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Archive for the ‘Gulf of Mexico’ Category

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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9/15: GoM shut-in production chart updated; 30% of oil production remains shut-in; WTI closes at $72.66/bbl

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , , on September 13, 2021| Leave a Comment »

BSEE data

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About 80% of GoM oil production is still shut-in

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , on September 7, 2021| Leave a Comment »

As expected given the magnitude and track of Ida, the necessary inspections, and the onshore damage, most GoM production remains shut-in. (BSEE data)

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Globetrotter II Statements

Posted in accidents, Gulf of Mexico, hurricanes, tagged , , , on September 7, 2021| Leave a Comment »

Noble’s Aug. 29 statementNoble’s Sept. 2 statement
“Each rig successfully secured its respective well in progress and took evasive actions to avoid the storm’s path.” (No mention of the delay in relocating the Globetrotter II or the rig, riser, and LMRP damage already reported on social media.)“several riser joints and the lower marine riser package separated from the rig during the storm and sank to the seabed.” (Confirms social media reports.)
“All personnel are safe and accounted for.” (No mention of the injuries alluded to in social media reports.)“A small number of crew members were treated for minor injuries.” (The actual number was 9, i.e. not a small number, 4 of whom had to be transported to shore for further evaluation.)
“One of the ship’s cofferdams in the moonpool area sustained damage.” (Update: The storm broke part of the hull, which allowed water into some compartments. Per the ship’s master, the vessel was not in distress and not actively taking on water.)

In a proper safety culture, you don’t downplay serious incidents and you never declare victory. Spin control is for politicians, not safety leaders. The Globetrotter II, with 140 workers aboard, was slammed by a major hurricane, perhaps unnecessarily. After the frightening social media reports, Noble released an “all is well” statement that minimized the significance and potential consequences of the delayed rig relocation. Noble continued to downplay the incident when they update their statement 5 days later.

The Coast Guard and BSEE will be investigating the Globetrotter II relocation, and their findings will be of great interest. Noble has historically been a very good drilling contractor with a strong commitment to safe operations. Hopefully, they and others will learn and apply lessons from this and similar events that have occurred in the Gulf and elsewhere. Companies may also want to assess the compatibility of their messaging practices with their commitment to a robust safety culture and continuous improvement.

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Bay Marchand Pipeline Leak

Posted in accidents, Gulf of Mexico, Offshore Energy - General, oil, tagged , , , on September 6, 2021| Leave a Comment »

Divers identify broken pipeline as source of Gulf oil spill
satellite image provided by Maxar Techologies shows Port Fourchon and slicks on 9/2/2021
  • 12″ pipeline displaced by Ida
  • Approximately 2 miles south of Port Fourchon which took a direct hit from Ida. (Appears that the pipeline is in Louisiana State waters).
  • Water depth = 34′
  • Talos funding spill response, although the company said it was not their pipeline
  • Leak has slowed significantly; apparently production is not entering the line and the spill is limited to pipeline inventory
  • This type of incident is not surprising given the magnitude and track of Ida and the pipeline infrastructure that was exposed to major hurricane conditions

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Small reduction in shut-in volumes

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , , on September 3, 2021| Leave a Comment »

1,698,557 BOPD per BSEE. Updated recovery chart:

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Shell reports damage to WD 143 Hub

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , , , , , on September 3, 2021| Leave a Comment »

Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, conducted an initial flyover of our assets in the path of Hurricane Ida. During this initial flight, we observed damage to our West Delta-143 (WD-143) offshore facilities. When it is safe to do so, we will send personnel offshore to provide a closer inspection of these facilities to understand the full extent of the damage and the degree to which our production in the Gulf of Mexico will likely be impacted.

Shell news release

This is a very significant report given the importance of the WD 143 platform in transferring all production from Shell facilities in the “Mars corridor.” These facilities include the Mars, Olympus, and Ursa platforms.

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Shut-in Volumes Increase

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , , on September 2, 2021| Leave a Comment »

In a bit of a surprise, the volume of shut-in GoM oil production rebounded to more than 1.7 million BOPD (see BSEE’s 9/2 update). Because several deepwater platforms had reportedly resumed production, the sharp increase in shut-in volumes could have something to do with downstream facility damage or bottlenecks. The daily Ida shut-in volumes are plotted below.

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About 20% of GoM oil production has been restored. EIA reports June production.

Posted in Gulf of Mexico, hurricanes, Offshore Energy - General, oil, tagged , , on September 1, 2021| Leave a Comment »

Presumably, most of the restored GoM production is from platforms like Exxon Hoover that were not subjected to hurricane conditions. Per BSEE, the total oil production shut-in as of 9/1 is 1,455,279.

The latest EIA production report for June 2021 has just been released and GoM oil production averaged 1.825 million BOPD.

from EIA data

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Record of Decision for Gulf of Mexico Lease Sale 257 is a Positive Step

Posted in gas, Gulf of Mexico, Offshore Energy - General, oil, Regulation, tagged , , , , on September 1, 2021| Leave a Comment »

In light of the ongoing litigation regarding the Department of the Interior’s “leasing pause,” DOI’s Record of Decision for Sale 257 is most encouraging. The viewpoints expressed in the two quotes below are fundamental to the future of the OCS Oil and Gas Program. Hopefully, all parties can put aside their differences and build upon these consensus views.

While offshore exploration and development cannot be made risk free, OCS oil- and gas-related activities can be conducted safely and responsibly with strong regulatory oversight and appropriate measures to protect human safety and the environment.

ROD, p. 5

The decision to hold Lease Sale 257 recognizes the role that GOM oil and gas resources play in addressing the Nation’s demand for domestic energy sources and fosters economic benefits, including employment, labor income, and tax revenues, which are highest in Gulf Coast States and also distributed widely across the United States. Revenues from offshore oil and gas lease sales support national conservation programs and coastal resiliency for applicable coastal states and political subdivisions under the Gulf of Mexico Energy Security Act of 2006.

ROD, p. 7

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