BOEM just released their update of Gulf of Mexico OCS oil and gas reserves as of 12/31/2019. Oil reserves increased by 35.2% as a result of 6 new fields being added.

The reserve additions are necessary and welcome given the high depletion rates from 2002 to 2018 when reserves (plotted above) declined steeply while production rates held steady or increased. The concerns about the sustainability of current GoM production rates, as expressed in our 7/26/2021 post, remain given the historically low levels of exploratory drilling. For the reasons presented in that post, our view is that the importance of GoM production will increase, not decrease, over the next decade.

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Opting for greater dependence on a less stable Middle East?

Posted in energy policy, Offshore Energy - General, Uncategorized, tagged , , on August 19, 2021| Leave a Comment »

The Department of the Interior (Interior) confirmed today that the Department of Justice (DOJ) has appealed the preliminary injunction entered by the district court in Louisiana v. Biden, which enjoined Interior from implementing the pause in new federal oil and gas leasing …

DOI statement 8/16/21

The day after the fall of Kabul and 5 days after the White House urged OPEC to increase production, DOI reiterated the Administration’s support for a pause in oil and gas leasing on Federal lands (including the OCS). Given the increased risk of long-term oil supply uncertainty, rigid support for a blanket leasing pause would not seem to be a prudent policy position at this time.

DOI argues that greenhouse gas (GHG) emissions must be curtailed, but reductions in domestic production would increase the demand for imports with higher GHG intensity. Reductions in deepwater Gulf of Mexico production, which has low GHG intensity and other environmental advantages (few dispersed facilities distant from shore), would be particularly detrimental. Of course, any public policies that discourage natural gas production would also have distinct air emissions costs.

If supply restrictions increase the price of oil, net reductions in oil consumption and GHGs could be achieved. However, as evidenced by the recent appeal for increased OPEC production, higher oil prices are not consistent with Administration policy.

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